0000088053-14-000453.txt : 20140430
0000088053-14-000453.hdr.sgml : 20140430
20140430161917
ACCESSION NUMBER: 0000088053-14-000453
CONFORMED SUBMISSION TYPE: 485BPOS
PUBLIC DOCUMENT COUNT: 6
FILED AS OF DATE: 20140430
DATE AS OF CHANGE: 20140430
EFFECTIVENESS DATE: 20140501
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: DWS INTERNATIONAL FUND, INC.
CENTRAL INDEX KEY: 0000088053
IRS NUMBER: 132827803
FISCAL YEAR END: 0331
FILING VALUES:
FORM TYPE: 485BPOS
SEC ACT: 1933 Act
SEC FILE NUMBER: 002-14400
FILM NUMBER: 14799021
BUSINESS ADDRESS:
STREET 1: 345 PARK AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10154-0004
BUSINESS PHONE: 212-454-6778
MAIL ADDRESS:
STREET 1: 345 PARK AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10154-0004
FORMER COMPANY:
FORMER CONFORMED NAME: SCUDDER INTERNATIONAL FUND INC
DATE OF NAME CHANGE: 19920703
FORMER COMPANY:
FORMER CONFORMED NAME: SCUDDER INTERNATIONAL INVESTMENTS LTD
DATE OF NAME CHANGE: 19761203
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: DWS INTERNATIONAL FUND, INC.
CENTRAL INDEX KEY: 0000088053
IRS NUMBER: 132827803
FISCAL YEAR END: 0331
FILING VALUES:
FORM TYPE: 485BPOS
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-00642
FILM NUMBER: 14799022
BUSINESS ADDRESS:
STREET 1: 345 PARK AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10154-0004
BUSINESS PHONE: 212-454-6778
MAIL ADDRESS:
STREET 1: 345 PARK AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10154-0004
FORMER COMPANY:
FORMER CONFORMED NAME: SCUDDER INTERNATIONAL FUND INC
DATE OF NAME CHANGE: 19920703
FORMER COMPANY:
FORMER CONFORMED NAME: SCUDDER INTERNATIONAL INVESTMENTS LTD
DATE OF NAME CHANGE: 19761203
0000088053
S000006028
DWS Emerging Markets Equity Fund
C000016557
Class A
SEKAX
C000016559
Class B
SEKBX
C000016560
Class C
SEKCX
C000016561
Class S
SEMGX
C000063926
Institutional Class
SEKIX
485BPOS
1
nb050114int.txt
485B FILING - DWS INTERNATIONAL FUND, INC.
Filed electronically with the Securities and Exchange Commission on
April 30, 2014
File No. 002-14400
File No. 811-00642
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 | X |
Pre-Effective Amendment No. |__|
Post-Effective Amendment No. 141 | X |
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 | X |
Amendment No. 121
DWS International Fund, Inc.
(Exact Name of Registrant as Specified in Charter)
345 Park Avenue, New York, NY 10154
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (617) 295-1000
John Millette
Vice President and Secretary
One Beacon Street
Boston, MA 02108
(Name and Address of Agent for Service)
Copy to:
Thomas Hiller, Esq.
Ropes & Gray
Prudential Tower, 800 Boylston Street
Boston, MA 02199-3600
It is proposed that this filing will become effective (check appropriate box):
|__| Immediately upon filing pursuant to paragraph (b)
| X | On May 1, 2014 pursuant to paragraph (b)
|__| 60 days after filing pursuant to paragraph (a)(1)
|__| On ______________pursuant to paragraph (a)(1)
|__| 75 days after filing pursuant to paragraph (a)(2)
|__| On ______________ pursuant to paragraph (a)(2) of Rule 485
If appropriate, check the following box:
|__| This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
1
EXPLANATORY NOTE
----------------
This post-effective amendment updates the prospectus and statement of
additional information of, and relates solely to, the following series of the
registrant:
o DWS Emerging Markets Equity Fund -- Class A, Class B, Class C,
Institutional Class and Class S
This post-effective amendment is not intended to update or amend any other
prospectuses or statements of additional information of the registrant's other
series or classes.
2
Deutsche Asset
& Wealth Management
Prospectus
DWS Emerging Markets Equity Fund - May 1, 2014
CLASS/TICKER A SEKAX B SEKBX C SEKCX INST SEKIX S SEMGX
...............................................................................
DWS Enhanced Emerging Markets Fixed Income Fund - February 1, 2014, as revised
May 1, 2014
CLASS/TICKER A SZEAX B SZEBX C SZECX INST SZEIX S SCEMX
...............................................................................
DWS Enhanced Global Bond Fund - February 1, 2014, as revised May 1, 2014
CLASS/TICKER A SZGAX B SZGBX C SZGCX S SSTGX
...............................................................................
DWS Global Equity Fund (formerly DWS Diversified International Equity Fund) - February 1, 2014, as revised
May 1 2014
CLASS/TICKER A DBISX B DBIBX C DBICX R DBITX INST MGINX S DBIVX
...............................................................................
DWS Global Small Cap Fund (formerly DWS Global Small Cap Growth Fund) - February 1, 2014, as
revised May 1, 2014
CLASS/TICKER A KGDAX B KGDBX C KGDCX INST KGDIX S SGSCX
...............................................................................
DWS Latin America Equity Fund - February 1, 2014, as revised May 1, 2014
CLASS/TICKER A SLANX B SLAOX C SLAPX S SLAFX
...............................................................................
DWS World Dividend Fund - February 1, 2014, as revised May 1, 2014
CLASS/TICKER A SERAX B SERBX C SERCX INST SERNX S SCGEX
(Class B shares are closed to new investment)
As with all mutual funds, the Securities and Exchange Commission (SEC) does not
approve or disapprove these shares or determine whether the information in this
prospectus is truthful or complete. It is a criminal offense for anyone to
inform you otherwise.
[DB Logo]
[GRAPHIC APPEARS HERE]
Table of Contents
DWS EMERGING MARKETS EQUITY
FUND
Investment Objective................... 1
Fees and Expenses of the Fund.......... 1
Principal Investment Strategy.......... 2
Main Risks............................. 2
Past Performance....................... 4
Management............................. 4
Purchase and Sale of Fund Shares....... 4
Tax Information........................ 5
Payments to Broker-Dealers and
Other Financial Intermediaries......... 6
DWS ENHANCED EMERGING MARKETS
FIXED INCOME FUND
Investment Objective................... 7
Fees and Expenses of the Fund.......... 7
Principal Investment Strategy.......... 8
Main Risks............................. 9
Past Performance....................... 10
Management............................. 10
Purchase and Sale of Fund Shares....... 11
Tax Information........................ 11
Payments to Broker-Dealers and
Other Financial Intermediaries......... 11
DWS ENHANCED GLOBAL BOND FUND
Investment Objective................... 12
Fees and Expenses of the Fund.......... 12
Principal Investment Strategy.......... 13
Main Risks............................. 13
Past Performance....................... 15
Management............................. 15
Purchase and Sale of Fund Shares....... 15
Tax Information........................ 16
Payments to Broker-Dealers and
Other Financial Intermediaries......... 16
DWS GLOBAL EQUITY FUND
Investment Objective................... 17
Fees and Expenses of the Fund.......... 17
Principal Investment Strategy.......... 18
Main Risks............................. 18
Past Performance....................... 19
Management............................. 20
Purchase and Sale of Fund Shares....... 20
Tax Information........................ 20
Payments to Broker-Dealers and
Other Financial Intermediaries......... 21
DWS GLOBAL SMALL CAP FUND
Investment Objective................... 22
Fees and Expenses of the Fund.......... 22
Principal Investment Strategy.......... 23
Main Risks............................. 23
Past Performance....................... 24
Management............................. 24
Purchase and Sale of Fund Shares....... 25
Tax Information........................ 25
Payments to Broker-Dealers and
Other Financial Intermediaries......... 25
DWS LATIN AMERICA EQUITY FUND
Investment Objective................... 26
Fees and Expenses of the Fund.......... 26
Principal Investment Strategy.......... 27
Main Risks............................. 27
Past Performance....................... 28
Management............................. 29
Purchase and Sale of Fund Shares....... 29
Tax Information........................ 29
Payments to Broker-Dealers and
Other Financial Intermediaries......... 29
DWS WORLD DIVIDEND FUND
Investment Objective............................... 30
Fees and Expenses of the Fund...................... 30
Principal Investment Strategy...................... 31
Main Risks......................................... 31
Past Performance................................... 32
Management......................................... 33
Purchase and Sale of Fund Shares................... 33
Tax Information.................................... 33
Payments to Broker-Dealers and
Other Financial Intermediaries..................... 33
FUND DETAILS
Additional Information About Fund Strategies and
Risks.............................................. 35
DWS Emerging Markets Equity Fund................... 35
DWS Enhanced Emerging Markets Fixed Income
Fund............................................... 37
DWS Enhanced Global Bond Fund...................... 40
DWS Global Equity Fund............................. 42
DWS Global Small Cap Fund.......................... 45
DWS Latin America Equity Fund...................... 47
DWS World Dividend Fund............................ 49
Other Policies and Risks........................... 52
Who Manages and Oversees the Funds................. 52
Management......................................... 54
INVESTING IN THE FUNDS
Choosing a Share Class............................. 58
Buying, Exchanging and Selling Shares.............. 62
How to Buy Shares.................................. 63
How to Exchange Shares............................. 64
How to Sell Shares................................. 64
How to Buy, Sell and Exchange Class R Shares....... 65
Financial Intermediary Support Payments............ 65
Policies You Should Know About..................... 66
Policies About Transactions........................ 66
How each Fund Calculates Share Price............... 71
Other Rights We Reserve............................ 72
Understanding Distributions and Taxes.............. 72
FINANCIAL HIGHLIGHTS............................... 74
APPENDIX........................................... 108
Hypothetical Expense Summary....................... 108
Additional Index Information....................... 125
-------------------------------------------------------------------------------
YOUR INVESTMENT IN A FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY,
ENTITY OR PERSON.
-------------------------------------------------------------------------------
Deutsche Asset
& Wealth Management
[DB Logo]
DWS Emerging Markets Equity Fund
INVESTMENT OBJECTIVE
The fund seeks long-term growth of capital.
FEES AND EXPENSES OF THE FUND
These are the fees and expenses you may pay when you buy and hold shares. You
may qualify for sales charge discounts if you and your immediate family invest,
or agree to invest in the future, at least $50,000 in DWS funds. More
information about these and other discounts is available from your financial
professional and in Choosing a Share Class (p. 58) and Purchase and Redemption
of Shares in the fund's Statement of Additional Information (SAI) (p. II-15).
SHAREHOLDER FEES (paid directly from your investment)
A B C INST S
---------- --------- --------- ---------- ---------
Maximum sales charge (load)
imposed on purchases, as % of
offering price 5.75 None None None None
------------------------------------ ---- -- -- - --
Maximum deferred sales charge
(load), as % of redemption proceeds None 4.00 1.00 None None
------------------------------------ ------ ---- ---- - --
Redemption/exchange fee on shares
owned less than 15 days, as % of
redemption proceeds 2.00 2.00 2.00 2.00 2.00
------------------------------------ ------ ---- ---- ----- ----
Account Maintenance Fee (annually,
for fund account balances below
$10,000 and subject to certain
exceptions) $ 20 $20 $20 None $20
------------------------------------ ------- ---- ---- ----- ----
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a % of the
value of your investment)
A B C INST S
--------- --------- --------- ---------- ----------
Management fee 1.02 1.02 1.02 1.02 1.02
--------------------------------- ---- ---- ---- ---- ----
Distribution/service
(12b-1) fees 0.23 0.98 0.99 None None
--------------------------------- ---- ---- ---- ----- -----
Other expenses 0.71 0.87 0.76 0.50 0.71
--------------------------------- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES 1.96 2.87 2.77 1.52 1.73
--------------------------------- ---- ---- ---- ----- -----
Less fee waiver/reimbursement 0.14 0.30 0.20 0.00 0.16
--------------------------------- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES AFTER FEE WAIVER AND/OR
EXPENSE REIMBURSEMENT 1.82 2.57 2.57 1.52 1.57
--------------------------------- ---- ---- ---- ----- -----
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.65%, 2.40%, 2.40% and 1.40%; and for the period
October 1, 2014 through April 30, 2015 at ratios no higher than 1.82%, 2.57%,
2.57% and 1.57% (in each instance, excluding extraordinary expenses, taxes,
brokerage and interest expenses) for Class A, Class B, Class C, and Class S,
respectively. The agreement may only be terminated with the consent of the
fund's Board.
EXAMPLE
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the fund's operating expenses
(including one year of capped expenses for Class A, Class B, Class C and Class
S) remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
1
PROSPECTUS DWS Emerging Markets Equity Fund
YEARS A B C INST S
------- -------- -------- -------- -------- --------
1 $ 749 $ 660 $ 360 $ 155 $ 160
-- ----- ----- ----- ----- -----
3 1,142 1,161 840 480 529
-- ----- ----- ----- ----- -----
5 1,559 1,687 1,447 829 924
-- ----- ----- ----- ----- -----
10 2,718 2,758 3,085 1,813 2,028
-- ----- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A B C INST S
------- -------- -------- -------- -------- --------
1 $ 749 $ 260 $ 260 $ 155 $ 160
-- ----- ----- ----- ----- -----
3 1,142 861 840 480 529
-- ----- ----- ----- ----- -----
5 1,559 1,487 1,447 829 924
-- ----- ----- ----- ----- -----
10 2,718 2,758 3,085 1,813 2,028
-- ----- ----- ----- ----- -----
Class B converts to Class A after six years; the Example for Class B reflects
Class A fees after the conversion.
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may mean higher taxes if you are
investing in a taxable account. These costs are not reflected in annual fund
operating expenses or in the expense example, and can affect the fund's
performance.
Portfolio turnover rate for fiscal year 2013: 49%.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
net assets, plus the amount of any borrowings for investment purposes, in
emerging market equities (equities traded mainly in emerging markets or issued
by companies that are organized in emerging markets or have more than half of
their business there). The fund considers "emerging markets" to include any
country defined as an emerging or developing economy by The International Bank
for Reconstruction and Development (the World Bank), the International Finance
Corporation or the United Nations or its authorities.
The fund considers an issuer to have more than half of its business in emerging
markets if at least (i) 50% of the issuer's assets are in an emerging market
country, or (ii) 50% of an issuer's revenues or profits are from goods produced
or sold, investments made, or services performed in emerging markets.
The fund may invest up to 20% of net assets in equities from the US or other
developed markets. The fund may also invest up to 20% of net assets in US or
emerging market debt securities when portfolio management believes these
securities may perform at least as well as equities.
The fund invests primarily in common stocks, but may also invest in preferred
stocks or convertible securities.
MANAGEMENT PROCESS. Portfolio management uses a four step management process.
In the first step, using a macroeconomic outlook, portfolio management assesses
the general outlook for emerging market equities. The key drivers of this
outlook are growth, valuation, and market sentiment. This process is then
applied at individual country and sector levels to determine country and sector
weightings. In the second step, portfolio management performs a bottom-up
fundamental analysis of the companies in the designated countries and sectors
(i.e., an analysis of the salient attributes of the various individual
companies), resulting in recommended stocks for the designated countries and
sectors and corresponding target prices for those stocks. In the third step,
portfolio management constructs the fund's portfolio, weighting individual
stocks based on management's assessments and setting individual country and
sector market exposure based on management's outlook. In the fourth and final
step, portfolio management actively monitors the fund's portfolio, including an
ongoing assessment of the portfolio's risks.
DERIVATIVES. Portfolio management generally may use futures contracts, which
are a type of derivative (a contract whose value is based on, for example,
indices, currencies or securities) as a substitute for direct investment in a
particular asset class or to keep cash on hand to meet shareholder redemptions.
In addition, portfolio management generally may use forward currency contracts
to hedge the fund's exposure to changes in foreign currency exchange rates on
its foreign currency denominated portfolio holdings or to facilitate
transactions in foreign currency denominated securities. Portfolio management
generally may use structured notes to gain exposure to certain foreign markets
that may not permit direct investment.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
2
PROSPECTUS DWS Emerging Markets Equity Fund
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
GROWTH INVESTING RISK. As a category, growth stocks may underperform value
stocks (and the stock market as a whole) over any period of time. Because the
prices of growth stocks are based largely on the expectation of future
earnings, growth stock prices can decline rapidly and significantly in reaction
to negative news about such factors as earnings, the economy, political
developments, or other news.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
3
PROSPECTUS DWS Emerging Markets Equity Fund
PAST PERFORMANCE
How a fund's returns vary from year to year can give an idea of its risk; so
can comparing fund performance to overall market performance (as measured by an
appropriate market index). Past performance may not indicate future results.
All performance figures below assume that dividends were reinvested. For more
recent performance figures, go to dws-investments.com (the Web site does not
form a part of this prospectus) or call the phone number included in this
prospectus.
CALENDAR YEAR TOTAL RETURNS (%) (Class A)
These year-by-year returns do not include sales charges, if any, and would be
lower if they did. Returns for other classes were different and are not shown
here.
[BAR GRAPHIC OMITTED HERE]
[BAR GRAPHIC DATA]
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
22.12 33.71 30.15 39.40 -57.80 68.84 11.25 -23.22 15.14 -2.12
Best Quarter: 32.27%, Q2 2009 Worst Quarter: -32.73%, Q4 2008
AVERAGE ANNUAL TOTAL RETURNS
(For periods ended 12/31/2013 expressed as a %)
After-tax returns (which are shown only for Class A and would be different for
other classes) reflect the historical highest individual federal income tax
rates, but do not reflect any state or local taxes. Your actual after-tax
returns may be different. After-tax returns are not relevant to shares held in
an IRA, 401(k) or other tax-advantaged investment plan. Index comparisons for
Institutional Class shares began on 2/29/2008.
CLASS 1 5 10
INCEPTION YEAR YEARS YEARS
----------- ---------- --------- ---------
CLASS A before tax 5/29/2001 -7.74 8.91 6.71
------------------------- --------- ------ ----- -----
After tax on
distributions -7.65 8.96 5.58
After tax on distribu-
tions and sale of fund
shares -4.77 7.90 5.90
------------------------- --------- ------ ----- -----
CLASS B before tax 5/29/2001 -5.82 9.10 6.42
------------------------- --------- ------ ----- -----
CLASS C before tax 5/29/2001 -2.82 9.31 6.46
------------------------- --------- ------ ----- -----
CLASS S before tax 5/8/1996 -1.84 10.49 7.59
------------------------- --------- ------ ----- -----
MSCI EMERGING
MARKET INDEX (reflects
no deduction for fees or
expenses) -2.60 14.79 11.17
------------------------- --------- ------ ----- -----
CLASS 1 5 SINCE
INCEPTION YEAR YEARS INCEPTION
----------- ---------- ---------- ----------
INST CLASS before tax 3/3/2008 -1.91 10.61 -4.49
------------------------- -------- ------ ----- ------
MSCI EMERGING
MARKET INDEX (reflects
no deduction for fees or
expenses) -2.60 14.79 -0.18
------------------------- -------- ------ ----- ------
MANAGEMENT
INVESTMENT ADVISOR
Deutsche Investment Management Americas Inc.
SUBADVISOR
Deutsche Alternative Asset Management (Global) Limited.
PORTFOLIO MANAGER(S)
SEAN TAYLOR, MANAGING DIRECTOR. Lead Portfolio Manager of the fund. Began
managing the fund in 2014.
ANDREW BEAL, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2014.
PURCHASE AND SALE OF FUND SHARES
MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC
UGMAS/ INVESTMENT
NON-IRA IRAS UTMAS PLANS
------------ -------------- -------- ------------------
A B C 1,000 500 1,000 500
------- ----- --- ----- ---
INST 1,000,000 N/A N/A N/A
------- --------- ---- ----- ----
S 2,500 1,000 1,000 1,000
------- --------- ----- ----- -----
For participants in all group retirement plans, and in certain fee-based and
wrap programs approved by the Advisor, there is no minimum initial investment
and no minimum additional investment for Class A, C and S shares. For Section
529 college savings plans, there is no minimum initial investment and no
minimum additional investment for Class S shares. In certain instances, the
minimum initial investment may be waived for Institutional Class shares. There
is no minimum additional investment for Institutional Class shares. Because
Class B shares are closed to new investment, existing Class B shareholders may
purchase Class A and C shares with a minimum initial investment of $50. The
minimum additional investment in all other instances is $50.
TO PLACE ORDERS
MAIL New Accounts DWS Investments, PO Box 219356
Kansas City, MO 64121-9356
Additional Investments DWS Investments, PO Box 219154
Kansas City, MO 64121-9154
Exchanges and DWS Investments, PO Box 219557
Redemptions Kansas City, MO 64121-9557
EXPEDITED MAIL DWS Investments, 210 West 10th Street
Kansas City, MO 64105-1614
WEB SITE dws-investments.com
TELEPHONE (800) 728-3337
M - F 8 a.m. - 8 p.m. ET
TDD LINE (800) 972-3006, M - F 8 a.m. - 8 p.m. ET
4
PROSPECTUS DWS Emerging Markets Equity Fund
Initial investments must be sent by mail. You can make additional investments
or sell shares of the fund on any business day by visiting our Web site, by
mail, or by telephone. The fund is generally open on days when the New York
Stock Exchange is open for regular trading.
Class B shares are closed to new purchases, except for exchanges and the
reinvestment of dividends or other distributions. Institutional Class shares
are generally available only to qualified institutions. Class S shares are only
available to a limited group of investors.
TAX INFORMATION
The fund's distributions are generally taxable to you as ordinary income or
capital gains, except when your investment is in an IRA, 401(k), or other
tax-deferred investment plan. Any withdrawals you make from such tax-deferred
investment plans, however, may be taxable to you.
5
PROSPECTUS DWS Emerging Markets Equity Fund
PAYMENTS TO BROKER-DEALERS AND
OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and its related companies may pay the
intermediary for the sale of fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary's Web site for more information.
6
PROSPECTUS DWS Emerging Markets Equity Fund
Deutsche Asset
& Wealth Management
[DB Logo]
DWS Enhanced Emerging Markets Fixed Income Fund
INVESTMENT OBJECTIVE
The fund seeks to provide high current income and, secondarily, long-term
capital appreciation.
FEES AND EXPENSES OF THE FUND
These are the fees and expenses you may pay when you buy and hold shares. You
may qualify for sales charge discounts if you and your immediate family invest,
or agree to invest in the future, at least $100,000 in DWS funds. More
information about these and other discounts is available from your financial
professional and in Choosing a Share Class (p. 58) and Purchase and Redemption
of Shares in the fund's Statement of Additional Information (SAI) (p. II-15).
SHAREHOLDER FEES (paid directly from your investment)
A B C INST S
---------- --------- --------- ---------- ---------
Maximum sales charge (load)
imposed on purchases, as % of
offering price 4.50 None None None None
------------------------------------ ---- -- -- - --
Maximum deferred sales charge
(load), as % of redemption proceeds None 4.00 1.00 None None
------------------------------------ ------ ---- ---- - --
Redemption/exchange fee on shares
owned less than 15 days, as % of
redemption proceeds 2.00 2.00 2.00 2.00 2.00
------------------------------------ ------ ---- ---- ----- ----
Account Maintenance Fee (annually,
for fund account balances below
$10,000 and subject to certain
exceptions) $ 20 $20 $20 None $20
------------------------------------ ------- ---- ---- ----- ----
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a % of the
value of your investment)
A B C INST S
--------- --------- --------- ---------- ----------
Management fee 0.59 0.59 0.59 0.59 0.59
----------------------------------- ---- ---- ---- ---- ----
Distribution/service (12b-1) fees 0.24 1.00 1.00 None None
----------------------------------- ---- ---- ---- ----- -----
Other expenses 0.40 0.49 0.38 0.22 0.37
----------------------------------- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES 1.23 2.08 1.97 0.81 0.96
----------------------------------- ---- ---- ---- ----- -----
Less fee waiver/expense reimburse-
ment 0.00 0.06 0.00 0.00 0.00
----------------------------------- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES AFTER FEE WAIVER AND/OR
EXPENSE REIMBURSEMENT 1.23 2.02 1.97 0.81 0.96
----------------------------------- ---- ---- ---- ----- -----
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.95%; and for the period from October 1, 2014
through January 31, 2015, at a ratio no higher than 2.02% (in each instance,
excluding extraordinary expenses, taxes, brokerage and interest expenses) for
Class B. These agreements may only be terminated with the consent of the fund's
Board.
EXAMPLE
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the fund's operating expenses
(including one year of capped expenses for Class B) remain the same. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
7
PROSPECTUS DWS Enhanced Emerging Markets Fixed Income Fund
YEARS A B C INST S
------- -------- -------- -------- -------- --------
1 $ 570 $ 605 $ 300 $ 83 $ 98
-- ----- ----- ----- ----- -----
3 823 946 618 259 306
-- ----- ----- ----- ----- -----
5 1,095 1,313 1,062 450 531
-- ----- ----- ----- ----- -----
10 1,872 1,988 2,296 1,002 1,178
-- ----- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A B C INST S
------- -------- -------- -------- -------- --------
1 $ 570 $ 205 $ 200 $ 83 $ 98
-- ----- ----- ----- ----- -----
3 823 646 618 259 306
-- ----- ----- ----- ----- -----
5 1,095 1,113 1,062 450 531
-- ----- ----- ----- ----- -----
10 1,872 1,988 2,296 1,002 1,178
-- ----- ----- ----- ----- -----
Class B converts to Class A after six years; the Example for Class B reflects
Class A fees after the conversion.
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may mean higher taxes if you are
investing in a taxable account. These costs are not reflected in annual fund
operating expenses or in the expense example, and can affect the fund's
performance.
Portfolio turnover rate for fiscal year 2013: 205%.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
net assets, plus the amount of any borrowings for investment purposes, in high
yield bonds (also known as "junk bonds") and other debt securities issued by
governments and corporations in emerging market countries (i.e., the issuer is
traded mainly in an emerging market, is organized under the laws of an emerging
market country or is a company with more than half of its business in emerging
markets) or the return on which is derived primarily from emerging markets.
The fund considers "emerging markets" to include any country that is defined as
an emerging or developing economy by The International Bank for Reconstruction
and Development (the World Bank), the International Finance Corporation or the
United Nations or its authorities. Under normal circumstances, the fund will
not invest more than 40% of its total assets in any one country.
The fund may invest without limit in investment-grade debt securities and in
junk bonds, which are those below the fourth credit grade (grade BB/Ba and
below) and may include debt securities not currently paying interest and debt
securities in default.
The fund invests at least 50% of total assets in US dollar-
denominated securities.
MANAGEMENT PROCESS. Portfolio management typically considers a number of
factors, including economic and currency outlooks, possible interest rate
movements, capital flows, debt levels, inflation trends, credit quality of
issuers, security characteristics and changes in supply and demand within
global bond markets.
In choosing individual bonds, portfolio management uses independent analysis to
look for bonds that have attractive yields and show improving credit. Portfolio
management may also adjust the duration (a measure of sensitivity to interest
rate movements) of the fund's portfolio, depending on its outlook for interest
rates.
CURRENCY STRATEGIES. In addition to the fund's main investment strategy,
portfolio management may, based on its investment outlook, seek to enhance
returns by employing proprietary quantitative, rules-based methodology currency
strategies across developed and emerging market currencies using derivatives
(contracts whose value are based on, for example, indices, currencies or
securities), in particular forward currency contracts. Three main strategies
may be employed: a carry strategy, a momentum strategy and a valuation
strategy. In implementing the carry strategy, portfolio management will use a
"relative value" analysis, seeking to systematically sell low interest rate
currencies and buy high interest rate currencies. In implementing the momentum
strategy, portfolio management will use multi-year exchange rate trends,
seeking to systematically sell lower returning currencies and buy higher
returning currencies. In implementing the valuation strategy, portfolio
management will use a "fair value" analysis, seeking to systematically buy
"undervalued" currencies and sell "overvalued" currencies. For any currency
derivative contract, the fund's gains or losses generally will be affected by
the relative values of the applicable currencies and the amount of currency
(the "notional" amount) to which the contract applies. The amount of gain or
loss realized by the fund on the contract generally would be magnified if the
notional amount is greater (e.g., the fund's gains or losses on a contract
would be magnified if it were to agree to purchase 100,000 Euros as compared
with 100 Euros). The aggregate notional amount of the fund's currency
derivatives resulting from its currency strategies may significantly exceed the
net assets of the fund (and at times may exceed two times the fund's net
assets).
DERIVATIVES. Outside of the currency strategies, portfolio management generally
may use futures contracts, which are a type of derivative (a contract whose
value is based on, for example, indices, currencies or securities) as a hedge
against anticipated interest rate or currency market changes, and for duration
management (i.e., reducing or increasing the sensitivity of the fund's
portfolio to interest rate changes), and for non-hedging purposes to seek to
enhance potential gains. In addition, portfolio management generally may use
forward currency contracts (i) to hedge the fund's exposure to changes in
foreign currency
8
PROSPECTUS DWS Enhanced Emerging Markets Fixed Income Fund
exchange rates on its foreign currency denominated portfolio holdings; (ii) to
facilitate transactions in foreign currency denominated securities; or (iii)
for non-hedging purposes to seek to enhance potential gains.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
CURRENCY STRATEGIES RISK. The success of the currency strategies depends, in
part, on the effectiveness and implementation of portfolio management's
proprietary strategies. If portfolio management's analysis proves to be
incorrect, losses to the fund may be significant and may substantially exceed
the intended level of market exposure for the currency strategies.
As part of the currency strategies, the fund will have substantial exposure to
the risks of non-US currency markets. Foreign currency rates may fluctuate
significantly over short periods of time for a number of reasons, including
changes in interest rates and economic or political developments in the US or
abroad. As a result, the fund's exposure to foreign currencies could cause
lower returns or even losses to the fund. Although portfolio management seeks
to limit these risks through the aggregation of various long and short
positions, there can be no assurance that it will be able to do so.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
NON-DIVERSIFICATION RISK. The fund is classified as non-diversified under the
Investment Company Act of 1940, as amended. This means that the fund may invest
in securities of relatively few issuers. Thus, the performance of one or a
small number of portfolio holdings can affect overall performance.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
9
PROSPECTUS DWS Enhanced Emerging Markets Fixed Income Fund
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
ACTIVE TRADING RISK. The fund may trade actively. This could raise transaction
costs (thus lowering returns) and could mean increased taxable distributions to
shareholders and distributions that will be taxable to shareholders at higher
federal income tax rates.
PAST PERFORMANCE
How a fund's returns vary from year to year can give an idea of its risk; so
can comparing fund performance to overall market performance (as measured by an
appropriate market index). Past performance may not indicate future results.
All performance figures below assume that dividends were reinvested. For more
recent performance figures, go to dws-investments.com (the Web site does not
form a part of this prospectus) or call the phone number included in this
prospectus.
CALENDAR YEAR TOTAL RETURNS (%) (Class A)
These year-by-year returns do not include sales charges, if any, and would be
lower if they did. Returns for other classes were different and are not shown
here.
[BAR GRAPHIC OMITTED HERE]
[BAR GRAPHIC DATA]
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
13.53 12.94 14.00 4.04 -24.61 32.80 11.65 -3.85 18.24 -5.22
Best Quarter: 12.29%, Q3 2009 Worst Quarter: -17.79%, Q4 2008
AVERAGE ANNUAL TOTAL RETURNS
(For periods ended 12/31/2013 expressed as a %)
After-tax returns (which are shown only for Class A and would be different for
other classes) reflect the historical highest individual federal income tax
rates, but do not reflect any state or local taxes. Your actual after-tax
returns may be different. After-tax returns are not relevant to shares held in
an IRA, 401(k) or other tax-advantaged investment plan. Index comparisons for
Institutional Class shares began on 2/29/2008.
CLASS 1 5 10
INCEPTION YEAR YEARS YEARS
------------ ---------- --------- ---------
CLASS A before tax 6/18/2001 -9.48 8.82 5.75
--------------------------- ---------- ------- ----- ----
After tax on
distributions -10.54 7.04 3.72
After tax on distribu-
tions and sale of fund
shares -6.16 6.56 3.73
--------------------------- ---------- ------- ----- ----
CLASS B before tax 6/18/2001 -8.68 8.79 5.41
--------------------------- ---------- ------- ----- ----
CLASS C before tax 6/18/2001 -5.97 9.00 5.43
--------------------------- ---------- ------- ----- ----
CLASS S before tax 12/31/1993 -4.89 10.10 6.51
--------------------------- ---------- ------- ----- ----
JP MORGAN EMBI GLOBAL
DIVERSIFIED INDEX
(reflects no deduction for
fees, expenses or taxes) -5.25 11.72 8.19
--------------------------- ---------- ------- ----- ----
CLASS 1 5 SINCE
INCEPTION YEAR YEARS INCEPTION
----------- ---------- ---------- ----------
INST CLASS before tax 3/3/2008 -4.74 10.28 3.68
--------------------------- -------- ------ ----- ----
JP MORGAN EMBI GLOBAL
DIVERSIFIED INDEX
(reflects no deduction for
fees, expenses or taxes) -5.25 11.72 7.44
--------------------------- -------- ------ ----- ----
MANAGEMENT
INVESTMENT ADVISOR
Deutsche Investment Management Americas Inc.
PORTFOLIO MANAGER(S)
WILLIAM CHEPOLIS, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began
managing the fund in 2011.
JOHN D. RYAN, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2011.
DARWEI KUNG, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2011.
10
PROSPECTUS DWS Enhanced Emerging Markets Fixed Income Fund
STEVEN ZHOU, ASSISTANT VICE PRESIDENT. Portfolio Manager of the fund. Began
managing the fund in 2013.
RAHMILA NADI, ASSOCIATE. Portfolio Manager of the fund. Began managing the fund
in 2013.
PURCHASE AND SALE OF FUND SHARES
MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC
UGMAS/ INVESTMENT
NON-IRA IRAS UTMAS PLANS
------------ -------------- -------- ------------------
A B C 1,000 500 1,000 500
------- ----- --- ----- ---
INST 1,000,000 N/A N/A N/A
------- --------- ---- ----- ----
S 2,500 1,000 1,000 1,000
------- --------- ----- ----- -----
For participants in all group retirement plans, and in certain fee-based and
wrap programs approved by the Advisor, there is no minimum initial investment
and no minimum additional investment for Class A, C and S shares. For Section
529 college savings plans, there is no minimum initial investment and no
minimum additional investment for Class S shares. In certain instances, the
minimum initial investment may be waived for Institutional Class shares. There
is no minimum additional investment for Institutional Class shares. Because
Class B shares are closed to new investment, existing Class B shareholders may
purchase Class A and C shares with a minimum initial investment of $50. The
minimum additional investment in all other instances is $50.
TO PLACE ORDERS
MAIL New Accounts DWS Investments, PO Box 219356
Kansas City, MO 64121-9356
Additional Investments DWS Investments, PO Box 219154
Kansas City, MO 64121-9154
Exchanges and DWS Investments, PO Box 219557
Redemptions Kansas City, MO 64121-9557
EXPEDITED MAIL DWS Investments, 210 West 10th Street
Kansas City, MO 64105-1614
WEB SITE dws-investments.com
TELEPHONE (800) 728-3337
M - F 8 a.m. - 8 p.m. ET
TDD LINE (800) 972-3006, M - F 8 a.m. - 8 p.m. ET
Initial investments must be sent by mail. You can make additional investments
or sell shares of the fund on any business day by visiting our Web site, by
mail, or by telephone. The fund is generally open on days when the New York
Stock Exchange is open for regular trading.
Class B shares are closed to new purchases, except for exchanges and the
reinvestment of dividends or other distributions. Institutional Class shares
are generally available only to qualified institutions. Class S shares are only
available to a limited group of investors.
TAX INFORMATION
The fund's distributions are generally taxable to you as ordinary income or
capital gains, except when your investment is in an IRA, 401(k), or other
tax-deferred investment plan. Any withdrawals you make from such tax-deferred
investment plans, however, may be taxable to you.
PAYMENTS TO BROKER-DEALERS AND
OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and its related companies may pay the
intermediary for the sale of fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary's Web site for more information.
11
PROSPECTUS DWS Enhanced Emerging Markets Fixed Income Fund
Deutsche Asset
& Wealth Management
[DB Logo]
DWS Enhanced Global Bond Fund
INVESTMENT OBJECTIVE
The fund seeks total return, with an emphasis on current income; capital
appreciation is a secondary goal.
FEES AND EXPENSES OF THE FUND
These are the fees and expenses you may pay when you buy and hold shares. You
may qualify for sales charge discounts if you and your immediate family invest,
or agree to invest in the future, at least $100,000 in DWS funds. More
information about these and other discounts is available from your financial
professional and in Choosing a Share Class (p. 58) and Purchase and Redemption
of Shares in the fund's Statement of Additional Information (SAI) (p. II-15).
SHAREHOLDER FEES (paid directly from your investment)
A B C S
----------- --------- --------- ---------
Maximum sales charge (load) imposed on
purchases, as % of offering price 4.50 None None None
----------------------------------------- ---- -- -- --
Maximum deferred sales charge (load), as
% of redemption proceeds None() 4.00 1.00 None
----------------------------------------- ------- ---- ---- --
Redemption/exchange fee on shares owned
less than 15 days, as % of redemption
proceeds 2.00 2.00 2.00 2.00
----------------------------------------- ------- ---- ---- ----
Account Maintenance Fee (annually, for
fund account balances below $10,000 and
subject to certain exceptions) $ 20 $20 $20 $20
----------------------------------------- ------- ---- ---- ----
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a % of the
value of your investment)
A B C S
--------- --------- --------- ----------
Management fee 0.41 0.41 0.41 0.41
-------------------------------------- ---- ---- ---- ----
Distribution/service
(12b-1) fees 0.24 1.00 1.00 None
-------------------------------------- ---- ---- ---- -----
Other expenses 0.52 0.56 0.50 0.46
-------------------------------------- ---- ---- ---- -----
TOTAL ANNUAL FUND OPERATING EXPENSES 1.17 1.97 1.91 0.87
-------------------------------------- ---- ---- ---- -----
Less fee waiver/expense reimbursement 0.07 0.12 0.06 0.02
-------------------------------------- ---- ---- ---- -----
TOTAL ANNUAL FUND OPERATING EXPENSES
AFTER FEE WAIVER AND/OR EXPENSE REIM-
BURSEMENT 1.10 1.85 1.85 0.85
-------------------------------------- ---- ---- ---- -----
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.02%, 1.77%, 1.77 and 0.77%; and for the period
from October 1, 2014 through January 31, 2015, at ratios no higher than 1.10%,
1.85%, 1.85% and 0.85% (in each instance, excluding extraordinary expenses,
taxes, brokerage and interest expenses) for Classes A, B, C and S,
respectively. These agreements may only be terminated with the consent of the
fund's Board.
EXAMPLE
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the fund's operating expenses
(including one year of capped expenses in each period) remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
YEARS A B C S
------- -------- -------- -------- --------
1 $ 557 $ 588 $ 288 $ 87
-- ----- ----- ----- -----
3 798 907 594 276
-- ----- ----- ----- -----
5 1,058 1,251 1,026 480
-- ----- ----- ----- -----
10 1,801 1,889 2,228 1,071
-- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A B C S
------- -------- -------- -------- --------
1 $ 557 $ 188 $ 188 $ 87
-- ----- ----- ----- -----
3 798 607 594 276
-- ----- ----- ----- -----
5 1,058 1,051 1,026 480
-- ----- ----- ----- -----
10 1,801 1,889 2,228 1,071
-- ----- ----- ----- -----
12
PROSPECTUS DWS Enhanced Global Bond Fund
Class B converts to Class A after six years; the Example for Class B reflects
Class A fees after the conversion.
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may mean higher taxes if you are
investing in a taxable account. These costs are not reflected in annual fund
operating expenses or in the expense example, and can affect the fund's
performance.
Portfolio turnover rate for fiscal year 2013: 493%.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
net assets, plus the amount of any borrowings for investment purposes, in bonds
of issuers from around the world, including the United States. The fund can buy
many types of income-producing securities of any stated maturity, among them US
and foreign government bonds, corporate bonds and mortgage- and asset-backed
securities. The fund is typically invested in at least three different
countries.
The fund may invest up to 35% of net assets in junk bonds, which are those
below the fourth credit grade (i.e. grade BB/Ba and below), and may include
debt securities not currently paying interest or in default.
MANAGEMENT PROCESS. Portfolio management typically considers a number of
factors, including economic and currency outlooks, possible interest rate
movements, capital flows, debt levels, inflation trends, credit quality of
issuers, security characteristics and changes in supply and demand within the
global bond markets.
In choosing individual bonds, portfolio management uses independent analysis to
look for bonds that have attractive yields and show improving credit.
CURRENCY STRATEGIES. In addition to the fund's main investment strategy,
portfolio management may, based on its investment outlook, seek to enhance
returns by employing proprietary quantitative, rules-based methodology currency
strategies across developed and emerging market currencies using derivatives
(contracts whose value are based on, for example, indices, currencies or
securities), in particular forward currency contracts. Three main strategies
may be employed: a carry strategy, a momentum strategy and a valuation
strategy. In implementing the carry strategy, portfolio management will use a
"relative value" analysis, seeking to systematically sell low interest rate
currencies and buy high interest rate currencies. In implementing the momentum
strategy, portfolio management will use multi-year exchange rate trends,
seeking to systematically sell lower returning currencies and buy higher
returning currencies. In implementing the valuation strategy, portfolio
management will use a "fair value" analysis, seeking to systematically buy
"undervalued" currencies and sell "overvalued" currencies. For any currency
derivative contract, the fund's gains or losses generally will be affected by
the relative values of the applicable currencies and the amount of currency
(the "notional" amount) to which the contract applies. The amount of gain or
loss realized by the fund on the contract generally would be magnified if the
notional amount is greater (e.g., the fund's gains or losses on a contract
would be magnified if it were to agree to purchase 100,000 Euros as compared
with 100 Euros). The aggregate notional amount of the fund's currency
derivatives resulting from its currency strategies may significantly exceed the
net assets of the fund (and at times may exceed two times the fund's net
assets).
DERIVATIVES. Outside of the currency strategies, portfolio management generally
may use futures contracts, which are a type of derivative (a contract whose
value is based on, for example, indices, currencies or securities) as a hedge
against anticipated interest rate or currency market changes, and for duration
management (i.e., reducing or increasing the sensitivity of the fund's
portfolio to interest rate changes), and for non-hedging purposes to seek to
enhance potential gains. In addition, portfolio management generally may use
forward currency contracts (i) to hedge the fund's exposure to changes in
foreign currency exchange rates on its foreign currency denominated portfolio
holdings; (ii) to facilitate transactions in foreign currency denominated
securities; or (iii) for non-hedging purposes to seek to enhance potential
gains.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health,
13
PROSPECTUS DWS Enhanced Global Bond Fund
the prices of their debt securities can be more vulnerable to bad economic
news, or even the expectation of bad news, than investment-grade debt
securities. High-yield debt securities are considered speculative, and credit
risk for high-yield securities is greater than for higher-rated securities.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
CURRENCY STRATEGIES RISK. The success of the currency strategies depends, in
part, on the effectiveness and implementation of portfolio management's
proprietary strategies. If portfolio management's analysis proves to be
incorrect, losses to the fund may be significant and may substantially exceed
the intended level of market exposure for the currency strategies.
As part of the currency strategies, the fund will have substantial exposure to
the risks of non-US currency markets. Foreign currency rates may fluctuate
significantly over short periods of time for a number of reasons, including
changes in interest rates and economic or political developments in the US or
abroad. As a result, the fund's exposure to foreign currencies could cause
lower returns or even losses to the fund. Although portfolio management seeks
to limit these risks through the aggregation of various long and short
positions, there can be no assurance that it will be able to do so.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
NON-DIVERSIFICATION RISK. The fund is classified as non-diversified under the
Investment Company Act of 1940, as amended. This means that the fund may invest
in securities of relatively few issuers. Thus, the performance of one or a
small number of portfolio holdings can affect overall performance.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance.
14
PROSPECTUS DWS Enhanced Global Bond Fund
Also, there may be delays in recovery of securities loaned or even a loss of
rights in the collateral should the borrower of the securities fail financially
while holding the security.
ACTIVE TRADING RISK. The fund may trade actively. This could raise transaction
costs (thus lowering returns) and could mean increased taxable distributions to
shareholders and distributions that will be taxable to shareholders at higher
federal income tax rates.
PAST PERFORMANCE
How a fund's returns vary from year to year can give an idea of its risk; so
can comparing fund performance to overall market performance (as measured by an
appropriate market index). Past performance may not indicate future results.
All performance figures below assume that dividends were reinvested. For more
recent performance figures, go to dws-investments.com (the Web site does not
form a part of this prospectus) or call the phone number included in this
prospectus.
CALENDAR YEAR TOTAL RETURNS (%) (Class A)
These year-by-year returns do not include sales charges, if any, and would be
lower if they did. Returns for other classes were different and are not shown
here.
[BAR GRAPHIC OMITTED HERE]
[BAR GRAPHIC DATA]
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
6.34 -1.65 4.89 6.64 7.08 7.36 4.77 -2.97 8.33 -2.57
Best Quarter: 7.48%, Q3 2009 Worst Quarter: -4.93%, Q1 2009
AVERAGE ANNUAL TOTAL RETURNS
(For periods ended 12/31/2013 expressed as a %)
After-tax returns (which are shown only for Class A and would be different for
other classes) reflect the historical highest individual federal income tax
rates, but do not reflect any state or local taxes. Your actual after-tax
returns may be different. After-tax returns are not relevant to shares held in
an IRA, 401(k) or other tax-advantaged investment plan.
CLASS 1 5 10
INCEPTION YEAR YEARS YEARS
----------- ---------- --------- ---------
CLASS A before tax 6/18/2001 -6.96 1.93 3.26
------------------------- --------- ------ ---- ----
After tax on
distributions -7.81 0.86 1.81
After tax on distribu-
tions and sale of fund
shares -4.39 1.06 1.94
------------------------- --------- ------ ---- ----
CLASS B before tax 6/18/2001 -6.14 1.88 2.92
------------------------- --------- ------ ---- ----
CLASS C before tax 6/18/2001 -3.30 2.11 2.94
------------------------- --------- ------ ---- ----
CLASS S before tax 3/1/1991 -2.31 3.15 4.01
------------------------- --------- ------ ---- ----
BARCLAYS CAPITAL GLOBAL
AGGREGATE
BOND INDEX (reflects no
deduction for fees,
expenses or taxes) -2.60 3.91 4.46
------------------------- --------- ------ ---- ----
MANAGEMENT
INVESTMENT ADVISOR
Deutsche Investment Management Americas Inc.
PORTFOLIO MANAGER(S)
WILLIAM CHEPOLIS, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began
managing the fund in 2011.
JOHN D. RYAN, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2012.
DARWEI KUNG, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2012.
GARY RUSSELL, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began
managing the fund in 2012.
RAHMILA NADI, ASSOCIATE. Portfolio Manager of the fund. Began managing the fund
in 2013.
PURCHASE AND SALE OF FUND SHARES
MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC
UGMAS/ INVESTMENT
NON-IRA IRAS UTMAS PLANS
--------- -------- -------- -----------
A B C 1,000 500 1,000 500
------- ----- --- ----- ---
S 2,500 1,000 1,000 1,000
------- ----- ----- ----- -----
For participants in all group retirement plans, and in certain fee-based and
wrap programs approved by the Advisor, there is no minimum initial investment
and no minimum additional investment for Class A, C and S shares. For Section
529 college savings plans, there is no minimum initial investment and no
minimum additional investment for Class S shares. Because Class B shares are
closed to new investment, existing Class B shareholders may purchase Class A
and C shares with a minimum initial investment of $50. The minimum additional
investment in all other instances is $50.
15
PROSPECTUS DWS Enhanced Global Bond Fund
TO PLACE ORDERS
MAIL New Accounts DWS Investments, PO Box 219356
Kansas City, MO 64121-9356
Additional Investments DWS Investments, PO Box 219154
Kansas City, MO 64121-9154
Exchanges and DWS Investments, PO Box 219557
Redemptions Kansas City, MO 64121-9557
EXPEDITED MAIL DWS Investments, 210 West 10th Street
Kansas City, MO 64105-1614
WEB SITE dws-investments.com
TELEPHONE (800) 728-3337
M - F 8 a.m. - 8 p.m. ET
TDD LINE (800) 972-3006, M - F 8 a.m. - 8 p.m. ET
Initial investments must be sent by mail. You can make additional investments
or sell shares of the fund on any business day by visiting our Web site, by
mail, or by telephone. The fund is generally open on days when the New York
Stock Exchange is open for regular trading.
Class B shares are closed to new purchases, except for exchanges and the
reinvestment of dividends or other distributions. Class S shares are only
available to a limited group of investors.
TAX INFORMATION
The fund's distributions are generally taxable to you as ordinary income or
capital gains, except when your investment is in an IRA, 401(k), or other
tax-deferred investment plan. Any withdrawals you make from such tax-deferred
investment plans, however, may be taxable to you.
PAYMENTS TO BROKER-DEALERS AND
OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and its related companies may pay the
intermediary for the sale of fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary's Web site for more information.
16
PROSPECTUS DWS Enhanced Global Bond Fund
Deutsche Asset
& Wealth Management
[DB Logo]
DWS Global Equity Fund
(formerly DWS Diversified International Equity Fund)
INVESTMENT OBJECTIVE
The fund seeks capital appreciation.
FEES AND EXPENSES OF THE FUND
These are the fees and expenses you may pay when you buy and hold shares. You
may qualify for sales charge discounts if you and your immediate family invest,
or agree to invest in the future, at least $50,000 in DWS funds. More
information about these and other discounts is available from your financial
professional and in Choosing a Share Class (p. 58) and Purchase and Redemption
of Shares in the fund's Statement of Additional Information (SAI) (p. II-15).
SHAREHOLDER FEES (paid directly from your investment)
A B C R INST S
---------- --------- --------- ---------- ---------- ---------
Maximum sales charge (load)
imposed on purchases, as %
of offering price 5.75 None None None None None
------------------------------- ---- -- -- - - --
Maximum deferred sales
charge (load), as % of
redemption proceeds None 4.00 1.00 None None None
------------------------------- ------ ---- ---- - - --
Redemption/exchange fee on
shares owned less than 15
days, as % of redemption
proceeds 2.00 2.00 2.00 2.00 2.00 2.00
------------------------------- ------ ---- ---- ----- ----- ----
Account Maintenance Fee
(annually, for fund account
balances below $10,000 and
subject to certain exceptions) $ 20 $20 $20 None None $20
------------------------------- ------- ---- ---- ----- ----- ----
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a % of the
value of your investment)
A B C R INST S
--------- --------- --------- --------- ---------- ----------
Management fee 0.70 0.70 0.70 0.70 0.70 0.70
---------------------------- ---- ---- ---- ---- ---- ----
Distribution/service
(12b-1) fees 0.25 0.99 1.00 0.50 None None
---------------------------- ---- ---- ---- ---- ----- -----
Other expenses 0.82 1.02 0.80 0.85 0.62 0.82
---------------------------- ---- ---- ---- ---- ----- -----
Acquired funds fees and
expenses 0.03 0.03 0.03 0.03 0.03 0.03
---------------------------- ---- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES 1.80 2.74 2.53 2.08 1.35 1.55
---------------------------- ---- ---- ---- ---- ----- -----
Less fee waiver/expense
reimbursement 0.25 0.44 0.23 0.28 0.05 0.15
---------------------------- ---- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES AFTER FEE WAIVER
AND/OR EXPENSE REIMBURSE-
MENT 1.55 2.30 2.30 1.80 1.30 1.40
---------------------------- ---- ---- ---- ---- ----- -----
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.46%, 2.21%, 2.21%, 1.71%, 1.21% and 1.31%; and
for the period October 1, 2014 through January 31, 2015 at ratios no higher
than 1.52%, 2.27%, 2.27%, 1.77%, 1.27% and 1.37% (in each instance, excluding
extraordinary expenses, taxes, brokerage, interest expenses, and acquired funds
fees and expenses) for Class A, Class B, Class C, Class R, Institutional Class
and Class S, respectively. These agreements may only be terminated with the
consent of the fund's Board.
EXAMPLE
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the fund's operating expenses
(including one year of capped expenses in each period) remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
17
PROSPECTUS DWS Global Equity Fund
YEARS A B C R INST S
------- -------- -------- -------- -------- -------- --------
1 $ 724 $ 633 $ 333 $ 183 $ 132 $ 143
-- ----- ----- ----- ----- ----- -----
3 1,086 1,109 766 625 423 475
-- ----- ----- ----- ----- ----- -----
5 1,472 1,611 1,325 1,093 735 831
-- ----- ----- ----- ----- ----- -----
10 2,550 2,603 2,848 2,388 1,620 1,833
-- ----- ----- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A B C R INST S
------- -------- -------- -------- -------- -------- --------
1 $ 724 $ 233 $ 233 $ 183 $ 132 $ 143
-- ----- ----- ----- ----- ----- -----
3 1,086 809 766 625 423 475
-- ----- ----- ----- ----- ----- -----
5 1,472 1,411 1,325 1,093 735 831
-- ----- ----- ----- ----- ----- -----
10 2,550 2,603 2,848 2,388 1,620 1,833
-- ----- ----- ----- ----- ----- -----
Class B converts to Class A after six years; the Class B Example reflects Class
A fees after the conversion.
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may mean higher taxes if you are
investing in a taxable account. These costs are not reflected in annual fund
operating expenses or in the expense example, and can affect the fund's
performance.
Portfolio turnover rate for fiscal year 2013: 124%.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
its assets, determined at the time of purchase, in equity securities and other
securities with equity characteristics. For purposes of the fund's 80%
investment policy, the term "assets" means the fund's net assets, plus the
amount of any borrowings for investment purposes. In addition to common stock,
other securities with equity characteristics include preferred stock,
convertible securities, warrants and exchange-traded funds (ETFs). Although the
fund can invest in companies of any size and from any country, it invests
mainly in common stocks of established companies in countries with developed
economies.
The fund may also invest a portion of its assets (typically not more than 35%
of its net assets) in securities of companies located in emerging markets, such
as those of many countries in Latin America, the Middle East, Eastern Europe,
Asia and Africa.
The fund may also invest up to 20% of its assets in cash equivalents and US
investment-grade fixed-income securities.
MANAGEMENT PROCESS. Portfolio management aims to add value through stock
selection. In choosing securities, portfolio management employs a bottom-up
selection process to identify companies it believes are well-positioned for
growth. Portfolio management utilizes a proprietary investment process designed
to identify attractive investments utilizing proprietary research, including
regional and sector research, conducted by in-house analysts. The investment
process also takes into consideration various valuation metrics to assess the
attractiveness of stocks and assists portfolio management in devising
allocations among investable securities.
DERIVATIVES. Portfolio management generally may use futures contracts, which
are a type of derivative (a contract whose value is based on, for example,
indices, currencies or securities), as a substitute for direct investment in a
particular asset class or to keep cash on hand to meet shareholder redemptions
or other needs while maintaining exposure to the stock market.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market
18
PROSPECTUS DWS Global Equity Fund
swings in such a targeted country, countries or regions are likely to have a
greater effect on fund performance than they would in a more geographically
diversified fund.
GROWTH INVESTING RISK. As a category, growth stocks may underperform value
stocks (and the stock market as a whole) over any period of time. Because the
prices of growth stocks are based largely on the expectation of future
earnings, growth stock prices can decline rapidly and significantly in reaction
to negative news about such factors as earnings, the economy, political
developments, or other news.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
ETF RISK. Because ETFs trade on a securities exchange, their shares may trade
at a premium or discount to their net asset value. An ETF is subject to the
risks of the assets in which it invests as well as those of the investment
strategy it follows. The fund incurs brokerage costs when it buys and sells
shares of an ETF and also bears its proportionate share of the ETF's fees and
expenses, which are passed through to ETF shareholders.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
SMALL COMPANY RISK. Small company stocks tend to be more volatile than
medium-sized or large company stocks. Because stock analysts are less likely to
follow small companies, less information about them is available to investors.
Industry-wide reversals may have a greater impact on small companies, since
they may lack the financial resources of larger companies. Small company stocks
are typically less liquid than large company stocks.
CREDIT RISK. The fund's performance could be hurt if an issuer of a security
suffers an adverse change in financial condition that results in the issuer not
making timely payments of interest or principal, a security downgrade or
inability to meet a financial obligation.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
PAST PERFORMANCE
How a fund's returns vary from year to year can give an idea of its risk; so
can comparing fund performance to overall market performance (as measured by an
appropriate market index). Past performance may not indicate future results.
All performance figures below assume that dividends were reinvested. For more
recent performance figures, go to dws-investments.com (the Web site does not
form a part of this prospectus) or call the phone number included in this
prospectus.
The performance figures for Class S shares prior to its inception date is based
on the historical performance of the Institutional Class, adjusted to reflect
the higher gross total annual operating expenses of Class S.
Prior to July 12, 2013, the fund had a sub-advisor and a different management
team that operated with a different investment strategy. Performance would have
been different if the fund's current investment strategy had been in effect.
CALENDAR YEAR TOTAL RETURNS (%) (Class A)
These year-by-year returns do not include sales charges, if any, and would be
lower if they did. Returns for other classes were different and are not shown
here.
19
PROSPECTUS DWS Global Equity Fund
[BAR GRAPHIC OMITTED HERE]
[BAR GRAPHIC DATA]
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
16.25 13.15 24.81 15.87 -48.34 28.81 10.76 -12.74 17.12 18.72
Best Quarter: 20.68%, Q2 2009 Worst Quarter: -27.15%, Q3 2008
AVERAGE ANNUAL TOTAL RETURNS
(For periods ended 12/31/2013 expressed as a %)
After-tax returns (which are shown only for Class A and would be different for
other classes) reflect the historical highest individual federal income tax
rates, but do not reflect any state or local taxes. Your actual after-tax
returns may be different. After-tax returns are not relevant to shares held in
an IRA, 401(k) or other tax-advantaged investment plan.
CLASS 1 5 10
INCEPTION YEAR YEARS YEARS
----------- ---------- ---------- ---------
CLASS A before tax 2/28/2001 11.89 10.28 4.83
--------------------------- --------- ----- ----- ----
After tax on
distributions 11.60 10.05 3.57
After tax on distribu-
tions and sale of fund
shares 8.06 9.01 4.00
--------------------------- --------- ----- ----- ----
CLASS B before tax 2/28/2001 14.78 10.63 4.66
--------------------------- --------- ----- ----- ----
CLASS C before tax 2/28/2001 17.78 10.72 4.67
--------------------------- --------- ----- ----- ----
INST CLASS before tax 5/15/1995 19.10 12.05 5.84
--------------------------- --------- ----- ----- ----
CLASS R before tax 7/1/2003 18.45 11.37 5.27
--------------------------- --------- ----- ----- ----
CLASS S before tax 2/28/2005 19.00 11.87 5.71
--------------------------- --------- ----- ----- ----
MSCI ALL COUNTRY WORLD
INDEX (reflects no deduc-
tion for fees or
expenses) 22.80 14.92 7.17
--------------------------- --------- ----- ----- ----
MSCI EAFE INDEX
(reflects no deduction for
fees or expenses) 22.78 12.44 6.91
--------------------------- --------- ----- ----- ----
On July 12, 2013, the MSCI All Country World Index replaced the MSCI EAFE Index
as the fund's primary benchmark index because the Advisor believes that it more
accurately reflects the fund's investment strategy.
MANAGEMENT
INVESTMENT ADVISOR
Deutsche Investment Management Americas Inc.
PORTFOLIO MANAGER(S)
NILS E. ERNST, PHD, DIRECTOR. Portfolio Manager of the fund. Began managing the
fund in 2013.
MARTIN BERBERICH, CFA, DIRECTOR. Portfolio Manager of the fund. Began managing
the fund in 2013.
SEBASTIAN P. WERNER, PHD, VICE PRESIDENT. Portfolio Manager of the fund. Began
managing the fund in 2013.
PURCHASE AND SALE OF FUND SHARES
MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC
UGMAS/ INVESTMENT
NON-IRA IRAS UTMAS PLANS
----------------- -------------- -------- -------------------
A B C 1,000 500 1,000 500
------- ----- --- ----- ---
R None None None None
------- ----- ----- ----- ----
INST 1,000,000 N/A N/A N/A
------- --------- ----- ----- ----
S 2,500 1,000 1,000 1,000
------- --------- ----- ----- -----
For participants in all group retirement plans, and in certain fee-based and
wrap programs approved by the Advisor, there is no minimum initial investment
and no minimum additional investment for Class A, C and S shares. For Section
529 college savings plans, there is no minimum initial investment and no
minimum additional investment for Class S shares. In certain instances, the
minimum initial investment may be waived for Institutional Class shares. There
is no minimum additional investment for Institutional Class shares and Class R
shares. Because Class B shares are closed to new investment, existing Class B
shareholders may purchase Class A and C shares with a minimum initial
investment of $50. The minimum additional investment in all other instances is
$50.
TO PLACE ORDERS
MAIL New Accounts DWS Investments, PO Box 219356
Kansas City, MO 64121-9356
Additional Investments DWS Investments, PO Box 219154
Kansas City, MO 64121-9154
Exchanges and DWS Investments, PO Box 219557
Redemptions Kansas City, MO 64121-9557
EXPEDITED MAIL DWS Investments, 210 West 10th Street
Kansas City, MO 64105-1614
WEB SITE dws-investments.com
TELEPHONE (800) 728-3337
M - F 8 a.m. - 8 p.m. ET
TDD LINE (800) 972-3006, M - F 8 a.m. - 8 p.m. ET
Initial investments must be sent by mail. You can make additional investments
or sell shares of the fund on any business day by visiting our Web site, by
mail, or by telephone. The fund is generally open on days when the New York
Stock Exchange is open for regular trading.
Class B shares are closed to new purchases, except for exchanges and the
reinvestment of dividends or other distributions. Institutional Class shares
are generally available only to qualified institutions. Class R shares are
generally available only to certain retirement plans. Class S shares are only
available to a limited group of investors.
TAX INFORMATION
The fund's distributions are generally taxable to you as ordinary income or
capital gains, except when your investment is in an IRA, 401(k), or other
tax-deferred investment plan. Any withdrawals you make from such tax-deferred
investment plans, however, may be taxable to you.
20
PROSPECTUS DWS Global Equity Fund
PAYMENTS TO BROKER-DEALERS AND
OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and its related companies may pay the
intermediary for the sale of fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary's Web site for more information.
21
PROSPECTUS DWS Global Equity Fund
Deutsche Asset
& Wealth Management
[DB Logo]
DWS Global Small Cap Fund
(formerly DWS Global Small Cap Growth Fund)
INVESTMENT OBJECTIVE
The fund seeks above-average capital appreciation over the long term.
FEES AND EXPENSES OF THE FUND
These are the fees and expenses you may pay when you buy and hold shares. You
may qualify for sales charge discounts if you and your immediate family invest,
or agree to invest in the future, at least $50,000 in DWS funds. More
information about these and other discounts is available from your financial
professional and in Choosing a Share Class (p. 58) and Purchase and Redemption
of Shares in the fund's Statement of Additional Information (SAI) (p. II-15).
SHAREHOLDER FEES (paid directly from your investment)
A B C INST S
---------- --------- --------- ---------- ---------
Maximum sales charge (load)
imposed on purchases, as % of
offering price 5.75 None None None None
------------------------------------ ---- -- -- - --
Maximum deferred sales charge
(load), as % of redemption proceeds None 4.00 1.00 None None
------------------------------------ ------ ---- ---- - --
Redemption/exchange fee on shares
owned less than 15 days, as % of
redemption proceeds 2.00 2.00 2.00 2.00 2.00
------------------------------------ ------ ---- ---- ----- ----
Account Maintenance Fee (annually,
for fund account balances below
$10,000 and subject to certain
exceptions) $ 20 $20 $20 None $20
------------------------------------ ------- ---- ---- ----- ----
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a % of the
value of your investment)
A B C INST S
--------- --------- --------- ---------- ----------
Management fee 0.92 0.92 0.92 0.92 0.92
---------------------------- ---- ---- ---- ---- ----
Distribution/service
(12b-1) fees 0.24 1.00 1.00 None None
---------------------------- ---- ---- ---- ----- -----
Other expenses 0.39 0.46 0.40 0.29 0.33
---------------------------- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES 1.55 2.38 2.32 1.21 1.25
---------------------------- ---- ---- ---- ----- -----
EXAMPLE
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
YEARS A B C INST S
------- -------- -------- -------- -------- --------
1 $ 724 $ 641 $ 335 $ 123 $ 127
-- ----- ----- ----- ----- -----
3 1,036 1,042 724 384 397
-- ----- ----- ----- ----- -----
5 1,371 1,470 1,240 665 686
-- ----- ----- ----- ----- -----
10 2,314 2,320 2,656 1,466 1,511
-- ----- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A B C INST S
------- -------- -------- -------- -------- --------
1 $ 724 $ 241 $ 235 $ 123 $ 127
-- ----- ----- ----- ----- -----
3 1,036 742 724 384 397
-- ----- ----- ----- ----- -----
5 1,371 1,270 1,240 665 686
-- ----- ----- ----- ----- -----
10 2,314 2,320 2,656 1,466 1,511
-- ----- ----- ----- ----- -----
Class B converts to Class A after six years; the Example for Class B reflects
Class A fees after the conversion.
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may mean higher taxes if you are
investing in a taxable account. These costs are not reflected in annual fund
operating expenses or in the expense example, and can affect the fund's
performance.
Portfolio turnover rate for fiscal year 2013: 40%.
22
PROSPECTUS DWS Global Small Cap Fund
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. The fund invests at least 80% of net assets, plus the amount
of any borrowings for investment purposes, in common stocks and other equities
of small companies throughout the world (companies with market values similar
to the smallest 30% of the aggregate market capitalization of the S&P Developed
Broad Market Index). Companies in which the fund invests typically have a
market capitalization of between $500 million and $5 billion at the time of
purchase. As part of the investment process the fund may own stocks even if
they are outside this market capitalization range. While the market
capitalization range of the S&P Developed Broad Market Index changes throughout
the year, as of the most recent reconstitution date of the index (March 20,
2014), companies in the index had a median market capitalization of
approximately $1.215 billion.
The fund may invest up to 20% of total assets in common stocks and other
equities of large companies or in debt securities, including up to 5% of net
assets in junk bonds (grade BB/Ba and below).
MANAGEMENT PROCESS. While the fund may invest in securities of any country,
portfolio management generally focuses on countries with developed economies
(including the US). In choosing securities, portfolio management uses a
combination of three analytical disciplines:
o BOTTOM-UP RESEARCH. Portfolio management looks for individual companies that
it believes have a history of above average growth, strong competitive
positioning, attractive prices relative to potential growth, sound
financial strength and effective management, among other factors.
o GROWTH ORIENTATION. Portfolio management generally looks for companies that
it believes have above-average potential for sustainable growth of revenue
or earnings and whose market value appears reasonable in light of their
business prospects.
o ANALYSIS OF GLOBAL THEMES. Portfolio management considers global economic
outlooks, seeking to identify industries and companies that are likely to
benefit from social, political and economic changes.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
SMALL COMPANY RISK. Small company stocks tend to be more volatile than
medium-sized or large company stocks. Because stock analysts are less likely to
follow small companies, less information about them is available to investors.
Industry-wide reversals may have a greater impact on small companies, since
they may lack the financial resources of larger companies. Small company stocks
are typically less liquid than large company stocks.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
23
PROSPECTUS DWS Global Small Cap Fund
GROWTH INVESTING RISK. As a category, growth stocks may underperform value
stocks (and the stock market as a whole) over any period of time. Because the
prices of growth stocks are based largely on the expectation of future
earnings, growth stock prices can decline rapidly and significantly in reaction
to negative news about such factors as earnings, the economy, political
developments, or other news.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
PAST PERFORMANCE
How a fund's returns vary from year to year can give an idea of its risk; so
can comparing fund performance to overall market performance (as measured by an
appropriate market index). Past performance may not indicate future results.
All performance figures below assume that dividends were reinvested. For more
recent performance figures, go to dws-investments.com (the Web site does not
form a part of this prospectus) or call the phone number included in this
prospectus.
CALENDAR YEAR TOTAL RETURNS (%) (Class A)
These year-by-year returns do not include sales charges, if any, and would be
lower if they did. Returns for other classes were different and are not shown
here.
[BAR GRAPHIC OMITTED HERE]
[BAR GRAPHIC DATA]
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
23.28 17.79 21.61 8.40 -49.66 47.08 26.51 -10.48 14.76 34.36
Best Quarter: 30.09%, Q2 2009 Worst Quarter: -28.26%, Q4 2008
AVERAGE ANNUAL TOTAL RETURNS
(For periods ended 12/31/2013 expressed as a %)
After-tax returns (which are shown only for Class A and would be different for
other classes) reflect the historical highest individual federal income tax
rates, but do not reflect any state or local taxes. Your actual after-tax
returns may be different. After-tax returns are not relevant to shares held in
an IRA, 401(k) or other tax-advantaged investment plan. Index comparisons for
Institutional Class shares began on 8/31/2008.
CLASS 1 5 10
INCEPTION YEAR YEARS YEARS
----------- ---------- ---------- ---------
CLASS A before tax 4/16/1998 26.63 19.34 8.84
------------------------- --------- ----- ----- ----
After tax on
distributions 24.88 18.69 8.22
After tax on distribu-
tions and sale of fund
shares 19.78 17.11 7.80
------------------------- --------- ----- ----- ----
CLASS B before tax 4/16/1998 30.34 19.72 8.65
------------------------- --------- ----- ----- ----
CLASS C before tax 4/16/1998 33.36 19.85 8.67
------------------------- --------- ----- ----- ----
CLASS S before tax 9/10/1991 34.71 21.10 9.80
------------------------- --------- ----- ----- ----
S&P DEVELOPED
SMALLCAP INDEX (reflects
no deduction for fees,
expenses or taxes) 32.58 19.95 9.97
------------------------- --------- ----- ----- ----
CLASS 1 5 SINCE
INCEPTION YEAR YEARS INCEPTION
----------- ---------- ---------- ----------
INST CLASS before tax 8/26/2008 34.79 21.24 9.37
------------------------- --------- ----- ----- ----
S&P DEVELOPED
SMALLCAP INDEX (reflects
no deduction for fees,
expenses or taxes) 32.58 19.95 9.18
------------------------- --------- ----- ----- ----
MANAGEMENT
INVESTMENT ADVISOR
Deutsche Investment Management Americas Inc.
PORTFOLIO MANAGER(S)
JOSEPH AXTELL, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began
managing the fund in 2002.
24
PROSPECTUS DWS Global Small Cap Fund
PURCHASE AND SALE OF FUND SHARES
MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC
UGMAS/ INVESTMENT
NON-IRA IRAS UTMAS PLANS
------------ -------------- -------- ------------------
A B C 1,000 500 1,000 500
------- ----- --- ----- ---
INST 1,000,000 N/A N/A N/A
------- --------- ---- ----- ----
S 2,500 1,000 1,000 1,000
------- --------- ----- ----- -----
For participants in all group retirement plans, and in certain fee-based and
wrap programs approved by the Advisor, there is no minimum initial investment
and no minimum additional investment for Class A, C and S shares. For Section
529 college savings plans, there is no minimum initial investment and no
minimum additional investment for Class S shares. In certain instances, the
minimum initial investment may be waived for Institutional Class shares. There
is no minimum additional investment for Institutional Class shares. Because
Class B shares are closed to new investment, existing Class B shareholders may
purchase Class A and C shares with a minimum initial investment of $50. The
minimum additional investment in all other instances is $50.
TO PLACE ORDERS
MAIL New Accounts DWS Investments, PO Box 219356
Kansas City, MO 64121-9356
Additional Investments DWS Investments, PO Box 219154
Kansas City, MO 64121-9154
Exchanges and DWS Investments, PO Box 219557
Redemptions Kansas City, MO 64121-9557
EXPEDITED MAIL DWS Investments, 210 West 10th Street
Kansas City, MO 64105-1614
WEB SITE dws-investments.com
TELEPHONE (800) 728-3337
M - F 8 a.m. - 8 p.m. ET
TDD LINE (800) 972-3006, M - F 8 a.m. - 8 p.m. ET
Initial investments must be sent by mail. You can make additional investments
or sell shares of the fund on any business day by visiting our Web site, by
mail, or by telephone. The fund is generally open on days when the New York
Stock Exchange is open for regular trading.
Class B shares are closed to new purchases, except for exchanges and the
reinvestment of dividends or other distributions. Institutional Class shares
are generally available only to qualified institutions. Class S shares are only
available to a limited group of investors.
TAX INFORMATION
The fund's distributions are generally taxable to you as ordinary income or
capital gains, except when your investment is in an IRA, 401(k), or other
tax-deferred investment plan. Any withdrawals you make from such tax-deferred
investment plans, however, may be taxable to you.
PAYMENTS TO BROKER-DEALERS AND
OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and its related companies may pay the
intermediary for the sale of fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary's Web site for more information.
25
PROSPECTUS DWS Global Small Cap Fund
Deutsche Asset
& Wealth Management
[DB Logo]
DWS Latin America Equity Fund
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
FEES AND EXPENSES OF THE FUND
These are the fees and expenses you may pay when you buy and hold shares. You
may qualify for sales charge discounts if you and your immediate family invest,
or agree to invest in the future, at least $50,000 in DWS funds. More
information about these and other discounts is available from your financial
professional and in Choosing a Share Class (p. 58) and Purchase and Redemption
of Shares in the fund's Statement of Additional Information (SAI) (p. II-15).
SHAREHOLDER FEES (paid directly from your investment)
A B C S
---------- --------- --------- ---------
Maximum sales charge (load) imposed on
purchases, as % of offering price 5.75 None None None
----------------------------------------- ---- -- -- --
Maximum deferred sales charge (load), as
% of redemption proceeds None 4.00 1.00 None
----------------------------------------- ------ ---- ---- --
Redemption/exchange fee on shares owned
less than 15 days, as % of redemption
proceeds 2.00 2.00 2.00 2.00
----------------------------------------- ------ ---- ---- ----
Account Maintenance Fee (annually, for
fund account balances below $10,000 and
subject to certain exceptions) $ 20 $20 $20 $20
----------------------------------------- ------- ---- ---- ----
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a % of the
value of your investment)
A B C S
--------- --------- --------- ----------
Management fee 1.14 1.14 1.14 1.14
--------------------------------------- ---- ---- ---- ----
Distribution/service
(12b-1) fees 0.23 0.99 1.00 None
--------------------------------------- ---- ---- ---- -----
Other expenses 0.47 0.58 0.49 0.37
--------------------------------------- ---- ---- ---- -----
TOTAL ANNUAL FUND OPERATING EXPENSES 1.84 2.71 2.63 1.51
--------------------------------------- ---- ---- ---- -----
Less fee waiver/expense reimbursement 0.12 0.24 0.16 0.04
--------------------------------------- ---- ---- ---- -----
TOTAL ANNUAL FUND OPERATING EXPENSES
AFTER FEE WAIVER/EXPENSE REIMBURSEMENT 1.72 2.47 2.47 1.47
--------------------------------------- ---- ---- ---- -----
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.52%, 2.27%, 2.27% and 1.27%; and for the period
from October 1, 2014 through January 31, 2015, at ratios no higher than 1.72%,
2.47%, 2.47 and 1.47% (in each instance, excluding extraordinary expenses,
taxes, brokerage and interest expenses) for Classes A, B,C and S, respectively.
These agreements may only be terminated with the consent of the fund's Board.
EXAMPLE
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the fund's operating expenses
(including one year of capped expenses in each period) remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
YEARS A B C S
------- -------- -------- -------- --------
1 $ 740 $ 650 $ 350 $ 150
-- ----- ----- ----- -----
3 1,109 1,119 802 473
-- ----- ----- ----- -----
5 1,503 1,613 1,381 820
-- ----- ----- ----- -----
10 2,600 2,621 2,952 1,798
-- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A B C S
------- -------- -------- -------- --------
1 $ 740 $ 250 $ 250 $ 150
-- ----- ----- ----- -----
3 1,109 819 802 473
-- ----- ----- ----- -----
5 1,503 1,413 1,381 820
-- ----- ----- ----- -----
10 2,600 2,621 2,952 1,798
-- ----- ----- ----- -----
26
PROSPECTUS DWS Latin America Equity Fund
Class B converts to Class A after six years; the Example for Class B reflects
Class A fees after the conversion.
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may mean higher taxes if you are
investing in a taxable account. These costs are not reflected in annual fund
operating expenses or in the expense example, and can affect the fund's
performance.
Portfolio turnover rate for fiscal year 2013: 156%.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
net assets, plus the amount of any borrowings for investment purposes, in Latin
American common stocks and other equities (equities that are traded mainly on
Latin American markets, issued or guaranteed by a Latin American government or
issued by a company organized under the laws of a Latin American country or any
company with more than half of its business in Latin America). The fund defines
Latin America as Mexico, Central America, South America and the Spanish-speaking
islands of the Caribbean.
The fund may invest up to 20% of net assets in the equity securities of US and
other non-Latin American issuers and in debt securities including junk bonds
(grade BB/Ba and below). The fund may also invest as much as 10% of net assets
in debt securities rated B or lower.
MANAGEMENT PROCESS. Although the fund may invest in any Latin American country,
it expects to invest primarily in common stocks of established companies in
Argentina, Brazil, Chile, Colombia, Mexico, Panama and Peru.
In choosing securities, portfolio management uses a combination of three
analytical disciplines:
o BOTTOM-UP RESEARCH. Portfolio management looks for individual companies that
it believes have a history of above-average growth, strong competitive
positioning, attractive prices relative to potential growth, sound
financial strength and effective management, among other factors.
o GROWTH ORIENTATION. Portfolio management generally looks for companies that
it believes have above-average potential for sustainable growth of revenue
or earnings and whose market value appears reasonable in light of their
business prospects.
o ANALYSIS OF REGIONAL THEMES. Portfolio management looks for significant
social, economic, industrial and demographic changes, seeking to identify
stocks that may benefit from them.
DERIVATIVES. Portfolio management generally may use futures contracts, which
are a type of derivative (a contract whose value is based on, for example,
indices, currencies or securities) as a substitute for direct investment in a
particular asset class or to keep cash on hand to meet shareholder redemptions.
In addition, portfolio management generally may use forward currency contracts
to hedge the fund's exposure to changes in foreign currency exchange rates on
its foreign currency denominated portfolio holdings or to facilitate
transactions in foreign currency denominated securities. Portfolio management
generally may use structured notes to gain exposure to certain foreign markets
that may not permit direct investment.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
27
PROSPECTUS DWS Latin America Equity Fund
NON-DIVERSIFICATION RISK. The fund is classified as non-diversified under the
Investment Company Act of 1940, as amended. This means that the fund may invest
in securities of relatively few issuers. Thus, the performance of one or a
small number of portfolio holdings can affect overall performance.
GROWTH INVESTING RISK. As a category, growth stocks may underperform value
stocks (and the stock market as a whole) over any period of time. Because the
prices of growth stocks are based largely on the expectation of future
earnings, growth stock prices can decline rapidly and significantly in reaction
to negative news about such factors as earnings, the economy, political
developments, or other news.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
ACTIVE TRADING RISK. The fund may trade actively. This could raise transaction
costs (thus lowering returns) and could mean increased taxable distributions to
shareholders and distributions that will be taxable to shareholders at higher
federal income tax rates.
PAST PERFORMANCE
How a fund's returns vary from year to year can give an idea of its risk; so
can comparing fund performance to overall market performance (as measured by an
appropriate market index). Past performance may not indicate future results.
All performance figures below assume that dividends were reinvested. For more
recent performance figures, go to dws-investments.com (the Web site does not
form a part of this prospectus) or call the phone number included in this
prospectus.
CALENDAR YEAR TOTAL RETURNS (%) (Class A)
These year-by-year returns do not include sales charges, if any, and would be
lower if they did. Returns for other classes were different and are not shown
here.
28
PROSPECTUS DWS Latin America Equity Fund
[BAR GRAPHIC OMITTED HERE]
[BAR GRAPHIC DATA]
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
33.79 52.14 41.81 44.65 -55.95 92.20 10.99 -22.65 13.28 -8.19
Best Quarter: 34.03%, Q2 2009 Worst Quarter: -36.59%, Q4 2008
AVERAGE ANNUAL TOTAL RETURNS
(For periods ended 12/31/2013 expressed as a %)
After-tax returns (which are shown only for Class A and would be different for
other classes) reflect the historical highest individual federal income tax
rates, but do not reflect any state or local taxes. Your actual after-tax
returns may be different. After-tax returns are not relevant to shares held in
an IRA, 401(k) or other tax-advantaged investment plan.
CLASS 1 5 10
INCEPTION YEAR YEARS YEARS
----------- ----------- ---------- ----------
CLASS A before tax 5/29/2001 -13.47 10.10 11.52
-------------------------- --------- ------- ----- -----
After tax on
distributions -14.36 8.43 9.89
After tax on distribu-
tions and sale of fund
shares -7.52 9.03 10.43
-------------------------- --------- ------- ----- -----
CLASS B before tax 5/29/2001 -11.41 10.39 11.28
-------------------------- --------- ------- ----- -----
CLASS C before tax 5/29/2001 -8.85 10.52 11.29
-------------------------- --------- ------- ----- -----
CLASS S before tax 12/8/1992 -7.93 11.73 12.48
-------------------------- --------- ------- ----- -----
MSCI EM (EMERGING
MARKETS) LATIN AMERICA
INDEX (reflects no deduc-
tion for fees or
expenses) -13.36 12.15 14.52
-------------------------- --------- ------- ----- -----
MANAGEMENT
INVESTMENT ADVISOR
Deutsche Investment Management Americas Inc.
PORTFOLIO MANAGER(S)
LUIZ RIBEIRO, CFA, DIRECTOR. Lead Portfolio Manager of the fund. Began managing
the fund in 2013.
DANILO PEREIRA, VICE PRESIDENT. Portfolio Manager of the fund. Began managing
the fund in 2013.
THOMAS U. PETSCHNIGG, CFA, VICE PRESIDENT. Portfolio Manager of the fund. Began
managing the fund in 2013.
PURCHASE AND SALE OF FUND SHARES
MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC
UGMAS/ INVESTMENT
NON-IRA IRAS UTMAS PLANS
--------- -------- -------- -----------
A B C 1,000 500 1,000 500
------- ----- --- ----- ---
S 2,500 1,000 1,000 1,000
------- ----- ----- ----- -----
For participants in all group retirement plans, and in certain fee-based and
wrap programs approved by the Advisor, there is no minimum initial investment
and no minimum additional investment for Class A, C and S shares. For Section
529 college savings plans, there is no minimum initial investment and no
minimum additional investment for Class S shares. Because Class B shares are
closed to new investment, existing Class B shareholders may purchase Class A
and C shares with a minimum initial investment of $50. The minimum additional
investment in all other instances is $50.
TO PLACE ORDERS
MAIL New Accounts DWS Investments, PO Box 219356
Kansas City, MO 64121-9356
Additional Investments DWS Investments, PO Box 219154
Kansas City, MO 64121-9154
Exchanges and DWS Investments, PO Box 219557
Redemptions Kansas City, MO 64121-9557
EXPEDITED MAIL DWS Investments, 210 West 10th Street
Kansas City, MO 64105-1614
WEB SITE dws-investments.com
TELEPHONE (800) 728-3337
M - F 8 a.m. - 8 p.m. ET
TDD LINE (800) 972-3006, M - F 8 a.m. - 8 p.m. ET
Initial investments must be sent by mail. You can make additional investments
or sell shares of the fund on any business day by visiting our Web site, by
mail, or by telephone. The fund is generally open on days when the New York
Stock Exchange is open for regular trading.
Class B shares are closed to new purchases, except for exchanges and the
reinvestment of dividends or other distributions. Class S shares are only
available to a limited group of investors.
TAX INFORMATION
The fund's distributions are generally taxable to you as ordinary income or
capital gains, except when your investment is in an IRA, 401(k), or other
tax-deferred investment plan. Any withdrawals you make from such tax-deferred
investment plans, however, may be taxable to you.
PAYMENTS TO BROKER-DEALERS AND
OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and its related companies may pay the
intermediary for the sale of fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary's Web site for more information.
29
PROSPECTUS DWS Latin America Equity Fund
Deutsche Asset
& Wealth Management
[DB Logo]
DWS World Dividend Fund
INVESTMENT OBJECTIVE
The fund seeks total return, emphasizing both current income and capital
appreciation.
FEES AND EXPENSES OF THE FUND
These are the fees and expenses you may pay when you buy and hold shares. You
may qualify for sales charge discounts if you and your immediate family invest,
or agree to invest in the future, at least $50,000 in DWS funds. More
information about these and other discounts is available from your financial
professional and in Choosing a Share Class (p. 58) and Purchase and Redemption
of Shares in the fund's Statement of Additional Information (SAI) (p. II-15).
SHAREHOLDER FEES (paid directly from your investment)
A B C INST S
---------- --------- --------- ---------- ---------
Maximum sales charge (load)
imposed on purchases, as % of
offering price 5.75 None None None None
------------------------------------ ---- -- -- - --
Maximum deferred sales charge
(load), as % of redemption proceeds None 4.00 1.00 None None
------------------------------------ ------ ---- ---- - --
Redemption/exchange fee on shares
owned less than 15 days, as % of
redemption proceeds 2.00 2.00 2.00 2.00 2.00
------------------------------------ ------ ---- ---- ----- ----
Account Maintenance Fee (annually,
for fund account balances below
$10,000 and subject to certain
exceptions) $ 20 $20 $20 None $20
------------------------------------ ------- ---- ---- ----- ----
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a % of the
value of your investment)
A B C INST S
--------- --------- --------- ---------- ----------
Management fee 0.66 0.66 0.66 0.66 0.66
----------------------------------- ---- ---- ---- ---- ----
Distribution/service (12b-1) fees 0.24 0.99 1.00 None None
----------------------------------- ---- ---- ---- ----- -----
Other expenses 0.38 0.92 0.34 0.30 0.44
----------------------------------- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES 1.28 2.57 2.00 0.96 1.10
----------------------------------- ---- ---- ---- ----- -----
Less fee waiver/expense reimburse-
ment 0.00 0.47 0.00 0.00 0.00
----------------------------------- ---- ---- ---- ----- -----
TOTAL ANNUAL FUND OPERATING
EXPENSES AFTER FEE WAIVER AND/OR
EXPENSE REIMBURSEMENT 1.28 2.10 2.00 0.96 1.10
----------------------------------- ---- ---- ---- ----- -----
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 2.03%; and for the period October 1, 2014 through
January 31, 2015 at a ratio no higher than 2.10% (in each instance, excluding
extraordinary expenses, taxes, brokerage and interest expenses) for Class B.
The agreement may only be terminated with the consent of the fund's Board.
EXAMPLE
This Example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the fund's operating expenses
(including one year of capped expenses for Class B) remain the same. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
30
PROSPECTUS DWS World Dividend Fund
YEARS A B C INST S
------- -------- -------- -------- -------- --------
1 $ 698 $ 613 $ 303 $ 98 $ 112
-- ----- ----- ----- ----- -----
3 958 1,055 627 306 350
-- ----- ----- ----- ----- -----
5 1,237 1,523 1,078 531 606
-- ----- ----- ----- ----- -----
10 2,031 2,258 2,327 1,178 1,340
-- ----- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A B C INST S
------- -------- -------- -------- -------- --------
1 $ 698 $ 213 $ 203 $ 98 $ 112
-- ----- ----- ----- ----- -----
3 958 755 627 306 350
-- ----- ----- ----- ----- -----
5 1,237 1,323 1,078 531 606
-- ----- ----- ----- ----- -----
10 2,031 2,258 2,327 1,178 1,340
-- ----- ----- ----- ----- -----
Class B converts to Class A after six years; the Example for Class B reflects
Class A fees after the conversion.
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may mean higher taxes if you are
investing in a taxable account. These costs are not reflected in annual fund
operating expenses or in the expense example, and can affect the fund's
performance.
Portfolio turnover rate for fiscal year 2013: 28%.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Normally, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in dividend paying
stocks. The fund will generally invest in at least three different countries
and will normally invest at least 40% of net assets in securities issued by
foreign based companies.
The fund's investments will include primarily common stocks issued by US and
foreign based companies and may also include preferred stocks and other equity
securities such as convertible securities and warrants.
MANAGEMENT PROCESS.
Although the fund may invest in companies of any size and from any country, it
will invest mainly in common stocks of established companies in countries with
developed economies. The fund will seek income by investing in dividend paying
stocks. Portfolio management looks for companies it believes are fundamentally
strong and that it expects to have high, sustainable dividend yields and stable
cash flows.
In choosing securities, portfolio management uses a combination of analytical
disciplines:
o BOTTOM-UP RESEARCH. Portfolio management looks for individual companies that
it believes have a history of above-average growth, strong competitive
positioning, attractive prices relative to potential growth, sound
financial strength and effective management, among other factors.
o GROWTH ORIENTATION. Portfolio management generally looks for companies that
it believes have above-average potential for sustainable growth of revenue
or earnings and whose market value appears reasonable in light of their
business prospects.
o ANALYSIS OF REGIONAL THEMES. Portfolio management looks for significant
social, economic, industrial and demographic changes, seeking to identify
stocks that may benefit from them.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
DIVIDEND-PAYING STOCK RISK. As a category, dividend-paying stocks may
underperform non-dividend paying stocks (and the stock market as a whole) over
any period of time. In addition, issuers of dividend-paying stocks may have
discretion to defer or stop paying dividends for a stated period of time. If
the dividend-paying stocks held by the fund reduce or stop paying dividends,
the fund's ability to generate income may be adversely affected.
Preferred stocks, a type of dividend-paying stock, present certain additional
risks. These risks include credit risk, interest rate risk, subordination to
bonds and other debt securities in a company's capital structure, liquidity
risk, and the risk of limited or no voting rights. Additionally, during periods
of declining interest rates, there is a risk that an issuer may redeem its
outstanding preferred stock. If this happens, the fund may be forced to
reinvest in lower yielding securities. An issuer of preferred stock may have
special redemption rights that, when exercised, may negatively impact the
return of the preferred stock held by the fund.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards
31
PROSPECTUS DWS World Dividend Fund
for companies based in foreign markets differ from those in the US.
Additionally, foreign securities markets generally are smaller and less liquid
than US markets. To the extent that the fund invests in non-US dollar
denominated foreign securities, changes in currency exchange rates may affect
the US dollar value of foreign securities or the income or gain received on
these securities.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
PAST PERFORMANCE
How a fund's returns vary from year to year can give an idea of its risk; so
can comparing fund performance to overall market performance (as measured by an
appropriate market index). Past performance may not indicate future results.
All performance figures below assume that dividends were reinvested. For more
recent performance figures, go to dws-investments.com (the Web site does not
form a part of this prospectus) or call the phone number included in this
prospectus.
CALENDAR YEAR TOTAL RETURNS (%) (Class A)
These year-by-year returns do not include sales charges, if any, and would be
lower if they did. Returns for other classes were different and are not shown
here.
[BAR GRAPHIC OMITTED HERE]
[BAR GRAPHIC DATA]
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
16.83 12.63 32.63 5.48 -48.01 31.55 2.97 0.11 10.84 22.46
Best Quarter: 26.32%, Q3 2009 Worst Quarter: -24.31%, Q4 2008
32
PROSPECTUS DWS World Dividend Fund
AVERAGE ANNUAL TOTAL RETURNS
(For periods ended 12/31/2013 expressed as a %)
After-tax returns (which are shown only for Class A and would be different for
other classes) reflect the historical highest individual federal income tax
rates, but do not reflect any state or local taxes. Your actual after-tax
returns may be different. After-tax returns are not relevant to shares held in
an IRA, 401(k) or other tax-advantaged investment plan. Index comparisons for
Institutional Class shares began on 3/31/2005.
CLASS 1 5 10
INCEPTION YEAR YEARS YEARS
------------ ---------- ---------- ---------
CLASS A before tax 3/19/2001 15.42 11.65 5.20
------------------------- ---------- ----- ----- ----
After tax on
distributions 15.25 11.13 4.58
After tax on distribu-
tions and sale of fund
shares 10.43 10.03 4.43
------------------------- ---------- ----- ----- ----
CLASS B before tax 3/19/2001 18.44 11.89 4.89
------------------------- ---------- ----- ----- ----
CLASS C before tax 3/19/2001 21.54 12.08 4.96
------------------------- ---------- ----- ----- ----
CLASS S before tax 10/10/1994 22.70 13.23 6.04
------------------------- ---------- ----- ----- ----
MSCI WORLD HIGH DIVI-
DEND YIELD INDEX 21.91 14.89 -
------------------------- ---------- ----- ----- ----
MSCI WORLD INDEX 26.68 15.02 6.97
------------------------- ---------- ----- ----- ----
CLASS 1 5 SINCE
INCEPTION YEAR YEARS INCEPTION
----------- ---------- ---------- ----------
INST CLASS before tax 3/11/2005 22.84 13.44 4.56
----------------------- --------- ----- ----- ----
MSCI WORLD HIGH DIVI-
DEND YIELD INDEX 21.91 14.89 -
----------------------- --------- ----- ----- ----
MSCI WORLD INDEX 26.68 15.02 6.46
----------------------- --------- ----- ----- ----
The Advisor believes the MSCI World High Dividend Yield Index, which was first
calculated on 5/31/06, generally represents the fund's overall investment
process. The Advisor believes the additional MSCI World Index reflects typical
fund asset allocations and also provides comparative performance over a ten
year period with a broad-based securities market index.
MANAGEMENT
INVESTMENT ADVISOR
Deutsche Investment Management Americas Inc.
PORTFOLIO MANAGER(S)
THOMAS SCHUESSLER, PHD., MANAGING DIRECTOR. Portfolio Manager of the fund.
Began managing the fund in 2010.
OLIVER PFEIL, PHD., DIRECTOR. Portfolio Manager of the fund. Began managing the
fund in 2010.
FABIAN DEGEN, CFA, ASSISTANT VICE PRESIDENT. Portfolio Manager of the fund.
Began managing the fund in 2010.
PETER STEFFEN, CFA, VICE PRESIDENT. Portfolio Manager of the fund. Began
managing the fund in 2010.
PURCHASE AND SALE OF FUND SHARES
MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC
UGMAS/ INVESTMENT
NON-IRA IRAS UTMAS PLANS
------------ -------------- -------- ------------------
A B C 1,000 500 1,000 500
------- ----- --- ----- ---
INST 1,000,000 N/A N/A N/A
------- --------- ---- ----- ----
S 2,500 1,000 1,000 1,000
------- --------- ----- ----- -----
For participants in all group retirement plans, and in certain fee-based and
wrap programs approved by the Advisor, there is no minimum initial investment
and no minimum additional investment for Class A, C and S shares. For Section
529 college savings plans, there is no minimum initial investment and no
minimum additional investment for Class S shares. In certain instances, the
minimum initial investment may be waived for Institutional Class shares. There
is no minimum additional investment for Institutional Class shares. Because
Class B shares are closed to new investment, existing Class B shareholders may
purchase Class A and C shares with a minimum initial investment of $50. The
minimum additional investment in all other instances is $50.
TO PLACE ORDERS
MAIL New Accounts DWS Investments, PO Box 219356
Kansas City, MO 64121-9356
Additional Investments DWS Investments, PO Box 219154
Kansas City, MO 64121-9154
Exchanges and DWS Investments, PO Box 219557
Redemptions Kansas City, MO 64121-9557
EXPEDITED MAIL DWS Investments, 210 West 10th Street
Kansas City, MO 64105-1614
WEB SITE dws-investments.com
TELEPHONE (800) 728-3337
M - F 8 a.m. - 8 p.m. ET
TDD LINE (800) 972-3006, M - F 8 a.m. - 8 p.m. ET
Initial investments must be sent by mail. You can make additional investments
or sell shares of the fund on any business day by visiting our Web site, by
mail, or by telephone. The fund is generally open on days when the New York
Stock Exchange is open for regular trading.
Class B shares are closed to new purchases, except for exchanges and the
reinvestment of dividends or other distributions. Institutional Class shares
are generally available only to qualified institutions. Class S shares are only
available to a limited group of investors.
TAX INFORMATION
The fund's distributions are generally taxable to you as ordinary income or
capital gains, except when your investment is in an IRA, 401(k), or other
tax-deferred investment plan. Any withdrawals you make from such tax-deferred
investment plans, however, may be taxable to you.
PAYMENTS TO BROKER-DEALERS AND
OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and its related companies may pay the
intermediary for the sale of fund shares and related services. These payments
may
33
PROSPECTUS DWS World Dividend Fund
create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary's Web site for more information.
34
PROSPECTUS DWS World Dividend Fund
[GRAPHIC APPEARS HERE]
Fund Details
ADDITIONAL INFORMATION ABOUT FUND STRATEGIES AND RISKS
--------------------------------------------------------------------------------
DWS Emerging Markets Equity Fund
INVESTMENT OBJECTIVE
The fund seeks long-term growth of capital.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
net assets, plus the amount of any borrowings for investment purposes, in
emerging market equities (equities traded mainly in emerging markets or issued
by companies that are organized in emerging markets or have more than half of
their business there). The fund considers "emerging markets" to include any
country defined as an emerging or developing economy by The International Bank
for Reconstruction and Development (the World Bank), the International Finance
Corporation or the United Nations or its authorities.
The fund considers an issuer to have more than half of its business in emerging
markets if at least (i) 50% of the issuer's assets are in an emerging market
country, or (ii) 50% of an issuer's revenues or profits are from goods produced
or sold, investments made, or services performed in emerging markets.
The fund may invest up to 20% of net assets in equities from the US or other
developed markets. The fund may also invest up to 20% of net assets in US or
emerging market debt securities when portfolio management believes these
securities may perform at least as well as equities.
The fund invests primarily in common stocks, but may also invest in preferred
stocks or convertible securities.
MANAGEMENT PROCESS. Portfolio management uses a four step management process.
In the first step, using a macroeconomic outlook, portfolio management assesses
the general outlook for emerging market equities. The key drivers of this
outlook are growth, valuation, and market sentiment. This process is then
applied at individual country and sector levels to determine country and sector
weightings. In the second step, portfolio management performs a bottom-up
fundamental analysis of the companies in the designated countries and sectors
(i.e., an analysis of the salient attributes of the various individual
companies), resulting in recommended stocks for the designated countries and
sectors and corresponding target prices for those stocks. In the third step,
portfolio management constructs the fund's portfolio, weighting individual
stocks based on management's assessments and setting individual country and
sector market exposure based on management's outlook. In the fourth and final
step, portfolio management actively monitors the fund's portfolio, including an
ongoing assessment of the portfolio's risks.
DERIVATIVES. Portfolio management generally may use futures contracts, which
are a type of derivative (a contract whose value is based on, for example,
indices, currencies or securities) as a substitute for direct investment in a
particular asset class or to keep cash on hand to meet shareholder redemptions.
In addition, portfolio management generally may use forward currency contracts
to hedge the fund's exposure to changes in foreign currency exchange rates on
its foreign currency denominated portfolio holdings or to facilitate
transactions in foreign currency denominated securities. Portfolio management
generally may use structured notes to gain exposure to certain foreign markets
that may not permit direct investment.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
35
Fund Details
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
Stock prices can be hurt by poor management, shrinking product demand and other
business risks. These factors may affect single companies as well as groups of
companies. In addition, movements in financial markets may adversely affect a
stock's price, regardless of how well the company performs.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
Foreign governments may restrict investment by foreigners, limit withdrawal of
trading profit or currency from the country, restrict currency exchange or
seize foreign investments. The investments of the fund may also be subject to
foreign withholding taxes. Foreign brokerage commissions and other fees are
generally higher than those for US investments, and the transactions and
custody of foreign assets may involve delays in payment, delivery or recovery
of money or investments.
Foreign markets can have liquidity risks beyond those typical of US markets.
Because foreign exchanges generally are smaller and less liquid than US
exchanges, buying and selling foreign investments can be more difficult and
costly. Relatively small transactions can sometimes materially affect the price
and availability of securities. In certain situations, it may become virtually
impossible to sell an investment in an orderly fashion at a price that
approaches portfolio management's estimate of its value. For the same reason,
it may at times be difficult to value the fund's foreign investments.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
Emerging market countries typically have economic and political systems that
are less developed, and can be expected to be less stable than developed
markets. For example, the economies of such countries can be subject to rapid
and unpredictable rates of inflation or deflation.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
Secondary markets may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods, which may prevent the fund from
being able to realize full value and thus sell a security for its full
valuation. This could cause a material decline in the fund's net asset value.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
There is no guarantee that derivatives, to the extent employed, will have the
intended effect, and their use could cause lower returns or even losses to the
fund. The use of derivatives by the fund to hedge risk may reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
36
Fund Details
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
GROWTH INVESTING RISK. As a category, growth stocks may underperform value
stocks (and the stock market as a whole) over any period of time. Because the
prices of growth stocks are based largely on the expectation of future
earnings, growth stock prices can decline rapidly and significantly in reaction
to negative news about such factors as earnings, the economy, political
developments, or other news.
A growth company may fail to fulfill apparent promise or may be eclipsed by
competitors or its products or its services may be rendered obsolete by new
technologies. Growth stocks also typically lack the dividends associated with
value stocks that might otherwise cushion investors from the effects of
declining stock prices. In addition, growth stocks selected for investment by
portfolio management may not perform as anticipated.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
--------------------------------------------------------------------------------
DWS Enhanced Emerging Markets Fixed Income Fund
INVESTMENT OBJECTIVE
The fund seeks to provide high current income and, secondarily, long-term
capital appreciation.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
net assets, plus the amount of any borrowings for investment purposes, in high
yield bonds (also known as "junk bonds") and other debt securities issued by
governments and corporations in emerging market countries (i.e., the issuer is
traded mainly in an emerging market, is organized under the laws of an emerging
market country or is a company with more than half of its business in emerging
markets) or the return on which is derived primarily from emerging markets.
The fund considers "emerging markets" to include any country that is defined as
an emerging or developing economy by The International Bank for Reconstruction
and Development (the World Bank), the International Finance Corporation or the
United Nations or its authorities. Under normal circumstances, the fund will
not invest more than 40% of its total assets in any one country.
The fund may invest without limit in investment-grade debt securities and in
junk bonds, which are those below the fourth credit grade (grade BB/Ba and
below) and may include debt securities not currently paying interest and debt
securities in default.
The fund invests at least 50% of total assets in US dollar-
denominated securities.
The fund's sovereign debt securities may include participations in and
assignments of portions of loans between governments and financial
institutions. The fund will normally not invest more than 10% of net assets in
debt securities of grade D/C, which are usually in default.
Because the fund may invest in debt securities of varying maturities, the
fund's dollar-weighted average effective portfolio maturity will vary. As of
December 31, 2013, the fund had a dollar-weighted average effective portfolio
maturity of 6.66 years. Effective maturity is the weighted average of the bonds
held by the fund taking into consideration any available maturity shortening
features.
MANAGEMENT PROCESS. Portfolio management typically considers a number of
factors, including economic and currency outlooks, possible interest rate
movements, capital flows, debt levels, inflation trends, credit quality of
issuers, security characteristics and changes in supply and demand within
global bond markets.
In choosing individual bonds, portfolio management uses independent analysis to
look for bonds that have attractive yields and show improving credit. Portfolio
management
37
Fund Details
may also adjust the duration (a measure of sensitivity to interest rate
movements) of the fund's portfolio, depending on its outlook for interest
rates.
Portfolio management prefers bonds that are denominated in currencies it
believes are stable or strengthening currencies, but may invest in bonds
denominated in other currencies.
Portfolio management may focus on the securities of particular issuers,
industries, countries or regions at different times.
CURRENCY STRATEGIES. In addition to the fund's main investment strategy,
portfolio management may, based on its investment outlook, seek to enhance
returns by employing proprietary quantitative, rules-based methodology currency
strategies across developed and emerging market currencies using derivatives
(contracts whose value are based on, for example, indices, currencies or
securities), in particular forward currency contracts. Three main strategies
may be employed: a carry strategy, a momentum strategy and a valuation
strategy. In implementing the carry strategy, portfolio management will use a
"relative value" analysis, seeking to systematically sell low interest rate
currencies and buy high interest rate currencies. In implementing the momentum
strategy, portfolio management will use multi-year exchange rate trends,
seeking to systematically sell lower returning currencies and buy higher
returning currencies. In implementing the valuation strategy, portfolio
management will use a "fair value" analysis, seeking to systematically buy
"undervalued" currencies and sell "overvalued" currencies. For any currency
derivative contract, the fund's gains or losses generally will be affected by
the relative values of the applicable currencies and the amount of currency
(the "notional" amount) to which the contract applies. The amount of gain or
loss realized by the fund on the contract generally would be magnified if the
notional amount is greater (e.g., the fund's gains or losses on a contract
would be magnified if it were to agree to purchase 100,000 Euros as compared
with 100 Euros). The aggregate notional amount of the fund's currency
derivatives resulting from its currency strategies may significantly exceed the
net assets of the fund (and at times may exceed two times the fund's net
assets).
DERIVATIVES. Outside of the currency strategies, portfolio management generally
may use futures contracts, which are a type of derivative (a contract whose
value is based on, for example, indices, currencies or securities) as a hedge
against anticipated interest rate or currency market changes, and for duration
management (i.e., reducing or increasing the sensitivity of the fund's
portfolio to interest rate changes), and for non-hedging purposes to seek to
enhance potential gains. In addition, portfolio management generally may use
forward currency contracts (i) to hedge the fund's exposure to changes in
foreign currency exchange rates on its foreign currency denominated portfolio
holdings; (ii) to facilitate transactions in foreign currency denominated
securities; or (iii) for non-hedging purposes to seek to enhance potential
gains.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
38
Fund Details
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
Foreign governments may restrict investment by foreigners, limit withdrawal of
trading profit or currency from the country, restrict currency exchange or
seize foreign investments. The investments of the fund may also be subject to
foreign withholding taxes. Foreign brokerage commissions and other fees are
generally higher than those for US investments, and the transactions and
custody of foreign assets may involve delays in payment, delivery or recovery
of money or investments.
Foreign markets can have liquidity risks beyond those typical of US markets.
Because foreign exchanges generally are smaller and less liquid than US
exchanges, buying and selling foreign investments can be more difficult and
costly. Relatively small transactions can sometimes materially affect the price
and availability of securities. In certain situations, it may become virtually
impossible to sell an investment in an orderly fashion at a price that
approaches portfolio management's estimate of its value. For the same reason,
it may at times be difficult to value the fund's foreign investments.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
Emerging market countries typically have economic and political systems that
are less developed, and can be expected to be less stable than developed
markets. For example, the economies of such countries can be subject to rapid
and unpredictable rates of inflation or deflation.
CURRENCY STRATEGIES RISK. The success of the currency strategies depends, in
part, on the effectiveness and implementation of portfolio management's
proprietary strategies. If portfolio management's analysis proves to be
incorrect, losses to the fund may be significant and may substantially exceed
the intended level of market exposure for the currency strategies.
As part of the currency strategies, the fund will have substantial exposure to
the risks of non-US currency markets. Foreign currency rates may fluctuate
significantly over short periods of time for a number of reasons, including
changes in interest rates and economic or political developments in the US or
abroad. As a result, the fund's exposure to foreign currencies could cause
lower returns or even losses to the fund. Although portfolio management seeks
to limit these risks through the aggregation of various long and short
positions, there can be no assurance that it will be able to do so.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
NON-DIVERSIFICATION RISK. The fund is classified as non-diversified under the
Investment Company Act of 1940, as amended. This means that the fund may invest
in securities of relatively few issuers. Thus, the performance of one or a
small number of portfolio holdings can affect overall performance.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
Secondary markets may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods, which may prevent the fund from
being able to realize full value and thus sell a security for its full
valuation. This could cause a material decline in the fund's net asset value.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
There is no guarantee that derivatives, to the extent employed, will have the
intended effect, and their use could cause lower returns or even losses to the
fund. The use of derivatives by the fund to hedge risk may reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or
39
Fund Details
contracts that the fund owns or is otherwise exposed to, may decline in
financial health and become unable to honor its commitments. This could cause
losses for the fund or could delay the return or delivery of collateral or
other assets to the fund.
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
This risk can be ongoing for any security that does not trade actively or in
large volumes, for any security that trades primarily on smaller markets, and
for investments that typically trade only among a limited number of large
investors (such as certain types of derivatives or restricted securities). In
unusual market conditions, even normally liquid securities may be affected by a
degree of liquidity risk. This may affect only certain securities or an overall
securities market.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
ACTIVE TRADING RISK. The fund may trade actively. This could raise transaction
costs (thus lowering returns) and could mean increased taxable distributions to
shareholders and distributions that will be taxable to shareholders at higher
federal income tax rates.
--------------------------------------------------------------------------------
DWS Enhanced Global Bond Fund
INVESTMENT OBJECTIVE
The fund seeks total return, with an emphasis on current income; capital
appreciation is a secondary goal.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
net assets, plus the amount of any borrowings for investment purposes, in bonds
of issuers from around the world, including the United States. The fund can buy
many types of income-producing securities of any stated maturity, among them US
and foreign government bonds, corporate bonds and mortgage- and asset-backed
securities. The fund is typically invested in at least three different
countries.
The fund may invest up to 35% of net assets in junk bonds, which are those
below the fourth credit grade (i.e. grade BB/Ba and below), and may include
debt securities not currently paying interest or in default.
Because the fund may invest in debt securities of varying maturities, the
fund's dollar-weighted average effective portfolio maturity will vary. As of
December 31, 2013, the fund had a dollar-weighted average effective portfolio
maturity of 6.17 years. Effective maturity is the weighted average of the bonds
held by the fund taking into consideration any available maturity shortening
features.
MANAGEMENT PROCESS. Portfolio management typically considers a number of
factors, including economic and currency outlooks, possible interest rate
movements, capital flows, debt levels, inflation trends, credit quality of
issuers, security characteristics and changes in supply and demand within the
global bond markets.
In choosing individual bonds, portfolio management uses independent analysis to
look for bonds that have attractive yields and show improving credit.
Portfolio management prefers bonds that it believes are denominated in stable
or strengthening currencies, but may invest in bonds denominated in other
currencies.
Portfolio management may focus on the securities of particular issuers,
industries, countries or regions at different times.
CURRENCY STRATEGIES. In addition to the fund's main investment strategy,
portfolio management may, based on its investment outlook, seek to enhance
returns by employing proprietary quantitative, rules-based methodology currency
strategies across developed and emerging market currencies using derivatives
(contracts whose value are based on, for example, indices, currencies or
securities), in particular forward currency contracts. Three main strategies
may be employed: a carry strategy, a momentum strategy and a valuation
strategy. In implementing the carry strategy, portfolio management will use a
"relative value" analysis, seeking to systematically sell low interest rate
currencies and buy high interest rate currencies. In implementing the momentum
strategy, portfolio management will use multi-year exchange rate trends,
seeking to systematically sell lower returning currencies and buy higher
returning currencies. In implementing the valuation strategy, portfolio
management will use a "fair value" analysis, seeking to systematically buy
"undervalued" currencies and sell "overvalued" currencies. For any currency
derivative contract, the fund's gains or losses generally will be affected by
the relative values of the applicable currencies and the amount of currency
(the "notional" amount) to which the contract applies. The amount of gain or
loss realized by the fund on the contract generally would be magnified if the
notional amount is greater (e.g., the fund's gains or losses on a contract
would be magnified if it were to agree to purchase 100,000 Euros as compared
with 100 Euros). The aggregate notional amount of the fund's currency
derivatives resulting from its currency strategies may significantly exceed the
net assets of the fund (and at times may exceed two times the fund's net
assets).
DERIVATIVES. Outside of the currency strategies, portfolio management generally
may use futures contracts, which are a type of derivative (a contract whose
value is based
40
Fund Details
on, for example, indices, currencies or securities) as a hedge against
anticipated interest rate or currency market changes, and for duration
management (i.e., reducing or increasing the sensitivity of the fund's
portfolio to interest rate changes), and for non-hedging purposes to seek to
enhance potential gains. In addition, portfolio management generally may use
forward currency contracts (i) to hedge the fund's exposure to changes in
foreign currency exchange rates on its foreign currency denominated portfolio
holdings; (ii) to facilitate transactions in foreign currency denominated
securities; or (iii) for non-hedging purposes to seek to enhance potential
gains.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
Foreign governments may restrict investment by foreigners, limit withdrawal of
trading profit or currency from the country, restrict currency exchange or
seize foreign investments. The investments of the fund may also be subject to
foreign withholding taxes. Foreign brokerage commissions and other fees are
generally higher than those for US investments, and the transactions and
custody of foreign assets may involve delays in payment, delivery or recovery
of money or investments.
Foreign markets can have liquidity risks beyond those typical of US markets.
Because foreign exchanges generally are smaller and less liquid than US
exchanges, buying and selling foreign investments can be more difficult and
costly. Relatively small transactions can sometimes materially affect the price
and availability of securities. In certain situations, it may become virtually
impossible to sell an investment in an orderly fashion at a price that
approaches portfolio management's estimate of its value. For the same reason,
it may at times be difficult to value the fund's foreign investments.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
Emerging market countries typically have economic and political systems that
are less developed, and can be expected to be less stable than developed
markets. For example, the economies of such countries can be subject to rapid
and unpredictable rates of inflation or deflation.
CURRENCY STRATEGIES RISK. The success of the currency strategies depends, in
part, on the effectiveness and implementation of portfolio management's
proprietary strategies. If portfolio management's analysis proves to be
incorrect, losses to the fund may be significant and may substantially exceed
the intended level of market exposure for the currency strategies.
41
Fund Details
As part of the currency strategies, the fund will have substantial exposure to
the risks of non-US currency markets. Foreign currency rates may fluctuate
significantly over short periods of time for a number of reasons, including
changes in interest rates and economic or political developments in the US or
abroad. As a result, the fund's exposure to foreign currencies could cause
lower returns or even losses to the fund. Although portfolio management seeks
to limit these risks through the aggregation of various long and short
positions, there can be no assurance that it will be able to do so.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
NON-DIVERSIFICATION RISK. The fund is classified as non-diversified under the
Investment Company Act of 1940, as amended. This means that the fund may invest
in securities of relatively few issuers. Thus, the performance of one or a
small number of portfolio holdings can affect overall performance.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
Secondary markets may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods, which may prevent the fund from
being able to realize full value and thus sell a security for its full
valuation. This could cause a material decline in the fund's net asset value.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
There is no guarantee that derivatives, to the extent employed, will have the
intended effect, and their use could cause lower returns or even losses to the
fund. The use of derivatives by the fund to hedge risk may reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
This risk can be ongoing for any security that does not trade actively or in
large volumes, for any security that trades primarily on smaller markets, and
for investments that typically trade only among a limited number of large
investors (such as certain types of derivatives or restricted securities). In
unusual market conditions, even normally liquid securities may be affected by a
degree of liquidity risk. This may affect only certain securities or an overall
securities market.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
ACTIVE TRADING RISK. The fund may trade actively. This could raise transaction
costs (thus lowering returns) and could mean increased taxable distributions to
shareholders and distributions that will be taxable to shareholders at higher
federal income tax rates.
--------------------------------------------------------------------------------
DWS Global Equity Fund
INVESTMENT OBJECTIVE
The fund seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
its assets, determined at the time of purchase, in equity securities and other
securities with equity characteristics. For purposes of the fund's 80%
investment policy, the term "assets" means the fund's net assets, plus the
amount of any borrowings for investment purposes. In addition to common stock,
other securities with equity characteristics include preferred stock,
convertible securities, warrants and exchange-traded funds (ETFs). Although the
fund can invest in companies of any size and
42
Fund Details
from any country, it invests mainly in common stocks of established companies
in countries with developed economies.
The fund may also invest a portion of its assets (typically not more than 35%
of its net assets) in securities of companies located in emerging markets, such
as those of many countries in Latin America, the Middle East, Eastern Europe,
Asia and Africa.
The fund may also invest up to 20% of its assets in cash equivalents and US
investment-grade fixed-income securities.
Under normal conditions, the fund will have investment exposure to at least
three countries, excluding the United States, and combined direct and indirect
exposure to foreign securities, foreign currencies, and other foreign
investments (measured on a gross basis) equal to at least 40% of the fund's net
assets.
MANAGEMENT PROCESS. Portfolio management aims to add value through stock
selection. In choosing securities, portfolio management employs a bottom-up
selection process to identify companies it believes are well-positioned for
growth. Portfolio management utilizes a proprietary investment process designed
to identify attractive investments utilizing proprietary research, including
regional and sector research, conducted by in-house analysts. The investment
process also takes into consideration various valuation metrics to assess the
attractiveness of stocks and assists portfolio management in devising
allocations among investable securities.
DERIVATIVES. Portfolio management generally may use futures contracts, which
are a type of derivative (a contract whose value is based on, for example,
indices, currencies or securities), as a substitute for direct investment in a
particular asset class or to keep cash on hand to meet shareholder redemptions
or other needs while maintaining exposure to the stock market.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
Stock prices can be hurt by poor management, shrinking product demand and other
business risks. These factors may affect single companies as well as groups of
companies. In addition, movements in financial markets may adversely affect a
stock's price, regardless of how well the company performs.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
Foreign governments may restrict investment by foreigners, limit withdrawal of
trading profit or currency from the country, restrict currency exchange or
seize foreign investments. The investments of the fund may also be subject to
foreign withholding taxes. Foreign brokerage commissions and other fees are
generally higher than those for US investments, and the transactions and
custody of foreign assets may involve delays in payment, delivery or recovery
of money or investments.
Foreign markets can have liquidity risks beyond those typical of US markets.
Because foreign exchanges generally are smaller and less liquid than US
exchanges, buying and selling foreign investments can be more difficult and
costly. Relatively small transactions can sometimes materially affect the price
and availability of securities. In certain situations, it may become virtually
impossible to sell an investment in an orderly fashion at a price that
approaches portfolio management's estimate of its value. For the same reason,
it may at times be difficult to value the fund's foreign investments.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
Emerging market countries typically have economic and political systems that
are less developed, and can be expected to be less stable than developed
markets. For example, the economies of such countries can be subject to rapid
and unpredictable rates of inflation or deflation.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market
43
Fund Details
swings in such a targeted country, countries or regions are likely to have a
greater effect on fund performance than they would in a more geographically
diversified fund.
GROWTH INVESTING RISK. As a category, growth stocks may underperform value
stocks (and the stock market as a whole) over any period of time. Because the
prices of growth stocks are based largely on the expectation of future
earnings, growth stock prices can decline rapidly and significantly in reaction
to negative news about such factors as earnings, the economy, political
developments, or other news.
A growth company may fail to fulfill apparent promise or may be eclipsed by
competitors or its products or its services may be rendered obsolete by new
technologies. Growth stocks also typically lack the dividends associated with
value stocks that might otherwise cushion investors from the effects of
declining stock prices. In addition, growth stocks selected for investment by
portfolio management may not perform as anticipated.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
Secondary markets may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods, which may prevent the fund from
being able to realize full value and thus sell a security for its full
valuation. This could cause a material decline in the fund's net asset value.
ETF RISK. Because ETFs trade on a securities exchange, their shares may trade
at a premium or discount to their net asset value. An ETF is subject to the
risks of the assets in which it invests as well as those of the investment
strategy it follows. The fund incurs brokerage costs when it buys and sells
shares of an ETF and also bears its proportionate share of the ETF's fees and
expenses, which are passed through to ETF shareholders.
Fees and expenses incurred by an ETF may include trading costs, operating
expenses, licensing fees, trustee fees and marketing expenses. With an index
ETF, these costs may contribute to the ETF not fully matching the performance
of the index it is designed to track.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
There is no guarantee that derivatives, to the extent employed, will have the
intended effect, and their use could cause lower returns or even losses to the
fund. The use of derivatives by the fund to hedge risk may reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
This risk can be ongoing for any security that does not trade actively or in
large volumes, for any security that trades primarily on smaller markets, and
for investments that typically trade only among a limited number of large
investors (such as certain types of derivatives or restricted securities). In
unusual market conditions, even normally liquid securities may be affected by a
degree of liquidity risk. This may affect only certain securities or an overall
securities market.
SMALL COMPANY RISK. Small company stocks tend to be more volatile than
medium-sized or large company stocks. Because stock analysts are less likely to
follow small companies, less information about them is available to investors.
Industry-wide reversals may have a greater impact on small companies, since
they may lack the financial resources of larger companies. Small company stocks
are typically less liquid than large company stocks.
CREDIT RISK. The fund's performance could be hurt if an issuer of a security
suffers an adverse change in financial condition that results in the issuer not
making timely payments of interest or principal, a security downgrade or
inability to meet a financial obligation.
44
Fund Details
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
--------------------------------------------------------------------------------
DWS Global Small Cap Fund
INVESTMENT OBJECTIVE
The fund seeks above-average capital appreciation over the long term.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. The fund invests at least 80% of net assets, plus the amount
of any borrowings for investment purposes, in common stocks and other equities
of small companies throughout the world (companies with market values similar
to the smallest 30% of the aggregate market capitalization of the S&P Developed
Broad Market Index). Companies in which the fund invests typically have a
market capitalization of between $500 million and $5 billion at the time of
purchase. As part of the investment process the fund may own stocks even if
they are outside this market capitalization range. While the market
capitalization range of the S&P Developed Broad Market Index changes throughout
the year, as of the most recent reconstitution date of the index (March 20,
2014), companies in the index had a median market capitalization of
approximately $1.215 billion.
The fund may invest up to 20% of total assets in common stocks and other
equities of large companies or in debt securities, including up to 5% of net
assets in junk bonds (grade BB/Ba and below).
The fund may invest in common stocks and other types of equities such as
preferred stocks or convertible securities.
MANAGEMENT PROCESS. While the fund may invest in securities of any country,
portfolio management generally focuses on countries with developed economies
(including the US). In choosing securities, portfolio management uses a
combination of three analytical disciplines:
o BOTTOM-UP RESEARCH. Portfolio management looks for individual companies that
it believes have a history of above average growth, strong competitive
positioning, attractive prices relative to potential growth, sound
financial strength and effective management, among other factors.
o GROWTH ORIENTATION. Portfolio management generally looks for companies that
it believes have above-average potential for sustainable growth of revenue
or earnings and whose market value appears reasonable in light of their
business prospects.
o ANALYSIS OF GLOBAL THEMES. Portfolio management considers global economic
outlooks, seeking to identify industries and companies that are likely to
benefit from social, political and economic changes.
Portfolio management will normally sell a stock when they believe its price is
unlikely to go much higher, its fundamentals have deteriorated, other
investments offer better opportunities or in the course of adjusting the fund's
exposure to a given country.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
OTHER INVESTMENT STRATEGIES
DERIVATIVES. The fund may use various types of derivatives (a contract whose
value is based on, for example, indices, currencies or securities) (i) for
hedging purposes; (ii) for risk management; (iii) for non-hedging purposes to
seek to enhance potential gains; or (iv) as a substitute for direct investment
in a particular asset class or to keep cash on hand to meet shareholder
redemptions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
Stock prices can be hurt by poor management, shrinking product demand and other
business risks. These factors may affect single companies as well as groups of
companies. In addition, movements in financial markets may adversely affect a
stock's price, regardless of how well the company performs.
SMALL COMPANY RISK. Small company stocks tend to be more volatile than
medium-sized or large company stocks. Because stock analysts are less likely to
follow small companies, less information about them is available to investors.
Industry-wide reversals may have a greater impact on small companies, since
they may lack the financial resources of larger companies. Small company stocks
are typically less liquid than large company stocks.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
45
Fund Details
Foreign governments may restrict investment by foreigners, limit withdrawal of
trading profit or currency from the country, restrict currency exchange or
seize foreign investments. The investments of the fund may also be subject to
foreign withholding taxes. Foreign brokerage commissions and other fees are
generally higher than those for US investments, and the transactions and
custody of foreign assets may involve delays in payment, delivery or recovery
of money or investments.
Foreign markets can have liquidity risks beyond those typical of US markets.
Because foreign exchanges generally are smaller and less liquid than US
exchanges, buying and selling foreign investments can be more difficult and
costly. Relatively small transactions can sometimes materially affect the price
and availability of securities. In certain situations, it may become virtually
impossible to sell an investment in an orderly fashion at a price that
approaches portfolio management's estimate of its value. For the same reason,
it may at times be difficult to value the fund's foreign investments.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
Emerging market countries typically have economic and political systems that
are less developed, and can be expected to be less stable than developed
markets. For example, the economies of such countries can be subject to rapid
and unpredictable rates of inflation or deflation.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
Secondary markets may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods, which may prevent the fund from
being able to realize full value and thus sell a security for its full
valuation. This could cause a material decline in the fund's net asset value.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
GROWTH INVESTING RISK. As a category, growth stocks may underperform value
stocks (and the stock market as a whole) over any period of time. Because the
prices of growth stocks are based largely on the expectation of future
earnings, growth stock prices can decline rapidly and significantly in reaction
to negative news about such factors as earnings, the economy, political
developments, or other news.
A growth company may fail to fulfill apparent promise or may be eclipsed by
competitors or its products or its services may be rendered obsolete by new
technologies. Growth stocks also typically lack the dividends associated with
value stocks that might otherwise cushion investors from the effects of
declining stock prices. In addition, growth stocks selected for investment by
portfolio management may not perform as anticipated.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
46
Fund Details
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
There is no guarantee that derivatives, to the extent employed, will have the
intended effect, and their use could cause lower returns or even losses to the
fund. The use of derivatives by the fund to hedge risk may reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
--------------------------------------------------------------------------------
DWS Latin America Equity Fund
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of
net assets, plus the amount of any borrowings for investment purposes, in Latin
American common stocks and other equities (equities that are traded mainly on
Latin American markets, issued or guaranteed by a Latin American government or
issued by a company organized under the laws of a Latin American country or any
company with more than half of its business in Latin America). The fund defines
Latin America as Mexico, Central America, South America and the Spanish-speaking
islands of the Caribbean.
The fund may invest up to 20% of net assets in the equity securities of US and
other non-Latin American issuers and in debt securities including junk bonds
(grade BB/Ba and below). The fund may also invest as much as 10% of net assets
in debt securities rated B or lower.
The fund may from time to time invest a significant portion of its assets in
one or more Latin American countries. The fund may invest in other types of
equities, such as convertible stocks and preferred stocks.
MANAGEMENT PROCESS. Although the fund may invest in any Latin American country,
it expects to invest primarily in common stocks of established companies in
Argentina, Brazil, Chile, Colombia, Mexico, Panama and Peru.
In choosing securities, portfolio management uses a combination of three
analytical disciplines:
o BOTTOM-UP RESEARCH. Portfolio management looks for individual companies that
it believes have a history of above-average growth, strong competitive
positioning, attractive prices relative to potential growth, sound
financial strength and effective management, among other factors.
o GROWTH ORIENTATION. Portfolio management generally looks for companies that
it believes have above-average potential for sustainable growth of revenue
or earnings and whose market value appears reasonable in light of their
business prospects.
o ANALYSIS OF REGIONAL THEMES. Portfolio management looks for significant
social, economic, industrial and demographic changes, seeking to identify
stocks that may benefit from them.
Portfolio management will normally sell a stock when it believes the stock's
price is unlikely to go much higher, its fundamentals have deteriorated, other
investments offer better opportunities or in the course of adjusting the fund's
exposure to a given country.
In evaluating non-Latin American investments, portfolio management seeks
investments where an issuer's Latin American business activities and the impact
of development in Latin America may have a positive effect on the issuer's
business results.
DERIVATIVES. Portfolio management generally may use futures contracts, which
are a type of derivative (a contract whose value is based on, for example,
indices, currencies or securities) as a substitute for direct investment in a
particular asset class or to keep cash on hand to meet shareholder redemptions.
In addition, portfolio management generally may use forward currency contracts
to hedge the fund's exposure to changes in foreign currency exchange rates on
its foreign currency denominated portfolio holdings or to facilitate
transactions in foreign currency denominated securities. Portfolio management
generally may use structured notes to gain exposure to certain foreign markets
that may not permit direct investment.
The fund may also use various types of derivatives (i) for hedging purposes;
(ii) for risk management; (iii) for non-hedging purposes to seek to enhance
potential gains; or (iv) as a substitute for direct investment in a particular
asset class or to keep cash on hand to meet shareholder redemptions.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
47
Fund Details
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
Stock prices can be hurt by poor management, shrinking product demand and other
business risks. These factors may affect single companies as well as groups of
companies. In addition, movements in financial markets may adversely affect a
stock's price, regardless of how well the company performs.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
Foreign governments may restrict investment by foreigners, limit withdrawal of
trading profit or currency from the country, restrict currency exchange or
seize foreign investments. The investments of the fund may also be subject to
foreign withholding taxes. Foreign brokerage commissions and other fees are
generally higher than those for US investments, and the transactions and
custody of foreign assets may involve delays in payment, delivery or recovery
of money or investments.
Foreign markets can have liquidity risks beyond those typical of US markets.
Because foreign exchanges generally are smaller and less liquid than US
exchanges, buying and selling foreign investments can be more difficult and
costly. Relatively small transactions can sometimes materially affect the price
and availability of securities. In certain situations, it may become virtually
impossible to sell an investment in an orderly fashion at a price that
approaches portfolio management's estimate of its value. For the same reason,
it may at times be difficult to value the fund's foreign investments.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
Emerging market countries typically have economic and political systems that
are less developed, and can be expected to be less stable than developed
markets. For example, the economies of such countries can be subject to rapid
and unpredictable rates of inflation or deflation.
NON-DIVERSIFICATION RISK. The fund is classified as non-diversified under the
Investment Company Act of 1940, as amended. This means that the fund may invest
in securities of relatively few issuers. Thus, the performance of one or a
small number of portfolio holdings can affect overall performance.
GROWTH INVESTING RISK. As a category, growth stocks may underperform value
stocks (and the stock market as a whole) over any period of time. Because the
prices of growth stocks are based largely on the expectation of future
earnings, growth stock prices can decline rapidly and significantly in reaction
to negative news about such factors as earnings, the economy, political
developments, or other news.
A growth company may fail to fulfill apparent promise or may be eclipsed by
competitors or its products or its services may be rendered obsolete by new
technologies. Growth stocks also typically lack the dividends associated with
value stocks that might otherwise cushion investors from the effects of
declining stock prices. In addition, growth stocks selected for investment by
portfolio management may not perform as anticipated.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
Secondary markets may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods, which may prevent the fund from
being able to realize full value and thus sell a security for its full
valuation. This could cause a material decline in the fund's net asset value.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation;
48
Fund Details
and the risk that the derivative transaction could expose the fund to the
effects of leverage, which could increase the fund's exposure to the market and
magnify potential losses.
There is no guarantee that derivatives, to the extent employed, will have the
intended effect, and their use could cause lower returns or even losses to the
fund. The use of derivatives by the fund to hedge risk may reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
This risk can be ongoing for any security that does not trade actively or in
large volumes, for any security that trades primarily on smaller markets, and
for investments that typically trade only among a limited number of large
investors (such as certain types of derivatives or restricted securities). In
unusual market conditions, even normally liquid securities may be affected by a
degree of liquidity risk. This may affect only certain securities or an overall
securities market.
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
ACTIVE TRADING RISK. The fund may trade actively. This could raise transaction
costs (thus lowering returns) and could mean increased taxable distributions to
shareholders and distributions that will be taxable to shareholders at higher
federal income tax rates.
--------------------------------------------------------------------------------
DWS World Dividend Fund
INVESTMENT OBJECTIVE
The fund seeks total return, emphasizing both current income and capital
appreciation.
PRINCIPAL INVESTMENT STRATEGY
MAIN INVESTMENTS. Normally, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in dividend paying
stocks. The fund will generally invest in at least three different countries
and will normally invest at least 40% of net assets in securities issued by
foreign based companies.
The fund's investments will include primarily common stocks issued by US and
foreign based companies and may also include preferred stocks and other equity
securities such as convertible securities and warrants.
MANAGEMENT PROCESS.
Although the fund may invest in companies of any size and from any country, it
will invest mainly in common stocks of established companies in countries with
developed economies. The fund will seek income by investing in dividend paying
stocks. Portfolio management looks for companies it believes are fundamentally
strong and that it expects to have high, sustainable dividend yields and stable
cash flows.
In choosing securities, portfolio management uses a combination of analytical
disciplines:
49
Fund Details
o BOTTOM-UP RESEARCH. Portfolio management looks for individual companies that
it believes have a history of above-average growth, strong competitive
positioning, attractive prices relative to potential growth, sound
financial strength and effective management, among other factors.
o GROWTH ORIENTATION. Portfolio management generally looks for companies that
it believes have above-average potential for sustainable growth of revenue
or earnings and whose market value appears reasonable in light of their
business prospects.
o ANALYSIS OF REGIONAL THEMES. Portfolio management looks for significant
social, economic, industrial and demographic changes, seeking to identify
stocks that may benefit from them.
Portfolio management may sell a stock when it believes its fundamentals have
deteriorated, other investments offer better opportunities or in the course of
adjusting the fund's exposure to a given country.
SECURITIES LENDING. The fund may lend securities (up to one-third of total
assets) to approved institutions.
OTHER INVESTMENT STRATEGIES
DERIVATIVES. The fund may use various types of derivatives (a contract whose
value is based on, for example, indices, currencies or securities) (i) for
hedging purposes; (ii) for risk management; (iii) for non-hedging purposes to
seek to enhance potential gains; or (iv) as a substitute for direct investment
in a particular asset class or to keep cash on hand to meet shareholder
redemptions.
MAIN RISKS
There are several risk factors that could hurt the fund's performance, cause
you to lose money or cause the fund's performance to trail that of other
investments. The fund may not achieve its investment objective, and is not
intended to be a complete investment program. An investment in the fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
STOCK MARKET RISK. The fund is affected by how the stock market performs. When
stock prices fall, you should expect the value of your investment to fall as
well.
Stock prices can be hurt by poor management, shrinking product demand and other
business risks. These factors may affect single companies as well as groups of
companies. In addition, movements in financial markets may adversely affect a
stock's price, regardless of how well the company performs.
DIVIDEND-PAYING STOCK RISK. As a category, dividend-paying stocks may
underperform non-dividend paying stocks (and the stock market as a whole) over
any period of time. In addition, issuers of dividend-paying stocks may have
discretion to defer or stop paying dividends for a stated period of time. If
the dividend-paying stocks held by the fund reduce or stop paying dividends,
the fund's ability to generate income may be adversely affected.
Preferred stocks, a type of dividend-paying stock, present certain additional
risks. These risks include credit risk, interest rate risk, subordination to
bonds and other debt securities in a company's capital structure, liquidity
risk, and the risk of limited or no voting rights. Additionally, during periods
of declining interest rates, there is a risk that an issuer may redeem its
outstanding preferred stock. If this happens, the fund may be forced to
reinvest in lower yielding securities. An issuer of preferred stock may have
special redemption rights that, when exercised, may negatively impact the
return of the preferred stock held by the fund.
FOREIGN INVESTMENT RISK. The fund faces the risks inherent in foreign
investing. Adverse political, economic or social developments could undermine
the value of the fund's investments or prevent the fund from realizing the full
value of its investments. Financial reporting standards for companies based in
foreign markets differ from those in the US. Additionally, foreign securities
markets generally are smaller and less liquid than US markets. To the extent
that the fund invests in non-US dollar denominated foreign securities, changes
in currency exchange rates may affect the US dollar value of foreign securities
or the income or gain received on these securities.
Foreign governments may restrict investment by foreigners, limit withdrawal of
trading profit or currency from the country, restrict currency exchange or
seize foreign investments. The investments of the fund may also be subject to
foreign withholding taxes. Foreign brokerage commissions and other fees are
generally higher than those for US investments, and the transactions and
custody of foreign assets may involve delays in payment, delivery or recovery
of money or investments.
Foreign markets can have liquidity risks beyond those typical of US markets.
Because foreign exchanges generally are smaller and less liquid than US
exchanges, buying and selling foreign investments can be more difficult and
costly. Relatively small transactions can sometimes materially affect the price
and availability of securities. In certain situations, it may become virtually
impossible to sell an investment in an orderly fashion at a price that
approaches portfolio management's estimate of its value. For the same reason,
it may at times be difficult to value the fund's foreign investments.
EMERGING MARKETS RISK. Foreign investment risks are greater in emerging markets
than in developed markets. Investments in emerging markets are often considered
speculative.
50
Fund Details
Emerging market countries typically have economic and political systems that
are less developed, and can be expected to be less stable than developed
markets. For example, the economies of such countries can be subject to rapid
and unpredictable rates of inflation or deflation.
REGIONAL FOCUS RISK. Focusing investments in a single country or few countries,
or regions, involves increased currency, political, regulatory and other risks.
Market swings in such a targeted country, countries or regions are likely to
have a greater effect on fund performance than they would in a more
geographically diversified fund.
PRICING RISK. If market conditions make it difficult to value some investments,
the fund may value these investments using more subjective methods, such as
fair value pricing. In such cases, the value determined for an investment could
be different than the value realized upon such investment's sale. As a result,
you could pay more than the market value when buying fund shares or receive
less than the market value when selling fund shares.
Secondary markets may be subject to irregular trading activity, wide bid/ask
spreads and extended trade settlement periods, which may prevent the fund from
being able to realize full value and thus sell a security for its full
valuation. This could cause a material decline in the fund's net asset value.
SECURITY SELECTION RISK. The securities in the fund's portfolio may decline in
value. Portfolio management could be wrong in its analysis of industries,
companies, economic trends, the relative attractiveness of different securities
or other matters.
SECURITIES LENDING RISK. Any decline in the value of a portfolio security that
occurs while the security is out on loan is borne by the fund and will
adversely affect performance. Also, there may be delays in recovery of
securities loaned or even a loss of rights in the collateral should the
borrower of the securities fail financially while holding the security.
CREDIT RISK. The fund's performance could be hurt if an issuer of a debt
security suffers an adverse change in financial condition that results in a
payment default, security downgrade or inability to meet a financial
obligation. Credit risk is greater for lower-rated securities.
Because the issuers of high-yield debt securities or junk bonds (debt
securities rated below the fourth highest credit rating category) may be in
uncertain financial health, the prices of their debt securities can be more
vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. High-yield debt securities are considered
speculative, and credit risk for high-yield securities is greater than for
higher-rated securities.
INTEREST RATE RISK. When interest rates rise, prices of debt securities
generally decline. The longer the duration of the fund's debt securities, the
more sensitive it will be to interest rate changes. (As a general rule, a 1%
rise in interest rates means a 1% fall in value for every year of duration.)
LIQUIDITY RISK. In certain situations, it may be difficult or impossible to
sell an investment in an orderly fashion at an acceptable price.
This risk can be ongoing for any security that does not trade actively or in
large volumes, for any security that trades primarily on smaller markets, and
for investments that typically trade only among a limited number of large
investors (such as certain types of derivatives or restricted securities). In
unusual market conditions, even normally liquid securities may be affected by a
degree of liquidity risk. This may affect only certain securities or an overall
securities market.
PREPAYMENT AND EXTENSION RISK. When interest rates fall, issuers of high
interest debt obligations may pay off the debts earlier than expected
(prepayment risk), and the fund may have to reinvest the proceeds at lower
yields. When interest rates rise, issuers of lower interest debt obligations
may pay off the debts later than expected (extension risk), thus keeping the
fund's assets tied up in lower interest debt obligations. Ultimately, any
unexpected behavior in interest rates could increase the volatility of the
fund's share price and yield and could hurt fund performance. Prepayments could
also create capital gains tax liability in some instances.
DERIVATIVES RISK. Risks associated with derivatives include the risk that the
derivative is not well correlated with the security, index or currency to which
it relates; the risk that derivatives may result in losses or missed
opportunities; the risk that the fund will be unable to sell the derivative
because of an illiquid secondary market; the risk that a counterparty is
unwilling or unable to meet its obligation; and the risk that the derivative
transaction could expose the fund to the effects of leverage, which could
increase the fund's exposure to the market and magnify potential losses.
There is no guarantee that derivatives, to the extent employed, will have the
intended effect, and their use could cause lower returns or even losses to the
fund. The use of derivatives by the fund to hedge risk may reduce the
opportunity for gain by offsetting the positive effect of favorable price
movements.
COUNTERPARTY RISK. A financial institution or other counterparty with whom the
fund does business, or that underwrites, distributes or guarantees any
investments or contracts that the fund owns or is otherwise exposed to, may
decline in financial health and become unable to honor its commitments. This
could cause losses for the fund or could delay the return or delivery of
collateral or other assets to the fund.
51
Fund Details
OTHER POLICIES AND RISKS
While the previous pages describe the main points of each fund's strategy and
risks, there are a few other matters to know about:
o Although major changes tend to be infrequent, each fund's Board could change
a fund's investment objective without seeking shareholder approval. A
fund's Board will provide shareholders with at least 60 days' notice prior
to making any changes to the 80% investment policy of each fund as
described herein.
o When, in the Advisor's opinion, it is advisable to adopt a temporary
defensive position because of unusual and adverse or other market
conditions, up to 100% of each fund's assets may be held in cash or
invested in money market securities or other short-term investments.
Short-term investments consist of (1) foreign and domestic obligations of
sovereign governments and their agencies and instrumentalities, authorities
and political subdivisions; (2) other short-term high quality rated debt
securities or, if unrated, determined to be of comparable quality in the
opinion of the Advisor; (3) commercial paper; (4) bank obligations,
including negotiable certificates of deposit, time deposits and bankers'
acceptances; and (5) repurchase agreements. Short-term investments may also
include shares of money market mutual funds. To the extent a fund invests
in such instruments, the fund will not be pursuing its investment
objective. However, portfolio management may choose not to use these
strategies for various reasons, even in volatile market conditions.
o Each fund may trade actively. This could raise transaction costs (thus
lowering return) and could mean increased taxable distributions to
shareholders and distributions that will be taxable to shareholders at
higher federal income tax rates.
o Portfolio management measures credit quality at the time it buys securities,
using independent rating agencies or, for unrated securities, its own
judgment. All securities must meet the credit quality standards applied by
portfolio management at the time they are purchased. If a security's credit
quality changes, portfolio management will decide what to do with the
security, based on its assessment of what would most benefit a fund.
o Certain DWS funds-of-funds are permitted to invest in each fund. As a
result, a fund may have large inflows or outflows of cash from time to
time. This could have adverse effects on a fund's performance if a fund
were required to sell securities or invest cash at times when it otherwise
would not do so. This activity could also accelerate the realization of
capital gains and increase a fund's transaction costs.
FOR MORE INFORMATION
This prospectus doesn't tell you about every policy or risk of investing in
each fund.
If you want more information on each fund's allowable securities and investment
practices and the characteristics and risks of each one, you may want to
request a copy of the Statement of Additional Information (the back cover tells
you how to do this).
Keep in mind that there is no assurance that a fund will achieve its investment
objective.
A complete list of each fund's portfolio holdings as of the month-end is posted
on dws-investments.com on or after the last day of the following month. More
frequent posting of portfolio holdings information may be made from time to
time on dws-investments.com. The posted portfolio holdings information is
available by fund and generally remains accessible at least until the date on
which a fund files its Form N-CSR or N-Q with the Securities and Exchange
Commission for the period that includes the date as of which the posted
information is current. In addition, each fund's (except for DWS Enhanced
Emerging Markets Fixed Income Fund and DWS Enhanced Global Bond Fund) top ten
equity holdings and other fund information is posted on dws-investments.com as
of the calendar quarter-end on or after the 10th calendar day following
quarter-end. Each fund's Statement of Additional Information includes a
description of a fund's policies and procedures with respect to the disclosure
of a fund's portfolio holdings.
WHO MANAGES AND OVERSEES THE FUNDS
THE INVESTMENT ADVISOR
Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), with
headquarters at 345 Park Avenue, New York, NY 10154, is the investment advisor
for each fund. Under the oversight of the Board, the Advisor, or the
subadvisor, makes investment decisions, buys and sells securities for each fund
and conducts research that leads to these purchase and sale decisions. The
Advisor is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche
Bank AG is a major global banking institution that is engaged in a wide range
of financial services, including investment management, mutual funds, retail,
private and commercial banking, investment banking and insurance. The Advisor
and its predecessors have more than 80 years of experience managing mutual
funds and provide a full range of global investment advisory services to
institutional and retail clients.
Deutsche Asset & Wealth Management represents the asset management and wealth
management activities conducted by Deutsche Bank AG or any of its subsidiaries,
including the Advisor and DWS Investments Distributors, Inc. ("DIDI" or the
"Distributor"). Deutsche Asset & Wealth Management is a global organization
that offers a wide range of investing expertise and resources, including
hundreds of portfolio managers and analysts and an office network that reaches
the world's major investment centers. This well-resourced global investment
platform
52
Fund Details
brings together a wide variety of experience and investment insight across
industries, regions, asset classes and investing styles.
The Advisor may utilize the resources of its global investment platform to
provide investment management services through branch offices or affiliates
located outside the US. In some cases, the Advisor may also utilize its branch
offices or affiliates located in the US or outside the US to perform certain
services, such as trade execution, trade matching and settlement, or various
administrative, back-office or other services. To the extent services are
performed outside the US, such activity may be subject to both US and foreign
regulation. It is possible that the jurisdiction in which the Advisor or its
affiliate performs such services may impose restrictions or limitations on
portfolio transactions that are different from, and in addition to, those that
apply in the US.
MANAGEMENT FEE. The Advisor receives a management fee from each fund. Below are
the actual rates paid by each fund for the most recent fiscal year, as a
percentage of each fund's average daily net assets.
FUND NAME FEE PAID
-------------------------- -----------
DWS Emerging Markets
Equity Fund 1.015%
-------------------------- -----
DWS Enhanced Emerging
Markets Fixed Income Fund 0.59 %
--------------------------- -----
DWS Enhanced Global Bond
Fund 0.41 %
--------------------------- -----
DWS Global Equity Fund 0.67%*
--------------------------- -----
DWS Global Small Cap Fund 0.915%
--------------------------- -----
DWS Latin America Equity
Fund 1.10%*
--------------------------- -----
DWS World Dividend Fund 0.66 %
--------------------------- -----
* Reflecting the effect of expense limitations and/or fee waivers then in
effect.
The following waivers are currently in effect:
For DWS Emerging Markets Equity Fund, the Advisor has contractually agreed
through September 30, 2014 to waive and/or reimburse fund expenses to the
extent necessary to maintain the fund's total annual operating expenses at
1.65%, 2.40%, 2.40%, 1.40% and 1.40%; and for the period October 1, 2014
through April 30, 2015 at ratios no higher than 1.82%, 2.57%, 2.57%, 1.57% and
1.57% (in each instance, excluding extraordinary expenses, taxes, brokerage and
interest expenses) for Class A, Class B, Class C, Institutional Class and Class
S, respectively. These agreements may only be terminated with the consent of
the fund's Board.
For DWS Enhanced Emerging Markets Fixed Income Fund, the Advisor has
contractually agreed through September 30, 2014 to waive and/or reimburse fund
expenses to the extent necessary to maintain the fund's total annual operating
expenses at 1.20%, 1.95%, 1.95%, 0.95% and 0.95%; and for the period October 1,
2014 through January 31, 2015 at ratios no higher than 1.27%, 2.02%, 2.02%,
1.02% and 1.02% (in each instance, excluding extraordinary expenses, taxes,
brokerage and interest expenses) for Class A, Class B, Class C, Institutional
Class and Class S, respectively. These agreements may only be terminated with
the consent of the fund's Board.
For DWS Enhanced Global Bond Fund, the Advisor has contractually agreed through
September 30, 2014 to waive and/or reimburse fund expenses to the extent
necessary to maintain the fund's total annual operating expenses at 1.02%,
1.77%, 1.77% and 0.77%; and for the period October 1, 2014 through January 31,
2015 at ratios no higher than 1.10%, 1.85%, 1.85% and 0.85% (in each instance,
excluding extraordinary expenses, taxes, brokerage and interest expenses) for
Class A, Class B, Class C and Class S, respectively. These agreements may only
be terminated with the consent of the fund's Board.
For DWS Global Equity Fund, the Advisor has contractually agreed through
September 30, 2014 to waive and/or reimburse fund expenses to the extent
necessary to maintain the fund's total annual operating expenses at 1.46%,
2.21%, 2.21%, 1.71%, 1.21% and 1.31%; and for the period October 1, 2014
through January 31, 2015 at ratios no higher than 1.52%, 2.27%, 2.27%, 1.77%,
1.27% and 1.37% (in each instance, excluding extraordinary expenses, taxes,
brokerage, interest expenses, and acquired funds fees and expenses) for Class
A, Class B, Class C, Class R, Institutional Class and Class S, respectively.
These agreements may only be terminated with the consent of the fund's Board.
For DWS Global Small Cap Fund, the Advisor has contractually agreed through
September 30, 2014 to waive and/or reimburse fund expenses to the extent
necessary to maintain the fund's total annual operating expenses (excluding
extraordinary expenses, taxes, brokerage and interest expenses) at 1.55%,
2.30%, 2.30%, 1.30% and 1.30% for Class A, Class B, Class C, Institutional
Class and Class S, respectively. The agreement may only be terminated with the
consent of the fund's Board.
For DWS Latin America Equity Fund, the Advisor has contractually agreed through
September 30, 2014 to waive and/or reimburse fund expenses to the extent
necessary to maintain the fund's total annual operating expenses at 1.52%,
2.27%, 2.27% and 1.27%; and for the period from October 1, 2014 through January
31, 2015, at ratios no higher than 1.72%, 2.47%, 2.47% and 1.47% (in each
instance, excluding extraordinary expenses, taxes, brokerage and interest
expenses) for Classes A, B, C and S, respectively. These agreements may only be
terminated with the consent of the fund's Board.
For DWS World Dividend Fund, the Advisor has contractually agreed through
September 30, 2014 to waive and/or reimburse fund expenses to the extent
necessary to maintain the fund's total annual operating expenses at 1.28%,
2.03%, 2.03%, 1.03% and 1.03%; and for the period October 1, 2014 through
January 31, 2015 at ratios no higher than 1.35%, 2.10%, 2.10%, 1.10% and 1.10%
(in
53
Fund Details
each instance, excluding extraordinary expenses, taxes, brokerage and interest
expenses) for Class A, Class B, Class C, Institutional Class and Class S,
respectively. These agreements may only be terminated with the consent of the
fund's Board.
A discussion regarding the basis for the Board's approval of each fund's
investment management agreement and, as applicable, subadvisory agreement, is
contained in the most recent shareholder reports for the annual period ended
October 31 (see "Shareholder reports" on the back cover).
Under a separate administrative services agreement between each fund and the
Advisor, each fund pays the Advisor a fee of 0.10% for providing most of each
fund's administrative services. The administrative services fee discussed above
is included in the fees and expenses table under "Other expenses."
MULTI-MANAGER STRUCTURE. The Advisor, subject to the approval of the Board, has
ultimate responsibility to oversee any subadvisor to a fund and to recommend
the hiring, termination and replacement of subadvisors. Each fund and the
Advisor have received an order from the SEC that permits the Advisor to appoint
or replace certain subadvisors, to manage all or a portion of a fund's assets
and enter into, amend or terminate a subadvisory agreement with certain
subadvisors, in each case subject to the approval of a fund's Board but without
obtaining shareholder approval ("multi-manager structure"). The multi-manager
structure applies to subadvisors that are not affiliated with the fund or the
Advisor ("nonaffiliated subadvisors"), as well as subadvisors that are indirect
or direct, wholly owned subsidiaries of the Advisor or Deutsche Bank AG
("wholly owned subadvisors"). Pursuant to the SEC order, the Advisor, with the
approval of a fund's Board, has the discretion to terminate any subadvisor and
allocate and reallocate a fund's assets among any other nonaffiliated
subadvisors or wholly owned subadvisors (including terminating a nonaffiliated
subadvisor and replacing it with a wholly owned subadvisor). Each fund and the
Advisor are subject to the conditions imposed by the SEC order, including the
condition that within 90 days of hiring of a new subadvisor pursuant to the
multi-manager structure, each fund will provide shareholders with an
information statement containing information about the new subadvisor. The
shareholders of each fund have approved the multi-manager structure described
herein.
SUBADVISOR FOR DWS EMERGING MARKETS EQUITY FUND
The sub-advisor for is Deutsche Alternative Asset Management (Global) Limited
("DAAM Global"), formerly known as RREEF Global Advisors Limited, 1 Great
Winchester Street, London, United Kingdom, EC2N 2DB. DAAM Global renders
investment advisory and management services to the fund. DAAM Global is an
investment advisor registered with the Securities and Exchange Commission,
whose assets under management are currently comprised of institutional accounts
and investment companies. DAAM Global is a subsidiary of Deutsche Bank AG.
DIMA, not the fund, compensates DAAM Global for the services it provides to the
fund.
MANAGEMENT
DWS EMERGING MARKETS EQUITY FUND
SEAN TAYLOR, MANAGING DIRECTOR. Lead Portfolio Manager of the fund. Began
managing the fund in 2014.
o Head of Emerging Markets Equities: London.
o Joined Deutsche Asset & Wealth Management in 2013. Prior to his current
role, he served as Head of Emerging Markets at Pioneer Investments,
Investment Director at GAM, based in London and Dubai, and Head of
International & Emerging Markets at Societe Generale.
o MBA, Manchester Business School.
ANDREW BEAL, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2014.
o Joined Deutsche Asset & Wealth Management in 2014 with 22 years of prior
industry experience. Prior to joining, he was responsible for emerging
markets investments at Schroders, Nicolas Applegate and Henderson Global
Investors.
o BSc in Economics and Politics from University of Bath.
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
WILLIAM CHEPOLIS, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began
managing the fund in 2011.
o Joined Deutsche Asset & Wealth Management in 1998 after 13 years of
experience as vice president and portfolio manager for Norwest Bank where
he managed the bank's fixed income and foreign exchange portfolios.
o Portfolio Manager for Retail Fixed Income: New York.
o BIS, University of Minnesota.
JOHN D. RYAN, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2011.
o Joined Deutsche Asset & Wealth Management in 2010 from Northern Trust where
he served as a senior portfolio manager. Previously, he served as a
portfolio manager and head of credit trading for Deutsche Asset Management
from 1998-2003.
o Over 19 years of investment industry experience.
o BA in Economics, University of Chicago; MBA, University of Chicago.
DARWEI KUNG, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2011.
o Joined Deutsche Asset & Wealth Management in 2006; previously has worked as
a Director, Engineering and Business Development at Calpoint LLC from
2001-2004.
o Portfolio Manager: New York.
o BS and MS, University of Washington, Seattle; MS and MBA, Carnegie Mellon
University.
STEVEN ZHOU, ASSISTANT VICE PRESIDENT. Portfolio Manager of the fund. Began
managing the fund in 2013.
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Fund Details
o Joined Deutsche Asset & Wealth Management in 2010 with over 2 years of
experience at J.P. Morgan Chase and Freddie Mac. Held summer internships
positions at Deutsche Asset Management and AFL-CIO Housing Investment
Trust.
o Analyst for Mortgage Backed Securities: New York.
o MS in Computational Finance from Carnegie Mellon University; BA in Economics
and BS in Computer Science from the University of Maryland, College Park.
RAHMILA NADI, ASSOCIATE. Portfolio Manager of the fund. Began managing the fund
in 2013.
o Joined Deutsche Asset & Wealth Management in 2012 after six years of
experience at J.P. Morgan Chase in credit portfolio trading.
o BA, Columbia University, Columbia College; MBA, S.C. Johnson Graduate School
of Management at Cornell University.
DWS ENHANCED GLOBAL BOND FUND
WILLIAM CHEPOLIS, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began
managing the fund in 2011.
o Joined Deutsche Asset & Wealth Management in 1998 after 13 years of
experience as vice president and portfolio manager for Norwest Bank where
he managed the bank's fixed income and foreign exchange portfolios.
o Portfolio Manager for Retail Fixed Income: New York.
o BIS, University of Minnesota.
JOHN D. RYAN, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2012.
o Joined Deutsche Asset & Wealth Management in 2010 from Northern Trust where
he served as a senior portfolio manager. Previously, he served as a
portfolio manager and head of credit trading for Deutsche Asset Management
from 1998-2003.
o Over 19 years of investment industry experience.
o BA in Economics, University of Chicago; MBA, University of Chicago.
DARWEI KUNG, DIRECTOR. Portfolio Manager of the fund. Began managing the fund
in 2012.
o Joined Deutsche Asset & Wealth Management in 2006; previously has worked as
a Director, Engineering and Business Development at Calpoint LLC from
2001-2004.
o Portfolio Manager: New York.
o BS and MS, University of Washington, Seattle; MS and MBA, Carnegie Mellon
University.
GARY RUSSELL, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began
managing the fund in 2012.
o Joined Deutsche Asset & Wealth Management in 1996. Served as the head of the
High Yield group in Europe and as an Emerging Markets portfolio manager.
o Prior to that, he spent four years at Citicorp as a research analyst and
structurer of collateralized mortgage obligations. Prior to Citicorp, he
served as an officer in the US Army from 1988 to 1991.
o Head of US High Yield Bonds: New York.
o BS, United States Military Academy (West Point); MBA, New York University,
Stern School of Business.
RAHMILA NADI, ASSOCIATE. Portfolio Manager of the fund. Began managing the fund
in 2013.
o Joined Deutsche Asset & Wealth Management in 2012 after six years of
experience at J.P. Morgan Chase in credit portfolio trading.
o BA, Columbia University, Columbia College; MBA, S.C. Johnson Graduate School
of Management at Cornell University.
DWS GLOBAL EQUITY FUND
NILS E. ERNST, PHD, DIRECTOR. Portfolio Manager of the fund. Began managing the
fund in 2013.
o Joined Deutsche Asset & Wealth Management in 2004 after two years of
industry experience as an Investment Consultant at FERI Institutional
Management GmbH, while completing his doctoral studies.
o Portfolio Manager for Global Equities: Frankfurt.
o Completed Bank Training Program ("Bankkaufmann") at Landesbank
Hessen-Thueringen, Frankfurt; Master's Degree and PhD in Business
Administration ("Diplom-Kaufmann" and "Dr.rer.pol.") from Otto Beisheim
Graduate School of Corporate Management with semesters at Georgia Institute
of Technology and Hong Kong University of Science and Technology.
MARTIN BERBERICH, CFA, DIRECTOR. Portfolio Manager of the fund. Began managing
the fund in 2013.
o Joined Deutsche Asset & Wealth Management in 1999 with three years of
industry experience; previously, he served as an Institutional Portfolio
Manager. Before joining, he worked in the Treasury Department at Robert
Bosch GmbH.
o Senior Portfolio Manager for Global Equities and Deputy Portfolio Manager
for the DWS Top 50 Welt: Frankfurt.
o Completed Bank Training Program ("Bankkaufmann") at HypoVereinsbank
Wuerzburg; MBA ("Diplom-Kaufmann") from University of Wuerzburg; CFA
Charterholder.
SEBASTIAN P. WERNER, PHD, VICE PRESIDENT. Portfolio Manager of the fund. Began
managing the fund in 2013.
o Joined Deutsche Asset & Wealth Management in 2008; previously, he served as
a Research Assistant for the Endowed Chair of Asset Management at the
European Business School, Oestrich-Winkel while earning his PhD.
o Portfolio Manager for Global and US Growth Equities: Frankfurt.
o MBA in International Management from the Thunderbird School of Global
Management; Masters Degree ("Diplom-Kaufmann") and PhD in Finance
("Dr.rer.pol.") from the European Business School, Oestrich-Winkel.
DWS GLOBAL SMALL CAP FUND
JOSEPH AXTELL, CFA, MANAGING DIRECTOR. Portfolio Manager of the fund. Began
managing the fund in 2002.
55
Fund Details
o Joined Deutsche Asset & Wealth Management in 2001 with 16 years of industry
experience; previously, he served as a European Equities Portfolio Manager
at Scudder Investments (which was later acquired by Deutsche Bank). Prior
to joining, he worked as a Senior Analyst for International Equities at
Merrill Lynch Asset Managers, as an International Research Analyst at PCM
International and in various investment positions at Prudential Capital
Corporation, Prudential-Bache Capital Funding and Prudential Equity
Management Associates.
o Portfolio Manager for Global Small Cap and US Small and Mid Cap Equity: New
York.
o BS from Carlson School of Management, University of Minnesota; CFA
Charterholder.
DWS LATIN AMERICA EQUITY FUND
LUIZ RIBEIRO, CFA, DIRECTOR. Lead Portfolio Manager of the fund. Began managing
the fund in 2013.
o Senior Equities Portfolio Manager: S-o Paolo.
o Joined Deutsche Asset & Wealth Management in 2012 with 18 years of industry
experience. Prior to joining Deutsche Asset & Wealth Management, Luiz
served as the Head of Latin America - Internal Equities at the Abu Dhabi
Investment Authority. Previously, he served as a Senior Portfolio Manager
at HSBC Bank. Prior to HSBC Bank, Luiz worked as an Investment Officer at
IFC - World Bank and as an Analyst and then as a Senior Portfolio Manager
at ABN AMRO Bank. He began his investment career as a Trader at Dibran DTVM
Ltda.
o BA in Business Administration from University of S-o Paulo (USP); MBA in
Finance from Brazilian Institute of Capital Markets (IBMEC); CFA
Charterholder.
DANILO PEREIRA, VICE PRESIDENT. Portfolio Manager of the fund. Began managing
the fund in 2013.
o Portfolio Manager and Equities Analyst: S-o Paulo.
o Joined Deutsche Asset & Wealth Management in 2012 with 12 years of industry
experience. Prior to joining Deutsche Asset & Wealth Management, Danilo was
the Deputy Head of Latin America - Internal Equities at the Abu Dhabi
Investment Authority. Previously, he served as a Senior Latin American
Analyst at BNP Paribas Investment Partners, Senior Analyst and Co-manager
at Equitas Investimentos and as a Portfolio Manager at Bradesco Asset
Management. Danilo began his investment career as a Latin American Analyst
at ABN AMRO Asset Management.
o BA in Business from Fundacao Getulio Vargas.
THOMAS U. PETSCHNIGG, CFA, VICE PRESIDENT. Portfolio Manager of the fund. Began
managing the fund in 2013.
o Latin America Portfolio Manager: Frankfurt.
o Joined Deutsche Asset & Wealth Management in 2006 with 6 years of industry
experience at Goldman Sachs Asset Management (GSAM), where he was
responsible for GSAM's consultant business in Germany. During this time he
also contributed as an author to various professional journals and
textbooks. Prior to his current role, served as a Global Equity Portfolio
Manager; he transferred to the Latin America Equities Team in April 2010.
o Master's Degree in Business Administration ("Diplom-Kaufmann") from the
European Business School in Oestrich-Winkel with exchanges at the
University of California Berkeley and the Ecole Superieure de Commerce
Dijon.
DWS WORLD DIVIDEND FUND
THOMAS SCHUESSLER, PHD., MANAGING DIRECTOR. Portfolio Manager of the fund.
Began managing the fund in 2010.
o Joined Deutsche Asset & Wealth Management in 2001 after five years at
Deutsche Bank where he managed various projects and worked in the office of
the Chairman of the Management Board.
o Head of Equity Income and Member of the Asset Management CIO Executive
Committee: Frankfurt.
o PhD, University of Heidelberg, studies in physics and economics at
University of Heidelberg and University of Utah.
OLIVER PFEIL, PHD., DIRECTOR. Portfolio Manager of the fund. Began managing the
fund in 2010.
o Joined Deutsche Asset & Wealth Management in 2006 after 3 years as Executive
Assistant to the Management Board of Deutsche Bank. Previously, he served
as a Research Fellow at the Swiss Institute of Banking and Finance at the
University of St. Gallen (2000-2002) and as a Visiting Scholar in Capital
Markets Research at MIT Sloan School of Management (2002-2003).
o Portfolio manager for US and Global Value Equity: Frankfurt.
o PhD and MBA in Business Administration from the University of St. Gallen;
CEMS Master in International Management from the University of St. Gallen &
ESADE, Barcelona; completed bank training program ("Bankkaufmann") at Sal.
Oppenheim jr. & Cie. KGaA, Cologne.
FABIAN DEGEN, CFA, ASSISTANT VICE PRESIDENT. Portfolio Manager of the fund.
Began managing the fund in 2010.
o Joined Deutsche Asset & Wealth Management in 2007.
o Portfolio manager for US and Global Value Equity: Frankfurt.
o US and Global Fund Management: Frankfurt.
o Bachelor of International Business Administration in Investments and Finance
from the International University of Applied Sciences Bad Honnef, Bonn with
educational exchanges at the University of Maine (USA).
PETER STEFFEN, CFA, VICE PRESIDENT. Portfolio Manager of the fund. Began
managing the fund in 2010.
56
Fund Details
o Joined Deutsche Asset & Wealth Management in 2007.
o Portfolio manager for US and Global Value Equity: Frankfurt.
o Master's Degree ("Diplom-Kaufmann") in Finance and Asset Management from
International School of Management, Dortmund with educational exchanges at
the Universite de Neuch-tel (Switzerland) and the University of Colorado
(USA).
Each fund's Statement of Additional Information provides additional information
about a portfolio manager's investments in each fund, a description of the
portfolio management compensation structure and information regarding other
accounts managed.
57
Fund Details
[GRAPHIC APPEARS HERE]
Investing in the Funds
This prospectus offers the share classes noted on the front cover. Each class
has its own fees and expenses, offering you a choice of cost structures:
o CLASS A, B AND C SHARES are intended for investors seeking the advice and
assistance of a financial advisor, who will typically receive compensation
for those services.
o CLASS R AND S SHARES AND INSTITUTIONAL CLASS SHARES are only available to
particular investors or through certain programs, as described below.
The following pages tell you how to invest in a fund and what to expect as a
shareholder. The following pages also tell you about many of the services,
choices and benefits of being a shareholder. You'll also find information on
how to check the status of your account.
If you're investing directly with DWS Investments, all of this information
applies to you. If you're investing through a "third party provider" - for
example, a workplace retirement plan, financial supermarket or financial
advisor - your provider may have its own policies or instructions and you
should follow those.
You can find out more about the topics covered here by speaking with your
financial advisor or a representative of your workplace retirement plan or
other investment provider. For an analysis of the fees associated with an
investment in a fund or similar funds, please refer to
apps.finra.org/fundanalyzer/1/fa.aspx (this Web site does not form a part of
this prospectus).
CHOOSING A SHARE CLASS
Before you invest, take a moment to look over the characteristics of each share
class, so that you can be sure to choose the class that's right for you.
We describe each share class in detail on the following pages. But first, you
may want to look at the following table, which gives you a brief description
and comparison of the main features of each class. You should consult with your
financial advisor to determine which class of shares is appropriate for you.
Class B shares are closed to new purchases, except for exchanges and the
reinvestment of dividends or other distributions.
CLASSES AND FEATURES POINTS TO HELP YOU COMPARE
CLASS A
o Sales charge of up to 5.75% or o Some investors may be able to
4.50% charged when you buy reduce or eliminate their sales
shares charge; see "Class A Shares"
o In most cases, no charge when o Total annual expenses are
you sell shares lower than those for Class B or
Class C
o Up to 0.25% annual share-
holder servicing fee o Distributions are generally
higher than Class B or Class C
CLASS B
o No sales charge when you buy o The deferred sales charge rate
shares falls to zero after six years
o Closed to new investment o Shares automatically convert to
Class A after six years, which
o Deferred sales charge declining means lower annual expenses
from 4.00%, charged when you going forward
sell shares you bought within
the last six years o Distributions are generally
lower than Class A
o 0.75% annual distribution fee
and up to 0.25% annual share-
holder servicing fee
CLASS C
o No sales charge when you buy o The first year deferred sales
shares charge rate is lower for Class C
than Class B, but your shares
o Deferred sales charge of never automatically convert to
1.00%, charged when you sell Class A, so annual expenses
shares you bought within the remain higher than Class A
last year
o Distributions are generally
o 0.75% annual distribution fee lower than Class A
and up to 0.25% annual share-
holder servicing fee o Maximum investment applies
CLASS R
o No sales charge when you buy o Only available to participants in
shares certain retirement plans
o 0.25% annual distribution fee o Distributions are generally
and up to 0.25% annual share- higher than Class B and Class C
holder servicing fee but lower than Class A, Class S
or Institutional Class
INSTITUTIONAL CLASS
o No sales charge when you buy o Only available to certain institu-
shares and no deferred sales tional investors; typically
charge when you sell shares $1,000,000 minimum initial
investment
o Distributions are generally
higher than Class A, B, C and R,
and may be higher than Class
S, depending on relative
expenses
CLASS S
o No sales charge when you buy o Limited availability, see "Eligi-
shares and no deferred sales bility Requirements" under
charge when you sell shares "Class S Shares"
58
Investing in the Funds
CLASS A SHARES
Class A shares may make sense for long-term investors, especially those who are
eligible for a reduced or eliminated sales charge.
Class A shares have a 12b-1 plan, under which a shareholder servicing fee of up
to 0.25% is deducted from class assets each year. Because the shareholder
servicing fee is continuous in nature, it may, over time, increase the cost of
your investment and may cost you more than paying other types of sales charges.
Class A shares of DWS Global Equity Fund, DWS Emerging Markets Equity Fund, DWS
Global Small Cap Fund, DWS Latin America Equity Fund and DWS World Dividend
Fund have an up-front sales charge that varies with the amount you invest:
FRONT-END SALES FRONT-END SALES
CHARGE AS % CHARGE AS % OF YOUR
YOUR INVESTMENT OF OFFERING PRICE(1,2) NET INVESTMENT(2)
-------------------- ------------------------ --------------------
Under $50,000 5.75% 6.10%
-------------------- ----- -----
$ 50,000-$99,999 4.50 4.71
----------------- ----- -----
$100,000-$249,999 3.50 3.63
----------------- ----- -----
$250,000-$499,999 2.60 2.67
----------------- ----- -----
$500,000-$999,999 2.00 2.04
----------------- ----- -----
$1 million or more see below see below
-------------------- ------------------------ --------------------
Class A shares of DWS Enhanced Emerging Markets Fixed Income Fund and DWS
Enhanced Global Bond Fund have an up-front sales charge that varies with the
amount you invest:
FRONT-END SALES FRONT-END SALES
CHARGE AS A % CHARGE AS A % OF YOUR
YOUR INVESTMENT OF OFFERING PRICE(1,2) NET INVESTMENT(2)
-------------------- ------------------------ ----------------------
Under $100,000 4.50% 4.71%
-------------------- ----- -----
$100,000-$249,999 3.50 3.63
----------------- ----- -----
$250,000-$499,999 2.60 2.67
----------------- ----- -----
$500,000-$999,999 2.00 2.04
----------------- ----- -----
$1 million or more see below see below
-------------------- ------------------------ ----------------------
(1) The "offering price", the price you pay to buy shares, includes the sales
charge which will be deducted directly from your investment.
(2) Because of rounding in the calculation of the offering price, the actual
front-end sales charge paid by an investor may be higher or lower than
the percentages noted.
YOU MAY BE ABLE TO LOWER YOUR CLASS A SALES CHARGE IF:
o you indicate your intent in writing to invest at least $50,000 ($100,000 for
DWS Enhanced Emerging Markets Fixed Income Fund and DWS Enhanced Global
Bond Fund) in Class A shares (including Class A shares in other retail DWS
funds) over the next 24 months (Letter of Intent)
o the amount of Class A shares you already own (including Class A shares in
other retail DWS funds) plus the amount you're investing now in Class A
shares is at least $50,000 ($100,000 for DWS Enhanced Emerging Markets
Fixed Income Fund and DWS Enhanced Global Bond Fund) (Cumulative Discount)
o you are investing a total of $50,000 ($100,000 for DWS Enhanced Emerging
Markets Fixed Income Fund and DWS Enhanced Global Bond Fund) or more in
Class A shares of several retail DWS funds on the same day (Combined
Purchases)
The point of these three features is to let you count investments made at other
times or in certain other funds for purposes of calculating your present sales
charge. Any time you can use the privileges to "move" your investment into a
lower sales charge category, it's generally beneficial for you to do so.
For purposes of determining whether you are eligible for a reduced Class A
sales charge, you and your immediate family (your spouse or life partner and
your children or stepchildren age 21 or younger) may aggregate your investments
in the DWS family of funds. This includes, for example, investments held in a
retirement account, an employee benefit plan or at a financial advisor other
than the one handling your current purchase. These combined investments will be
valued at their current offering price to determine whether your current
investment qualifies for a reduced sales charge.
To receive a reduction in your Class A initial sales charge, you must let your
financial advisor or Shareholder Services know at the time you purchase shares
that you qualify for such a reduction. You may be asked by your financial
advisor or Shareholder Services to provide account statements or other
information regarding related accounts of you or your immediate family in order
to verify your eligibility for a reduced sales charge.
For more information about sales charge discounts, please visit
dws-investments.com (click on the link entitled "Fund Sales Charge and
Breakpoint Schedule"), consult with your financial advisor or refer to the
section entitled "Purchase or Redemption of Shares" in each fund's Statement of
Additional Information.
IN CERTAIN CIRCUMSTANCES, YOU MAY BE ABLE TO BUY CLASS A SHARES WITHOUT A SALES
CHARGE. For example, the sales charge will be waived if you are reinvesting
dividends or distributions or if you are exchanging an investment in Class A
shares of another fund in the DWS family of funds for an investment in Class A
shares. In addition, a sales charge waiver may apply to transactions by certain
retirement plans and certain other entities or persons (e.g., affiliated
persons of Deutsche Asset & Wealth Management or the DWS funds) and with
respect to certain types of investment programs (e.g., an investment advisory
or agency commission program under which you pay a fee to an investment advisor
or other firm for portfolio management or brokerage services or a no-load
network, platform or self-directed brokerage account offered by a financial
services firm that has entered into an agreement with DIDI that may or may not
charge you a transaction fee).
59
Investing in the Funds
Details regarding the types of investment programs and categories of investors
eligible for a sales charge waiver are provided in each fund's Statement of
Additional Information.
There are a number of additional provisions that apply in order to be eligible
for a sales charge waiver. Each fund may waive the sales charge for investors
in other situations as well. Your financial advisor or Shareholder Services can
answer your questions and help you determine if you are eligible.
IF YOU'RE INVESTING $1 MILLION OR MORE, either as a lump sum or through one of
the sales charge reduction features described above, you may be eligible to buy
Class A shares without a sales charge (Large Order NAV Purchase Privilege).
However, you may be charged a contingent deferred sales charge (CDSC) on any
shares you sell.
FOR DWS GLOBAL EQUITY FUND, DWS EMERGING MARKETS EQUITY FUND, DWS GLOBAL SMALL
CAP FUND, DWS LATIN AMERICA EQUITY FUND AND DWS WORLD DIVIDEND FUND,
investments of $1 million or more may be eligible to buy Class A shares without
a sales charge (load), but may be subject to a CDSC of 1.00% if redeemed within
12 months of purchase and 0.50% if redeemed within the following six months.
FOR DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND AND DWS ENHANCED GLOBAL
BOND FUND, investments of $1 million or more may be eligible to buy Class A
shares without a sales charge (load), but may be subject to a CDSC of 0.85% if
redeemed within 12 months of purchase and 0.50% if redeemed within the
following six months.
This CDSC is waived under certain circumstances (see "Policies About
Transactions"). Your financial advisor or Shareholder Services can answer your
questions and help you determine if you're eligible.
CLASS B SHARES
Class B shares of each fund are closed to new purchases, except that Class B
shares may continue to be purchased in connection with an exchange or the
reinvestment of dividends or other distributions (including the investment of
dividends and distributions from Class B shares of another DWS fund).
With Class B shares, you pay no up-front sales charge to a fund. Class B shares
have a 12b-1 plan, under which a distribution fee of 0.75% and a shareholder
servicing fee of up to 0.25% are deducted from class assets each year. This
means the annual expenses for Class B shares are somewhat higher (and their
performance correspondingly lower) compared to Class A shares. However, unlike
Class A shares, your entire investment goes to work immediately. After six
years, Class B shares automatically convert on a tax-free basis to Class A
shares, which has the net effect of lowering the annual expenses from the
seventh year on.
Class B shares have a CDSC. This charge declines over the years you own shares
and disappears completely after six years of ownership. But for any shares you
sell within those six years, you may be charged as follows:
YEAR AFTER YOU BOUGHT SHARES CDSC ON SHARES YOU SELL
----------------------------- ------------------------------
First year 4.00%
------------------------------ -----
Second or third year 3.00
------------------------------ -----
Fourth or fifth year 2.00
------------------------------ -----
Sixth year 1.00
------------------------------ -----
Seventh year and later None (automatic conversion to
------------------------------ Class A)
------------------------------
This CDSC is waived under certain circumstances (see "Policies About
Transactions"). Your financial advisor or Shareholder Services can answer your
questions and help you determine if you're eligible.
While Class B shares don't have any front-end sales charge, their higher annual
expenses mean that over the years you could end up paying more than the
equivalent of the maximum allowable front-end sales charge.
Except as noted above, no new purchases of Class B shares are allowed, whether
by new investors or existing shareholders, including purchases under an
automatic investment plan.
The closing of the Class B shares does not affect: (a) the right of
shareholders of Class B shares to continue to sell (redeem) their shares as
provided in this prospectus, subject to any applicable CDSC; or (b) the
automatic conversion of Class B shares to Class A shares six years after
purchase. Class B shares currently held will continue as Class B shares with
all Class B attributes, including 12b-1 fees, until sold or until their
automatic conversion to Class A shares.
Purchases by shareholders under Class B shares automatic investment plans
("AIPs") established on or prior to December 1, 2009 are automatically
continuing with Class A shares. Such shareholders are permitted to purchase
Class A shares at net asset value, without a sales charge, whether as part of
their AIP or otherwise. The foregoing applies only to purchases under (i) AIPs
established directly with DWS Investments ("DWS AIPs") and, (ii) provided they
have been identified as an AIP by DWS Investments, AIPs sponsored by others,
such as government direct deposit, employer sponsored payroll direct deposit
and auto-debit programs established with the shareholder's bank or credit union
("non-DWS AIP"). Shareholders with a non-DWS AIP established prior to December
1, 2009 are responsible for contacting DWS Investments (see phone number on the
back cover) to ensure that their account has been identified as an AIP in order
to benefit from this privilege and to avoid having their purchase orders
rejected.
Additionally, certain employer-sponsored employee benefit plans (known as "DWS
Investments Flex Plans") using the ExpertPlan subaccount record keeping system
maintained for DWS Investments-branded plans that were
60
Investing in the Funds
previously purchasing Class B shares instead are purchasing Class A shares at
net asset value, without a sales charge.
CLASS C SHARES
Class C shares may appeal to investors who aren't certain of their investment
time horizon.
With Class C shares, you pay no up-front sales charge to a fund. Class C shares
have a 12b-1 plan, under which a distribution fee of 0.75% and a shareholder
servicing fee of up to 0.25% are deducted from class assets each year. Because
of the distribution fee, the annual expenses for Class C shares are similar to
those of Class B shares, but higher than those for Class A shares (and the
performance of Class C shares is correspondingly lower than that of Class A
shares).
Unlike Class B shares, Class C shares do NOT automatically convert to Class A
shares after six years, so they continue to have higher annual expenses.
Class C shares have a CDSC, but only on shares you sell within one year of
buying them:
YEAR AFTER YOU BOUGHT SHARES CDSC ON SHARES YOU SELL
----------------------------- ------------------------
First year 1.00%
------------------------------ ----
Second year and later None
------------------------------ ----
This CDSC is waived under certain circumstances (see "Policies About
Transactions"). Your financial advisor or Shareholder Services can answer your
questions and help you determine if you're eligible.
While Class C shares do not have an up-front sales charge, their higher annual
expenses mean that, over the years, you could end up paying more than the
equivalent of the maximum allowable up-front sales charge.
Orders to purchase Class C shares in excess of $500,000 will be declined with
the exception of orders received from financial representatives acting for
clients whose shares are held in an omnibus account and certain employer-
sponsored employee benefit plans.
CLASS R SHARES
Class R shares have no initial sales charge or deferred sales charge. Class R
shares have a 12b-1 plan, under which a distribution fee of 0.25% and a
shareholder servicing fee of up to 0.25% are deducted from class assets each
year. Because distribution fees are continuous in nature, these fees may, over
time, increase the cost of your investment and may cost you more than paying
other types of sales charges.
ELIGIBILITY REQUIREMENTS. You may buy Class R shares if you are a participant
in certain retirement plan platforms that offer Class R shares of the fund
through a plan level or omnibus account, including:
o Section 401(a) and 457 plans
o Certain section 403(b)(7) plans
o 401(k), profit sharing, money purchase pension and defined benefit plans
o Non-qualified deferred compensation plans
o Individual Retirement Accounts (IRAs)
INSTITUTIONAL CLASS SHARES
You may buy Institutional Class shares through your securities dealer or
through any financial institution that is authorized to act as a shareholder
servicing agent ("financial advisor"). Contact them for details on how to place
and pay for your order.
ELIGIBILITY REQUIREMENTS. You may buy Institutional Class shares if you are any
of the following (subject to the applicable investment minimum):
o An eligible institution (e.g., a financial institution, corporation, trust,
estate or educational, religious or charitable institution).
o An employee benefit plan.
o A plan administered as a college savings plan under Section 529 of the
Internal Revenue Code.
o A registered investment advisor or financial planner purchasing on behalf of
clients and charging an asset-based or hourly fee.
o A client of the private banking division of Deutsche Bank AG.
o A current or former director or trustee of the Deutsche or DWS mutual funds.
o An employee, the employee's spouse or life partner and children or
stepchildren age 21 or younger of Deutsche Bank or its affiliates or a
subadvisor to any fund in the DWS family of funds or a broker-dealer
authorized to sell shares in the funds.
INVESTMENT MINIMUM
The minimum initial investment is waived for:
o Investment advisory affiliates of Deutsche Bank Securities, Inc., DWS funds
or Deutsche funds purchasing shares for the accounts of their investment
advisory clients.
o Employee benefit plans with assets of at least $50 million.
o Clients of the private banking division of Deutsche Bank AG.
o Institutional clients and qualified purchasers that are clients of a
division of Deutsche Bank AG.
o A current or former director or trustee of the Deutsche or DWS funds.
o An employee, the employee's spouse or life partner and children or
stepchildren age 21 or younger of Deutsche Bank or its affiliates or a
subadvisor to any fund in the DWS family of funds or a broker-dealer
authorized to sell shares of the funds.
o Registered investment advisors who trade through platforms approved by the
Advisor and whose client assets in the aggregate meet or, in the Advisor's
judgment, will meet within a reasonable period of time, the $1,000,000
minimum investment.
61
Investing in the Funds
o Employee benefit plan platforms approved by the Advisor that invest in a
fund through an omnibus account that meets or, in the Advisor's judgment,
will meet within a reasonable period of time, the $1,000,000 minimum
investment.
o Shareholders with existing accounts prior to August 13, 2004 who met the
previous minimum investment eligibility requirement.
Each fund reserves the right to modify the above eligibility requirements and
investment minimum requirements at any time. In addition, each fund, in its
discretion, may waive the minimum initial investment for specific employee
benefit plans (or family of plans) whose aggregate investment in Institutional
Class shares of a fund equals or exceeds the minimum initial investment amount
but where a particular plan or program may not on its own meet such minimum
amount.
CLASS S SHARES
Class S shares are principally available to new investors through fee-based
programs of investment dealers that have special agreements with each fund's
distributor, through certain group retirement plans and through certain
registered investment advisors. These dealers and advisors typically charge
ongoing fees for services they provide.
ELIGIBILITY REQUIREMENTS. Class S shares of a fund are offered at net asset
value without a sales charge to certain eligible investors as described below.
The following investors may purchase Class S shares of DWS funds either (i)
directly from DIDI, each fund's principal underwriter; or (ii) through an
intermediary relationship with a financial services firm established with
respect to the DWS funds as of December 31, 2004:
o Existing shareholders of Class S shares of any DWS fund and household
members residing at the same address may purchase Class S shares of such
fund and may open new individual accounts for Class S shares of any DWS
fund. (This provision applies to persons who in the future become Class S
shareholders under one of the eligibility provisions in this paragraph but
is not applicable to investors or participants holding Class S shares
through the fee based, retirement or other programs or plans referred to in
the next paragraph unless otherwise provided below.)
o A person who certifies that they are a participant in a "DWS retirement
plan" may purchase Class S shares apart from the participant's plan. For
this purpose, a DWS retirement plan is defined as an employer sponsored
employee benefit plan made available through ADP, Inc. and/or its
affiliates, or ExpertPlan, Inc. under an alliance between one of these two
firms and DWS Investments or its affiliates.
o A person who certifies that they are a participant who owns Class S shares
of any DWS fund through a retirement, employee stock, bonus, pension or
profit sharing plan may purchase Class S shares apart from the
participant's plan.
o Any participant in any employer sponsored retirement, employee stock, bonus,
pension or profit sharing plan may purchase Class S shares in connection
with a rollover of a distribution from a plan to a DWS Investments IRA made
through a rollover facilitator having a relationship with DWS Investments.
o Any person that has an existing account with Deutsche Bank Private Wealth
Management ("PWM") but who no longer meets the eligibility requirements to
maintain an account with PWM may open a new account in Class S shares of
any DWS fund.
o Class S shares are available to accounts managed by the Advisor, any
advisory products offered by the Advisor or DIDI and to DWS Target Date
Series or other funds-of-funds managed by the Advisor or its affiliates.
o A person who certifies that they are a former employee of the Advisor or one
of its affiliates may purchase Class S shares in connection with a rollover
of a distribution from a Deutsche Bank employee benefit plan to a DWS
Investments IRA.
o Fund Board Members and their family members and full-time employees of
the Advisor and its affiliates and their family members may purchase Class
S shares.
The following additional investors may purchase Class S shares of DWS funds in
connection with certain programs or plans.
o Broker-dealers, banks and registered investment advisors ("RIAs") in
connection with a comprehensive or "wrap" fee program or other fee based
program.
o Any group retirement, employee stock, bonus, pension or profit-sharing
plans.
o Plans administered as college savings plans under Section 529 of the
Internal Revenue Code.
o Persons who purchase shares through a Health Savings Account or a Voluntary
Employees' Benefit Association ("VEBA") Trust.
DIDI may, at its discretion, require appropriate documentation that shows an
investor is eligible to purchase Class S shares.
BUYING, EXCHANGING AND SELLING SHARES
The following information applies to Class A, B, C, Institutional and S shares.
For Class R shares, please see "How to Buy, Sell and Exchange Class R Shares"
or consult your retirement plan administrator.
TO CONTACT DWS INVESTMENTS
BY PHONE
(800) 728-3337
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Investing in the Funds
BY MAIL
TYPE ADDRESS
----------------- ------------------------------------------------
EXPEDITED MAIL
All Requests DWS Investments
----------------- Attn: (see department names under Regular mail)
210 West 10th Street
Kansas City, MO 64105-1614
------------------------------------------------
REGULAR MAIL
New Accounts DWS Investments
Attn: New Applications
P.O. Box 219356
Kansas City, MO 64121-9356
Additional DWS Investments
Investments Attn: Purchases
P.O. Box 219154
Kansas City, MO 64121-9154
Exchanges and DWS Investments
Redemptions Attn: Transaction Processing
P.O. Box 219557
Kansas City, MO 64121-9557
HOW TO BUY SHARES
Please note that your account cannot be opened until we receive a completed
account application.
MINIMUM INITIAL INVESTMENT ($)
AUTOMATIC
UGMAS/ INVESTMENT
NON-IRA IRAS UTMAS PLANS
------------ -------------- -------- ------------------
A B C 1,000 500 1,000 500
------- ----- --- ----- ---
INST 1,000,000 N/A N/A N/A
------- --------- ---- ----- ----
S 2,500 1,000 1,000 1,000
------- --------- ----- ----- -----
For participants in all group retirement plans, and in certain fee-based and
wrap programs approved by the Advisor, there is no minimum initial investment
and no minimum additional investment for Class A, C and S shares. For Section
529 college savings plans, there is no minimum initial investment and no
minimum additional investment for Class S shares. In certain instances, the
minimum initial investment may be waived for Institutional Class shares. There
is no minimum additional investment for Institutional Class shares. Because
Class B shares are closed to new investment, existing Class B shareholders may
purchase Class A and C shares with a minimum initial investment of $50. The
minimum additional investment in all other instances is $50.
THROUGH A FINANCIAL ADVISOR
Contact your financial advisor to obtain a new account application or for
instructions about how to set up a new account. Your advisor can also assist
with making additional investments into an existing account.
BY MAIL OR EXPEDITED MAIL
To establish an account, simply complete the appropriate application and mail
it to the address provided on the form. With your application, include your
check made payable to "DWS Investments" for the required initial minimum
investment for the share class you have selected.
Once your account is established, to make additional investments, send a check
made payable to "DWS Investments" and an investment slip to the appropriate
address. If you do not have an investment slip, include a letter with your
name, account number, the full fund name and share class, and your investment
instructions. If your check fails to clear, the fund has the right to cancel
your order, hold you liable or charge you or your account for any losses or
fees the fund or its agents have incurred.
BY AUTOMATIC INVESTMENT PLAN (NOT AVAILABLE FOR INSTITUTIONAL CLASS SHARES)
If you wish to take advantage of the lower initial investment minimums by
establishing an Automatic Investment Plan, make sure to complete that section
on the new account application and attach a voided check for the bank account
from which the funds will be drawn. Subsequent investments are made
automatically from the shareholder's account at a bank, savings and loan or
credit union into the shareholder's fund account. The maximum Automatic
Investment Plan investment is $250,000. Termination by a shareholder will
become effective within thirty days after DWS Investments has received the
request. Each fund may immediately terminate a shareholder's Automatic
Investment Plan in the event that any item is unpaid by the shareholder's
financial institution.
OTHER WAYS TO BUY SHARES
The following privileges must be established on your account before an
investment request is made. This can either be done by completing the
applicable section(s) on the new account application or by contacting a
customer service representative for instructions and any required paperwork.
BY PHONE USING QUICKBUY (FOR ADDITIONAL INVESTMENTS ONLY). Call DWS Investments
and use our automated system to place your QuickBuy purchase using the
Automated Clearing House system (ACH), or choose to be transferred to a
customer service representative to complete your request. Transactions take two
to three days to be completed and there is a $50 minimum and a $250,000
maximum.
ON THE INTERNET (FOR ADDITIONAL INVESTMENTS ONLY). Register at
dws-investments.com to set up on-line access to your account(s). Or, log in to
the Web site if you have previously registered. Follow the instructions on the
Web site to request a purchase with money from the bank account you have
established on your DWS account(s).
BY WIRE (FOR ADDITIONAL INSTITUTIONAL CLASS INVESTMENTS ONLY). You may buy
shares by wire only if your account is authorized to do so. Please note that
you or your financial advisor must call us in advance of a wire transfer
purchase. After you inform us of the amount of your purchase, you will receive
a trade confirmation number. Instruct your bank to send payment by wire using
the wire instructions noted below. All wires must be received by 4:00 p.m.
Eastern time the next business day following your purchase. If your wire is not
received by 4:00 p.m.
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Investing in the Funds
Eastern time on the next business day after the fund receives your request to
purchase shares, your transaction will be canceled at your expense and risk.
WIRE DETAILS
Bank name State Street Bank Boston
--------------- --------------------------------
Routing Number 011000028
---------------- ---------
Attention DWS Investments
---------------- --------------------------------
DDA Number 9903-5552
---------------- ---------
FBO (Account name) (Account number)
---------------- -------------------------------
Credit (Fund name, Fund number and, if
---------------- applicable, class name)
--------------------------------
Refer to your account statement for the account name and number. Wire transfers
normally take two or more hours to complete. Wire transfers may be restricted
on holidays and at certain other times.
HOW TO EXCHANGE SHARES
REQUIREMENTS AND LIMITS
CLASS EXCHANGING INTO ANOTHER FUND ($)
------- -----------------------------------------------
A B C 1,000 minimum into new non-IRA accounts per
------- fund
500 minimum into new IRA accounts per fund
50 minimum into all existing accounts per fund
-----------------------------------------------
INST 1,000,000 minimum into new accounts per fund
------- -----------------------------------------------
S 2,500 minimum into new non-IRA accounts per
------- fund
1,000 minimum into new IRA and UTMA/UGMA
accounts per fund
50 minimum into all existing accounts per fund
-----------------------------------------------
Exchanges between funds are allowed between like share classes only.
In addition to what is detailed below, your financial advisor can assist you
with exchanging shares. Please contact your financial advisor using the method
that is most convenient for you.
BY PHONE
Call DWS Investments and use our automated system to place your exchange, or
choose to be transferred to a customer service representative to complete your
request. For accounts with $5,000 or more, you may also establish a Systematic
Exchange Plan of a minimum of $50 to another DWS fund on a regular basis. A
representative can assist you with establishing this privilege.
ON THE INTERNET
Register at dws-investments.com to set up on-line access to your account(s).
Or, log in to the Web site if you have previously registered. Follow the
instructions on the Web site to request an exchange to another DWS fund.
BY MAIL OR EXPEDITED MAIL
Write a letter that includes the following information: the name(s) of all
owners and address as they appear on your account, the fund name, share class,
and account number from which you want to exchange, the dollar amount or number
of shares you wish to exchange, and the name of the fund into which you want to
exchange. Also include a daytime telephone number if we have any questions. All
owners should sign the letter and it should be mailed to the appropriate
address for exchanges and redemptions.
HOW TO SELL SHARES
REQUIREMENTS AND LIMITS
SELLING SHARES ($)
--------------------------------------------
A B C Check redemption:
------- Up to 100,000. More than 100,000 see
"Signature Guarantee"
QuickSell to your bank: Minimum 50, maximum
250,000
Wire redemption to your bank: Minimum 1,000
--------------------------------------------
INST Same as Classes A, B and C
------- --------------------------------------------
S Same as Classes A, B and C
------- --------------------------------------------
In addition to what is detailed below, your financial advisor can assist you
with selling shares. Please contact your financial advisor using the method
that is most convenient for you.
BY PHONE
Call DWS Investments and use our automated system, or choose to be transferred
to a customer service representative to complete your request. You may request
a check for the redemption amount sent to the address on the account.
OTHER WAYS TO SELL SHARES
The following privileges must be established on your account before a
redemption request is made. This can either be done by completing the
applicable section(s) on the new account application when you establish your
account or by contacting a customer service representative for instructions and
any required paperwork to add them to an existing account. Depending on the
method you choose to request these redemptions, different transaction maximums
may apply.
BY PHONE USING QUICKSELL. Call DWS Investments and use our automated system to
request a QuickSell redemption, or choose to be transferred to a customer
service representative (see table for applicable minimum and maximum amounts).
The proceeds are sent via the Automated Clearing House system (ACH) to your
bank. Transactions generally take two to three days to be completed. For
accounts with $5,000 or more, you may also establish a Systematic Withdrawal
Plan of a minimum of $50 to be sent on a regular basis as you direct. The
$5,000 value does not apply to IRA accounts.
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Investing in the Funds
ON THE INTERNET. Register at dws-investments.com to set up on-line access to
your account(s). Or, log in to the Web site if you have previously registered.
Follow the instructions on the Web site to request a redemption from your
account using the desired method from your available options.
BY MAIL OR EXPEDITED MAIL. Write a letter that includes the following
information: the name(s) of all owners and address as they appear on your
account, the fund name, share class, and account number from which you want to
sell shares, the dollar amount or number of shares you wish to sell, and a
daytime telephone number if we have questions. All owners should sign the
letter and it should be mailed to the appropriate address.
Some redemptions can only be ordered in writing with a Medallion Signature
Guarantee. For more information, please contact DWS Investments (see phone
number on the back cover).
BY WIRE. You may sell shares by wire only if your account is authorized to do
so. You will be paid for redeemed shares by wire transfer of funds to your
financial advisor or bank upon receipt of a duly authorized redemption request
as promptly as feasible. For your protection, you may not change the
destination bank account over the phone. To sell by wire, call DWS Investments
and either use the automated system or speak with a customer service
representative to request your redemption. After you inform us of the amount of
your redemption, you will receive a trade confirmation number. We must receive
your order by 4:00 p.m. Eastern time to wire to your account the next business
day.
HOW TO BUY, SELL AND EXCHANGE CLASS R SHARES
If your plan sponsor has selected Class R shares as an investment option, you
may buy Class R shares through your securities dealer or through any financial
institution that is authorized to act as a shareholder servicing agent
("shareholder servicing agent"). Contact them for details on how to enter and
pay for your order. Shareholder servicing agents include brokers, financial
representatives or any other bank, dealer or other institution that have a
sub-shareholder servicing agreement with the funds.
Shareholder servicing agents may charge additional fees to investors for those
services not otherwise included in their sub-distribution or servicing
agreement, such as cash management or special trust or retirement investment
reporting. In addition, the Advisor or administrator may provide compensation
to shareholder servicing agents for distribution, administrative and
promotional services.
There is no minimum investment with respect to Class R shares.
Instructions for buying and selling shares must generally be submitted by a
retirement plan administrator, not by plan participants for whose benefit the
shares are held. Please contact your shareholder servicing agent for more
information on how to open a fund account.
IRA ROLLOVERS. You may complete a direct rollover from a retirement plan
offering Class R shares to a DWS IRA account by reinvesting up to the full
amount of your distribution in Class A shares of any DWS fund at net asset
value. Subsequent purchases of Class A shares will be made at the public
offering price as described in the prospectus for Class A shares. Please note
that if you terminate your participation in a retirement plan and transfer all
of your Class R shares, you will lose the privilege of purchasing Class R
shares in the future. Rollovers to a DWS Class R share IRA are not permitted.
FINANCIAL INTERMEDIARY SUPPORT PAYMENTS
The Advisor, the Distributor and/or their affiliates may pay additional
compensation, out of their own assets and not as an additional charge to each
fund, to selected affiliated and unaffiliated brokers, dealers, participating
insurance companies or other financial intermediaries ("financial advisors") in
connection with the sale and/or distribution of fund shares or the retention
and/or servicing of fund investors and fund shares ("revenue sharing"). Such
revenue sharing payments are in addition to any distribution or service fees
payable under any Rule 12b-1 or service plan of each fund, any record
keeping/sub-transfer agency/
networking fees payable by each fund (generally through the Distributor or an
affiliate) and/or the Distributor or Advisor to certain financial advisors for
performing such services and any sales charge, commissions, non-cash
compensation arrangements expressly permitted under applicable rules of the
Financial Industry Regulatory Authority or other concessions described in the
fee table or elsewhere in this prospectus or the Statement of Additional
Information as payable to all financial advisors. For example, the Advisor, the
Distributor and/or their affiliates may compensate financial advisors for
providing a fund with "shelf space" or access to a third party platform or fund
offering list or other marketing programs, including, without limitation,
inclusion of the fund on preferred or recommended sales lists, mutual fund
"supermarket" platforms and other formal sales programs; granting the
Distributor access to the financial advisor's sales force; granting the
Distributor access to the financial advisor's conferences and meetings;
assistance in training and educating the financial advisor's personnel; and
obtaining other forms of marketing support.
The level of revenue sharing payments made to financial advisors may be a fixed
fee or based upon one or more of the following factors: gross sales, current
assets and/or number of accounts of each fund attributable to the financial
advisor, the particular fund or fund type or other
65
Investing in the Funds
measures as agreed to by the Advisor, the Distributor and/or their affiliates
and the financial advisors or any combination thereof. The amount of these
revenue sharing payments is determined at the discretion of the Advisor, the
Distributor and/or their affiliates from time to time, may be substantial, and
may be different for different financial advisors based on, for example, the
nature of the services provided by the financial advisor.
The Advisor, the Distributor and/or their affiliates currently make revenue
sharing payments from their own assets in connection with the sale and/or
distribution of DWS fund shares or the retention and/or servicing of investors
and DWS fund shares to financial advisors in amounts that generally range from
0.01% up to 0.56% of assets of each fund serviced and maintained by the
financial advisor, 0.05% to 0.25% of sales of each fund attributable to the
financial advisor, a flat fee of up to $60,000, or any combination thereof.
These amounts are subject to change at the discretion of the Advisor, the
Distributor and/or their affiliates. Receipt of, or the prospect of receiving,
this additional compensation may influence your financial advisor's
recommendation of each fund or of any particular share class of each fund. You
should review your financial advisor's compensation disclosure and/or talk to
your financial advisor to obtain more information on how this compensation may
have influenced your financial advisor's recommendation of each fund.
Additional information regarding these revenue sharing payments is included in
each fund's Statement of Additional Information, which is available to you on
request at no charge (see the back cover of this prospectus for more
information on how to request a copy of the Statement of Additional
Information).
The Advisor, the Distributor and/or their affiliates may also make such revenue
sharing payments to financial advisors under the terms discussed above in
connection with the distribution of both DWS funds and non-DWS funds by
financial advisors to retirement plans that obtain record keeping services from
ADP, Inc. or ExpertPlan Inc. on the DWS Investments branded retirement plan
platform (the "Platform") with the level of revenue sharing payments being
based upon sales of both the DWS funds and the non-DWS funds by the financial
advisor on the Platform or current assets of both the DWS funds and the non-DWS
funds serviced and maintained by the financial advisor on the Platform.
It is likely that broker-dealers that execute portfolio transactions for each
fund will include firms that also sell shares of the DWS funds to their
customers. However, the Advisor will not consider sales of DWS fund shares as a
factor in the selection of broker-dealers to execute portfolio transactions for
the DWS funds. Accordingly, the Advisor has implemented policies and procedures
reasonably designed to prevent its traders from considering sales of DWS fund
shares as a factor in the selection of broker-dealers to execute portfolio
transactions for each fund. In addition, the Advisor, the Distributor and/or
their affiliates will not use fund brokerage to pay for their obligation to
provide additional compensation to financial advisors as described above.
POLICIES YOU SHOULD KNOW ABOUT
Along with the information on the previous pages, the policies below may affect
you as a shareholder. Some of this information, such as the section on
distributions and taxes, applies to all investors, including those investing
through a financial advisor.
If you are investing through a financial advisor or through a retirement plan,
check the materials you received from them about how to buy and sell shares
because particular financial advisors or other intermediaries may adopt
policies, procedures or limitations that are separate from those described in
this prospectus. Please note that a financial advisor may charge fees separate
from those charged by a fund and may be compensated by a fund.
POLICIES ABOUT TRANSACTIONS
EACH FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange is open.
Each fund calculates its share price for each class every business day, as of
the close of regular trading on the New York Stock Exchange (typically 4:00
p.m. Eastern time, but sometimes earlier, as in the case of scheduled half-day
trading or unscheduled suspensions of trading). You can place an order to buy
or sell shares at any time.
To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account. When
you open an account, we will ask for your name, address, date of birth and
other information that will allow us to identify you. Some or all of this
information will be used to verify the identity of all persons opening an
account.
We might request additional information about you (which may include certain
documents, such as articles of incorporation for companies) to help us verify
your identity and, in some cases, more information and/or documents may be
required to conduct the verification. The information and documents will be
used solely to verify your identity.
We will attempt to collect any missing required and requested information by
contacting you or your financial advisor. If we are unable to obtain this
information within the time frames established by each fund, then we may reject
your application and order.
Each fund will not invest your purchase until all required and requested
identification information has been provided and your application has been
submitted in "good order." After we receive all the information, your
application is deemed to be in good order and we accept your purchase, you will
receive the share price next calculated.
66
Investing in the Funds
If we are unable to verify your identity within time frames established by each
fund, after a reasonable effort to do so, you will receive written
notification.
With certain limited exceptions, only US residents may invest in each fund.
Because orders placed through a financial advisor must be forwarded to the
transfer agent before they can be processed, you'll need to allow extra time.
Your financial advisor should be able to tell you approximately when your order
will be processed. It is the responsibility of your financial advisor to
forward your order to the transfer agent in a timely manner.
SUB-MINIMUM BALANCES FOR CLASS A, B AND C. Each fund may close your account and
send you the proceeds if your balance falls below $1,000 ($500 for accounts
with an Automatic Investment Plan funded with $50 or more per month in
subsequent investments), or below $250 for retirement accounts. We will give
you 60 days' notice (90 days for retirement accounts) so you can either
increase your balance or close your account (these policies don't apply to
investors with $100,000 or more in DWS fund shares, investors in certain
fee-based and wrap programs offered through certain financial intermediaries
approved by the Advisor, or group retirement plans and certain other accounts
having lower minimum share balance requirements).
SUB-MINIMUM BALANCES FOR INSTITUTIONAL CLASS. Each fund may redeem your shares
and close your account on 60 days' notice if it fails to meet the minimum
account balance requirement of $1,000,000 for any reason.
SUB-MINIMUM BALANCES FOR CLASS S. Each fund may close your account and send you
the proceeds if your balance falls below $2,500 ($1,000 with an Automatic
Investment Plan funded with $50 or more per month in subsequent investments);
or below $250 for retirement accounts. We will give you 60 days' notice (90
days for retirement accounts) so you can either increase your balance or close
your account (these policies don't apply to investors with $100,000 or more in
DWS fund shares, investors in certain fee-based and wrap programs offered
through certain financial intermediaries approved by the Advisor, or group
retirement plans and certain other accounts having lower minimum share balance
requirements).
ACCOUNT MAINTENANCE FEE FOR CLASSES A, B, C AND S. Each fund charges a $20
account maintenance fee for each fund account that has a balance below $10,000.
Except as otherwise noted below, fund accounts are not aggregated by share
class or fund. The assessment will occur once per calendar year and may be
assessed through the automatic redemption of fund shares in your account. The
fee will be assessed on each fund account that falls below the minimum for any
reason, including market value fluctuations, redemptions or exchanges.
The account maintenance fee will not apply to: (i) accounts with an automatic
investment plan; (ii) accounts held in an omnibus account through a financial
services firm; (iii) accounts maintained on behalf of participants in certain
fee based and wrap programs offered through certain financial intermediaries
approved by the Advisor; (iv) participant level accounts in group retirement
plans held on the records of a retirement plan record keeper; (v) accounts held
by shareholders who maintain $100,000 or more in aggregate assets in DWS fund
shares; (vi) shareholders who consent to electronic delivery for all documents
(which include statements, prospectuses, annual and semi-annual reports, and
other materials), except for tax forms; (vii) Uniform Gift to Minors (UGMA) and
Uniform Transfer to Minors (UTMA) accounts; (viii) Coverdell Education Savings
Account (ESA) accounts; and (ix) IRA accounts for shareholders beginning in the
year in which they turn age 70 1/2. You may elect to receive electronic
delivery of DWS fund materials by registering on dws-investments.com or by
calling the telephone number on the back cover.
MARKET TIMING POLICIES AND PROCEDURES. Short-term and excessive trading of fund
shares may present risks to long-term shareholders, including potential
dilution in the value of fund shares, interference with the efficient
management of a fund's portfolio (including losses on the sale of investments),
taxable gains to remaining shareholders and increased brokerage and
administrative costs. These risks may be more pronounced if a fund invests in
certain securities, such as those that trade in foreign markets, are illiquid
or do not otherwise have "readily available market quotations." Certain
investors may seek to employ short-term trading strategies aimed at exploiting
variations in portfolio valuation that arise from the nature of the securities
held by a fund (e.g., "time zone arbitrage"). Each fund discourages short-term
and excessive trading and has adopted policies and procedures that are intended
to detect and deter short-term and excessive trading.
Pursuant to its policies, each fund will impose a 2% redemption fee on fund
shares held for less than a specified holding period (subject to certain
exceptions discussed below under "Redemption fees"). Each fund also reserves
the right to reject or cancel a purchase or exchange order for any reason
without prior notice. For example, a fund may in its discretion reject or
cancel a purchase or an exchange order even if the transaction is not subject
to the specific roundtrip transaction limitation described below if the Advisor
believes that there appears to be a pattern of short-term or excessive trading
activity by a shareholder or deems any other trading activity harmful or
disruptive to a fund. Each fund, through its Advisor and transfer agent, will
measure short-term and excessive trading by the number of roundtrip
transactions within a shareholder's account during a rolling 12-month period. A
"roundtrip" transaction is defined as any combination of purchase and
redemption activity (including exchanges) of the same fund's shares. Each fund
may take
67
Investing in the Funds
other trading activity into account if a fund believes such activity is of an
amount or frequency that may be harmful to long-term shareholders or disruptive
to portfolio management.
Shareholders are limited to four roundtrip transactions in the same DWS fund
(excluding money market funds) over a rolling 12-month period. Shareholders
with four or more roundtrip transactions in the same DWS fund within a rolling
12-month period generally will be blocked from making additional purchases of,
or exchanges into, that DWS fund for 12 months. Each fund reserves the right to
extend or maintain a block beyond 12 months if it deems that the shareholder's
activity was harmful to the fund, or that the pattern of activity suggests a
pattern of abuse. The rights of a shareholder to redeem shares of a DWS fund
are not affected by the four roundtrip transaction limitation, but all
redemptions remain subject to each fund's redemption fee policy (see
"Redemption fees" described below).
Each fund may make exceptions to the roundtrip transaction policy for certain
types of transactions if, in the opinion of the Advisor, the transactions do
not represent short-term or excessive trading or are not abusive or harmful to
a fund, such as, but not limited to, systematic transactions, required minimum
retirement distributions, transactions initiated by a fund or administrator and
transactions by certain qualified funds-of-funds.
In certain circumstances where shareholders hold shares of a fund through a
financial intermediary, a fund may rely upon the financial intermediary's
policy to deter short-term or excessive trading if the Advisor believes that
the financial intermediary's policy is reasonably designed to detect and deter
transactions that are not in the best interests of a fund. A financial
intermediary's policy relating to short-term or excessive trading may be more
or less restrictive than the DWS funds' policy, may permit certain transactions
not permitted by the DWS funds' policies, or prohibit transactions not subject
to the DWS funds' policies.
The Advisor may also accept undertakings from a financial intermediary to
enforce short-term or excessive trading policies on behalf of a fund that
provide a substantially similar level of protection for each fund against such
transactions. For example, certain financial intermediaries may have
contractual, legal or operational restrictions that prevent them from blocking
an account. In such instances, the financial intermediary may use alternate
techniques that the Advisor considers to be a reasonable substitute for such a
block.
In addition, if a fund invests some portion of its assets in foreign
securities, it has adopted certain fair valuation practices intended to protect
the fund from "time zone arbitrage" with respect to its foreign securities
holdings and other trading practices that seek to exploit variations in
portfolio valuation that arise from the nature of the securities held by a
fund. (See "How each fund calculates share price.")
There is no assurance that these policies and procedures will be effective in
limiting short-term and excessive trading in all cases. For example, the
Advisor may not be able to effectively monitor, detect or limit short-term or
excessive trading by underlying shareholders that occurs through omnibus
accounts maintained by broker-dealers or other financial intermediaries. The
Advisor reviews trading activity at the omnibus level to detect short-term or
excessive trading. If the Advisor has reason to suspect that short-term or
excessive trading is occurring at the omnibus level, the Advisor will contact
the financial intermediary to request underlying shareholder level activity.
Depending on the amount of fund shares held in such omnibus accounts (which may
represent most of a fund's shares) short-term and/or excessive trading of fund
shares could adversely affect long-term shareholders in a fund. If short-term
or excessive trading is identified, the Advisor will take appropriate action.
Each fund's market timing policies and procedures may be modified or terminated
at any time.
REDEMPTION FEES. Each fund imposes a redemption fee of 2% of the total
redemption amount (calculated at net asset value, without regard to the effect
of any contingent deferred sales charge; any contingent deferred sales charge
is also assessed on the total redemption amount without regard to the
assessment of the 2% redemption fee) on all fund shares redeemed or exchanged
within 15 days of buying them (either by purchase or exchange). The redemption
fee is paid directly to the fund and is designed to encourage long-term
investment and to offset transaction and other costs associated with short-term
or excessive trading. For purposes of determining whether the redemption fee
applies, shares held the longest time will be treated as being redeemed first
and shares held the shortest time will be treated as being redeemed last.
The redemption fee is applicable to fund shares purchased either directly or
through a financial intermediary, such as a broker-dealer. Transactions through
financial intermediaries typically are placed with the fund on an omnibus basis
and include both purchase and sale transactions placed on behalf of multiple
investors. These purchase and sale transactions are generally netted against
one another and placed on an aggregate basis; consequently the identities of
the individuals on whose behalf the transactions are placed generally are not
known to the fund. For this reason, the fund has undertaken to notify financial
intermediaries of their obligation to assess the redemption fee on customer
accounts and to collect and remit the proceeds to the fund. However, due to
operational requirements, the intermediaries' methods for tracking and
calculating the fee may be inadequate or differ in some respects from the
fund's. Subject to approval by the Advisor or each fund's Board, intermediaries
who transact
68
Investing in the Funds
business on an omnibus basis may implement the redemption fees according to
their own operational guidelines (which may be different than the funds'
policies) and remit the fees to the funds.
The redemption fee will not be charged in connection with the following
exchange or redemption transactions: (i) transactions on behalf of participants
in certain research wrap programs; (ii) transactions on behalf of a shareholder
to return any excess IRA contributions to the shareholder; (iii) transactions
on behalf of a shareholder to effect a required minimum distribution on an IRA;
(iv) transactions on behalf of a shareholder in a plan administered as a
college savings plan under Section 529 of the Internal Revenue Code; (v)
transactions on behalf of any mutual fund advised by the Advisor and its
affiliates (e.g., "funds of funds") or, in the case of a master/feeder
relationship, redemptions by the feeder fund from the master portfolio; (vi)
transactions on behalf of certain unaffiliated mutual funds operating as funds
of funds; (vii) transactions following death or disability of any registered
shareholder, beneficial owner or grantor of a living trust with respect to
shares purchased before death or disability; (viii) transactions involving
hardship of any registered shareholder; (ix) systematic transactions with
pre-defined trade dates for purchases, exchanges or redemptions, such as
automatic account rebalancing, or loan origination and repayments; (x)
transactions involving shares purchased through the reinvestment of dividends
or other distributions; (xi) transactions involving shares transferred from
another account in the same fund or converted from another class of the same
fund (the redemption fee period will carry over to the acquired shares); (xii)
transactions initiated by a fund or administrator (e.g., redemptions for not
meeting account minimums, to pay account fees funded by share redemptions, or
in the event of the liquidation or merger of the fund); or (xiii) transactions
in cases when there are legal or contractual limitations or restrictions on the
imposition of the redemption fee (as determined by a fund or its agents in
their sole discretion). It is the policy of the DWS funds to permit approved
fund platform providers to execute transactions in shares of the funds without
the imposition of a redemption fee if such providers have implemented
alternative measures that are determined by the Advisor to provide controls on
short-term and excessive trading that are comparable to the DWS funds'
policies.
THE AUTOMATED INFORMATION LINE is available 24 hours a day by calling DWS
Investments at the phone number on the back cover. You can use our automated
phone service to get information on DWS funds generally and on accounts held
directly at DWS Investments. You can also use this service to request share
transactions.
TELEPHONE AND ELECTRONIC TRANSACTIONS. Generally, you are automatically
entitled to telephone redemption and exchange privileges, but you may elect not
to have them when you open your account or by calling the appropriate phone
number on the back cover.
Since many transactions may be initiated by telephone or electronically, it's
important to understand that as long as we take reasonable steps to ensure that
an order to purchase or redeem shares is genuine, such as recording calls or
requesting personal security information, we are not responsible for any losses
that may occur as a result. For transactions conducted over the Internet, we
recommend the use of a secure Internet browser. In addition, you should verify
the accuracy of your confirmation statements immediately after you receive
them.
EACH FUND DOES NOT ISSUE SHARE CERTIFICATES. However, if you currently have
shares in certificated form, you must include the share certificates properly
endorsed or accompanied by a duly executed stock power when exchanging or
redeeming shares. You may not exchange or redeem shares in certificate form by
telephone or via the Internet.
WHEN YOU ASK US TO SEND OR RECEIVE A WIRE, please note that while we don't
charge a fee to send or receive wires, it's possible that your bank may do so.
Wire transactions are generally completed within 24 hours. Each fund can only
send wires of $1,000 or more and accept wires of $50 or more.
EACH FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by a check drawn on a
US bank, a bank or Federal Funds wire transfer or an electronic bank transfer.
Each fund does not accept third party checks. A third party check is a check
made payable to one or more parties and offered as payment to one or more other
parties (e.g., a check made payable to you that you offer as payment to someone
else). Checks should normally be payable to DWS Investments and drawn by you or
a financial institution on your behalf with your name or account number
included with the check. If you pay for shares by check and the check fails to
clear, we have the right to cancel your order, hold you liable or charge you or
your account for any losses or fees each fund or its agents have incurred.
SIGNATURE GUARANTEE. When you want to sell more than $100,000 worth of shares
or send proceeds to a third party or to a new address, you'll usually need to
place your order in writing and have your signature guaranteed. However, if you
want money transferred electronically to a bank account that is already on file
with us, you don't need a signature guarantee. Also, generally you don't need a
signature guarantee for an exchange, although we may require one in certain
other circumstances.
A signature guarantee is simply a certification of your signature - a valuable
safeguard against fraud. DWS accepts Medallion Signature Guarantees, which can
be obtained from an eligible guarantor. Eligible guarantor institutions include
commercial banks, savings and loans, trust companies, credit unions, member
firms of a national stock exchange or any member or participant of an approved
signature guarantor program. A notarized document cannot be accepted in lieu of
a signature guarantee.
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Investing in the Funds
SELLING SHARES OF TRUST ACCOUNTS AND BUSINESS OR ORGANIZATION ACCOUNTS may
require additional documentation. Please call DWS Investments (see phone number
on the back cover) or contact your financial advisor for more information.
WHEN YOU SELL SHARES THAT HAVE A CDSC, the CDSC is based on the original
purchase cost or current market value of the shares sold, whichever is less. In
processing orders to sell shares, the shares with the lowest CDSC are sold
first. For each investment you make, the date you first bought shares is the
date we use to calculate a CDSC on that particular investment. A CDSC is not
imposed when you exchange from one fund into another. When you sell shares of
the fund that you exchanged into, however, a CDSC may be imposed which may
differ from the schedule for the fund you exchanged out of. Your shares will
retain their original cost and purchase date.
There are certain cases in which you may be exempt from a CDSC. These include:
o The death or disability of an account owner (including a joint owner). This
waiver applies only under certain conditions. Please contact your financial
advisor or Shareholder Services to determine if the conditions exist
o Withdrawals made through a systematic withdrawal plan up to a maximum of 12%
per year of the net asset value of the account
o Withdrawals related to certain retirement or benefit plans
o Redemptions for certain loan advances, hardship provisions or returns of
excess contributions from retirement plans
o For Class C shares, redemption of shares purchased through a
dealer-sponsored asset allocation program maintained on an omnibus
record-keeping system, provided the dealer of record has waived the advance
of the first year distribution and service fees applicable to such shares
and has agreed to receive such fees quarterly
In each of these cases, there are a number of additional provisions that apply
in order to be eligible for a CDSC waiver. Your financial advisor or
Shareholder Services can answer your questions and help you determine if you
are eligible.
IF YOU SELL SHARES IN A DWS FUND FOR WHICH YOU PAID A SALES CHARGE AND THEN
DECIDE TO INVEST WITH DWS INVESTMENTS AGAIN WITHIN SIX MONTHS, you may be able
to take advantage of the "reinstatement feature." With this feature, except for
Class B shares, you can put your money back into the same class of a DWS fund
at its current net asset value and, for purposes of a sales charge, it will be
treated as if it had never left DWS Investments (this may result in a tax
liability for federal income tax purposes). You'll be reimbursed (in the form
of fund shares by the Distributor) for any CDSC you paid when you sold shares
in a DWS fund. Future CDSC calculations will be based on your original
investment date, rather than your reinstatement date.
Investors who sold Class B shares may buy Class A shares (if available) with no
sales charge, although they won't be reimbursed for any CDSC they paid. You can
only use the reinstatement feature once for any given group of shares. To take
advantage of this feature, contact Shareholder Services or your financial
advisor.
CLASS A TO CLASS S IN THE SAME FUND EXCHANGE PRIVILEGE. Investors who have
invested in Class A shares through a comprehensive or "wrap" fee program, or
other fee-based program sponsored by a broker-dealer, bank or registered
investment adviser, may become eligible to invest in Class S shares. Subject to
the discretion of the Distributor, such shareholders may exchange their Class A
shares for Class S shares of equal aggregate value of the same fund. No sales
charges or other charges will apply to any such exchanges. Investors should
contact their selling and/or servicing agents to learn more about the details
of this exchange feature. Shareholders generally will not recognize a gain or
loss for federal income tax purposes upon the exchange of Class A shares of a
fund for Class S shares of the same fund.
CLASS C TO CLASS A, CLASS S OR INSTITUTIONAL CLASS IN THE SAME FUND EXCHANGE
PRIVILEGE. Investors who either (i) have invested in Class C shares through a
comprehensive or "wrap" fee program or other fee-based program sponsored by a
broker-dealer, bank or registered investment adviser or (ii) have invested in
Class C shares and are in the process of transferring their shares to such a
program may potentially become eligible to invest in either Class A shares,
Class S shares or Institutional Class shares by reason of their participation
in such a program. In such event, subject to the discretion of the Distributor
and the limitations noted below, such shareholders may exchange their Class C
shares for Class A shares, Class S shares or Institutional Class shares (as
applicable) of equal aggregate value of the same fund. No sales charges or
other charges will apply to any such exchange. Exchanges under this privilege
will be processed only in instances where the accounts are not currently
subject to a CDSC and only as part of a pre-arranged, multiple-client
transaction through the particular financial services firm offering the
comprehensive or wrap program or other fee-based program where the Class A
shares, Class S shares or Institutional Class shares are available. Investors
should contact their selling and/or servicing agents to learn more about the
details of this exchange feature. Shareholders generally will not recognize a
gain or loss for federal income tax purposes upon the exchange of Class C
shares of a fund for Class A shares, Class S shares or Institutional Class
shares of the same fund.
CLASS S TO INSTITUTIONAL CLASS IN THE SAME FUND EXCHANGE PRIVILEGE. Investors
who have invested in Class S shares through a comprehensive or "wrap" fee
program
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Investing in the Funds
or other fee-based program sponsored by a broker-dealer, bank or registered
investment adviser may potentially become eligible to invest in Institutional
Class shares by reason of their participation in such a program. In such event,
subject to the discretion of the Distributor and the limitations noted below,
such shareholders may exchange their Class S shares for Institutional Class
shares of equal aggregate value of the same fund. No sales charges or other
charges will apply to any such exchange. Exchanges under this privilege will be
processed only as part of a pre-arranged, multiple-client transaction through
the particular financial services firm offering the comprehensive or wrap
program or other fee-based program where the Institutional Class shares are
available. Investors should contact their selling and/or servicing agents to
learn more about the details of this exchange feature. Shareholders generally
will not recognize a gain or loss for federal income tax purposes upon the
exchange of Class S shares of a fund for Institutional Class shares of the same
fund.
MONEY FROM SHARES YOU SELL is normally sent out within one business day of when
your order is processed (not when it is received), although it could be delayed
for up to seven days. There are circumstances when it could be longer,
including, but not limited to, when you are selling shares you bought recently
by check or ACH (the funds will be placed under a 10 calendar day hold to
ensure good funds) or when unusual circumstances prompt the SEC to allow
further delays. Certain expedited redemption processes (e.g., redemption
proceeds by wire) may also be delayed or unavailable when you are selling
shares recently purchased or in the event of the closing of the Federal Reserve
wire payment system. Each fund reserves the right to suspend or postpone
redemptions as permitted pursuant to Section 22(e) of the 1940 Act. Generally,
those circumstances are when 1) the New York Stock Exchange is closed other
than customary weekend or holiday closings; 2) the SEC determines that trading
on the New York Stock Exchange is restricted; 3) the SEC determines that an
emergency exists which makes the disposal of securities owned by a fund or the
fair determination of the value of a fund's net assets not reasonably
practicable; or 4) the SEC, by order, permits the suspension of the right of
redemption. Redemption payments by wire may also be delayed in the event of a
non-routine closure of the Federal Reserve wire payment system. For additional
rights reserved by each fund, please see "Other Rights We Reserve."
HOW EACH FUND CALCULATES SHARE PRICE
To calculate net asset value, or NAV, each share class uses the following
equation:
TOTAL TOTAL TOTAL NUMBER OF
- / = NAV
( )
ASSETS LIABILITIES SHARES OUTSTANDING
The price at which you buy shares is based on the NAV per share calculated
after the order is received and accepted by the transfer agent, although for
Class A shares it will be adjusted to allow for any applicable sales charge
(see "Choosing a Share Class"). The price at which you sell shares is also
based on the NAV per share calculated after the order is received and accepted
by the transfer agent, although a CDSC may be taken out of the proceeds (see
"Choosing a Share Class"). To obtain the fund's most recent share price, go to
dws-investments.com (the Web site does not form a part of this prospectus) or
call the phone number included in this prospectus.
EACH FUND CHARGES A REDEMPTION FEE EQUAL TO 2% of the value of shares redeemed
or exchanged within 15 days of purchase. Please see "Policies about
transactions - Redemption fees" for further information.
WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN INDEPENDENT
PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE. However, we may use
methods approved by the Board, such as a fair valuation model, which are
intended to reflect fair value when pricing service information or market
quotations are not readily available or when a security's value or a meaningful
portion of the value of a fund's portfolio is believed to have been materially
affected by a significant event, such as a natural disaster, an economic event
like a bankruptcy filing, or a substantial fluctuation in domestic or foreign
markets that has occurred between the close of the exchange or market on which
the security is principally traded (for example, a foreign exchange or market)
and the close of the New York Stock Exchange. In such a case, a fund's value
for a security is likely to be different from the last quoted market price or
pricing service information. In addition, due to the subjective and variable
nature of fair value pricing, it is possible that the value determined for a
particular asset may be materially different from the value realized upon such
asset's sale. It is expected that the greater the percentage of fund assets
that is invested in non-US securities, the more extensive will be a fund's use
of fair value pricing. This is intended to reduce a fund's exposure to "time
zone arbitrage" and other harmful trading practices. (See "Market timing
policies and procedures.")
TO THE EXTENT THAT A FUND INVESTS IN SECURITIES THAT ARE TRADED PRIMARILY IN
FOREIGN MARKETS, the value of its holdings could change at a time when you
aren't able to buy or sell fund shares. This is because some foreign markets
are open on days or at times when a fund doesn't price its shares. (Note that
prices for securities that trade on foreign exchanges can change significantly
on days when the New York Stock Exchange is closed and you cannot buy or sell
fund shares. Price changes in the securities a fund owns may ultimately affect
the price of fund shares the next time the NAV is calculated.)
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Investing in the Funds
OTHER RIGHTS WE RESERVE
You should be aware that we may do any of the following:
o withdraw or suspend the offering of shares at any time
o withhold a portion of your distributions and redemption proceeds if we have
been notified by the Internal Revenue Service that you are subject to
backup withholding or if you fail to provide us with the correct taxpayer
ID number and certain certifications, including certification that you are
not subject to backup withholding
o reject a new account application if you don't provide any required or
requested identifying information, or for any other reason
o refuse, cancel, limit or rescind any purchase or exchange order, without
prior notice; freeze any account (meaning you will not be able to purchase
fund shares in your account); suspend account services; and/or
involuntarily redeem your account if we think that the account is being
used for fraudulent or illegal purposes; one or more of these actions will
be taken when, at our sole discretion, they are deemed to be in a fund's
best interests or when a fund is requested or compelled to do so by
governmental authority or by applicable law
o close and liquidate your account if we are unable to verify your identity,
or for other reasons; if we decide to close your account, your fund shares
will be redeemed at the net asset value per share next calculated after we
determine to close your account (less any applicable sales charges, CDSC or
redemption fees); you may recognize a gain or loss on the redemption of
your fund shares and you may incur a tax liability
o pay you for shares you sell by "redeeming in kind," that is, by giving you
securities (which typically will involve brokerage costs for you to
liquidate) rather than cash, but which will be taxable to the same extent
as a redemption for cash; a fund generally won't make a redemption in kind
unless your requests over a 90-day period total more than $250,000 or 1% of
the value of a fund's net assets, whichever is less
o change, add or withdraw various services, fees and account policies (for
example, we may adjust a fund's investment minimums at any time)
UNDERSTANDING DISTRIBUTIONS AND TAXES
Each fund intends to distribute to its shareholders virtually all of its net
earnings. Each fund can earn money in two ways: by receiving interest,
dividends or other income from investments it holds and by selling investments
for more than it paid for them. (Each fund's earnings are separate from any
gains or losses stemming from your own purchase and sale of shares.) Each fund
may not always pay a dividend or other distribution for a given period.
DWS Global Equity Fund, DWS Emerging Markets Equity Fund, DWS Latin America
Equity Fund and DWS Global Small Cap Fund intend to pay dividends and
distributions of investment income to their shareholders in December. DWS
Enhanced Emerging Markets Fixed Income Fund and DWS World Dividend Fund intend
to pay dividends and distributions of investment income quarterly,
specifically, in March, June, September and December. Investment income for DWS
Enhanced Global Bond Fund is declared and paid monthly. Long-term and
short-term capital gains, if any, for each fund are declared and paid in
December. A fund may distribute at other times as needed.
Dividends or distributions declared and payable to shareholders of record in
the last quarter of a given calendar year are treated for federal income tax
purposes as if they were received on December 31 of that year, if such
dividends or distributions are actually paid in January of the following year.
For federal income tax purposes, income and capital gains distributions are
generally taxable to shareholders. However, dividends and distributions
received by retirement plans qualifying for tax exemption under federal income
tax laws generally will not be taxable.
YOU CAN CHOOSE HOW TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS. You can have
them all automatically reinvested in fund shares (at NAV), all deposited
directly to your bank account or all sent to you by check, have one type
reinvested and the other sent to you by check or have them invested in a
different fund. Tell us your preference on your application. If you don't
indicate a preference, your dividends and distributions will all be reinvested
in shares of the fund without a sales charge (if applicable). Distributions are
treated the same for federal income tax purposes whether you receive them in
cash or reinvest them in additional shares.
BUYING, SELLING OR EXCHANGING FUND SHARES WILL USUALLY HAVE FEDERAL INCOME TAX
CONSEQUENCES FOR YOU (except in employer-sponsored qualified plans, IRAs or
other tax-advantaged accounts). Your sale of shares may result in a capital
gain or loss. The gain or loss will be long-term or short-term depending on how
long you owned the shares that were sold. For federal income tax purposes, an
exchange is treated the same as a sale. In addition, if shares are redeemed to
pay any account fees (e.g., an account maintenance fee), you may incur a tax
liability.
THE FEDERAL INCOME TAX STATUS of a fund's earnings you receive and transactions
involving your shares generally depends on their type:
72
Investing in the Funds
GENERALLY TAXED AT NET CAPITAL GENERALLY TAXED AT ORDINARY
GAIN RATES: INCOME RATES:
DISTRIBUTIONS FROM A FUND
o gains from the sale of securi- o gains from the sale of securi-
ties held (or treated as held) ties held (or treated as held)
by a fund for more than one by a fund for one year or less
year o all other taxable income
o qualified dividend income
TRANSACTIONS INVOLVING FUND
SHARES
o gains from selling fund o gains from selling fund
shares held for more than shares held for one year or
one year less
ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY A FUND MAY BE SUBJECT TO
FOREIGN WITHHOLDING TAXES. In that case, a fund's yield on those securities
would generally be decreased. Each fund may elect to pass through to its
shareholders a credit or deduction for foreign taxes it has paid if at the end
of its fiscal year more than 50% of the value of the fund's total assets
consists of stocks or securities of foreign corporations. In addition, any
investments in foreign securities or foreign currencies may increase or
accelerate a fund's recognition of ordinary income and may affect the timing or
amount of the fund's distributions. If you invest in a fund through a taxable
account, your after-tax return could be negatively affected.
Investments in certain debt obligations or other securities may cause a fund to
recognize income in excess of the cash generated by them. Thus, a fund could be
required at times to liquidate other investments in order to satisfy its
distribution requirements.
Each fund's use of derivatives, if any, may affect the amount, timing and
character of distributions to shareholders and, therefore, may increase the
amount of taxes payable to shareholders.
For DWS Enhanced Emerging Markets Fixed Income Fund and DWS Enhanced Global
Bond Fund: A fund's use of currency strategies may increase or accelerate the
fund's recognition of income, affect the character of such income, and affect
the timing, amount, and character of taxable distributions to shareholders.
Among other consequences, the currency strategies may cause the fund to
recognize income in excess of cash received; thus, the fund could be required
to liquidate investments, including when it is not advantageous to do so, to
meet its distribution requirements and to avoid tax at the fund level.
Distributions to individuals and other noncorporate shareholders of investment
income reported by a fund as derived from qualified dividend income are
eligible for taxation for federal income tax purposes at the more favorable net
capital gain rates. Qualified dividend income generally includes dividends
received by a fund from domestic and some foreign corporations. It does not
include income from investments in debt securities or, generally, from real
estate investment trusts. In addition, a fund must meet certain holding period
and other requirements with respect to the dividend-paying stocks in its
portfolio and the shareholder must meet certain holding period and other
requirements with respect to a fund's shares for the lower tax rates to apply.
It is not clear what portion of a fund's distributions will be derived from
qualifying dividends and therefore will constitute qualified dividend income;
it is not likely that a significant portion of DWS Enhanced Emerging Markets
Fixed Income Fund's and DWS Enhanced Global Bond Fund's distributions will
constitute qualified dividend income.
YOUR FUND WILL SEND YOU DETAILED FEDERAL INCOME TAX INFORMATION EARLY EACH
YEAR. These statements tell you the amount and the federal income tax
classification of any dividends or distributions you received. They also have
certain details on your purchases and sales of shares.
A 3.8% Medicare contribution tax is imposed on the "net investment income" of
individuals, estates and trusts whose income exceeds certain threshold amounts.
For this purpose, net investment income generally includes taxable dividends,
including any capital gain dividends paid by a fund, and gains recognized on
the sale, redemption or exchange of shares of a fund.
IF YOU INVEST RIGHT BEFORE A FUND PAYS A DIVIDEND, you'll be getting some of
your investment back as a dividend, which may be taxable to you. You can avoid
this by investing after a fund pays a dividend. In tax-advantaged retirement
accounts you generally do not need to worry about this.
If a fund's distributions exceed its current and accumulated earnings and
profits, the excess will be treated for federal income tax purposes as a
tax-free return of capital to the extent of your basis in your shares and
thereafter as a capital gain. Because a return of capital distribution reduces
the basis of your shares, a return of capital distribution may result in a
higher capital gain or a lower capital loss when you sell your shares.
CORPORATIONS are taxed at the same rates on ordinary income and capital gains
but may be eligible for a dividends-received deduction for a portion of the
income dividends they receive from a fund, provided certain holding period and
other requirements are met.
Because each shareholder's tax situation is unique, ask your tax professional
about the tax consequences of your investment, including any state and local
tax consequences.
The above discussion summarizes certain federal income tax consequences for
shareholders who are US persons. If you are a non-US person, please consult
your own tax advisor with respect to the US tax consequences to you of an
investment in a fund. For more information, see "Taxes" in the Statement of
Additional Information.
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Investing in the Funds
[GRAPHIC APPEARS HERE]
Financial Highlights
The financial highlights are designed to help you understand recent financial
performance. The figures in the first part of each table are for a single
share. The total return figures represent the percentage that an investor in a
fund would have earned (or lost), assuming all dividends and distributions were
reinvested. This information has been audited by PricewaterhouseCoopers LLP,
independent registered public accounting firm, whose report, along with each
fund's financial statements, is included in each fund's annual report (see
"Shareholder reports" on the back cover).
DWS EMERGING MARKETS EQUITY FUND - CLASS A
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ----------- ----------- ----------- -----------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.61 $ 15.57 $ 18.47 $ 15.34 $ 10.75
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .11 .08 .06 .02 .06
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) .91 ( .04) ( 2.85) 3.19 4.55
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.02 .04 ( 2.79) 3.21 4.61
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .17) - ( .11) ( .08) ( .02)
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 16.46 $ 15.61 $ 15.57 $ 18.47 $ 15.34
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(b) 6.56 (c) .26 (15.20) 21.01 42.95
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 16 17 27 41 45
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.96 1.76 1.78 1.75 1.83
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.81 1.76 1.78 1.75 1.83
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (loss) (%) .72 .53 .32 .13 .48
------------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 49 82 179 77 138
------------------------------------------------- -------- -------- -------- -------- --------
(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.
* Amount is less than $.005.
74
Financial Highlights
DWS EMERGING MARKETS EQUITY FUND - CLASS B
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ----------- ----------- ----------
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.00 $ 14.09 $ 16.75 $ 13.98 $ 9.88
------------------------------------------------ -------- -------- -------- -------- -------
Income (loss) from investment operations:
Net investment income (loss)(a) ( .01) ( .06) ( .10) ( .13) ( .08)
------------------------------------------------ -------- -------- -------- -------- -------
Net realized and unrealized gain (loss) .82 ( .03) ( 2.56) 2.90 4.18
------------------------------------------------ -------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS .81 ( .09) ( 2.66) 2.77 4.10
------------------------------------------------ -------- -------- -------- -------- -------
Less distributions from:
Net investment income ( .04) - - - -
------------------------------------------------ -------- -------- -------- -------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 14.77 $ 14.00 $ 14.09 $ 16.75 $ 13.98
------------------------------------------------ -------- -------- -------- -------- -------
Total Return (%)(b) 5.77 (c) ( .64)(c) (15.88) 19.81 41.50
------------------------------------------------ -------- -------- -------- -------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------------- -------
Net assets, end of period ($ millions) .2 1 1 3 3
------------------------------------------------ -------- -------- -------- -------- -------
Ratio of expenses before expense reductions (%) 2.87 2.69 2.64 2.69 2.86
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of expenses after expense reductions (%) 2.56 2.59 2.64 2.69 2.86
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of net investment income (loss) (%) ( .10) ( .41) ( .60) ( .81) ( .72)
------------------------------------------------- -------- -------- -------- -------- -------
Portfolio turnover rate (%) 49 82 179 77 138
------------------------------------------------- -------- -------- -------- -------- -------
(a) Based on average shares outstanding during the period.
(b) Total return does not reflect the effect of any sales charges.
(c) Total returns would have been lower had certain expenses not been
reduced.
* Amount is less than $.005.
75
Financial Highlights
DWS EMERGING MARKETS EQUITY FUND - CLASS C
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ----------- ----------- ----------- ----------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.11 $ 14.20 $ 16.87 $ 14.06 $ 9.93
------------------------------------------------ -------- -------- -------- -------- -------
Income (loss) from investment operations:
Net investment income (loss)(a) ( .00)* ( .04) ( .08) ( .11) ( .07)
------------------------------------------------ -------- -------- -------- -------- -------
Net realized and unrealized gain (loss) .82 ( .05) ( 2.59) 2.92 4.20
------------------------------------------------ -------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS .82 ( .09) ( 2.67) 2.81 4.13
------------------------------------------------ -------- -------- -------- -------- -------
Less distributions from:
Net investment income ( .04) - - - -
------------------------------------------------ -------- -------- -------- -------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 14.89 $ 14.11 $ 14.20 $ 16.87 $ 14.06
------------------------------------------------ -------- -------- -------- -------- -------
Total Return (%)(b) 5.79 (c) ( .63) (15.83) 19.99 41.59
------------------------------------------------ -------- -------- -------- -------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------- -------
Net assets, end of period ($ millions) 4 4 5 8 7
------------------------------------------------ -------- -------- -------- -------- -------
Ratio of expenses before expense reductions (%) 2.77 2.59 2.59 2.58 2.73
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of expenses after expense reductions (%) 2.56 2.59 2.59 2.58 2.73
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of net investment income (loss) (%) ( .02) ( .26) ( .50) ( .70) ( .64)
------------------------------------------------- -------- -------- -------- -------- -------
Portfolio turnover rate (%) 49 82 179 77 138
------------------------------------------------- -------- -------- -------- -------- -------
(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.
* Amount is less than $.005.
76
Financial Highlights
DWS EMERGING MARKETS EQUITY FUND - INSTITUTIONAL CLASS
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
----------- ----------- ----------- ----------- -----------
SELECTED PER SHARE DATA
------------------------------------------------------- - - - -
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.88 $ 15.82 $ 18.77 $ 15.60 $ 10.91
------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .15 .15 .19 .10 .09
------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) .91 ( .05) ( 2.94) 3.23 4.64
------------------------------------------- -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.06 .10 ( 2.75) 3.33 4.73
------------------------------------------- -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .25) ( .04) ( .20) ( .16) ( .04)
------------------------------------------- -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 16.69 $ 15.88 $ 15.82 $ 18.77 $ 15.60
------------------------------------------- -------- -------- -------- -------- --------
Total Return (%) 6.69 .67 (14.83) 21.54 43.53
------------------------------------------- -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------- -------- -------- -------- --------
Net assets, end of period ($ millions) 12 44 73 76 52
------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses (%) 1.52 1.36 1.37 1.32 1.38
------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (loss) (%) .92 .93 1.04 .56 .78
------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 49 82 179 77 138
------------------------------------------- -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
* Amount is less than $.005.
77
Financial Highlights
DWS EMERGING MARKETS EQUITY FUND - CLASS S
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ----------- ----------- ----------- ----------------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.83 $ 15.78 $ 18.72 $ 15.59 $ 10.90
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .15 .12 .10 .06 .09
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) .93 ( .05) ( 2.88) 3.23 4.63
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.08 .07 ( 2.78) 3.29 4.72
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .21) ( .02) ( .16) ( .16) ( .03)
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 16.70 $ 15.83 $ 15.78 $ 18.72 $ 15.59
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%) 6.84 (b) .42 (15.00) 21.21 43.53 (b)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 68 79 94 130 120
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.73 1.57 1.55 1.55 1.62
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.56 1.57 1.55 1.55 1.43
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (loss) (%) .97 .75 .58 .33 .71
------------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 49 82 179 77 138
------------------------------------------------- -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
* Amount is less than $.005.
78
Financial Highlights
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - CLASS A
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ---------------- ----------- ----------------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.16 $ 10.20 $ 11.41 $ 10.23 $ 7.96
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .42 .49 .54 .57 .62
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) ( .65) .90 ( 1.28) 1.16 2.64
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ( .23) 1.39 ( .74) 1.73 3.26
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .36) ( .43) ( .47) ( .55) ( .41)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains - - - - ( .18)
------------------------------------------------ -------- -------- -------- -------- --------
Return of capital - - - - ( .40)
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( .36) ( .43) ( .47) ( .55) ( .99)
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.57 $ 11.16 $ 10.20 $ 11.41 $ 10.23
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(b) ( 2.10)(c) 14.03 (c) ( 6.53)(c) 17.41 44.31 (c)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 11 16 17 27 24
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.23 1.24 1.22 1.22 1.34
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.23 1.20 1.22 1.22 1.29
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of net investment income (%) 3.83 4.68 5.05 5.31 6.95
------------------------------------------------ -------- -------- -------- -------- --------
Portfolio turnover rate (%) 205 211 134 42 110
------------------------------------------------ -------- -------- -------- -------- --------
(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.
* Amount is less than $.005.
79
Financial Highlights
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - CLASS B
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
----------- ----------- ----------- ----------- ----------
SELECTED PER SHARE DATA
------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.21 $ 10.23 $ 11.45 $ 10.28 $ 7.99
------------------------------------------------ -------- -------- -------- -------- -------
Income (loss) from investment operations:
Net investment income(a) .35 .42 .45 .47 .56
------------------------------------------------ -------- -------- -------- -------- -------
Net realized and unrealized gain (loss) ( .67) .91 ( 1.29) 1.17 2.65
------------------------------------------------ -------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ( .32) 1.33 ( .84) 1.64 3.21
------------------------------------------------ -------- -------- -------- -------- -------
Less distributions from:
Net investment income ( .27) ( .35) ( .38) ( .47) ( .34)
------------------------------------------------ -------- -------- -------- -------- -------
Net realized gains - - - - ( .18)
------------------------------------------------ -------- -------- -------- -------- -------
Return of capital - - - - ( .40)
------------------------------------------------ -------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS ( .27) ( .35) ( .38) ( .47) ( .92)
------------------------------------------------ -------- -------- -------- -------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 10.62 $ 11.21 $ 10.23 $ 11.45 $ 10.28
------------------------------------------------ -------- -------- -------- -------- -------
Total Return (%)(b,c) ( 2.85) 13.16 ( 7.31) 16.43 43.17
------------------------------------------------ -------- -------- -------- -------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) .1 1 1 1 1
------------------------------------------------ -------- -------- -------- -------- -------
Ratio of expenses before expense reductions (%) 2.08 2.04 2.04 2.10 2.24
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of expenses after expense reductions (%) 1.98 2.00 2.04 2.10 2.03
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of net investment income (%) 3.12 3.99 4.23 4.43 6.21
------------------------------------------------- -------- -------- -------- -------- -------
Portfolio turnover rate (%) 205 211 134 42 110
------------------------------------------------- -------- -------- -------- -------- -------
(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.
* Amount is less than $.005.
80
Financial Highlights
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - CLASS C
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ---------------- ----------- ----------------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.19 $ 10.22 $ 11.44 $ 10.26 $ 7.98
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .34 .42 .46 .48 .56
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) ( .65) .90 ( 1.29) 1.17 2.64
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ( .31) 1.32 ( .83) 1.65 3.20
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .28) ( .35) ( .39) ( .47) ( .34)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains - - - - ( .18)
------------------------------------------------ -------- -------- -------- -------- --------
Return of capital - - - - ( .40)
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( .28) ( .35) ( .39) ( .47) ( .92)
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.60 $ 11.19 $ 10.22 $ 11.44 $ 10.26
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(b) ( 2.80)(c) 13.25 (c) ( 7.31)(c) 16.60 43.09 (c)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 5 8 9 11 10
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.97 1.97 1.99 1.99 2.13
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.96 1.93 1.98 1.99 2.04
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of net investment income (%) 3.07 3.97 4.29 4.54 6.20
------------------------------------------------ -------- -------- -------- -------- --------
Portfolio turnover rate (%) 205 211 134 42 110
------------------------------------------------ -------- -------- -------- -------- --------
(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.
* Amount is less than $.005.
81
Financial Highlights
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - INSTITUTIONAL CLASS
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
----------- ---------------- ---------------- ----------- ----------
SELECTED PER SHARE DATA
------------------------------------------------------------- - - - -
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.16 $ 10.20 $ 11.41 $ 10.24 $ 7.97
------------------------------------------------ -------- -------- -------- -------- -------
Income (loss) from investment operations:
Net investment income(a) .46 .53 .58 .61 .66
------------------------------------------------ -------- -------- -------- -------- -------
Net realized and unrealized gain (loss) ( .65) .91 ( 1.27) 1.16 2.64
------------------------------------------------ -------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ( .19) 1.44 ( .69) 1.77 3.30
------------------------------------------------ -------- -------- -------- -------- -------
Less distributions from:
Net investment income ( .40) ( .48) ( .52) ( .60) ( .45)
------------------------------------------------ -------- -------- -------- -------- -------
Net realized gains - - - - ( .18)
------------------------------------------------ -------- -------- -------- -------- -------
Return of capital - - - - ( .40)
------------------------------------------------ -------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS ( .40) ( .48) ( .52) ( .60) ( 1.03)
------------------------------------------------ -------- -------- -------- -------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 10.57 $ 11.16 $ 10.20 $ 11.41 $ 10.24
------------------------------------------------ -------- -------- -------- -------- -------
Total Return (%) ( 1.68) 14.51 (b) ( 6.13)(b) 17.88 44.68
------------------------------------------------ -------- -------- -------- -------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------- -------- -------- -------- -------
Net assets, end of period ($ millions) 187 112 96 107 68
------------------------------------------------ -------- -------- -------- -------- -------
Ratio of expenses before expense reductions (%) .81 .82 .83 .81 .89
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of expenses after expense reductions (%) .81 .78 .83 .81 .89
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of net investment income (%) 4.25 5.06 5.44 5.72 7.35
------------------------------------------------- -------- -------- -------- -------- -------
Portfolio turnover rate (%) 205 211 134 42 110
------------------------------------------------- -------- -------- -------- -------- -------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
* Amount is less than $.005.
82
Financial Highlights
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - CLASS S
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ---------------- ----------- ----------------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.16 $ 10.19 $ 11.41 $ 10.24 $ 7.96
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .45 .52 .57 .59 .65
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) ( .65) .91 ( 1.29) 1.16 2.64
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ( .20) 1.43 ( .72) 1.75 3.29
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .39) ( .46) ( .50) ( .58) ( .43)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains - - - - ( .18)
------------------------------------------------ -------- -------- -------- -------- --------
Return of capital - - - - ( .40)
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( .39) ( .46) ( .50) ( .58) ( 1.01)
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.57 $ 11.16 $ 10.19 $ 11.41 $ 10.24
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%) ( 1.83)(b) 14.32 (b) ( 6.31)(b) 17.70 44.65 (b)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 103 119 111 149 143
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) .96 .98 .98 .99 1.06
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) .96 .93 .98 .99 1.04
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of net investment income (%) 4.10 4.92 5.29 5.54 7.20
------------------------------------------------ -------- -------- -------- -------- --------
Portfolio turnover rate (%) 205 211 134 42 110
------------------------------------------------ -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
* Amount is less than $.005.
83
Financial Highlights
DWS ENHANCED GLOBAL BOND FUND - CLASS A
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
--------------- ---------------- ----------- ----------- ----------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.42 $ 10.19 $ 10.86 $ 10.55 $ 9.72
------------------------------------------------ ------- -------- -------- -------- -------
Income (loss) from investment operations:
Net investment income(a) .21 .23 .30 .29 .25
------------------------------------------------ ------- -------- -------- -------- -------
Net realized and unrealized gain (loss) ( .29) .21 ( .61) .38 1.36
------------------------------------------------ ------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ( .08) .44 ( .31) .67 1.61
------------------------------------------------ ------- -------- -------- -------- -------
Less distributions from:
Net investment income ( .23) ( .21) ( .24) ( .36) ( .30)
------------------------------------------------ ------- -------- -------- -------- -------
Net realized gains ( .16) - ( .04) - ( .48)
------------------------------------------------ ------- -------- -------- -------- -------
Return of capital - - ( .08) - -
------------------------------------------------ ------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS ( .39) ( .21) ( .36) ( .36) ( .78)
------------------------------------------------ ------- -------- -------- -------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ ------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 9.95 $ 10.42 $ 10.19 $ 10.86 $ 10.55
------------------------------------------------ ------- -------- -------- -------- -------
Total Return (%)(b) ( .84)(c) 4.41 (c) ( 2.97) 6.53 17.47
------------------------------------------------ ------- -------- -------- -------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 24 29 35 39 38
------------------------------------------------ ------- -------- -------- -------- -------
Ratio of expenses before expense reductions (%) 1.17 1.14 1.12 1.16 1.21
------------------------------------------------- ------- -------- -------- -------- -------
Ratio of expenses after expense reductions (%) 1.03 1.13 1.12 1.16 1.21
------------------------------------------------- ------- -------- -------- -------- -------
Ratio of net investment income (%) 2.07 2.25 2.83 2.83 2.53
------------------------------------------------- ------- -------- -------- -------- -------
Portfolio turnover rate (%) 493 395 197 162 163
------------------------------------------------- ------- -------- -------- -------- -------
(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.
* Amount is less than $.005.
84
Financial Highlights
DWS ENHANCED GLOBAL BOND FUND - CLASS B
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ----------- ----------- ----------------
SELECTED PER SHARE DATA
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.43 $ 10.20 $ 10.87 $ 10.56 $ 9.72
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .13 .15 .21 .21 .17
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) ( .29) .21 ( .61) .37 1.38
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ( .16) .36 ( .40) .58 1.55
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .15) ( .13) ( .15) ( .27) ( .23)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains ( .16) - ( .04) - ( .48)
------------------------------------------------ -------- -------- -------- -------- --------
Return of capital - - ( .08) - -
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( .31) ( .13) ( .27) ( .27) ( .71)
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 9.96 $ 10.43 $ 10.20 $ 10.87 $ 10.56
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(b) (1.58)(c) 3.58 (c) ( 3.78) 5.66 16.56 (c)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) .45 1 1 2 2
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.97 1.93 1.91 1.99 2.06
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.78 1.89 1.91 1.99 2.01
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (%) 1.29 1.50 2.04 2.00 1.73
------------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 493 395 197 162 163
------------------------------------------------- -------- -------- -------- -------- --------
(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.
* Amount is less than $.005.
85
Financial Highlights
DWS ENHANCED GLOBAL BOND FUND - CLASS C
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ----------- ----------- ----------
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.42 $ 10.19 $ 10.86 $ 10.55 $ 9.72
------------------------------------------------ -------- -------- -------- -------- -------
Income (loss) from investment operations:
Net investment income(a) .13 .15 .22 .22 .18
------------------------------------------------ -------- -------- -------- -------- -------
Net realized and unrealized gain (loss) ( .29) .22 ( .61) .37 1.36
------------------------------------------------ -------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ( .16) .37 ( .39) .59 1.54
------------------------------------------------ -------- -------- -------- -------- -------
Less distributions from:
Net investment income ( .15) ( .14) ( .16) ( .28) ( .23)
------------------------------------------------ -------- -------- -------- -------- -------
Net realized gains ( .16) - ( .04) - ( .48)
------------------------------------------------ -------- -------- -------- -------- -------
Return of capital - - ( .08) - -
------------------------------------------------ -------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS ( .31) ( .14) ( .28) ( .28) ( .71)
------------------------------------------------ -------- -------- -------- -------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 9.95 $ 10.42 $ 10.19 $ 10.86 $ 10.55
------------------------------------------------ -------- -------- -------- -------- -------
Total Return (%)(b) ( 1.66)(c) 3.74 (c) ( 3.69) 5.74 16.60
------------------------------------------------ -------- -------- -------- -------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 3 5 6 8 7
------------------------------------------------ -------- -------- -------- -------- -------
Ratio of expenses before expense reductions (%) 1.91 1.87 1.86 1.90 1.95
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of expenses after expense reductions (%) 1.78 1.87 1.86 1.90 1.95
------------------------------------------------- -------- -------- -------- -------- -------
Ratio of net investment income (%) 1.31 1.52 2.09 2.09 1.79
------------------------------------------------- -------- -------- -------- -------- -------
Portfolio turnover rate (%) 493 395 197 162 163
------------------------------------------------- -------- -------- -------- -------- -------
(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.
* Amount is less than $.005.
86
Financial Highlights
DWS ENHANCED GLOBAL BOND FUND - CLASS S
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
--------------- ---------------- ----------- ----------- ----------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.42 $ 10.18 $ 10.85 $ 10.55 $ 9.71
------------------------------------------------ ------- -------- -------- -------- -------
Income (loss) from investment operations:
Net investment income (loss)(a) .23 .26 .33 .32 .28
------------------------------------------------ ------- -------- -------- -------- -------
Net realized and unrealized gain (loss) ( .29) .22 ( .62) .37 1.37
------------------------------------------------ ------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS ( .06) .48 ( .29) .69 1.65
------------------------------------------------ ------- -------- -------- -------- -------
Less distributions from:
Net investment income ( .26) ( .24) ( .26) ( .39) ( .33)
------------------------------------------------ ------- -------- -------- -------- -------
Net realized gains ( .16) - ( .04) - ( .48)
------------------------------------------------ ------- -------- -------- -------- -------
Return of capital - - ( .08) - -
------------------------------------------------ ------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS ( .42) ( .24) ( .38) ( .39) ( .81)
------------------------------------------------ ------- -------- -------- -------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ ------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 9.94 $ 10.42 $ 10.18 $ 10.85 $ 10.55
------------------------------------------------ ------- -------- -------- -------- -------
Total Return (%) ( .66)(b) 4.81 (b) ( 2.72) 6.73 17.90
------------------------------------------------ ------- -------- -------- -------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 84 125 136 112 128
------------------------------------------------ ------- -------- -------- -------- -------
Ratio of expenses before expense reductions (%) .87 .84 .84 .90 .91
------------------------------------------------- ------- -------- -------- -------- -------
Ratio of expenses after expense reductions (%) .78 .84 .84 .90 .91
------------------------------------------------- ------- -------- -------- -------- -------
Ratio of net investment income (%) 2.30 2.55 3.11 3.09 2.83
------------------------------------------------- ------- -------- -------- -------- -------
Portfolio turnover rate (%) 493 395 197 162 163
------------------------------------------------- ------- -------- -------- -------- -------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
* Amount is less than $.005.
87
Financial Highlights
DWS GLOBAL EQUITY FUND - CLASS A
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------- ---------- ---------- --------------- ----------
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.90 $ 6.73 $ 7.36 $ 6.56 $ 5.66
------------------------------------------------ ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income (loss)(a) .10 .15 .12 .08 .08
------------------------------------------------ ------- ------- ------- ------- -------
Net realized and unrealized gain (loss) 1.40 .15 ( .58) .79 1.04
------------------------------------------------ ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 1.50 .30 ( .46) .87 1.12
------------------------------------------------ ------- ------- ------- ------- -------
Less distributions from:
Net investment income ( .16) ( .13) ( .17) ( .09) ( .22)
------------------------------------------------ ------- ------- ------- ------- -------
Increase from regulatory settlements - - - .02 (d) -
------------------------------------------------ ------- ------- ------- ------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 8.24 $ 6.90 $ 6.73 $ 7.36 $ 6.56
------------------------------------------------ ------- ------- ------- ------- -------
Total Return (%)(b,c) 22.16 4.71 (6.44) 13.65 20.98
------------------------------------------------ ------- ------- ------- ------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 22 23 28 37 47
------------------------------------------------ ------- ------- ------- ------- -------
Ratio of expenses before expense reductions (%) 1.77 1.66 1.69 1.61 1.62
------------------------------------------------- ------- ------- ------- ------- -------
Ratio of expenses after expense reductions (%) 1.49 1.58 1.68 1.60 1.41
------------------------------------------------- ------- ------- ------- ------- -------
Ratio of net investment income (%) 1.34 2.25 1.66 1.31 1.53
------------------------------------------------- ------- ------- ------- ------- -------
Portfolio turnover rate (%) 124 21 25 28 152
------------------------------------------------- ------- ------- ------- ------- -------
(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) Includes a non-recurring payment from the Advisor, which amounted to
$0.013 per share, 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 $0.01 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.35% lower.
* Amount is less than $.005.
88
Financial Highlights
DWS GLOBAL EQUITY FUND - CLASS B
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------- ---------- ---------- --------------- ----------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.64 $ 6.48 $ 7.08 $ 6.31 $ 5.44
----------------------------------------------- ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income (loss)(a) .04 .09 .07 .04 .04
----------------------------------------------- ------- ------- ------- ------- -------
Net realized and unrealized gain (loss) 1.37 .15 ( .56) .74 1.00
----------------------------------------------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 1.41 .24 ( .49) .78 1.04
----------------------------------------------- ------- ------- ------- ------- -------
Less distributions from:
Net investment income ( .11) ( .08) ( .11) ( .03) ( .17)
----------------------------------------------- ------- ------- ------- ------- -------
Increase from regulatory settlements - - - .02 (d) -
----------------------------------------------- ------- ------- ------- ------- -------
Redemption fees .00* .00* .00* .00* .00*
----------------------------------------------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 7.94 $ 6.64 $ 6.48 $ 7.08 $ 6.31
----------------------------------------------- ------- ------- ------- ------- -------
Total Return (%)(b,c) 21.39 3.84 (7.06) 12.75 20.07
----------------------------------------------- ------- ------- ------- ------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) .2 .4 1 2 3
----------------------------------------------- ------- ------- ------- ------- -------
Ratio of expenses before reductions (%) 2.71 2.60 2.48 2.47 2.59
----------------------------------------------- ------- ------- ------- ------- -------
Ratio of expenses after expense reductions (%) 2.24 2.34 2.44 2.32 2.25
------------------------------------------------ ------- ------- ------- ------- -------
Ratio of net investment income (loss) (%) .57 1.41 .90 .59 .69
------------------------------------------------ ------- ------- ------- ------- -------
Portfolio turnover rate (%) 124 21 25 28 152
------------------------------------------------ ------- ------- ------- ------- -------
(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) Includes a non-recurring payment from the Advisor, which amounted to
$0.011 per share, 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 $0.01 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.35% lower.
(*) Amount is less than $.005.
89
Financial Highlights
DWS GLOBAL EQUITY FUND - CLASS C
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
-------------- --------------- ---------------- --------------- --------------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.64 $ 6.47 $ 7.08 $ 6.31 $ 5.44
------------------------------------------------ -------- ------- -------- ------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .04 .10 .07 .04 .04
------------------------------------------------ -------- ------- -------- ------- --------
Net realized and unrealized gain (loss) 1.37 .15 ( .57) .74 1.01
------------------------------------------------ -------- ------- -------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.41 .25 ( .50) .78 1.05
------------------------------------------------ -------- ------- -------- ------- --------
Less distributions from:
Net investment income ( .11) ( .08) ( .11) ( .03) ( .18)
------------------------------------------------ -------- ------- -------- ------- --------
Increase from regulatory settlements - - - .02 (d) -
------------------------------------------------ -------- ------- -------- ------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- ------- -------- ------- --------
NET ASSET VALUE, END OF PERIOD $ 7.94 $ 6.64 $ 6.47 $ 7.08 $ 6.31
------------------------------------------------ -------- ------- -------- ------- --------
Total Return (%)(b) 21.39 (c) 4.01 (c) (7.21)(c) 12.75 19.94 (c)
------------------------------------------------ -------- ------- -------- ------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 4 3 4 6 6
------------------------------------------------ -------- ------- -------- ------- --------
Ratio of expenses before expense reductions (%) 2.50 2.42 2.44 2.34 2.45
------------------------------------------------ -------- ------- -------- ------- --------
Ratio of expenses after expense reductions (%) 2.24 2.33 2.43 2.34 2.24
------------------------------------------------ -------- ------- -------- ------- --------
Ratio of net investment income (loss) (%) .60 1.54 .91 .57 .70
------------------------------------------------ -------- ------- -------- ------- --------
Portfolio turnover rate (%) 124 21 25 28 152
------------------------------------------------ -------- ------- -------- ------- --------
(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) Includes a non-recurring payment from the Advisor, which amounted to
$0.012 per share, 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 $0.01 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.35% lower.
* Amount is less than $.005.
90
Financial Highlights
DWS GLOBAL EQUITY FUND - CLASS R
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
-------------- --------------- ---------------- --------------- --------------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.70 $ 6.54 $ 7.16 $ 6.40 $ 5.50
------------------------------------------------ -------- ------- -------- ------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .08 .13 .11 .07 .08
------------------------------------------------ -------- ------- -------- ------- --------
Net realized and unrealized gain (loss) 1.37 .15 ( .58) .76 1.03
------------------------------------------------ -------- ------- -------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.45 .28 ( .47) .83 1.11
------------------------------------------------ -------- ------- -------- ------- --------
Less distributions from:
Net investment income ( .14) ( .12) ( .15) ( .09) ( .21)
------------------------------------------------ -------- ------- -------- ------- --------
Increase from regulatory settlements - - - .02 (c) -
------------------------------------------------ -------- ------- -------- ------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- ------- -------- ------- --------
NET ASSET VALUE, END OF PERIOD $ 8.01 $ 6.70 $ 6.54 $ 7.16 $ 6.40
------------------------------------------------ -------- ------- -------- ------- --------
Total Return (%) 21.98 (b) 4.44 (b) (6.67)(b) 13.35 21.19 (b)
------------------------------------------------ -------- ------- -------- ------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 1 2 2 2 1
------------------------------------------------ -------- ------- -------- ------- --------
Ratio of expenses before expense reductions (%) 2.05 1.87 1.94 1.79 1.62
------------------------------------------------ -------- ------- -------- ------- --------
Ratio of expenses after expense reductions (%) 1.74 1.83 1.90 1.79 1.41
------------------------------------------------ -------- ------- -------- ------- --------
Ratio of net investment income (%) 1.05 2.02 1.44 1.12 1.52
------------------------------------------------ -------- ------- -------- ------- --------
Portfolio turnover rate (%) 124 21 25 28 152
------------------------------------------------ -------- ------- -------- ------- --------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
(c) Includes a non-recurring payment from the Advisor, which amounted to
$0.013 per share, 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 $0.01 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.35% lower.
* Amount is less than $.005.
91
Financial Highlights
DWS GLOBAL EQUITY FUND - INSTITUTIONAL CLASS
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
-------------- ---------- ---------- --------------- --------------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.71 $ 6.55 $ 7.17 $ 6.40 $ 5.52
------------------------------------------------ -------- ------- ------- ------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .11 .17 .15 .12 .11
------------------------------------------------ -------- ------- ------- ------- --------
Net realized and unrealized gain (loss) 1.38 .15 ( .57) .75 1.01
------------------------------------------------ -------- ------- ------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.49 .32 ( .42) .87 1.12
------------------------------------------------ -------- ------- ------- ------- --------
Less distributions from:
Net investment income ( .18) ( .16) ( .20) ( .12) ( .24)
------------------------------------------------ -------- ------- ------- ------- --------
Increase from regulatory settlements - - - .02 (c) -
------------------------------------------------ -------- ------- ------- ------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- ------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD $ 8.02 $ 6.71 $ 6.55 $ 7.17 $ 6.40
------------------------------------------------ -------- ------- ------- ------- --------
Total Return (%) 22.65 (b) 5.14 (6.10) 14.10 21.61 (b)
------------------------------------------------ -------- ------- ------- ------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 25 32 29 52 47
------------------------------------------------ -------- ------- ------- ------- --------
Ratio of expenses before expense reductions (%) 1.32 1.23 1.25 1.13 1.23
------------------------------------------------- -------- ------- ------- ------- --------
Ratio of expenses after expense reductions (%) 1.24 1.23 1.25 1.13 .94
------------------------------------------------- -------- ------- ------- ------- --------
Ratio of net investment income (%) 1.48 2.71 2.09 1.78 1.99
------------------------------------------------- -------- ------- ------- ------- --------
Portfolio turnover rate (%) 124 21 25 28 152
------------------------------------------------- -------- ------- ------- ------- --------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
(c) Includes a non-recurring payment from the Advisor, which amounted to
$0.013 per share, 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 $0.01 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.35% lower.
* Amount is less than $.005.
92
Financial Highlights
DWS GLOBAL EQUITY FUND - CLASS S
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------- ---------- ---------- --------------- ----------
SELECTED PER SHARE DATA
------------------------------------------------------------------------------------ - -
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.71 $ 6.54 $ 7.15 $ 6.40 $ 5.51
------------------------------------------------ ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income (loss)(a) .11 .16 .14 .10 .11
------------------------------------------------ ------- ------- ------- ------- -------
Net realized and unrealized gain (loss) 1.36 .16 ( .57) .75 1.02
------------------------------------------------ ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 1.47 .32 ( .43) .85 1.13
------------------------------------------------ ------- ------- ------- ------- -------
Less distributions from:
Net investment income ( .18) ( .15) ( .18) ( .12) ( .24)
------------------------------------------------ ------- ------- ------- ------- -------
Increase from regulatory settlements - - - .02 (c) -
------------------------------------------------ ------- ------- ------- ------- -------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 8.00 $ 6.71 $ 6.54 $ 7.15 $ 6.40
------------------------------------------------ ------- ------- ------- ------- -------
Total Return (%)(b) 22.28 5.05 (6.17) 13.72 21.75
------------------------------------------------ ------- ------- ------- ------- -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------ ------- -------
Net assets, end of period ($ millions) 13 12 14 16 21
------------------------------------------------ ------- ------- ------- ------- -------
Ratio of expenses before expense reductions (%) 1.52 1.44 1.46 1.42 1.34
------------------------------------------------- ------- ------- ------- ------- -------
Ratio of expenses after expense reductions (%) 1.34 1.34 1.44 1.39 .94
------------------------------------------------- ------- ------- ------- ------- -------
Ratio of net investment income (%) 1.48 2.53 1.90 1.52 1.99
------------------------------------------------- ------- ------- ------- ------- -------
Portfolio turnover rate (%) 124 21 25 28 152
------------------------------------------------- ------- ------- ------- ------- -------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
(c) Includes a non-recurring payment from the Advisor, which amounted to
$0.012 per share, 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 $0.01 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.35% lower.
* Amount is less than $.005.
93
Financial Highlights
DWS GLOBAL SMALL CAP FUND - CLASS A
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ----------- ---------------- ----------------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 37.08 $ 36.72 $ 36.63 $ 29.06 $ 22.54
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) ( .01) ( .03) ( .01) ( .05) .01
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 12.15 1.24 .41 7.47 6.70
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 12.14 1.21 .40 7.42 6.71
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income - ( .23) ( .31) - ( .19)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains ( 2.29) ( .62) - - -
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( 2.29) ( .85) ( .31) - ( .19)
------------------------------------------------ -------- -------- -------- -------- --------
Increase from regulatory settlements - - - .15 (d) -
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 46.93 $ 37.08 $ 36.72 $ 36.63 $ 29.06
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(b) 34.54 (c) 3.48 (c) 1.07 26.05 30.15 (c)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 131 95 110 131 124
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.55 1.58 1.57 1.63 1.72
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.52 1.51 1.57 1.63 1.56
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of net investment income (loss) (%) ( .01) ( .09) ( .01) ( .18) .02
------------------------------------------------ -------- -------- -------- -------- --------
Portfolio turnover rate (%) 40 33 36 38 53
------------------------------------------------ -------- -------- -------- -------- --------
(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) Includes a non-recurring payment from the Advisor, which amounted to
$0.083 per share, 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 $0.062 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.50% lower.
* Amount is less than $.005.
94
Financial Highlights
DWS GLOBAL SMALL CAP FUND - CLASS B
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ----------- ---------------- ----------------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 33.30 $ 33.08 $ 32.99 $ 26.40 $ 20.47
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) ( .27) ( .29) ( .29) ( .25) ( .12)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 10.79 1.13 .38 6.71 6.08
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 10.52 .84 .09 6.46 5.96
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income - - - - ( .03)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains ( 2.29) ( .62) - - -
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( 2.29) ( .62) - - ( .03)
------------------------------------------------ -------- -------- -------- -------- --------
Increase from regulatory settlements - - - .13 (d) -
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 41.53 $ 33.30 $ 33.08 $ 32.99 $ 26.40
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(b) 33.54 (c) 2.68 (c) .27 24.96 (c) 29.21 (c)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 3 4 6 8 10
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 2.38 2.39 2.37 2.51 2.67
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 2.27 2.26 2.37 2.49 2.31
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of net investment income (loss) (%) ( .75) ( .90) ( .83) ( 1.04) ( .73)
------------------------------------------------ -------- -------- -------- -------- --------
Portfolio turnover rate (%) 40 33 36 38 53
------------------------------------------------ -------- -------- -------- -------- --------
(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) Includes a non-recurring payment from the Advisor, which amounted to
$0.071 per share, 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 $0.055 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.50% lower.
* Amount is less than $.005.
95
Financial Highlights
DWS GLOBAL SMALL CAP FUND - CLASS C
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ----------- ---------------- ----------------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 33.51 $ 33.28 $ 33.18 $ 26.53 $ 20.58
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) ( .28) ( .28) ( .26) ( .23) ( .12)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 10.88 1.13 .37 6.75 6.10
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 10.60 .85 .11 6.52 5.98
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income - - ( .01) - ( .03)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains ( 2.29) ( .62) - - -
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( 2.29) ( .62) ( .01) - ( .03)
------------------------------------------------ -------- -------- -------- -------- --------
Increase from regulatory settlements - - - .13 (d) -
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 41.82 $ 33.51 $ 33.28 $ 33.18 $ 26.53
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(b) 33.57 (c) 2.69 (c) .32 25.07 29.15 (c)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 17 13 17 20 19
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 2.32 2.34 2.32 2.40 2.52
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 2.27 2.26 2.32 2.40 2.32
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of net investment income (loss) (%) ( .76) ( .87) ( .75) ( .95) ( .74)
------------------------------------------------ -------- -------- -------- -------- --------
Portfolio turnover rate (%) 40 33 36 38 53
------------------------------------------------ -------- -------- -------- -------- --------
(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) Includes a non-recurring payment from the Advisor, which amounted to
$0.077 per share, 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 $0.056 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.50% lower.
* Amount is less than $.005.
96
Financial Highlights
DWS GLOBAL SMALL CAP FUND - INSTITUTIONAL CLASS
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
----------- ----------- ----------- ---------------- -----------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 38.19 $ 37.85 $ 37.80 $ 29.84 $ 23.17
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .10 .15 .23 .10 .07
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 12.58 1.22 .35 7.71 6.89
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 12.68 1.37 .58 7.81 6.96
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .07) ( .41) ( .53) - ( .29)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains ( 2.29) ( .62) - - -
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( 2.36) ( 1.03) ( .53) - ( .29)
------------------------------------------------ -------- -------- -------- -------- --------
Increase from regulatory settlements - - - .15 (b) -
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 48.51 $ 38.19 $ 37.85 $ 37.80 $ 29.84
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%) 35.02 3.85 1.47 26.68 30.60
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 28 6 2 6 3
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.21 1.16 1.14 1.13 1.17
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.21 1.16 1.14 1.13 1.17
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (loss) (%) .23 .41 .57 .33 .41
------------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 40 33 36 38 53
------------------------------------------------- -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Includes a non-recurring payment from the Advisor, which amounted to
$0.079 per share, 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 $0.070 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.50% lower.
* Amount is less than $.005.
97
Financial Highlights
DWS GLOBAL SMALL CAP FUND - CLASS S
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ----------- ---------------- ----------------
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 38.17 $ 37.82 $ 37.74 $ 29.85 $ 23.16
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .11 .06 .12 .04 .06
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 12.54 1.27 .43 7.70 6.89
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 12.65 1.33 .55 7.74 6.95
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .03) ( .36) ( .47) - ( .26)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains ( 2.29) ( .62) - - -
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( 2.32) ( .98) ( .47) - ( .26)
------------------------------------------------ -------- -------- -------- -------- --------
Increase from regulatory settlements - - - .15 (c) -
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 48.50 $ 38.17 $ 37.82 $ 37.74 $ 29.85
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%) 34.92 (b) 3.73 (b) 1.40 26.43 30.48 (b)
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 338 270 291 314 279
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.25 1.27 1.25 1.30 1.32
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.25 1.26 1.25 1.30 1.30
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of net investment income (loss) (%) .26 .17 .31 .16 .28
------------------------------------------------ -------- -------- -------- -------- --------
Portfolio turnover rate (%) 40 33 36 38 53
------------------------------------------------ -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
(c) Includes a non-recurring payment from the Advisor, which amounted to
$0.086 per share, 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 $0.063 per share of
non-affiliated regulatory settlements. Excluding these non-recurring
payments, total return would have been 0.50% lower.
* Amount is less than $.005.
98
Financial Highlights
DWS LATIN AMERICA EQUITY FUND - CLASS A
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
------------------ ---------------- ----------- ----------- -----------
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 40.27 $ 43.85 $ 54.97 $ 47.75 $ 31.89
------------------------------------------------ --------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .21 .41 .69 .42 .44
------------------------------------------------ --------- -------- -------- -------- --------
Net realized and unrealized gain (loss) ( .00)(d)* ( .14) (.8.07) 8.09 19.11
------------------------------------------------ --------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS .21 .27 ( 7.38) 8.51 19.55
------------------------------------------------ --------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .42) ( .02) ( 1.38) ( 1.29) ( .26)
------------------------------------------------ --------- -------- -------- -------- --------
Net realized gains ( 9.01) ( 3.83) ( 2.36) - ( 3.43)
------------------------------------------------ --------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( 9.43) ( 3.85) ( 3.74) ( 1.29) ( 3.69)
------------------------------------------------ --------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ --------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 31.05 $ 40.27 $ 43.85 $ 54.97 $ 47.75
------------------------------------------------ --------- -------- -------- -------- --------
Total Return (%)(b) ( .49)(c) 1.19 (c) (14.44) 18.05 70.81
------------------------------------------------ --------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 20 25 35 58 59
------------------------------------------------ --------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.84 1.79 1.73 1.76 1.82
------------------------------------------------- --------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.60 1.70 1.73 1.76 1.82
------------------------------------------------- --------- -------- -------- -------- --------
Ratio of net investment income (%) .65 1.00 1.38 .84 1.27
------------------------------------------------- --------- -------- -------- -------- --------
Portfolio turnover rate (%) 156 163 35 37 95
------------------------------------------------- --------- -------- -------- -------- --------
(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) The amount of net realized and unrealized gain shown for a share
outstanding for the period ended October 31, 2013 does not
correspond with the aggregate net loss on investments for the period
due to the timing of sales and repurchases of the Fund shares in
relation to fluctuating market values of the investments of the
Fund.
* Amount is less than $.005.
99
Financial Highlights
DWS LATIN AMERICA EQUITY FUND - CLASS B
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
------------------ ---------------- ----------------- ----------- -----------
SELECTED PER SHARE DATA
------------------------------------------------------------------------------------------------------------------ -
NET ASSET VALUE, BEGINNING OF PERIOD $ 38.86 $ 42.72 $ 53.60 $ 46.52 $ 31.14
------------------------------------------------ --------- -------- --------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) ( .02) .11 .28 .05 .16
------------------------------------------------ --------- -------- --------- -------- --------
Net realized and unrealized gain (loss) ( .00)(d)* ( .14) ( 7.89) 7.85 18.65
------------------------------------------------ --------- -------- --------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ( .02) ( .03) ( 7.61) 7.90 18.81
------------------------------------------------ --------- -------- --------- -------- --------
Less distributions from:
Net investment income ( .11) - ( .91) ( .82) -
------------------------------------------------ --------- -------- --------- -------- --------
Net realized gains ( 9.01) ( 3.83) ( 2.36) - ( 3.43)
------------------------------------------------ --------- -------- --------- -------- --------
TOTAL DISTRIBUTIONS ( 9.12) ( 3.83) ( 3.27) ( .82) ( 3.43)
------------------------------------------------ --------- -------- --------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ --------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 29.72 $ 38.86 $ 42.72 $ 53.60 $ 46.52
------------------------------------------------ --------- -------- --------- -------- --------
Total Return (%)(b) ( 1.25)(c) .45 (c) (15.12)(c) 17.11 69.31
------------------------------------------------ --------- -------- --------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------------ --------
Net assets, end of period ($ millions) 1 1 3 6 6
------------------------------------------------ --------- -------- --------- -------- --------
Ratio of expenses before expense reductions (%) 2.71 2.58 2.53 2.55 2.72
------------------------------------------------ --------- -------- --------- -------- --------
Ratio of expenses after expense reductions (%) 2.35 2.46 2.52 2.55 2.72
------------------------------------------------ --------- -------- --------- -------- --------
Ratio of net investment income (loss) (%) ( .05) .29 .58 .05 .38
------------------------------------------------ --------- -------- --------- -------- --------
Portfolio turnover rate (%) 156 163 35 37 95
------------------------------------------------ --------- -------- --------- -------- --------
(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) The amount of net realized and unrealized gain shown for a share
outstanding for the period ended October 31, 2013 does not
correspond with the aggregate net loss on investments for the period
due to the timing of sales and repurchases of the Fund shares in
relation to fluctuating market values of the investments of the
Fund.
* Amount is less than $.005.
100
Financial Highlights
DWS LATIN AMERICA EQUITY FUND - CLASS C
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
------------------ ---------------- ----------------- ----------- -----------
SELECTED PER SHARE DATA
------------------------------------------------------------------------------------------------------------------ -
NET ASSET VALUE, BEGINNING OF PERIOD $ 38.85 $ 42.71 $ 53.58 $ 46.46 $ 31.12
------------------------------------------------ --------- -------- --------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) ( .03) .09 .28 .05 .15
------------------------------------------------ --------- -------- --------- -------- --------
Net realized and unrealized gain (loss) ( .00)(d)* ( .12) ( 7.88) 7.84 18.62
------------------------------------------------ --------- -------- --------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS ( .03) ( .03) ( 7.60) 7.89 18.77
------------------------------------------------ --------- -------- --------- -------- --------
Less distributions from:
Net investment income ( .11) - ( .91) ( .77) -
------------------------------------------------ --------- -------- --------- -------- --------
Net realized gains ( 9.01) ( 3.83) ( 2.36) - ( 3.43)
------------------------------------------------ --------- -------- --------- -------- --------
TOTAL DISTRIBUTIONS ( 9.12) ( 3.83) ( 3.27) ( .77) ( 3.43)
------------------------------------------------ --------- -------- --------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ --------- -------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 29.70 $ 38.85 $ 42.71 $ 53.58 $ 46.46
------------------------------------------------ --------- -------- --------- -------- --------
Total Return (%)(b) ( 1.24)(c) .45 (c) (15.12)(c) 17.12 69.27
------------------------------------------------ --------- -------- --------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------------ --------
Net assets, end of period ($ millions) 4 5 7 11 12
------------------------------------------------ --------- -------- --------- -------- --------
Ratio of expenses before expense reductions (%) 2.63 2.55 2.53 2.56 2.75
------------------------------------------------ --------- -------- --------- -------- --------
Ratio of expenses after expense reductions (%) 2.35 2.45 2.53 2.56 2.75
------------------------------------------------ --------- -------- --------- -------- --------
Ratio of net investment income (loss) (%) ( .09) .24 .57 .04 .34
------------------------------------------------ --------- -------- --------- -------- --------
Portfolio turnover rate (%) 156 163 35 37 95
------------------------------------------------ --------- -------- --------- -------- --------
(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) The amount of net realized and unrealized gain shown for a share
outstanding for the period ended October 31, 2013 does not
correspond with the aggregate net loss on investments for the period
due to the timing of sales and repurchases of the Fund shares in
relation to fluctuating market values of the investments of the
Fund.
* Amount is less than $.005.
101
Financial Highlights
DWS LATIN AMERICA EQUITY FUND - CLASS S
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ----------- ----------- -----------
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 40.24 $ 43.86 $ 55.00 $ 47.89 $ 32.03
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss)(a) .29 .49 .84 .58 .56
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) .01 (c) ( .12) ( 8.08) 8.12 19.14
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS .30 .37 ( 7.24) 8.70 19.70
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .53) ( .16) ( 1.54) ( 1.59) ( .41)
------------------------------------------------ -------- -------- -------- -------- --------
Net realized gains ( 9.01) ( 3.83) ( 2.36) - ( 3.43)
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ( 9.54) ( 3.99) ( 3.90) ( 1.59) ( 3.84)
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 31.00 $ 40.24 $ 43.86 $ 55.00 $ 47.89
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%) ( .23)(b) 1.45 (b) (14.19) 18.45 71.37
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 442 521 565 738 697
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.51 1.48 1.42 1.43 1.47
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 1.35 1.47 1.42 1.43 1.47
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (%) .90 1.21 1.71 1.16 1.62
------------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 156 163 35 37 95
------------------------------------------------- -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
(c) The amount of net realized and unrealized gain shown for a share
outstanding for the period ended October 31, 2013 does not
correspond with the aggregate net loss on investments for the period
due to the timing of sales and repurchases of the Fund shares in
relation to fluctuating market values of the investments of the
Fund.
* Amount is less than $.005.
102
Financial Highlights
DWS WORLD DIVIDEND FUND - CLASS A
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
----------- ----------- ---------------- ---------------- -----------
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 23.48 $ 22.78 $ 23.58 $ 22.34 $ 19.21
------------------------------------------ ------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .50 .57 .61 .30 .32
------------------------------------------- ------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 4.80 .81 ( .40) 1.39 3.66
------------------------------------------- ------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 5.30 1.38 .21 1.69 3.98
------------------------------------------- ------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .68) ( .68) ( 1.06) ( .66) ( .85)
------------------------------------------- ------- -------- -------- -------- --------
Increase from regulatory settlements - - .05 (c) .21 (c) -
------------------------------------------- ------- -------- -------- -------- --------
Redemption fees ( .00)* .00* .00* .00* .00*
------------------------------------------- ------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 28.10 $ 23.48 $ 22.78 $ 23.58 $ 22.34
------------------------------------------- ------- -------- -------- -------- --------
Total Return (%)(b) 23.01 6.24 1.16 8.71 21.98
------------------------------------------- ------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 102 94 85 42 47
------------------------------------------- ------- -------- -------- -------- --------
Ratio of expenses (%) 1.28 1.29 1.35 1.45 1.53
------------------------------------------- ------- -------- -------- -------- --------
Ratio of net investment income (%) 1.95 2.51 2.63 1.37 1.70
------------------------------------------- ------- -------- -------- -------- --------
Portfolio turnover rate (%) 28 19 82 204 92
------------------------------------------- ------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Total return does not reflect the effect of any sales charges.
(c) Includes a non-recurring payment from the Advisor, which amounted to
$0.093 per share for the period ended October 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 $0.051 and $0.115 per share of non-affiliated
regulatory settlements for the periods ended October 31, 2011 and
2010, respectively. Excluding these non-recurring payments, total
return would have been 0.22% and 0.93% lower for the periods ended
October 31, 2011 and 2010, respectively.
* Amount is less than $.005.
103
Financial Highlights
DWS WORLD DIVIDEND FUND - CLASS B
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
----------- ----------- ---------------- ---------------- -----------
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 23.23 $ 22.54 $ 23.19 $ 22.03 $ 18.89
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .28 .37 .38 .11 .19
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 4.77 .79 ( .39) 1.38 3.61
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 5.05 1.16 ( .01) 1.49 3.80
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .45) ( .47) ( .69) ( .52) ( .66)
------------------------------------------------ -------- -------- -------- -------- --------
Increase from regulatory settlements - - .05 (d) .19 (d) -
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 27.83 $ 23.23 $ 22.54 $ 23.19 $ 22.03
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(b,c) 22.01 5.31 .19 7.76 21.09
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) .2 .1 .2 .4 1
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 2.57 2.65 2.50 2.62 2.67
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 2.09 2.18 2.33 2.35 2.24
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (%) 1.09 1.63 1.62 .46 .99
------------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 28 19 82 204 92
------------------------------------------------- -------- -------- -------- -------- --------
(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) Includes a non-recurring payment from the Advisor, which amounted to
$0.079 per share for the period ended October 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 $0.051 and $0.110 per share of non-affiliated
regulatory settlements for the periods ended October 31, 2011 and
2010, respectively. Excluding these non-recurring payments, total
return would have been 0.22% and 0.93% lower for the periods ended
October 31, 2011 and 2010, respectively.
* Amount is less than $.005.
104
Financial Highlights
DWS WORLD DIVIDEND FUND - CLASS C
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
----------- ---------------- ---------------- ---------------- -----------
SELECTED PER SHARE DATA
------------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 23.30 $ 22.60 $ 23.24 $ 21.99 $ 18.91
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .31 .41 .37 .12 .15
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 4.77 .80 ( .35) 1.36 3.61
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 5.08 1.21 .02 1.48 3.76
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .49) ( .51) ( .71) ( .44) ( .68)
------------------------------------------------ -------- -------- -------- -------- --------
Increase from regulatory settlements - - .05 (d) .21 (d) -
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 27.89 $ 23.30 $ 22.60 $ 23.24 $ 21.99
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%)(c) 22.09 5.51 (b) .31 7.82 20.88
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 30 23 15 2 3
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 2.00 2.02 2.11 2.29 2.44
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses after expense reductions (%) 2.00 2.02 2.11 2.29 2.44
------------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (%) 1.22 1.81 1.66 .52 .79
------------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 28 19 82 204 92
------------------------------------------------- -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
(c) Total return does not reflect the effect of any sales charges.
(d) Includes a non-recurring payment from the Advisor, which amounted to
$0.093 per share for the period ended October 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 $0.051 and $0.114 per share of non-affiliated
regulatory settlements for the periods ended October 31, 2011 and
2010, respectively. Excluding these non-recurring payments, total
return would have been 0.22% and 0.93% lower for the periods ended
October 31, 2011 and 2010, respectively.
* Amount is less than $.005.
105
Financial Highlights
DWS WORLD DIVIDEND FUND - INSTITUTIONAL CLASS
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
----------- ----------- ---------------- ---------------- -----------
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 23.71 $ 23.03 $ 23.95 $ 22.72 $ 19.52
------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .58 .65 .75 .41 .42
------------------------------------------- -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 4.86 .81 ( .45) 1.43 3.72
------------------------------------------- -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 5.44 1.46 .30 1.84 4.14
------------------------------------------- -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .77) ( .78) ( 1.27) ( .83) ( .94)
------------------------------------------- -------- -------- -------- -------- --------
Increase from regulatory settlements - - .05 (b) .22 (b) -
------------------------------------------- -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 28.38 $ 23.71 $ 23.03 $ 23.95 $ 22.72
------------------------------------------- -------- -------- -------- -------- --------
Total Return (%) 23.36 6.59 1.55 9.25 22.69
------------------------------------------- -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 10 9 8 13 18
------------------------------------------- -------- -------- -------- -------- --------
Ratio of expenses (%) .96 .99 .95 .96 .96
------------------------------------------- -------- -------- -------- -------- --------
Ratio of net investment income (%) 2.26 2.81 3.15 1.86 2.27
------------------------------------------- -------- -------- -------- -------- --------
Portfolio turnover rate (%) 28 19 82 204 92
------------------------------------------- -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Includes a non-recurring payment from the Advisor, which amounted to
$0.098 per share for the period ended October 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 $0.051 and $0.119 per share of non-affiliated
regulatory settlements for the periods ended October 31, 2011 and
2010, respectively. Excluding these non-recurring payments, total
return would have been 0.22% and 0.93% lower and the periods ended
October 31, 2011 and 2010, respectively.
* Amount is less than $.005.
106
Financial Highlights
DWS WORLD DIVIDEND FUND - CLASS S
YEARS ENDED OCTOBER 31,
2013 2012 2011 2010 2009
---------------- ---------------- ---------------- ---------------- -----------
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING OF PERIOD $ 23.50 $ 22.81 $ 23.66 $ 22.42 $ 19.27
------------------------------------------------ -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(a) .54 .61 .68 .35 .37
------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) 4.81 .81 ( .42) 1.41 3.67
------------------------------------------------ -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 5.35 1.42 .26 1.76 4.04
------------------------------------------------ -------- -------- -------- -------- --------
Less distributions from:
Net investment income ( .72) ( .73) ( 1.16) ( .73) ( .89)
------------------------------------------------ -------- -------- -------- -------- --------
Increase from regulatory settlements - - .05 (c) .21 (c) -
------------------------------------------------ -------- -------- -------- -------- --------
Redemption fees .00* .00* .00* .00* .00*
------------------------------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 28.13 $ 23.50 $ 22.81 $ 23.66 $ 22.42
------------------------------------------------ -------- -------- -------- -------- --------
Total Return (%) 23.19 (b) 6.44 (b) 1.37 8.95 22.35
------------------------------------------------ -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------------------- --------
Net assets, end of period ($ millions) 207 168 167 173 185
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of expenses before expense reductions (%) 1.10 1.13 1.15 1.21 1.24
------------------------------------------------ -------- -------- -------- -------- --------
Ration of expenses after expense reductions (%) 1.09 1.13 1.15 1.21 1.24
------------------------------------------------ -------- -------- -------- -------- --------
Ratio of net investment income (%) 2.12 2.67 2.89 1.60 1.99
------------------------------------------------ -------- -------- -------- -------- --------
Portfolio turnover rate (%) 28 19 82 204 92
------------------------------------------------ -------- -------- -------- -------- --------
(a) Based on average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been
reduced.
(c) Includes a non-recurring payment from the Advisor, which amounted to
$0.093 per share for the period ended October 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 $0.051 and $0.115 per share of non-affiliated
regulatory settlements for the periods ended October 31, 2011 and
2010, respectively. Excluding these non-recurring payments, total
return would have been 0.22% and 0.93% lower for the periods ended
October 31, 2011 and 2010, respectively.
* Amount is less than $.005.
107
Financial Highlights
[GRAPHIC APPEARS HERE]
Appendix
HYPOTHETICAL EXPENSE SUMMARY
Using the annual fund operating expense ratios presented in the fee tables in
the fund prospectus, the Hypothetical Expense Summary shows the estimated fees
and expenses, in actual dollars, that would be charged on a hypothetical
investment of $10,000 in the fund held for the next 10 years and the impact of
such fees and expenses on fund returns for each year and cumulatively, assuming
a 5% return for each year. The historical rate of return for the fund may be
higher or lower than 5% and, for money market funds, is typically less than 5%.
The tables also assume that all dividends and distributions are reinvested and
that Class B shares convert to Class A shares after six years. The annual fund
expense ratios shown are net of any contractual fee waivers or expense
reimbursements, if any, for the period of the contractual commitment. The
tables reflect the maximum initial sales charge, if any, but do not reflect any
contingent deferred sales charge or redemption fees, if any, which may be
payable upon redemption. If contingent deferred sales charges or redemption
fees were shown, the "Hypothetical Year-End Balance After Fees and Expenses"
amounts shown would be lower and the "Annual Fees and Expenses" amounts shown
would be higher. Also, please note that if you are investing through a third
party provider, that provider may have fees and expenses separate from those of
the fund that are not reflected here. Mutual fund fees and expenses fluctuate
over time and actual expenses may be higher or lower than those shown.
The Hypothetical Expense Summary should not be used or construed as an offer to
sell, a solicitation of an offer to buy or a recommendation or endorsement of
any specific mutual fund. You should carefully review the fund's prospectus to
consider the investment objectives, risks, expenses and charges of the fund
prior to investing.
DWS EMERGING MARKETS EQUITY FUND - CLASS A
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
5.75% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.82% -2.75% $ 9,724.72 $ 749.26
--- ----- ---- ------ ----------- ----------
2 10.25% 1.96% 0.20% $ 10,020.35 $ 193.50
--- ----- ---- ------ ----------- ----------
3 15.76% 1.96% 3.25% $ 10,324.96 $ 199.38
--- ----- ---- ------ ----------- ----------
4 21.55% 1.96% 6.39% $ 10,638.84 $ 205.45
--- ----- ---- ------ ----------- ----------
5 27.63% 1.96% 9.62% $ 10,962.26 $ 211.69
--- ----- ---- ------ ----------- ----------
6 34.01% 1.96% 12.96% $ 11,295.52 $ 218.13
--- ----- ---- ------ ----------- ----------
7 40.71% 1.96% 16.39% $ 11,638.90 $ 224.76
--- ----- ---- ------ ----------- ----------
8 47.75% 1.96% 19.93% $ 11,992.72 $ 231.59
--- ----- ---- ------ ----------- ----------
9 55.13% 1.96% 23.57% $ 12,357.30 $ 238.63
--- ----- ---- ------ ----------- ----------
10 62.89% 1.96% 27.33% $ 12,732.96 $ 245.88
--- ----- ---- ------ ----------- ----------
TOTAL $ 2,718.27
--- ----------
108
Appendix
DWS EMERGING MARKETS EQUITY FUND - CLASS B
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.57% 2.43% $ 10,243.00 $ 260.12
--- ----- ---- ----- ----------- ----------
2 10.25% 2.87% 4.61% $ 10,461.18 $ 297.10
--- ----- ---- ----- ----------- ----------
3 15.76% 2.87% 6.84% $ 10,684.00 $ 303.43
--- ----- ---- ----- ----------- ----------
4 21.55% 2.87% 9.12% $ 10,911.57 $ 309.90
--- ----- ---- ----- ----------- ----------
5 27.63% 2.87% 11.44% $ 11,143.98 $ 316.50
--- ----- ---- ----- ----------- ----------
6 34.01% 2.87% 13.81% $ 11,381.35 $ 323.24
--- ----- ---- ----- ----------- ----------
7 40.71% 1.96% 17.27% $ 11,727.34 $ 226.47
--- ----- ---- ----- ----------- ----------
8 47.75% 1.96% 20.84% $ 12,083.86 $ 233.35
--- ----- ---- ----- ----------- ----------
9 55.13% 1.96% 24.51% $ 12,451.20 $ 240.44
--- ----- ---- ----- ----------- ----------
10 62.89% 1.96% 28.30% $ 12,829.72 $ 247.75
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,758.30
--- ----------
DWS EMERGING MARKETS EQUITY FUND - CLASS C
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.57% 2.43% $ 10,243.00 $ 260.12
--- ----- ---- ----- ----------- ----------
2 10.25% 2.77% 4.71% $ 10,471.42 $ 286.89
--- ----- ---- ----- ----------- ----------
3 15.76% 2.77% 7.05% $ 10,704.93 $ 293.29
--- ----- ---- ----- ----------- ----------
4 21.55% 2.77% 9.44% $ 10,943.65 $ 299.83
--- ----- ---- ----- ----------- ----------
5 27.63% 2.77% 11.88% $ 11,187.69 $ 306.52
--- ----- ---- ----- ----------- ----------
6 34.01% 2.77% 14.37% $ 11,437.18 $ 313.35
--- ----- ---- ----- ----------- ----------
7 40.71% 2.77% 16.92% $ 11,692.23 $ 320.34
--- ----- ---- ----- ----------- ----------
8 47.75% 2.77% 19.53% $ 11,952.97 $ 327.49
--- ----- ---- ----- ----------- ----------
9 55.13% 2.77% 22.20% $ 12,219.52 $ 334.79
--- ----- ---- ----- ----------- ----------
10 62.89% 2.77% 24.92% $ 12,492.01 $ 342.25
--- ----- ---- ----- ----------- ----------
TOTAL $ 3,084.87
--- ----------
109
Appendix
DWS EMERGING MARKETS EQUITY FUND - INSTITUTIONAL CLASS
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.52% 3.48% $ 10,348.00 $ 154.64
--- ----- ---- ----- ----------- ----------
2 10.25% 1.52% 7.08% $ 10,708.11 $ 160.33
--- ----- ---- ----- ----------- ----------
3 15.76% 1.52% 10.81% $ 11,080.75 $ 165.60
--- ----- ---- ----- ----------- ----------
4 21.55% 1.52% 14.66% $ 11,466.36 $ 171.36
--- ----- ---- ----- ----------- ----------
5 27.63% 1.52% 18.65% $ 11,865.39 $ 177.32
--- ----- ---- ----- ----------- ----------
6 34.01% 1.52% 22.78% $ 12,278.31 $ 183.49
--- ----- ---- ----- ----------- ----------
7 40.71% 1.52% 27.06% $ 12,705.59 $ 189.88
--- ----- ---- ----- ----------- ----------
8 47.75% 1.52% 31.48% $ 13,147.75 $ 196.49
--- ----- ---- ----- ----------- ----------
9 55.13% 1.52% 36.05% $ 13,605.29 $ 203.32
--- ----- ---- ----- ----------- ----------
10 62.89% 1.52% 40.79% $ 14,078.75 $ 210.40
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,812.53
--- ----------
DWS EMERGING MARKETS EQUITY FUND - CLASS S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.57% 3.43% $ 10,343.00 $ 159.69
--- ----- ---- ----- ----------- ----------
2 10.25% 1.73% 6.81% $ 10,681.22 $ 181.86
--- ----- ---- ----- ----------- ----------
3 15.76% 1.73% 10.30% $ 11,030.49 $ 187.81
--- ----- ---- ----- ----------- ----------
4 21.55% 1.73% 13.91% $ 11,391.19 $ 193.95
--- ----- ---- ----- ----------- ----------
5 27.63% 1.73% 17.64% $ 11,763.68 $ 200.29
--- ----- ---- ----- ----------- ----------
6 34.01% 1.73% 21.48% $ 12,148.35 $ 206.84
--- ----- ---- ----- ----------- ----------
7 40.71% 1.73% 25.46% $ 12,545.60 $ 213.60
--- ----- ---- ----- ----------- ----------
8 47.75% 1.73% 29.56% $ 12,955.85 $ 220.59
--- ----- ---- ----- ----------- ----------
9 55.13% 1.73% 33.80% $ 13,379.50 $ 227.80
--- ----- ---- ----- ----------- ----------
10 62.89% 1.73% 38.17% $ 13,817.01 $ 235.25
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,027.68
--- ----------
110
Appendix
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - CLASS A
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
4.50% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.23% -0.90% $ 9,910.04 $ 569.68
--- ----- ---- ------ ----------- ----------
2 10.25% 1.23% 2.84% $ 10,283.64 $ 124.19
--- ----- ---- ------ ----------- ----------
3 15.76% 1.23% 6.71% $ 10,671.34 $ 128.87
--- ----- ---- ------ ----------- ----------
4 21.55% 1.23% 10.74% $ 11,073.65 $ 133.73
--- ----- ---- ------ ----------- ----------
5 27.63% 1.23% 14.91% $ 11,491.12 $ 138.77
--- ----- ---- ------ ----------- ----------
6 34.01% 1.23% 19.24% $ 11,924.34 $ 144.01
--- ----- ---- ------ ----------- ----------
7 40.71% 1.23% 23.74% $ 12,373.89 $ 149.43
--- ----- ---- ------ ----------- ----------
8 47.75% 1.23% 28.40% $ 12,840.38 $ 155.07
--- ----- ---- ------ ----------- ----------
9 55.13% 1.23% 33.24% $ 13,324.46 $ 160.91
--- ----- ---- ------ ----------- ----------
10 62.89% 1.23% 38.27% $ 13,826.80 $ 166.98
--- ----- ---- ------ ----------- ----------
TOTAL $ 1,871.64
--- ----------
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - CLASS B
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.02% 2.98% $ 10,298.00 $ 205.01
--- ----- ---- ----- ----------- ----------
2 10.25% 2.08% 5.99% $ 10,598.70 $ 217.33
--- ----- ---- ----- ----------- ----------
3 15.76% 2.08% 9.08% $ 10,908.18 $ 223.67
--- ----- ---- ----- ----------- ----------
4 21.55% 2.08% 12.27% $ 11,226.70 $ 230.20
--- ----- ---- ----- ----------- ----------
5 27.63% 2.08% 15.55% $ 11,554.52 $ 236.92
--- ----- ---- ----- ----------- ----------
6 34.01% 2.08% 18.92% $ 11,891.91 $ 243.84
--- ----- ---- ----- ----------- ----------
7 40.71% 1.23% 23.40% $ 12,340.24 $ 149.03
--- ----- ---- ----- ----------- ----------
8 47.75% 1.23% 28.05% $ 12,805.47 $ 154.65
--- ----- ---- ----- ----------- ----------
9 55.13% 1.23% 32.88% $ 13,288.23 $ 160.48
--- ----- ---- ----- ----------- ----------
10 62.89% 1.23% 37.89% $ 13,789.20 $ 166.53
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,987.66
--- ----------
111
Appendix
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - CLASS C
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.97% 3.03% $ 10,303.00 $ 199.98
--- ----- ---- ----- ----------- ----------
2 10.25% 1.97% 6.15% $ 10,615.18 $ 206.04
--- ----- ---- ----- ----------- ----------
3 15.76% 1.97% 9.37% $ 10,936.82 $ 212.29
--- ----- ---- ----- ----------- ----------
4 21.55% 1.97% 12.68% $ 11,268.21 $ 218.72
--- ----- ---- ----- ----------- ----------
5 27.63% 1.97% 16.10% $ 11,609.63 $ 225.35
--- ----- ---- ----- ----------- ----------
6 34.01% 1.97% 19.61% $ 11,961.41 $ 232.17
--- ----- ---- ----- ----------- ----------
7 40.71% 1.97% 23.24% $ 12,323.84 $ 239.21
--- ----- ---- ----- ----------- ----------
8 47.75% 1.97% 26.97% $ 12,697.25 $ 246.46
--- ----- ---- ----- ----------- ----------
9 55.13% 1.97% 30.82% $ 13,081.97 $ 253.93
--- ----- ---- ----- ----------- ----------
10 62.89% 1.97% 34.78% $ 13,478.36 $ 261.62
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,295.77
--- ----------
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - INSTITUTIONAL CLASS
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 0.81% 4.19% $ 10,419.00 $ 82.70
--- ----- ---- ----- ----------- ----------
2 10.25% 0.81% 8.56% $ 10,855.56 $ 86.16
--- ----- ---- ----- ----------- ----------
3 15.76% 0.81% 13.10% $ 11,310.40 $ 89.77
--- ----- ---- ----- ----------- ----------
4 21.55% 0.81% 17.84% $ 11,784.31 $ 93.53
--- ----- ---- ----- ----------- ----------
5 27.63% 0.81% 22.78% $ 12,278.07 $ 97.45
--- ----- ---- ----- ----------- ----------
6 34.01% 0.81% 27.93% $ 12,792.52 $ 101.54
--- ----- ---- ----- ----------- ----------
7 40.71% 0.81% 33.29% $ 13,328.53 $ 105.79
--- ----- ---- ----- ----------- ----------
8 47.75% 0.81% 38.87% $ 13,887.00 $ 110.22
--- ----- ---- ----- ----------- ----------
9 55.13% 0.81% 44.69% $ 14,468.86 $ 114.84
--- ----- ---- ----- ----------- ----------
10 62.89% 0.81% 50.75% $ 15,075.11 $ 119.65
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,001.65
--- ----------
112
Appendix
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND - CLASS S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- ------------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- -------------
1 5.00% 0.96% 4.04% $ 10,404.00 $ 97.94
--- ----- ---- ----- ----------- ----------
2 10.25% 0.96% 8.24% $ 10,824.32 $ 101.90
--- ----- ---- ----- ----------- ----------
3 15.76% 0.96% 12.62% $ 11,261.62 $ 106.01
--- ----- ---- ----- ----------- ----------
4 21.55% 0.96% 17.17% $ 11,716.59 $ 110.30
--- ----- ---- ----- ----------- ----------
5 27.63% 0.96% 21.90% $ 12,189.94 $ 114.75
--- ----- ---- ----- ----------- ----------
6 34.01% 0.96% 26.82% $ 12,682.42 $ 119.39
--- ----- ---- ----- ----------- ----------
7 40.71% 0.96% 31.95% $ 13,194.79 $ 124.21
--- ----- ---- ----- ----------- ----------
8 47.75% 0.96% 37.28% $ 13,727.86 $ 129.23
--- ----- ---- ----- ----------- ----------
9 55.13% 0.96% 42.82% $ 14,282.46 $ 134.45
--- ----- ---- ----- ----------- ----------
10 62.89% 0.96% 48.59% $ 14,859.47 $ 139.88
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,178.06
--- ----------
DWS ENHANCED GLOBAL BOND FUND - CLASS A
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
4.50% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.10% -0.78% $ 9,922.45 $ 557.10
--- ----- ---- ------ ----------- ----------
2 10.25% 1.17% 3.02% $ 10,302.48 $ 118.32
--- ----- ---- ------ ----------- ----------
3 15.76% 1.17% 6.97% $ 10,697.06 $ 122.85
--- ----- ---- ------ ----------- ----------
4 21.55% 1.17% 11.07% $ 11,106.76 $ 127.55
--- ----- ---- ------ ----------- ----------
5 27.63% 1.17% 15.32% $ 11,532.15 $ 132.44
--- ----- ---- ------ ----------- ----------
6 34.01% 1.17% 19.74% $ 11,973.83 $ 137.51
--- ----- ---- ------ ----------- ----------
7 40.71% 1.17% 24.32% $ 12,432.43 $ 142.78
--- ----- ---- ------ ----------- ----------
8 47.75% 1.17% 29.09% $ 12,908.59 $ 148.24
--- ----- ---- ------ ----------- ----------
9 55.13% 1.17% 34.03% $ 13,402.99 $ 153.92
--- ----- ---- ------ ----------- ----------
10 62.89% 1.17% 39.16% $ 13,916.33 $ 159.82
--- ----- ---- ------ ----------- ----------
TOTAL $ 1,800.53
--- ----------
113
Appendix
DWS ENHANCED GLOBAL BOND FUND - CLASS B
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.85% 3.15% $ 10,315.00 $ 187.91
--- ----- ---- ----- ----------- ----------
2 10.25% 1.97% 6.28% $ 10,627.54 $ 206.28
--- ----- ---- ----- ----------- ----------
3 15.76% 1.97% 9.50% $ 10,949.56 $ 212.53
--- ----- ---- ----- ----------- ----------
4 21.55% 1.97% 12.81% $ 11,281.33 $ 218.97
--- ----- ---- ----- ----------- ----------
5 27.63% 1.97% 16.23% $ 11,623.16 $ 225.61
--- ----- ---- ----- ----------- ----------
6 34.01% 1.97% 19.75% $ 11,975.34 $ 232.45
--- ----- ---- ----- ----------- ----------
7 40.71% 1.17% 24.34% $ 12,433.99 $ 142.79
--- ----- ---- ----- ----------- ----------
8 47.75% 1.17% 29.10% $ 12,910.21 $ 148.26
--- ----- ---- ----- ----------- ----------
9 55.13% 1.17% 34.05% $ 13,404.68 $ 153.94
--- ----- ---- ----- ----------- ----------
10 62.89% 1.17% 39.18% $ 13,918.07 $ 159.84
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,888.58
--- ----------
DWS ENHANCED GLOBAL BOND FUND - CLASS C
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.85% 3.15% $ 10,315.00 $ 187.91
--- ----- ---- ----- ----------- ----------
2 10.25% 1.91% 6.34% $ 10,633.73 $ 200.06
--- ----- ---- ----- ----------- ----------
3 15.76% 1.91% 9.62% $ 10,962.32 $ 206.24
--- ----- ---- ----- ----------- ----------
4 21.55% 1.91% 13.01% $ 11,301.05 $ 212.62
--- ----- ---- ----- ----------- ----------
5 27.63% 1.91% 16.50% $ 11,650.25 $ 219.18
--- ----- ---- ----- ----------- ----------
6 34.01% 1.91% 20.10% $ 12,010.25 $ 225.96
--- ----- ---- ----- ----------- ----------
7 40.71% 1.91% 23.81% $ 12,381.36 $ 232.94
--- ----- ---- ----- ----------- ----------
8 47.75% 1.91% 27.64% $ 12,763.95 $ 240.14
--- ----- ---- ----- ----------- ----------
9 55.13% 1.91% 31.58% $ 13,158.35 $ 247.56
--- ----- ---- ----- ----------- ----------
10 62.89% 1.91% 35.65% $ 13,564.95 $ 255.21
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,227.82
--- ----------
114
Appendix
DWS ENHANCED GLOBAL BOND FUND - CLASS S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 0.85% 4.15% $ 10,415.00 $ 86.76
--- ----- ---- ----- ----------- ----------
2 10.25% 0.87% 8.45% $ 10,845.14 $ 92.48
--- ----- ---- ----- ----------- ----------
3 15.76% 0.87% 12.93% $ 11,293.04 $ 96.30
--- ----- ---- ----- ----------- ----------
4 21.55% 0.87% 17.59% $ 11,759.45 $ 100.28
--- ----- ---- ----- ----------- ----------
5 27.63% 0.87% 22.45% $ 12,245.11 $ 104.42
--- ----- ---- ----- ----------- ----------
6 34.01% 0.87% 27.51% $ 12,750.83 $ 108.73
--- ----- ---- ----- ----------- ----------
7 40.71% 0.87% 32.77% $ 13,277.44 $ 113.22
--- ----- ---- ----- ----------- ----------
8 47.75% 0.87% 38.26% $ 13,825.80 $ 117.90
--- ----- ---- ----- ----------- ----------
9 55.13% 0.87% 43.97% $ 14,396.81 $ 122.77
--- ----- ---- ----- ----------- ----------
10 62.89% 0.87% 49.91% $ 15,991.40 $ 127.84
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,070.70
--- ----------
DWS GLOBAL EQUITY FUND - CLASS A
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
5.75% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.55% -2.50% $ 9,750.16 $ 723.61
--- ----- ---- ------ ----------- ----------
2 10.25% 1.80% 0.62% $ 10,062.17 $ 178.31
--- ----- ---- ------ ----------- ----------
3 15.76% 1.80% 3.84% $ 10,384.16 $ 184.02
--- ----- ---- ------ ----------- ----------
4 21.55% 1.80% 7.16% $ 10,716.45 $ 189.91
--- ----- ---- ------ ----------- ----------
5 27.63% 1.80% 10.59% $ 11,059.38 $ 195.98
--- ----- ---- ------ ----------- ----------
6 34.01% 1.80% 14.13% $ 11,413.28 $ 202.25
--- ----- ---- ------ ----------- ----------
7 40.71% 1.80% 17.79% $ 11,778.50 $ 208.73
--- ----- ---- ------ ----------- ----------
8 47.75% 1.80% 21.55% $ 12,155.41 $ 215.41
--- ----- ---- ------ ----------- ----------
9 55.13% 1.80% 25.44% $ 12,544.39 $ 222.30
--- ----- ---- ------ ----------- ----------
10 62.89% 1.80% 29.46% $ 12,945.81 $ 229.41
--- ----- ---- ------ ----------- ----------
TOTAL $ 2,549.93
--- ----------
115
Appendix
DWS GLOBAL EQUITY FUND - CLASS B
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.30% 2.70% $ 10,270.00 $ 233.11
--- ----- ---- ----- ----------- ----------
2 10.25% 2.74% 5.02% $ 10,502.10 $ 284.58
--- ----- ---- ----- ----------- ----------
3 15.76% 2.74% 7.39% $ 10,739.45 $ 291.01
--- ----- ---- ----- ----------- ----------
4 21.55% 2.74% 9.82% $ 10,982.16 $ 297.59
--- ----- ---- ----- ----------- ----------
5 27.63% 2.74% 12.30% $ 11,230.36 $ 304.31
--- ----- ---- ----- ----------- ----------
6 34.01% 2.74% 14.84% $ 11,484.16 $ 311.19
--- ----- ---- ----- ----------- ----------
7 40.71% 1.80% 18.52% $ 11,851.66 $ 210.02
--- ----- ---- ----- ----------- ----------
8 47.75% 1.80% 22.31% $ 12,230.91 $ 216.74
--- ----- ---- ----- ----------- ----------
9 55.13% 1.80% 26.22% $ 12,622.30 $ 223.68
--- ----- ---- ----- ----------- ----------
10 62.89% 1.80% 30.26% $ 13,026.21 $ 230.84
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,603.07
--- ----------
DWS GLOBAL EQUITY FUND - CLASS C
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.30% 2.70% $ 10,270.00 $ 233.11
--- ----- ---- ----- ----------- ----------
2 10.25% 2.53% 5.24% $ 10,523.67 $ 263.04
--- ----- ---- ----- ----------- ----------
3 15.76% 2.53% 7.84% $ 10,783.60 $ 269.54
--- ----- ---- ----- ----------- ----------
4 21.55% 2.53% 10.50% $ 11,049.96 $ 276.19
--- ----- ---- ----- ----------- ----------
5 27.63% 2.53% 13.23% $ 11,322.89 $ 283.02
--- ----- ---- ----- ----------- ----------
6 34.01% 2.53% 16.03% $ 11,602.57 $ 290.01
--- ----- ---- ----- ----------- ----------
7 40.71% 2.53% 18.89% $ 11,889.15 $ 297.17
--- ----- ---- ----- ----------- ----------
8 47.75% 2.53% 21.83% $ 12,182.81 $ 304.51
--- ----- ---- ----- ----------- ----------
9 55.13% 2.53% 24.84% $ 12,483.73 $ 312.03
--- ----- ---- ----- ----------- ----------
10 62.89% 2.53% 27.92% $ 12,792.08 $ 319.74
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,848.36
--- ----------
116
Appendix
DWS GLOBAL EQUITY FUND - CLASS R
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.80% 3.20% $ 10,320.00 $ 182.88
--- ----- ---- ----- ----------- ----------
2 10.25% 2.08% 6.21% $ 10,621.34 $ 217.79
--- ----- ---- ----- ----------- ----------
3 15.76% 2.08% 9.31% $ 10,931.49 $ 224.15
--- ----- ---- ----- ----------- ----------
4 21.55% 2.08% 12.51% $ 11,250.69 $ 230.69
--- ----- ---- ----- ----------- ----------
5 27.63% 2.08% 15.79% $ 11,579.21 $ 237.43
--- ----- ---- ----- ----------- ----------
6 34.01% 2.08% 19.17% $ 11,917.32 $ 244.36
--- ----- ---- ----- ----------- ----------
7 40.71% 2.08% 22.65% $ 12,265.31 $ 251.50
--- ----- ---- ----- ----------- ----------
8 47.75% 2.08% 26.23% $ 12,623.45 $ 258.84
--- ----- ---- ----- ----------- ----------
9 55.13% 2.08% 29.92% $ 12,992.06 $ 266.40
--- ----- ---- ----- ----------- ----------
10 62.89% 2.08% 33.71% $ 13,371.43 $ 274.18
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,388.22
--- ----------
DWS GLOBAL EQUITY FUND - INSTITUTIONAL CLASS
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.30% 3.70% $ 10,370.00 $ 132.41
--- ----- ---- ----- ----------- ----------
2 10.25% 1.35% 7.49% $ 10,748.51 $ 142.55
--- ----- ---- ----- ----------- ----------
3 15.76% 1.35% 11.41% $ 11,140.83 $ 147.75
--- ----- ---- ----- ----------- ----------
4 21.55% 1.35% 15.47% $ 11,547.47 $ 153.15
--- ----- ---- ----- ----------- ----------
5 27.63% 1.35% 19.69% $ 11,968.95 $ 158.74
--- ----- ---- ----- ----------- ----------
6 34.01% 1.35% 24.06% $ 12,405.81 $ 164.53
--- ----- ---- ----- ----------- ----------
7 40.71% 1.35% 28.59% $ 12,858.63 $ 170.53
--- ----- ---- ----- ----------- ----------
8 47.75% 1.35% 33.28% $ 13,327.97 $ 176.76
--- ----- ---- ----- ----------- ----------
9 55.13% 1.35% 38.14% $ 13,814.44 $ 183.21
--- ----- ---- ----- ----------- ----------
10 62.89% 1.35% 43.19% $ 14,318.66 $ 189.90
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,619.53
--- ----------
117
Appendix
DWS GLOBAL EQUITY FUND - CLASS S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.40% 3.60% $ 10,360.00 $ 142.52
--- ----- ---- ----- ----------- ----------
2 10.25% 1.55% 7.17% $ 10,717.42 $ 163.35
--- ----- ---- ----- ----------- ----------
3 15.76% 1.55% 10.87% $ 11,087.17 $ 168.99
--- ----- ---- ----- ----------- ----------
4 21.55% 1.55% 14.70% $ 11,469.68 $ 174.82
--- ----- ---- ----- ----------- ----------
5 27.63% 1.55% 18.65% $ 11,865.38 $ 180.85
--- ----- ---- ----- ----------- ----------
6 34.01% 1.55% 22.75% $ 12,274.74 $ 187.09
--- ----- ---- ----- ----------- ----------
7 40.71% 1.55% 26.98% $ 12,698.22 $ 193.54
--- ----- ---- ----- ----------- ----------
8 47.75% 1.55% 31.36% $ 13,136.30 $ 200.22
--- ----- ---- ----- ----------- ----------
9 55.13% 1.55% 35.90% $ 13,589.51 $ 207.13
--- ----- ---- ----- ----------- ----------
10 62.89% 1.55% 40.58% $ 14,058.35 $ 214.27
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,832.78
--- ----------
DWS GLOBAL SMALL CAP FUND - CLASS A
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
5.75% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.55% -2.50% $ 9,750.16 $ 723.61
--- ----- ---- ------ ----------- ----------
2 10.25% 1.55% 0.87% $ 10,086.54 $ 153.73
--- ----- ---- ------ ----------- ----------
3 15.76% 1.55% 4.35% $ 10,434.53 $ 159.04
--- ----- ---- ------ ----------- ----------
4 21.55% 1.55% 7.95% $ 10,794.52 $ 164.53
--- ----- ---- ------ ----------- ----------
5 27.63% 1.55% 11.67% $ 11,166.93 $ 170.20
--- ----- ---- ------ ----------- ----------
6 34.01% 1.55% 15.52% $ 11,552.19 $ 176.07
--- ----- ---- ------ ----------- ----------
7 40.71% 1.55% 19.51% $ 11,950.74 $ 182.15
--- ----- ---- ------ ----------- ----------
8 47.75% 1.55% 23.63% $ 12,363.04 $ 188.43
--- ----- ---- ------ ----------- ----------
9 55.13% 1.55% 27.90% $ 12,789.57 $ 194.93
--- ----- ---- ------ ----------- ----------
10 62.89% 1.55% 32.31% $ 13,230.81 $ 201.66
--- ----- ---- ------ ----------- ----------
TOTAL $ 2,314.35
--- ----------
118
Appendix
DWS GLOBAL SMALL CAP FUND - CLASS B
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.38% 2.62% $ 10,262.00 $ 241.12
--- ----- ---- ----- ----------- ----------
2 10.25% 2.38% 5.31% $ 10,530.86 $ 247.44
--- ----- ---- ----- ----------- ----------
3 15.76% 2.38% 8.07% $ 10,806.77 $ 253.92
--- ----- ---- ----- ----------- ----------
4 21.55% 2.38% 10.90% $ 11,089.91 $ 260.57
--- ----- ---- ----- ----------- ----------
5 27.63% 2.38% 13.80% $ 11,380.47 $ 267.40
--- ----- ---- ----- ----------- ----------
6 34.01% 2.38% 16.79% $ 11,678.63 $ 274.40
--- ----- ---- ----- ----------- ----------
7 40.71% 1.55% 20.82% $ 12,081.55 $ 184.14
--- ----- ---- ----- ----------- ----------
8 47.75% 1.55% 24.98% $ 12,498.36 $ 190.49
--- ----- ---- ----- ----------- ----------
9 55.13% 1.55% 29.30% $ 12,929.55 $ 197.07
--- ----- ---- ----- ----------- ----------
10 62.89% 1.55% 33.76% $ 13,375.62 $ 203.87
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,320.42
--- ----------
DWS GLOBAL SMALL CAP FUND - CLASS C
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.32% 2.68% $ 10,268.00 $ 235.11
--- ----- ---- ----- ----------- ----------
2 10.25% 2.32% 5.43% $ 10,543.18 $ 241.41
--- ----- ---- ----- ----------- ----------
3 15.76% 2.32% 8.26% $ 10,825.74 $ 247.88
--- ----- ---- ----- ----------- ----------
4 21.55% 2.32% 11.16% $ 11,115.87 $ 254.52
--- ----- ---- ----- ----------- ----------
5 27.63% 2.32% 14.14% $ 11,413.77 $ 261.34
--- ----- ---- ----- ----------- ----------
6 34.01% 2.32% 17.20% $ 11,719.66 $ 268.35
--- ----- ---- ----- ----------- ----------
7 40.71% 2.32% 20.34% $ 12,033.75 $ 275.54
--- ----- ---- ----- ----------- ----------
8 47.75% 2.32% 23.56% $ 12,356.26 $ 282.92
--- ----- ---- ----- ----------- ----------
9 55.13% 2.32% 26.87% $ 12,687.40 $ 290.51
--- ----- ---- ----- ----------- ----------
10 62.89% 2.32% 30.27% $ 13,027.43 $ 298.29
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,655.87
--- ----------
119
Appendix
DWS GLOBAL SMALL CAP FUND - INSTITUTIONAL CLASS
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.21% 3.79% $ 10,379.00 $ 123.29
--- ----- ---- ----- ----------- ----------
2 10.25% 1.21% 7.72% $ 10,772.36 $ 127.97
--- ----- ---- ----- ----------- ----------
3 15.76% 1.21% 11.81% $ 11,180.64 $ 132.82
--- ----- ---- ----- ----------- ----------
4 21.55% 1.21% 16.04% $ 11,604.38 $ 137.85
--- ----- ---- ----- ----------- ----------
5 27.63% 1.21% 20.44% $ 12,044.19 $ 143.07
--- ----- ---- ----- ----------- ----------
6 34.01% 1.21% 25.01% $ 12,500.66 $ 148.50
--- ----- ---- ----- ----------- ----------
7 40.71% 1.21% 29.74% $ 12,974.44 $ 154.12
--- ----- ---- ----- ----------- ----------
8 47.75% 1.21% 34.66% $ 13,466.17 $ 159.97
--- ----- ---- ----- ----------- ----------
9 55.13% 1.21% 39.77% $ 13,976.54 $ 166.03
--- ----- ---- ----- ----------- ----------
10 62.89% 1.21% 45.06% $ 14,506.25 $ 172.32
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,465.94
--- ----------
DWS GLOBAL SMALL CAP FUND - CLASS S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.25% 3.75% $ 10,375.00 $ 127.34
--- ----- ---- ----- ----------- ----------
2 10.25% 1.25% 7.64% $ 10,764.06 $ 132.12
--- ----- ---- ----- ----------- ----------
3 15.76% 1.25% 11.68% $ 11,167.71 $ 137.07
--- ----- ---- ----- ----------- ----------
4 21.55% 1.25% 15.87% $ 11,586.50 $ 142.21
--- ----- ---- ----- ----------- ----------
5 27.63% 1.25% 20.21% $ 12,021.00 $ 147.55
--- ----- ---- ----- ----------- ----------
6 34.01% 1.25% 24.72% $ 12,471.79 $ 153.08
--- ----- ---- ----- ----------- ----------
7 40.71% 1.25% 29.39% $ 12,939.48 $ 158.82
--- ----- ---- ----- ----------- ----------
8 47.75% 1.25% 34.25% $ 13,424.71 $ 164.78
--- ----- ---- ----- ----------- ----------
9 55,13% 1.25% 39.28% $ 13,928.13 $ 170.96
--- ----- ---- ----- ----------- ----------
10 62.89% 1.25% 44.50% $ 14,450.44 $ 177.37
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,511.30
--- ----------
120
Appendix
DWS LATIN AMERICA EQUITY FUND - CLASS A
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
5.75% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.72% -2.66% $ 9,734.14 $ 739.77
--- ----- ---- ------ ----------- ----------
2 10.25% 1.84% 0.42% $ 10,041.74 $ 181.94
--- ----- ---- ------ ----------- ----------
3 15.76% 1.84% 3.59% $ 10,359.06 $ 187.69
--- ----- ---- ------ ----------- ----------
4 21.55% 1.84% 6.86% $ 10,686.40 $ 193.62
--- ----- ---- ------ ----------- ----------
5 27.63% 1.84% 10.24% $ 11,024.09 $ 199.74
--- ----- ---- ------ ----------- ----------
6 34.01% 1.84% 13.72% $ 11,372.46 $ 206.05
--- ----- ---- ------ ----------- ----------
7 40.71% 1.84% 17.32% $ 11,731.83 $ 212.56
--- ----- ---- ------ ----------- ----------
8 47.75% 1.84% 21.03% $ 12,102.55 $ 219.28
--- ----- ---- ------ ----------- ----------
9 55.13% 1.84% 24.85% $ 12,484.99 $ 226.21
--- ----- ---- ------ ----------- ----------
10 62.89% 1.84% 28.80% $ 12,879.52 $ 233.35
--- ----- ---- ------ ----------- ----------
TOTAL $ 2,600.21
--- ----------
DWS LATIN AMERICA EQUITY FUND - CLASS B
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.47% 2.53% $ 10,253.00 $ 250.12
--- ----- ---- ----- ----------- ----------
2 10.25% 2.71% 4.88% $ 10,487.79 $ 281.04
--- ----- ---- ----- ----------- ----------
3 15.76% 2.71% 7.28% $ 10,727.96 $ 287.47
--- ----- ---- ----- ----------- ----------
4 21.55% 2.71% 9.74% $ 10,973.63 $ 294.06
--- ----- ---- ----- ----------- ----------
5 27.63% 2.71% 12.25% $ 11,224.93 $ 300.79
--- ----- ---- ----- ----------- ----------
6 34.01% 2.71% 14.82% $ 11,481.98 $ 307.68
--- ----- ---- ----- ----------- ----------
7 40.71% 1.84% 18.45% $ 11,844.81 $ 214.61
--- ----- ---- ----- ----------- ----------
8 47.75% 1.84% 22.19% $ 12,219.11 $ 221.39
--- ----- ---- ----- ----------- ----------
9 55.13% 1.84% 26.05% $ 12,605.23 $ 228.38
--- ----- ---- ----- ----------- ----------
10 62.89% 1.84% 30.04% $ 13,003.56 $ 235.60
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,621.14
--- ----------
121
Appendix
DWS LATIN AMERICA EQUITY FUND - CLASS C
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.47% 2.53% $ 10,253.00 $ 250.12
--- ----- ---- ----- ----------- ----------
2 10.25% 2.63% 4.96% $ 10,496.00 $ 272.85
--- ----- ---- ----- ----------- ----------
3 15.76% 2.63% 7.45% $ 10,744.75 $ 279.32
--- ----- ---- ----- ----------- ----------
4 21.55% 2.63% 9.99% $ 10,999.40 $ 285.94
--- ----- ---- ----- ----------- ----------
5 27.63% 2.63% 12.60% $ 11,260.09 $ 292.71
--- ----- ---- ----- ----------- ----------
6 34.01% 2.63% 15.27% $ 11,526.95 $ 299.65
--- ----- ---- ----- ----------- ----------
7 40.71% 2.63% 18.00% $ 11,800.14 $ 306.75
--- ----- ---- ----- ----------- ----------
8 47.75% 2.63% 20.80% $ 12,079.80 $ 314.02
--- ----- ---- ----- ----------- ----------
9 55.13% 2.63% 23.66% $ 12,366.10 $ 321.46
--- ----- ---- ----- ----------- ----------
10 62.89% 2.63% 26.59% $ 12,659.17 $ 329.08
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,951.90
--- ----------
DWS LATIN AMERICA EQUITY FUND - CLASS S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.47% 3.53% $ 10,353.00 $ 149.59
--- ----- ---- ----- ----------- ----------
2 10.25% 1.51% 7.14% $ 10,714.32 $ 159.06
--- ----- ---- ----- ----------- ----------
3 15.76% 1.51% 10.88% $ 11,088.25 $ 164.61
--- ----- ---- ----- ----------- ----------
4 21.55% 1.51% 14.75% $ 11,475.23 $ 170.35
--- ----- ---- ----- ----------- ----------
5 27.63% 1.51% 18.76% $ 11,875.71 $ 176.30
--- ----- ---- ----- ----------- ----------
6 34.01% 1.51% 22.90% $ 12,290.18 $ 182.45
--- ----- ---- ----- ----------- ----------
7 40.71% 1.51% 27.19% $ 12,719.10 $ 188.82
--- ----- ---- ----- ----------- ----------
8 47.75% 1.51% 31.63% $ 13,163.00 $ 195.41
--- ----- ---- ----- ----------- ----------
9 55.13% 1.51% 36.22% $ 13,622.39 $ 202.23
--- ----- ---- ----- ----------- ----------
10 62.89% 1.51% 40.98% $ 14,097.81 $ 209.29
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,798.11
--- ----------
122
Appendix
DWS WORLD DIVIDEND FUND - CLASS A
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
5.75% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.28% -2.24% $ 9,775.61 $ 697.88
--- ----- ---- ------ ----------- ----------
2 10.25% 1.28% 1.39% $ 10,139.26 $ 127.46
--- ----- ---- ------ ----------- ----------
3 15.76% 1.28% 5.16% $ 10,516.44 $ 132.20
--- ----- ---- ------ ----------- ----------
4 21.55% 1.28% 9.08% $ 10,907.65 $ 137.11
--- ----- ---- ------ ----------- ----------
5 27.63% 1.28% 13.13% $ 11,313.42 $ 142.21
--- ----- ---- ------ ----------- ----------
6 34.01% 1.28% 17.34% $ 11,734.28 $ 147.51
--- ----- ---- ------ ----------- ----------
7 40.71% 1.28% 21.71% $ 12,170.79 $ 152.99
--- ----- ---- ------ ----------- ----------
8 47.75% 1.28% 26.24% $ 12,623.55 $ 158.68
--- ----- ---- ------ ----------- ----------
9 55.13% 1.28% 30.93% $ 13,093.14 $ 164.59
--- ----- ---- ------ ----------- ----------
10 62.89% 1.28% 35.80% $ 13,580.21 $ 170.71
--- ----- ---- ------ ----------- ----------
TOTAL $ 2,031.34
--- ----------
DWS WORLD DIVIDEND FUND - CLASS B
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.10% 2.90% $ 10,290.00 $ 213.05
--- ----- ---- ----- ----------- ----------
2 10.25% 2.57% 5.40% $ 10,540.05 $ 267.67
--- ----- ---- ----- ----------- ----------
3 15.76% 2.57% 7.96% $ 10,796.17 $ 274.17
--- ----- ---- ----- ----------- ----------
4 21.55% 2.57% 10.59% $ 11,058.52 $ 280.83
--- ----- ---- ----- ----------- ----------
5 27.63% 2.57% 13.27% $ 11,327.24 $ 287.66
--- ----- ---- ----- ----------- ----------
6 34.01% 2.57% 16.02% $ 11,602.49 $ 294.65
--- ----- ---- ----- ----------- ----------
7 40.71% 1.28% 20.34% $ 12,034.10 $ 151.27
--- ----- ---- ----- ----------- ----------
8 47.75% 1.28% 24.82% $ 12,481.77 $ 156.90
--- ----- ---- ----- ----------- ----------
9 55.13% 1.28% 29.46% $ 12,946.09 $ 162.74
--- ----- ---- ----- ----------- ----------
10 62.89% 1.28% 34.28% $ 13,427.69 $ 168.79
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,257.73
--- ----------
123
Appendix
DWS WORLD DIVIDEND FUND - CLASS C
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 2.00% 3.00% $ 10,300.00 $ 203.00
--- ----- ---- ----- ----------- ----------
2 10.25% 2.00% 6.09% $ 10,609.00 $ 209.09
--- ----- ---- ----- ----------- ----------
3 15.76% 2.00% 9.27% $ 10,927.27 $ 215.36
--- ----- ---- ----- ----------- ----------
4 21.55% 2.00% 12.55% $ 11,255.09 $ 221.82
--- ----- ---- ----- ----------- ----------
5 27.63% 2.00% 15.93% $ 11,592.74 $ 228.48
--- ----- ---- ----- ----------- ----------
6 34.01% 2.00% 19.41% $ 11,940.52 $ 235.33
--- ----- ---- ----- ----------- ----------
7 40.71% 2.00% 22.99% $ 12,298.74 $ 242.39
--- ----- ---- ----- ----------- ----------
8 47.75% 2.00% 26.68% $ 12,667.70 $ 249.66
--- ----- ---- ----- ----------- ----------
9 55.13% 2.00% 30.48% $ 13,047.73 $ 257.15
--- ----- ---- ----- ----------- ----------
10 62.89% 2.00% 34.39% $ 13,439.16 $ 264.87
--- ----- ---- ----- ----------- ----------
TOTAL $ 2,327.15
--- ----------
DWS WORLD DIVIDEND FUND - INSTITUTIONAL CLASS
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 0.96% 4.04% $ 10,404.00 $ 97.94
--- ----- ---- ----- ----------- ----------
2 10.25% 0.96% 8.24% $ 10,824.32 $ 101.90
--- ----- ---- ----- ----------- ----------
3 15.76% 0.96% 12.62% $ 11,261.62 $ 106.01
--- ----- ---- ----- ----------- ----------
4 21.55% 0.96% 17.17% $ 11,716.59 $ 110.30
--- ----- ---- ----- ----------- ----------
5 27.63% 0.96% 21.90% $ 12,189.94 $ 114.75
--- ----- ---- ----- ----------- ----------
6 34.01% 0.96% 26.82% $ 12,682.42 $ 119.39
--- ----- ---- ----- ----------- ----------
7 40.71% 0.96% 31.95% $ 13,194.79 $ 124.21
--- ----- ---- ----- ----------- ----------
8 47.75% 0.96% 37.28% $ 13,727.86 $ 129.23
--- ----- ---- ----- ----------- ----------
9 55.13% 0.96% 42.82% $ 14,282.46 $ 134.45
--- ----- ---- ----- ----------- ----------
10 62.89% 0.96% 48.59% $ 14,859.47 $ 139.88
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,178.06
--- ----------
124
Appendix
DWS WORLD DIVIDEND FUND - CLASS S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
--------------- ------------------------- -----------------------------
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
------ --------------- --------- -------------- --------------- ------------
1 5.00% 1.10% 3.90% $ 10,390.00 $ 112.15
--- ----- ---- ----- ----------- ----------
2 10.25% 1.10% 7.95% $ 10,795.21 $ 116.52
--- ----- ---- ----- ----------- ----------
3 15.76% 1.10% 12.16% $ 11,216.22 $ 121.06
--- ----- ---- ----- ----------- ----------
4 21.55% 1.10% 16.54% $ 11,653.66 $ 125.78
--- ----- ---- ----- ----------- ----------
5 27.63% 1.10% 21.08% $ 12,108.15 $ 130.69
--- ----- ---- ----- ----------- ----------
6 34.01% 1.10% 25.80% $ 12,580.37 $ 135.79
--- ----- ---- ----- ----------- ----------
7 40.71% 1.10% 30.71% $ 13,071.00 $ 141.08
--- ----- ---- ----- ----------- ----------
8 47.75% 1.10% 35.81% $ 13,580.77 $ 146.58
--- ----- ---- ----- ----------- ----------
9 55.13% 1.10% 40.10% $ 14,110.42 $ 152.30
--- ----- ---- ----- ----------- ----------
10 62.89% 1.10% 46.61% $ 14,660.73 $ 158.24
--- ----- ---- ----- ----------- ----------
TOTAL $ 1,340.19
--- ----------
ADDITIONAL INDEX INFORMATION
DWS EMERGING MARKETS EQUITY FUND
MSCI EMERGING MARKET INDEX is an unmanaged, capitalization-weighted index of
companies in a universe of 21 emerging markets. The index is calculated using
closing local market prices and translates into US dollars using the London
close foreign exchange rates.
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
JP MORGAN EMBI GLOBAL DIVERSIFIED INDEX tracks total returns for U.S.-dollar
denominated debt instruments issued by emerging market sovereign entities,
including Brady bonds, loans and Eurobonds, and quasi-sovereign entities. The
Index limits exposure to any one country.
DWS ENHANCED GLOBAL BOND FUND
BARCLAYS GLOBAL AGGREGATE BOND INDEX is a broad-based global investment grade
fixed-income measure comprised of three component indices, the U.S. Aggregate
Index, the Pan-European Aggregate Index and the Asian-Pacific Aggregate Index.
DWS GLOBAL EQUITY FUND
MSCI ALL COUNTRY (AC) WORLD INDEX is a free float-adjusted market
capitalization weighted index that is designed to measure the equity market
performance of developed and emerging markets. The index consists of 44 country
indices comprising 23 developed and 21 emerging market country indices.
MSCI EUROPE, AUSTRALASIA, FAR EAST (EAFE( (Reg. TM))) INDEX is an unmanaged
index that tracks international stock performance in the 21 developed markets
of Europe, Australasia and the Far East. Returns reflect reinvestment of
dividends net of withholding taxes. The index is calculated using closing local
market prices and translates into US dollars using the London close foreign
exchange rates.
DWS GLOBAL SMALL CAP FUND
S&P DEVELOPED SMALLCAP INDEX comprises the stocks representing the lowest 15%
of float-adjusted market cap in each developed country. It is a subset of the
S&P Global BMI, a comprehensive, rules-based index measuring global stock
market performance.
DWS LATIN AMERICA EQUITY FUND
MSCI EM (EMERGING MARKETS) LATIN AMERICA INDEX is an unmanaged free
float-adjusted market capitalization index that is designed to measure equity
market performance in seven Latin American markets. The index is calculated
using closing market prices and translates into US dollars using the London
close foreign exchange rates.
DWS WORLD DIVIDEND FUND
MSCI WORLD HIGH DIVIDEND YIELD INDEX includes securities that offer a
meaningfully higher-than-average dividend yield relative to the MSCI World
Index and pass dividend sustainability and persistence screens. The index
offers broad market coverage, and is free-float market capitalization-weighted
to ensure that its performance can be replicated in institutional and retail
portfolios. The index is calculated using closing local market prices and
translates into US dollars using the London close foreign exchange rates.
125
Appendix
MSCI WORLD INDEX is an unmanaged index that tracks the performance of stocks in
select developed markets around the world, including the US.
126
Appendix
TO GET MORE INFORMATION
SHAREHOLDER REPORTS. Additional information about a fund's investments is
available in a fund's annual and semi-annual reports to shareholders. In the
annual report, you will find a discussion of the market conditions and
investment strategies that significantly affected fund performance during its
last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION (SAI). This tells you more about a fund's
features and policies, including additional risk information. The SAI is
incorporated by reference into this document (meaning that it's legally part of
this prospectus).
For a free copy of any of these documents or to request other information about
a fund, contact DWS Investments at the phone number or address listed below.
SAIs and shareholder reports are also available through the DWS Investments Web
site at dws-investments.com. These documents and other information about each
fund are available from the EDGAR Database on the SEC's Internet site at
sec.gov. If you like, you may obtain copies of this information, after paying a
duplicating fee, by e-mailing a request to publicinfo@sec.gov or by writing the
SEC at the address listed below.
You can also review and copy these documents and other information about each
fund, including each fund's SAI, 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 the SEC at (202) 551-8090.
In order to reduce the amount of mail you receive and to help reduce expenses,
we generally send a single copy of any shareholder report and prospectus to
each household. If you do not want the mailing of these documents to be
combined with those for other members of your household, please contact your
financial advisor or call the number provided.
CONTACT INFORMATION
DWS INVESTMENTS PO Box 219151
Kansas City, MO
64121-9151
dws-investments.com
Shareholders:
(800) 728-3337
Investment professionals:
(800) 621-5027
SEC Public Reference Section
Washington, D.C. 20549-1520
SEC.GOV
DISTRIBUTOR DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808
(800) 621-1148
SEC FILE NUMBER DWS International Fund, Inc.
DWS Emerging Markets Equity Fund
811-00642
DWS Global/International Fund, Inc.
DWS Enhanced Emerging Markets
Fixed Income Fund
811-04670
DWS Global/International Fund, Inc.
DWS Enhanced Global Bond Fund
811-04670
DWS International Fund, Inc.
DWS Global Equity Fund
811-00642
DWS Global/International Fund, Inc.
DWS Global Small Cap Fund
811-04670
DWS International Fund, Inc.
DWS Latin America Equity Fund
811-00642
DWS International Fund, Inc.
DWS World Dividend Fund
811-00642
Deutsche Asset
& Wealth Management [DB Logo]
(05/01/14) DGINTF2-1
Deutsche Asset
& Wealth Management
Statement of Additional Information
DWS INTERNATIONAL FUND, INC.
DWS Emerging Markets Equity Fund - May 1, 2014
CLASS/TICKER A SEKAX B SEKBX C SEKCX INST SEKIX S SEMGX
...............................................................................
DWS Global Equity Fund (formerly DWS Diversified International Equity Fund) - February 1, 2014, as revised May
1, 2014
CLASS/TICKER A DBISX B DBIBX C DBICX
R DBITX INST MGINX S DBIVX
...............................................................................
DWS Latin America Equity Fund - February 1, 2014, as revised May 1, 2014
CLASS/TICKER A SLANX B SLAOX C SLAPX S SLAFX
...............................................................................
DWS World Dividend Fund - February 1, 2014, as revised May 1, 2014
CLASS/TICKER A SERAX B SERBX C SERCX INST SERNX S SCGEX
DWS GLOBAL/INTERNATIONAL FUND, INC.
DWS Enhanced Emerging Markets Fixed Income Fund - February 1, 2014, as revised May 1, 2014
CLASS/TICKER A SZEAX B SZEBX C SZECX
INST SZEIX S SCEMX
...............................................................................
DWS Enhanced Global Bond Fund - February 1, 2014, as revised May 1, 2014
CLASS/TICKER A SZGAX B SZGBX C SZGCX S SSTGX
...............................................................................
DWS Global Small Cap Fund (formerly DWS Global Small Cap Growth Fund)- February 1, 2014, as revised May 1,
2014
CLASS/TICKER A KGDAX B KGDBX C KGDCX
INST KGDIX S SGSCX
This combined Statement of Additional Information ("SAI") is not a prospectus
and should be read in conjunction with the prospectus for each fund dated
February 1, 2014 (except for DWS Emerging Markets Equity Fund, which is dated
May 1, 2014), as supplemented, a copy of which may be obtained without charge
by calling (800) 728-3337; by visiting dws-investments.com (the Web site does
not form a part of this SAI); or from the firm from which this SAI was
obtained. This SAI is incorporated by reference into the prospectus.
Portions of the Annual Report to Shareholders of each fund are incorporated
herein by reference, and are hereby deemed to be part of this SAI. Reports to
Shareholders may also be obtained without charge by calling the number provided
in the preceding paragraph.
This SAI is divided into two Parts - Part I and Part II. Part I contains
information that is specific to each fund, while Part II contains information
that generally applies to each of the funds in the DWS funds.
Class B shares are closed to new investment.
[DB Logo]
STATEMENT OF ADDITIONAL INFORMATION (SAI) - PART I
PAGE
Part I................................................................................... I-1
Definitions............................................................................ I-1
Fund Organization...................................................................... I-1
Management of Each Fund................................................................ I-2
Sales Charges and Distribution Plan Payments........................................... I-3
Portfolio Transactions and Brokerage Commissions....................................... I-3
Investments............................................................................ I-3
Investment Restrictions................................................................ I-3
Taxes.................................................................................. I-6
Independent Registered Public Accounting Firm, Reports to Shareholders and Financial I-6
Statements
Additional Information................................................................. I-6
Part I: Appendix I-A - Board Member Share Ownership and Control........................ I-7
Part I: Appendix I-B - Board Committees and Meetings................................... I-21
Part I: Appendix I-C - Board Member Compensation....................................... I-25
Part I: Appendix I-D - Portfolio Management............................................ I-27
Part I: Appendix I-E - Service Provider Compensation................................... I-35
Part I: Appendix I-F - Sales Charges................................................... I-42
Part I: Appendix I-G - Distribution Plan Payments...................................... I-44
Part I: Appendix I-H - Portfolio Transactions and Brokerage Commissions................ I-45
Part I: Appendix I-I - Investment Practices and Techniques............................. I-48
Part I: Appendix I-J - Additional Information.......................................... I-52
Part II.................................................................................. II-1
Detailed Part II table of contents precedes page II-1
PART I
DEFINITIONS
"1934 Act" - the Securities Exchange Act of 1934, as amended
"1940 Act" - the Investment Company Act of 1940, as amended
"Code" - the Internal Revenue Code of 1986, as amended
"SEC" - the Securities and Exchange Commission
"DIMA" or "Advisor" or "Administrator" - Deutsche Investment Management
Americas Inc., 345 Park Avenue, New York, New York 10154
"Subadvisor"- For DWS Emerging Markets Equity Fund: Deutsche Alternative Asset
Management (Global) Limited, 1 Great Winchester Street, London, United Kingdom,
EC2N 2DB.
"DIDI" or "Distributor" - DWS Investments Distributors, Inc., 222 South
Riverside Plaza, Chicago, Illinois 60606
"DISC" or "Transfer Agent" - DWS Investments Service Company, 210 W. 10th
Street, Kansas City, Missouri 64105-1614
"DWS funds" - The US registered investment companies advised by DIMA
"Board Members" - Members of the Board of Directors of the Corporation
"Board" - Board of Directors of the Corporation
"Independent Board Members"- Board Members who are not interested persons (as
defined in the 1940 Act) of the fund or the investment advisor
"fund" or "series" - DWS Emerging Markets Equity Fund, DWS Enhanced Emerging
Markets Fixed Income Fund, DWS Enhanced Global Bond Fund, DWS Global Equity
Fund, DWS Global Small Cap Fund, DWS Latin America Equity Fund and/or DWS World
Dividend Fund as the context may require
"Custodian" - Brown Brothers Harriman & Company, 50 Post Office Square, Boston,
Massachusetts 02110
"Fund Legal Counsel" - Ropes & Gray LLP, Prudential Tower, 800 Boylston Street,
Boston, Massachusetts 02199
"Trustee/Director Legal Counsel" - Ropes & Gray LLP, Prudential Tower, 800
Boylston Street, Boston, Massachusetts 02199
"Corporation" - DWS International Fund, Inc. or DWS Global/International Fund,
Inc., as applicable (together, the "Corporations")
"NRSRO"- A nationally recognized statistical rating organization
"S&P" - Standards & Poor's Ratings Services, an NRSRO
"Moody's" - Moody's Investors Service, Inc., an NRSRO
"Fitch" - Fitch Ratings, an NRSRO
FUND ORGANIZATION
DWS Emerging Markets Equity Fund, DWS Global Equity Fund (formerly DWS
Diversified International Equity Fund), DWS Latin America Equity Fund and DWS
World Dividend Fund are series of DWS International Fund, Inc. DWS
International Fund, Inc. was organized as Scudder Fund of Canada Ltd. in Canada
in 1953 by the investment management firm of Scudder, Stevens & Clark, Inc. On
March 16, 1964, the name of this Corporation was changed to Scudder
International Investments Ltd. On July 31, 1975, the corporate domicile of this
Corporation was changed to the US through the transfer of its net assets to a
newly formed Maryland corporation, Scudder International Fund, Inc., in
exchange for shares of this Corporation which then were distributed to the
shareholders of the Corporation. On February 6, 2006, the name of this
Corporation was changed from Scudder International Fund, Inc. to DWS
International Fund, Inc., and Scudder Emerging Markets Fund, Scudder Greater
Europe Growth Fund and Scudder Latin America Fund were renamed DWS Emerging
Markets Equity Fund, DWS Europe Equity Fund (now DWS World Dividend Fund) and
DWS Latin America Fund, respectively.
On February 1, 2011, the predecessor of DWS Global Equity Fund (the
"Predecessor Fund") transferred all of its assets and liabilities from DWS
Advisor Funds, a Massachusetts business trust to DWS International Fund, Inc.
All historical financial information and other information contained in the
fund's prospectus and SAI for periods
I-1
prior to February 1, 2011 relating to the fund (or any class thereof) is that
of the Predecessor Fund (or corresponding class thereof).
DWS International Fund, Inc.'s charter authorizes the issuance of shares of
capital stock with a par value of $.01 each, which capital stock has been
divided into six series: DWS Global Equity Fund, DWS International Fund, DWS
Latin America Equity Fund, DWS Emerging Markets Equity Fund, and DWS
International Value Fund, DWS World Dividend Fund. Each fund may be further
divided into multiple share classes, which may bear different expenses.
DWS Enhanced Emerging Markets Fixed Income Fund, DWS Enhanced Global Bond Fund
and DWS Global Small Cap Fund (formerly DWS Global Small Cap Growth Fund) are
series of DWS Global/International Fund, Inc. This Corporation is a Maryland
corporation organized on May 15, 1986. On February 6, 2006, the name of this
Corporation was changed from Global/International Fund, Inc. to DWS
Global/International Fund, Inc. and Scudder Global Discovery, Scudder Emerging
Markets Fixed Income Fund and Scudder Global Bond Fund were renamed DWS Global
Opportunities Fund, DWS Emerging Markets Fixed Income Fund and DWS Global Bond
Fund. On April 23, 2010, DWS Global Opportunities Fund was renamed DWS Global
Small Cap Growth Fund. On December 1, 2010, DWS Europe Equity Fund was renamed
DWS World Dividend Fund. On April 15, 2011, DWS Emerging Markets Fixed Income
Fund was renamed DWS Enhanced Emerging Markets Fixed Income Fund and DWS Global
Bond Fund was renamed DWS Enhanced Global Bond Fund. On May 1, 2014, DWS Global
Small Cap Growth Fund was renamed DWS Global Small Cap Fund.
DWS Global/International Fund, Inc.'s charter authorizes the issuance of shares
of capital stock with a par value of $0.01 each, which capital stock has been
divided into five series: DWS Global Small Cap Fund, DWS Enhanced Global Bond
Fund, DWS Enhanced Emerging Markets Fixed Income Fund, DWS Global Thematic
Fund, and DWS RREEF Global Infrastructure Fund. Each fund may be further
divided into multiple share classes, which may bear different expenses.
Each Corporation is governed by Amended and Restated Articles of Incorporation
that were approved by shareholders in the second quarter of 2006, as may be
further amended from time to time (the "Articles of Incorporation"). Additional
information about each Corporation is set forth in PART II under "Fund
Organization."
While each fund, through the combined prospectus, offers only its own share
classes, it is possible that one fund might become liable for a misstatement in
the combined prospectus or SAI regarding another fund.
MANAGEMENT OF EACH FUND
BOARD MEMBERS AND OFFICERS' IDENTIFICATION AND BACKGROUND
The identification and background of the Board Members and officers are set
forth in PART II - APPENDIX II-A.
BOARD COMMITTEES AND COMPENSATION
Compensation paid to the Independent Board Members, for certain specified
periods is set forth in PART I - APPENDIX I-C. Information regarding the
committees of the Board, is set forth in PART I - APPENDIX I-B.
BOARD MEMBER SHARE OWNERSHIP AND CONTROL PERSONS
Information concerning the ownership of fund shares by Board Members and
officers, as a group, as well as the dollar range value of each Board Member's
share ownership in each fund and, on an aggregate basis, in all DWS funds
overseen, by investors who control the fund, if any, and by investors who own
5% or more of any class of fund shares, if any, is set forth in PART I -
APPENDIX I-A.
PORTFOLIO MANAGEMENT
Information regarding each fund's portfolio manager(s), including other
accounts managed, compensation, ownership of fund shares and possible conflicts
of interest, is set forth in PART I - APPENDIX I-D and PART II - APPENDIX II-B.
This section does not apply to money market funds.
SERVICE PROVIDER COMPENSATION
Compensation paid by each fund to its service providers for various services,
including investment management, administrative, transfer agency, and, for
certain funds, fund accounting services and subadvisory services, is set forth
in PART I - APPENDIX I-E. For information regarding payments made to DIDI, see
PART I - APPENDIX I-F. The service provider compensation and underwriting and
sales commission information is not applicable to new funds that have not
completed a fiscal reporting period. Fee rates for services of the
above-referenced service providers are included in PART II - APPENDIX II-C.
I-2
SALES CHARGES AND DISTRIBUTION PLAN PAYMENTS
SALES CHARGES
Sales charges paid in connection with the purchase and sale of fund shares for
the three most recent fiscal years are set forth in PART I - APPENDIX I-F. This
information is not applicable to funds/classes that do not impose sales
charges, or to new funds/classes that have not completed a fiscal reporting
period.
DISTRIBUTION PLAN PAYMENTS
Payments made by each fund for the most recent fiscal year under each fund's
Rule 12b-1 Plans are set forth in PART I - APPENDIX I-G. This information is
not applicable to funds/classes that do not incur expenses paid in connection
with Rule 12b-1 Plans, or to new funds/ classes that have not completed a
fiscal reporting period.
PORTFOLIO TRANSACTIONS AND BROKERAGE COMMISSIONS
PORTFOLIO TURNOVER
The portfolio turnover rates for the two most recent fiscal years are set forth
in PART I - APPENDIX I-H. This section does not apply to money market funds or
to new funds that have not completed a fiscal reporting period.
BROKERAGE COMMISSIONS
Total brokerage commissions paid by each fund for the three most recent fiscal
years are set forth in PART I - APPENDIX I-H. This section does not apply to
new funds that have not completed a fiscal reporting period.
Each fund's policy with respect to portfolio transactions and brokerage is set
forth under "Portfolio Transactions" in PART II of this SAI.
INVESTMENTS
GENERAL INVESTMENT PRACTICES AND TECHNIQUES
PART I - APPENDIX I-I includes a list of the investment practices and
techniques which each fund may employ in pursuing its investment objective.
PART II - APPENDIX II-G includes a description of these investment practices
and techniques as well as the associated risks.
INVESTMENT RESTRICTIONS
Unless otherwise stated, the policies below apply to each fund.
Except as otherwise indicated, each fund's investment objective and policies
are not fundamental and may be changed without a vote of shareholders. There
can be no assurance that each fund's investment objective will be met.
Any investment restrictions herein which involve a maximum percentage of
securities or assets shall not be considered to be violated unless an excess
over the percentage occurs immediately after, and is caused by, an acquisition
or encumbrance of securities or assets of, or borrowings by, a fund.
Each of DWS Emerging Markets Equity Fund, DWS Global Equity Fund, DWS Global
Small Cap Fund and DWS World Dividend Fund has elected to be classified as a
diversified series of an open-end management investment company. A diversified
fund may not, with respect to 75% of total assets, invest more than 5% of total
assets in the securities of a single issuer (other than cash and cash items, US
government securities or securities of other investment companies) or invest in
more than 10% of the outstanding voting securities of such issuer. The fund's
election to be classified as diversified under the 1940 Act may not be changed
without the vote of a majority of the outstanding voting securities (as defined
herein) of the fund.
Each of DWS Enhanced Emerging Markets Fixed Income Fund, DWS Enhanced Global
Bond Fund and DWS Latin America Equity Fund has elected to be classified as a
non-diversified series of an open-end management investment company. A
non-diversified fund may invest a greater proportion of its assets in the
obligations of a small number of issuers, and may be subject to greater risk
and substantial losses as a result of changes in the financial condition or the
market's assessment of the issuers.
Unless specified to the contrary, the following fundamental policies may not be
changed without the approval of a majority of the outstanding voting securities
of a fund which, under the 1940 Act and the rules thereunder and as used in
this SAI, means the lesser of (1) 67% or more of the voting securities present
at such meeting, if the holders of more than 50% of the outstanding voting
securities of a fund are present or represented by proxy, or (2) more than 50%
of the outstanding voting securities of a fund.
I-3
As a matter of fundamental policy, a fund may not do any of the following:
(1) borrow money, except as permitted under the 1940 Act, as interpreted or
modified by regulatory authority having jurisdiction, from time to time.
(2) issue senior securities, except as permitted under the 1940 Act, as
interpreted or modified by regulatory authority having jurisdiction,
from time to time.
(3) purchase or sell commodities, except as permitted by the 1940 Act, as
interpreted or modified by regulatory authority having jurisdiction,
from time to time.
(4) engage in the business of underwriting securities issued by others,
except to the extent that the fund may be deemed to be an underwriter in
connection with the disposition of portfolio securities.
(5) purchase or sell real estate, which term does not include securities of
companies which deal in real estate or mortgages or investments secured
by real estate or interests therein, except that the fund reserves
freedom of action to hold and to sell real estate acquired as a result
of the fund's ownership of securities.
(6) make loans except as permitted under the 1940 Act, as interpreted or
modified by regulatory authority having jurisdiction, from time to time.
(7) concentrate its investments in a particular industry, as that term is
used in the 1940 Act, as interpreted or modified by regulatory authority
having jurisdiction, from time to time.
For purposes of fundamental policy (7), with respect to DWS Emerging Markets
Equity Fund, DWS Global Small Cap Fund, DWS Enhanced Emerging Markets Fixed
Income Fund, and DWS Enhanced Global Bond Fund only, when determining the
percentage of the fund's total assets invested in securities of issuers having
their principal business activities in a particular industry, asset-backed
securities will be classified separately, based on the nature of the underlying
assets, according to the following categories: captive auto, diversified,
retail and consumer loans, captive equipment and business, business trade
receivables, nuclear fuel and capital and mortgage lending.
The following is intended to help investors better understand the meaning of a
fund's fundamental policies by briefly describing limitations, if any, imposed
by the 1940 Act. References to the 1940 Act below may encompass rules,
regulations or orders issued by the SEC and, to the extent deemed appropriate
by the fund, interpretations and guidance provided by the SEC staff. These
descriptions are intended as brief summaries of such limitations as of the date
of this SAI; they are not comprehensive and they are qualified in all cases by
reference to the 1940 Act (including any rules, regulations or orders issued by
the SEC and any relevant interpretations and guidance provided by the SEC
staff). These descriptions are subject to change based on evolving guidance by
the appropriate regulatory authority and are not part of a fund's fundamental
policies.
The 1940 Act generally permits a fund to borrow money in amounts of up to
33 1-3% of its total assets from banks for any purpose. The 1940 Act requires
that after any borrowing from a bank a fund shall maintain an asset coverage of
at least 300% for all of the fund's borrowings, and, in the event that such
asset coverage shall at any time fall below 300%, a fund must, within three
days thereafter (not including Sundays and holidays), reduce the amount of its
borrowings to an extent that the asset coverage of all of a fund's borrowings
shall be at least 300%. In addition, a fund may borrow up to 5% of its total
assets from banks or other lenders for temporary purposes (a loan is presumed
to be for temporary purposes if it is repaid within 60 days and is not extended
or renewed). For additional information, see "Borrowing" in PART II - APPENDIX
II-G.
Under the 1940 Act, a senior security does not include any promissory note or
evidence of indebtedness where such loan is for temporary purposes only and in
an amount not exceeding 5% of the value of the total assets of a fund at the
time the loan is made (a loan is presumed to be for temporary purposes if it is
repaid within 60 days and is not extended or renewed). The SEC and/or its staff
has indicated that certain investment practices may raise senior security
issues unless a fund takes appropriate steps to segregate assets against, or
cover, its obligations. A fund is permitted to engage in the investment
practices described in its prospectus and in this SAI.
For additional information regarding the fund's asset segregation practices,
see "Asset Segregation" in PART II - APPENDIX II-G.
I-4
At present, the 1940 Act does not set forth a maximum percentage of a fund's
assets that may be invested in commodities.
Under the 1940 Act, a fund generally may not lend portfolio securities
representing more than one-third of its total asset value (including the value
of collateral received for loans of portfolio securities).
OTHER INVESTMENT POLICIES. The Board has adopted certain additional
non-fundamental policies and restrictions which are observed in the conduct of
a fund's affairs. They differ from fundamental investment policies in that they
may be changed or amended by action of the Board without requiring prior notice
to, or approval of, the shareholders.
As a matter of non-fundamental policy:
(1) the fund may not purchase illiquid securities, including time deposits
and repurchase agreements maturing in more than seven days, if, as a
result, more than 15% of the fund's net assets would be invested in such
securities.
(2) the fund may not acquire securities of registered open-end investment
companies or registered unit investment trusts in reliance on Sections
12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act.
(3) the fund may not acquire securities of other investment companies,
except as permitted by the 1940 Act and the rules, regulations and any
applicable exemptive order issued thereunder.
(4) the fund may not purchase warrants if, as a result, such securities,
taken at the lower of cost or market value, would represent more than 5%
of the value of the fund's total assets (for this purpose, warrants
acquired in units or attached to securities will be deemed to have no
value).
(5) (for each fund except DWS Global Equity Fund) the Board has the
discretion to retain the current distribution arrangement for the fund
while investing in a master fund in a master-feeder structure (this
policy would permit the Board, without shareholder approval to convert
the fund to a master-feeder structure).
(6) (for DWS Enhanced Emerging Markets Fixed Income Fund only) the fund may
invest up to 20% of net assets, plus the amount of any borrowings for
investment purposes, in debt securities of issuers from the US or other
developed markets, including junk bonds.
(7) (for DWS Emerging Markets Equity Fund only) the fund does not intend to
invest more than 5% of its net assets directly in securities of local
Russian issuers.
(8) (for each fund except DWS Global Equity Fund, DWS Enhanced Emerging
Markets Fixed Income Fund and DWS Enhanced Global Bond Fund) the fund
may not purchase options, unless the aggregate premiums paid on all such
options held by the fund at any time do not exceed 20% of its total
assets; or sell put options, if, as a result, the aggregate value of the
obligations underlying such put options would exceed 50% of its total
assets.
(9) (for DWS Emerging Markets Equity Fund and DWS Global Small Cap Fund
only) the fund will not sell put options if, as a result, more than 50%
of the fund's total assets would be required to be segregated to cover
its potential obligations under such put options other than those with
respect to futures and options thereon.
(10) (for DWS Global Equity Fund only) the fund may not invest more than 25%
of its total assets in purchased protective put options.
(11) (for each fund except DWS Global Equity Fund) when purchasing
Asset-Backed Securities, the fund will not pay any additional or
separate fees for Credit Enhancement.
(12) (for each fund except DWS Global Equity Fund, DWS Enhanced Emerging
Markets Fixed Income Fund and DWS Enhanced Global Bond Fund) the fund
may engage in currency transactions primarily in order to hedge, or
manage the risk of the value of portfolio holdings denominated in
particular currencies against fluctuations in relative value.
(13) (for each fund except DWS Global Equity Fund, DWS Enhanced Emerging
Markets Fixed Income Fund and DWS Enhanced Global Bond Fund) the fund
generally will not enter into a transaction to hedge currency exposure
to an extent greater, after netting all transactions intended wholly or
partially to offset other transactions, than the aggregate market value
(at the time of entering into the transaction) of the
I-5
securities held in its portfolio that are denominated or generally
quoted in or currently convertible into such currency, other than with
respect to proxy hedging or cross hedging.
(14) (for each fund except DWS Global Equity Fund) the fund will not sell
interest rate caps or floors where it does not own securities or other
instruments providing the income stream the fund may be obligated to
pay.
(15) (for DWS Global Equity Fund only) under normal conditions, the fund will
have investment exposure to at least three countries and combined direct
and indirect exposure to foreign securities, foreign currencies and
other foreign investments (measured on a gross basis) equal to at least
40% of the fund's net assets.
(16) (for DWS Enhanced Global Bond Fund only) the fund will normally have
investment exposure to foreign securities, foreign currencies and other
foreign investments equal to at least 40% of the fund's net assets.
(17) (for DWS Global Small Cap Fund only) the fund will generally invest in
at least three different countries.
For purposes of non-fundamental policy (1), and for so long as it remains a
position of the SEC, fixed time deposits maturing in more than seven days that
cannot be traded on a secondary market and participation interests in loans
will be treated as illiquid. Restricted securities (including commercial paper
issued pursuant to Section 4(2) of the Securities Act of 1933) that the Board
has determined to be readily marketable will not be deemed to be illiquid for
purposes of non-fundamental policy (1).
For purposes of non-fundamental policy (15), an investment is considered to be
an investment in a foreign security or foreign investment if the issuer is
organized or located outside the U.S. or is doing a substantial amount of
business outside of the U.S. An issuer that derives at least 50% of its revenue
from business outside the U.S. or has at least 50% of its assets outside the
U.S. will be considered to be doing a substantial amount of business outside
the U.S.
TAXES
Important information concerning the tax consequences of an investment in each
fund is contained in PART II - APPENDIX II-H.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM, REPORTS TO SHAREHOLDERS AND
FINANCIAL STATEMENTS
The financial highlights of each fund included in its prospectus and financial
statements incorporated by reference into this SAI have been so included or
incorporated by reference in reliance on the report of PricewaterhouseCoopers
LLP, 125 High Street, Boston, MA 02110. PricewaterhouseCoopers LLP is an
independent registered public accounting firm. The report is given on the
authority of said firm as experts in auditing and accounting. The independent
registered public accounting firm audits the financial statements of each fund
and provides other audit, tax and related services. Shareholders will receive
annual audited financial statements and semi-annual unaudited financial
statements.
The financial statements, together with the report of the Independent
Registered Public Accounting Firm, Financial Highlights and notes to financial
statements in the Annual Report to the Shareholders of each fund, dated October
31, 2013 for DWS Global Equity Fund, DWS Emerging Markets Equity Fund, DWS
Latin America Equity Fund and DWS World Dividend Fund (SEC File No. 811-00642);
October 31, 2013 for DWS Global Small Cap Fund, DWS Enhanced Emerging Markets
Fixed Income Fund and DWS Enhanced Global Bond Fund (SEC File No. 811-04670),
are incorporated herein by reference and are hereby deemed to be a part of this
combined SAI.
ADDITIONAL INFORMATION
For information on CUSIP numbers and fund fiscal year end information, see PART
I - APPENDIX I-J.
I-6
PART I: APPENDIX I-A - BOARD MEMBER SHARE OWNERSHIP AND CONTROL
BOARD MEMBER SHARE OWNERSHIP IN EACH FUND
The following tables show the dollar range of equity securities beneficially
owned by each Board Member in each fund and in DWS funds as of December 31,
2013.
DOLLAR RANGE OF BENEFICIAL OWNERSHIP/(1)/
DWS
ENHANCED
EMERGING DWS
DWS MARKETS ENHANCED
EMERGING FIXED GLOBAL DWS
MARKETS INCOME BOND GLOBAL
BOARD MEMBER EQUITY FUND FUND FUND EQUITY FUND
INDEPENDENT BOARD MEMBER:
John W. Ballantine None None None None
Henry P. Becton, Jr. $10,001 - $50,000 None None None
Dawn-Marie Driscoll None $1 - $10,000 $1 - $10,000 None
Keith R. Fox $50,001 - $100,000 $10,001 - $50,000 None $10,001 - $50,000
Paul K. Freeman None None None None
Kenneth C. Froewiss $10,001 - $50,000 None $1 - $10,000 None
Richard J. Herring None None None None
William McClayton None None None None
Rebecca W. Rimel None None None None
William N. Searcy, Jr. None None None None
Jean Gleason Stromberg None None None None
Robert Wadsworth None None None None
DWS DWS DWS
GLOBAL SMALL LATIN AMERICA WORLD DIVIDEND
BOARD MEMBER CAP FUND EQUITY FUND FUND
INDEPENDENT BOARD MEMBER:
John W. Ballantine None None None
Henry P. Becton, Jr. None None None
Dawn-Marie Driscoll $1 - $10,000 None $1 - $10,000
Keith R. Fox None $10,001 - $50,000 $50,001 - $100,000
Paul K. Freeman None None None
Kenneth C. Froewiss None None None
Richard J. Herring None None $10,001 - $50,000
William McClayton None None None
Rebecca W. Rimel $10,001 - $50,000 $10,001 - $50,000 None
William N. Searcy, Jr. None None None
Jean Gleason Stromberg None None $10,001 - $50,000
Robert Wadsworth None None None
I-7
AGGREGATE DOLLAR RANGE OF BENEFICIAL OWNERSHIP/(1)/
FUNDS OVERSEEN BY
BOARD MEMBER IN THE
BOARD MEMBER DWS FUNDS
INDEPENDENT BOARD MEMBER:
John W. Ballantine Over $100,000
Henry P. Becton, Jr. Over $100,000
Dawn-Marie Driscoll Over $100,000
Keith R. Fox Over $100,000
Paul K. Freeman Over $100,000
Kenneth C. Froewiss Over $100,000
Richard J. Herring Over $100,000
William McClayton Over $100,000
Rebecca W. Rimel Over $100,000
William N. Searcy, Jr. Over $100,000
Jean Gleason Stromberg Over $100,000
Robert Wadsworth Over $100,000
(1) The dollar ranges are: None, $1 - $10,000, $10,001 - $50,000, $50,001 -
$100,000, over $100,000.
OWNERSHIP IN SECURITIES OF THE ADVISOR AND RELATED COMPANIES
As reported to each fund, the information in the table below reflects ownership
by the Independent Board Members and their immediate family members of certain
securities as of December 31, 2013. An immediate family member can be a spouse,
children residing in the same household, including step and adoptive children,
and any dependents. The securities represent ownership in the Advisor or
Distributor and any persons (other than a registered investment company)
directly or indirectly controlling, controlled by, or under common control with
the Advisor or Distributor (including Deutsche Bank AG).
OWNER AND VALUE OF PERCENT OF
INDEPENDENT RELATIONSHIP TO TITLE OF SECURITIES ON AN CLASS ON AN
BOARD MEMBER BOARD MEMBER COMPANY CLASS AGGREGATE BASIS AGGREGATE BASIS
John W. Ballantine None
Henry P. Becton, Jr. None
Dawn-Marie Driscoll None
Keith R. Fox None
Paul K. Freeman None
Kenneth C. Froewiss None
Richard J. Herring None
William McClayton None
Rebecca W. Rimel None
William N. Searcy, Jr. None
Jean Gleason Stromberg None
Robert H. Wadsworth None
As of April 2, 2014, all Board Members and officers owned, as a group, less
than 1% of the outstanding shares of a fund.
I-8
25% OR GREATER OWNERSHIP
Shareholders who beneficially own 25% or more of a fund's shares may have a
significant impact on any shareholder vote of the fund. The following table
identifies those investors who own 25% or more of a fund's shares as of April
2, 2014:
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
NAME AND ADDRESS OF INVESTOR SHARES PERCENTAGE
STATE STREET BANK & TRUST CO CUST 6,908,053.10 26.52%
FBO DWS ALT ASSET ALLOC PLUS FUND
BOSTON MA 02111-1750
5% OR GREATER OWNERSHIP OF SHARE CLASSES
The following table identifies those investors who own 5% or more of a fund
share class as of April 2, 2014. All holdings are of record, unless otherwise
indicated.
DWS EMERGING MARKETS EQUITY FUND
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
NATIONAL FINANCIAL SERVICES LLC 126,228.70 A 13.37%
FOR EXCLUSIVE BENE OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
GERTRUDE LEMPP KERBIS 64,901.36 A 6.87%
CHICAGO IL 60610-1310
FIRST CLEARING LLC 61,918.41 A 6.56%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
UBS WM USA 59,774.32 A 6.33%
XXX XXXXX XXXX
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
WEEHAWKEN NJ 07086-6761
PERSHING LLC 57,449.30 A 6.08%
JERSEY CITY NJ 07399-0001
PERSHING LLC 3,281.77 B 28.47%
JERSEY CITY NJ 07399-0001
LPL FINANCIAL 1,843.33 B 15.99%
A/C XXXX-XXXX
SAN DIEGO CA 92121-1968
DWS TRUST COMPANY CUST 1,106.59 B 9.60%
FOR THE IRA ROLLOVER OF
XXXXXXXXXXXX
STRONGSVILLE OH 44149-8719
DWS TRUST COMPANY 865.595 B 7.51%
CUST FOR THE IRA OF
XXXXXXXXXXXX
PORTLAND OR 97211-2337
I-9
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
VANGUARD BROKERAGE SERVICES 750 B 6.51%
A/C XXXX-XXXX
VALLEY FORGE PA 19482-1170
UBS WM USA 27,126.39 C 12.11%
XXX XXXXX XXXX
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
WEEHAWKEN NJ 07086-6761
FIRST CLEARING LLC 25,660.87 C 11.46%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
MORGAN STANLEY SMITH BARNEY 24,562.89 C 10.97%
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ 07311
LPL FINANCIAL 15,239.72 C 6.80%
A/C XXXX-XXXX
SAN DIEGO CA 92121-1968
STATE STREET BANK & TRUST CO 237,787.45 Institutional 41.86%
CUST FBO
DWS LIFECOMPASS 2020 FUND
BOSTON MA 02111-1712
STATE STREET BANK & TRUST CO 90,934.61 Institutional 16.01%
CUST FBO
DWS LIFECOMPASS 2030 FUND
BOSTON MA 02111-1712
STATE STREET BANK & TRUST CO 82,671.61 Institutional 14.55%
CUST FBO
DWS LIFECOMPASS 2015 FUND
BOSTON MA 02111-1712
STATE STREET BANK & TRUST CO 57,884.18 Institutional 10.19%
CUST FBO
DWS LIFECOMPASS 2040 FUND
BOSTON MA 02111-1712
STATE STREET BANK & TRUST CO 51,994.04 Institutional 9.15%
CUST FBO
DWS LIFECOMPASS RETIREMENT FUND
BOSTON MA 02111-1712
CHARLES SCHWAB & CO INC 265,309.18 S 7.07%
ATTN MUTUAL FUNDS DEPARTMENT
SAN FRANCISCO CA 94104-4151
NATIONAL FINANCIAL SERVICES LLC 224,720.26 S 5.99%
FOR EXCLUSIVE BENE OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
I-10
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
AMERICAN ENTERPRISE INVESTMENT SERV 129,425.99 A 14.58%
FBO #XXXXXXXXX
MINNEAPOLIS MN 55402-2405
FIRST CLEARING LLC 108,635.92 A 12.24%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
PERSHING LLC 80,908.95 A 9.12%
JERSEY CITY NJ 07399-0001
UBS WM USA 54,026.41 A 6.09%
XXX XXXXX XXXX
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
WEEHAWKEN NJ 07086-6761
HARTFORD SECURITIES DISTRIBUTION CO 45,183.01 A 5.09%
INC AS AGENT FOR RELIANCE TRUST CO
FBO AGENTS' PLAN CUSTOMERS
ATTN UIT OPERATIONS
HARTFORD CT 06104-2999
FIRST CLEARING LLC 2,478.55 B 20.00%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
AMERICAN ENTERPRISE INVESTMENT SVC 2,092.50 B 16.88%
FBO #XXXXXXXX
MINNEAPOLIS MN 55402-2405
NATIONAL FINANCIAL SERVICES LLC 1,604.63 B 12.95%
FOR EXCLUSIVE BENE OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
PERSHING LLC 1,397.63 B 11.28%
JERSEY CITY NJ 07399-0001
MLPF&S FOR THE SOLE BENEFIT OF 1,112.91 B 8.98%
ITS CUSTOMERS
ATTN FUND ADM 9HP71
JACKSONVILLE FL 32246-6484
PETER REGGI & 720.471 B 5.81%
CANDICE REGGI JTWROS
ELMHURST IL 60126-2267
UBS WM USA 74,384.68 C 18.22%
XXX XXXXX XXXX
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
WEEHAWKEN NJ 07086-6761
PERSHING LLC 63,205.47 C 15.48%
JERSEY CITY NJ 07399-0001
I-11
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
MORGAN STANLEY SMITH BARNEY 42,725.07 C 10.47%
HARBORSIDE FINANCIAL CENTER
JERSEY CITY NJ 07311
FIRST CLEARING LLC 35,688.50 C 8.74%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
RAYMOND JAMES 32,962.82 C 8.08%
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM XXXXXXXX
ATTN COURTNEY WALLER
ST PETERSBURG FL 33716-1100
MLPF&S FOR THE SOLE BENEFIT OF 31,082.27 C 7.61%
ITS CUSTOMERS
ATTN FUND ADMINISTRATION
SEC 9HP72
JACKSONVILLE FL 32246-6484
STATE STREET BANK & TRUST CO CUST 6,932,565.63 Institutional 45.91%
FBO DWS SELECT ALTERNATIVE ALLOC
BOSTON MA 02111-1750
STATE STREET BANK & TRUST CO CUST 6,081,978.40 Institutional 40.28%
FBO DWS ALT ASSET ALLOC PLUS FUND
BOSTON MA 02111-1750
STATE STREET BANK & TRUST CO CUST 1,223,841.55 Institutional 8.11%
FBO DWS ALT ASSET ALLOC VIP FUND
BOSTON MA 02111-1750
CHARLES SCHWAB & CO INC 836,393.32 S 9.86%
ATTN MUTUAL FUNDS DEPARTMENT
SAN FRANCISCO CA 94104-4151
DWS ENHANCED GLOBAL BOND FUND
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
PERSHING LLC 203,228.81 A 9.14%
JERSEY CITY NJ 07399-0001
FIRST CLEARING LLC 135,361.82 A 6.09%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
NATIONAL FINANCIAL SERVICES LLC 122,210.29 A 5.50%
FOR EXCLUSIVE BENE OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
AMERICAN ENTERPRISE INVESTMENT SVC 117,553.31 A 5.29%
FBO #XXXXXXXX
MINNEAPOLIS MN 55402-2405
I-12
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
MLPF&S FOR THE SOLE BENEFIT OF 16,987.73 B 38.72%
ITS CUSTOMERS
ATTN FUND ADMINISTRATION (97D75)
JACKSONVILLE FL 32246-6484
UBS WM USA 12,219.94 B 27.85%
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
WEEHAWKEN NJ 07086-6761
AMERICAN ENTERPRISE INVESTMENT SVC 3,457.07 B 7.88%
FBO #XXXXXXXX
MINNEAPOLIS MN 55402-2405
MLPF&S FOR THE SOLE BENEFIT OF 58,875.12 C 21.18%
ITS CUSTOMERS
ATTN FUND ADMINISTRATION (97D76)
JACKSONVILLE FL 32246-6484
NATIONAL FINANCIAL SERVICES LLC 51,734.95 C 18.61%
FOR EXCLUSIVE BENE OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
PERSHING LLC 20,404.84 C 7.34%
JERSEY CITY NJ 07399-0001
FIRST CLEARING LLC 20,082.33 C 7.22%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
RAYMOND JAMES 15,482.18 C 5.57%
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM XXXXXXXX
ATTN COURTNEY WALLER
ST PETERSBURG FL 33716-1100
UBS WM USA 15,391.14 C 5.54%
XXX XXXXX XXXX
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
WEEHAWKEN NJ 07086-6761
CHARLES SCHWAB & CO INC 542,014.93 S 6.64%
REINVEST ACCOUNT
ATTN MUTUAL FUND DEPT
SAN FRANCISCO CA 94104-4151
DWS GLOBAL EQUITY FUND
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
DWS TRUST COMPANY 136,204.21 A 5.43%
FBO IDAHO ELKS REHAB HOSP 403(B)
PLAN
ATTN ASSET RECON DEPT# 062383
SALEM NH 03079-1143
I-13
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
AMERICAN ENTERPRISE INVESTMENT SVC 3,685.53 B 16.71%
FBO #XXXXXXXX
MINNEAPOLIS MN 55402-2405
FIRST CLEARING LLC 2,699.94 B 12.24%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
MLPF&S FOR THE SOLE BENEFIT OF 2,695.36 B 12.22%
ITS CUSTOMERS
ATTN FUND ADM (XXXXX)
JACKSONVILLE FL 32246-6484
PERSHING LLC 1,601.96 B 7.26%
JERSEY CITY NJ 07399-0001
DWS TRUST COMPANY CUST 1,469.18 B 6.66%
FOR THE IRA ROLLOVER OF
XXXXXXXXXX
FORTVILLE IN 46040-9588
MORGAN STANLEY SMITH BARNEY 1,287.65 B 5.84%
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ 07311
DWS TRUST COMPANY CUST 1,213.38 B 5.50%
FOR THE CONVERSION ROTH IRA OF
XXXXXXXXXX
PORTLAND ME 04102-2503
FIRST CLEARING LLC 55,136.65 C 12.66%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
MLPF&S FOR THE SOLE BENEFIT OF 43,371.97 C 9.96%
ITS CUSTOMERS
ATTN FUND ADM (XXXXX)
JACKSONVILLE FL 32246-6484
LPL FINANCIAL 40,890.92 C 9.39%
A/C XXXXX-XXXX
SAN DIEGO CA 92121-1968
NATIONAL FINANCIAL SERVICES LLC 27,108.33 C 6.22%
FOR EXCLUSIVE BENE OF OUR
CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
STATE STREET BANK & TRUST CO CUST 412,609.70 Institutional 34.97%
FBO DWS LIFECOMPASS 2020 FUND
BOSTON MA 02111-1712
STATE STREET BANK & TRUST CO 170,973.15 Institutional 14.49%
CUST FBO
DWS LIFECOMPASS 2015 FUND
BOSTON MA 02111-1712
I-14
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
STATE STREET BANK & TRUST CO 159,539.82 Institutional 13.52%
CUST FBO
DWS LIFECOMPASS 2030 FUND
BOSTON MA 02111-1712
THE NO 1 JWS FAMILY PARTNERSHIP LTD 116,436.19 Institutional 9.87%
DALLAS TX 75243-4527
STATE STREET BANK & TRUST CO 88,581.21 Institutional 7.51%
CUST FBO
DWS LIFECOMPASS 2040 FUND
BOSTON MA 02111-1712
STATE STREET BANK & TRUST CO 79,534.76 Institutional 6.74%
CUST FBO
DWS LIFECOMPASS RETIREMENT FUND
BOSTON MA 02111-1712
NATIONAL FINANCIAL SERVICES LLC 63,634.73 Institutional 5.39%
FOR EXCLUSIVE BENE OF OUR
CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
STATE STREET BANK & TRUST CO CUST 49,797.15 R 28.37%
FBO ADP/MORGAN STANLEY DW
BOSTON MA 02206-5501
MLPF&S FOR THE SOLE BENEFIT OF 46,204.61 R 26.32%
ITS CUSTOMERS
ATTN FUND ADM (9H778)
JACKSONVILLE FL 32246-6484
STATE STREET CORP TRUSTEE 43,731.85 R 24.91%
FBO ADP ACCESS
BOSTON MA 02111-2901
HARTFORD LIFE INSURANCE 29,745.72 R 16.95%
COMPANY SEPARATE ACCOUNT
HARTFORD CT 06104-2999
DWS TRUST COMPANY 750,393.60 S 50.53%
FBO ATLANTIC AUTOMOTIVE CORP
401K PLAN
ATTN SHARE RECON DEPT #064089
SALEM NH 03079-1143
STATE STREET CORP TRUSTEE 104,509.55 S 7.04%
FBO ADP ACCESS
BOSTON MA 02111-2901
RELIANCE TRUST CO TTEE 83,968.18 S 5.65%
FBO ADP ACCESS LARGE MARKET 401K
ATLANTA GA 30328-5620
I-15
DWS GLOBAL SMALL CAP FUND
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
AMERICAN ENTERPRISE INVESTMENT SVC 220,711.76 A 7.63%
FBO #XXXXXXXX
MINNEAPOLIS MN 55402-2405
FIRST CLEARING LLC 181,057.88 A 6.26%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
PERSHING LLC 173,533.26 A 6.00%
JERSEY CITY NJ 07399-0001
NATIONAL FINANCIAL SERVICES LLC 168,499.63 A 5.83%
FOR EXCLUSIVE BENE OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
AMERICAN ENTERPRISE INVESTMENT SVC 2,703.59 B 5.06%
FBO #XXXXXXXX
MINNEAPOLIS MN 55402-2405
FIRST CLEARING LLC 59,654.61 C 11.72%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
PERSHING LLC 50,325.71 C 9.89%
JERSEY CITY NJ 07399-0001
MORGAN STANLEY SMITH BARNEY 46,394.00 C 9.11%
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ 07311
RAYMOND JAMES 40,255.56 C 7.91%
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM XXXXXXXX
ATTN COURTNEY WALLER
ST PETERSBURG FL 33716-1100
LPL FINANCIAL 38,175.70 C 7.50%
A/C XXXX-XXXX
SAN DIEGO CA 92121-1968
MLPF&S FOR THE SOLE BENEFIT OF 31,465.25 C 6.18%
ITS CUSTOMERS
ATTN FUND ADMINISTRATION 97U02
JACKSONVILLE FL 32246-6484
NATIONAL FINANCIAL SERVICES LLC 286,233.66 Institutional 30.41%
FOR EXCLUSIVE BENE OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
STATE STREET BANK & TRUST CO 149,195.26 Institutional 15.85%
CUST FBO
DWS LIFECOMPASS 2020 FUND
BOSTON MA 02111-1712
I-16
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
PERSHING LLC 89,431.88 Institutional 9.50%
JERSEY CITY NJ 07399-0001
NEW YORK TRUST COMPANY 86,927.18 Institutional 9.24%
BENEFIT SERVICES COMPANY INC
C/O NEW YORK LIFE
WESTWOOD MA 02090-2324
CHARLES SCHWAB & CO INC 73,780.83 Institutional 7.84%
SPECIAL CUSTODY ACCOUNT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMERS
ATTN MUTUAL FUNDS
SAN FRANCISCO CA 94104-4151
STATE STREET BANK & TRUST CO 61,823.32 Institutional 6.57%
CUST FBO
DWS LIFECOMPASS 2015 FUND
BOSTON MA 02111-1712
STATE STREET BANK & TRUST CO 57,688.41 Institutional 6.13%
CUST FBO
DWS LIFECOMPASS 2030 FUND
BOSTON MA 02111-1712
NATIONAL FINANCIAL SERVICES LLC 1,130,970.95 S 13.74%
FOR EXCLUSIVE BENE OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
FIRST CLEARING LLC 440,610.27 S 5.35%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
DWS LATIN AMERICA EQUITY FUND
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
NATIONWIDE TRUST COMPANY FSB 74,119.97 A 14.02%
C/O IPO PORTFOLIO ACCOUNTING
COLUMBUS OH 43218-2029
PERSHING LLC 62,871.84 A 11.90%
JERSEY CITY NJ 07399-0001
AMERICAN ENTERPRISE INVESTMENT SVC 30,862.07 A 5.84%
FBO #XXXXXXXX
MINNEAPOLIS MN 55402-2405
FIRST CLEARING LLC 30,640.20 A 5.80%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
PERSHING LLC 4,323.28 B 28.89%
JERSEY CITY NJ 07399-0001
I-17
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
FIRST CLEARING LLC 2,846.02 B 19.02%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
MORGAN STANLEY SMITH BARNEY 1,525.51 B 10.19%
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ 07311
EDWARD D JONES & CO 820.998 B 5.49%
FOR THE BENEFIT OF CUSTOMERS
ST LOUIS MO 63131-3729
MORGAN STANLEY SMITH BARNEY 21,781.79 C 15.97%
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ 07311
LPL FINANCIAL 17,702.56 C 12.98%
A/C XXXX-XXXX
SAN DIEGO CA 92121-1968
RAYMOND JAMES 14,025.12 C 10.28%
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM XXXXXXXX
ATTN COURTNEY WALLER
ST PETERSBURG FL 33716-1100
FIRST CLEARING LLC 13,533.20 C 9.92%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
UBS WM USA 10,466.81 C 7.67%
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
WEEHAWKEN NJ 07086-6761
PERSHING LLC 10,131.10 C 7.43%
JERSEY CITY NJ 07399-0001
NATIONAL FINANCIAL SERVICES LLC 8,672.15 C 6.36%
FOR EXCLUSIVE BENE OF OUR
CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
CHARLES SCHWAB & CO INC 1,033,180.42 S 7.34%
REINVEST ACCOUNT
SAN FRANCISCO CA 94104-4151
DWS WORLD DIVIDEND FUND
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
AMERICAN ENTERPRISE INVESTMENT SERV 1,079,333.03 A 28.26%
FBO #XXXXXXXXX
MINNEAPOLIS MN 55402-2405
I-18
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
RAYMOND JAMES 438,232.07 A 11.47%
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM XXXXXXXXX
ATTN COURTNEY WALLER
ST PETERSBURG FL 33716-1100
FIRST CLEARING LLC 284,699.43 A 7.45%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
UBS WM USA 267,512.25 A 7.00%
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
WEEHAWKEN NJ 07086-6761
PERSHING LLC 228,606.82 A 5.98%
JERSEY CITY NJ 07399-0001
NATIONAL FINANCIAL SERVICES LLC 197,973.23 A 5.18%
FOR EXCLUSIVE BENE OF OUR
CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
PERSHING LLC 410.494 B 15.62%
JERSEY CITY NJ 07399-0001
DWS TRUST COMPANY CUST 360.39 B 13.72%
FOR THE ROTH IRA OF
XXXXXXXXXXXXXXXXXX
MANHATTAN BEACH CA 90266-4138
DWS TRUST COMPANY CUST 206.745 B 7.87%
FOR THE ROTH IRA OF
XXXXXXXXXXXXXXXXXX
BLUFFTON IN 46714-9466
TERRENCE L KOVACS CUST 147.804 B 5.63%
FBO XXXXXXXXXXXXXXXXXXX
UNIF TRANS MIN ACT - OH
SEVEN HILLS OH 44131-5939
DWS TRUST COMPANY CUST 139.754 B 5.32%
FOR THE ROTH IRA OF
XXXXXXXXXXXXXXXXXXXX
SOUND BEACH NY 11789-1527
RAYMOND JAMES 192,184.20 C 15.41%
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM XXXXXXXX
ATTN COURTNEY WALLER
ST PETERSBURG FL 33716-1100
CHARLES SCHWAB & CO INC 170,036.35 C 13.63%
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
SAN FRANCISCO CA 94104-4151
I-19
NAME AND ADDRESS OF INVESTOR SHARES CLASS PERCENTAGE
MLPF&S FOR THE SOLE BENEFIT OF 160,601.82 C 12.88%
ITS CUSTOMERS
ATTN FUND ADMINISTRATION
SEC 9E7G6
JACKSONVILLE FL 32246-6484
FIRST CLEARING LLC 149,875.21 C 12.02%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
PERSHING LLC 138,025.35 C 11.07%
JERSEY CITY NJ 07399-0001
AMERICAN ENTERPRISE INVESTMENT SVC 95,176.69 C 7.63%
FBO #XXXXXXXX
MINNEAPOLIS MN 55402-2405
LPL FINANCIAL 83,962.19 C 6.73%
A/C XXXX-XXXX
SAN DIEGO CA 92121-1968
FIRST CLEARING LLC 235,651.42 Institutional 54.41%
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
ST LOUIS MO 63103-2523
STATE STREET BANK & TRUST CO CUST 53,995.37 Institutional 12.47%
FBO DWS LIFECOMPASS 2020 FUND
BOSTON MA 02111-1712
PERSHING LLC 49,586.20 Institutional 11.45%
JERSEY CITY NJ 07399-0001
DWS TRUST COMPANY 22,995.09 Institutional 5.31%
FBO THE CONFERENCE BOARD
403(B) PLAN
ATTN ASSET RECON DEPT# XXXXXX
SALEM NH 03079-1143
STATE STREET BANK & TRUST CO 22,369.92 Institutional 5.17%
CUST FBO
DWS LIFECOMPASS 2015 FUND
BOSTON MA 02111-1712
LPL FINANCIAL 848,208.23 S 11.79%
A/C XXXX-XXXX
SAN DIEGO CA 92121-1968
NATIONAL FINANCIAL SERVICES LLC 670,569.52 S 9.32%
FOR EXCLUSIVE BENE OF OUR
CUSTOMERS
ATTN MUTUAL FUNDS DEPT - 4TH FL
JERSEY CITY NJ 07310-2010
CHARLES SCHWAB & CO INC 542,971.35 S 7.55%
ATTN MUTUAL FUNDS DEPARTMENT
SAN FRANCISCO CA 94104-4151
I-20
PART I: APPENDIX I-B - BOARD COMMITTEES AND MEETINGS
INFORMATION CONCERNING COMMITTEES AND MEETINGS OF THE BOARD
The Board oversees the operation of the DWS funds and meets periodically to
oversee fund activities, and to review fund performance and contractual
arrangements with fund service providers. The Board met 8 times during the most
recently completed calendar year. Each Board Member attended at least 75% of
the meetings of the Board and meetings of the Board Committees on which such
Board Member served.
BOARD LEADERSHIP STRUCTURE
A fund's Board is responsible for the general oversight of a fund's affairs and
for assuring that the fund is managed in the best interests of its
shareholders. The Board regularly reviews a fund's investment performance as
well as the quality of other services provided to a fund and its shareholders
by DIMA and its affiliates, including administration and shareholder servicing.
At least annually, the Board reviews and evaluates the fees and operating
expenses paid by a fund for these services and negotiates changes that it deems
appropriate. In carrying out these responsibilities, the Board is assisted by a
fund's auditors, independent counsel and other experts as appropriate, selected
by and responsible to the Board.
Independent Board Members are not considered "interested persons" (as defined
in the 1940 Act) of the fund or its investment adviser. These Independent Board
Members must vote separately to approve all financial arrangements and other
agreements with a fund's investment adviser and other affiliated parties. The
role of the Independent Board Members has been characterized as that of a
"watchdog" charged with oversight to protect shareholders' interests against
overreaching and abuse by those who are in a position to control or influence a
fund. A fund's Independent Board Members meet regularly as a group in executive
session without representatives of the investment adviser present. An
Independent Board Member currently serves as chairman of the Board.
Taking into account the number, the diversity and the complexity of the funds
overseen by the Board Members and the aggregate amount of assets under
management in the DWS funds, the Board has determined that the efficient
conduct of its affairs makes it desirable to delegate responsibility for
certain specific matters to committees of the Board. These committees, which
are described in more detail below, review and evaluate matters specified in
their charters and/or enabling resolutions, and take actions on those matters
and/or make recommendations to the Board as appropriate. Each committee may
utilize the resources of a fund's counsel and auditors as well as other
experts. The committees meet as often as necessary, either in conjunction with
regular meetings of the Board or otherwise. The membership and chair of each
committee are appointed by the Board upon recommendation of the Nominating and
Governance Committee. The membership and chair of each committee consists
exclusively of Independent Board Members.
The Board has determined that this committee structure also allows the Board to
focus more effectively on the oversight of risk as part of its broader
oversight of the fund's affairs. While risk management is the primary
responsibility of a fund's investment adviser, the Board regularly receives
reports regarding investment risks and compliance risks. The Board's committee
structure allows separate committees to focus on different aspects of these
risks and their potential impact on some or all of the DWS funds and to discuss
with the fund's investment adviser and administrator how it monitors and
controls such risks.
I-21
BOARD COMMITTEES. The Board has established the following standing committees:
Audit Committee, Nominating and Governance Committee, Contract Committee,
Equity Oversight Committee, Fixed Income and Asset Allocation Oversight
Committee, Operations Committee, Valuation Sub-Committee and Dividend
Committee.
NUMBER OF
MEETINGS IN LAST
NAME OF COMMITTEE CALENDAR YEAR FUNCTIONS CURRENT MEMBERS
AUDIT COMMITTEE 7 Assists the Board in fulfilling its responsibility Paul K. Freeman (Chair),
for oversight of (1) the integrity of the financial William McClayton (Vice
statements, (2) the fund's accounting and Chair), John W. Ballantine,
financial reporting policies and procedures, (3) Henry P. Becton, Jr. and
the fund's compliance with legal and regulatory Richard J. Herring
requirements related to accounting and
financial reporting, (4) valuation of fund assets
and securities and (5) the qualifications,
independence and performance of the
independent registered public accounting firm
for the fund. Oversees the valuation of the
fund's securities and other assets and
determines, as needed, the fair value of fund
securities or other assets under certain
circumstances as described in the fund's
Valuation Procedures. It also approves and
recommends to the Board the appointment,
retention or termination of the independent
registered public accounting firm for the fund,
reviews the scope of audit and internal
controls, considers and reports to the Board on
matters relating to the fund's accounting and
financial reporting practices, and performs such
other tasks as the full Board deems necessary
or appropriate. The Audit Committee receives
annual representations from the independent
registered public accounting firm as to its
independence.
I-22
NUMBER OF
MEETINGS IN LAST
NAME OF COMMITTEE CALENDAR YEAR FUNCTIONS CURRENT MEMBERS
NOMINATING AND 6 Recommends individuals for membership on Rebecca W. Rimel (Chair),
GOVERNANCE the Board, nominates officers, Board and Henry P. Becton, Jr. (Vice
COMMITTEE committee chairs, vice chairs and committee Chair), John W. Ballantine
members, and oversees the operations of the and William McClayton
Board. The Nominating and Governance
Committee has not established specific,
minimum qualifications that must be met by an
individual to be considered by the Nominating
and Governance Committee for nomination as
a Board Member. The Nominating and
Governance Committee may take into account
a wide variety of factors in considering Board
Member candidates, including, but not limited
to: (i) availability and commitment of a
candidate to attend meetings and perform his
or her responsibilities to the Board, (ii) relevant
industry and related experience, (iii)
educational background, (iv) financial expertise,
(v) an assessment of the candidate's ability,
judgment and expertise, and (vi) the current
composition of the Board. The Committee
generally believes that the Board benefits from
diversity of background, experience and views
among its members, and considers this as a
factor in evaluating the composition of the
Board, but has not adopted any specific policy
in this regard. The Nominating and Governance
Committee reviews recommendations by
shareholders for candidates for Board positions
on the same basis as candidates
recommended by other sources. Shareholders
may recommend candidates for Board
positions by forwarding their correspondence
by US mail or courier service to Kenneth C.
Froewiss, Chairman, DWS Mutual Funds, P.O.
Box 78, Short Hills, NJ 07078.
CONTRACT 7 Reviews at least annually, (a) the fund's Keith R. Fox (Chair), Robert
COMMITTEE financial arrangements with DIMA and its H. Wadsworth (Vice Chair),
affiliates, and (b) the fund's expense ratios. Dawn-Marie Driscoll, Paul K.
Freeman, Richard J. Herring,
William N. Searcy, Jr. and
Jean Gleason Stromberg
EQUITY OVERSIGHT 6 Reviews the investment operations of those William McClayton (Chair),
COMMITTEE funds that primarily invest in equity securities Keith R. Fox (Vice Chair),
(except for those funds managed by an asset Henry P. Becton, Jr.,
allocation investment team). Rebecca W. Rimel, Jean
Gleason Stromberg and
Robert H. Wadsworth
FIXED INCOME AND 6 Reviews the investment operations of those John W. Ballantine (Chair),
ASSET ALLOCATION funds that primarily invest in fixed income William N. Searcy, Jr. (Vice
OVERSIGHT securities or pursue an asset allocation Chair), Dawn-Marie Driscoll,
COMMITTEE strategy. Paul K. Freeman and Richard
J. Herring
I-23
NUMBER OF
MEETINGS IN LAST
NAME OF COMMITTEE CALENDAR YEAR FUNCTIONS CURRENT MEMBERS
OPERATIONS 6 Reviews the administrative operations and Jean Gleason Stromberg
COMMITTEE general compliance matters of the fund. (Chair), Dawn-Marie Driscoll
Reviews administrative matters related to the (Vice Chair), Keith R. Fox,
operations of the fund, policies and procedures Rebecca W. Rimel, William
relating to portfolio transactions, custody N. Searcy, Jr. and Robert H.
arrangements, fidelity bond and insurance Wadsworth
arrangements and such other tasks as the full
Board deems necessary or appropriate.
VALUATION SUB- 0 Appointed by the Audit Committee, the John W. Ballantine, Richard
COMMITTEE Valuation Sub-Committee may make J. Herring, Henry P. Becton,
determinations of fair value required when the Jr. (Alternate), Paul K.
Audit Committee is not in session. Freeman (Alternate) and
William McClayton
(Alternate)
DIVIDEND 0 Authorizes dividends and other distributions for Kenneth C. Froewiss,
COMMITTEE those funds that are organized as series of a Robert H. Wadsworth, John
Maryland corporation. Committee meets on an W. Ballantine (Alternate),
as-needed basis. Henry P. Becton, Jr.
(Alternate), Dawn-Marie
Driscoll (Alternate), Keith R.
Fox (Alternate), Paul K.
Freeman (Alternate), Richard
J. Herring (Alternate),
William McClayton
(Alternate), Rebecca W.
Rimel (Alternate), William N.
Searcy, Jr. (Alternate) and
Jean Gleason Stromberg
(Alternate)
AD HOC COMMITTEES. In addition to the standing committees described above, from
time to time the Board may also form ad hoc committees to consider specific
issues.
I-24
PART I: APPENDIX I-C - BOARD MEMBER COMPENSATION
Each Independent Board Member receives compensation from each fund for his or
her services, which includes retainer fees and specified amounts for various
committee services and for the Board Chairperson. No additional compensation is
paid to any Independent Board Member for travel time to meetings, attendance at
directors' educational seminars or conferences, service on industry or
association committees, participation as speakers at directors' conferences or
service on special fund industry director task forces or subcommittees.
Independent Board Members do not receive any employee benefits such as pension
or retirement benefits or health insurance from a fund or any fund in the DWS
fund complex.
Board Members who are officers, directors, employees or stockholders of
Deutsche Asset & Wealth Management or its affiliates receive no direct
compensation from the fund, although they are compensated as employees of
Deutsche Asset & Wealth Management, or its affiliates, and as a result may be
deemed to participate in fees paid by a fund. The following tables show, for
each Independent Board Member, compensation from each fund during its most
recently completed fiscal year, and aggregate compensation from all of the
funds in the DWS fund complex during calendar year 2013.
AGGREGATE COMPENSATION FROM EACH FUND
DWS
DWS ENHANCED DWS DWS
EMERGING EMERGING ENHANCED GLOBAL
MARKETS EQUITY MARKETS FIXED GLOBAL EQUITY
BOARD MEMBER FUND INCOME FUND BOND FUND FUND
INDEPENDENT BOARD MEMBER:
John W. Ballantine $495 $ 882 $568 $354
Henry P. Becton, Jr. $445 $ 817 $515 $307
Dawn-Marie Driscoll $477 $ 842 $546 $344
Keith R. Fox $503 $ 901 $578 $359
Paul K. Freeman $490 $ 910 $569 $332
Kenneth C. Froewiss $586 $1,084 $680 $407
Richard J. Herring $477 $ 842 $546 $344
William McClayton $516 $ 925 $593 $366
Rebecca W. Rimel $458 $ 848 $531 $315
William N. Searcy, Jr. $445 $ 817 $515 $307
Jean Gleason Stromberg $495 $ 882 $568 $354
Robert Wadsworth $447 $ 820 $517 $308
I-25
DWS LATIN DWS
DWS GLOBAL SMALL AMERICA EQUITY WORLD DIVIDEND
BOARD MEMBER CAP FUND FUND FUND
INDEPENDENT BOARD MEMBER:
John W. Ballantine $1,298 $1,530 $ 987
Henry P. Becton, Jr. $1,219 $1,448 $ 919
Dawn-Marie Driscoll $1,235 $1,455 $ 942
Keith R. Fox $1,328 $1,564 $1,008
Paul K. Freeman $1,365 $1,630 $ 1.026
Kenneth C. Froewiss $1,618 $1,910 $1,218
Richard J. Herring $1,235 $1,455 $ 942
William McClayton $1,366 $1,613 $1,036
Rebecca W. Rimel $1,268 $1,504 $ 954
William N. Searcy, Jr. $1,219 $1,448 $ 919
Jean Gleason Stromberg $1,298 $1,530 $ 987
Robert Wadsworth $1,224 $1,455 $ 923
TOTAL COMPENSATION FROM DWS FUND COMPLEX
TOTAL COMPENSATION
FROM EACH FUND AND
BOARD MEMBER DWS FUND COMPLEX/(1)/
INDEPENDENT BOARD MEMBER:
John W. Ballantine $290,000
Henry P. Becton, Jr. $276,875
Dawn-Marie Driscoll $275,000
Keith R. Fox $296,875
Paul K. Freeman $312,500
Kenneth C. Froewiss/(2)/ $365,625
Richard J. Herring $275,000
William McClayton/(3)/ $306,250
Rebecca W. Rimel $288,125
William N. Searcy, Jr. $276,875
Jean Gleason Stromberg $290,000
Robert Wadsworth/(4)/ $320,625
(1) For each Independent Board Member, except for Mr. Wadsworth, total
compensation from the DWS fund complex represents compensation from 103
funds as of December 31, 2013.
(2) Includes $90,625 in annual retainer fees received by Mr. Froewiss as
Chairperson of DWS funds.
(3) Includes $15,000 in annual retainer fees received by Mr. McClayton as Vice
Chairperson of DWS funds.
(4) For Mr. Wadsworth, total compensation from the DWS fund complex represents
compensation from 106 funds as of December 31, 2013.
I-26
PART I: APPENDIX I-D - PORTFOLIO MANAGEMENT
FUND OWNERSHIP OF PORTFOLIO MANAGERS
The following table shows the dollar range of shares owned beneficially and of
record by the portfolio management team for each fund as well as in all DWS
funds as a group, including investments by their immediate family members
sharing the same household and amounts invested through retirement and deferred
compensation plans. This information is provided as of each fund's most recent
fiscal year end except for DWS Emerging Markets Equity Fund. For DWS Emerging
Markets Equity Fund, the information provided is as of March 31, 2014.
DWS EMERGING MARKETS EQUITY FUND
DOLLAR RANGE OF DOLLAR RANGE OF ALL DWS
NAME OF PORTFOLIO MANAGER FUND SHARES OWNED FUND SHARES OWNED
Sean Taylor $0 $0
Andrew Beal $0 $0
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
DOLLAR RANGE OF DOLLAR RANGE OF ALL DWS
NAME OF PORTFOLIO MANAGER FUND SHARES OWNED FUND SHARES OWNED
William Chepolis $10,001 - $50,000 $500,001 - $1,000,000
John D. Ryan $10,001 - $50,000 $100,001 - $500,000
Darwei Kung $10,001 - $50,000 $100,001 - $500,000
Steven Zhou $ 0 $10,001 - $50,000
Rahmila Nadi $1 - $10,000 $1 - $10,000
DWS ENHANCED GLOBAL BOND FUND
DOLLAR RANGE OF DOLLAR RANGE OF ALL DWS
NAME OF PORTFOLIO MANAGER FUND SHARES OWNED FUND SHARES OWNED
William Chepolis $10,001 - $50,000 $500,001 - $1,000,000
John D. Ryan $1 - $10,000 $100,001 - $500,000
Darwei Kung $10,001 - $50,000 $100,001 - $500,000
Gary Russell $1 - $10,000 $500,001 - $1,000,000
Rahmila Nadi $ 0 $1 - $10,000
DWS GLOBAL EQUITY FUND
DOLLAR RANGE OF DOLLAR RANGE OF ALL DWS
NAME OF PORTFOLIO MANAGER FUND SHARES OWNED FUND SHARES OWNED
Nils E. Ernst $0 $0
Martin Berberich $0 $0
Sebastian P. Werner $0 $0
DWS GLOBAL SMALL CAP FUND
DOLLAR RANGE OF DOLLAR RANGE OF ALL DWS
NAME OF PORTFOLIO MANAGER FUND SHARES OWNED FUND SHARES OWNED
Joseph Axtell $100,001 - $500,000 Over $1,000,000
I-27
DWS LATIN AMERICA EQUITY FUND
DOLLAR RANGE OF DOLLAR RANGE OF ALL DWS
NAME OF PORTFOLIO MANAGER FUND SHARES OWNED FUND SHARES OWNED
Luiz Ribeiro $0 $0
Thomas U. Petschnigg $0 $0
Danilo Pereira $0 $0
DWS WORLD DIVIDEND FUND
DOLLAR RANGE OF DOLLAR RANGE OF ALL DWS
NAME OF PORTFOLIO MANAGER FUND SHARES OWNED FUND SHARES OWNED
Thomas Schuessler $10,001 - $50,000 $10,001 - $50,000
Oliver Pfeil $1 - $10,000 $10,001 - $50,000
Fabian Degen $10,001 - $50,000 $10,001 - $50,000
Peter Steffen $ 0 $10,001 - $50,000
CONFLICTS OF INTEREST
In addition to managing the assets of each fund, a portfolio manager may have
responsibility for managing other client accounts. The tables below show, per
portfolio manager, the number and asset size of (1) SEC registered investment
companies (or series thereof) other than each fund, (2) pooled investment
vehicles that are not registered investment companies and (3) other accounts
(e.g., accounts managed for individuals or organizations) managed by a
portfolio manager. Total assets attributed to a portfolio manager in the tables
below include total assets of each account managed, although a portfolio
manager may only manage a portion of such account's assets. For a fund
subadvised by subadvisors unaffiliated with the Advisor, total assets of funds
managed may only include assets allocated to the portfolio manager and not the
total assets of a fund managed. The tables also show the number of performance
based fee accounts, as well as the total assets of the accounts for which the
advisory fee is based on the performance of the account. This information is
provided as of each fund's most recent fiscal year end except for DWS Emerging
Markets Equity Fund. For DWS Emerging Markets Equity Fund, the information
provided is as of March 31, 2014.
DWS EMERGING MARKETS EQUITY FUND
OTHER SEC REGISTERED INVESTMENT COMPANIES MANAGED:
NUMBER OF TOTAL ASSETS OF NUMBER OF INVESTMENT
REGISTERED REGISTERED COMPANY ACCOUNTS TOTAL ASSETS OF
NAME OF INVESTMENT INVESTMENT WITH PERFORMANCE- PERFORMANCE-BASED
PORTFOLIO MANAGER COMPANIES COMPANIES BASED FEE FEE ACCOUNTS
Sean Taylor 0 $0 0 $0
Andrew Beal 0 $0 0 $0
I-28
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
OTHER SEC REGISTERED INVESTMENT COMPANIES MANAGED:
NUMBER OF TOTAL ASSETS OF NUMBER OF INVESTMENT
REGISTERED REGISTERED COMPANY ACCOUNTS TOTAL ASSETS OF
NAME OF INVESTMENT INVESTMENT WITH PERFORMANCE- PERFORMANCE-BASED
PORTFOLIO MANAGER COMPANIES COMPANIES BASED FEE FEE ACCOUNTS
William Chepolis 15 $7,619,035,920 0 $0
John D. Ryan 11 $5,828,082,527 0 $0
Darwei Kung 16 $6,215,998,388 0 $0
Steven Zhou 1 $ 781,298,741 0 $0
Rahmila Nadi 2 $ 134,351,255 0 $0
DWS ENHANCED GLOBAL BOND FUND
OTHER SEC REGISTERED INVESTMENT COMPANIES MANAGED:
NUMBER OF TOTAL ASSETS OF NUMBER OF INVESTMENT
REGISTERED REGISTERED COMPANY ACCOUNTS TOTAL ASSETS OF
NAME OF INVESTMENT INVESTMENT WITH PERFORMANCE- PERFORMANCE-BASED
PORTFOLIO MANAGER COMPANIES COMPANIES BASED FEE FEE ACCOUNTS
William Chepolis 15 $7,815,995,990 0 $0
John D. Ryan 11 $6,025,042,597 0 $0
Darwei Kung 16 $6,412,958,458 0 $0
Gary Russell 16 $6,112,223,761 0 $0
Rahmila Nadi 2 $ 331,311,325 0 $0
DWS GLOBAL EQUITY FUND
OTHER SEC REGISTERED INVESTMENT COMPANIES MANAGED:
NUMBER OF TOTAL ASSETS OF NUMBER OF INVESTMENT
REGISTERED REGISTERED COMPANY ACCOUNTS TOTAL ASSETS OF
NAME OF INVESTMENT INVESTMENT WITH PERFORMANCE- PERFORMANCE-BASED
PORTFOLIO MANAGER COMPANIES COMPANIES B0ASED FEE FEE ACCOUNTS
Nils E. Ernst 3 $522,700,000 0 $0
Martin Berberich 3 $522,700,000 0 $0
Sebastian P. Werner 3 $522,700,000 0 $0
DWS GLOBAL SMALL CAP FUND
OTHER SEC REGISTERED INVESTMENT COMPANIES MANAGED:
NUMBER OF TOTAL ASSETS OF NUMBER OF INVESTMENT
REGISTERED REGISTERED COMPANY ACCOUNTS TOTAL ASSETS OF
NAME OF INVESTMENT INVESTMENT WITH PERFORMANCE- PERFORMANCE-BASED
PORTFOLIO MANAGER COMPANIES COMPANIES BASED FEE FEE ACCOUNTS
Joseph Axtell 7 $1,902,506,830 0 $0
I-29
DWS LATIN AMERICA EQUITY FUND
OTHER SEC REGISTERED INVESTMENT COMPANIES MANAGED:
NUMBER OF TOTAL ASSETS OF NUMBER OF INVESTMENT
REGISTERED REGISTERED COMPANY ACCOUNTS TOTAL ASSETS OF
NAME OF INVESTMENT INVESTMENT WITH PERFORMANCE- PERFORMANCE-BASED
PORTFOLIO MANAGER COMPANIES COMPANIES BASED FEE FEE ACCOUNTS
Luiz Ribeiro 0 $0 0 $0
Thomas U. Petschnigg 0 $0 0 $0
Danilo Pereira 0 $0 0 $0
DWS WORLD DIVIDEND FUND
OTHER SEC REGISTERED INVESTMENT COMPANIES MANAGED:
NUMBER OF TOTAL ASSETS OF NUMBER OF INVESTMENT
REGISTERED REGISTERED COMPANY ACCOUNTS TOTAL ASSETS OF
NAME OF INVESTMENT INVESTMENT WITH PERFORMANCE- PERFORMANCE-BASED
PORTFOLIO MANAGER COMPANIES COMPANIES BASED FEE FEE ACCOUNTS
Thomas Schuessler 3 $2,684,400,000 0 $0
Oliver Pfeil 2 $2,035,000,000 0 $0
Fabian Degen 1 $ 647,400,000 0 $0
Peter Steffen 2 $2,035,000,000 0 $0
DWS EMERGING MARKETS EQUITY FUND
OTHER POOLED INVESTMENT VEHICLES MANAGED:
NUMBER OF POOLED
NUMBER OF INVESTMENT VEHICLE TOTAL ASSETS OF
POOLED TOTAL ASSETS OF ACCOUNTS WITH PERFORMANCE-
NAME OF INVESTMENT POOLED INVESTMENT PERFORMANCE- BASED FEE
PORTFOLIO MANAGER VEHICLES VEHICLES BASED FEE ACCOUNTS
Sean Taylor 0 $0 0 $0
Andrew Beal 0 $0 0 $0
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
OTHER POOLED INVESTMENT VEHICLES MANAGED:
NUMBER OF POOLED
NUMBER OF INVESTMENT VEHICLE TOTAL ASSETS OF
POOLED TOTAL ASSETS OF ACCOUNTS WITH PERFORMANCE-
NAME OF INVESTMENT POOLED INVESTMENT PERFORMANCE- BASED FEE
PORTFOLIO MANAGER VEHICLES VEHICLES BASED FEE ACCOUNTS
William Chepolis 0 $0 0 $0
John D. Ryan 0 $0 0 $0
Darwei Kung 0 $0 0 $0
Steven Zhou 0 $0 0 $0
Rahmila Nadi 0 $0 0 $0
I-30
DWS ENHANCED GLOBAL BOND FUND
OTHER POOLED INVESTMENT VEHICLES MANAGED:
NUMBER OF POOLED
NUMBER OF INVESTMENT VEHICLE TOTAL ASSETS OF
POOLED TOTAL ASSETS OF ACCOUNTS WITH PERFORMANCE-
NAME OF INVESTMENT POOLED INVESTMENT PERFORMANCE- BASED FEE
PORTFOLIO MANAGER VEHICLES VEHICLES BASED FEE ACCOUNTS
William Chepolis 0 $0 0 $0
John D. Ryan 0 $0 0 $0
Darwei Kung 0 $0 0 $0
Gary Russell 0 $0 0 $0
Rahmila Nadi 0 $0 0 $0
DWS GLOBAL EQUITY FUND
OTHER POOLED INVESTMENT VEHICLES MANAGED:
NUMBER OF POOLED
NUMBER OF INVESTMENT VEHICLE TOTAL ASSETS OF
POOLED TOTAL ASSETS OF ACCOUNTS WITH PERFORMANCE-
NAME OF INVESTMENT POOLED INVESTMENT PERFORMANCE- BASED FEE
PORTFOLIO MANAGER VEHICLES VEHICLES BASED FEE ACCOUNTS
Nils E. Ernst 6 $3,590,000,000 0 $0
Martin Berberich 7 $2,953,000,000 0 $0
Sebastian P. Werner 8 $1,827,400,000 0 $0
DWS GLOBAL SMALL CAP FUND
OTHER POOLED INVESTMENT VEHICLES MANAGED:
NUMBER OF POOLED
NUMBER OF INVESTMENT VEHICLE TOTAL ASSETS OF
POOLED TOTAL ASSETS OF ACCOUNTS WITH PERFORMANCE-
NAME OF INVESTMENT POOLED INVESTMENT PERFORMANCE- BASED FEE
PORTFOLIO MANAGER VEHICLES VEHICLES BASED FEE ACCOUNTS
Joseph Axtell 0 $0 0 $0
DWS LATIN AMERICA EQUITY FUND
OTHER POOLED INVESTMENT VEHICLES MANAGED:
NUMBER OF POOLED
NUMBER OF INVESTMENT VEHICLE TOTAL ASSETS OF
POOLED TOTAL ASSETS OF ACCOUNTS WITH PERFORMANCE-
NAME OF INVESTMENT POOLED INVESTMENT PERFORMANCE- BASED FEE
PORTFOLIO MANAGER VEHICLES VEHICLES BASED FEE ACCOUNTS
Luiz Ribeiro 3 $236,200,000 3 $236,200,000
Thomas U. Petschnigg 3 $236,200,000 3 $236,200,000
Danilo Pereira 0 $ 0 0 $ 0
I-31
DWS WORLD DIVIDEND FUND
OTHER POOLED INVESTMENT VEHICLES MANAGED:
NUMBER OF POOLED
NUMBER OF INVESTMENT VEHICLE TOTAL ASSETS OF
POOLED TOTAL ASSETS OF ACCOUNTS WITH PERFORMANCE-
NAME OF INVESTMENT POOLED INVESTMENT PERFORMANCE- BASED FEE
PORTFOLIO MANAGER VEHICLES VEHICLES BASED FEE ACCOUNTS
Thomas Schuessler 4 $18,412,000,000 0 $0
Oliver Pfeil 2 $14,297,500,000 0 $0
Fabian Degen 0 $ 0 0 $0
Peter Steffen 1 $ 655,300,000 0 $0
DWS EMERGING MARKETS EQUITY FUND
OTHER ACCOUNTS MANAGED:
NUMBER OF OTHER TOTAL ASSETS OF
TOTAL ASSETS ACCOUNTS WITH PERFORMANCE-
NAME OF NUMBER OF OF OTHER PERFORMANCE- BASED FEE
PORTFOLIO MANAGER OTHER ACCOUNTS ACCOUNTS BASED FEE ACCOUNTS
Sean Taylor 0 $0 0 $0
Andrew Beal 0 $0 0 $0
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
OTHER ACCOUNTS MANAGED:
NUMBER OF OTHER TOTAL ASSETS OF
TOTAL ASSETS ACCOUNTS WITH PERFORMANCE-
NAME OF NUMBER OF OF OTHER PERFORMANCE- BASED FEE
PORTFOLIO MANAGER OTHER ACCOUNTS ACCOUNTS BASED FEE ACCOUNTS
William Chepolis 0 $0 0 $0
John D. Ryan 0 $0 0 $0
Darwei Kung 0 $0 0 $0
Steven Zhou 0 $0 0 $0
Rahmila Nadi 0 $0 0 $0
I-32
DWS ENHANCED GLOBAL BOND FUND
OTHER ACCOUNTS MANAGED:
NUMBER OF OTHER TOTAL ASSETS OF
TOTAL ASSETS ACCOUNTS WITH PERFORMANCE-
NAME OF NUMBER OF OF OTHER PERFORMANCE- BASED FEE
PORTFOLIO MANAGER OTHER ACCOUNTS ACCOUNTS BASED FEE ACCOUNTS
William Chepolis 0 $ 0 0 $0
John D. Ryan 0 $ 0 0 $0
Darwei Kung 0 $ 0 0 $0
Gary Russell 3 $674,465,318 0 $0
Rahmila Nadi 0 $ 0 0 $0
DWS GLOBAL EQUITY FUND
OTHER ACCOUNTS MANAGED:
NUMBER OF OTHER TOTAL ASSETS OF
TOTAL ASSETS ACCOUNTS WITH PERFORMANCE-
NAME OF NUMBER OF OF OTHER PERFORMANCE- BASED FEE
PORTFOLIO MANAGER OTHER ACCOUNTS ACCOUNTS BASED FEE ACCOUNTS
Nils E. Ernst 0 $0 0 $0
Martin Berberich 0 $0 0 $0
Sebastian P. Werner 0 $0 0 $0
DWS GLOBAL SMALL CAP FUND
OTHER ACCOUNTS MANAGED:
NUMBER OF OTHER TOTAL ASSETS OF
TOTAL ASSETS ACCOUNTS WITH PERFORMANCE-
NAME OF NUMBER OF OF OTHER PERFORMANCE- BASED FEE
PORTFOLIO MANAGER OTHER ACCOUNTS ACCOUNTS BASED FEE ACCOUNTS
Joseph Axtell 1 $118,006,392 0 $0
DWS LATIN AMERICA EQUITY FUND
OTHER ACCOUNTS MANAGED:
NUMBER OF OTHER TOTAL ASSETS OF
TOTAL ASSETS ACCOUNTS WITH PERFORMANCE-
NAME OF NUMBER OF OF OTHER PERFORMANCE- BASED FEE
PORTFOLIO MANAGER OTHER ACCOUNTS ACCOUNTS BASED FEE ACCOUNTS
Luiz Ribeiro 0 $0 0 $0
Thomas U. Petschnigg 0 $0 0 $0
Danilo Pereira 0 $0 0 $0
I-33
DWS WORLD DIVIDEND FUND
OTHER ACCOUNTS MANAGED:
NUMBER OF OTHER TOTAL ASSETS OF
TOTAL ASSETS ACCOUNTS WITH PERFORMANCE-
NAME OF NUMBER OF OF OTHER PERFORMANCE- BASED FEE
PORTFOLIO MANAGER OTHER ACCOUNTS ACCOUNTS BASED FEE ACCOUNTS
Thomas Schuessler 0 $0 0 $0
Oliver Pfeil 0 $0 0 $0
Fabian Degen 0 $0 0 $0
Peter Steffen 0 $0 0 $0
In addition to the accounts above, an investment professional may manage
accounts in a personal capacity that may include holdings that are similar to,
or the same as, those of each fund. The Advisor or Subadvisor, as applicable,
has in place a Code of Ethics that is designed to address conflicts of interest
and that, among other things, imposes restrictions on the ability of portfolio
managers and other "access persons" to invest in securities that may be
recommended or traded in each fund and other client accounts.
I-34
PART I: APPENDIX I-E - SERVICE PROVIDER COMPENSATION
DWS EMERGING MARKETS EQUITY FUND
GROSS AMOUNT AMOUNT WAIVED GROSS AMOUNT PAID TO AMOUNT WAIVED BY
PAID TO DIMA BY DIMA FOR DIMA FOR GENERAL DIMA FOR GENERAL
FOR ADVISORY ADVISORY ADMINISTRATIVE ADMINISTRATIVE
FISCAL YEAR ENDED SERVICES SERVICES SERVICES SERVICES
2013 $1,133,147 $0 $111,640 $0
2012 $1,788,358 $0 $176,193 $0
2011 $2,585,812 $0 $254,524 $0
GROSS AMOUNT PAID TO AMOUNT WAIVED BY
DISC FOR TRANSFER DISC FOR TRANSFER
FISCAL YEAR ENDED AGENCY SERVICES AGENCY SERVICES
2013 $139,358 $138,683
2012 $160,742 $ 869
2011 $206,016 $ 0
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
GROSS AMOUNT AMOUNT WAIVED GROSS AMOUNT PAID TO AMOUNT WAIVED BY
PAID TO DIMA BY DIMA FOR DIMA FOR GENERAL DIMA FOR GENERAL
FOR ADVISORY ADVISORY ADMINISTRATIVE ADMINISTRATIVE
FISCAL YEAR ENDED SERVICES SERVICES SERVICES SERVICES
2013 $1,582,420 $ 0 $268,207 $0
2012 $1,421,123 $109,612 $240,869 $0
2011 $1,542,771 $ 0 $263,124 $0
GROSS AMOUNT PAID TO AMOUNT WAIVED BY
DISC FOR TRANSFER DISC FOR TRANSFER
FISCAL YEAR ENDED AGENCY SERVICES AGENCY SERVICES
2013 $111,214 $2,705
2012 $122,544 $ 5
2011 $145,388 $ 0
DWS ENHANCED GLOBAL BOND FUND
GROSS AMOUNT AMOUNT WAIVED GROSS AMOUNT PAID TO AMOUNT WAIVED BY
PAID TO DIMA BY DIMA FOR DIMA FOR GENERAL DIMA FOR GENERAL
FOR ADVISORY ADVISORY ADMINISTRATIVE ADMINISTRATIVE
FISCAL YEAR ENDED SERVICES SERVICES SERVICES SERVICES
2013 $574,558 $0 $140,136 $0
2012 $668,840 $0 $163,132 $0
2011 $723,359 $0 $177,034 $0
I-35
GROSS AMOUNT PAID TO AMOUNT WAIVED BY
DISC FOR TRANSFER DISC FOR TRANSFER
FISCAL YEAR ENDED AGENCY SERVICES AGENCY SERVICES
2013 $125,753 $125,753
2012 $144,783 $ 3,320
2011 $166,800 $ 0
DWS GLOBAL EQUITY FUND
GROSS AMOUNT AMOUNT WAIVED GROSS AMOUNT PAID TO AMOUNT WAIVED BY
PAID TO DIMA BY DIMA FOR DIMA FOR GENERAL DIMA FOR GENERAL
FOR ADVISORY ADVISORY ADMINISTRATIVE ADMINISTRATIVE
FISCAL YEAR ENDED SERVICES SERVICES SERVICES SERVICES
2013 $471,771 $20,371 $67,396 $0
2012 $526,117 $ 0 $75,160 $0
2011 $649,848 $ 0 $92,835 $0
GROSS AMOUNT PAID TO AMOUNT WAIVED BY
DISC FOR TRANSFER DISC FOR TRANSFER
FISCAL YEAR ENDED AGENCY SERVICES AGENCY SERVICES
2013 $ 86,392 $83,637
2012 $ 85,258 $36,195
2011 $114,965 $ 8,398
DWS GLOBAL SMALL CAP FUND
GROSS AMOUNT AMOUNT WAIVED GROSS AMOUNT PAID TO AMOUNT WAIVED BY
PAID TO DIMA BY DIMA FOR DIMA FOR GENERAL DIMA FOR GENERAL
FOR ADVISORY ADVISORY ADMINISTRATIVE ADMINISTRATIVE
FISCAL YEAR ENDED SERVICES SERVICES SERVICES SERVICES
2013 $3,985,725 $0 $435,620 $0
2012 $3,672,018 $0 $401,313 $0
2011 $4,372,806 $0 $476,375 $0
GROSS AMOUNT PAID TO AMOUNT WAIVED BY
DISC FOR TRANSFER DISC FOR TRANSFER
FISCAL YEAR ENDED AGENCY SERVICES AGENCY SERVICES
2013 $421,965 $ 57,506
2012 $422,232 $101,744
2011 $530,942 $ 0
DWS LATIN AMERICA EQUITY FUND
GROSS AMOUNT AMOUNT WAIVED GROSS AMOUNT PAID TO AMOUNT WAIVED BY
PAID TO DIMA BY DIMA FOR DIMA FOR GENERAL DIMA FOR GENERAL
FOR ADVISORY ADVISORY ADMINISTRATIVE ADMINISTRATIVE
FISCAL YEAR ENDED SERVICES SERVICES SERVICES SERVICES
2013 $5,761,868 $0 $503,462 $0
2012 $6,544,755 $0 $576,972 $0
2011 $8,026,090 $0 $716,310 $0
I-36
GROSS AMOUNT PAID TO AMOUNT WAIVED BY
DISC FOR TRANSFER DISC FOR TRANSFER
FISCAL YEAR ENDED AGENCY SERVICES AGENCY SERVICES
2013 $348,525 $348,525
2012 $397,227 $ 97,708
2011 $443,101 $ 901
DWS WORLD DIVIDEND FUND
GROSS AMOUNT AMOUNT WAIVED GROSS AMOUNT PAID TO AMOUNT WAIVED BY
PAID TO DIMA BY DIMA FOR DIMA FOR GENERAL DIMA FOR GENERAL
FOR ADVISORY ADVISORY ADMINISTRATIVE ADMINISTRATIVE
FISCAL YEAR ENDED SERVICES SERVICES SERVICES SERVICES
2013 $2,036,125 $0 $308,839 $0
2012 $1,920,770 $0 $290,673 $0
2011 $1,571,659 $0 $236,332 $0
GROSS AMOUNT PAID TO AMOUNT WAIVED BY
DISC FOR TRANSFER DISC FOR TRANSFER
FISCAL YEAR ENDED AGENCY SERVICES AGENCY SERVICES
2013 $279,984 $ 6,781
2012 $309,953 $11,110
2011 $330,012 $ 490
DWS EMERGING MARKETS EQUITY FUND
The following waivers were in effect during the most recent three fiscal years:
For the period from November 1, 2011 through September 30, 2012, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of Class B shares to the extent necessary to maintain the operating
expenses (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) at 2.61%.
For the period from November 1, 2012 through September 30, 2013, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at ratios no higher than 1.82%, 2.57%, 2.57%, 1.57% and 1.57%,
for Class A, Class B, Class C, Institutional Class and Class S, respectively.
The following waivers are currently in effect:
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.65%, 2.40%, 2.40%, 1.40% and 1.40%; and for the
period October 1, 2014 through April 30, 2015 at ratios no higher than 1.82%,
2.57%, 2.57%, 1.57% and 1.57% (in each instance, excluding extraordinary
expenses, taxes, brokerage and interest expenses) for Class A, Class B, Class
C, Institutional Class and Class S, respectively.
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
The following waivers were in effect during the most recent three fiscal years:
I-37
For the period from November 1, 2010 through September 30, 2011, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) of certain classes as follows: Class B: 2.04% and Class S: 1.04%.
For the period from November 1, 2011 through September 30, 2012, the Advisor
had contractually agreed to waive a portion of its management fee in the amount
of 0.05% of the fund's average daily net assets.
For the period from November 1, 2011 through September 30, 2012, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of Class B shares to the extent necessary to maintain the operating
expenses (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) at 2.01%.
For the period from November 1, 2012 through September 30, 2013, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at 1.23%, 1.98%, 1.98%, 0.98% and 0.98%, for Class A, Class B,
Class C, Class S and Institutional Class, respectively.
The following waivers are currently in effect:
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.20%, 1.95%, 1.95%, 0.95% and 0.95%; and for the
period October 1, 2014 through January 31, 2015 at ratios no higher than 1.27%,
2.02%, 2.02%, 1.02% and 1.02% (in each instance, excluding extraordinary
expenses, taxes, brokerage and interest expenses) for Class A, Class B, Class
C, Institutional Class and Class S, respectively.
DWS ENHANCED GLOBAL BOND FUND
The following waivers were in effect during the most recent three fiscal years:
For the period from November 1, 2010 through September 30, 2011, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of Class B shares to the extent necessary to maintain the operating
expenses (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) at 1.99%.
For the period from November 1, 2011 through September 30, 2012, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of Class B shares to the extent necessary to maintain the operating
expenses (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) at 1.89%.
For the period from November 1, 2012 through September 30, 2013, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at ratios no higher than 1.03%, 1.78%, 1.78% and 0.78%, for Class
A, Class B, Class C and Class S, respectively.
For the period from November 1, 2012 through September 30, 2013, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at ratios no higher than 1.02%, 1.77%, 1.77% and 0.77%, for Class
A, Class B, Class C and Class S, respectively.
The following waivers are currently in effect:
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.02%, 1.77%, 1.77% and 0.77%; and for the period
October 1, 2014 through January 31, 2015 at ratios no higher than 1.10%, 1.85%,
1.85% and 0.85% (in each instance, excluding extraordinary expenses, taxes,
brokerage and interest expenses) for Class A, Class B, Class C and Class S,
respectively.
I-38
DWS GLOBAL EQUITY FUND
The following waivers were in effect during the most recent three fiscal years:
For the period from November 1, 2010 through September 30, 2011, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of Class B shares to the extent necessary to maintain the operating
expenses (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) at 2.44%.
For the period from November 1, 2011 through September 30, 2012, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at 1.59%, 2.34%, 2.34%, 1.84% and 1.34%, respectively, for Class
A, Class B, Class C, Class R and Class S.
For the period from November 1, 2012 through September 30, 2013, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the fund's total
annual operating expenses at 1.49%, 2.24%, 2.24%, 1.74%, 1.24% and 1.34%; and
for the period October 1, 2013 through January 31, 2014 at ratios no higher
than 1.59%, 2.34%, 2.34%, 1.84%, 1.34% and 1.44% (in each instance, excluding
extraordinary expenses, taxes, brokerage, interest expenses, and acquired funds
fees and expenses) for Class A, Class B, Class C, Class R, Institutional Class
and Class S, respectively.
The following waivers are currently in effect:
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.46%, 2.21%, 2.21%, 1.71%, 1.21% and 1.31%; and
for the period October 1, 2014 through January 31, 2015 at ratios no higher
than 1.52%, 2.27%, 2.27%, 1.77%, 1.27% and 1.37% (in each instance, excluding
extraordinary expenses, taxes, brokerage, interest expenses, and acquired funds
fees and expenses) for Class A, Class B, Class C, Class R, Institutional Class
and Class S, respectively.
DWS GLOBAL SMALL CAP FUND
The following waivers were in effect during the most recent three fiscal years:
For the period from November 1, 2010 through September 30, 2011, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of Class B shares to the extent necessary to maintain the operating
expenses (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) at 2.42%.
For the period from November 1, 2011 through January 31, 2013, the Advisor had
contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at 1.51%, 2.26%, 2.26% and 1.26%, respectively, for Class A,
Class B, Class C and Class S.
For the period from November 1, 2012 through January 31, 2014, the Advisor had
contractually agreed to waive its fees and/or reimburse certain operating
expenses of Institutional Class shares to the extent necessary to maintain the
operating expenses (excluding certain expenses such as extraordinary expenses,
taxes, brokerage and interest) at 1.27%.
For the period from February 1, 2013 through January 31, 2014, the Advisor had
contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at ratios no higher than 1.52%, 2.27%, 2.27%, 1.27% and 1.27%,
for Class A, Class B, Class C, Institutional Class and Class S, respectively.
The following waivers are currently in effect:
I-39
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses (excluding extraordinary expenses, taxes, brokerage
and interest expenses) at ratios no higher than 1.55%, 2.30%, 2.30%, 1.30% and
1.30% for Class A, Class B, Class C, Institutional Class and Class S,
respectively.
DWS LATIN AMERICA EQUITY FUND
The following waivers were in effect during the most recent three fiscal years:
For the period November 1, 2011 through September 30, 2012, the Advisor had
contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at 1.71%, 2.46% and 2.46%, respectively, for Class A, Class B and
Class C.
In addition, effective October 1, 2012 through September 30, 2013, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at 1.60%, 2.35%, 2.35% and 1.35%, respectively, for Class A,
Class B, Class C and Class S.
For the period from October 1, 2013 through September 30, 2014, the Advisor had
contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
at 1.52%, 2.27%, 2.27% and 1.27%; and for the period from October 1, 2013
through January 31, 2014, at ratios no higher than 1.78%, 2.53%, 2.53% and
1.53% (in each instance, excluding extraordinary expenses, taxes, brokerage and
interest expenses) for Classes A, B, C and S, respectively.
The following waiver is currently in effect:
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.52%, 2.27%, 2.27% and 1.27%; and for the period
from October 1, 2014 through January 31, 2015, at ratios no higher than 1.72%,
2.47%, 2.47% and 1.47% (in each instance, excluding extraordinary expenses,
taxes, brokerage and interest expenses) for Classes A, B, C and S,
respectively.
DWS WORLD DIVIDEND FUND
The following waivers were in effect during the most recent three fiscal years:
For the period from October 1, 2010 through September 30, 2011, the Advisor had
contractually agreed to waive its fees and/or reimburse certain operating
expenses of Class B shares to the extent necessary to maintain the operating
expenses (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) at 2.37%.
For the period from November 1, 2011 through September 30, 2012, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at 1.43%, 2.18%, 2.18% and 1.18%, respectively, for Class A,
Class B, Class C and Class S.
For the period from November 1, 2012 through September 30, 2013, the Advisor
had contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at ratios no higher than 1.35%, 2.10%, 2.10%, 1.10% and 1.10%,
for Class A, Class B, Class C, Institutional Class and Class S, respectively.
I-40
For the period from October 1, 2013 through September 30, 2014, the Advisor had
contractually agreed to waive its fees and/or reimburse certain operating
expenses of the fund to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage
and interest) at ratios no higher than 1.28%, 2.03%, 2.03%, 1.03% and 1.03%,
for Class A, Class B, Class C, Institutional Class and Class S, respectively.
The following waiver is currently in effect:
The Advisor has contractually agreed through September 30, 2014 to waive and/or
reimburse fund expenses to the extent necessary to maintain the fund's total
annual operating expenses at 1.28%, 2.03%, 2.03%, 1.03% and 1.03%; and for the
period October 1, 2014 through January 31, 2015 at ratios no higher than 1.35%,
2.10%, 2.10%, 1.10% and 1.10% (in each instance, excluding extraordinary
expenses, taxes, brokerage and interest expenses) for Class A, Class B, Class
C, Institutional Class and Class S, respectively.
I-41
PART I: APPENDIX I-F - SALES CHARGES
The following tables show the aggregate amount of underwriting commissions paid
to DIDI, the amount in commissions it paid out to brokers and the amount of
underwriting commissions retained by DIDI for the noted fiscal period(s).
CLASS A INITIAL SALES CHARGE:
AGGREGATE AGGREGATE
AGGREGATE AGGREGATE COMMISSIONS COMMISSIONS
FISCAL SALES COMMISSIONS PAID TO AFFILIATED RETAINED
YEAR COMMISSIONS PAID TO FIRMS FIRMS BY DIDI
DWS Emerging Markets Equity Fund 2013 $ 4,000 $ 2,000 $ 1,000 $ 1,000
2012 $ 6,000 $ 4,000 $ 1,000 $ 1,000
2011 $15,000 $ 9,000 $ 2,000 $ 4,000
DWS Enhanced Emerging Markets 2013 $ 4,000 $ 2,000 $ 0 $ 2,000
Fixed Income Fund
2012 $ 3,000 $ 2,000 $ 0 $ 1,000
2011 $36,000 $28,000 $ 3,000 $ 5,000
DWS Enhanced Global Bond Fund 2013 $ 4,000 $ 3,000 $ 0 $ 1,000
2012 $ 3,000 $ 1,000 $ 0 $ 2,000
2011 $16,000 $10,000 $ 0 $ 6,000
DWS Global Equity Fund 2013 $ 6,000 $ 3,000 $ 2,000 $ 1,000
2012 $ 5,000 $ 4,000 $ 0 $ 1,000
2011 $14,000 $12,000 $ 0 $ 2,000
DWS Global Small Cap Fund 2013 $25,000 $15,000 $22,000 $ 8,000
2012 $13,000 $10,000 $ 1,000 $ 2,000
2011 $36,000 $26,000 $ 3,000 $ 7,000
DWS Latin America Equity Fund 2013 $ 5,000 $ 2,000 $ 1,000 $ 2,000
2012 $ 7,000 $ 4,000 $ 2,000 $ 1,000
2011 $50,000 $32,000 $ 3,000 $15,000
DWS World Dividend Fund 2013 $35,000 $13,000 $ 0 $22,000
2012 $39,000 $ 9,000 $ 0 $30,000
2011 $ 4,000 $ 2,000 $ 1,000 $ 1,000
CDSC PAID TO DIDI ON:
FISCAL
YEAR CLASS A SHARES CLASS B SHARES CLASS C SHARES
DWS Emerging Markets Equity Fund 2013 $14,569 $ 664 $ 51
2012 $ 456 $1,813 $ 254
2011 $ 292 $5,068 $ 921
DWS Enhanced Emerging Markets Fixed Income 2013 $ 198 $1,094 $ 128
Fund
2012 $ 336 $1,860 $ 3,081
2011 $ 1,068 $2,811 $ 6,322
DWS Enhanced Global Bond Fund 2013 $ 112 $3,852 $ 79
2012 $ 1,233 $1,506 $ 1,278
2011 $ 568 $2,384 $13,668
I-42
FISCAL
YEAR CLASS A SHARES CLASS B SHARES CLASS C SHARES
DWS Global Equity Fund 2013 $ 17 $ 550 $ 43
2012 $ 17 $ 2,144 $ 36
2011 $ 5 $11,081 $ 624
DWS Global Small Cap Fund 2013 $ 97 $ 1,759 $ 448
2012 $ 613 $ 7,862 $ 730
2011 $ 16 $10,644 $1,708
DWS Latin America Equity Fund 2013 $ 0 $ 3,811 $ 341
2012 $ 293 $10,884 $ 471
2011 $ 139 $17,244 $1,989
DWS World Dividend Fund 2013 $ 194 $ 107 $1,749
2012 $ 617 $ 123 $7,817
2011 $2,104 $ 1,887 $2,820
I-43
PART I: APPENDIX I-G - DISTRIBUTION PLAN PAYMENTS
Expenses of each fund paid in connection with the Rule 12b-1 Plans for each
class of shares that has adopted a Rule 12b-1 Plan are set forth below for the
most recent fiscal year.
12B-1 COMPENSATION TO UNDERWRITER AND FIRMS:
12B-1 DISTRIBUTION 12B-1 SHAREHOLDER
FEES SERVICES FEES
DWS Emerging Markets Equity Fund Class A - $ 38,230
Class B $ 3,546 $ 1,106
Class C $ 29,607 $ 9,648
DWS Enhanced Emerging Markets Fixed Income Class A - $ 34,990
Fund
Class B $ 2,809 $ 930
Class C $ 56,020 $ 18,577
DWS Enhanced Global Bond Fund Class A - $ 63,958
Class B $ 5,472 $ 1,821
Class C $ 30,413 $ 10,120
DWS Global Equity Fund Class A - $ 55,454
Class B $ 2,383 $ 759
Class C $ 25,935 $ 8,574
Class R $ 4,034 $ 4,034
DWS Global Small Cap Fund Class A - $267,995
Class B $ 23,402 $ 7,771
Class C $107,065 $ 35,538
DWS Latin America Equity Fund Class A - $ 50,297
Class B $ 7,431 $ 2,425
Class C $ 35,161 $ 11,696
DWS World Dividend Fund Class A - $221,689
Class B $ 982 $ 317
Class C $186,446 $ 62,062
I-44
PART I: APPENDIX I-H - PORTFOLIO TRANSACTIONS AND BROKERAGE COMMISSIONS
PORTFOLIO TURNOVER RATES
FUND 2013 2012
DWS Emerging Markets Equity Fund 49% 82%
DWS Enhanced Emerging Markets Fixed Income Fund 205% 211%
DWS Enhanced Global Bond Fund 493% 395%
DWS Global Equity Fund 124% 21%
DWS Global Small Cap Fund 40% 33%
DWS Latin America Equity Fund 156% 163%
DWS World Dividend Fund 28% 19%
For DWS Global Equity Fund, portfolio turnover was higher in 2013 than in 2012
principally as a result of market volatility.
BROKERAGE COMMISSIONS
FISCAL BROKERAGE COMMISSIONS
YEAR PAID BY FUND
DWS Emerging Markets Equity Fund 2013 $ 97,429
2012 $ 218,888
2011 $ 592,388
DWS Enhanced Emerging Markets Fixed Income 2013 $ 0
Fund
2012 $ 0
2011 $ 778
DWS Enhanced Global Bond Fund 2013 $ 12,956
2012 $ 12,016
2011 $ 12,075
DWS Global Equity Fund 2013 $ 71,989
2012 $ 20,299
2011 $ 38,570
DWS Global Small Cap Fund 2013 $ 653,423
2012 $ 526,509
2011 $ 766,057
DWS Latin America Equity Fund 2013 $3,049,518
2012 $3,687,732
2011 $ 936,224
DWS World Dividend Fund 2013 $ 219,004
2012 $ 165,565
2011 $ 314,920
I-45
BROKERAGE COMMISSIONS PAID TO AFFILIATED BROKERS
AGGREGATE % OF THE
BROKERAGE AGGREGATE
COMMISSIONS DOLLAR
NAME OF PAID BY FUND % OF THE TOTAL VALUE OF ALL
FISCAL AFFILIATED TO AFFILIATED BROKERAGE PORTFOLIO
YEAR BROKER AFFILIATION BROKERS COMMISSIONS TRANSACTIONS
DWS Emerging Markets Equity Fund 2013 None - None - -
2012 None - None - -
2011 None - None - -
DWS Enhanced Emerging Markets 2013 None - None - -
Fixed Income Fund
2012 None - None - -
2011 None - None - -
DWS Enhanced Global Bond Fund 2013 None - None - -
2012 None - None - -
2011 None - None - -
DWS Global Equity Fund 2013 None - None - -
2012 None - None - -
2011 None - None - -
DWS Global Small Cap Fund 2013 None - None - -
2012 None - None - -
2011 None - None - -
DWS Latin America Equity Fund 2013 None - None - -
2012 None - None - -
2011 None - None - -
DWS World Dividend Fund 2013 None - None - -
2012 None - None - -
2011 None - None - -
Each fund is required to identify any securities of its "regular brokers or
dealers" (as such term is defined in the 1940 Act) that each fund held as of
the end of its most recent fiscal year.
Listed below are the regular broker dealers of each fund whose securities each
fund held as of the end of its most recent fiscal year and the dollar value of
such securities.
DWS EMERGING MARKETS EQUITY FUND
NAME OF REGULAR BROKER OR DEALER OR PARENT
(ISSUER) SECURITIES OF REGULAR BROKER DEALERS
Bradesco S.A CTVM $2,695,000
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
The fund did not hold any securities of its regular brokers or dealers.
I-46
DWS ENHANCED GLOBAL BOND FUND
NAME OF REGULAR BROKER OR DEALER OR PARENT
(ISSUER) SECURITIES OF REGULAR BROKER DEALERS
Morgan Stanley $815,000
Barclays Capital $609,000
Goldman Sachs & Co. $541,000
Bank of America Corp. $513,000
BNP Paribas Corp $436,000
DWS GLOBAL EQUITY FUND
NAME OF REGULAR BROKER OR DEALER OR PARENT
(ISSUER) SECURITIES OF REGULAR BROKER DEALERS
Chase Securities Inc. $1,495,000
DWS GLOBAL SMALL CAP FUND
The fund did not hold any securities of its regular brokers or dealers.
DWS LATIN AMERICA EQUITY FUND
The fund did not hold any securities of its regular brokers or dealers.
DWS WORLD DIVIDEND FUND
The fund did not hold any securities of its regular brokers or dealers.
TRANSACTIONS FOR RESEARCH SERVICES
For the most recent fiscal year, each fund allocated the following amount of
transactions, and related commissions, to broker-dealer firms that have been
deemed by the Advisor to provide research services. The provision of research
services was not necessarily a factor in the placement of business with such
firms.
COMMISSIONS PAID
AMOUNT OF TRANSACTIONS ON TRANSACTIONS
FUND WITH RESEARCH FIRMS WITH RESEARCH FIRMS
DWS Emerging Markets Equity Fund $ 0 $ 0
DWS Enhanced Emerging Markets Fixed Income $ 0 $ 0
Fund
DWS Enhanced Global Bond Fund $ 0 $ 0
DWS Global Equity Fund $ 0 $ 0
DWS Global Small Cap Fund// $454,790,095 $ 582,032/(1)/
DWS Latin America Equity Fund $ 0 $ 0
DWS World Dividend Fund $ 0 $ 0
/(1)/ Each fund has commission sharing arrangements (CSA) in place with some
broker-dealers pursuant to which a specified percentage of the total
commissions paid on qualifying trades are contributed to a CSA pool. The
Advisor may utilize the related commissions in the CSA pool to pay for
market data, third-party research and research from certain other
broker-dealers with whom the Advisor either does not trade or does not
trade at significant levels.
I-47
PART I: APPENDIX I-I - INVESTMENT PRACTICES AND TECHNIQUES
Below is a list of headings related to investment policies and techniques which
are further described in Appendix II-G.
DWS EMERGING MARKETS EQUITY FUND
Adjustable Rate Securities
Asset-Backed Securities
Asset Segregation
Borrowing
Brady Bonds
Cash Management Vehicles
Commercial Paper
Commodity Pool Operator Exclusion
Common Stock
Convertible Securities
Depositary Receipts
Derivatives
Dollar Roll Transactions
Eurodollar Obligations
Fixed Income Securities
Foreign Currencies
Foreign Investment
High Yield Fixed Income Securities - Junk Bonds
Illiquid Securities
Impact of Large Redemptions and Purchases of Fund Shares
Interfund Borrowing and Lending Program
Investment Companies and Other Pooled Investment Vehicles
Investment-Grade Bonds
IPO Risk
Lending of Portfolio Securities
Micro-Cap Companies
Mortgage-Backed Securities
Participation Interests
Preferred Stock
Privatized Enterprises
Real Estate Investment Trusts (REITs)
Repurchase Agreements
Reverse Repurchase Agreements
Short Sales Against the Box
Short-Term Securities
Small Companies
Sovereign Debt
Trust Preferred Securities
Warrants
When-Issued and Delayed-Delivery Securities
Zero Coupon Securities and Deferred Interest Bonds
DWS ENHANCED EMERGING MARKETS FIXED INCOME FUND
Adjustable Rate Securities
Asset-Backed SecuritiesAsset-Indexed Securities
Asset Segregation
Bank Loans
Borrowing
Brady Bonds
Cash Management Vehicles
Commercial Paper
Commodity Pool Operator Exclusion
Convertible Securities
Credit Enhancement
Currency Strategies
Derivatives
Dollar Roll Transactions
Eurodollar Obligations
Fixed Income Securities
Foreign Investment
Illiquid Securities
Impact of Large Redemptions and Purchases of Fund Shares
Indexed Securities
Interfund Borrowing and Lending Program
Inverse Floaters
Investment Companies and Other Pooled Investment Vehicles
Investment-Grade Bonds
Lending of Portfolio Securities
Mortgage-Backed Securities
Obligations of Banks and Other Financial Institutions
Privatized Enterprises
Repurchase Agreements
Reverse Repurchase Agreements
Securities with Put Rights
Short-Term Securities
Sovereign Debt
Trust Preferred Securities
When-Issued and Delayed-Delivery Securities
I-48
Zero Coupon Securities and Deferred Interest Bonds
DWS ENHANCED GLOBAL BOND FUND
Adjustable Rate Securities
Asset-Backed SecuritiesAsset-Indexed Securities
Asset Segregation
Bank Loans
Borrowing
Brady Bonds
Cash Management Vehicles
Commercial Paper
Commodity Pool Operator Exclusion
Convertible Securities
Credit Enhancement
Currency Strategies
Derivatives
Dollar Roll Transactions
Eurodollar Obligations
Fixed Income Securities
Foreign Investment
Illiquid Securities
Impact of Large Redemptions and Purchases of Fund Shares
Indexed Securities
Interfund Borrowing and Lending Program
Inverse Floaters
Investment Companies and Other Pooled Investment Vehicles
Investment-Grade Bonds
Lending of Portfolio Securities
Mortgage-Backed Securities
Obligations of Banks and Other Financial Institutions
Privatized Enterprises
Repurchase Agreements
Reverse Repurchase Agreements
Securities with Put Rights
Short-Term Securities
Sovereign Debt
Trust Preferred Securities
When-Issued and Delayed-Delivery Securities
Zero Coupon Securities and Deferred Interest Bonds
DWS GLOBAL EQUITY FUND
Adjustable Rate Securities
Asset-Backed Securities
Asset Segregation
Borrowing
Brady Bonds
Cash Management Vehicles
Commercial Paper
Commodity Pool Operator Exclusion
Common Stock
Convertible Securities
Custodial Receipts
Depositary Receipts
Derivatives
Direct Debt Instruments
Dollar Roll Transactions
Fixed Income Securities
Foreign Investment
High Yield Fixed Income Securities - Junk Bonds
Illiquid Securities
Impact of Large Redemptions and Purchases of Fund Shares
Interfund Borrowing and Lending Program
Inverse Floaters
Investment Companies and Other Pooled Investment Vehicles
Investment-Grade Bonds
Lending of Portfolio Securities
Micro-Cap Companies
Mortgage-Backed Securities
Obligations of Banks and Other Financial Institutions
Preferred Stock
Privatized Enterprises
Real Estate Investment Trusts (REITs)
Repurchase Agreements
Reverse Repurchase Agreements
Short Sales
Short Sales Against the Box
Short-Term Securities
Small Companies
Sovereign Debt
To Be Announced (TBA) Purchase Commitments
US Government Securities
Variable and Floating Rate Instruments
Warrants
When-Issued and Delayed-Delivery Securities
Yields and Ratings
I-49
Zero Coupon Securities and Deferred Interest Bonds
DWS GLOBAL SMALL CAP FUND
Adjustable Rate Securities
Asset-Backed Securities
Asset Segregation
Borrowing
Brady Bonds
Cash Management Vehicles
Commercial Paper
Commodity Pool Operator Exclusion
Common Stock
Convertible Securities
Depositary Receipts
Derivatives
Direct Debt Instruments
Dollar Roll Transactions
Eurodollar Obligations
Fixed Income Securities
Foreign Currencies
Foreign Investment
High Yield Fixed Income Securities - Junk Bonds
Illiquid Securities
Impact of Large Redemptions and Purchases of Fund Shares
Interfund Borrowing and Lending Program
Investment Companies and Other Pooled Investment Vehicles
Investment-Grade Bonds
IPO Risk
Lending of Portfolio Securities
Micro-Cap Companies
Mortgage-Backed Securities
Obligations of Banks and Other Financial Institutions
Participation Interests
Preferred Stock
Privatized Enterprises
Real Estate Investment Trusts (REITs)
Repurchase Agreements
Reverse Repurchase Agreements
Short Sales Against the Box
Short-Term Securities
Small Companies
Sovereign Debt
Trust Preferred Securities
US Government Securities
Warrants
When-Issued and Delayed-Delivery Securities
Zero Coupon Securities and Deferred Interest Bonds
DWS LATIN AMERICA EQUITY FUND
Adjustable Rate Securities
Asset-Backed Securities
Asset Segregation
Borrowing
Brady Bonds
Cash Management Vehicles
Commercial Paper
Commodity Pool Operator Exclusion
Common Stock
Convertible Securities
Depositary Receipts
Derivatives
Dollar Roll Transactions
Eurodollar Obligations
Fixed Income Securities
Foreign Currencies
Foreign Investment
High Yield Fixed Income Securities - Junk Bonds
Illiquid Securities
Impact of Large Redemptions and Purchases of Fund Shares
Interfund Borrowing and Lending Program
Investment Companies and Other Pooled Investment Vehicles
IPO Risk
Lending of Portfolio Securities
Micro-Cap Companies
Mortgage-Backed Securities
Participation Interests
Preferred Stock
Privatized Enterprises
Real Estate Investment Trusts (REITs)
Repurchase Agreements
Reverse Repurchase Agreements
Short-Term Securities
Small Companies
Sovereign Debt
Warrants
When-Issued and Delayed-Delivery Securities
I-50
Zero Coupon Securities and Deferred Interest Bonds
DWS WORLD DIVIDEND FUND
Adjustable Rate Securities
Asset-Backed Securities
Asset Segregation
Borrowing
Brady Bonds
Cash Management Vehicles
Commercial Paper
Commodity Pool Operator Exclusion
Common Stock
Convertible Securities
Depositary Receipts
Derivatives
Dollar Roll Transactions
Eurodollar Obligations
Fixed Income Securities
Foreign Currencies
Foreign Investment
High Yield Fixed Income Securities - Junk Bonds
Illiquid Securities
Impact of Large Redemptions and Purchases of Fund Shares
Interfund Borrowing and Lending Program
Investment Companies and Other Pooled Investment Vehicles
IPO Risk
Lending of Portfolio Securities
Micro-Cap Companies
Mortgage-Backed Securities
Participation Interests
Preferred Stock
Privatized Enterprises
Real Estate Investment Trusts (REITs)
Repurchase Agreements
Reverse Repurchase Agreements
Short-Term Securities
Small Companies
Sovereign Debt
Warrants
When-Issued and Delayed-Delivery Securities
Zero Coupon Securities and Deferred Interest Bonds
I-51
PART I: APPENDIX I-J - ADDITIONAL INFORMATION
FUND CLASS CUSIP NUMBER
DWS Emerging Markets Equity Fund Class A 23337R106
Fiscal Year End: 10/31 Class B 23337R205
Class C 23337R304
Class S 23337R502
Institutional Class 23337R619
DWS Enhanced Emerging Markets Fixed Income Class A 233379601
Fund
Fiscal Year End: 10/31 Class B 233379700
Class C 233379809
Class S 233379874
Institutional Class 233379742
DWS Enhanced Global Bond Fund Class A 233379866
Fiscal Year End: 10/31 Class B 233379858
Class C 233379841
Class S 233379825
DWS Global Equity Fund Class A 23337R593
Fiscal Year End: 10/31 Class B 23337R585
Class C 23337R577
Class R 23337R569
Class S 23337R551
Institutional Class 23337R544
DWS Global Small Cap Fund Class A 233379106
Fiscal Year End: 10/31 Class B 233379205
Class C 233379304
Class S 233379502
Institutional Class 233379676
DWS Latin America Equity Fund Class A 23337R775
Fiscal Year End: 10/31 Class B 23337R767
Class C 23337R759
Class S 23337R726
DWS World Dividend Fund Class A 23337R601
Fiscal Year End: 10/31 Class B 23337R700
Class C 23337R809
Class S 23337R874
Institutional Class 23337R866
I-52
STATEMENT OF ADDITIONAL INFORMATION (SAI) - PART II
PAGE
Part II................................................................................... II-1
Management of the Funds................................................................. II-1
Board Members.......................................................................... II-6
Fund Organization....................................................................... II-9
Purchase and Redemption of Shares....................................................... II-15
Purchases.............................................................................. II-16
Redemptions............................................................................ II-21
Distribution and Service Agreements and Plans........................................... II-30
Investments............................................................................. II-36
General Investment Practices and Techniques............................................ II-36
Portfolio Transactions.................................................................. II-36
Portfolio Holdings Information.......................................................... II-38
Net Asset Value......................................................................... II-39
Proxy Voting Guidelines................................................................. II-43
Miscellaneous........................................................................... II-44
Ratings Of Investments.................................................................. II-44
Part II: Appendix II-A - Board Members and Officers..................................... II-50
Part II: Appendix II-B - Portfolio Management Compensation.............................. II-55
Part II: Appendix II-C - Fee Rates of Service Providers................................. II-67
Part II: Appendix II-D - Financial Services Firms' Compensation......................... II-78
Part II: Appendix II-E - Firms With Which Deutsche Asset & Wealth Management Has II-82
Revenue Sharing
Arrangements..............................................................................
Part II: Appendix II-F - Class A Sales Charge Schedule.................................. II-85
Part II: Appendix II-G - Investment Practices and Techniques............................ II-88
Part II: Appendix II-H - Taxes.......................................................... II-143
Part II: Appendix II-I - Proxy Voting Policy and Guidelines............................. II-163
PART II
Part II of this SAI includes policies, investment techniques and information
that apply to the DWS funds. Unless otherwise noted, the use of the term "fund"
applies to all DWS funds.
MANAGEMENT OF THE FUNDS
INVESTMENT ADVISOR. Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), with headquarters at 345 Park Avenue, New York, NY 10154, is the
investment advisor for the fund. Under the oversight of the Board, the Advisor
makes investment decisions, buys and sells securities for the fund and conducts
research that leads to these purchase and sale decisions. The Advisor is an
indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a
major global banking institution that is engaged in a wide range of financial
services, including investment management, mutual funds, retail, private and
commercial banking, investment banking and insurance. The Advisor and its
predecessors have more than 80 years of experience managing mutual funds and
provide a full range of global investment advisory services to institutional
and retail clients.
Deutsche Asset & Wealth Management represents the asset management and wealth
management activities conducted by Deutsche Bank AG or any of its subsidiaries,
including the Advisor and DWS Investments Distributors, Inc. ("DIDI" or the
"Distributor"). Deutsche Asset & Wealth Management is a global organization
that offers a wide range of investing expertise and resources, including
hundreds of portfolio managers and analysts and an office network that reaches
the world's major investment centers. This well-resourced global investment
platform brings together a wide variety of experience and investment insight
across industries, regions, asset classes and investing styles.
The Advisor may utilize the resources of its global investment platform to
provide investment management services through branch offices or affiliates
located outside the US. In some cases, the Advisor may also utilize its branch
offices or affiliates located in the US or outside the US to perform certain
services, such as trade execution, trade matching and settlement, or various
administrative, back-office or other services. To the extent services are
performed outside the US, such activity may be subject to both US and foreign
regulation. It is possible that the jurisdiction in which the Advisor or its
affiliate performs such services may impose restrictions or limitations on
portfolio transactions that are different from, and in addition to, those that
apply in the US.
In some instances, the investments for a fund may be managed by the same
individuals who manage one or more other mutual funds advised by DIMA that have
similar names, objectives and investment styles. A fund may differ from these
other mutual funds in size, cash flow patterns, distribution arrangements,
expenses and tax matters. Accordingly, the holdings and performance of a fund
may be expected to vary from those of other mutual funds.
Certain investments may be appropriate for a fund and also for other clients
advised by DIMA. Investment decisions for a fund and other clients are made
with a view to achieving their respective investment objectives and after
consideration of such factors as their current holdings, availability of cash
for investment and the size of their investments generally. Frequently, a
particular security may be bought or sold for only one client or in different
amounts and at different times for more than one but less than all clients.
Likewise, a particular security may be bought for one or more clients when one
or more other clients are selling the security. In addition, purchases or sales
of the same security may be made for two or more clients on the same day. In
such event, such transactions will be allocated among the clients in a manner
believed by DIMA to be equitable to each. In some cases, this procedure could
have an adverse effect on the price or amount of the securities purchased or
sold by a fund. Purchase and sale orders for a fund may be combined with those
of other clients of DIMA in the interest of achieving the most favorable net
results to a fund.
DIMA, its parent or its subsidiaries, or affiliates may have deposit, loan and
other commercial banking relationships with the issuers of obligations which
may be purchased on behalf of a fund, including outstanding loans to such
issuers which could be repaid in whole or in part with the proceeds of
securities so purchased. Such affiliates deal, trade and invest for their own
accounts in such obligations and are among the leading dealers of various types
of such obligations. DIMA has informed a fund that, in making its investment
decisions, it does not obtain or use material inside information in its
possession or in the possession of any of its affiliates. In making investment
recommendations for a fund, DIMA will not inquire or take into consideration
whether an
II-1
issuer of securities proposed for purchase or sale by a fund is a customer of
DIMA, its parent or its subsidiaries or affiliates. Also, in dealing with its
customers, the Advisor, its parent, subsidiaries, and affiliates will not
inquire or take into consideration whether securities of such customers are
held by any fund managed by DIMA or any such affiliate.
Officers and employees of the Advisor from time to time may have transactions
with various banks, including a fund's custodian bank. It is the Advisor's
opinion that the terms and conditions of those transactions which have occurred
were not influenced by existing or potential custodial or other fund
relationships.
From time to time, DIMA, Deutsche Bank AG or their affiliates may at their sole
discretion invest their own assets in shares of a fund for such purposes it
deems appropriate, including investments designed to assist in the management
of a fund. Any such investment may be hedged by DIMA, Deutsche Bank AG or their
affiliates and, in that event, the return on such investment, net of the effect
of the hedge, would be expected to differ from the return of a fund. DIMA,
Deutsche Bank AG or their affiliates have no obligation to make any investment
in a fund and the amount of any such investment may or may not be significant
in comparison to the level of assets of a fund. In the event that such an
investment is made, except as otherwise required under the 1940 Act, DIMA,
Deutsche Bank AG or their affiliates would be permitted to redeem the
investment at such time that they deem appropriate.
TERMS OF THE INVESTMENT MANAGEMENT AGREEMENTS. Pursuant to the applicable
Investment Management Agreement, DIMA provides continuing investment management
of the assets of a fund. In addition to the investment management of the assets
of a fund, the Advisor determines the investments to be made for each fund,
including what portion of its assets remain uninvested in cash or cash
equivalents, and with whom the orders for investments are placed, consistent
with a fund's policies as stated in its prospectus and SAI, or as adopted by a
fund's Board. DIMA will also monitor, to the extent not monitored by a fund's
administrator or other agent, a fund's compliance with its investment and tax
guidelines and other compliance policies.
DIMA provides assistance to a fund's Board in valuing the securities and other
instruments held by a fund, to the extent reasonably required by valuation
policies and procedures that may be adopted by a fund.
Pursuant to the Investment Management Agreement, (unless otherwise provided in
the agreement or as determined by a fund's Board and to the extent permitted by
applicable law), DIMA pays the compensation and expenses of all the Board
members, officers, and executive employees of a fund, including a fund's share
of payroll taxes, who are affiliated persons of DIMA.
The Investment Management Agreement provides that a fund, except as noted
below, is generally responsible for expenses that include, but are not limited
to: fees payable to the Advisor; outside legal, accounting or auditing
expenses, including with respect to expenses related to negotiation,
acquisition or distribution of portfolio investments; maintenance of books and
records that are maintained by a fund, a fund's custodian, or other agents of a
fund; taxes and governmental fees; fees and expenses of a fund's accounting
agent, custodian, sub-custodians, depositories, transfer agents, dividend
reimbursing agents and registrars; payment for portfolio pricing or valuation
services to pricing agents, accountants, bankers and other specialists, if any;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities or other instruments of a fund; and litigation expenses and other
extraordinary expenses not incurred in the ordinary course of a fund's
business.
DIMA may enter into arrangements with affiliates and third party service
providers to perform various administrative, back-office and other services.
Such service providers may be located in the US or in non-US jurisdictions. The
costs and expenses of such arrangements are borne by DIMA, not by a fund.
For DWS Latin America Equity Fund, in rendering investment advisory services,
DIMA may use the resources of one or more foreign (non-U.S.) affiliates (the
DIMA Overseas Affiliates) that are not registered under the Investment Advisers
Act of 1940, as amended (the "Advisers Act"), to provide portfolio management
and research services to the fund. Under a Participating Affiliates Agreement,
a DIMA Overseas Affiliate may be considered a Participating Affiliate of DIMA
as that term is used in relief granted by the staff of the SEC allowing
US-registered advisers to use investment advisory and trading resources of
unregistered advisory affiliates subject to the regulatory supervision of the
registered adviser. Each Participating Affiliate and any of their respective
employees who provide services to the fund are considered under a Participating
Affiliate Agreement to be an "associated person" of DIMA as that term is
defined in the Advisers Act for purposes of DIMA's required supervision.
Deutsche Bank S.A. - Banco Alemao (DB Brazil)
II-2
is a Participating Affiliate of DIMA. DB Brazil has appointed DIMA to act as
its resident agent for service of process in the US.
For Money Market Portfolio, DWS Mid Cap Value Fund, DWS Small Cap Value Fund,
and DWS Equity Dividend Fund, the Investment Management Agreement also provides
that DIMA shall render administrative services (not otherwise provided by third
parties) necessary for a fund's operation as an open-end investment company
including, but not limited to, preparing reports and notices to the Board and
shareholders; supervising, negotiating contractual arrangements with, and
monitoring various third-party service providers to the Registrant (such as the
Registrant's transfer agent, pricing agents, custodian, accountants and
others); preparing and making filings with the SEC and other regulatory
agencies; assisting in the preparation and filing of the Registrant's federal,
state and local tax returns; preparing and filing the Registrant's federal
excise tax returns; assisting with investor and public relations matters;
monitoring the valuation of securities and the calculation of net asset value;
monitoring the registration of shares of the Registrant under applicable
federal and state securities laws; maintaining the Registrant's books and
records to the extent not otherwise maintained by a third party; assisting in
establishing accounting policies of the Registrant; assisting in the resolution
of accounting and legal issues; establishing and monitoring the Registrant's
operating budget; processing the payment of the Registrant's bills; assisting
the Registrant in, and otherwise arranging for, the payment of distributions
and dividends; and otherwise assisting the Registrant in the conduct of its
business, subject to the direction and control of the Board.
On behalf of Money Market Portfolio, DWS Mid Cap Value Fund, DWS Small Cap
Value Fund, and DWS Equity Dividend Fund, pursuant to a sub-administration
agreement between DIMA and State Street Bank & Trust Company (SSB), DIMA has
delegated certain administrative functions for each of these funds to SSB under
the Investment Management Agreement. The costs and expenses of such delegation
are borne by DIMA, not by a fund.
The Investment Management Agreement allows DIMA to delegate any of its duties
under the Investment Management Agreement to a sub-advisor, subject to a
majority vote of the Board, including a majority of the Board who are not
interested persons of a fund, and, if required by applicable law, subject to a
majority vote of a fund's shareholders.
The Investment Management Agreement provides that DIMA shall not be liable for
any error of judgment or mistake of law or for any loss suffered by a fund in
connection with matters to which the agreement relates, except a loss resulting
from willful malfeasance, bad faith or gross negligence on the part of DIMA in
the performance of its duties or from reckless disregard by DIMA of its
obligations and duties under the agreement. The Investment Management Agreement
may be terminated at any time, without payment of penalty, by either party or
by vote of a majority of the outstanding voting securities of a fund on 60
days' written notice.
The Investment Management Agreement continues in effect from year to year only
if its continuance is approved annually by the vote of a majority of the Board
Members who are not parties to such agreement or interested persons of any such
party, cast in person at a meeting called for the purpose of voting on such
approval, and either by a vote of the Board or of a majority of the outstanding
voting securities of a fund.
Under the Investment Management Agreement, a fund, except as otherwise noted,
pays DIMA a management fee calculated daily based on the prior day's net assets
and then aggregated for a particular month. For Money Market Portfolio, a
series of Cash Account Trust, DWS Mid Cap Value Fund, DWS Small Cap Value Fund,
and DWS Equity Dividend Fund, the management fee paid to DIMA is calculated and
payable monthly based on the average daily net assets for the particular month.
The annual management fee rate for each fund is set forth in PART II - APPENDIX
II-C.
Under a separate agreement between Deutsche Bank AG and the funds, Deutsche
Bank AG has granted a license to the funds to utilize the trademark "DWS."
SUB-ADVISORS (APPLICABLE ONLY TO THOSE FUNDS THAT HAVE SUB-ADVISORY
ARRANGEMENTS AS DESCRIBED IN PART I). Each Sub-Advisor serves as a sub-advisor
to a fund pursuant to the terms of a sub-advisor agreement between it and DIMA
(Sub-Advisory Agreement).
Atlantic Investment Management (Atlantic), 666 Fifth Avenue, New York, New
York, 10103, serves as a Sub-Advisor to DWS Strategic Long/Short Equity Fund.
Atlantic is a $1.9 billion fundamental, value-oriented equity investment firm
founded by Alexander J. Roepers in 1988. Atlantic manages concentrated
long-only and long/short equity portfolios and has been a Registered Investment
Adviser since 2006.
II-3
Chilton Investment Company, LLC (Chilton), located at 1290 East Main Street,
Floor 1, Stamford, Connecticut, 06902, serves as a Sub-Advisor to DWS Strategic
Long/Short Equity Fund. Chilton was founded in 1992 by Richard L. Chilton, Jr.
and is a Registered Investment Adviser and, as of January 1, 2014, had
approximately $3.1 billion in assets under management. The firm specializes in
equity long/short fundamental stock selection.
Deutsche Alternative Asset Management (Global) Limited (DAAM Global), formerly
known as RREEF Global Advisors Limited (RGAL), 1 Great Winchester Street,
London, United Kingdom, EC2N 2DB, serves as Sub-Advisor to DWS Emerging Markets
Equity Fund. DAAM Global is an investment advisor registered with the SEC. In
addition, DAAM Global is an affiliate of DIMA and an indirect, wholly owned
subsidiary of Deutsche Bank AG.
Dreman Value Management, L.L.C. (Dreman), 777 South Flagler Drive, Suite 800 -
Tower West, West Palm Beach, FL 33401, serves as a Sub-Advisor to DWS
International Value Fund. Dreman was formed in April 1977 and is an investment
advisor registered with the SEC. DVM is controlled by David Dreman.
Fischer Francis Trees & Watts, Inc. (FFTW), 200 Park Avenue, New York, New York
10166, serves as Sub-Advisor to DWS Core Fixed Income Fund. FFTW is directly
wholly-owned by Charter Atlantic Corporation (CAC), a New York corporation. CAC
is owned by BNP Paribas, which is a publicly owned banking corporation
organized under the laws of the Republic of France.
Henderson Alternative Investment Advisor Limited (Henderson), 201 Bishopsgate,
London, UK, EC2M 3 AE, serves as a Sub-Advisor of a portion of the assets of
DWS Diversified Market Neutral Fund. Henderson Group is a subsidiary of
Henderson Group PLC, an independent global asset management business founded in
1934.
Lazard Asset Management LLC (Lazard), located at 30 Rockefeller Plaza, 55th
Floor, New York, New York, 10112, serves as Sub-Advisor to DWS Strategic Equity
Long/Short Fund. Lazard was founded in 1970. As of December 31, 2013, Lazard
had approximately $167.5 billion in assets under management.
Northern Trust Investments, Inc. (NTI) 50 South LaSalle Street, Chicago, IL
60603, serves as a Sub-Advisor of all the assets of certain funds. NTI is an
Illinois state banking corporation and an investment adviser registered under
the Investment Advisers Act of 1940, as amended. It primarily manages assets
for institutional and individual separately managed accounts, investment
companies and bank common and collective funds. Northern Trust Corporation is
regulated by the Board of Governors of the Federal Reserve System as a
financial holding company under the U.S. Bank Holding Company Act of 1956, as
amended.
Omega Advisors, Inc. (Omega), located at 810 Seventh Avenue, 33rd Floor, New
York, New York, 10019, serves as a Sub-Advisor to DWS Strategic Long/Short
Equity Fund. Omega was founded in 1991 by Leon G. Cooperman and, as of February
28, 2014, had approximately $10.5 billion in assets under management.
Pyramis Global Advisors, LLC (Pyramis), 900 Salem Street, Smithfield, Rhode
Island 02917, serves as Sub-Advisor of a portion of the assets of DWS
Diversified Market Neutral Fund. Pyramis, formed in 2005, is the institutional
asset management arm of Fidelity Investments, one of the world's largest mutual
fund managers.
RREEF America L.L.C. (RREEF), 222 South Riverside, Chicago, Illinois 60606,
serves as a Sub-Advisor of all or a portion of the assets of certain funds.
RREEF is an investment advisor registered with the SEC. RREEF is an affiliate
of DIMA and an indirect, wholly-owned subsidiary of Deutsche Bank AG. RREEF has
provided real estate investment management services to institutional investors
since 1975 and has been an investment advisor of real estate securities since
1993.
TERMS OF THE SUB-ADVISORY AGREEMENTS. Pursuant to the terms of the applicable
Sub-Advisory Agreement, a Sub-Advisor makes the investment decisions, buys and
sells securities, and conducts the research that leads to these purchase and
sale decisions for a fund. A Sub-Advisor is also responsible for selecting
brokers and dealers to execute portfolio transactions and for negotiating
brokerage commissions and dealer charges on behalf of a fund. Under the terms
of the Sub-Advisory Agreement, a Sub-Advisor manages the investment and
reinvestment of a fund's assets and provides such investment advice, research
and assistance as DIMA may, from time to time, reasonably request.
Each Sub-Advisory Agreement provides that the Sub-Advisor will not be liable
for any error of judgment or mistake of law or for any loss suffered by a fund
in connection with matters to which the Sub-Advisory Agreement relates, except
a loss resulting from (a) the sub-advisor causing a fund to be in violation of
any applicable federal or state law, rule or regulation or any investment
policy or restriction set forth in a fund's
II-4
prospectus or as may be provided in writing by the Board or DIMA, or (b)
willful misconduct, bad faith or gross negligence on the part of the
Sub-Advisor in the performance of its duties or from reckless disregard by the
Sub-Advisor of its obligations and duties under the Sub-Advisory Agreement.
A Sub-Advisory Agreement continues from year to year only as long as such
continuance is specifically approved at least annually (a) by a majority of the
Board Members who are not parties to such agreement or interested persons of
any such party, and (b) by the shareholders or the Board of the Registrant. A
Sub-Advisory Agreement may be terminated at any time upon 60 days' written
notice by DIMA or by the Board of the Registrant or by majority vote of the
outstanding shares of a fund, and will terminate automatically upon assignment
or upon termination of a fund's Investment Management Agreement.
Under the Sub-Advisory Agreements between DIMA and the Sub-Advisors, DIMA, not
the fund, pays each Sub-Advisor a sub-advisory fee based on the percentage of
the assets overseen by the Sub-Advisor or based on a percentage of the fee
received by DIMA from a fund. The Sub-Advisor fee is paid directly by DIMA at
specific rates negotiated between DIMA and the Sub-Advisor. No fund is
responsible for paying the Sub-Advisor.
SUB-SUBADVISORS (APPLICABLE ONLY TO THOSE FUNDS THAT HAVE SUB-SUBADVISORY
ARRANGEMENTS AS DESCRIBED IN PART I). Each Sub-Subadvisor serves as a
sub-subadvisor with respect to a fund pursuant to the terms of the applicable
sub-subadvisory agreement between it and the Sub-Advisor (Sub-Subadvisory
Agreement).
Deutsche Alternative Asset Management (Global) Limited (DAAM Global), formerly
known as RREEF Global Advisors Limited (RGAL), 1 Great Winchester Street,
London, United Kingdom, EC2N 2DB, serves as Sub-Subadvisor to a fund. DAAM
Global is an investment advisor registered with the SEC. In addition, DAAM
Global is an affiliate of DIMA and an indirect, wholly owned subsidiary of
Deutsche Bank AG.
Deutsche Investments Australia Limited (DIAL), Level 16, 126 Phillip Street,
Sydney NSW 200, Australia, serves as Sub-Subadvisor to a fund. DIAL is an
investment advisor registered with the SEC. In addition, DIAL is an affiliate
of DIMA and an indirect, wholly owned subsidiary of Deutsche Bank AG.
TERMS OF THE SUB-SUBADVISORY AGREEMENTS. Pursuant to the terms of the
applicable Sub-Subadvisory Agreement and under the oversight of the Board, DIMA
and the Sub-Advisor, the Sub-Subadvisors provide investment management services
with respect to a fund's assets related to specific foreign markets and
provides such investment advice, research and assistance as the Sub-Advisor
may, from time to time, reasonably request. The Sub-Advisor allocates, and
reallocates as it deems appropriate, each of a fund's assets among the
Sub-Subadvisors. A Sub-Subadvisor is also responsible for selecting brokers and
dealers to execute portfolio transactions and for negotiating brokerage
commissions and dealer charges on behalf of a fund. Under the terms of the
Sub-Subadvisory Agreement, a Sub-Subadvisor manages the investment and
reinvestment of a portion of a fund's assets.
Each Sub-Subadvisory Agreement provides that the Sub-Subadvisor shall not be
subject to any liability for any act or omission in the course of providing
investment management services to a fund, except a loss resulting from willful
misconduct, bad faith or gross negligence on the part of the Sub-Subadvisor in
the performance of its duties or from reckless disregard by the Sub-Subadvisor
of its obligations and duties under the Sub-Subadvisory Agreement.
A Sub-Subadvisory Agreement continues from year to year only as long as such
continuance is specifically approved at least annually (a) by a majority of the
Board Members who are not parties to such agreement or interested persons of
any such party, and (b) by the shareholders or the Board of the
Trust/Corporation. A Sub-Subadvisory Agreement may be terminated at any time
upon 60 days' written notice by the Board of the Trust/Corporation or by
majority vote of the outstanding shares of a fund, and will terminate
automatically upon assignment or upon termination of a fund's Sub-Advisory
Agreement.
Under the Sub-Subadvisory Agreements, the Sub-Advisor, not the fund, pays each
Sub-Subadvisor a sub-subadvisory fee based on the percentage of the assets
overseen by the Sub-Subadvisor from the fee received by the Sub-Advisor from
DIMA. The sub-subadvisory fee is paid directly by a Sub-Advisor at specific
rates negotiated between a Sub-Advisor and a Sub-Subadvisor. No fund is
responsible for paying a Sub-Subadvisor.
AGREEMENT TO INDEMNIFY INDEPENDENT BOARD MEMBERS FOR CERTAIN EXPENSES. In
connection with litigation or regulatory action related to possible improper
market
II-5
timing or other improper trading activity or possible improper marketing and
sales activity in certain DWS funds (Affected Funds), DIMA has agreed to
indemnify and hold harmless the Affected Funds (Fund Indemnification Agreement)
against any and all loss, damage, liability and expense, arising from market
timing or marketing and sales matters alleged in any enforcement actions
brought by governmental authorities involving or potentially affecting the
Affected Funds or DIMA (Enforcement Actions) or that are the basis for private
actions brought by shareholders of the Affected Funds against the Affected
Funds, their directors and officers, DIMA and/or certain other parties (Private
Litigation), or any proceedings or actions that may be threatened or commenced
in the future by any person (including governmental authorities), arising from
or similar to the matters alleged in the Enforcement Actions or Private
Litigation. In recognition of its undertaking to indemnify the Affected Funds
and in light of the rebuttable presumption generally afforded to independent
directors/trustees of investment companies that they have not engaged in
disabling conduct, DIMA has also agreed, subject to applicable law and
regulation, to indemnify certain (or, with respect to certain Affected Funds,
all) of the Independent Board Members of the Affected Funds, against certain
liabilities the Independent Board Members may incur from the matters alleged in
any Enforcement Actions or Private Litigation or arising from or similar to the
matters alleged in the Enforcement Actions or Private Litigation, and advance
expenses that may be incurred by the Independent Board Members in connection
with any Enforcement Actions or Private Litigation. DIMA is not, however,
required to provide indemnification and advancement of expenses: (1) with
respect to any proceeding or action which the Affected Funds' Board determines
that the Independent Board Members ultimately would not be entitled to
indemnification or (2) for any liability of the Independent Board Members or
their shareholders to which the Independent Board Member would otherwise be
subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of the Independent Board Member's duties as a director or
trustee of the Affected Funds as determined in a final adjudication in such
action or proceeding. The estimated amount of any expenses that may be advanced
to the Independent Board Members or indemnity that may be payable under the
indemnity agreements is currently unknown. These agreements by DIMA will
survive the termination of the Investment Management Agreements between DIMA
and the Affected Funds.
BOARD MEMBERS
BOARD MEMBERS AND OFFICERS' IDENTIFICATION AND BACKGROUND. The identification
and background of the Board Members and Officers of the Registrant are set
forth in PART II - APPENDIX II-A.
BOARD COMMITTEES AND COMPENSATION. Information regarding the Committees of the
Board, as well as compensation paid to the Independent Board Members and to
Board Members who are not officers of the Registrant, for certain specified
periods, is set forth in PART I - APPENDIX I-B AND PART I - APPENDIX I-C.
ADMINISTRATOR, FUND ACCOUNTING AGENT, TRANSFER AGENT AND SHAREHOLDER SERVICE
AGENT, AND CUSTODIAN
ADMINISTRATOR. DIMA serves as a fund's administrator pursuant to an
Administrative Services Agreement.
For its services under the Administrative Services Agreement, the Administrator
receives a fee at the rate set forth in PART II - APPENDIX II-C. The
Administrator will pay Accounting Agency fees out of the Administrative
Services fee.
Under the Administrative Services Agreement, the Administrator is obligated on
a continuous basis to provide such administrative services as the Board of a
fund reasonably deems necessary for the proper administration of a fund. The
Administrator provides a fund with personnel; arranges for the preparation and
filing of a fund's tax returns; prepares and submits reports and meeting
materials to the Board and the shareholders; prepares and files updates to a
fund's prospectus and statement of additional information as well as other
reports required to be filed by the SEC; maintains a fund's records; provides a
fund with office space, equipment and services; supervises, negotiates the
contracts of and monitors the performance of third parties contractors;
oversees the tabulation of proxies; monitors the valuation of portfolio
securities and monitors compliance with Board-approved valuation procedures;
assists in establishing the accounting and tax policies of a fund; assists in
the resolution of accounting issues that may arise with respect to a fund;
establishes and monitors a fund's operating expense budgets; reviews and
processes a fund's bills; assists in determining the amount of dividends and
distributions available to be paid by a fund, prepares and arranges dividend
notifications and provides information to agents to effect payments thereof;
provides to the Board periodic and special reports; provides assistance with
investor
II-6
and public relations matters; and monitors the registration of shares under
applicable federal and state law. The Administrator also performs certain fund
accounting services under the Administrative Services Agreement.
The Administrative Services Agreement provides that the Administrator will not
be liable under the Administrative Services Agreement except for willful
misfeasance, bad faith or negligence in the performance of its duties or from
the reckless disregard by it of its duties and obligations thereunder. Pursuant
to an agreement between the Administrator and SSB, the Administrator has
delegated certain administrative functions to SSB. The costs and expenses of
such delegation are borne by the Administrator, not by a fund.
Pursuant to the Advisor's procedures, approved by the Board, proof of claim
forms are routinely filed on behalf of a fund by a third party service
provider, with certain limited exceptions. The Board receives periodic reports
regarding the implementation of these procedures.
FUND ACCOUNTING AGENT. For Money Market Portfolio, DWS Mid Cap Value Fund, DWS
Equity Dividend Fund and DWS Small Cap Value Fund, DIMA, One Beacon Street,
Boston, Massachusetts 02108, is responsible for determining net asset value per
share and maintaining the portfolio and general accounting records for a fund
pursuant to a Fund Accounting Agreement. For its services under a Fund
Accounting Agreement, DIMA receives a fee at the rate set forth in PART II -
APPENDIX II-C. Prior to March 31, 2011, DWS Investments Fund Accounting
Corporation (DIFA), a subsidiary of DIMA, performed these fund accounting
services for the funds.
Pursuant to an agreement between DIMA and SSB, DIMA has delegated certain fund
accounting functions to SSB under the Fund Accounting Agreement. Prior to March
31, 2011, DIFA had also delegated these functions to SSB. The costs and
expenses of such delegation are borne by DIMA, not by a fund.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGENT. DISC, 210 W. 10th Street, Kansas
City, Missouri 64105-1614, an affiliate of the Advisor, is each fund's transfer
agent, dividend-paying agent and shareholder service agent pursuant to a
transfer agency and service agreement (Transfer Agency and Services Agreement).
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 servicing agent functions to DST. The costs and expenses of such
delegation are borne by DISC, not by a fund. For its services under the
Transfer Agency and Services Agreement, DISC receives a fee at the rate set
forth in PART II - APPENDIX II-C. Each fund, or the Advisor (including any
affiliate of the Advisor), or both, may pay unaffiliated third parties for
providing recordkeeping and other administrative services with respect to
accounts of participants in retirement plans or other beneficial owners of
shares whose interests are generally held in an omnibus account.
CUSTODIAN. Under its custody agreement with a fund, the Custodian (i) maintains
separate accounts in the name of a fund, (ii) holds and transfers portfolio
securities on account of a fund, (iii) accepts receipts and makes disbursements
of money on behalf of a fund, and (iv) collects and receives all income and
other payments and distributions on account of a fund's portfolio securities.
The Custodian has entered into agreements with foreign subcustodians approved
by the Board pursuant to Rule 17f-5 under the 1940 Act.
In some instances, the Custodian may use Deutsche Bank AG or its affiliates, as
subcustodian (DB Subcustodian) in certain countries. To the extent a fund holds
any securities in the countries in which the Custodian uses a DB Subcustodian
as a subcustodian, those securities will be held by DB Subcustodian as part of
a larger omnibus account in the name of the Custodian (Omnibus Account). For
its services, DB Subcustodian receives (1) an annual fee based on a percentage
of the average daily net assets of the Omnibus Account and (2) transaction
charges with respect to transactions that occur within the Omnibus Account
(e.g., foreign exchange transactions or corporate transactions).
The Custodian's fee may be reduced by certain earnings credits in favor of a
fund.
FUND LEGAL COUNSEL. Provides legal services to the funds.
TRUSTEE/DIRECTOR LEGAL COUNSEL. Serves as legal counsel to the Independent
Board Members.
PRINCIPAL UNDERWRITER AND DISTRIBUTION AGREEMENT. Pursuant to a distribution
agreement (Distribution Agreement) with a fund, DIDI, 222 South Riverside
Plaza, Chicago, Illinois 60606, an affiliate of the Advisor, is the principal
underwriter and distributor for each class of shares of a fund and acts as
agent of a fund in the continuous offering of its shares. The Distribution
Agreement remains in effect for a class from year-to-year only if its
continuance is approved for the class at least
II-7
annually by a vote of the Board, including the Board Members who are not
parties to the Distribution Agreement or interested persons of any such party.
The Distribution Agreement automatically terminates in the event of its
assignment and may be terminated for a class at any time without penalty by a
fund or by DIDI upon 60 days' notice. Termination by a fund with respect to a
class may be by vote of (i) a majority of the Board Members who are not
interested persons of a fund and who have no direct or indirect financial
interest in the Distribution Agreement or any related agreement, or (ii) a
"majority of the outstanding voting securities" of the class of a fund, as
defined under the 1940 Act. All material amendments must be approved by the
Board in the manner described above with respect to the continuation of the
Distribution Agreement. The provisions concerning continuation, amendment and
termination of a Distribution Agreement are on a fund-by-fund and class-
by-class basis.
Under the Distribution Agreement, DIDI uses reasonable efforts to sell shares
of a fund and may appoint various financial services firms to sell shares of a
fund. DIDI bears all of its expenses of providing services pursuant to the
Distribution Agreement, including the payment of any commissions, concessions,
and distribution fees to financial services firms. A fund pays the cost of the
registration of its shares for sale under the federal securities laws and the
registration or qualification of its shares for sale under the securities laws
of the various states. A fund also pays the cost for the prospectus and
shareholder reports to be typeset and printed for existing shareholders, and
DIDI, as principal underwriter, pays for the printing and distribution of
copies thereof used in connection with the offering of shares to prospective
investors. DIDI also pays for supplementary sales literature and advertising
costs. DIDI receives any sales charge upon the purchase of shares of a class
with an initial sales charge and pays commissions, concessions and distribution
fees to firms for the sale of a fund's shares. DIDI also receives any
contingent deferred sales charges paid with respect to the redemption of any
shares having such a charge. DIDI receives no compensation from a fund as
principal underwriter and distributor except with respect to certain fund
classes in amounts authorized by a Rule 12b-1 Plan adopted for a class by a
fund (see Distribution and Service Agreements and Plans).
SHAREHOLDER AND ADMINISTRATIVE SERVICES. Shareholder and administrative
services are provided to certain fund classes under a shareholder services
agreement (Services Agreement) with DIDI. The Services Agreement continues in
effect for each class from year to year so long as such continuance is approved
for the class at least annually by a vote of the Board, including the Board
Members who are not interested persons of a fund and who have no direct or
indirect financial interest in the Services Agreement or in any related
agreement. The Services Agreement automatically terminates in the event of its
assignment and may be terminated for a class at any time without penalty by a
fund or by DIDI upon 60 days' notice. Termination by a fund with respect to a
class may be by a vote of (i) the majority of the Board Members who are not
interested persons of a fund and who have no direct or indirect financial
interest in the Services Agreement or in any related agreement, or (ii) a
"majority of the outstanding voting securities" of the class of such fund, as
defined under the 1940 Act. The Services Agreement may not be amended for a
class to increase materially the fee to be paid by a fund without approval of a
majority of the outstanding voting securities of such class of a fund, and all
material amendments must in any event be approved by the Board in the manner
described above with respect to the continuation of the Services Agreement.
Under the Services Agreement, DIDI provides, and may appoint various financial
services firms to provide, information and services to investors in certain
classes of a fund. Firms appointed by DIDI provide such office space and
equipment, telephone facilities and personnel as is necessary or beneficial for
providing information and services to shareholders in the applicable classes of
a fund. Such services and assistance may include, but are not limited to,
establishing and maintaining accounts and records, processing purchase and
redemption transactions, answering routine inquiries regarding a fund,
providing assistance to clients in changing dividend and investment options,
account designations and addresses and such other administrative services as
may be agreed upon from time to time and permitted by applicable statute, rule
or regulation.
DIDI bears all of its expenses of providing those services pursuant to the
Services Agreement, including the payment of any service fees to financial
services firms appointed by DIDI to provide such services and DIDI receives
compensation from a fund for its services under the Services Agreement in
amounts authorized by a Rule 12b-1 Plan adopted for a class by a fund (see
Distribution and Service Agreements and Plans).
DIDI may itself provide some of the above distribution and shareholder and
administrative services and may retain any portion of the fees received under
the Distribution Agreement and/or the Services Agreement not
II-8
paid to financial services firms to compensate itself for such distribution and
shareholder and administrative functions performed for a fund. Firms to which
DIDI may pay commissions, concessions, and distribution fees or service fees or
other compensation may include affiliates of DIDI.
CODES OF ETHICS. Each fund, the Advisor, a fund's principal underwriter and, if
applicable, a fund's sub-advisor (and sub-subadvisor) have each adopted codes
of ethics under Rule 17j-1 under the 1940 Act. Board Members, officers of a
Registrant and employees of the Advisor and principal underwriter are permitted
to make personal securities transactions, including transactions in securities
that may be purchased or held by a fund, subject to requirements and
restrictions set forth in the applicable Code of Ethics. The Advisor's Code of
Ethics contains provisions and requirements designed to identify and address
certain conflicts of interest between personal investment activities and the
interests of a fund. Among other things, the Advisor's Code of Ethics prohibits
certain types of transactions absent prior approval, imposes time periods
during which personal transactions may not be made in certain securities, and
requires the submission of duplicate broker confirmations and quarterly
reporting of securities transactions. Additional restrictions apply to
portfolio managers, traders, research analysts and others involved in the
investment advisory process. Exceptions to these and other provisions of the
Advisor's or sub-advisors Codes of Ethics may be granted in particular
circumstances after review by appropriate personnel.
FUND ORGANIZATION
FOR EACH TRUST (EXCEPT DWS TARGET DATE SERIES, DWS PORTFOLIO TRUST, DWS TAX
FREE TRUST AND CASH ACCOUNT TRUST)
The Board has the authority to divide the shares of the Trust into multiple
funds by establishing and designating two or more series of the Trust. The
Board also has the authority to establish and designate two or more classes of
shares of the Trust, or of any series thereof, with variations in the relative
rights and preferences between the classes as determined by the Board; provided
that all shares of a class shall be identical with each other and with the
shares of each other class of the same series except for such variations
between the classes, including bearing different expenses, as may be authorized
by the Board and not prohibited by the 1940 Act and the rules and regulations
thereunder. All shares issued and outstanding are transferable, have no
pre-emptive or conversion rights (except as may be determined by the Board) and
are redeemable as described in the SAI and in the prospectus. Each share has
equal rights with each other share of the same class of the fund as to voting,
dividends, exchanges, conversion features and liquidation. Shareholders are
entitled to one vote for each full share held and fractional votes for
fractional shares held.
A fund generally is not required to hold meetings of its shareholders. Under
the Declaration of Trust, shareholders only have the power to vote in
connection with the following matters and only to the extent and as provided in
the Declaration of Trust and as required by applicable law: (a) the election,
re-election or removal of one or more Trustees if a meeting of shareholders is
called by or at the direction of the Board for such purpose(s), provided that
the Board shall promptly call a meeting of shareholders for the purpose of
voting upon the question of removal of one or more Trustees as a result of a
request in writing by the holders of not less than 10% of the outstanding
shares of the Trust; (b) the termination of the Trust or a fund if, in either
case, the Board submits the matter to a vote of shareholders; (c) any amendment
of the Declaration of Trust that (i) would affect the rights of shareholders to
vote under the Declaration of Trust, (ii) requires shareholder approval under
applicable law or (iii) the Board submits to a vote of shareholders; and (d)
such additional matters as may be required by law or as the Board may determine
to be necessary or desirable. Shareholders also vote upon changes in
fundamental policies or restrictions.
The Declaration of Trust provides that shareholder meeting quorum requirements
shall be established in the By-laws. The By-laws of the Trust currently provide
that the presence in person or by proxy of the holders of 30% of the shares
entitled to vote at a meeting shall constitute a quorum for the transaction of
business at meetings of shareholders of the Trust (or of an individual series
or class if required to vote separately).
On any matter submitted to a vote of shareholders, all shares of the Trust
entitled to vote shall, except as otherwise provided in the By-laws, be voted
in the aggregate as a single class without regard to series or classes of
shares, except (a) when required by applicable law or when the Board has
determined that the matter affects one or more series or classes of shares
materially differently, shares shall be voted by individual series or class;
and (b) when the Board has determined that the matter affects only the
interests of one or more series or classes, only shareholders of such series or
classes shall be entitled to vote thereon.
II-9
The Declaration of Trust provides that the Board may, in its discretion,
establish minimum investment amounts for shareholder accounts, impose fees on
accounts that do not exceed a minimum investment amount and involuntarily
redeem shares in any such account in payment of such fees. The Board, in its
sole discretion, also may cause the Trust to redeem all of the shares of the
Trust or one or more series or classes held by any shareholder for any reason,
to the extent permissible by the 1940 Act, including (a) if the shareholder
owns shares having an aggregate net asset value of less than a specified
minimum amount, (b) if a particular shareholder's ownership of shares would
disqualify a series from being a regulated investment company, (c) upon a
shareholder's failure to provide sufficient identification to permit the Trust
to verify the shareholder's identity, (d) upon a shareholder's failure to pay
for shares or meet or maintain the qualifications for ownership of a particular
class or series of shares, (e) if the Board determines (or pursuant to policies
established by the Board it is determined) that share ownership by a particular
shareholder is not in the best interests of remaining shareholders, (f) when a
fund is requested or compelled to do so by governmental authority or applicable
law and (g) upon a shareholder's failure to comply with a request for
information with respect to the direct or indirect ownership of shares or other
securities of the Trust. The Declaration of Trust also authorizes the Board to
terminate a fund or any class without shareholder approval, and the Trust may
suspend the right of shareholders to require the Trust to redeem shares to the
extent permissible under the 1940 Act.
The Declaration of Trust provides that, except as otherwise required by
applicable law, the Board may authorize the Trust or any series or class
thereof to merge, reorganize or consolidate with any corporation, association,
trust or series thereof (including another series or class of the Trust) or
other entity (in each case, the "Surviving Entity") or the Board may sell,
lease or exchange all or substantially all of the Trust property (or all or
substantially all of the Trust property allocated or belonging to a particular
series or class), including its good will, to any Surviving Entity, upon such
terms and conditions and for such consideration as authorized by the Board.
Such transactions may be effected through share-for-share exchanges, transfers
or sales of assets, in-kind redemptions and purchases, exchange offers or any
other method approved by the Board. The Board shall provide notice to affected
shareholders of each such transaction. The authority of the Board with respect
to the merger, reorganization or consolidation of any class of the Trust is in
addition to the authority of the Board to combine two or more classes of a
series into a single class.
Upon the termination of the Trust or any series, after paying or adequately
providing for the payment of all liabilities, which may include the
establishment of a liquidating trust or similar vehicle, and upon receipt of
such releases, indemnities and refunding agreements as they deem necessary for
their protection, the Board may distribute the remaining Trust property or
property of the series to the shareholders of the Trust or the series involved,
ratably according to the number of shares of the Trust or such series held by
the several shareholders of the Trust or such series on the date of
termination, except to the extent otherwise required or permitted by the
preferences and special or relative rights and privileges of any classes of
shares of a series involved, provided that any distribution to the shareholders
of a particular class of shares shall be made to such shareholders pro rata in
proportion to the number of shares of such class held by each of them. The
composition of any such distribution (e.g., cash, securities or other assets)
shall be determined by the Trust in its sole discretion and may be different
among shareholders (including differences among shareholders in the same series
or class).
Under Massachusetts law, shareholders of a Massachusetts business trust could,
under certain circumstances, be held personally liable for obligations of a
fund. The Declaration of Trust, however, disclaims shareholder liability for
acts or obligations of the fund and requires that notice of such disclaimer be
given in each agreement, obligation, or instrument entered into or executed by
a fund or a fund's trustees. Moreover, the Declaration of Trust provides for
indemnification out of fund property for all losses and expenses of any
shareholder held personally liable for the obligations of the fund and the fund
may be covered by insurance which the Board considers adequate to cover
foreseeable tort claims. Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability is limited to circumstances in which a
disclaimer is inoperative and a fund itself is unable to meet its obligations.
FOR DWS TARGET DATE SERIES, DWS PORTFOLIO TRUST AND DWS TAX FREE TRUST
The Board has the authority to divide the shares of the Trust into multiple
funds by establishing and designating two or more series of the Trust. The
Board also has the authority to establish and designate two or more classes of
shares of the Trust, or of any series thereof, with variations in the relative
rights and preferences between the classes as determined by the Board; provided
that all shares of a class shall be identical with each other and with the
shares of each other class of the same series
II-10
except for such variations between the classes, including bearing different
expenses, as may be authorized by the Board and not prohibited by the 1940 Act
and the rules and regulations thereunder. All shares issued and outstanding are
transferable, have no pre-emptive or conversion rights (except as may be
determined by the Board) and are redeemable as described in the SAI and in the
prospectus. Each share has equal rights with each other share of the same class
of the fund as to voting, dividends, exchanges, conversion features and
liquidation. Shareholders are entitled to one vote for each full share held and
fractional votes for fractional shares held.
A fund generally is not required to hold meetings of its shareholders. Under
the Declaration of Trust, shareholders only have the power to vote in
connection with the following matters and only to the extent and as provided in
the Declaration of Trust and as required by applicable law: (a) the election,
re-election or removal of one or more Trustees if a meeting of shareholders is
called by or at the direction of the Board for such purpose(s), provided that
the Board shall promptly call a meeting of shareholders for the purpose of
voting upon the question of removal of one or more Trustees as a result of a
request in writing by the holders of not less than 10% of the outstanding
shares of the Trust; (b) the termination of the Trust or a fund if, in either
case, the Board submits the matter to a vote of shareholders; (c) any amendment
of the Declaration of Trust that (i) would change any right with respect to any
shares of the Trust or fund by reducing the amount payable thereon upon
liquidation of the Trust or fund or by diminishing or eliminating any voting
rights pertaining thereto, in which case the vote or consent of the holders of
two-thirds of the shares of the Trust or fund outstanding and entitled to vote
would be required (ii) requires shareholder approval under applicable law or
(iii) the Board submits to a vote of shareholders; and (d) such additional
matters as may be required by law or as the Board may determine to be necessary
or desirable. Shareholders also vote upon changes in fundamental policies or
restrictions.
In addition, under the Declaration of Trust, shareholders of the Trust also
have the power to vote in connection with the following matters to the extent
and as provided in the Declaration of Trust and as required by applicable law:
(a) to the same extent as the stockholders of a Massachusetts business
corporation as to whether or not a court action, proceeding or claims should or
should not be brought or maintained derivatively or as a class action on behalf
of the Trust or the shareholders; (b) with respect to any merger, consolidation
or sale of assets; (c) with respect to any investment advisory or management
contract entered into with respect to one or more funds; (d) with respect to
the incorporation of the Trust or a fund; (e) with respect to any plan adopted
pursuant to Rule 12b-1 (or any successor rule) under the 1940 Act; and (f) with
respect to such additional matters relating to the Trust as may be required by
the Declaration of Trust, the By-laws or any registration of the Trust with the
SEC as an investment company under the 1940 Act.
The Declaration of Trust provides that shareholder meeting quorum requirements
shall be established in the By-laws. The By-laws of the Trust currently provide
that the presence in person or by proxy of the holders of 30% of the shares
entitled to vote at a meeting shall constitute a quorum for the transaction of
business at meetings of shareholders of the Trust (or of an individual series
or class if required to vote separately).
On any matter submitted to a vote of shareholders, all shares of the Trust
entitled to vote shall, except as otherwise provided in the By-laws, be voted
in the aggregate as a single class without regard to series or classes of
shares, except (a) when required by applicable law or when the Board has
determined that the matter affects one or more series or classes of shares
materially differently, shares shall be voted by individual series or class;
and (b) when the Board has determined that the matter affects only the
interests of one or more series or classes, only shareholders of such series or
classes shall be entitled to vote thereon.
The Declaration of Trust provides that the Board may, in its discretion,
establish minimum investment amounts for shareholder accounts, impose fees on
accounts that do not exceed a minimum investment amount and involuntarily
redeem shares in any such account in payment of such fees. The Board, in its
sole discretion, also may cause the Trust to redeem all of the shares of the
Trust or one or more series or classes held by any shareholder for any reason,
to the extent permissible by the 1940 Act, including (a) if the shareholder
owns shares having an aggregate net asset value of less than a specified
minimum amount, (b) if a particular shareholder's ownership of shares would
disqualify a series from being a regulated investment company, (c) upon a
shareholder's failure to provide sufficient identification to permit the Trust
to verify the shareholder's identity, (d) upon a shareholder's failure to pay
for shares or meet or maintain the qualifications for ownership of a particular
class or series of shares, (e) if the Board determines (or pursuant to policies
established by the Board it is determined) that share ownership by a particular
shareholder is not in the best interests of remaining shareholders,
II-11
(f) when a fund is requested or compelled to do so by governmental authority or
applicable law and (g) upon a shareholder's failure to comply with a request
for information with respect to the direct or indirect ownership of shares or
other securities of the Trust. The Declaration of Trust also authorizes the
Board to terminate a fund or any class without shareholder approval, and the
Trust may suspend the right of shareholders to require the Trust to redeem
shares to the extent permissible under the 1940 Act.
Upon the termination of the Trust or any series, after paying or adequately
providing for the payment of all liabilities, which may include the
establishment of a liquidating trust or similar vehicle, and upon receipt of
such releases, indemnities and refunding agreements as they deem necessary for
their protection, the Board may distribute the remaining Trust property or
property of the series to the shareholders of the Trust or the series involved,
ratably according to the number of shares of the Trust or such series held by
the several shareholders of the Trust or such series on the date of
termination, except to the extent otherwise required or permitted by the
preferences and special or relative rights and privileges of any classes of
shares of a series involved, provided that any distribution to the shareholders
of a particular class of shares shall be made to such shareholders pro rata in
proportion to the number of shares of such class held by each of them. The
composition of any such distribution (e.g., cash, securities or other assets)
shall be determined by the Trust in its sole discretion and may be different
among shareholders (including differences among shareholders in the same series
or class).
Under Massachusetts law, shareholders of a Massachusetts business trust could,
under certain circumstances, be held personally liable for obligations of a
fund. The Declaration of Trust, however, disclaims shareholder liability for
acts or obligations of the fund and requires that notice of such disclaimer be
given in each agreement, obligation, or instrument entered into or executed by
a fund or a fund's trustees. Moreover, the Declaration of Trust provides for
indemnification out of fund property for all losses and expenses of any
shareholder held personally liable for the obligations of the fund and the fund
may be covered by insurance which the Board considers adequate to cover
foreseeable tort claims. Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability is limited to circumstances in which a
disclaimer is inoperative and a fund itself is unable to meet its obligations.
FOR CASH ACCOUNT TRUST
The Board Members have the authority to create additional funds and to
designate the relative rights and preferences as between the different funds.
The Board Members also may authorize the division of shares of a fund into
different classes, which may bear different expenses. All shares issued and
outstanding are fully paid and non-assessable, transferable, have no
pre-emptive or conversion rights and are redeemable as described in the funds'
prospectuses and SAIs. Each share has equal rights with each other share of the
same class of the fund as to voting, dividends, exchanges, conversion features
and liquidation. Shareholders are entitled to one vote for each full share held
and fractional votes for fractional shares held. The Board Members may also
terminate any fund or class by notice to the shareholders without shareholder
approval.
The Trust generally is not required to hold meetings of its shareholders. Under
the Declaration of Trust, however, shareholder meetings will be held in
connection with the following matters: (a) the election or removal of Board
Members if a meeting is called for such purpose; (b) the adoption of any
contract for which shareholder approval is required by the 1940 Act; (c) any
termination or reorganization of the Trust to the extent and as provided in the
Declaration of Trust; (d) any amendment of the Declaration of Trust (other than
amendments changing the name of the Trust or any fund, establishing a fund,
supplying any omission, curing any ambiguity or curing, correcting or
supplementing any defective or inconsistent provision thereof); and (e) such
additional matters as may be required by law, the Declaration of Trust, the
By-laws of the Trust, or any registration of the Trust with the Securities and
Exchange Commission or any state, or as the Board Members may consider
necessary or desirable. The shareholders also would vote upon changes in
fundamental investment objectives, policies or restrictions.
Subject to the Declaration of Trust, shareholders may remove Board Members.
Each Board Member serves until the next meeting of shareholders, if any, called
for the purpose of electing Board Members and until the election and
qualification of a successor or until such Board Member sooner dies, resigns,
retires or is removed by a majority vote of the shares entitled to vote (as
described below) or a majority of the Board Members. In accordance with the
1940 Act (a) the Trust will hold a shareholder meeting for the election of
Board Members at such time as less than a majority of the Board Members have
been elected by shareholders, and (b) if, as a result
II-12
of a vacancy in the Board, less than two-thirds of the Board Members have been
elected by the shareholders, that vacancy will be filled only by a vote of the
shareholders.
The Declaration of Trust provides that obligations of the Trust are not binding
upon the Board Members individually but only upon the property of the Trust,
that the Board Members and officers will not be liable for errors of judgment
or mistakes of fact or law, and that a Trust will indemnify its Board Members
and officers against liabilities and expenses incurred in connection with
litigation in which they may be involved because of their offices with a Trust
except if it is determined in the manner provided in the Declaration of Trust
that they have not acted in good faith in the reasonable belief that their
actions were in the best interests of the Trust. However, nothing in the
Declaration of Trust protects or indemnifies a Board Member or officer against
any liability to which he would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence, or reckless disregard of the duties
involved in the conduct of their office.
Board Members may be removed from office by a vote of the holders of a majority
of the outstanding shares at a meeting called for that purpose, which meeting
shall be held upon the written request of the holders of not less than 10% of
the outstanding shares. Upon the written request of ten or more shareholders
who have been such for at least six months and who hold shares constituting at
least 1% of the outstanding shares of the Trust stating that such shareholders
wish to communicate with the other shareholders for the purpose of obtaining
the signatures necessary to demand a meeting to consider removal of a trustee,
the Trust has undertaken to disseminate appropriate materials at the expense of
the requesting shareholders.
The Declaration of Trust provides that the presence at a shareholder meeting in
person or by proxy of at least 30% of the shares entitled to vote on a matter
shall constitute a quorum. Thus, a meeting of shareholders of a fund could take
place even if less than a majority of the shareholders were represented on its
scheduled date. Shareholders would in such a case be permitted to take action
which does not require a larger vote than a majority of a quorum, such as the
election of Board Members and ratification of the selection of auditors. Some
matters requiring a larger vote under the Declaration of Trust, such as
termination or reorganization of a fund and certain amendments of the
Declaration of Trust, would not be affected by this provision; nor would
matters which under the 1940 Act require the vote of a "majority of the
outstanding voting securities" as defined in the 1940 Act.
The Declaration of Trust specifically authorizes the Board to terminate the
Trust (or any fund or class) by notice to the shareholders without shareholder
approval.
Under Massachusetts law, shareholders of a Massachusetts business trust could,
under certain circumstances, be held personally liable for obligations of the
Trust. The Declaration of Trust, however, disclaims shareholder liability for
acts or obligations of the Trust and requires that notice of such disclaimer be
given in each agreement, obligation, or instrument entered into or executed by
the Trust or the Board Members. Moreover, the Declaration of Trust provides for
indemnification out of Trust property for all losses and expenses of any
shareholder held personally liable for the obligations of the Trust and the
Trust may be covered by insurance. Thus, the risk of a shareholder incurring
financial loss on account of shareholder liability is considered by the Advisor
remote and not material, since it is limited to circumstances in which a
disclaimer is inoperative and the Trust itself is unable to meet its
obligations.
FOR EACH CORPORATION (EXCEPT DWS VALUE SERIES, INC.)
All shares issued and outstanding are fully paid and non-assessable,
transferable, have no pre-emptive rights (except as may be determined by the
Board of Directors) or conversion rights (except as described below) and are
redeemable as described in the SAI and in each fund's prospectus. Each share
has equal rights with each other share of the same class of a fund as to
voting, dividends, exchanges and liquidation. Shareholders are entitled to one
vote for each share held and fractional votes for fractional shares held.
The Board of Directors may determine that shares of a fund or a class of a fund
shall be automatically converted into shares of another fund of the Corporation
or of another class of the same or another fund based on the relative net
assets of such fund or class at the time of conversion. The Board of Directors
may also provide that the holders of shares of a fund or a class of a fund
shall have the right to convert or exchange their shares into shares of one or
more other funds or classes on terms established by the Board of Directors.
II-13
Each share of the Corporation may be subject to such sales loads or charges,
expenses and fees, account size requirements, and other rights and provisions,
which may be the same or different from any other share of the Corporation or
any other share of any fund or class of a fund (including shares of the same
fund or class as the share), as the Board of Directors may establish or change
from time to time and to the extent permitted under the 1940 Act.
The Corporation is not required to hold an annual meeting of shareholders in
any year in which the election of Directors is not required by the 1940 Act. If
a meeting of shareholders of the Corporation is required by the 1940 Act to
take action on the election of Directors, then an annual meeting shall be held
to elect Directors and take such other action as may come before the meeting.
Special meetings of the shareholders of the Corporation, or of the shareholders
of one or more funds or classes thereof, for any purpose or purposes, may be
called at any time by the Board of Directors or by the President, and shall be
called by the President or Secretary at the request in writing of shareholders
entitled to cast a majority of the votes entitled to be cast at the meeting.
Except as provided in the 1940 Act, the presence in person or by proxy of the
holders of one-third of the shares entitled to vote at a meeting shall
constitute a quorum for the transaction of business at meetings of shareholders
of the Corporation or of a fund or class.
On any matter submitted to a vote of shareholders, all shares of the
Corporation entitled to vote shall be voted in the aggregate as a single class
without regard to series or classes of shares, provided, however, that (a) when
applicable law requires that one or more series or classes vote separately,
such series or classes shall vote separately and, subject to (b) below, all
other series or classes shall vote in the aggregate; and (b) when the Board of
Directors determines that a matter does not affect the interests of a
particular series or class, such series or class shall not be entitled to any
vote and only the shares of the affected series or classes shall be entitled to
vote.
Notwithstanding any provision of Maryland corporate law requiring authorization
of any action by a greater proportion than a majority of the total number of
shares entitled to vote on a matter, such action shall be effective if
authorized by the majority vote of the outstanding shares entitled to vote.
Subject to the requirements of applicable law and any procedures adopted by the
Board of Directors from time to time, the holders of shares of the Corporation
or any one or more series or classes thereof may take action or consent to any
action by delivering a consent, in writing or by electronic transmission, of
the holders entitled to cast not less than the minimum number of votes that
would be necessary to authorize or take the action at a formal meeting.
The Articles of Incorporation provide that the Board of Directors may, in its
discretion, establish minimum investment amounts for shareholder accounts,
impose fees on accounts that do not exceed a minimum investment amount and
involuntarily redeem shares in any such account in payment of such fees. The
Board of Directors, in its sole discretion, also may cause the Corporation to
redeem all of the shares of the Corporation or one or more series or classes
held by any shareholder for any reason, to the extent permissible by the 1940
Act, including (a) if the shareholder owns shares having an aggregate net asset
value of less than a specified minimum amount, (b) if the shareholder's
ownership of shares would disqualify a series from being a regulated investment
company, (c) upon a shareholder's failure to provide sufficient identification
to permit the Corporation to verify the shareholder's identity, (d) upon a
shareholder's failure to pay for shares or meet or maintain the qualifications
for ownership of a particular series or class, (e) if the Board of Directors
determines (or pursuant to policies established by the Board of Directors it is
determined) that share ownership by a shareholder is not in the best interests
of the remaining shareholders, (f) when the Corporation is requested or
compelled to do so by governmental authority or applicable law, or (g) upon a
shareholder's failure to comply with a request for information with respect to
the direct or indirect ownership of shares of the Corporation. By redeeming
shares the Corporation may terminate a fund or any class without shareholder
approval, and the Corporation may suspend the right of shareholders to require
the Corporation to redeem shares to the extent permissible under the 1940 Act.
Except as otherwise permitted by the Articles of Incorporation, upon
liquidation or termination of a fund or class, shareholders of such fund or
class of such fund shall be entitled to receive, pro rata in proportion to the
number of shares of such fund or class held by each of them, a share of the net
assets of such fund or class, and the holders of shares of any other particular
fund or class shall not be entitled to any such distribution, provided,
however, that the composition of any such payment (e.g., cash, securities
and/or other assets) to any shareholder shall be determined by the Corporation
in its sole
II-14
discretion, and may be different among shareholders (including differences
among shareholders in the same fund or class).
FOR DWS VALUE SERIES, INC.
All shares issued and outstanding are fully paid and non-assessable,
transferable, have no pre-emptive rights (except as may be determined by the
Board of Directors) or conversion rights (except as described below) and are
redeemable as described in the SAI and in each fund's prospectus. Each share
has equal rights with each other share of the same class of a fund as to
voting, dividends, exchanges and liquidation. Shareholders are entitled to one
vote for each share held and fractional votes for fractional shares held.
The Board of Directors may provide that the holders of shares of a fund or a
class of a fund shall have the right to convert or exchange their shares into
shares of one or more other funds or classes on terms established by the Board
of Directors.
Each share of the Corporation may be subject to such sales loads or charges,
expenses and fees, and account size requirements as the Board of Directors may
establish or change from time to time and to the extent permitted under the
1940 Act.
The Corporation is not required to hold an annual meeting of shareholders in
any year in which the election of Directors is not required by the 1940 Act. If
a meeting of shareholders of the Corporation is required by the 1940 Act to
take action on the election of Directors, then an annual meeting shall be held
to elect Directors and take such other action as may come before the meeting.
Special meetings of the shareholders of the Corporation, or of the shareholders
of one or more funds or classes thereof, for any purpose or purposes, may be
called at any time by the Board of Directors or by the President, and shall be
called by the President or Secretary at the request in writing of shareholders
entitled to cast a majority of the votes entitled to be cast at the meeting.
Except as provided in the 1940 Act, the presence in person or by proxy of the
holders of one-third of the shares entitled to vote at a meeting shall
constitute a quorum for the transaction of business at meetings of shareholders
of the Corporation or of a fund or class.
On any matter submitted to a vote of shareholders, all shares of the
Corporation entitled to vote shall be voted in the aggregate as a single class
without regard to series or classes of shares, provided, however, that (a) when
applicable law requires that one or more series or classes vote separately,
such series or classes shall vote separately and, subject to (b) below, all
other series or classes shall vote in the aggregate; and (b) when a matter does
not affect the interests of a particular series or class, such series or class
shall not be entitled to any vote and only the shares of the affected series or
classes shall be entitled to vote.
Notwithstanding any provision of Maryland corporate law requiring authorization
of any action by a greater proportion than a majority of the total number of
shares entitled to vote on a matter, such action shall be effective if
authorized by the majority vote of the outstanding shares entitled to vote.
The Board of Directors, in its sole discretion, may cause the Corporation to
redeem all of the shares of the Corporation or one or more series or classes
held by any shareholder for any reason, to the extent permissible by the 1940
Act. By redeeming shares the Corporation may terminate a fund or any class
without shareholder approval, and the Corporation may suspend the right of
shareholders to require the Corporation to redeem shares to the extent
permissible under the 1940 Act.
Except as otherwise permitted by the Articles of Incorporation, upon
liquidation or termination of a fund or class, shareholders of such fund or
class of such fund shall be entitled to receive, pro rata in proportion to the
number of shares of such fund or class held by each of them, a share of the net
assets of such fund or class, and the holders of shares of any other particular
fund or class shall not be entitled to any such distribution.
PURCHASE AND REDEMPTION OF SHARES
GENERAL INFORMATION. Policies and procedures affecting transactions in a fund's
shares can be changed at any time without notice, subject to applicable law.
Transactions may be contingent upon proper completion of application forms and
other documents by shareholders and their receipt by a fund's agents.
Transaction delays in processing (and changing account features) due to
circumstances within or beyond the control of a fund and its agents may occur.
Shareholders (or their financial services firms) are responsible for all losses
and fees resulting from bad checks, cancelled orders or the failure to
consummate transactions effected pursuant to instructions reasonably believed
to be genuine.
II-15
The Board and DIDI each may suspend (in whole or in part) or terminate the
offering of shares of a fund at any time for any reason and may limit the
amount of purchases by, and refuse to sell to, any person. During the period of
such suspension, the Board or DIDI potentially may permit certain persons (for
example, persons who are already shareholders the fund) to continue to purchase
additional shares of a fund and to have dividends reinvested.
Orders will be confirmed at a share price next calculated after receipt in good
order by DIDI. Except as described below, orders received by certain dealers or
other financial services firms prior to the close of a fund's business day will
be confirmed at a price based on the net asset value determined on that day
(trade date).
USE OF FINANCIAL SERVICES FIRMS. Dealers and other financial services firms
provide varying arrangements for their clients to purchase and redeem a fund's
shares, including different minimum investments, and may assess transaction or
other fees. In addition, certain privileges with respect to the purchase and
redemption of shares or the reinvestment of dividends may not be available
through such firms. Firms may arrange with their clients for other investment
or administrative services. Such firms may independently establish and charge
additional amounts to their clients for such services. Firms also may hold a
fund's shares in nominee or street name as agent for and on behalf of their
customers. In such instances, the Shareholder Service Agent will have no
information with respect to or control over the accounts of specific
shareholders. Such shareholders may obtain access to their accounts and
information about their accounts only from their firm. Certain of these firms
may receive compensation from a fund through the Shareholder Service Agent for
record-keeping and other expenses relating to these nominee accounts. Some
firms may participate in a program allowing them access to their clients'
accounts for servicing including, without limitation, transfers of registration
and dividend payee changes; and may perform functions such as generation of
confirmation statements and disbursement of cash dividends. Such firms,
including affiliates of DIDI, may receive compensation from a fund through the
Shareholder Service Agent for these services.
A fund has authorized one or more financial service institutions, including
certain members of the Financial Industry Regulatory Authority (FINRA) other
than DIDI (financial institutions), to accept purchase and redemption orders
for a fund's shares. Such financial institutions may also designate other
parties, including plan administrator intermediaries, to accept purchase and
redemption orders on a fund's behalf. Orders for purchases or redemptions will
be deemed to have been received by a fund when such financial institutions or,
if applicable, their authorized designees accept the orders. Subject to the
terms of the contract between a fund and the financial institution, ordinarily
orders will be priced at a fund's net asset value next computed after
acceptance by such financial institution or its authorized designees. Further,
if purchases or redemptions of a fund's shares are arranged and settlement is
made at an investor's election through any other authorized financial
institution, that financial institution may, at its discretion, charge a fee
for that service.
TAX-SHELTERED RETIREMENT PLANS. The Shareholder Service Agent and DIDI provide
retirement plan services and documents and can establish investor accounts in
any of the following types of retirement plans:
o Traditional, Roth and Education IRAs. This includes Savings Incentive
Match Plan for Employees of Small Employers (SIMPLE), Simplified Employee
Pension Plan (SEP) IRA accounts and prototype documents.
o 403(b)(7) Custodial Accounts. This type of plan is available to employees
of most non-profit organizations.
o Prototype money purchase pension and profit-sharing plans may be adopted
by employers.
Materials describing these plans as well as model defined benefit plans, target
benefit plans, 457 plans, 401(k) plans, simple 401(k) plans and materials for
establishing them are available from the Shareholder Service Agent upon
request. DIDI may pay commissions to dealers and other financial services firms
in connection with shares sold to retirement plans. For further information
about such compensation, see Compensation Schedules #1 and #2 as set forth in
PART II - APPENDIX II-D. Additional fees and transaction policies and
procedures may apply to such plans. Certain funds investing in municipal
securities may not be appropriate for such Tax-Sheltered Retirement Plans.
Investors should consult their own tax advisors before establishing a
retirement plan.
PURCHASES
A fund may offer only certain of the classes of shares referred to in the
subsections below. Thus, the information provided below in regard to the
purchase of certain classes of shares is only applicable to funds offering such
classes of shares. For information regarding purchases of shares of DWS
Variable Series I, DWS Variable Series II and DWS Investments VIT Funds, please
see VARIABLE
II-16
INSURANCE FUNDS below. For information regarding purchases of money market
funds, please see MONEY MARKET FUNDS below.
PURCHASE OF CLASS A SHARES. The public offering price of Class A shares is the
net asset value plus a sales charge based on investment amount, as set forth in
the relevant prospectus and the "Class A Sales Charge Schedule" set forth in
PART II - APPENDIX II-F.
CLASS A SHARES REDUCED SALES CHARGES
QUANTITY DISCOUNTS. An investor or the investor's dealer or other financial
services firm must notify the Shareholder Service Agent or DIDI whenever a
quantity discount or reduced sales charge is applicable to a purchase. In order
to qualify for a lower sales charge, all orders from an organized group will
have to be placed through a single dealer or other firm and identified as
originating from a qualifying purchaser.
COMBINED PURCHASES. A fund's Class A shares may be purchased at the rate
applicable to the sales charge discount bracket attained by combining same day
investments in Class A shares of any DWS funds that bear a sales charge.
CUMULATIVE DISCOUNT. Class A shares of a fund may also be purchased at the rate
applicable to the discount bracket attained by adding to the cost of shares
being purchased, the value of all Class A shares of DWS funds that bear a sales
charge (computed at the maximum offering price at the time of the purchase for
which the discount is applicable) already owned by the investor or his or her
immediate family member (including the investor's spouse or life partner and
children or stepchildren age 21 or younger).
LETTER OF INTENT. The reduced sales charges for Class A shares, as shown in the
relevant prospectus and the "Class A Sales Charge Schedule" set forth in PART
II - APPENDIX II-F, also apply to the aggregate amount of purchases of Class A
shares of DWS funds that bear a sales charge made by any purchaser within a
24-month period under a written Letter of Intent (Letter) provided to DIDI. The
Letter, which imposes no obligation to purchase or sell additional Class A
shares, provides for a price adjustment depending upon the actual amount
purchased within such period. The Letter provides that the first purchase
following execution of the Letter must be at least 5% of the amount of the
intended purchase, and that 5% of the amount of the intended purchase normally
will be held in escrow in the form of shares pending completion of the intended
purchase. If the total investments under the Letter are less than the intended
amount and thereby qualify only for a higher sales charge than actually paid,
the appropriate number of escrowed shares are redeemed and the proceeds used
toward satisfaction of the obligation to pay the increased sales charge. The
Letter for an employer-sponsored employee benefit plan maintained on the
subaccount record keeping system available through ADP, Inc. (or ExpertPlan for
Flex Plans) under an alliance between ADP, Inc. (or ExpertPlan for Flex Plans)
and DIDI and its affiliates may have special provisions regarding payment of
any increased sales charge resulting from a failure to complete the intended
purchase under the Letter. A shareholder may include the value (at the maximum
offering price, which is determined by adding the maximum applicable sales load
charged to the net asset value) of all Class A shares of such DWS funds held of
record as of the initial purchase date under the Letter as an "accumulation
credit" toward the completion of the Letter, but no price adjustment will be
made on such shares.
RETIREMENT PLANS ON FLEX SYSTEM. For purposes of the Combined Purchases,
Cumulative Discount and Letter of Intent features described above,
employer-sponsored employee benefit plans using the Flex subaccount record
keeping system available through ExpertPlan under an alliance with DIDI and its
affiliates may include: (a) Money Market funds as "DWS funds," (b) all classes
of shares of any DWS fund and (c) the value of any other plan investments, such
as guaranteed investment contracts and employer stock, maintained on such
subaccount record keeping system.
CLASS A NAV SALES. Class A shares may be sold at net asset value without a
sales charge to:
(1) a current or former director or trustee of Deutsche or DWS mutual funds;
(2) an employee (including the employee's spouse or life partner and
children or stepchildren age 21 or younger) of Deutsche Bank AG or its
affiliates or of a subadvisor to any fund in the DWS family of funds or
of a broker-dealer authorized to sell shares of a fund or service agents
of a fund;
(3) certain professionals who assist in the promotion of DWS funds pursuant
to personal services contracts with DIDI, for themselves or immediate
members of their families;
II-17
(4) any trust, pension, profit-sharing or other benefit plan for only such
persons listed under the preceding paragraphs (1) and (2);
(5) persons who purchase such shares through bank trust departments that
process such trades through an automated, integrated mutual fund
clearing program provided by a third party clearing firm;
(6) selected employees (including their spouses or life partners and
children or stepchildren age 21 or younger) of banks and other financial
services firms that provide administrative services related to order
placement and payment to facilitate transactions in shares of a fund for
their clients pursuant to an agreement with DIDI or one of its
affiliates. Only those employees of such banks and other firms who as
part of their usual duties provide services related to transactions in
fund shares qualify;
(7) unit investment trusts sponsored by Ranson & Associates, Inc. and
unitholders of unit investment trusts sponsored by Ranson & Associates,
Inc. or its predecessors through reinvestment programs described in the
prospectuses of such trusts that have such programs;
(8) persons who purchase such shares through certain investment advisors
registered under the Investment Advisers Act of 1940 and other financial
services firms acting solely as agent for their clients, that adhere to
certain standards established by DIDI, including a requirement that such
shares be sold for the benefit of their clients participating in an
investment advisory program or agency commission program under which
such clients pay a fee to the investment advisor or other firm for
portfolio management or agency brokerage services. Such shares are sold
for investment purposes and on the condition that they will not be
resold except through redemption or repurchase by a fund;
(9) financial service firms that have entered into an agreement with DIDI to
offer Class A shares through a no-load network, platform or
self-directed brokerage account that may or may not charge transaction
fees to their clients;
(10) employer-sponsored employee benefit plans using the Flex subaccount
recordkeeping system (Flex Plans) made available through ExpertPlan
under an alliance with DIDI and its affiliates, established prior to
October 1, 2003, provided that the Flex Plan is a participant-directed
plan that has not less than 200 eligible employees;
(11) investors investing $1 million or more ($250,000 or more for DWS
Alternative Asset Allocation Fund, DWS California Tax-Free Income Fund,
DWS Diversified Market Neutral Fund, DWS Global Growth Fund, DWS GNMA
Fund, DWS Intermediate Tax/AMT Free Fund, DWS Large Cap Value Fund, DWS
Managed Municipal Bond Fund, DWS Massachusetts Tax-Free Fund, DWS New
York Tax-Free Income Fund, DWS Short-Term Municipal Bond Fund, DWS Short
Duration Fund, DWS Strategic High Yield Tax-Free Fund, DWS Select
Alternative Allocation Fund, DWS Strategic Government Securities Fund,
DWS Unconstrained Income Fund and DWS Ultra-Short Duration Fund), either
as a lump sum or through the Combined Purchases, Letter of Intent and
Cumulative Discount features referred to above (collectively, the Large
Order NAV Purchase Privilege). The Large Order NAV Purchase Privilege is
not available if another net asset value purchase privilege is
available;
(12) defined contribution investment only plans with a minimum of $1 million
in plan assets regardless of the amount allocated to the DWS funds;
In addition, Class A shares may be sold at net asset value without a sales
charge in connection with:
(13) the acquisition of assets or merger or consolidation with another
investment company, and under other circumstances deemed appropriate by
DIDI and consistent with regulatory requirements;
(14) a direct "roll over" of a distribution from a Flex Plan or from
participants in employer sponsored employee benefit plans maintained on
the OmniPlus subaccount record keeping system made available through
ADP, Inc. under an alliance between ADP, Inc. and DIDI and its
affiliates into a DWS Investments IRA;
(15) reinvestment of fund dividends and distributions; and
(16) exchanging an investment in Class A shares of another fund in the DWS
family of funds for an investment in a fund.
II-18
Class A shares also may be purchased at net asset value without a sales charge
in any amount by members of the plaintiff class in the proceeding known as
Howard and Audrey Tabankin, et al. v. Kemper Short-Term Global Income Fund, et
al., Case No. 93 C 5231 (N.D. IL). This privilege is generally non-transferable
and continues for the lifetime of individual class members and has expired for
non-individual class members. To make a purchase at net asset value under this
privilege, the investor must, at the time of purchase, submit a written request
that the purchase be processed at net asset value pursuant to this privilege
specifically identifying the purchaser as a member of the "Tabankin Class."
Shares purchased under this privilege will be maintained in a separate account
that includes only shares purchased under this privilege. For more details
concerning this privilege, class members should refer to the Notice of (i)
Proposed Settlement with Defendants; and (ii) Hearing to Determine Fairness of
Proposed Settlement, dated August 31, 1995, issued in connection with the
aforementioned court proceeding. For sales of fund shares at net asset value
pursuant to this privilege, DIDI may in its discretion pay dealers and other
financial services firms a concession, payable quarterly, at an annual rate of
up to 0.25% of net assets attributable to such shares maintained and serviced
by the firm. A firm becomes eligible for the concession based upon assets in
accounts attributable to shares purchased under this privilege in the month
after the month of purchase and the concession continues until terminated by
DIDI. The privilege of purchasing Class A shares of a fund at net asset value
under this privilege is not available if another net asset value purchase
privilege also applies.
PURCHASE OF CLASS B SHARES. Class B shares of a fund are offered at net asset
value. No initial sales charge is imposed, which allows the full amount of the
investor's purchase payment to be invested in Class B shares for his or her
account. Class B shares are subject to a contingent deferred sales charge of
4.00% that declines over time (for shares sold within six years of purchase)
and Rule 12b-1 fees, as described in the relevant prospectus (see the
discussion of Rule 12b-1 Plans under Distribution and Service Agreements and
Plans below). Class B shares automatically convert to Class A shares after six
years.
As described in the prospectus, Class B shares are closed to new purchases,
except for exchanges and the reinvestment of dividends or other distributions.
PURCHASE OF CLASS C SHARES. Class C shares of a fund are offered at net asset
value. No initial sales charge is imposed, which allows the full amount of the
investor's purchase payment to be invested in Class C shares for his or her
account. Class C shares are subject to a contingent deferred sales charge of
1.00% (for shares sold within one year of purchase) and Rule 12b-1 fees, as
described in the relevant prospectus (see the discussion of Rule 12b-1 Plans
under Distribution and Service Agreements and Plans below).
PURCHASE OF CLASS R SHARES. Class R shares of a fund are offered at net asset
value. No initial sales charge is imposed, which allows the full amount of the
investor's purchase payment to be invested in Class R shares for his or her
account. Class R shares are subject to Rule 12b-1 fees, as described in the
relevant prospectus (see the discussion of Rule 12b-1 Plans under Distribution
and Service Agreements and Plans below).
The Shareholder Service Agent monitors transactions in Class R shares to help
to ensure that investors purchasing Class R shares meet the eligibility
requirements described in the prospectus. If the Shareholder Service Agent is
unable to verify that an investor meets the eligibility requirements for Class
R, either following receipt of a completed application form within time frames
established by a fund or as part of its ongoing monitoring, the Shareholder
Service Agent may take corrective action up to and including canceling the
purchase order or redeeming the account.
PURCHASE OF INSTITUTIONAL CLASS SHARES. Institutional Class shares of a fund
are offered at net asset value without a sales charge to certain eligible
investors as described in the section entitled "Buying and Selling Shares" in a
fund's prospectus.
Investors may invest in Institutional Class shares by setting up an account
directly with the Shareholder Service Agent or through an authorized service
agent. Investors who establish shareholder accounts directly with the
Shareholder Service Agent should submit purchase and redemption orders as
described in the relevant prospectus.
PURCHASE OF CLASS S. Class S shares are generally only available to new
investors through fee-based programs of investment dealers that have special
agreements with a fund's distributor, through certain group retirement plans
and through certain registered investment advisors. These dealers and advisors
typically charge ongoing fees for services they provide.
MULTI-CLASS SUITABILITY FOR CLASSES A, B AND C. DIDI has established the
following procedures regarding the purchase of Class A, Class B and Class C
shares. Orders
II-19
to purchase Class B shares of $100,000 or more and orders to purchase Class C
shares of $500,000 or more (certain funds have a $250,000 maximum for Class C
purchases, see the applicable fund's prospectus) will be declined with the
exception of orders received from financial representatives acting for clients
whose shares are held in an omnibus account and employer-sponsored employee
benefit plans using the subaccount record keeping system (System) maintained
for DWS Investments-branded plans on record keeping systems made available
through ExpertPlan under an alliance between ExpertPlan and DIDI and its
affiliates (DWS Investments Flex Plans). The foregoing Class C order limit of
$500,000 or more is $250,000 or more for the certain funds, see the relevant
prospectus for additional information.
The following provisions apply to DWS Investments Flex Plans.
(1) Class B Share DWS Investments Flex Plans. Class B shares have not been
sold to DWS Investments Flex Plans that were established on the System
after October 1, 2003. Orders to purchase Class B shares for a DWS
Investments Flex Plan established on the System prior to October 1, 2003
that has regularly been purchasing Class B shares will be invested
instead in Class A shares at net asset value when the combined
subaccount value in DWS funds or other eligible assets held by the plan
is $100,000 or more. This provision will be imposed for the first
purchase after eligible plan assets reach the $100,000 threshold. A
later decline in assets below the $100,000 threshold will not affect the
plan's ability to continue to purchase Class A shares at net asset
value.
(2) Class C Share DWS Investments Flex Plans. Orders to purchase Class C
shares for a DWS Investments Flex Plan, regardless of when such plan was
established on the System, will be invested instead in Class A shares at
net asset value when the combined subaccount value in DWS funds or other
eligible assets held by the plan is $1,000,000 or more. This provision
will be imposed for the first purchase after eligible plan assets reach
the $1,000,000 threshold. A later decline in assets below the $1,000,000
threshold will not affect the plan's ability to continue to purchase
Class A shares at net asset value.
The procedures described above do not reflect in any way the suitability of a
particular class of shares for a particular investor and should not be relied
upon as such. A suitability determination must be made by investors with the
assistance of their financial representative.
PURCHASE PRIVILEGES FOR DWS AFFILIATED INDIVIDUALS. Current or former Board
members of the DWS funds, employees, their spouses or life partners and
children or step-children age 21 or younger, of Deutsche Bank AG or its
affiliates or a sub-adviser to any DWS fund or a broker-dealer authorized to
sell shares of a fund are generally eligible to purchase shares in the class of
a fund with the lowest expense ratio, usually the Institutional Class shares.
If a fund does not offer Institutional Class shares, these individuals are
eligible to buy Class A shares at NAV. Each fund also reserves the right to
waive the minimum account balance requirement for employee and director
accounts. Fees generally charged to IRA accounts will be charged to accounts of
employees and directors.
MONEY MARKET FUNDS. Shares of a fund are sold at net asset value directly from
a fund or through selected financial services firms, such as broker-dealers and
banks. Each fund seeks to have its investment portfolio as fully invested as
possible at all times in order to achieve maximum income. Since each fund will
be investing in instruments that normally require immediate payment in Federal
Funds (monies credited to a bank's account with its regional Federal Reserve
Bank), as described in the applicable prospectus, each fund has adopted
procedures for the convenience of its shareholders and to ensure that each fund
receives investable funds.
VARIABLE INSURANCE FUNDS. Shares of DWS Variable Series I, DWS Variable Series
II and DWS Investments VIT Funds are continuously offered to separate accounts
of participating insurance companies at the net asset value per share next
determined after a proper purchase request has been received by the insurance
company. The insurance companies offer to variable annuity and variable life
insurance contract owners units in its separate accounts which directly
correspond to shares in a fund. Each insurance company submits purchase and
redemption orders to a fund based on allocation instructions for premium
payments, transfer instructions and surrender or partial withdrawal requests
which are furnished to the insurance company by such contract owners. Contract
owners can send such instructions and requests to the insurance companies in
accordance with
II-20
procedures set forth in the prospectus for the applicable variable insurance
product offered by the insurance company.
PURCHASES IN-KIND. This section is applicable only to the following funds: DWS
Global High Income Fund, DWS Mid Cap Growth Fund, DWS Small Cap Growth Fund,
DWS Equity 500 Index VIP and DWS Small Cap Index VIP. A fund may, at its own
option, accept securities in payment for shares. The securities delivered in
payment for shares are valued by the method described under "Net Asset Value"
as of the day a fund receives the securities. This is a taxable transaction to
the shareholder. Securities may be accepted in payment for shares only if they
are, in the judgment of the Advisor, appropriate investments for a fund. In
addition, securities accepted in payment for shares must: (i) meet the
investment objective and policies of the acquiring fund; (ii) be acquired by
the applicable fund for investment and not for resale; (iii) be liquid
securities which are not restricted as to transfer either by law or liquidity
of market; and (iv) if stock, have a value which is readily ascertainable as
evidenced by a listing on a stock exchange, over-the-counter market or by
readily available market quotations from a dealer in such securities. The
shareholder will be charged the costs associated with receiving or delivering
the securities. These costs include security movement costs and taxes and
registration costs. A fund reserves the right to accept or reject at its own
option any and all securities offered in payment for its shares.
REDEMPTIONS
A fund may offer only certain of the classes of shares referred to in the
subsections below. Thus, the information provided below in regard to the
redemption of certain classes of shares is only applicable to funds offering
such classes of shares. Please consult the prospectus for the availability of
these redemption features for a specific fund. In addition, the information
provided below does not apply to contract holders in variable insurance
products. Contract owners should consult their contract prospectuses for
applicable redemption procedures.
A request for repurchase (confirmed redemption) may be communicated by a
shareholder through a financial services firm to DIDI, which firms must
promptly submit orders to be effective.
Redemption requests must be unconditional. Redemption requests (and a stock
power for certificated shares) must be duly endorsed by the account holder. As
specified in the relevant prospectus, signatures may need to be guaranteed by a
commercial bank, trust company, savings and loan association, federal savings
bank, member firm of a national securities exchange or other financial
institution permitted by SEC rule. DWS accepts Medallion Signature Guarantees.
Additional documentation may be required, particularly from institutional and
fiduciary account holders, such as corporations, custodians (e.g., under the
Uniform Transfers to Minors Act), executors, administrators, trustees or
guardians.
WIRES. The ability to send wires is limited by the business hours and holidays
of the firms involved. A fund is not responsible for the efficiency of the
federal wire system or the account holder's financial services firm or bank.
The account holder is responsible for any charges imposed by the account
holder's firm or bank. To change the designated account to receive wire
redemption proceeds, send a written request to the Shareholder Service Agent
with signatures guaranteed as described above or contact the firm through which
fund shares were purchased.
SYSTEMATIC WITHDRAWAL PLAN. An owner of $5,000 or more of a class of a fund's
shares at the offering price (net asset value plus, in the case of Class A
shares, the initial sales charge) may provide for the payment from the owner's
account of any requested dollar amount to be paid to the owner or a designated
payee monthly, quarterly, semiannually or annually pursuant to a Systematic
Withdrawal Plan (the "Plan"). The $5,000 minimum account size is not applicable
to IRAs. The minimum periodic payment is $50. The maximum annual rate at which
shares subject to CDSC may be redeemed without the imposition of the CDSC is
12% of the net asset value of the account.
Non-retirement plan shareholders may establish a Plan to receive monthly,
quarterly or periodic redemptions from his or her account for any designated
amount of $50 or more. Shareholders may designate which day they want the
systematic withdrawal to be processed. If a day is not designated, the
withdrawal will be processed on the 25th day of the month to that the payee
should receive payment approximately on the first of the month. The check
amounts may be based on the redemption of a fixed dollar amount, fixed share
amount, percent of account value or declining balance. The Plan provides for
income dividends and capital gains distributions, if any, to be reinvested in
additional shares. Shares are then liquidated as necessary to provide for
withdrawal payments. Since the withdrawals are in amounts selected by the
investor and have no relationship to yield or income, payments received cannot
be considered as yield or income on the investment and the resulting
liquidations may deplete or possibly extinguish the initial investment
II-21
and any reinvested dividends and capital gains distributions. Any such requests
must be received by the Shareholder Service Agent ten days prior to the date of
the first systematic withdrawal. A Plan may be terminated at any time by the
shareholder, the Trust or its agent on written notice, and will be terminated
when all fund shares under the Plan have been liquidated or upon receipt by the
Trust of notice of death of the shareholder.
The purchase of Class A shares while participating in a Plan will ordinarily be
disadvantageous to the investor because the investor will be paying a sales
charge on the purchase of shares at the same time that the investor is
redeeming shares upon which a sales charge may have already been paid.
Therefore, an investor should consider carefully whether to make additional
investments in Class A shares if the investor is at the same time making
systematic withdrawals.
CONTINGENT DEFERRED SALES CHARGE (CDSC). The following example will illustrate
the operation of the CDSC for Class A (when applicable), Class B and Class C
shares, to the extent applicable. Assume that an investor makes a single
purchase of $10,000 of a fund's Class B shares and that 16 months later the
value of the shares has grown by $1,000 through reinvested dividends and by an
additional $1,000 of share appreciation to a total of $12,000. If the investor
were then to redeem the entire $12,000 in share value, the CDSC would be
payable only with respect to $10,000 because neither the $1,000 of reinvested
dividends nor the $1,000 of share appreciation is subject to the charge. The
charge would be at the rate of 3.00% ($300) because the redemption was in the
second year after the purchase was made.
The rate of the CDSC is determined by the length of the period of ownership.
Investments are tracked on a monthly basis. The period of ownership for this
purpose begins the first day of the month in which the order for the investment
is received. For example, an investment made in March of the year of investment
will be eligible for the second year's charge if redeemed on or after the first
day of March of the following year. In the event no specific order is requested
when redeeming shares subject to a CDSC, the redemption will be made first from
shares representing reinvested dividends and then from the earliest purchase of
shares. DIDI receives any CDSC directly. The CDSC will not be imposed upon
redemption of reinvested dividends or share appreciation.
The Class A CDSC for shares purchased through the Large Order NAV Purchase
Privilege will be waived in the event of:
(1) redemptions by a participant-directed qualified retirement plan
described in Internal Revenue Code (Code) Section 401(a), a
participant-directed non-qualified deferred compensation plan described
in Code Section 457 or a participant-directed qualified retirement plan
described in Code Section 403(b)(7) which is not sponsored by a K-12
school district;
(2) redemptions by employer-sponsored employee benefit plans using the
subaccount record keeping system made available through ADP, Inc. (or
ExpertPlan for Flex Plans) under an alliance between ADP, Inc. (or
ExpertPlan for Flex Plans) and DIDI and its affiliates;
(3) redemption of shares of a shareholder (including a registered joint
owner) who has died;
(4) redemption of shares of a shareholder (including a registered joint
owner) who after purchase of the shares being redeemed becomes totally
disabled (as evidenced by a determination by the federal Social Security
Administration);
(5) redemptions under a fund's Systematic Withdrawal Plan at a maximum of
12% per year of the net asset value of the account;
(6) redemptions for certain loan advances, hardship provisions or returns of
excess contributions from retirement plans; and
(7) for shares purchased prior to February 1, 2011, redemptions of shares
whose dealer of record at the time of the investment notified DIDI that
the dealer waived the discretionary commission applicable to such Large
Order NAV Purchase.
The Class B CDSC will be waived for the circumstances set forth in items (3),
(4), (5) and (6) above for Class A shares. In addition, this CDSC will be
waived:
(a) for redemptions made pursuant to any IRA systematic withdrawal based
on the shareholder's life expectancy including, but not limited to,
substantially equal periodic payments described in Code Section
72(t)(2)(A)(iv) prior to age 59 1/2;
(b) for redemptions to satisfy required minimum distributions after age
70 1/2 from an IRA account (with the maximum amount subject to this
waiver being based only upon the shareholder's DWS Investments IRA
accounts); and
II-22
(c) in connection with the following redemptions of shares held by
employer-sponsored employee benefit plans maintained on the
subaccount record keeping system made available by ADP, Inc. under
an alliance between ADP, Inc. and DIDI and its affiliates: (1) to
satisfy participant loan advances (note that loan repayments
constitute new purchases for purposes of the CDSC and the conversion
privilege), (2) in connection with retirement distributions (limited
at any one time to 12% of the total value of plan assets invested in
a fund), (3) in connection with distributions qualifying under the
hardship provisions of the Code, (4) representing returns of excess
contributions to such plans and (5) in connection with direct "roll
over" distributions from a Flex Plan into a DWS Investments IRA
under the Class A net asset value purchase privilege.
The Class C CDSC will be waived for the circumstances set forth in items (2),
(3), (4), (5) and (7) above for Class A shares and for the circumstances set
forth in items (a) and (b) above for Class B shares. In addition, this CDSC
will be waived for:
(i) redemption of shares by an employer-sponsored employee benefit plan
that offers funds in addition to DWS funds and whose dealer of
record has waived the advance of the first year administrative
service and distribution fees applicable to such shares and agrees
to receive such fees quarterly; and
(ii) redemption of shares purchased through a dealer-sponsored asset
allocation program maintained on an omnibus record-keeping system
provided the dealer of record had waived the advance of the first year
administrative services and distribution fees applicable to such
shares and has agreed to receive such fees quarterly.
REDEMPTIONS IN-KIND. A fund reserves the right to honor any request for
redemption or repurchase by making payment in whole or in part in readily
marketable securities. These securities will be chosen by a fund and valued as
they are for purposes of computing a fund's net asset value. A shareholder may
incur transaction expenses in converting these securities to cash. Please see
the prospectus for any requirements that may be applicable to certain funds to
provide cash up to certain amounts. For the following funds, this right may
only be exercised upon the consent of the shareholder: Money Market Portfolio
and Government & Agency Securities Portfolio, each a series of Cash Account
Trust; Cash Reserves Fund Institutional and DWS Money Market Series, each a
series of DWS Money Market Trust; and Treasury Portfolio and DWS Variable NAV
Money Fund, each a series of Investors Cash Trust.
CHECKWRITING (applicable to DWS Short Duration Fund, DWS Intermediate Tax/AMT
Free Fund and DWS Massachusetts Tax-Free Fund only). The Checkwriting Privilege
is not offered to new investors. The Checkwriting Privilege is available for
shareholders of DWS Intermediate Tax/AMT Free Fund and DWS Short Term Bond Fund
(which was acquired by DWS Short Duration Fund) who previously elected this
privilege prior to August 19, 2002, and to shareholders of DWS Massachusetts
Tax-Free Fund who were shareholders of the Scudder Massachusetts Limited Term
Tax Free Fund prior to July 31, 2000. Checks may be used to pay any person,
provided that each check is for at least $100 and not more than $5 million. By
using the checks, the shareholder will receive daily dividend credit on his or
her shares until the check has cleared the banking system. Investors who
purchased shares by check may write checks against those shares only after they
have been on a fund's book for 10 calendar days. Shareholders who use this
service may also use other redemption procedures. No shareholder may write
checks against certificated shares. A fund pays the bank charges for this
service. However, each fund will review the cost of operation periodically and
reserve the right to determine if direct charges to the persons who avail
themselves of this service would be appropriate. Each fund, State Street Bank
and Trust Company and the Transfer Agent reserve the right at any time to
suspend or terminate the Checkwriting procedure.
MONEY MARKET FUNDS ONLY
The following sections relate to certain Money Market Funds. Please consult the
prospectus for the availability of these redemption features for a specific
fund.
REDEMPTION BY CHECK/ACH DEBIT DISCLOSURE. A fund will accept Automated Clearing
House (ACH) debit entries for accounts that have elected the checkwriting
redemption privilege (see Redemptions by Draft below). Please consult the
prospectus for the availability of the checkwriting privilege for a specific
fund. An example of an ACH debit is a transaction in which you have given your
insurance company, mortgage company, credit card company, utility company,
health club, etc., the right to withdraw your monthly payment from your fund
account or the right to convert your mailed check into an ACH debit. Sometimes,
you may give a merchant from whom you wish to purchase goods the right to
convert your check to an ACH debit. You may also authorize a third party to
initiate an individual payment in a specific amount
II-23
from your account by providing your account information and authorization to
such third party via the Internet or telephone. You authorize a fund upon
receipt of an ACH debit entry referencing your account number, to redeem fund
shares in your account to pay the entry to the third party originating the
debit. A fund will make the payment on the basis of the account number that you
provide to your merchant and will not compare this account number with the name
on the account. A fund, the Shareholder Service Agent or any other person or
system handling the transaction are not required to determine if there is a
discrepancy between the name and the account number shown on the transfer
instructions.
The payment of any ACH debit entry will be subject to sufficient funds being
available in the designated account; a fund will not be able to honor an ACH
debit entry if sufficient funds are not available. ACH debit entry transactions
to your fund account should not be initiated or authorized by you in amounts
exceeding the amount of Shares of a fund then in the account and available for
redemption. A fund may refuse to honor ACH debit entry transactions whenever
the right of redemption has been suspended or postponed, or whenever the
account is otherwise impaired. Your fund account statement will show any ACH
debit entries in your account; you will not receive any other separate notice.
(Merchants are permitted to convert your checks into ACH debits only with your
prior consent.)
You may authorize payment of a specific amount to be made from your account
directly by a fund to third parties on a continuing periodic basis. To arrange
for this service, you should contact the person or company you will be paying.
Any preauthorized transfers will be subject to sufficient funds being available
in the designated account. A preauthorized transfer will continue to be made
from the account in the same amount and frequency as initially established
until you terminate the preauthorized transfer instructions with the person or
company whom you have been paying. If regular preauthorized payments may vary
in amount, the person or company you are going to pay should tell you ten (10)
days before each payment will be made and how much the payment will be. If you
have told a fund in advance to make regular payments out of your account, you
may stop any of these payments by writing or calling the Shareholder Service
Agent at the address and telephone number listed in the next paragraph in time
for the Shareholder Service Agent to receive your request three (3) business
days or more before the payment is scheduled to be made. If you call, a fund
may also require that you put your request in writing so that a fund will
receive it within 14 days after you call. If you order a fund to stop one of
these payments three (3) business days or more before the transfer is scheduled
and a fund does not do so, a fund will be liable for your loss or damages but
not in an amount exceeding the amount of the payment. A stop payment order will
stop only the designated periodic payment. If you wish to terminate the
periodic preauthorized transfers, you should do so with the person or company
to whom you have been making payments.
IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR ACH DEBIT ENTRY TRANSACTIONS please
telephone (see telephone number on front cover) or write (DWS Investments
Service Company, P.O. Box 219151, Kansas City, MO 64121-9151) the Shareholder
Service Agent as soon as possible if you think your statement is wrong or shows
an improper transfer or if you need more information about a transfer listed on
the statement. Our business days are Monday through Friday except holidays. The
Shareholder Service Agent must hear from you no later than 60 days after a fund
sent you the first fund account statement on which the problem or error
appeared. If you do not notify the Shareholder Service Agent within sixty (60)
days after a fund sends you the account statement, you may not get back any
money you have lost, and you may not get back any additional money you lose
after the sixty (60) days if a fund or the Shareholder Service Agent could have
stopped someone from taking that money if you had notified the Shareholder
Service Agent in time.
Tell us your name and account number, describe the error or the transfer you
are unsure about, and explain why you believe it is an error or why you need
more information. Tell us the dollar amount of the suspected error. If you tell
the Shareholder Service Agent orally, the Shareholder Service Agent may require
that you send your complaint or questions in writing within ten (10) business
days. The Shareholder Service Agent will determine whether an error occurred
within ten (10) business days after it hears from you and will correct any
error promptly. If the Shareholder Service Agent needs more time, however, it
may take up to 45 days (90 days for certain types of transactions) to
investigate your complaint or question. If the Shareholder Service Agent
decides to do this, your account will be credited with escrowed fund shares
within ten (10) business days for the amount you think is in error so that you
will have the use of the money during the time it takes the Shareholder Service
Agent to complete its investigation. If the Shareholder Service Agent asks you
to put your complaint or questions in writing and the Shareholder Service Agent
does not receive it within ten (10) business days, your account may not be
credited. The Shareholder Service Agent will tell you the results within three
(3) business days after
II-24
completing its investigation. If the Shareholder Service Agent determines that
there was no error, the Shareholder Service Agent will send you a written
explanation. You may ask for copies of documents that were used by the
Shareholder Service Agent in the investigation.
In the event a fund or the Shareholder Service Agent does not complete a
transfer from your account on time or in the correct amount according to a
fund's agreement with you, a fund may be liable for your losses or damages. A
fund will not be liable to you if (i) there are not sufficient funds available
in your account, (ii) circumstances beyond our control (such as fire or flood
or malfunction of equipment) prevent the transfer, (iii) you or another
shareholder have supplied a merchant with incorrect account information, or
(iv) a merchant has incorrectly formulated an ACH debit entry. In any case, a
fund's liability shall not exceed the amount of the transfer in question.
A fund or the Shareholder Service Agent will disclose information to third
parties about your account or the transfers you make: (1) where it is necessary
for completing the transfers, (2) in order to verify the existence or condition
of your account for a third party such as a credit bureau or a merchant, (3) in
order to comply with government agencies or court orders or (4) if you have
given a fund written permission.
The acceptance and processing of ACH debit entry transactions is established
solely for your convenience and a fund reserves the right to suspend, terminate
or modify your ability to redeem fund shares by ACH debit entry transactions at
any time. ACH debit entry transactions are governed by the rules of the
National Automated Clearing House Association (NACHA) Operating Rules and any
local ACH operating rules then in effect, as well as Regulation E of the
Federal Reserve Board.
REDEMPTIONS BY DRAFT. Upon request, shareholders of certain Money Market Funds
will be provided with drafts to be drawn on a fund (Redemption Checks). Please
consult the prospectus for the availability of the checkwriting redemption
privilege for a specific Money Market Fund. These Redemption Checks may be made
payable to the order of any person for not more than $5 million. When a
Redemption Check is presented for payment, a sufficient number of full and
fractional shares in the shareholder's account will be redeemed as of the next
determined net asset value to cover the amount of the Redemption Check. This
will enable the shareholder to continue earning dividends until a fund receives
the Redemption Check. A shareholder wishing to use this method of redemption
must complete and file an Account Application which is available from a fund or
firms through which shares were purchased. Redemption Checks should not be used
to close an account since the account normally includes accrued but unpaid
dividends. A fund reserves the right to terminate or modify this privilege at
any time. This privilege may not be available through some firms that
distribute shares of a fund. In addition, firms may impose minimum balance
requirements in order to offer this feature. Firms may also impose fees to
investors for this privilege or establish variations of minimum check amounts.
Unless more than one signature is required pursuant to the Account Application,
only one signature will be required on Redemption Checks. Any change in the
signature authorization must be made by written notice to the Shareholder
Service Agent. Shares purchased by check or through certain ACH transactions
may not be redeemed by Redemption Check until the shares have been on a fund's
books for at least 10 days. Shareholders may not use this procedure to redeem
shares held in certificate form. A fund reserves the right to terminate or
modify this privilege at any time.
A fund may refuse to honor Redemption Checks whenever the right of redemption
has been suspended or postponed, or whenever the account is otherwise impaired.
A $10 service fee will be charged when a Redemption Check is presented to
redeem fund shares in excess of the value of a fund account or in an amount
less than the minimum Redemption Check amount specified in the prospectus; when
a Redemption Check is presented that would require redemption of shares that
were purchased by check or certain ACH transactions within 10 days; or when
"stop payment" of a Redemption Check is requested.
SPECIAL REDEMPTION FEATURES. Certain firms that offer Shares of the Money
Market Funds also provide special redemption features through charge or debit
cards and checks that redeem fund shares. Various firms have different charges
for their services. Shareholders should obtain information from their firm with
respect to any special redemption features, applicable charges, minimum balance
requirements and special rules of the cash management program being offered.
EXCHANGES
The exchange features may not be available to all funds. Please consult the
prospectus for the availability of exchanges for a specific fund. A fund may
offer only certain of the classes of shares referred to in the subsections
below. Thus, the information provided below in regard
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to the exchange of certain classes of shares is only applicable to funds
offering such classes of shares. In addition, the information provided below
does not apply to contract holders in variable insurance products. Contract
holders should consult their contract prospectuses for applicable exchange
procedures.
GENERAL. Shareholders may request a taxable exchange of their shares for shares
of the corresponding class of other DWS funds without imposition of a sales
charge, subject to the provisions below. If you exchange shares that have a
CDSC, the CDSC is not imposed on the exchange; however, the later redemption of
the acquired shares would be subject to the CDSC schedule of the acquired fund
(which, for Class A shares only, may differ from the schedule for a fund you
are exchanging out of), based on original cost and purchase date of the shares
you exchanged out of.
Shareholders who exchange their shares out of a DWS money market fund into
Class A shares of certain other DWS funds will generally be subject to the
applicable sales charge (not including shares acquired by dividend reinvestment
or by exchange from Class A shares of another DWS fund).
Certain DWS funds may not be available to shareholders on an exchange. To learn
more about which DWS funds may be available on exchange, please contact your
financial services firm or visit our Web site at: dws-investments.com (the Web
site does not form a part of this Statement of Additional Information) or call
DWS Investments (see telephone number on front cover).
Shareholders must obtain prospectus(es) of the DWS fund they are exchanging
into from dealers, other firms or DIDI.
MULTI-CLASS CONVERSIONS. For purposes of conversion to Class A shares, shares
purchased through the reinvestment of dividends and other distributions paid
with respect to Class B shares in a shareholder's fund account will be
converted to Class A shares on a pro rata basis.
EXCHANGES INVOLVING INSTITUTIONAL SHARES. The following persons may, subject to
certain limitations, exchange the DWS Money Market Fund shares of DWS Money
Market Prime Series, for shares of the institutional class of other DWS funds,
and may exchange shares of the institutional class of other DWS funds for DWS
Money Market Fund shares: (1) a current or former director or trustee of the
Deutsche or DWS mutual funds; and (2) an employee, the employee's spouse or
life partner and children or stepchildren age 21 or younger of Deutsche Bank or
its affiliates or a subadvisor to any fund in the DWS family of funds or a
broker-dealer authorized to sell shares of a fund.
COMPENSATION OF FINANCIAL INTERMEDIARIES
INCENTIVE PLAN FOR DWS INVESTMENTS DISTRIBUTORS PERSONNEL. DIDI has adopted an
Incentive Plan (Plan) covering wholesalers that are regional vice presidents
(DWS Investments Wholesalers). Generally, DWS Investments Wholesalers market
shares of the DWS funds to financial advisors, who in turn may recommend that
investors purchase shares of a DWS fund. The Plan is an incentive program that
combines a monthly incentive component with an annual outperformance award
potential, based on achieving certain sales and other performance metrics.
Under the Plan, DWS Investments Wholesalers will receive a monetary monthly
incentive based on the amount of sales generated from their marketing of the
funds, and that incentive will differ depending on the product tier of a fund.
Each fund is assigned to one of four product tiers - Tier I: cornerstone or
capital market compass funds; Tier II: core or baseline funds; Tier III:
non-core funds; and Tier IV: index or passive funds - taking into
consideration, among other things, the following criteria, where applicable:
o a fund's consistency with DWS Investments' branding and long-term
strategy
o a fund's competitive performance
o a fund's Morningstar rating
o The length of time a fund's Portfolio Managers have managed a
fund/Strategy
o Market size for the fund tier
o a fund's size, including sales and redemptions of a fund's shares
This information and other factors are presented to a senior management
committee comprised of representatives from various groups within DWS
Investments, who review on a regular basis the funds assigned to each product
tier described above, and may make changes to those assignments periodically.
No one factor, whether positive or negative, determines a fund's placement in a
given product tier; all these factors together are considered, and the
designation of funds in a particular tier represents management's judgment
based on the above criteria. In addition, management may consider a
II-26
fund's profile over the course of several review periods before making a change
to its tier assignment. These tier assignments will be posted quarterly to the
DWS funds' Web site at dws-investments.com/EN/wholesaler-compensation.jsp,
approximately one month after the end of each quarter. DWS Investments
Wholesalers receive the highest compensation for Tier I funds, successively
less for Tier II (within which there are two payout sub-tiers) and Tier III
funds, and the lowest for Tier IV funds. The level of compensation among these
product tiers may differ significantly.
In the normal course of business, DWS Investments will from time to time
introduce new funds into the DWS family of funds. As a general rule, new funds
will be assigned to the product tier that is most appropriate to the type of
fund at the time of its launch based on the criteria described above. As
described above, the fund tier assignments are reviewed periodically and are
subject to change.
The prospect of receiving, or the receipt of, additional compensation by a DWS
Investments Wholesaler under the Plan may provide an incentive to favor
marketing funds in higher payout tiers over funds in lower payout tiers. The
Plan, however, will not change the price that investors pay for shares of a
fund. The DWS Investments Compliance Department monitors DWS Investments
Wholesaler sales and other activity in an effort to detect unusual activity in
the context of the compensation structure under the Plan. However, investors
may wish to take the Plan and the product tier of the fund into account when
considering purchasing a fund or evaluating any recommendations relating to
fund shares.
FINANCIAL SERVICES FIRMS' COMPENSATION. DIDI may pay compensation to financial
intermediaries in connection with the sale of fund shares as described in PART
II - APPENDIX II-D. In addition, financial intermediaries may receive
compensation for post-sale administrative services from DIDI or directly from a
fund as described in PART II - APPENDIX II-D.
COMPENSATION FOR RECORDKEEPING SERVICES. Certain financial institutions,
including affiliates of DIDI, may receive compensation from a fund for
recordkeeping and other expenses relating to nominee accounts or for providing
certain services to their client accounts. Generally, payments by a fund to
financial institutions for providing such services are not expected to exceed
0.25% of shareholder assets for which such services are provided. Normally,
compensation for these financial institutions is paid by the Transfer Agent,
which is in turn reimbursed by the applicable fund. To the extent that record
keeping compensation in excess of the amount reimbursed by a fund is owed to a
financial institution, the Transfer Agent, Distributor or Advisor may pay
compensation from their own resources (see Financial Intermediary Support
Payments below).
COMPENSATION FOR RECORDKEEPING SERVICES: VARIABLE INSURANCE FUNDS. Technically,
the shareholders of DWS Variable Series I, DWS Variable Series II and DWS
Investments VIT Funds are the participating insurance companies that offer
shares of the funds as investment options for holders of certain variable
annuity contracts and variable life insurance policies. Effectively, ownership
of fund shares is passed through to insurance company contract and policy
holders. The holders of the shares of a fund on the records of a fund are the
insurance companies and no information concerning fund holdings of specific
contract and policy holders is maintained by a fund. The insurance companies
place orders for the purchase and redemption of fund shares with a fund
reflecting the investment of premiums paid, surrender and transfer requests and
other matters on a net basis; they maintain all records of the transactions and
holdings of fund shares and distributions thereon for individual contract and
policy holders; and they prepare and mail to contract and policy holders
confirmations and periodic account statements reflecting such transactions and
holdings.
A fund may compensate certain insurance companies for record keeping and other
administrative services performed with regard to holdings of Class B shares as
an expense of the Class B shares up to 0.15%. These fees are included within
the "Other Expenses" category in the fee table for each portfolio in the Class
B Shares Prospectus (see How Much Investors Pay in the applicable fund's
prospectus). In addition, the Advisor may, from time to time, pay from its own
resources certain insurance companies for record keeping and other
administrative services related to Class A and Class B shares of the Portfolios
held by such insurance companies on behalf of their contract and policy holders
(see Financial Intermediary Support Payments below).
FINANCIAL INTERMEDIARY SUPPORT PAYMENTS. In light of recent regulatory
developments, the Advisor, the Distributor and their affiliates have undertaken
to furnish certain additional information below regarding the level of payments
made by them to selected affiliated and unaffiliated brokers, dealers,
participating insurance companies or other financial intermediaries (financial
advisors) in connection with the sale and/or distribution of fund shares or the
retention and/or servicing of investors and fund shares (revenue sharing).
II-27
The Advisor, the Distributor and/or their affiliates may pay additional
compensation, out of their own assets and not as an additional charge to each
fund, to financial advisors in connection with the sale and/or distribution of
fund shares or the retention and/or servicing of fund investors and fund
shares. Such revenue sharing payments are in addition to any distribution or
service fees payable under any Rule 12b-1 or service plan of any fund, any
record keeping/sub-transfer agency/networking fees payable by each fund
(generally through the Distributor or an affiliate) and/or the Distributor or
Advisor to certain financial advisors for performing such services and any
sales charges, commissions, non-cash compensation arrangements expressly
permitted under applicable rules of FINRA or other concessions described in the
fee table or elsewhere in the prospectuses or the SAI as payable to all
financial advisors. For example, the Advisor, the Distributor and/or their
affiliates may compensate financial advisors for providing each fund with
"shelf space" or access to a third party platform or fund offering list, or
other marketing programs including, without limitation, inclusion of each fund
on preferred or recommended sales lists, mutual fund "supermarket" platforms
and other formal sales programs; granting the Distributor access to the
financial advisor's sales force; granting the Distributor access to the
financial advisor's conferences and meetings; assistance in training and
educating the financial advisor's personnel; and, obtaining other forms of
marketing support. The level of revenue sharing payments made to financial
advisors may be a fixed fee or based upon one or more of the following factors:
gross sales, current assets and/or number of accounts of each fund attributable
to the financial advisor, the particular fund or fund type or other measures as
agreed to by the Advisor, the Distributor and/or their affiliates and the
financial advisors or any combination thereof. The amount of these payments is
determined at the discretion of the Advisor, the Distributor and/or their
affiliates from time to time, may be substantial, and may be different for
different financial advisors based on, for example, the nature of the services
provided by the financial advisor.
The Advisor, the Distributor and/or their affiliates currently make revenue
sharing payments from their own assets in connection with the sale and/or
distribution of DWS fund shares, or the retention and/or servicing of
investors, to financial advisors in amounts that generally range from 0.01% up
to 0.56% of assets of a fund serviced and maintained by the financial advisor,
0.05% to 0.25% of sales of a fund attributable to the financial advisor, a flat
fee of up to $60,000, or any combination thereof. These amounts are annual
figures typically paid on a quarterly basis and are subject to change at the
discretion of the Advisor, the Distributor and/or their affiliates. Receipt of,
or the prospect of receiving, this additional compensation, may influence your
financial advisor's recommendation of a fund or of any particular share class
of a fund. You should review your financial advisor's compensation disclosure
and/or talk to your financial advisor to obtain more information on how this
compensation may have influenced your financial advisor's recommendation of a
fund.
The Advisor, the Distributor and/or their affiliates may also make such revenue
sharing payments to financial advisors under the terms discussed above in
connection with the distribution of both DWS funds and non-DWS funds by
financial advisors to retirement plans that obtain record keeping services from
ADP, Inc. or ExpertPlan, Inc. on the DWS Investments branded retirement plan
platform (the "Platform") with the level of revenue sharing payments being
based upon sales of both the DWS funds and the non-DWS funds by the financial
advisor on the Platform or current assets of both the DWS funds and the non-DWS
funds serviced and maintained by the financial advisor on the Platform.
As of the date hereof, each fund has been advised that the Advisor, the
Distributor and their affiliates expect that the firms listed in PART II -
APPENDIX II-E will receive revenue sharing payments at different points during
the coming year as described above.
The Advisor, the Distributor or their affiliates may enter into additional
revenue sharing arrangements or change or discontinue existing arrangements
with financial advisors at any time without notice.
The prospect of receiving, or the receipt of additional compensation or
promotional incentives described above by financial advisors may provide such
financial advisors and/or their salespersons with an incentive to favor sales
of shares of the DWS funds or a particular DWS fund over sales of shares of
mutual funds (or non-mutual fund investments) with respect to which the
financial advisor does not receive additional compensation or promotional
incentives, or receives lower levels of additional compensation or promotional
incentives. Similarly, financial advisors may receive different compensation or
incentives that may influence their recommendation of any particular share
class of a fund or of other funds. These payment arrangements, however, will
not change the price that an investor pays for fund shares or the amount that a
fund receives to invest on behalf of an investor and will not increase fund
expenses. You may wish to take
II-28
such payment arrangements into account when considering and evaluating any
recommendations relating to fund shares and you should discuss this matter with
your financial advisor and review your financial advisor's disclosures.
It is likely that broker-dealers that execute portfolio transactions for a fund
will include firms that also sell shares of the DWS funds to their customers.
However, the Advisor will not consider sales of DWS fund shares as a factor in
the selection of broker-dealers to execute portfolio transactions for the DWS
funds. Accordingly, the Advisor has implemented policies and procedures
reasonably designed to prevent its traders from considering sales of DWS fund
shares as a factor in the selection of broker-dealers to execute portfolio
transactions for a fund. In addition, the Advisor, the Distributor and/or their
affiliates will not use fund brokerage to pay for their obligation to provide
additional compensation to financial advisors as described above.
DIVIDENDS (FOR ALL FUNDS EXCEPT MONEY FUNDS). A fund, other than a money fund,
intends to distribute, at least annually: (i) substantially all of its
investment company taxable income (computed without regard to the
dividends-paid deduction), which includes generally taxable ordinary income and
any excess of net realized short-term capital gains over net realized long-term
capital losses, and net tax-exempt income, if any; and (ii) the entire excess
of net realized long-term capital gains over net realized short-term capital
losses. However, if a fund determines that it is in the interest of its
shareholders, a fund may decide to retain all or part of its net realized
long-term capital gains for reinvestment, after paying the related federal
taxes. In such a case, shareholders will be treated for federal income tax
purposes as having received their share of such gains, but will then generally
be able to claim a credit against their federal income tax liability for the
federal income tax a fund pays on such gain. If a fund does not distribute the
amount of ordinary income and/or capital gain required to be distributed by an
excise tax provision of the Code, a fund may be subject to that excise tax on
the undistributed amounts. In certain circumstances, a fund may determine that
it is in the interest of shareholders to distribute less than the required
amount.
A fund has a schedule for paying out any earnings to shareholders (see
Understanding Distributions and Taxes in each fund's prospectus). Additional
distributions may also be made in November or December (or treated as made on
December 31) if necessary to avoid an excise tax imposed under the Code.
Any dividends or capital gains distributions declared in October, November or
December with a record date in such a month and paid during the following
January will be treated by shareholders for federal income tax purposes as if
received on December 31 of the calendar year declared.
Dividends paid by a fund with respect to each class of its shares will be
calculated in the same manner, at the same time and on the same day.
The level of income dividends per share (as a percentage of net asset value)
will be lower for Class B and C shares than for other share classes primarily
as a result of the distribution services fee applicable to Class B and C
shares. Distributions of capital gains, if any, will be paid in the same amount
for each class.
Income dividends and capital gain dividends (see Taxation of US Shareholders -
Dividends and Distributions), if any, of a fund will be credited to shareholder
accounts in full and fractional shares of the same class of that fund at net
asset value on the reinvestment date, unless shareholders indicate to the
Shareholder Service Agent, that they wish to receive them in cash or in shares
of other DWS funds as provided in the fund's prospectus. Shareholders must
maintain the required minimum account balance in the fund distributing the
dividends in order to use this privilege of investing dividends of a fund in
shares of another DWS fund. A fund will reinvest dividend checks (and future
dividends) in shares of that same fund and class if checks are returned as
undeliverable. Dividends and other distributions of a fund in the aggregate
amount of $10 or less are automatically reinvested in shares of that fund and
class unless the shareholder requests that a check be issued for that
particular distribution. Shareholders who chose to receive distributions by
electronic transfer are not subject to this minimum.
Generally, if a shareholder has elected to reinvest any dividends and/or other
distributions, such distributions will be made in shares of that fund and
confirmations will be mailed to each shareholder. If a shareholder has chosen
to receive cash, a check will be sent. Distributions of investment company
taxable income and net realized capital gains are generally taxable, whether
made in shares or cash.
With respect to variable insurance products, all distributions will be
reinvested in shares of a fund unless we are informed by an insurance company
that they should be paid out in cash. The insurance companies will be
II-29
informed about the amount and character of distributions from the relevant fund
for federal income tax purposes.
Each distribution is accompanied by a brief explanation of the form and
character of the distribution. The characterization of distributions on such
correspondence may differ from the characterization for federal income tax
purposes. Early each year, a fund issues to each shareholder a statement of the
federal income tax status of all distributions in the prior calendar year.
A fund may at any time vary its foregoing distribution practices and,
therefore, reserves the right from time to time to either distribute or retain
for reinvestment such of its net investment income and its net short-term and
net long-term capital gains as its Board determines appropriate under the
then-current circumstances. In particular, and without limiting the foregoing,
a fund may make additional distributions of net investment income or net
realized capital gain in order to satisfy the minimum distribution requirements
contained in the Code.
DIVIDENDS (MONEY FUNDS). Dividends are declared daily and paid monthly.
Shareholders will receive dividends in additional shares unless they elect to
receive cash, as provided in a fund's prospectus. Dividends will be reinvested
monthly in shares of a fund at net asset value. A fund will pay shareholders
that redeem their entire accounts all unpaid dividends at the time of the
redemption not later than the next dividend payment date.
Each money fund calculates its dividends based on its daily net investment
income. For this purpose, the net investment income of a money fund generally
consists of (a) accrued interest income plus or minus amortized discount or
premium, (b) plus or minus all short-term realized gains and losses on
investments and (c) minus accrued expenses allocated to the applicable fund.
Expenses of each money fund are accrued each day. Dividends are reinvested
monthly and shareholders will receive monthly confirmations of dividends and of
purchase and redemption transactions except that confirmations of dividend
reinvestment for Individual Retirement Accounts and other fiduciary accounts
for which SSB acts as trustee will be sent quarterly.
Distributions of a fund's net realized long-term capital gains in excess of net
realized short-term capital losses, if any, and any undistributed net realized
short-term capital gains in excess of net realized long-term capital losses are
normally declared and paid annually at the end of the fiscal year in which they
were earned to the extent they are not offset by any capital loss
carryforwards.
If the shareholder elects to receive dividends or distributions in cash, checks
will be mailed monthly, within five business days of the reinvestment date, to
the shareholder or any person designated by the shareholder. A fund reinvests
dividend checks (and future dividends) in shares of a fund if checks are
returned as undeliverable. Dividends and other distributions in the aggregate
amount of $10 or less are automatically reinvested in shares of a fund unless
the shareholder requests that a check be issued for that particular
distribution. Shareholders who chose to receive distributions by electronic
transfer are not subject to this minimum.
Dividends and distributions are treated the same for federal income tax
purposes, whether made in shares or cash.
DISTRIBUTION AND SERVICE AGREEMENTS AND PLANS
For information regarding distribution and service agreements and plans for
retail funds, see I. RETAIL FUNDS below.
For information regarding distribution and service agreements and plans for
money market funds, see II. MONEY MARKET FUNDS below.
For information regarding distribution and service agreements and plans for
variable insurance funds, see III. DWS VARIABLE SERIES I AND DWS VARIABLE
SERIES II; and IV. DWS INVESTMENTS VIT FUNDS below.
I. RETAIL FUNDS
A fund may offer only certain of the classes of shares referred to in the
subsections below. Thus, the information provided below in regard to certain
classes of shares is only applicable to funds offering such classes of shares.
RULE 12B-1 PLANS. Certain funds, as described in the applicable prospectuses,
have adopted plans pursuant to Rule 12b-1 under the 1940 Act (each a Rule 12b-1
Plan) on behalf of their Class A, B, C and R shares, as applicable, that
authorize payments out of class assets for distribution and/or shareholder and
administrative services as described in more detail below. Because Rule 12b-1
fees are paid out of class assets on an ongoing basis, they will, over time,
increase the cost of an investment and may cost more than other types of sales
charges.
II-30
Rule 12b-1 Plans provide alternative methods for paying sales charges and
provide compensation to DIDI or intermediaries for post-sale servicing, which
may help funds grow or maintain asset levels to provide operational
efficiencies and economies of scale. Each Rule 12b-1 Plan is approved and
reviewed separately for each applicable class in accordance with Rule 12b-1
under the 1940 Act, which regulates the manner in which an investment company
may, directly or indirectly, bear the expenses of distributing its shares. A
Rule 12b-1 Plan may not be amended to increase the fee to be paid by a fund
with respect to a class without approval by a majority of the outstanding
voting securities of such class.
If a Rule 12b-1 Plan is terminated in accordance with its terms, the obligation
of the applicable class to make payments to DIDI pursuant to the Rule 12b-1
Plan will cease and a fund will not be required to make any payments not
previously accrued past the termination date. Thus, there is no legal
obligation for a class to pay any expenses incurred by DIDI other than fees
previously accrued and payable under a Rule 12b-1 Plan, if for any reason the
Rule 12b-1 Plan is terminated in accordance with its terms. Because the Rule
12b-1 Plans are compensation plans, future fees under a Rule 12b-1 Plan may or
may not be sufficient to cover DIDI for its expenses incurred. On the other
hand, under certain circumstances, DIDI might collect in the aggregate over
certain periods more in fees under the applicable Rule 12b-1 Plan than it has
expended over that same period in providing distribution services for a fund.
For example, if Class B shares of a fund were to appreciate (resulting in
greater asset base against which Rule 12b-1 fees are charged) and sales of a
fund's Class B shares were to decline (resulting in lower expenditures by DIDI
under the Rule 12b-1 Plan), fees payable could exceed expenditures. Similarly,
fees paid to DIDI could exceed DIDI's expenditures over certain periods shorter
than the life of the Rule 12b-1 Plan simply due to the timing of expenses
incurred by DIDI that is not matched to the timing of revenues received (e.g.,
a sales commission may be paid by DIDI related to an investment in Class B
shares in year 1, while the Rule 12b-1 fee to DIDI related to that investment
may accrue during year 1 through year 6 prior to conversion of the Class B
shares investment to Class A shares). Under these or other circumstances where
DIDI's expenses are less than the Rule 12b-1 fees, DIDI will retain its full
fees and make a profit.
CLASS B, CLASS C AND CLASS R SHARES
FEES FOR DISTRIBUTION SERVICES. For its services under the Distribution
Agreement, DIDI receives a fee from a fund under its Rule 12b-1 Plan, payable
monthly, at the annual rate of 0.75% of average daily net assets of a fund
attributable to its Class B shares. This fee is accrued daily as an expense of
Class B shares. Under the Distribution Agreement, DIDI also receives any
contingent deferred sales charges paid with respect to Class B shares. DIDI
currently compensates firms for sales of Class B shares at a commission rate of
3.75%.
For its services under the Distribution Agreement, DIDI receives a fee from a
fund under its Rule 12b-1 Plan, payable monthly, at the annual rate of 0.75% of
average daily net assets of a fund attributable to Class C shares. This fee is
accrued daily as an expense of Class C shares. DIDI currently advances to firms
the first year distribution fee at a rate of 0.75% of the purchase price of
Class C shares. DIDI does not advance the first year distribution fee to firms
for sales of Class C shares to employer-sponsored employee benefit plans using
the OmniPlus subaccount record keeping system made available through ADP, Inc.
under an alliance between ADP, Inc. and DIDI and its affiliates. For periods
after the first year, DIDI currently pays firms for sales of Class C shares a
distribution fee, payable quarterly, at an annual rate of 0.75% of net assets
attributable to Class C shares maintained and serviced by the firm. This fee
continues until terminated by DIDI or the applicable fund. Under the
Distribution Agreement, DIDI also receives any contingent deferred sales
charges paid with respect to Class C shares.
For its services under the Distribution Agreement, DIDI receives a fee from a
fund under its Rule 12b-1 Plan, payable monthly, at the annual rate of 0.25% of
average daily net assets of a fund attributable to Class R shares. This fee is
accrued daily as an expense of Class R shares. DIDI currently pays firms for
sales of Class R shares a distribution fee, payable quarterly, at an annual
rate of 0.25% of net assets attributable to Class R shares maintained and
serviced by the firm. This fee continues until terminated by DIDI or the
applicable fund.
CLASS A, CLASS B, CLASS C AND CLASS R SHARES
FEES FOR SHAREHOLDER SERVICES. For its services under the Services Agreement,
DIDI receives a shareholder services fee from a fund under a Rule 12b-1 Plan,
payable monthly, at an annual rate of up to 0.25% of the average daily net
assets of Class A, B, C and R shares of a fund, as applicable.
With respect to Class A and Class R Shares of a fund, DIDI pays each firm a
service fee, payable quarterly, at an annual rate of up to 0.25% of the net
assets in fund accounts that it maintains and services attributable to Class A
and Class R Shares of a fund, generally
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commencing with the month after investment (for Class A shares) and immediately
after investment (for Class R shares). With respect to Class B and Class C
Shares of a fund, DIDI currently advances to firms the first-year service fee
at a rate of up to 0.25% of the purchase price of such shares. DIDI does not
advance the first year service fee to firms attributable to Class C shares to
employer-sponsored employee benefit plans using the OmniPlus subaccount record
keeping system made available through ADP, Inc. under an alliance between ADP,
Inc. and DIDI and its affiliates. For periods after the first year, DIDI
currently intends to pay firms a service fee at a rate of up to 0.25%
(calculated monthly and paid quarterly) of the net assets attributable to Class
B and Class C shares of a fund maintained and serviced by the firm.
Firms to which service fees may be paid include affiliates of DIDI. In addition
DIDI may, from time to time, pay certain firms from its own resources
additional amounts for ongoing administrative services and assistance provided
to their customers and clients who are shareholders of a fund.
DIDI also may provide some of the above services and may retain any portion of
the fee under the Services Agreement not paid to firms to compensate itself for
shareholder or administrative functions performed for a fund. Currently, the
shareholder services fee payable to DIDI is payable at an annual rate of up to
0.25% of net assets based upon fund assets in accounts for which a firm
provides administrative services and at the annual rate of 0.15% of net assets
based upon fund assets in accounts for which there is no firm of record (other
than DIDI) listed on a fund's records. The effective shareholder services fee
rate to be charged against all assets of each fund while this procedure is in
effect will depend upon the proportion of fund assets that is held in accounts
for which a firm of record provides shareholder services. The Board of each
fund, in its discretion, may approve basing the fee to DIDI at the annual rate
of 0.25% on all fund assets in the future.
II. MONEY MARKET FUNDS (EXCEPT DWS CASH INVESTMENT TRUST CLASS A, B AND C
SHARES, WHICH ARE ADDRESSED UNDER RETAIL FUNDS ABOVE)
RULE 12B-1 PLANS. Certain Money Market Funds have adopted for certain classes
of shares a plan pursuant to Rule 12b-1 under the 1940 Act (each a Rule 12b-1
Plan) that provides for fees payable as an expense of the class that are used
by DIDI to pay for distribution services for those classes. Additionally, in
accordance with the Rule 12b-1 Plan for certain classes, shareholder and
administrative services are provided to the applicable fund for the benefit of
the relevant classes under a fund's Services Agreement with DIDI. With respect
to certain classes, shareholder and administrative services may be provided
outside of a Rule 12b-1 Plan either by DIDI pursuant to the Services Agreement
or by financial services firms under a Shareholder Services Plan. Because Rule
12b-1 fees are paid out of fund assets on an ongoing basis, they will, over
time, increase the cost of an investment and may cost more than other types of
sales charges.
The Rule 12b-1 Plans provide alternative methods for paying for distribution
services and provide compensation to DIDI or financial services firms for
post-sales servicing, which may help funds grow or maintain asset levels to
provide operational efficiencies and economies of scale. Each Rule 12b-1 Plan
is approved and reviewed separately for each such class in accordance with Rule
12b-1 under the 1940 Act, which regulates the manner in which an investment
company may, directly or indirectly, bear the expenses of distributing its
shares. A Rule 12b-1 Plan may not be amended to increase the fee to be paid by
a fund with respect to a class without approval by a majority of the
outstanding voting securities of such class of a fund.
If a Rule 12b-1 Plan is terminated in accordance with its terms, the obligation
of the applicable fund to make payments to DIDI pursuant to the Rule 12b-1 Plan
will cease and a fund will not be required to make any payments not previously
accrued past the termination date. Thus, there is no legal obligation for a
fund to pay any expenses incurred by DIDI other than fees previously accrued
and payable under a Rule 12b-1 Plan, if for any reason the Rule 12b-1 Plan is
terminated in accordance with its terms. Because the Rule 12b-1 Plans are
compensation plans, future fees under a Rule 12b-1 Plan may or may not be
sufficient to cover DIDI for its expenses incurred. On the other hand, under
certain circumstances, DIDI might collect in the aggregate over certain periods
more in fees under the applicable Rule 12b-1 Plan than it has expended over
that same period.
DISTRIBUTION AND SHAREHOLDER SERVICES
Service Shares - Cash Account Trust. The Distribution Agreement authorizes the
fund to pay DIDI, as an expense of the Service Shares classes of the Money
Market Portfolio, the Government & Agency Securities Portfolio and the
Tax-Exempt Portfolio of Cash Account Trust, a distribution services fee,
payable monthly, at an annual rate of 0.60% of average daily net assets of the
Service Shares of the applicable fund. This fee is paid pursuant to a Rule
12b-1 Plan. DIDI normally pays firms a fee for
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distribution and administrative services, payable monthly, at a maximum annual
rate of up to 0.60% of average daily net assets of Service Shares held in
accounts that they maintain and service.
Premier Shares - Tax-Exempt California Money Market Fund. The Distribution
Agreement authorizes the fund to pay DIDI, as an expense of the Premier Shares
class of the Tax-Exempt California Money Market Fund, a distribution services
fee, payable monthly, at an annual rate of 0.33% of average daily net assets of
the Premier Shares of the fund. This fee is paid pursuant to a Rule 12b-1 Plan.
DIDI normally pays firms a fee for distribution and administrative services,
payable monthly, at a maximum annual rate of up to 0.33% of average daily net
assets of Premier Shares held in accounts that they maintain and service.
Tax-Exempt New York Money Market Fund - NY Tax Free Money Fund. The
Distribution Agreement authorizes the fund to pay DIDI, as an expense of
Tax-Exempt New York Money Market Fund shares, a class of NY Tax Free Money
fund, a series of DWS Money Market Trust, a distribution services fee, payable
monthly, at an annual rate of 0.50% of average daily net assets of the
Tax-Exempt New York Money Market Fund shares of the fund. This fee is paid
pursuant to a Rule 12b-1 Plan. DIDI normally pays firms a fee for distribution
and administrative services, payable monthly, at a maximum annual rate of up to
0.50% of average daily net assets of Tax-Exempt New York Money Market Fund
shares held in accounts that they maintain and service.
Premium Reserve Money Market Shares - Cash Account Trust. The Services
Agreement authorizes the fund to pay DIDI, as an expense of the Premium Reserve
Money Market Shares class of the Money Market Portfolio of Cash Account Trust,
an administrative service fee, payable monthly, at an annual rate of 0.25% of
average daily net assets of the Premium Reserve Money Market Shares of the
fund. A portion of this administrative service fee (0.10% of the 0.25% fee) is
paid pursuant to a Rule 12b-1 Plan. The Premium Money Market Reserve Shares pay
the full amount authorized by the Plan as part of its 0.25% administrative
service rate. DIDI normally pays firms a fee for administrative services,
payable monthly, at a maximum annual rate of up to 0.25% of average daily net
assets of Premium Reserve Money Market Shares held in accounts that they
maintain and service.
Premier Money Market Shares - Investors Cash Trust. The Distribution Agreement
authorizes a fund to pay DIDI, as an expense of the Premier Money Market Shares
class of the Treasury Portfolio of Investors Cash Trust, a distribution
services fee, payable monthly, at an annual rate of 0.25% of average daily net
assets of the Premier Money Market Shares of the fund. This fee is paid
pursuant to a Rule 12b-1 Plan. DIDI normally pays firms a fee for distribution
services, payable monthly, at a maximum annual rate of up to 0.25% of average
daily net assets of Premier Money Market Shares held in accounts that they
maintain and service. The Services Agreement authorizes a fund to pay DIDI, as
an expense of the Premier Money Market Shares of the fund, an administrative
service fee, payable monthly, at an annual rate of 0.25% of average daily net
assets of the Premier Money Market Shares of the fund. This administrative
service fee is not paid pursuant to a Rule 12b-1 Plan. DIDI normally pays firms
a fee for administrative services, payable monthly, at a maximum annual rate of
up to 0.25% of average daily net assets of Premier Money Market Shares held in
accounts that they maintain and service.
Davidson Cash Equivalent Shares - Cash Account Trust. The Distribution
Agreement authorizes a fund to pay DIDI, as an expense of the Davidson Cash
Equivalent Shares and the Davidson Cash Equivalent Plus Shares classes of the
Money Market Portfolio, the Government & Agency Securities Portfolio and the
Tax-Exempt Portfolio of Cash Account Trust, a distribution services fee,
payable monthly, at an annual rate of 0.30% in the case of the Davidson Cash
Equivalent Shares and 0.25% in the case of the Davidson Cash Equivalent Plus
Shares of average daily net assets of the applicable class of a fund. This fee
is paid pursuant to a Rule 12b-1 Plan. DIDI normally pays the sole
sub-distributor for the classes, D.A. Davidson & Co., a fee for distribution
services, payable monthly, at a maximum annual rate of up to 0.30% of average
daily net assets of those accounts in the Davidson Cash Equivalent Shares that
it maintains and services and 0.25% of average daily net assets in the case of
those accounts in the Davidson Cash Equivalent Plus Shares that it maintains
and services. The Services Agreement authorizes a fund to pay DIDI, as an
expense of the aforementioned classes, an administrative service fee, payable
monthly, at an annual rate of 0.25% in the case of the Davidson Cash Equivalent
Shares and 0.25% (currently limited to 0.20%) in the case of the Davidson Cash
Equivalent Plus Shares of average daily net assets of those shares of a fund.
This administrative service fee is not paid pursuant to a Rule 12b-1 Plan. DIDI
normally pays the sole sub-distributor a fee for administrative services,
payable monthly, at a maximum annual rate of up to 0.25% of average daily net
assets of those accounts in the Davidson Cash Equivalent Shares that it
maintains and services and 0.20% of average daily net assets in the case of
those accounts in the Davidson Cash
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Equivalent Plus Shares that it maintains and services. The Davidson Cash
Equivalent Plus Shares class is limited to the Money Market Portfolio and the
Government & Agency Securities Portfolio.
Capital Assets Funds - Cash Account Trust. The Distribution Agreement
authorizes a fund to pay DIDI, as an expense of the Capital Assets Funds
Shares, the Government & Agency Securities Portfolio and the Tax-Exempt
Portfolio of Cash Account Trust, a distribution services fee, payable monthly,
at an annual rate of 0.33% of average daily net assets of the Capital Assets
Funds Shares of the applicable fund. This fee is paid pursuant to a Rule 12b-1
Plan. DIDI normally pays the sole sub-distributor for the classes, Apex
Clearing Corporation, a fee for distribution services, payable monthly, at a
maximum annual rate of up to 0.33% of average daily net assets of those
accounts in the Capital Assets Funds Shares that it maintains and services. The
Services Agreement authorizes a fund to pay DIDI, as an expense of the
aforementioned classes, an administrative service fee, payable monthly, at an
annual rate of 0.25% of average daily net assets of the Capital Assets Funds
Shares of the applicable fund. This administrative service fee is not paid
pursuant to a Rule 12b-1 Plan. DIDI normally pays the sole sub-distributor a
fee for administrative services, payable monthly, at a maximum annual rate of
up to 0.25% of average daily net assets of those accounts in the Capital Assets
Funds Shares that it maintains and services.
Managed Shares - Cash Account Trust. The Services Agreement currently
authorizes a fund to pay DIDI, as an expense of the Government Cash Managed
Shares class of the Government & Agency Securities Portfolio of Cash Account
Trust and the Tax-Exempt Cash Managed Shares class of the Tax-Exempt Portfolio
of Cash Account Trust, an administrative service fee, payable monthly, at an
annual rate of 0.15% of average daily net assets of the Managed Shares of a
fund. This fee is paid pursuant to a Rule 12b-1 Plan. The Rule 12b-1 Plan for
the Tax-Exempt Cash Managed Shares class authorizes the payment of up to 0.25%
of average daily net assets of the class and, at the discretion of the Board,
the administrative service fee may be increased from the current level to a
maximum of 0.25% of average daily net assets. The Rule 12b-1 Plan for the
Government Cash Managed Shares class authorizes the payment of up to 0.15% of
average daily net assets of the class. DIDI normally pays firms a fee for
administrative services, payable monthly, at a maximum annual rate of up to
0.15% of average daily net assets of Managed Shares held in accounts that they
maintain and service.
Institutional Shares - Investors Cash Trust. The Services Agreement authorizes
each fund to pay DIDI, as an expense of the Institutional Shares class of the
Treasury Portfolio and DWS Variable NAV Money Fund, each a series of Investors
Cash Trust, an administrative service fee, payable monthly, at an annual rate
of 0.05% of average daily net assets of the Institutional Shares of the fund,
which may be increased to 0.10% for the Institutional Shares of the Treasury
Portfolio at the discretion of the Board. DIDI normally pays firms a fee for
administrative services, payable monthly, at a maximum annual rate of up to
0.05% of average daily net assets of Institutional Shares held in accounts that
they maintain and service.
Tax-Free Investment Class - Cash Account Trust and Investment Class - Investors
Cash Trust. The Distribution Agreement authorizes a fund to pay DIDI, as an
expense of the Tax-Free Investment Class of the Tax-Exempt Portfolio of Cash
Account Trust and the Investment Class of the Treasury Portfolio of Investors
Cash Trust (collectively, Investment Class), a distribution services fee,
payable monthly, at an annual rate of 0.25% of average daily net assets of the
Investment Class shares of the applicable fund. This fee is paid pursuant to a
Rule 12b-1 Plan. DIDI normally pays firms a fee for distribution services,
payable monthly, at a maximum annual rate of up to 0.25% of average daily net
assets of shares of the Investment Class held in accounts that they maintain
and service. The Services Agreement authorizes a fund to pay DIDI, as an
expense of the Investment Class of the aforementioned funds, an administrative
service fee, payable monthly, at an annual rate of 0.07% of average daily net
assets of the Investment Class shares of the applicable fund. This
administrative service fee is not paid pursuant to Rule 12b-1 Plan. DIDI
normally pays firms a fee for administrative services, payable monthly, at a
maximum annual rate of up to 0.07% of average daily net assets of shares of the
Investment Class held in accounts that they maintain and service.
Cash Reserve Prime Shares - Cash Reserve Fund, Inc. The Distribution Agreement
authorizes the fund to pay DIDI, as an expense of the Cash Reserve Prime Shares
class of the Prime Series of Cash Reserve Fund Inc., a distribution services
fee, payable monthly, at an annual rate of 0.25% of average daily net assets of
the Cash Reserve Prime Shares of the fund. This fee is paid pursuant to a Rule
12b-1 Plan. DIDI normally pays firms a fee for distribution services, payable
monthly, at a maximum annual rate of up to 0.25% of average daily net assets of
shares of the Cash Reserve Prime Shares held in accounts that they maintain and
service. The Distribution Agreement also authorizes the fund to pay DIDI,
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as an expense of the Cash Reserve Prime Shares, an administrative service fee,
payable monthly, at an annual rate of 0.07% of average daily net assets of the
Cash Reserve Prime Shares of the fund. This administrative service fee is not
paid pursuant to a Rule 12b-1 Plan. DIDI normally pays firms a fee for
administrative services, payable monthly, at a maximum annual rate of up to
0.07% of average daily net assets of shares of the Cash Reserve Prime Shares
held in accounts that they maintain and service.
Managed Shares - Cash Reserve Fund, Inc. The Services Agreement authorizes the
fund to pay DIDI, as an expense of the Managed Shares class of the Prime Series
of Cash Reserve Fund, Inc., an administrative service fee, payable monthly, at
an annual rate of 0.15% of average daily net assets of the Managed Shares of
the fund. This fee is paid pursuant to a Rule 12b-1 Plan. DIDI normally pays
firms a fee for administrative services, payable monthly, at a maximum annual
rate of up to 0.15% of average daily net assets of Managed Shares held in
accounts that they maintain and service.
Shareholder Services Plan for Cash Management Fund - Institutional Class, Cash
Reserves Fund Institutional - Institutional Class, NY Tax Free Money Fund -
Investment Class and Tax-Free Money Fund - Investment Shares, each a series and
class of DWS Money Market Trust. Each fund has adopted for the classes
specified (Class) a shareholder service plan (Plan). Under the Plan, which is
not a Rule 12b-1 Plan, a fund may pay financial services firms a service fee at
an annual rate of up to 0.25 of 1% of the average daily net assets of shares of
the Class held in accounts that the firm maintains and services. The service
fee is accrued daily as an expense of the Class. A fund together with DIDI may
enter into agreements with firms pursuant to which the firms provide personal
service and/or maintenance of shareholder accounts including, but not limited
to, establishing and maintaining shareholder accounts and records, distributing
monthly statements, processing purchase and redemption transactions, automatic
investment in fund shares of client account cash balances, answering routine
client inquiries regarding a fund, assistance to clients in changing dividend
options, account designations and addresses, aggregating trades of all the
firm's clients, providing account information to clients in client sensitive
formats and such other services as a fund may reasonably request. Service fees
are not payable for advertising, promotion or other distribution services.
The Plan continues in effect from year to year so long as its continuance is
approved at least annually by the vote of a majority of (a) the Board, and (b)
the Board Members who are not "interested persons" of a fund and who have no
direct or indirect financial interest in the operation of the Plan, or any
related agreements. The Plan may be terminated with respect to the Class at any
time by vote of the Board, including a vote by the Board Members who are not
"interested persons" of a fund and who have no direct or indirect financial
interest in the operation of the Plan, or any related agreements. The Plan may
not be amended to increase materially the amount of service fees provided for
in the Plan unless the amendment is approved in the manner provided for annual
continuance of the Plan discussed above. If the Plan is terminated or not
renewed, a fund will not be obligated to make any payments of service fees that
accrued after the termination date.
III. DWS VARIABLE SERIES I AND DWS VARIABLE SERIES II
RULE 12B-1 PLAN. Each fund of DWS Variable Series I and DWS Variable Series II
that has authorized the issuance of Class B shares has adopted a distribution
plan under Rule 12b-1 (Plan) that provides for fees payable as an expense of
the Class B shares. Under the Plan, a fund may make quarterly payments as
reimbursement to DIDI for distribution and shareholder servicing related
expenses incurred or paid by the Distributor or a participating insurance
company. No such payment shall be made with respect to any quarterly period in
excess of an amount determined for such period at the annual rate of 0.25% of
the average daily net assets of Class B shares during that quarterly period.
The fee is payable by a fund, on behalf of Class B shares, of up to 0.25% of
the average daily net assets attributable to Class B shares of the fund.
Because 12b-1 fees are paid out of fund assets on an ongoing basis, they will,
over time, increase the cost of investment and may cost more than other types
of sales charges. The Plan and any Rule 12b-1 related agreement that is entered
into by a fund or the Distributor in connection with the Plan will continue in
effect for a period of more than one year only so long as continuance is
specifically approved at least annually by a vote of a majority of the Board,
and of a majority of the Board Members who are not interested persons (as
defined in the 1940 Act) of a fund, cast in person at a meeting called for the
purpose of voting on the Plan, or the Rule 12b-1 related agreement, as
applicable. In addition, the Plan and any Rule 12b-1 related agreement may be
terminated as to Class B shares of a fund at any time, without penalty, by vote
of a majority of the outstanding Class B shares of that fund or by vote of a
majority of the Board Members who are not interested persons of a fund and who
have no direct or indirect financial interest in the operation of the Plan or
any Rule 12b-1 related agreement. The Plan provides that it may not be amended
to increase
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materially the amount that may be spent for distribution of Class B shares of a
fund without the approval of Class B shareholders of that fund.
IV. DWS INVESTMENTS VIT FUNDS
RULE 12B-1 PLAN. DWS Equity 500 Index VIP and DWS Small Cap Index VIP of DWS
Investments VIT Funds have each adopted a distribution plan under Rule 12b-1
(Plan) that provides for fees payable as an expense of the Class B shares and,
in the case of the DWS Equity 500 Index VIP, the Class B2 shares. Under the
Plan, a fund may make payments to DIDI for remittance directly or indirectly to
a participating dealer, shareholder service agent, life insurance company or
other applicable party a fee in an amount not to exceed the annual rate of
0.25% of the average daily net assets of the Class B shares or Class B2 shares,
as applicable, under a participation agreement, service agreement,
sub-distribution agreement or other similar agreement which provides for Class
B shares or Class B2 shares. DIDI is authorized pursuant to the Plan to pay for
anything reasonably designed to enhance sales or retention of shareholders and
for the provision of services to shareholders of the Class B shares or Class B2
shares. Because 12b-1 fees are paid out of fund assets on an ongoing basis,
they will, over time, increase the cost of investment in Class B or Class B2
shares, and may cost more than other types of sales charges. The Plan and any
Rule 12b-1 related agreement that is entered into by a fund or the Distributor
in connection with the Plan will continue in effect for a period of more than
one year only so long as continuance is specifically approved at least annually
by a vote of a majority of the Board, and of a majority of the Board Members
who are not interested persons (as defined in the 1940 Act) of a fund, cast in
person at a meeting called for the purpose of voting on the Plan, or the Rule
12b-1 related agreement, as applicable. In addition, the Plan and any Rule
12b-1 related agreement may be terminated as to Class B shares or Class B2
shares of a fund at any time, without penalty, by vote of a majority of the
outstanding Class B shares or Class B2 shares, as applicable, of that fund or
by vote of a majority of the Board Members who are not interested persons of a
fund and who have no direct or indirect financial interest in the operation of
the Plan or any Rule 12b-1 related agreement. The Plan provides that it may not
be amended to increase materially the amount that may be spent for distribution
of Class B shares or Class B2 shares of a fund without the approval of the
shareholders of such class.
INVESTMENTS
GENERAL INVESTMENT PRACTICES AND TECHNIQUES
PART II - APPENDIX II-G includes a description of the investment practices and
techniques which a fund may employ in pursuing its investment objective, as
well as the associated risks. Descriptions in this SAI of a particular
investment practice or technique in which a fund may engage are meant to
describe the spectrum of investments that the Advisor (and/or sub-advisor or
sub-subadvisor, if applicable) in its discretion might, but is not required to,
use in managing a fund. The Advisor (and/or sub-advisor or sub-subadvisor, if
applicable) may in its discretion at any time employ such practice, technique
or instrument for one or more funds but not for all funds advised by it.
Furthermore, it is possible that certain types of financial instruments or
investment techniques described herein may not be available, permissible,
economically feasible or effective for their intended purposes in all markets.
Certain practices, techniques or instruments may not be principal activities of
the fund, but, to the extent employed, could from time to time have a material
impact on a fund's performance.
IT IS POSSIBLE THAT CERTAIN INVESTMENT PRACTICES AND TECHNIQUES MAY NOT BE
PERMISSIBLE FOR A FUND BASED ON ITS INVESTMENT RESTRICTIONS, AS DESCRIBED
HEREIN, AND IN A FUND'S PROSPECTUS.
PORTFOLIO TRANSACTIONS
The Advisor is generally responsible for placing orders for the purchase and
sale of portfolio securities, including the allocation of brokerage. With
respect to those funds for which a sub-investment advisor manages a fund's
investments, references in this section to the "Advisor" should be read to mean
the Sub-Advisor, except as noted below.
The policy of the Advisor in placing orders for the purchase and sale of
securities for a fund is to seek best execution, taking into account such
factors, among others, as price; commission (where applicable); the
broker-dealer's ability to ensure that securities will be delivered on
settlement date; the willingness of the broker-dealer to commit its capital and
purchase a thinly traded security for its own inventory; whether the
broker-dealer specializes in block orders or large program trades; the
broker-dealer's knowledge of the market and the security; the broker-dealer's
ability to maintain confidentiality; the broker-dealer's ability to provide
access to new issues; the broker-dealer's ability to provide support when
placing a difficult trade; the financial condition of the broker-dealer; and
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whether the broker-dealer has the infrastructure and operational capabilities
to execute and settle the trade. The Advisor seeks to evaluate the overall
reasonableness of brokerage commissions with commissions charged on comparable
transactions and compares the brokerage commissions (if any) paid by the funds
to reported commissions paid by others. The Advisor routinely reviews
commission rates, execution and settlement services performed and makes
internal and external comparisons.
Commission rates on transactions in equity securities on US securities
exchanges are subject to negotiation. Commission rates on transactions in
equity securities on foreign securities exchanges are generally fixed.
Purchases and sales of fixed-income securities and certain over-the-counter
securities are effected on a net basis, without the payment of brokerage
commissions. Transactions in fixed income and certain over-the-counter
securities are generally placed by the Advisor with the principal market makers
for these securities unless the Advisor reasonably believes more favorable
results are available elsewhere. Transactions with dealers serving as market
makers reflect the spread between the bid and asked prices. Purchases of
underwritten issues will include an underwriting fee paid to the underwriter.
Money market instruments are normally purchased in principal transactions
directly from the issuer or from an underwriter or market maker.
It is likely that the broker-dealers selected based on the considerations
described in this section will include firms that also sell shares of the funds
to their customers. However, the Advisor does not consider sales of shares of
the funds as a factor in the selection of broker-dealers to execute portfolio
transactions for the funds and, accordingly, has implemented policies and
procedures reasonably designed to prevent its traders from considering sales of
shares of the funds as a factor in the selection of broker-dealers to execute
portfolio transactions for the funds.
The Advisor is permitted by Section 28(e) of the Securities Exchange Act of
1934, as amended (1934 Act), when placing portfolio transactions for a fund, to
cause a fund to pay brokerage commissions in excess of that which another
broker-dealer might charge for executing the same transaction in order to
obtain research and brokerage services if the Advisor determines that such
commissions are reasonable in relation to the overall services provided. The
Advisor may from time to time, in reliance on Section 28(e) of the 1934 Act,
execute portfolio transactions with broker-dealers that provide research and
brokerage services to the Advisor. Consistent with the Advisor's policy
regarding best execution, where more than one broker is believed to be capable
of providing best execution for a particular trade, the Advisor may take into
consideration the receipt of research and brokerage services in selecting the
broker-dealer to execute the trade. Although certain research and brokerage
services from broker-dealers may be useful to a fund and to the Advisor, it is
the opinion of the Advisor that such information only supplements its own
research effort since the information must still be analyzed, weighed and
reviewed by the Advisor's staff. To the extent that research and brokerage
services of value are received by the Advisor, the Advisor may avoid expenses
that it might otherwise incur. Research and brokerage services received from a
broker-dealer may be useful to the Advisor and its affiliates in providing
investment management services to all or some of its clients, which includes a
fund. Services received from broker-dealers that executed securities
transactions for a fund will not necessarily be used by the Advisor
specifically to service that fund.
Research and brokerage services provided by broker-dealers may include, but are
not limited to, information on the economy, industries, groups of securities,
individual companies, statistical information, accounting and tax law
interpretations, political developments, legal developments affecting portfolio
securities, technical market action, pricing and appraisal services, credit
analysis, risk measurement analysis, performance analysis and measurement and
analysis of corporate responsibility issues. Research and brokerage services
are typically received in the form of written or electronic reports, access to
specialized financial publications, telephone contacts and personal meetings
with security analysts, but may also be provided in the form of access to
various computer software and meetings arranged with corporate and industry
representatives.
The Advisor may also select broker-dealers and obtain from them research and
brokerage services that are used in connection with executing trades provided
that such services are consistent with interpretations under Section 28(e) of
the 1934 Act. Typically, these services take the form of computer software
and/or electronic communication services used by the Advisor to facilitate
trading activity with those broker-dealers.
Research and brokerage services may include products obtained from third
parties if the Advisor determines that such product or service constitutes
brokerage and research as defined in Section 28(e) and interpretations
thereunder. Provided a Sub-Advisor is acting in accordance with any
instructions and directions of the Advisor or the Board, the Sub-Advisor is
authorized to pay to a broker or dealer who provides third party brokerage and
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research services a commission for executing a portfolio transaction for a fund
in excess of what another broker or dealer may charge, if the Sub-Advisor
determines in good faith that such commission was reasonable in relation to the
value of the third party brokerage and research services provided by such
broker or dealer.
The Advisor may use brokerage commissions to obtain certain brokerage products
or services that have a mixed use (i.e., it also serves a function that does
not relate to the investment decision-making process). In those circumstances,
the Advisor will make a good faith judgment to evaluate the various benefits
and uses to which it intends to put the mixed use product or service and will
pay for that portion of the mixed use product or service that it reasonably
believes does not constitute research and brokerage services with its own
resources.
The Advisor will monitor regulatory developments and market practice in the use
of client commissions to obtain research and brokerage services and may adjust
its portfolio transactions policies in response thereto.
Investment decisions for a fund and for other investment accounts managed by
the Advisor are made independently of each other in light of differing
conditions. However, the same investment decision may be made for two or more
of such accounts. In such cases, simultaneous transactions are inevitable. To
the extent permitted by law, the Advisor may aggregate the securities to be
sold or purchased for a fund with those to be sold or purchased for other
accounts in executing transactions. The Advisor has adopted policies and
procedures that are reasonably designed to ensure that when the Advisor
aggregates securities purchased or sold on behalf of accounts, the securities
are allocated among the participating accounts in a manner that the Advisor
believes to be fair and equitable. The Advisor may make allocations among
accounts based upon a number of factors that may include, but not limited to,
investment objectives and guidelines, risk tolerance, availability of other
investment opportunities and available cash for investment. With respect to
limited opportunities or initial public offerings, the Advisor may make
allocations among accounts on a pro-rata basis with consideration given to
suitability. While in some cases this practice could have a detrimental effect
on the price paid or received by, or on the size of the position obtained or
disposed of for, a fund, in other cases it is believed that the ability to
engage in volume transactions will be beneficial to a fund.
The Advisor and its affiliates and each fund's management team manage other
mutual funds and separate accounts, some of which use short sales of securities
as a part of its investment strategy. The simultaneous management of long and
short portfolios creates potential conflicts of interest including the risk
that short sale activity could adversely affect the market value of the long
positions (and vice versa), the risk arising from sequential orders in long and
short positions, and the risks associated with receiving opposing orders at the
same time. The Advisor has adopted procedures that it believes are reasonably
designed to mitigate these potential conflicts of interest. Incorporated in the
procedures are specific guidelines developed to ensure fair and equitable
treatment for all clients. The Advisor and the investment team have established
monitoring procedures and a protocol for supervisory reviews, as well as
compliance oversight to ensure that potential conflicts of interest relating to
this type of activity are properly addressed.
Deutsche Bank AG or one of its affiliates (or in the case of a Sub-Advisor, the
Sub-Advisor or one of its affiliates) may act as a broker for the funds and
receive brokerage commissions or other transaction-related compensation from
the funds in the purchase and sale of securities, options or futures contracts
when, in the judgment of the Advisor, and in accordance with procedures
approved by the Board, the affiliated broker will be able to obtain a price and
execution at least as favorable as those obtained from other qualified brokers
and if, in the transaction, the affiliated broker charges the funds a rate
consistent with that charged to comparable unaffiliated customers in similar
transactions.
PORTFOLIO TURNOVER. Portfolio turnover rate is defined by the SEC as the ratio
of the lesser of sales or purchases to the monthly average value of such
securities owned during the year, excluding all securities whose remaining
maturities at the time of acquisition were one year or less.
Higher levels of activity by a fund result in higher transaction costs and may
also result in taxes on realized capital gains to be borne by a fund's
shareholders. Purchases and sales are made whenever necessary, in the Advisor's
discretion, to meet a fund's objective.
PORTFOLIO HOLDINGS INFORMATION
In addition to the public disclosure of fund portfolio holdings through
required SEC quarterly filings (and monthly filings for money market funds),
each fund may make its portfolio holdings information publicly available on the
DWS funds' Web site as described in a fund's
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prospectus. Each fund does not disseminate non-public information about
portfolio holdings except in accordance with policies and procedures adopted by
a fund.
Each fund's procedures permit non-public portfolio holdings information to be
shared with Deutsche Asset & Wealth Management and its affiliates, subadvisors,
if any, custodians, independent registered public accounting firms, attorneys,
officers and trustees/directors and each of their respective affiliates and
advisers who require access to this information to fulfill their duties to the
fund and are subject to the duties of confidentiality, including the duty not
to trade on non-public information, imposed by law or contract, or by a fund's
procedures. This non-public information may also be disclosed, subject to the
requirements described below, to certain third parties, such as securities
lending agents, financial printers, proxy voting firms, mutual fund analysts
and rating and tracking agencies, to shareholders in connection with in-kind
redemptions or, in connection with investing in underlying funds, subadvisors
to DWS funds of funds (Authorized Third Parties).
Prior to any disclosure of a fund's non-public portfolio holdings information
to Authorized Third Parties, a person authorized by the Board must make a good
faith determination in light of the facts then known that a fund has a
legitimate business purpose for providing the information, that the disclosure
is in the best interest of a fund, and that the recipient assents or otherwise
has a duty to keep the information confidential and to not trade based on the
information received while the information remains non-public. No compensation
is received by a fund or Deutsche Asset & Wealth Management for disclosing
non-public holdings information. Periodic reports regarding these procedures
will be provided to the Board.
Portfolio holdings information distributed by the trading desks of Deutsche
Asset & Wealth Management or a subadvisor for the purpose of facilitating
efficient trading of such securities and receipt of relevant research is not
subject to the foregoing requirements. Non-public portfolio holding information
does not include portfolio characteristics (other than holdings or subsets of
holdings) about a fund and information derived therefrom, including, but not
limited to, how the fund's investments are divided among various sectors,
industries, countries, value and growth stocks, bonds, small, mid and large cap
stocks, currencies and cash, types of bonds, bond maturities, duration, bond
coupons and bond credit quality ratings, alpha, beta, tracking error, default
rate, portfolio turnover, and risk and style characteristics so long as the
identity of the fund's holdings could not be derived from such information.
Registered investment companies that are subadvised by Deutsche Asset & Wealth
Management may be subject to different portfolio holdings disclosure policies,
and neither Deutsche Asset & Wealth Management nor the Board exercise control
over such policies. In addition, separate account clients of Deutsche Asset &
Wealth Management have access to their portfolio holdings and are not subject
to a fund's portfolio holdings disclosure policy. The portfolio holdings of
some of the funds subadvised by Deutsche Asset & Wealth Management and some of
the separate accounts managed by Deutsche Asset & Wealth Management may
substantially overlap with the portfolio holdings of a fund.
Deutsche Asset & Wealth Management also manages certain unregistered commingled
trusts and creates model portfolios, the portfolio holdings of which may
substantially overlap with the portfolio holdings of a fund. To the extent that
investors in these commingled trusts or recipients of model portfolio holdings
information may receive portfolio holdings information of their trust or of a
model portfolio on a different basis from that on which fund portfolio holdings
information is made public, Deutsche Asset & Wealth Management has implemented
procedures reasonably designed to encourage such investors and recipients to
keep such information confidential, and to prevent those investors from trading
on the basis of non-public holdings information.
There is no assurance that a fund's policies and procedures with respect to the
disclosure of portfolio holdings information will protect the fund from the
potential misuse of portfolio holdings information by those in possession of
that information.
NET ASSET VALUE
APPLICABLE TO FUNDS OTHER THAN MONEY MARKET FUNDS. The net asset value per
share of a fund is normally computed as of the close of regular trading on the
New York Stock Exchange (Exchange) on each day the Exchange is open for trading
(Value Time). The Exchange is scheduled to be closed on the following holidays:
New Year's Day, Dr. Martin Luther King, Jr. Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas, and on
the preceding Friday or subsequent Monday when one of these holidays falls on a
Saturday or Sunday, respectively. Net asset value per share is determined
separately for each class of shares by dividing the value of the total assets
of the fund attributable to the shares of that class, less all liabilities
attributable to that class, by the total number of shares of
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that class outstanding. The per share net asset value may be lower for certain
classes of the fund because of higher expenses borne by these classes.
An equity security is valued at its most recent sale price on the security's
primary exchange or over-the-counter (OTC) market as of the Value Time. Lacking
any sales, the security is valued at the calculated mean between the most
recent bid quotation and the most recent asked quotation (Calculated Mean) on
such exchange or OTC market as of the Value Time. If it is not possible to
determine the Calculated Mean, the security is valued at the most recent bid
quotation on such exchange or OTC market as of the Value Time. In the case of
certain foreign exchanges or OTC markets, the closing price reported by the
foreign exchange or OTC market (which may sometimes be referred to by the
exchange or one or more pricing agents as the "official close" or the "official
closing price" or other similar term) will be considered the most recent sale
price.
Debt securities are valued as follows. Money market instruments purchased with
an original or remaining maturity of 60 days or less, maturing at par, are
valued at amortized cost. Other money market instruments shall be valued based
on information obtained from an approved pricing agent, or if such information
is not available, the money market instruments shall be valued using the
average of the most recent reliable bid quotations or evaluated prices obtained
from two or more broker-dealers. Bank loans are valued at prices supplied by an
approved pricing agent (which are intended to reflect the mean between the bid
and asked prices), if available, and otherwise at the mean of the most recent
bid and asked quotations or evaluated prices, as applicable, based on
quotations or evaluated prices obtained from one or more broker-dealers.
Privately placed debt securities, other than Rule 144A debt securities,
initially are valued at cost and thereafter based on all relevant factors,
including type of security, size of holding and restrictions on disposition.
Municipal debt securities are valued at prices supplied by an approved pricing
agent (which are intended to reflect the mean between the bid and asked
prices), if available, and otherwise at the mean of the most recent bid and
asked quotations or evaluated prices obtained from a broker-dealer. Other debt
securities are valued at prices supplied by an approved pricing agent, if
available, and otherwise at the most recent bid quotation or evaluated price,
as applicable, obtained from two or more broker-dealers. If it is not possible
to value a particular debt security pursuant to the above methods, the security
is valued on the basis of factors including (but not limited to) maturity,
coupon, creditworthiness, currency denomination, and the movement of the market
in which the security is normally traded.
An exchange-traded option contract on securities, currencies and other
financial instruments is valued at its most recent sale price on the relevant
exchange. Lacking any sales, the option contract is valued at the Calculated
Mean. If it is not possible to determine the Calculated Mean, the option
contract is valued at the most recent bid quotation in the case of a purchased
option contract or the most recent asked quotation in the case of a written
option contract, in each case as of the Value Time. An option contract on
securities, currencies and other financial instruments traded in the OTC market
is valued as of the Value Time at a price supplied by an approved pricing
agent, if available, and otherwise at the evaluated price provided by the
broker-dealer with which it was traded. Futures contracts (and options thereon)
are valued at the most recent settlement price, if available, on the exchange
on which they are traded most extensively. With the exception of stock index
futures contracts which trade on the Chicago Mercantile Exchange, closing
settlement times are prior to the close of trading on the Exchange. For stock
index futures contracts which trade on the Chicago Mercantile Exchange, closing
settlement prices are normally available at approximately 4:20 pm Eastern time.
If no settlement price is available, the last traded price on such exchange
will be used.
If market quotations for a fund asset are not readily available or if the
Advisor believes that the value of a fund asset as determined in accordance
with Board-approved procedures is unreliable, the value of the fund asset is
taken to be an amount which, in the opinion of a fund's Pricing Committee (or,
in some cases, the Board's Valuation Committee), represents fair market value.
The value of other holdings is determined in a manner which is intended to
fairly reflect the fair market value of the asset on the valuation date, based
on valuation procedures adopted by the Board and overseen primarily by a fund's
Pricing Committee.
THE FOLLOWING PARAGRAPH APPLIES TO FUNDS THAT INVEST IN UNDERLYING MUTUAL
FUNDS. The net asset value of each underlying DWS mutual fund is determined
based upon the nature of the securities as set forth in the prospectus and
statement of additional information of such underlying DWS mutual fund. Shares
of each underlying DWS mutual fund in which the fund may invest are valued at
the net asset value per share of each underlying DWS mutual fund as of the
close of regular trading on the Exchange on each day the Exchange is open for
trading.
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The net asset value per share of the underlying DWS mutual funds will be
calculated and reported to the fund by each underlying DWS mutual fund's
accounting agent.
THE FOLLOWING ADDITIONAL PARAGRAPHS APPLY TO DWS EQUITY 500 INDEX FUND AND DWS
S&P 500 INDEX FUND (FEEDER FUNDS). Each feeder fund pursues its investment
objective by investing substantially all of its assets in a master portfolio -
the DWS Equity 500 Index Portfolio (Portfolio), which has the same investment
objective and is subject to the same investment risks as the feeder fund.
Net asset value per share of a feeder fund is determined as of the Value Time
separately for each class of shares by dividing the value of the total assets
of the feeder fund (i.e., the value of the feeder fund's investment in the
Portfolio and any other assets) attributable to the shares of that class, less
all liabilities attributable to that class, by the total number of shares of
that class outstanding.
As of the Value Time, the Portfolio determines its net value (i.e., the value
of the Portfolio's portfolio instruments and any other assets less all
liabilities) using the valuation procedures for securities and other assets
described above.
Each investor in the Portfolio, including a feeder fund, may add to or reduce
its investment in the Portfolio on each day that net asset value of the feeder
fund and the Portfolio are computed as described above. At the close of a Value
Time, the value of each investor's beneficial interest in the Portfolio will be
determined by multiplying the net value of the Portfolio, determined as
provided above, by the percentage, effective for that day, which represents
that investor's share of the aggregate beneficial interests in the Portfolio.
Any additions or withdrawals, which are to be effected as of the Value Time on
that day, will then be effected. The percentage of the aggregate beneficial
interests in the Portfolio held by each investor in the Portfolio, including a
feeder fund, will then be recomputed as the percentage equal to the fraction
(i) the numerator of which is the value of the investor's investment in the
Portfolio as of the Value Time on such day plus or minus, as the case may be,
the amount of net additions to or withdrawals from such investor's investment
in the Portfolio effected as of the Value Time on such day, and (ii) the
denominator of which is the aggregate net value of the Portfolio, determined as
provided above, as of the Value Time on such day plus or minus, as the case may
be, the amount of net additions to or withdrawals from the aggregate
investments in the Portfolio by all investors, including the feeder fund, in
the Portfolio. The percentage so determined for a feeder fund will then be
applied to determine the value of the feeder fund's interest in the Portfolio
as of the Value Time on the following day that net asset value is determined.
APPLICABLE TO MONEY MARKET FUNDS OTHER THAN DWS MONEY MARKET SERIES, CASH
MANAGEMENT FUND, CASH RESERVES FUND-INSTITUTIONAL AND PRIME SERIES OF CASH
RESERVE FUND, INC. AND DWS VARIABLE NAV MONEY FUND. The net asset value (NAV)
per share of a fund is calculated on each day (Valuation Day) on which the fund
is open for business as of the time described in the fund's prospectus. A fund
is open for business each day the New York Stock Exchange (Exchange) is open
for trading, and the fund may, but is not required to, accept certain types of
purchase and redemption orders (not including exchanges) on days that the
Exchange is not open or beyond an early Exchange closing time, as described in
the fund's prospectus. The Exchange is scheduled to be closed on the following
holidays: New Year's Day, Dr. Martin Luther King, Jr. Day, Presidents' Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and
Christmas, and on the preceding Friday or subsequent Monday when one of these
holidays falls on a Saturday or Sunday, respectively. Net asset value per share
is determined separately for each class of shares by dividing the value of the
total assets of the fund attributable to the shares of that class, less all
liabilities attributable to that class, by the total number of shares of that
class outstanding. Although there is no guarantee, a fund's NAV per share will
normally be $1.00.
A fund values its portfolio instruments at amortized cost, which does not take
into account unrealized capital gains or losses. This involves initially
valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium, regardless of the impact
of fluctuating interest rates on the market value of the instrument. While this
method provides certainty in valuation, it may result in periods during which
value, as determined by amortized cost, is higher or lower than the price the
fund would receive if it sold the instrument.
The Board has established procedures reasonably designed to stabilize a fund's
NAV per share at $1.00. Under the procedures, the Advisor will monitor and
notify the Board of circumstances where a fund's NAV per share calculated by
using market valuations may deviate from the $1.00 per share calculated using
amortized cost. If there were any deviation that the Board believed would
result in a material dilution or unfair result for investors or existing
shareholders, the Board would promptly
II-41
consider what action, if any, should be initiated. Such actions could include
selling assets prior to maturity to realize capital gains or losses; shortening
the average maturity of a fund's portfolio; adjusting the level of dividends;
redeeming shares in kind; or valuing assets based on market valuations. For
example, if a fund's net asset value per share (computed using market values)
declined, or was expected to decline, below $1.00 (computed using amortized
cost), the fund might temporarily reduce or suspend dividend payments in an
effort to maintain the net asset value at $1.00 per share. As a result of such
reduction or suspension of dividends or other action by the Board, an investor
would receive less income during a given period than if such a reduction or
suspension had not taken place. Such action could result in investors receiving
no dividend for the period during which they hold their shares and receiving,
upon redemption, a price per share lower than that which they paid. On the
other hand, if a fund's net asset value per share (computed using market
values) were to increase, or were anticipated to increase above $1.00 (computed
using amortized cost), a fund might supplement dividends in an effort to
maintain the net asset value at $1.00 per share.
Market valuations are obtained by using actual quotations provided by market
makers, estimates of market value, or values obtained from yield data relating
to classes of money market instruments published by reputable sources at the
mean between the bid and asked prices for the instruments. In accordance with
procedures approved by the Board, in the event market quotations are not
readily available for certain portfolio assets the fair value of such portfolio
assets will be determined in good faith by a fund's Pricing Committee (or, in
some cases, the Board's Valuation Committee) based upon input from the Advisor
or other third parties.
THE FOLLOWING PARAGRAPH APPLIES TO DWS VARIABLE NAV MONEY FUND ONLY. The net
asset value of shares of the fund is generally calculated on each day the New
York Stock Exchange is open for trading, as described in the fund's
prospectuses. Pursuant to Board approved valuation procedures, the fund
generally values its portfolio instruments using information furnished by an
independent pricing service or market quotations. Interactive Data Corporation
serves as the primary independent pricing service for the fund. In accordance
with Board approved procedures, in the event pricing service information or
market quotations are not readily available for certain portfolio assets, or
when the value of certain portfolio assets is believed to have been materially
affected by a significant event, the fair value of such portfolio assets will
be determined by the fund's Pricing Committee (or, in some cases, the Board's
Valuation Committee). In accordance with its procedures, the fund will
typically value newly acquired securities at amortized cost on date of
acquisition, and thereafter using information furnished by an independent
pricing service.
APPLICABLE TO THE FOLLOWING MONEY MARKET FUNDS (EACH, A FUND): DWS MONEY MARKET
SERIES, CASH MANAGEMENT FUND, CASH RESERVES FUND INSTITUTIONAL AND PRIME SERIES
OF CASH RESERVE FUND, INC. Each of these funds pursues its investment objective
by investing substantially all of its assets in a master portfolio - the Cash
Management Portfolio (Portfolio), which has the same investment objective and
is subject to the same investment risks as a fund. The net asset value (NAV)
per share of a fund is calculated on each day (Valuation Day) on which a fund
is open for business as of the time described in a fund's prospectus. The fund
is open for business each day the New York Stock Exchange (Exchange) is open
for trading, and the fund may, but is not required to, accept certain types of
purchase and redemption orders (not including exchanges) on days that the
Exchange is not open or beyond an early Exchange closing time, as described in
a fund's prospectus. The Exchange is scheduled to be closed on the following
holidays: New Year's Day, Dr. Martin Luther King, Jr. Day, Presidents' Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and
Christmas, and on the preceding Friday or subsequent Monday when one of these
holidays falls on a Saturday or Sunday, respectively. Net asset value per share
is determined separately for each class of shares by dividing the value of the
total assets of the fund (i.e., the value of a fund's investment in the
Portfolio and any other assets) attributable to the shares of that class, less
all liabilities attributable to that class, by the total number of shares of
that class outstanding. Although there is no guarantee, a fund's NAV per share
will normally be $1.00.
On each Valuation Day, the Portfolio determines its net value (i.e., the value
of the Portfolio's portfolio instruments and any other assets less all
liabilities). The Portfolio values its portfolio instruments at amortized cost,
which does not take into account unrealized capital gains or losses. This
involves initially valuing an instrument at its cost and thereafter assuming a
constant amortization to maturity of any discount or premium, regardless of the
impact of fluctuating interest rates on the market value of the instrument.
While this method provides certainty in valuation, it may result in periods
during which value, as determined by amortized cost, is higher or lower than
the price the Portfolio would receive if it sold the instrument.
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Each investor in the Portfolio, including a fund, may add to or reduce its
investment in the Portfolio on each Valuation Day. At the close of each such
Valuation Day, the value of each investor's beneficial interest in the
Portfolio will be determined by multiplying the net value of the Portfolio, as
determined by amortized cost, by the percentage, effective for that day, which
represents that investor's share of the aggregate beneficial interests in the
Portfolio. Any additions or withdrawals, which are to be effected as of the
close of business on that day, will then be effected. The percentage of the
aggregate beneficial interests in the Portfolio held by each investor in the
Portfolio, including a fund will then be recomputed as the percentage equal to
the fraction (i) the numerator of which is the value of the investor's
investment in the Portfolio as of the close of business on such day plus or
minus, as the case may be, the amount of net additions to or withdrawals from
such investor's investment in the Portfolio effected as of the close of
business on such day, and (ii) the denominator of which is the aggregate net
value of the Portfolio, as determined by amortized cost, as of the close of
business on such day plus or minus, as the case may be, the amount of net
additions to or withdrawals from the aggregate investments in the Portfolio by
all investors, including a fund, in the Portfolio. The percentage so determined
for a fund will then be applied to determine the value of a fund's interest in
the Portfolio as of the close of the following Valuation Day.
The Board has established procedures reasonably designed to stabilize a fund's
NAV per share at $1.00. Under the procedures, the Advisor will monitor and
notify the Board of circumstances where a fund's NAV per share calculated based
on valuing the fund's investment in the Portfolio and the fund's other assets
using market valuations may deviate from the $1.00 per share calculated based
on valuing a fund's investment in the Portfolio and a fund's other assets using
amortized cost. If there were any deviation that the Board believed would
result in a material dilution or unfair result for investors or existing
shareholders, the Board would promptly consider what action, if any, should be
initiated. Such actions could include selling assets prior to maturity to
realize capital gains or losses; shortening average maturity of the investment
portfolio; adjusting the level of dividends; redeeming shares in kind; or
valuing assets based on market valuations. For example, if a fund's net asset
value per share (computed using market values) declined, or was expected to
decline, below $1.00 (computed using amortized cost), the fund might
temporarily reduce or suspend dividend payments in an effort to maintain the
net asset value at $1.00 per share. As a result of such reduction or suspension
of dividends or other action by the Board, an investor would receive less
income during a given period than if such a reduction or suspension had not
taken place. Such action could result in investors receiving no dividend for
the period during which they hold their shares and receiving, upon redemption,
a price per share lower than that which they paid. On the other hand, if a
fund's net asset value per share (computed using market values) were to
increase, or were anticipated to increase above $1.00 (computed using amortized
cost), a fund might supplement dividends in an effort to maintain the net asset
value at $1.00 per share. Because a fund invests substantially all of its
assets in the Portfolio, certain of these actions could be implemented at the
Portfolio level at the discretion of its Board.
Market valuations are obtained by using actual quotations provided by market
makers, estimates of market value, or values obtained from yield data relating
to classes of money market instruments published by reputable sources at the
mean between the bid and asked prices for the instruments. In accordance with
procedures approved by the Board, in the event market quotations are not
readily available for certain portfolio assets the fair value of such portfolio
assets will be determined in good faith by the Portfolio's Pricing Committee
(or, in some cases, the Board's Valuation Committee) based upon input from the
Advisor or other third parties.
PROXY VOTING GUIDELINES
Each fund has delegated proxy voting responsibilities to the Advisor, subject
to the Board's general oversight. A fund has delegated proxy voting to the
Advisor with the direction that proxies should be voted consistent with the
fund's best economic interests. The Advisor has adopted its own Proxy Voting
Policies and Procedures (Policies), and Proxy Voting Guidelines (Guidelines)
for this purpose. The Policies address, among other things, conflicts of
interest that may arise between the interests of a fund, and the interests of
the Advisor and its affiliates, including a fund's principal underwriter. The
Policies are included in PART II - APPENDIX II-I.
You may obtain information about how a fund voted proxies related to its
portfolio securities during the 12-month period ended June 30 by visiting the
Securities and Exchange Commission's Web site at www.sec.gov or by visiting our
Web site at dws-investments.com (click on "proxy voting" at the bottom of the
page).
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MISCELLANEOUS
A fund's prospectuses and this SAI omit certain information contained in the
Registration Statement which a fund has filed with the SEC under the Securities
Act of 1933 and reference is hereby made to the Registration Statement for
further information with respect to a fund and the securities offered hereby.
This Registration Statement and its amendments are available for inspection by
the public at the SEC in Washington, D.C.
RATINGS OF INVESTMENTS
BONDS AND COMMERCIAL PAPER RATINGS
Set forth below are descriptions of ratings which represent opinions as to the
quality of the securities. It should be emphasized, however, that ratings are
relative and subjective and are not absolute standards of quality.
MOODY'S INVESTORS SERVICE, INC.'S LONG-TERM OBLIGATION RATINGS
Moody's long-term ratings are forward-looking opinions of the relative credit
risks of financial obligations with an original maturity of one year or more.
They address the possibility that a financial obligation will not be honored as
promised. Such ratings use Moody's Global Scale and reflect both the likelihood
of default and any financial loss suffered in the event of default.
AAA Obligations rated Aaa are judged to be of the highest quality, subject to
the lowest level of credit risk.
AA Obligations rated Aa are judged to be of high quality and are subject to
very low credit risk.
A Obligations rated A are judged to be upper-medium grade and are subject to
low credit risk.
BAA Obligations rated Baa are judged to be medium-grade and subject to moderate
credit risk and as such may possess certain speculative characteristics.
BA Obligations rated Ba are judged to be speculative and are subject to
substantial credit risk.
B Obligations rated B are considered speculative and are subject to high credit
risk.
CAA Obligations rated Caa are judged to be speculative of poor standing and are
subject to very high credit risk.
CA Obligations rated Ca are highly speculative and are likely in, or very near,
default, with some prospect of recovery of principal and interest.
C Obligations rated C are the lowest rated and are typically in default, with
little prospect for recovery of principal or interest.
NOTE: Moody's appends numerical modifiers 1, 2, and 3 to each generic rating
classification from Aa through Caa. The modifier 1 indicates that the
obligation ranks in the higher end of its generic rating category; the modifier
2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the
lower end of that generic rating category. Additionally, a ("hyb") indicator is
appended to all ratings of hybrid securities issued by banks, insurers, finance
companies, and securities firms.
By their terms, hybrid securities allow for the omission of scheduled
dividends, interest, or principal payments, which can potentially result in
impairment if such an omission occurs. Hybrid securities may also be subject to
contractually allowable write-downs of principal that could result in
impairment. Together with the hybrid indicator, the long-term obligation rating
assigned to a hybrid security is an expression of the relative credit risk
associated with that security.
MOODY'S INVESTORS SERVICE, INC.'S SHORT-TERM OBLIGATION RATINGS
Moody's short-term ratings are forward-looking opinions of the ability of
issuers to honor short-term financial obligations. Ratings may be assigned to
issuers, short-term programs or to individual short-term debt instruments. Such
obligations generally have an original maturity not exceeding thirteen months,
unless explicitly noted.
Moody's employs the following designations to indicate the relative repayment
ability of rated issuers:
P-1 Issuers (or supporting institutions) rated Prime-1 have a superior ability
to repay short-term debt obligations.
P-2 Issuers (or supporting institutions) rated Prime-2 have a strong ability to
repay short-term debt obligations.
P-3 Issuers (or supporting institutions) rated Prime-3 have an acceptable
ability to repay short-term obligations.
NP Issuers (or supporting institutions) rated Not Prime do not fall within any
of the Prime rating categories.
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MOODY'S INVESTORS SERVICE, INC.'S US MUNICIPAL SHORT-TERM DEBT AND DEMAND
OBLIGATION RATINGS
SHORT-TERM OBLIGATION RATINGS
There are three rating categories for short-term municipal obligations that are
considered investment grade. These ratings are designated as Municipal
Investment Grade (MIG) and are divided into three levels - MIG 1 through MIG 3.
In addition, those short-term obligations that are of speculative quality are
designated SG, or speculative grade. MIG ratings expire at the maturity of the
obligation.
MIG 1 This designation denotes superior credit quality. Excellent protection is
afforded by established cash flows, highly reliable liquidity support, or
demonstrated broad-based access to the market for refinancing.
MIG 2 This designation denotes strong credit quality. Margins of protection are
ample, although not as large as in the preceding group.
MIG 3 This designation denotes acceptable credit quality. Liquidity and
cash-flow protection may be narrow, and market access for refinancing is likely
to be less well-established.
SG This designation denotes speculative-grade credit quality. Debt instruments
in this category may lack sufficient margins of protection.
DEMAND OBLIGATION RATINGS
In the case of variable rate demand obligations (VRDOs), a two-component rating
is assigned: a long or short-term debt rating and a demand obligation rating.
The first element represents Moody's evaluation of risk associated with
scheduled principal and interest payments. The second element represents
Moody's evaluation of risk associated with the ability to receive purchase
price upon demand ("demand feature"). The second element uses a rating from a
variation of the MIG scale called the Variable Municipal Investment Grade
(VMIG) scale.
The rating transitions on the VMIG scale differ from those on the Prime scale
to reflect the risk that external liquidity support generally will terminate if
the issuer's long-term ratings drops below investment grade.
VMIG 1 This designation denotes superior credit quality. Excellent protection
is afforded by the superior short-term credit strength of the liquidity
provider and structural and legal protections that ensure the timely payment of
purchase price upon demand.
VMIG 2 This designation denotes strong credit quality. Good protection is
afforded by the strong short-term credit strength of the liquidity provider and
structural and legal protections that ensure the timely payment of purchase
price upon demand.
VMIG 3 This designation denotes acceptable credit quality. Adequate protection
is afforded by the satisfactory short-term credit strength of the liquidity
provider and structural and legal protections that ensure the timely payment of
purchase price upon demand.
SG This designation denotes speculative-grade credit quality. Demand features
rated in this category may be supported by a liquidity provider that does not
have an investment grade short-term rating or may lack the structural and/or
legal protections necessary to ensure the timely payment of purchase price upon
demand.
STANDARD & POOR'S RATINGS SERVICES LONG-TERM ISSUE CREDIT RATINGS
INVESTMENT GRADE
AAA An obligation rated 'AAA' has the highest rating assigned by Standard &
Poor's. The obligor's capacity to meet its financial commitment on the
obligation is extremely strong.
AA An obligation rated 'AA' differs from the highest-rated obligations only to
a small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.
A An obligation rated 'A' is somewhat more susceptible to the adverse effects
of changes in circumstances and economic conditions than obligations in
higher-rated categories. However, the obligor's capacity to meet its financial
commitment on the obligation is still strong.
BBB An obligation rated 'BBB' exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity of the obligor to meet its financial commitment on the
obligation.
SPECULATIVE GRADE
Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having
significant speculative characteristics. 'BB' indicates the lowest degree of
speculation and 'C' the highest. While such obligations will likely have
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some quality and protective characteristics, these may be outweighed by large
uncertainties or major exposures to adverse conditions.
BB An obligation rated 'BB' is less vulnerable to nonpayment than other
speculative issues. However, it faces major ongoing uncertainties or exposure
to adverse business, financial, or economic conditions which could lead to the
obligor's inadequate capacity to meet its financial commitment on the
obligation.
B An obligation rated 'B' is more vulnerable to nonpayment than obligations
rated 'BB', but the obligor currently has the capacity to meet its financial
commitment on the obligation. Adverse business, financial, or economic
conditions will likely impair the obligor's capacity or willingness to meet its
financial commitment on the obligation.
CCC An obligation rated 'CCC' is currently vulnerable to nonpayment, and is
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation. In the event of
adverse business, financial, or economic conditions, the obligor is not likely
to have the capacity to meet its financial commitment on the obligation.
CC An obligation rated 'CC' is currently highly vulnerable to nonpayment. The
'CC' rating is used when a default has not yet occurred, but Standard & Poor's
expects default to be a virtual certainty, regardless of the anticipated time
to default.
C An obligation rated 'C' is currently highly vulnerable to nonpayment, and the
obligation is expected to have lower relative seniority or lower ultimate
recovery compared to obligations that are rated higher.
D An obligation rated 'D' is in default or in breach of an imputed promise. For
non-hybrid capital instruments, the 'D' rating category is used when payments
on an obligation are not made on the date due, unless Standard & Poor's
believes that such payments will be made within five business days in the
absence of a stated grace period or within the earlier of the stated grace
period or 30 calendar days. The 'D' rating also will be used upon the filing of
a bankruptcy petition or the taking of similar action and where default on an
obligation is a virtual certainty, for example due to automatic stay
provisions. An obligation's rating is lowered to 'D' if it is subject to a
distressed exchange offer.
NR This indicates that no rating has been requested, or that there is
insufficient information on which to base a rating, or that Standard & Poor's
does not rate a particular obligation as a matter of policy.
PLUS (+) OR MINUS (-) The ratings from 'AA' to 'CCC' may be modified by the
addition of a plus (+) or minus (-) sign to show relative standing within the
major rating categories.
STANDARD & POOR'S RATINGS SERVICES SHORT-TERM ISSUE CREDIT RATINGS
A-1 A short-term obligation rated 'A-1' is rated in the highest category by
Standard & Poor's. The obligor's capacity to meet its financial commitment on
the obligation is strong. Within this category, certain obligations are
designated with a plus sign (+). This indicates that the obligor's capacity to
meet its financial commitment on these obligations is extremely strong.
A-2 A short-term obligation rated 'A-2' is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than
obligations in higher rating categories. However, the obligor's capacity to
meet its financial commitment on the obligation is satisfactory.
A-3 A short-term obligation rated 'A-3' exhibits adequate protection
parameters. However, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation.
B A short-term obligation rated 'B' is regarded as vulnerable and has
significant speculative characteristics. The obligor currently has the capacity
to meet its financial commitments; however, it faces major ongoing
uncertainties which could lead to the obligor's inadequate capacity to meet its
financial commitments.
C A short-term obligation rated 'C' is currently vulnerable to nonpayment and
is dependent upon favorable business, financial, and economic conditions for
the obligor to meet its financial commitment on the obligation.
D A short-term obligation rated 'D' is in default or in breach of an imputed
promise. For non-hybrid capital instruments, the 'D' rating category is used
when payments on an obligation are not made on the date due, unless Standard &
Poor's believes that such payments will be made within any stated grace period.
However, any stated grace period longer than five business days will be treated
as five business days. The 'D' rating also will be used
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upon the filing of a bankruptcy petition or the taking of a similar action and
where default on an obligation is a virtual certainty, for example due to
automatic stay provisions. An obligation's rating is lowered to 'D' if it is
subject to a distressed exchange offer.
SPUR (STANDARD & POOR'S UNDERLYING RATING) A SPUR rating is an opinion about
the stand-alone capacity of an obligor to pay debt service on a credit-enhanced
debt issue, without giving effect to the enhancement that applies to it. These
ratings are published only at the request of the debt issuer/obligor with the
designation SPUR to distinguish them from the credit-enhanced rating that
applies to the debt issue. Standard & Poor's maintains surveillance of an issue
with a published SPUR.
STANDARD & POOR'S RATINGS SERVICES MUNICIPAL SHORT-TERM NOTE RATINGS
DEFINITIONS
A Standard & Poor's U.S. municipal note rating reflects Standard & Poor's
opinion about the liquidity factors and market access risks unique to the
notes. Notes due in three years or less will likely receive a note rating.
Notes with an original maturity of more than three years will most likely
receive a long-term debt rating. In determining which type of rating, if any,
to assign, Standard & Poor's analysis will review the following considerations:
o Amortization schedule - the larger the final maturity relative to other
maturities, the more likely it will be treated as a note; and
o Source of payment - the more dependent the issue is on the market for its
refinancing, the more likely it will be treated as a note.
Note rating symbols are as follows:
SP-1 Strong capacity to pay principal and interest. An issue determined to
possess a very strong capacity to pay debt service is given a plus (+)
designation.
SP-2 Satisfactory capacity to pay principal and interest, with some
vulnerability to adverse financial and economic changes over the term of the
notes.
SP-3 Speculative capacity to pay principal and interest.
DUAL RATINGS
Standard & Poor's may assign "dual" ratings to all debt issues that have a put
option or demand feature as part of their structure. The first component of the
rating addresses the likelihood of repayment of principal and interest as due,
and the second component of the rating addresses only the demand feature. The
first component of the rating can relate to either a short-term or long-term
transaction and accordingly use either short-term or long-term rating symbols.
The second component of the rating relates to the put option and is assigned a
short-term rating symbol (for example, 'AAA-1+' or 'A-1+/A-1'). With U.S.
municipal short-term demand debt, the U.S. municipal short-term note rating
symbols are used for the first component of the rating (for example,
'SP-1+/A-1+').
STANDARD & POOR'S DIVIDEND RANKINGS FOR COMMON STOCKS
Standard & Poor's has provided Earnings and Dividend Rankings, commonly
referred to as Quality Rankings, on common stocks since 1956. Quality Rankings
reflect the long-term growth and stability of a company's earnings and
dividends.
The Quality Rankings System attempts to capture the growth and stability of
earnings and dividends record in a single symbol. In assessing Quality
Rankings, Standard & Poor's recognizes that earnings and dividend performance
is the end result of the interplay of various factors such as products and
industry position, corporate resources and financial policy. Over the long run,
the record of earnings and dividend performance has a considerable bearing on
the relative quality of stocks.
The rankings, however, do not profess to reflect all of the factors, tangible
or intangible, that bear on stock quality.
The rankings are generated by a computerized system and are based on per-share
earnings and dividend records of the most recent 10 years - a period long
enough to measure significant secular growth, capture indications of basic
change in trend as they develop, encompass the full peak-to-peak range of the
business cycle, and include a bull and a bear market. Basic scores are computed
for earnings and dividends, and then adjusted as indicated by a set of
predetermined modifiers for change in the rate of growth, stability within
long-term trends, and cyclicality. Adjusted scores for earnings and dividends
are then combined to yield a final ranking.
The ranking system makes allowance for the fact that corporate size generally
imparts certain advantages from an investment standpoint. Conversely, minimum
size limits (in sales volume) are set for the various rankings. However, the
system provides for making exceptions where the
II-47
score reflects an outstanding earnings and dividend record. The following table
shows the letter classifications and brief descriptions of Quality Rankings.
A+ Highest B+ Average C Lowest
A High B Below Average D In Reorganization
A- Above Average B- Lower LIQ Liquidation
The ranking system grants some exceptions to the pure quantitative ranking.
Thus, if a company has not paid any dividend over the past 10 years, it is very
unlikely that it will rank higher than A-. In addition, companies may receive a
bonus score based on their sales volume. If a company omits a dividend on
preferred stock, it will receive a rank of no better than C that year. If a
company pays a dividend on the common stock, it is highly unlikely that the
rank will be below B-, even if it has incurred losses. In addition, if a
company files for bankruptcy, the model's rank is automatically changed to D.
FITCH RATINGS LONG-TERM RATING SCALES
INVESTMENT GRADE
AAA: Highest credit quality. `AAA' ratings denote the lowest expectation of
default risk. They are assigned only in cases of exceptionally strong capacity
for payment of financial commitments. This capacity is highly unlikely to be
adversely affected by foreseeable events.
AA: Very high credit quality. `AA' ratings denote expectations of very low
default risk. They indicate very strong capacity for payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable
events.
A: High credit quality. `A' ratings denote expectations of low default risk.
The capacity for payment of financial commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to adverse business or economic
conditions than is the case for higher ratings.
BBB: Good credit quality. `BBB' ratings indicate that expectations of default
risk are currently low. The capacity for payment of financial commitments is
considered adequate but adverse business or economic conditions are more likely
to impair this capacity.
SPECULATIVE GRADE
BB: Speculative. `BB' ratings indicate an elevated vulnerability to default
risk, particularly in the event of adverse changes in business or economic
conditions over time; however, business or financial flexibility exists which
supports the servicing of financial commitments.
B: Highly speculative. `B' ratings indicate that material default risk is
present, but a limited margin of safety remains. Financial commitments are
currently being met; however, capacity for continued payment is vulnerable to
deterioration in the business and economic environment.
CCC: Substantial credit risk. Default is a real possibility.
CC: Very high levels of credit risk. Default of some kind appears probable.
C: Exceptionally high levels of credit risk. Default is imminent or inevitable,
or the issuer is in standstill. Conditions that are indicative of a `C'
category rating for an issuer include:
a. the issuer has entered into a grace or cure period following non-payment of
a material financial obligation;
b. the issuer has entered into a temporary negotiated waiver or standstill
agreement following a payment default on a material financial obligation; or
c. Fitch Ratings otherwise believes a condition of `RD' or `D' to be imminent
or inevitable, including through the formal announcement of a distressed debt
exchange.
RD: Restricted default. `RD' ratings indicate an issuer that in Fitch Ratings'
opinion has experienced an uncured payment default on a bond, loan or other
material financial obligation but which has not entered into bankruptcy
filings, administration, receivership, liquidation or other formal winding-up
procedure, and which has not otherwise ceased operating. This would include:
a. the selective payment default on a specific class or currency of debt;
b. the uncured expiry of any applicable grace period, cure period or default
forbearance period following a payment default on a bank loan, capital markets
security or other material financial obligation;
c. the extension of multiple waivers or forbearance periods upon a payment
default on one or more material financial obligations, either in series or in
parallel; or
d. execution of a distressed debt exchange on one or more material financial
obligations.
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D: Default. `D' ratings indicate an issuer that in Fitch Ratings' opinion has
entered into bankruptcy filings, administration, receivership, liquidation or
other formal winding-up procedure, or which has otherwise ceased business.
Default ratings are not assigned prospectively to entities or their
obligations; within this context, non-payment on an instrument that contains a
deferral feature or grace period will generally not be considered a default
until after the expiration of the deferral or grace period, unless a default is
otherwise driven by bankruptcy or other similar circumstance, or by a
distressed debt exchange.
"Imminent" default typically refers to the occasion where a payment default has
been intimated by the issuer, and is all but inevitable. This may, for example,
be where an issuer has missed a scheduled payment, but (as is typical) has a
grace period during which it may cure the payment default. Another alternative
would be where an issuer has formally announced a distressed debt exchange, but
the date of the exchange still lies several days or weeks in the immediate
future.
In all cases, the assignment of a default rating reflects the agency's opinion
as to the most appropriate rating category consistent with the rest of its
universe of ratings, and may differ from the definition of default under the
terms of an issuer's financial obligations or local commercial practice.
NOTE: The modifiers "+" or "-" may be appended to a rating to denote relative
status within major rating categories. Such suffixes are not added to the `AAA'
Long-Term IDR category, or to Long-Term IDR categories below `B'.
FITCH RATINGS SHORT-TERM RATINGS
F1: Highest short-term credit quality. Indicates the strongest intrinsic
capacity for timely payment of financial commitments; may have an added "+" to
denote any exceptionally strong credit feature.
F2: Good short-term credit quality. Good intrinsic capacity for timely payment
of financial commitments.
F3: Fair short-term credit quality. The intrinsic capacity for timely payment
of financial commitments is adequate.
B: Speculative short-term credit quality. Minimal capacity for timely payment
of financial commitments, plus heightened vulnerability to near term adverse
changes in financial and economic conditions.
C: High short-term default risk. Default is a real possibility.
RD: Restricted default. Indicates an entity that has defaulted on one or more
of its financial commitments, although it continues to meet other financial
obligations. Typically applicable to entity ratings only.
D: Default. Indicates a broad-based default event for an entity, or the default
of a short-term obligation.
FITCH RATINGS MUNICIPAL SHORT-TERM RATINGS
The highest ratings for state and municipal short-term obligations are "F-1+,"
"F-1," and "F-2."
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PART II: APPENDIX II-A - BOARD MEMBERS AND OFFICERS
IDENTIFICATION AND BACKGROUND
The following table presents certain information regarding the Board Members of
the Trust/Corporation. Each Board Member's year of birth is set forth in
parentheses after his or her name. Unless otherwise noted, (i) each Board
Member has engaged in the principal occupation(s) noted in the table for at
least the most recent five years, although not necessarily in the same
capacity, and (ii) the address of each Board Member that is not an "interested
person" (as defined in the 1940 Act) of the Trust/Corporation or the Advisor
(each, an "Independent Board Member") is c/o Kenneth C. Froewiss, Chairman, DWS
Mutual Funds, P.O. Box 78, Short Hills, NJ 07078. The term of office for each
Board Member is until the election and qualification of a successor, or until
such Board Member sooner dies, resigns, is removed or as otherwise provided in
the governing documents of the Trust/Corporation. Because the fund does not
hold an annual meeting of shareholders, each Board Member will hold office for
an indeterminate period.
INDEPENDENT BOARD MEMBERS
NAME, YEAR OF BIRTH,
POSITION NUMBER OF
WITH THE TRUST/CORPORATION FUNDS IN DWS
AND LENGTH OF TIME BUSINESS EXPERIENCE AND FUND COMPLEX OTHER DIRECTORSHIPS
SERVED/(1)/ DIRECTORSHIPS DURING THE PAST 5 YEARS OVERSEEN HELD BY BOARD MEMBER
Kenneth C. Froewiss (1945) Adjunct Professor of Finance, NYU Stern 103 _
Chairperson since 2013, and School of Business (September 2009-
Board Member since 2001 present; Clinical Professor from 1997-
September 2009); Member, Finance
Committee, Association for Asian Studies
(2002-present); Director, Mitsui Sumitomo
Insurance Group (US) (2004-present); prior
thereto, Managing Director, J.P. Morgan
(investment banking firm) (until 1996)
William McClayton (1944) Private equity investor (since October 2009); 103 _
Vice Chairperson since previously: Managing Director, Diamond
2013, and Board Member Management & Technology Consultants, Inc.
since 2004 (global consulting firm) (2001-2009);
Directorship: Board of Managers, YMCA of
Metropolitan Chicago; formerly: Senior
Partner, Arthur Andersen LLP (accounting)
(1966-2001); Trustee, Ravinia Festival
John W. Ballantine (1946) Retired; formerly: Executive Vice President 103 Chairman of the Board,
Board Member since 1999 and Chief Risk Management Officer, First Healthways Inc./(2)/ (provider
Chicago NBD Corporation/The First National of disease and care
Bank of Chicago (1996-1998); Executive Vice management services) (2003-
President and Head of International Banking present); Portland General
(1995-1996); former Directorships: Stockwell Electric/(2)/ (utility company)
Capital Investments PLC (private equity); (2003-present)
First Oak Brook Bancshares, Inc. and Oak
Brook Bank; Prisma Energy International
Henry P. Becton, Jr. (1943) Vice Chair and former President, WGBH 103 Lead Director, Becton
Board Member since 1990 Educational Foundation; Directorships: Public Dickinson and Company/(2)/
Radio International; Public Radio Exchange (medical technology
(PRX); North Bennett Street School (Boston); company);
former Directorships: Belo Corporation/(2)/
(media company); The PBS Foundation;
Association of Public Television Stations;
Boston Museum of Science; American
Public Television; Concord Academy; New
England Aquarium; Mass. Corporation for
Educational Telecommunications; Committee
for Economic Development; Public
Broadcasting Service; Connecticut College
II-50
NAME, YEAR OF BIRTH,
POSITION NUMBER OF
WITH THE TRUST/CORPORATION FUNDS IN DWS
AND LENGTH OF TIME BUSINESS EXPERIENCE AND FUND COMPLEX OTHER DIRECTORSHIPS
SERVED/(1)/ DIRECTORSHIPS DURING THE PAST 5 YEARS OVERSEEN HELD BY BOARD MEMBER
Dawn-Marie Driscoll (1946) Emeritus Executive Fellow, Center for 103 _
Board Member since 1987 Business Ethics, Bentley University;
formerly: Partner, Palmer & Dodge (1988-
1990); Vice President of Corporate Affairs
and General Counsel, Filene's (1978-1988);
Directorships: Director of ICI Mutual
Insurance Company (since 2007); Advisory
Board, Center for Business Ethics, Bentley
University; Trustee and former Chairman of
the Board, Southwest Florida Community
Foundation (charitable organization); former
Directorships: Sun Capital Advisers Trust
(mutual funds) (2007-2012); Investment
Company Institute (audit, executive,
nominating committees) and Independent
Directors Council (governance, executive
committees)
Keith R. Fox, CFA (1954) Managing General Partner, Exeter Capital 103 _
Board Member since 1996 Partners (a series of private investment
funds) (since 1986); Directorships:
Progressive International Corporation
(kitchen goods importer and distributor); The
Kennel Shop (retailer); former Chairman,
National Association of Small Business
Investment Companies; former
Directorships: BoxTop Media Inc.
(advertising); Sun Capital Advisers Trust
(mutual funds) (2011-2012)
Paul K. Freeman (1950) Consultant, World Bank/Inter-American 103 _
Board Member since 1993 Development Bank; Executive and Governing
Council of the Independent Directors Council
(Chairman of Education Committee);
formerly: Project Leader, International
Institute for Applied Systems Analysis (1998-
2001); Chief Executive Officer, The Eric
Group, Inc. (environmental insurance) (1986-
1998); Directorships: Denver Zoo Foundation
(December 2012-present); former
Directorships: Prisma Energy International
Richard J. Herring (1946) Jacob Safra Professor of International 103 Director, Aberdeen Singapore
Board Member since 1990 Banking and Professor, Finance Department, and Japan Funds (since
The Wharton School, University of 2007), Independent Director
Pennsylvania (since July 1972); Co-Director, of Barclays Bank Delaware
Wharton Financial Institutions Center; Co- (since September 2010)
Chair, U.S. Shadow Financial Regulatory
Committee; Executive Director, Financial
Economists Roundtable; formerly: Vice Dean
and Director, Wharton Undergraduate
Division (July 1995-June 2000); Director,
Lauder Institute of International
Management Studies (July 2000-June 2006)
II-51
NAME, YEAR OF BIRTH,
POSITION NUMBER OF
WITH THE TRUST/CORPORATION FUNDS IN DWS
AND LENGTH OF TIME BUSINESS EXPERIENCE AND FUND COMPLEX OTHER DIRECTORSHIPS
SERVED/(1)/ DIRECTORSHIPS DURING THE PAST 5 YEARS OVERSEEN HELD BY BOARD MEMBER
Rebecca W. Rimel (1951) President and Chief Executive Officer, The 103 Director, Becton Dickinson
Board Member since 1995 Pew Charitable Trusts (charitable and Company/(2)/ (medical
organization) (1994 to present); formerly: technology company) (2012-
Executive Vice President, The Glenmede present); Director,
Trust Company (investment trust and wealth BioTelemetry Inc./(2)/
management) (1983-2004); Board Member, (healthcare) (2009-present)
Investor Education (charitable organization)
(2004-2005); Trustee, Executive Committee,
Philadelphia Chamber of Commerce (2001-
2007); Director, Viasys Health Care/(2)/
(January 2007-June 2007); Trustee, Thomas
Jefferson Foundation (charitable organization)
(1994 to 2012)
William N. Searcy, Jr. (1946) Private investor since October 2003; 103 _
Board Member since 1993 formerly: Pension & Savings Trust Officer,
Sprint Corporation/(2)/ (telecommunications)
(November 1989-September 2003); Trustee,
Sun Capital Advisers Trust (mutual funds)
(1998-2012)
Jean Gleason Retired; formerly: Consultant (1997-2001); 103 _
Stromberg(1943) Director, Financial Markets US Government
Board Member since 1997 Accountability Office (1996-1997); Partner,
Norton Rose Fulbright, L.L.P. (law firm)
(1978-1996); Directorships: The William and
Flora Hewlett Foundation; former
Directorships: Service Source, Inc., Mutual
Fund Directors Forum (2002-2004), American
Bar Retirement Association (funding vehicle
for retirement plans) (1987-1990 and 1994-
1996)
Robert H. Wadsworth (1940) President, Robert H. Wadsworth & 106 _
Board Member since 1999 Associates, Inc. (consulting firm) (1983 to
present); Director, The Phoenix Boys Choir
Association
OFFICERS/(4)/
NAME, YEAR OF BIRTH, POSITION
WITH THE TRUST/CORPORATION BUSINESS EXPERIENCE AND
AND LENGTH OF TIME SERVED/(5)/ DIRECTORSHIPS DURING THE PAST 5 YEARS
Brian E. Binder/(8)/ (1972) Managing Director/(3)/ and Head of Fund Administration, Deutsche Asset & Wealth
President and Chief Executive Management (2013-present); formerly: Head of Business Management and Consulting
Officer, 2013-present at Invesco, Ltd. (2010-2012); Chief Administrative Officer, Van Kampen Funds Inc.
(2008-2010); and Chief Administrative Officer, Morgan Stanley Investment
Management Americas Distribution (2003-2008)
John Millette/(7)/ (1962) Director/(3)/, Deutsche Asset & Wealth Management
Vice President and Secretary,
1999-present
Paul H. Schubert/(6)/ (1963) Managing Director/(3)/, Deutsche Asset & Wealth Management (since July 2004);
Chief Financial Officer, 2004- formerly: Executive Director, Head of Mutual Fund Services and Treasurer for UBS
present Family of Funds (1998-2004); Vice President and Director of Mutual Fund Finance at
Treasurer, 2005-present UBS Global Asset Management (1994-1998)
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NAME, YEAR OF BIRTH, POSITION
WITH THE TRUST/CORPORATION BUSINESS EXPERIENCE AND
AND LENGTH OF TIME SERVED/(5)/ DIRECTORSHIPS DURING THE PAST 5 YEARS
Caroline Pearson/(7)/ (1962) Managing Director/(3)/, Deutsche Asset & Wealth Management; formerly: Assistant
Chief Legal Officer, 2010- Secretary for DWS family of funds (1997-2010)
present
Melinda Morrow/(6)/ (1970) Director/(3)/, Deutsche Asset & Wealth Management
Vice President, 2012-present
Hepsen Uzcan/(7)/ (1974) Director/(3)/, Deutsche Asset & Wealth Management
Assistant Secretary, 2013-
present
Paul Antosca/(7) /(1957) Director/(3)/, Deutsche Asset & Wealth Management
Assistant Treasurer, 2007-
present
Jack Clark /(7)/ (1967) Director/(3)/, Deutsche Asset & Wealth Management
Assistant Treasurer, 2007-
present
Diane Kenneally/(7)/ (1966) Director/(3)/, Deutsche Asset & Wealth Management
Assistant Treasurer, 2007-
present
John Caruso/(6)/ (1965) Managing Director/(3)/, Deutsche Asset & Wealth Management
Anti-Money Laundering
Compliance Officer, 2010-
present
Robert Kloby/(6)/ (1962) Managing Director/(3)/, Deutsche Asset & Wealth Management
Chief Compliance Officer,
2006-present
/(1)/ The length of time served represents the year in which the Board Member
joined the board of one or more DWS funds currently overseen by the Board.
/(2)/ A publicly held company with securities registered pursuant to Section 12
of the Securities Exchange Act of 1934.
/(3)/ Executive title, not a board directorship.
/(4)/ As a result of their respective positions held with the Advisor, these
individuals are considered "interested persons" of the Advisor within the
meaning of the 1940 Act. Interested persons receive no compensation from
the fund.
/(5)/ The length of time served represents the year in which the officer was
first elected in such capacity for one or more DWS funds.
/(6)/ Address: 60 Wall Street, New York, New York 10005.
/(7)/ Address: One Beacon Street, Boston, Massachusetts 02108.
/(8)/ Address: 222 South Riverside Plaza, Chicago, Illinois 60606.
Certain officers hold similar positions for other investment companies for
which DIMA or an affiliate serves as the Advisor.
OFFICER'S ROLE WITH PRINCIPAL UNDERWRITER: DWS INVESTMENTS DISTRIBUTORS, INC.
Paul H. Schubert: Vice President
Caroline Pearson: Secretary
John Caruso: AML Compliance Officer
BOARD MEMBER QUALIFICATIONS
The Nominating and Governance Committee is responsible for recommending
proposed nominees for election to the full Board for its approval. In
recommending the election of the current Board Members, the Committee generally
considered the educational, business and professional experience of each Board
Member in determining his or her qualifications to serve as a Board Member,
including the Board Member's record of service as a director or trustee of
public and private organizations. In the case of most Board Members, this
included their many years of previous service as a trustee of certain of the
DWS funds. This previous service has provided these Board Members with a
valuable understanding of the history of the DWS funds and the DIMA
organization and has also served to demonstrate
II-53
their high level of diligence and commitment to the interests of fund
shareholders and their ability to work effectively and collegially with other
members of the Board. The Committee also considered, among other factors, the
particular attributes described below with respect to the various individual
Board Members:
John W. Ballantine - Mr. Ballantine's experience in banking, financial risk
management and investments acquired in the course of his service as a senior
executive of a major US bank.
Henry P. Becton, Jr. - Mr. Becton's professional training and experience as an
attorney, his experience as the chief executive officer of a major public media
company and his experience as lead director of two NYSE companies, including
his service at various times as the chair of the audit, compensation and
nominating committees of one or both of such boards.
Dawn-Marie Driscoll - Ms. Driscoll's professional training and experience as an
attorney, her expertise as a consultant, professor and author on the subject of
business ethics, her service as a member of the executive committee of the
Independent Directors Council of the Investment Company Institute and her
experience as a director of an insurance company serving the mutual fund
industry.
Keith R. Fox - Mr. Fox's experience as the chairman and a director of various
private operating companies and investment partnerships and his experience as a
director and audit committee member of several public companies. In addition,
he holds the Chartered Financial Analyst designation.
Paul K. Freeman - Dr. Freeman's professional training and experience as an
attorney and an economist, his experience as the founder and chief executive
officer of an insurance company, his experience as a senior executive and
consultant for various companies focusing on matters relating to risk
management and his service on the Independent Directors Council of the
Investment Company Institute.
Kenneth C. Froewiss - Dr. Froewiss' professional training and experience as an
economist, his experience in finance acquired in various professional positions
with governmental and private banking organizations and his experience as a
professor of finance at a leading business school.
Richard J. Herring - Mr. Herring's experience as a professor of finance at a
leading business school and his service as an advisor to various professional
and governmental organizations.
William McClayton - Mr. McClayton's professional training and experience in
public accounting, including his service as a senior partner of a major public
accounting firm focusing on financial markets companies and his service as a
senior executive of a public management consulting firm.
Rebecca W. Rimel - Ms. Rimel's experience on a broad range of public policy
issues acquired during her service as the executive director of a major
foundation and her experience as a director of several public companies.
William N. Searcy, Jr. - Mr. Searcy's experience as an investment officer for
various major public company retirement plans, which included evaluation of
unaffiliated investment advisers and supervision of various administrative and
accounting functions.
Jean Gleason Stromberg - Ms. Stromberg's professional training and experience
as an attorney specializing in federal securities law, her service in a senior
position with the Securities and Exchange Commission and the US Government
Accountability Office and her experience as a director and audit committee
member of several major non-profit organizations.
Robert H. Wadsworth - Mr. Wadsworth's experience as an owner and chief
executive officer of various businesses serving the mutual fund industry,
including a registered broker-dealer and a registered transfer agent, and his
previous service as a director and/or senior executive officer of several
mutual funds.
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PART II: APPENDIX II-B - PORTFOLIO MANAGEMENT COMPENSATION
FOR FUNDS ADVISED BY DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC. OR ITS
AFFILIATES
Each fund is managed by a team of investment professionals who each play an
important role in a fund's management process. Team members work together to
develop investment strategies and select securities for a fund. This team works
for the Advisor or its affiliates and is supported by a large staff of
economists, research analysts, traders and other investment specialists. The
Advisor or its affiliates believe(s) its team approach benefits investors by
bringing together many disciplines and leveraging its extensive resources. Team
members with primary responsibility for management of a fund, as well as team
members who have other ongoing management responsibilities for a fund, are
identified in each fund's prospectus, as of the date of a fund's prospectus.
Composition of the team may change over time, and shareholders and investors
will be notified of changes affecting individuals with primary fund management
responsibility.
COMPENSATION OF PORTFOLIO MANAGERS
Portfolio managers are paid on a Total Compensation basis, which includes: (i)
fixed pay (base salary), which is linked to job function, responsibilities and
internal and external peer comparison, and (ii) variable compensation, which is
linked to investment performance, individual contribution, and the overall
financial results of both Deutsche Asset & Wealth Management and Deutsche Bank
AG. Variable compensation can be delivered via a short-term and/or long-term
vehicle, namely cash, equity upfront awards, restricted equity awards, and/or
restricted incentive awards. Additionally, to better align the interests of
investors and portfolio managers, a portion of the long-term variable
compensation that portfolio managers receive will be designated for investment
in shares of the funds they manage, where possible. Variable compensation
comprises a greater proportion of total compensation as a portfolio manager's
seniority and total compensation level increase. The proportion of variable
compensation delivered via a long-term incentive award, which is subject to
clawback, increases significantly as the amount of variable compensation
increases. All variable compensation delivered via long-term incentive award is
subject to clawback.
To evaluate its investment professionals, Deutsche Asset & Wealth Management
reviews investment performance for all accounts managed in relation to both
account peer group and benchmark related data (i.e., appropriate Morningstar
peer group universes and/or benchmark index(es) with respect to each account).
The ultimate goal of this process is to evaluate the degree to which investment
professionals deliver investment performance that meets or exceeds their
clients' risk and return objectives. When determining Total Compensation,
Deutsche Asset & Wealth Management considers a number of quantitative and
qualitative factors:
o Quantitative measures (e.g. one-, three- and five-year pre-tax returns
versus the benchmark and appropriate peer group, taking risk targets into
account) are utilized to measure performance.
o Qualitative measures (e.g. adherence to, as well as contributions to, the
enhancement of the investment process) are included in the performance
review.
o Other factors (e.g. non-investment related performance, teamwork, adherence
to compliance rules, risk management and 'living the values" of Deutsche
Asset & Wealth Management) are included as part of a discretionary
component of the review process, giving management the ability to consider
additional markers of performance on a subjective basis.
CONFLICTS
Real, potential or apparent conflicts of interest may arise when a portfolio
manager has day-to-day portfolio management responsibilities with respect to
more than one fund or account, including the following:
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o Certain investments may be appropriate for a fund and also for other clients
advised by the Advisor, including other client accounts managed by a fund's
portfolio management team. Investment decisions for a fund and other
clients are made with a view to achieving their respective investment
objectives and after consideration of such factors as their current
holdings, availability of cash for investment and the size of their
investments generally. A particular security may be bought or sold for only
one client or in different amounts and at different times for more than one
but less than all clients. Likewise, because clients of the Advisor may
have differing investment strategies, a particular security may be bought
for one or more clients when one or more other clients are selling the
security. The investment results achieved for a fund may differ from the
results achieved for other clients of the Advisor. In addition, purchases
or sales of the same security may be made for two or more clients on the
same day. In such event, such transactions will be allocated among the
clients in a manner believed by the Advisor to be most equitable to each
client, generally utilizing a pro rata allocation methodology. In some
cases, the allocation procedure could potentially have an adverse effect or
positive effect on the price or amount of the securities purchased or sold
by a fund. Purchase and sale orders for a fund may be combined with those
of other clients of the Advisor in the interest of achieving the most
favorable net results to a fund and the other clients.
o To the extent that a portfolio manager has responsibilities for managing
multiple client accounts, a portfolio manager will need to divide time and
attention among relevant accounts. The Advisor attempts to minimize these
conflicts by aligning its portfolio management teams by investment strategy
and by employing similar investment models across multiple client accounts.
o In some cases, an apparent conflict may arise where the Advisor has an
incentive, such as a performance-based fee, in managing one account and not
with respect to other accounts it manages. The Advisor will not determine
allocations based on whether it receives a performance-based fee from the
client. Additionally, the Advisor has in place supervisory oversight
processes to periodically monitor performance deviations for accounts with
like strategies.
o The Advisor and its affiliates and the investment team of a fund may manage
other mutual funds and separate accounts on a long only or a long-short
basis. The simultaneous management of long and short portfolios creates
potential conflicts of interest including the risk that short sale activity
could adversely affect the market value of the long positions (and vice
versa), the risk arising from sequential orders in long and short
positions, and the risks associated with receiving opposing orders at the
same time. The Advisor has adopted procedures that it believes are
reasonably designed to mitigate these and other potential conflicts of
interest. Included in these procedures are specific guidelines developed to
provide fair and equitable treatment for all clients whose accounts are
managed by each fund's portfolio management team. The Advisor and the
portfolio management team have established monitoring procedures, a
protocol for supervisory reviews, as well as compliance oversight to ensure
that potential conflicts of interest relating to this type of activity are
properly addressed.
The Advisor is owned by Deutsche Bank AG, a multi-national financial services
company. Therefore, the Advisor is affiliated with a variety of entities that
provide, and/or engage in commercial banking, insurance, brokerage, investment
banking, financial advisory, broker-dealer activities (including sales and
trading), hedge funds, real estate and private equity investing, in addition to
the provision of investment management services to institutional and individual
investors. Since Deutsche Bank AG, its affiliates, directors, officers and
employees (the "Firm") are engaged in businesses and have interests in addition
to managing asset management accounts, such wide ranging activities involve
real, potential or apparent conflicts of interest. These interests and
activities include potential advisory, transactional and financial activities
and other interests in securities and companies that may be directly or
indirectly purchased or sold by the Firm for its clients' advisory accounts.
The Advisor may take investment positions in securities in which other clients
or related persons within the Firm have different investment positions. There
may be instances in which the Advisor is purchasing or selling for its client
accounts, or pursuing an outcome in the context of a workout or restructuring
with respect to, securities in which the Firm is undertaking the same or
differing strategy in other businesses or other client accounts. These are
considerations of which advisory clients should be aware and which may cause
conflicts that could be to the disadvantage of the Advisor's advisory clients,
including the Fund. The Advisor has instituted business and compliance
policies, procedures and disclosures that are designed to identify, monitor and
mitigate conflicts of interest and, as appropriate, to report them to a fund's
Board.
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FOR FUNDS ADVISED BY ATLANTIC INVESTMENT MANAGEMENT, INC. (ATLANTIC)
COMPENSATION
Atlantic's compensation program is designed to retain and attract leading
investment talent. The various components of the compensation program for
individual members of the investment team include a competitive base salary and
an annual discretionary bonus. Discretionary bonuses are based on numerous
factors including the overall performance of the strategy and the firm, and
consideration of a professional's long-term potential at the firm. Individual
members of the investment team are not compensated based on individual profit
and loss responsibilities.
CONFLICTS
Atlantic may from time to time act in a similar capacity to, or otherwise be
involved in, other investment products and accounts, some of which may have
similar investment objectives to those of a fund. Thus, each may be subject to
conflicting demands in respect of allocating management time, services and
other functions between the activities each has undertaken with respect to a
fund and the activities each has undertaken or will undertake with respect to
other investment products and accounts. It is possible that an investment
product or account advised by Atlantic may, in the course of their respective
businesses, have potential conflicts of interest with a fund.
Atlantic may give advice and recommend securities to others investment products
and accounts, which advice or securities may be identical to, or differ from,
advice given to, or securities recommended or bought for, a fund, even though
their investment objectives may be the same or similar. Such other investment
products and accounts may be subject to different fees, including performance
based fees, and Atlantic or its affiliates may own interests in some of such
other investment products and accounts. In the ordinary course of its
activities, Atlantic may, from time to time, buy or sell for other investment
products and accounts the same securities as those traded by a fund.
Atlantic will determine how investment and trading opportunities are allocated
among the accounts that it manages, even though it may face potential conflicts
of interest in making such allocations. Atlantic will act in a manner that it
considers fair and equitable in allocating investment opportunities among a
fund and the other investment products and accounts it manages on behalf of its
clients, although situations may arise in which a fund may be disadvantaged,
such as the inability of the market fully to absorb orders for the purchase or
sale of particular securities placed by Atlantic for a fund and its other
investment products and accounts at prices and in quantities that would be
obtainable if the same were being placed only for a fund. Atlantic may
aggregate orders of a fund with orders for its other investment products and
accounts. Such aggregation of orders may not always be to the benefit of a
fund.
FOR FUNDS ADVISED BY CHILTON INVESTMENT COMPANY, LLC (CHILTON)
COMPENSATION
Investment professionals are compensated with salary, performance bonus and, in
some cases, share ownership in Chilton. Bonuses are based on numerous factors
including the profit and loss of long and short ideas contributed, the overall
performance of the strategy and the firm, and consideration of a professional's
long-term potential at the firm. Other employees are compensated with salary,
performance bonus and, in some cases, share ownership in Chilton. Bonuses are
generally based on individual performance and the overall performance of the
firm. In all categories above, a significant portion of the bonus compensation
may be subject to a three year deferral period.
CONFLICTS
The employees and principals of Chilton and its affiliates are not obligated to
devote their full time to any fund, but will devote such time as Chilton, in
its sole discretion, deems necessary to carry out the operations of the fund
effectively.
Chilton, its affiliates and their employees and principals act as investment
managers for other investment funds and accounts, and may conduct any other
business activities, including any business with respect to securities.
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Certain of the employees and principals of Chilton may acquire substantial
investments in certain other investment funds managed by Chilton and its
affiliates and conflicts of interest may arise in allocating management time,
services or functions among the funds managed by Chilton, including funds in
which Chilton's employees and/or principals may have a greater financial
interest.
There may also be a conflict of interest in the allocation of investment
opportunities among a fund and any other investment funds or accounts
(including proprietary accounts) managed by Chilton and its affiliates. For
example, there may be instances where an investment opportunity is limited or
the availability of an investment at an acceptable price may be limited.
Chilton and its affiliates will attempt to allocate investment opportunities in
a manner that is in the best interests of all the investment funds or accounts
involved in light of the circumstances prevailing at that time and Chilton's
and its affiliates' applicable fiduciary duties. However, there can be no
assurance that an investment opportunity that comes to the attention of Chilton
and its affiliates will not be allocated (i) wholly or primarily to another
fund or account (including a proprietary account) managed by Chilton or its
affiliates, with a fund being unable to participate in such investment
opportunity or participating only on a limited basis, or (ii) wholly or
primarily to a fund, with any other fund or account (including a proprietary
account) managed by Chilton or its affiliates not sharing the risks of such
investment.
Chilton or its affiliates may on occasion give advice or take action with
respect to other investment funds or accounts that differs from the advice
given with respect to the fund (especially where the investment policies
differ). For example, the fund could take a long position on a security while
another fund or account managed by Chilton or its affiliates, whether for
hedging or other purposes, takes a short position on such security. Thus, the
transactions and portfolio strategies Chilton and its affiliates may use for
other clients could conflict with the transactions and strategies employed by
Chilton in managing the fund and affect the prices and availability of the
securities and other financial instruments in which the fund invests. Further,
the fund may, from time to time, make an investment in a company in which one
or more other clients of Chilton or its affiliates invests in a different part
of the capital structure of such company. There may be instances where such a
portfolio company becomes insolvent or bankrupt and where the interest of the
fund and the other clients of Chilton and/or its affiliates conflict. It is
possible that in a bankruptcy proceeding, the fund's interest may be
subordinated or otherwise adversely affected by virtue of such other clients'
involvement and actions relating to its investment taken by Chilton or its
affiliates. In addition, certain principals and employees of Chilton or its
affiliates may serve on creditor or equity committees or in an advisory role
for a company that is anticipating filing or has filed for protection under
Chapter 11 of the US Bankruptcy Code (or similar non-US law). Under these
circumstances, Chilton or its affiliate may be limited in making investment
decisions on behalf of the fund if the fund holds an interest in such company,
and the fund may be adversely affected by the actions taken by the principals
or employees of Chilton or the affiliate in connection with carrying out their
duties on such committees or in such roles.
Chilton, its affiliates or their employees or principals may come into
possession of material nonpublic information (including in connection with
managing other clients' accounts). The possession of such information may limit
the ability of the fund to buy or sell a security or otherwise to participate
in an investment opportunity.
In connection with managing certain funds and accounts, Chilton receives
performance-based compensation. This may create a conflict of interest for
Chilton in rendering advice because it may have an incentive to choose riskier
investments for and/or favor the funds and accounts for which it is entitled to
performance-based compensation over those funds or accounts which charge only
an asset-based fee. Chilton endeavors to design, implement and consistently
apply procedures, including detailed allocation procedures, to ensure that,
over time, all funds and accounts are treated fairly and equitably and to
prevent conflicts from unduly influencing the allocation of investment
opportunities among client accounts. Further, Chilton from time to time reviews
the allocations among funds and accounts and the performance of funds and
accounts in an effort to ensure that higher fee paying funds and accounts are
not unfairly favored.
The fund may participate in transactions in which Chilton (or any of its
affiliates or their employees and principals) or any shareholder is directly or
indirectly interested. In connection with such transactions, the fund, on the
one hand, and, its affiliates, their employees and principals or shareholders,
on the other hand, may have conflicting interests. Chilton, its affiliates,
their employees or principals are not prohibited from investing for their own
account (although Chilton's policies generally prohibit employees from
purchasing equity securities after they join Chilton). As a result, Chilton,
its affiliates and their employees and principals may hold positions in
securities that are owned by the fund
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or considered by the fund. In such circumstances, liquidity and concentration
considerations may limit Chilton's ability to add to the position on behalf of
the fund or to dispose of the position readily. With respect to their personal
or proprietary accounts, Chilton, its affiliates and their employees and
principals might take or hold investment positions different from, or contrary
to, those taken by the fund.
FOR FUNDS ADVISED BY DREMAN VALUE MANAGEMENT (DREMAN)
COMPENSATION
The Funds have been advised that Dreman has implemented a compensation plan
that is designed to attract and retain experienced and exceptional
professionals. Dreman has a competitive compensation plan made up of a fixed
salary component, a variable bonus component, and comprehensive benefits. A
profit sharing plan and ownership in the firm is currently offered to the
Dreman partners. The variable bonus allows Dreman to compensate its investment
professionals based on results, which aligns their interests directly with
their clients' interests.
Base salaries are a factor of job function. Dreman offers competitive pay by
many measures, including compensation surveys compiled for the asset management
industry and the broader financial services industry in the New York City area.
Variable bonuses, which are based on performance, may include cash and/or the
possibility of stock grants. There are many measures of performance. For
Portfolio Managers and associate Portfolio Managers, success is defined largely
by their ability to generate superior investment results for Dreman's clients
relative to their benchmarks, peer group and client objectives.
CONFLICTS
Dreman manages its clients' accounts using a contrarian value investment
strategy. For most of its investment strategies, Dreman uses a model portfolio
and rebalances its clients' accounts whenever changes are made to the model
portfolio. In addition, to the extent practicable Dreman aggregates its trades
and allocates them to client accounts in an equitable manner. Dreman strongly
believes that aggregating its trade orders protects all clients from being
disadvantaged by price or time of execution. The model portfolio approach and
the trade aggregation policy of Dreman seek to eliminate conflicts of interest
that could arise when a portfolio manager has day-to-day portfolio management
responsibilities with respect to more than one fund or account. Dreman does not
receive any performance-based fees from any of its accounts.
Dreman investment professionals are compensated in the same manner for all
client accounts irrespective of the type of account.
FOR FUNDS ADVISED BY FISCHER FRANCIS TREES & WATTS, INC. (FFTW)
COMPENSATION
FFTW aims to provide all staff with total compensation packages that are
competitive with the applicable local market. Aside from creating a positive
and supportive work environment, FFTW fully appreciates the need for financial
incentives to retain key individuals. Bonus allocations are based primarily on
quantitative parameters, specifically portfolio performance and asset growth -
and to a lesser extent on qualitative factors that include teamwork,
contribution to other portfolio teams, client service support, etc. The general
aim is to provide staff with total compensation packages that are competitive
with applicable markets across all functional areas.
In a typical year, FFTW would expect total compensation to be comprised of a
40% base salary and a 60% performance bonus. Major drivers of the performance
bonus are FFTW's business results and the individual's contribution to
achieving his or her team results. For retention purposes, a portion of the
cash bonus above a certain threshold is deferred over a three year period, with
50% of the ultimate payout tied to the performance of BNP Paribas stock (BNP
Paribas is the ultimate parent of FFTW). A second component of the bonus for
key investment professionals is a "top up" long term incentive plan that is
deferred over a three year period and is tied to the performance of BNP Paribas
Investment
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Partners, the global brand name for BNP Paribas' asset management business (in
effect, creating a phantom equity-like program). This creates an overall
compensation program that includes individual, FFTW, BNPP Investment Partners
and BNP Paribas performance components which FFTW believes aligns the interests
of all parties.
CONFLICTS
Conflicts of interest of the type that may arise when an investment adviser
serves as an adviser to both a mutual fund and to other segregated accounts are
minimized at FFTW by FFTW's investment management decision making process and
FFTW's trade allocation policy. FFTW's investment team is organized into teams
by product area. The teams are responsible for determining strategy for all
portfolios within their group. Views are debated and strategy is determined in
weekly strategy sessions. Strategy and positions are expressed in terms of risk
exposures relative to a benchmark which are then translated into portfolio
positions according to each client's benchmark and guideline parameters.
Every portfolio, including mutual fund portfolios, is assigned to a Portfolio
Manager within the relevant product area. The Portfolio Manager is responsible
for implementation of the product strategy in each portfolio, subject to
benchmark limitations and guideline parameters. The Portfolio Manager either
executes trades in the portfolio himself or delegates to another member of the
investment team who assumes responsibility for issue selection within that
sector. The process ensures that investment decisions for specific portfolios
are consistent with the strategy for the product area, taking into account the
individual portfolio's benchmark, risk parameters and investment guidelines.
In terms of setting a portfolio's risk parameters, these are established at the
portfolio's inception, based upon the client's investment guidelines and
overall risk preferences. The Portfolio Manager and the Client Portfolio
Manager monitor the portfolio's compliance with such parameters on an ongoing
basis, while ultimately the Compliance group assumes responsibility for
ensuring guideline compliance.
The process seeks to ensure that strategy is determined at the product level
and executed across all portfolios within that product grouping, subject only
to pre-determined risk parameters and to client guideline and benchmark
parameters.
In addition, FFTW executes trades on behalf of all similarly managed accounts
within a product group on a block basis. Block transactions are allocated
fairly and equitably across all participating accounts utilizing an automated,
non-preferential proprietary trade execution system that allocated the trades
according to each participating portfolio's size and pre-determined,
pre-programmed risk profiles. The automated allocation system seeks to ensure
that no managed account is favored with respect to the selection of securities
or timing of purchases or sales.
Trade allocation and best execution practices are monitored and reviewed on a
monthly basis as part of the Global Compliance Monitoring Program, which is
carried out independently by FFTW's Compliance group. This review takes into
consideration FFTW's trading procedures and the nature of the fixed income
markets. Trade execution prices, for a sampling of trades, are compared with an
independent source. An explanation is sought from the investment professional
in the event of significant variance between the trade execution price and the
price determined by the independent source. The variance is noted and is
included in a report issued to senior management on a quarterly basis. Any
deviations which occurred from FFTW's policy to allocate investment
opportunities fairly and equitably across all participating accounts, would be
identified during this review.
Finally, on an annual basis, the firm engages an independent auditor to perform
a SSAE 16 (formerly a SAS 70 Type II) review on the operating effectiveness of
the firm's internal controls.
FOR FUNDS ADVISED BY HENDERSON ALTERNATIVE INVESTMENT ADVISOR LIMITED
(HENDERSON)
COMPENSATION
Following is a summary of the compensation received by Henderson's investment
professionals for all accounts managed and not just for the Fund. Henderson's
investment professionals have significant short and long-term financial
incentives. In general, the compensation plan is based on:
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o Pre-defined, objective, measurable investment performance
o Performance goals that are ambitious, but attainable
o The plan provides an incentive for appropriately aggressive portfolio
management to achieve maximum feasible results within the portfolio's risk
return parameters
The compensation structure consists of four primary elements. There is a
competitive base salary together with a short-term incentive bonus plan. In
addition, there are two further incentive-based packages for senior
international investment professionals that reward staff on both individual and
team performance, reflecting profitable asset growth. "Profitable asset growth"
refers to the increase in adviser revenues generated less the increase in
costs. It is typically calculated per adviser team on a calendar year basis.
Members of the relevant team receive a share of this growth, which is typically
paid over a three year period.
Some managers are granted an award in a long-term incentive program that is
based on several factors, including the profitability of Henderson Global
Investors. Additionally, some managers participate in the distribution of
performance-related fees if such funds are structured accordingly. Currently, a
fund does not charge performance-related fees.
A summary of the compensation package is as follows:
o Basic Salaries: in line with or better than the industry average
o Short Term Incentive Bonus (STI): the STI bonus is usually the majority of
the variable component, based largely on investment performance; for a
typical fund manager, it can vary between 50 percent and 150 percent of the
salary
o Growth Equity Bonus Plan (GEB): the GEB is based on a team's contribution to
a rise in profits, it is designed to reward profitable asset growth
o Long Term Incentive Plan: as described above
o Employee Share Plans: from year to year, managers may be able to invest part
of their remuneration in various share schemes which are then partially
matched by Henderson
Performance-related fees: for some funds, any performance related fee earned by
the firm is shared with individuals generating that performance. If a
performance-related fee applies, compensation is based solely on performance
and its terms are made public in the fund's relevant disclosure document (i.e.,
prospectus or offering memorandum). Performance-related fees may vary from fund
to fund but are typically measured over a one year period and compare the
fund's returns to either (i) a peer group, (ii) an index or (iii) an absolute
return.
CONFLICTS
Henderson seeks to foster a reputation for integrity and professionalism. That
reputation is a vital business asset. The confidence and trust placed in
Henderson by investors is something that is highly valued and must be
protected. As a result, any activity that creates any actual or potential
conflict of interest or even the appearance of any conflict of interest must be
avoided and is prohibited. A Code of Ethics has been adopted to seek to ensure
that those who have knowledge of portfolio transactions or other confidential
client information will not be able to act thereon to the disadvantage of
Henderson's clients. The Code of Ethics does not purport comprehensively to
cover all types of conduct or transactions which may be prohibited or regulated
by the laws and regulations applicable.
The portfolio manager responsible for managing a fund may currently or in the
future also manage one or more other accounts. Other than potential conflicts
between investment strategies, the side-by-side management of a fund and other
accounts may raise potential conflicts of interest due to certain trading
practices used by the portfolio manager (e.g. allocation of aggregated trades).
Henderson has policies and procedures reasonably designed to mitigate these
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