497K 1 k020114inv_scg.txt 497K - DWS SMALL CAP GROWTH FUND Deutsche Asset & Wealth Management [DB Logo] Summary Prospectus | February 1, 2014 DWS Small Cap Growth Fund CLASS/Ticker A SSDAX B SSDBX C SSDCX R SSDGX INST SSDIX S SSDSX
Before you invest, you may want to review the fund's prospectus, which contains more information about the fund and its risks. You can find the fund's prospectus, Statement of Additional Information (SAI) and other information about the fund online at dws-investments.com/ mutualpros. You can also get this information at no cost by e-mailing a request to service@dws.com, calling (800) 728-3337 or asking your financial advisor. The prospectus and SAI, both dated February 1, 2014, as supplemented, are incorporated by reference into this Summary Prospectus. INVESTMENT OBJECTIVE The fund seeks long-term capital growth. 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 in the prospectus (p. 35) and Purchase and Redemption of Shares in the fund's 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 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 0.65 0.65 0.65 0.65 0.65 0.65 ---------------------------- ---- ---- ---- ---- ---- ---- Distribution/service (12b-1) fees 0.25 0.99 1.00 0.50 None None ---------------------------- ---- ---- ---- ---- ----- ----- Other expenses 0.57 0.75 0.57 0.66 0.38 0.58 ---------------------------- ---- ---- ---- ---- ----- ----- TOTAL ANNUAL FUND OPERATING EXPENSES 1.47 2.39 2.22 1.81 1.03 1.23 ---------------------------- ---- ---- ---- ---- ----- ----- Fee waiver/expense reim- bursement 0.00 0.17 0.00 0.09 0.00 0.01 ---------------------------- ---- ---- ---- ---- ----- ----- TOTAL ANNUAL FUND OPERATING EXPENSES AFTER FEE WAIVER/ EXPENSE REIMBURSEMENT 1.47 2.22 2.22 1.72 1.03 1.22 ---------------------------- ---- ---- ---- ---- ----- -----
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 1.39%, 2.14%, 2.14%, 1.64%, 1.14% and 1.14%; and for the period October 1, 2014 through January 31, 2015, at ratios no higher than 1.47%, 2.22%, 2.22%, 1.72%, 1.22% and 1.22% (in each instance, excluding extraordinary expenses, taxes, brokerage and interest expenses) for Classes A, B, C, R, Institutional 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 for Class B, Class R and Class S) remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1
YEARS A B C R INST S ------- -------- -------- -------- -------- -------- -------- 1 $ 716 $ 625 $ 325 $ 175 $ 105 $ 124 -- ----- ----- ----- ----- ----- ----- 3 1,013 1,029 694 561 328 389 -- ----- ----- ----- ----- ----- ----- 5 1,332 1,460 1,190 972 569 675 -- ----- ----- ----- ----- ----- ----- 10 2,231 2,274 2,554 2,119 1,259 1,488 -- ----- ----- ----- ----- ----- -----
You would pay the following expenses if you did not redeem your shares:
YEARS A B C R INST S ------- -------- -------- -------- -------- -------- -------- 1 $ 716 $ 225 $ 225 $ 175 $ 105 $ 124 -- ----- ----- ----- ----- ----- ----- 3 1,013 729 694 561 328 389 -- ----- ----- ----- ----- ----- ----- 5 1,332 1,260 1,190 972 569 675 -- ----- ----- ----- ----- ----- ----- 10 2,231 2,274 2,554 2,119 1,259 1,488 -- ----- ----- ----- ----- ----- -----
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: 74%. PRINCIPAL INVESTMENT STRATEGY MAIN INVESTMENTS. Under normal circumstances, the fund invests at least 80% of its assets, determined at the time of purchase, in stocks and other securities with equity characteristics of US smaller capitalization companies. For purposes of this 80% investment limitation, the term assets is defined as net assets, plus the amount of any borrowings for investment purposes, and the small capitalization equity universe is defined as the bottom 20% of the total domestic equity market capitalization (at the time of initial investment), using a minimum market capitalization of $10 million. As of December 31, 2013, companies in which the fund typically invests have a market capitalization range of between $250 million and $3.0 billion. The fund may also invest in other types of equity securities such as preferred stocks or convertible securities. The fund may invest up to 20% of its assets in the stocks of non-US companies and large capitalization stocks. MANAGEMENT PROCESS. In choosing stocks, portfolio management focuses on individual security selection rather than industry selection. Portfolio management uses an active process that combines financial analysis with company visits to evaluate management and strategies. Company research is significant to the investment process. Portfolio management uses a "bottom-up" approach to picking securities, focusing on stocks that it believes have superior growth prospects and above average intermediate to long-term performance potential. Portfolio management emphasizes individual selection of small and mid-sized company stocks across all economic sectors, early in their growth cycles and which portfolio management believes to have the potential to be the blue chips of the future. Portfolio management generally seeks companies it believes have a leading or dominant position in their niche markets, a high rate of return on invested capital and the ability to finance a major part of future growth from internal sources. Portfolio management also looks for estimated above-average growth in revenues and earnings and a balance sheet that portfolio management believes can support this growth potential with sufficient working capital and manageable levels of debt. Portfolio management follows a disciplined selling process that is designed to lessen risk, and will normally sell a stock when its price reaches portfolio management's expectations or portfolio management believes there is a material change in the company's fundamentals, other investments offer better opportunities or in an effort to readjust the weighted average market capitalization of the fund. 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. When stock prices fall, you should expect the value of your investment to fall as well. Stock prices can be hurt by poor management on the part of the stock's issuer, shrinking product demand and other business risks. These 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. To the extent the fund invests in a particular capitalization or market sector, the fund's performance may be proportionately affected by that segment's general performance. 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 2 DWS Small Cap Growth Fund SUMMARY PROSPECTUS February 1, 2014 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. MEDIUM-SIZED COMPANY RISK. Medium-sized company stocks tend to be more volatile than large company stocks. Because stock analysts are less likely to follow medium-sized companies, less information about them is available to investors. Industry-wide reversals may have a greater impact on medium-sized companies, since they lack the financial resources of larger companies. Medium-sized company stocks are typically less liquid than large company stocks. 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. 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. 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. 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. 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 13.29 6.89 4.73 5.63 -50.39 39.93 29.69 2.67 11.08 44.19
Best Quarter: 25.24%, Q2 2009 Worst Quarter: -32.52%, 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 Class S and Institutional Class shares began on December 31, 2004.
CLASS 1 5 10 INCEPTION YEAR YEARS YEARS ----------- ---------- ---------- --------- CLASS A before tax 6/28/2002 35.90 22.98 6.46 ------------------------------ --------- ----- ----- ---- After tax on distributions() 34.07 22.64 6.00 After tax on distribu- tions and sale of fund shares 25.89 20.51 5.58 ------------------------------ --------- ----- ----- ---- CLASS B before tax 6/28/2002 40.13 23.34 6.25 ------------------------------ --------- ----- ----- ---- CLASS C before tax 6/28/2002 43.06 23.50 6.28 ------------------------------ --------- ----- ----- ---- RUSSELL 2000 (Reg. TM) GROWTH INDEX (reflects no deduc- tion for fees, expenses or taxes) 43.30 22.58 9.41 ------------------------------ --------- ----- ----- ----
3 DWS Small Cap Growth Fund SUMMARY PROSPECTUS February 1, 2014
CLASS 1 5 SINCE INCEPTION YEAR YEARS INCEPTION ------------ ---------- ---------- ---------- CLASS R before tax 5/1/2012 43.83 - 24.08 ------------------------------ ---------- ----- - ----- RUSSELL 2000 (Reg. TM) GROWTH INDEX (reflects no deduc- tion for fees, expenses or taxes) 43.30 - 26.12 ------------------------------ ---------- ----- - ----- INST CLASS before tax 12/20/2004 44.71 24.94 6.97 ------------------------------ ---------- ----- ----- ----- CLASS S before tax 12/20/2004 44.49 24.74 6.87 ------------------------------ ---------- ----- ----- ----- RUSSELL 2000 (Reg. TM) GROWTH INDEX (reflects no deduc- tion for fees, expenses or taxes) 43.30 22.58 8.87 ------------------------------ ---------- ----- ----- -----
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 2006. RAFAELINA M. LEE, MANAGING DIRECTOR. Portfolio Manager of the fund. Began managing the fund in 2008. 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. 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. 4 DWS Small Cap Growth Fund SUMMARY PROSPECTUS February 1, 2014 DSCGF-SUM