UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549  FORM N-CSR  Investment Company Act file number
        811-08227
  DWS Investors Funds, Inc. (Exact Name of Registrant as Specified in Charter)  One South Street Baltimore, MD  21202 (Address of principal executive offices)             (Zip code)  Registrants Telephone Number, including Area Code:(212) 454-7190  Paul Schubert 345 Park Avenue New York, NY 10154 (Name and Address of Agent for Service)  Date of fiscal year end:
        8/31
  Date of reporting period:
        8/31/07
   ITEM 1.REPORT TO STOCKHOLDERS


AUGUST 31, 2007

# Annual Report
to Shareholders

DWS Japan Equity Fund

|jef_cover2a0
|------------

Contents

|Click herePerformance Summary
Click hereInformation About Your Fund's Expenses
Click herePortfolio Management Review
Click herePortfolio Summary
Click hereInvestment Portfolio
Click hereFinancial Statements
Click hereFinancial Highlights
Click hereNotes to Financial Statements
Click hereReport of Independent Registered Public Accounting Firm
Click hereTax Information
Click hereDirectors and Officers
Click hereAccount Management Resources
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This report must be preceded or accompanied by a prospectus. To obtain a
prospectus for any of our funds, refer to the Account Management Resources
information provided in the back of this booklet. We advise you to consider the
fund's objectives, risks, charges and expenses carefully before investing. The
prospectus contains this and other important information about the fund. Please
read the prospectus carefully before you invest.

Investments in mutual funds involve risk. Some funds have more risk than others. The
fund focuses its investments in a certain geographical region, thereby increasing its
vulnerability to developments in that region. This fund is subject to stock market risk.
Additionally, investing in foreign securities presents certain unique risks not associated
with domestic investments, such as currency fluctuation, political and economic
changes and market risks. All of these factors may result in greater share price
volatility. Please read this fund's prospectus for specific details regarding its
investments and risk profile.

DWS Scudder is part of Deutsche Asset Management, which is the marketing name in
the US for the asset management activities of Deutsche Bank AG, Deutsche Bank Trust
Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust
Company.

NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Performance SummaryAugust 31, 2007

Classes A, B and C

All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment
return and principal value fluctuate with changing market conditions so that,
when redeemed, shares may be worth more or less than their original cost.
Current performance may be lower or higher than the performance quoted.
Please visit www.dws-scudder.com for the Fund's most recent month-end
performance.

The maximum sales charge for Class A shares is 5.75%. For Class B shares, the
maximum contingent deferred sales charge (CDSC) is 4% within the first year
after purchase, declining to 0% after six years. Class C shares have no adjustment
for front-end sales charges but redemptions within one year of purchase may be
subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and
would have been lower if they had.

The total annual fund operating expense ratios, gross of any fee waivers or
expense reimbursements, as stated in the fee table of the prospectus dated
December 1, 2006 are 1.54%, 2.31% and 2.24% for Class A, Class B and Class C
shares, respectively. Please see the Information About Your Fund's Expenses, the
Financial Highlights and Notes to the Financial Statements (Note C, Related
Parties) sections of this report for gross and net expense related disclosure for
the period ended August 31, 2007.

To discourage short-term trading, the Fund imposes a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which has the effect of
lowering total return.

Returns and rankings during all periods shown reflect a fee waiver and/or expense
reimbursement. Without this waiver/reimbursement, returns and rankings would have
been lower.

Performance figures do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. Returns and rankings may differ
by share class.

Returns shown for Class B prior to its inception on August 10, 1998 and for Class C
prior to its inception on May 31, 2000 are derived from historical performance of
Class A shares of DWS Japan Equity Fund with an inception date of October 20, 1997
and have been adjusted to reflect the higher gross total annual operating expenses of
each specific class. Any differences will affect performance.

|Average Annual Total Returns(Unadjusted for Sales Charge) as of 8/31/07
|-----------------------------------------------------------------------
|DWS Japan Equity Fund                                                  
|Class A                                                                
|Class B                                                                
|Class C                                                                
|TOPIX Index+                                                           

Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.

|Net Asset Value and Distribution Information                                    
|--------------------------------------------------------------------------------
|                                                                                
|Net Asset Value:
8/31/07                                                        
|8/31/06                                                                         
|Distribution Information:
Twelve Months as of 8/31/07:Capital Gain Distributions

|Class A Lipper Rankings  Japanese Funds Categoryas of 8/31/07
|--------------------------------------------------------------
|Period                                                        
|1-Year                                                        
|3-Year                                                        
|5-Year                                                        

Source: Lipper Inc. Rankings are historical and do not guarantee future results.
Rankings are based on total return unadjusted for sales charges with distributions
reinvested. If sales charges had been included, rankings might have been less
favorable. Rankings are for Class A shares; other share classes may vary.

|Growth of an Assumed $10,000 Investment(Adjusted for Maximum Sales Charge)
|--------------------------------------------------------------------------
|[]DWS Japan Equity Fund  Class A
[]TOPIX Index+                          
|jef_g10k220                                                               
|Yearly periods ended August 31                                            

The Fund's growth of an assumed $10,000 investment is adjusted for the maximum
sales charge of 5.75%. This results in a net initial investment of $9,425.

|Comparative Results(Adjusted for Maximum Sales Charge) as of 8/31/07
|--------------------------------------------------------------------
|DWS Japan Equity Fund                                               
|Class A                                                             
|Average annual total return                                         
|Class B                                                             
|Average annual total return                                         
|Class C                                                             
|Average annual total return                                         
|TOPIX Index+                                                        
|Average annual total return                                         

The growth of $10,000 is cumulative.

Class S

Class S shares are generally not available to new investors except under certain
circumstances. (Please refer to the Fund's Statement of Additional Information.)

All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment
return and principal value fluctuate with changing market conditions so that,
when redeemed, shares may be worth more or less than their original cost.
Current performance may be lower or higher than the performance quoted.
Please visit www.dws-scudder.com for the Fund's most recent month-end
performance.

The total annual fund operating expense ratio, gross of any fee waivers or
expense reimbursements, as stated in the fee table of the prospectus dated
December 1, 2006 is 1.31% for Class S shares. Please see the Information About
Your Fund's Expenses, the Financial Highlights and Notes to the Financial
Statements (Note C, Related Parties) sections of this report for gross and net
expenses related disclosure for the period ended August 31, 2007.

To discourage short-term trading, the Fund imposes a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which has the effect of
lowering total return.

Returns and rankings during all periods shown reflect a fee waiver and/or expense
reimbursement. Without this waiver/reimbursement, returns and rankings would have
been lower.

Performance figures do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. Returns and rankings may differ
by share class.

|Average Annual Total Returnsas of 8/31/07
|-----------------------------------------
|DWS Japan Equity Fund                    
|Class S                                  
|TOPIX Index+                             

Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.

|Net Asset Value and Distribution Information                                     
|---------------------------------------------------------------------------------
|                                                                                 
|Net Asset Value:
8/31/07                                                         
|8/31/06                                                                          
|Distribution Information:
Twelve Months as of 8/31/07:Capital Gains Distributions

|Class S Lipper Rankings  Japanese Funds Categoryas of 8/31/07
|--------------------------------------------------------------
|Period                                                        
|1-Year                                                        
|3-Year                                                        
|5-Year                                                        

Source: Lipper Inc. Rankings are historical and do not guarantee future results.
Rankings are based on total return with distributions reinvested. Rankings are for
Class S shares; other share classes may vary.

|Growth of an Assumed $10,000 Investment         
|------------------------------------------------
|[]DWS Japan Equity Fund  Class S
[]TOPIX Index+
|jef_g10k210                                     
|Yearly periods ended August 31                  

|Comparative Resultsas of 8/31/07
|--------------------------------
|DWS Japan Equity Fund           
|Class S                         
|Average annual total return     
|TOPIX Index+                    
|Average annual total return     

The growth of $10,000 is cumulative.

Information About Your Fund's Expenses

As an investor of the Fund, you incur two types of costs: ongoing
expenses and transaction costs. Ongoing expenses include management
fees, distribution and service (12b-1) fees and other Fund expenses.
Examples of transaction costs include sales charges (loads), redemption
fees and account maintenance fees, which are not shown in this section.
The following tables are intended to help you understand your ongoing
expenses (in dollars) of investing in the Fund and to help you compare
these expenses with the ongoing expenses of investing in other mutual
funds. In the most recent six-month period, the Fund limited these
expenses; had it not done so, expenses would have been higher. The
example in the table is based on an investment of $1,000 invested at the
beginning of the six-month period and held for the entire period(March 1,
2007 to August 31, 2007).

The tables illustrate your Fund's expenses in two ways:

Actual Fund Return. This helps you estimate the actual dollar amount
of ongoing expenses (but not transaction costs) paid on a $1,000
investment in the Fund using the Fund's actual return during the
period. To estimate the expenses you paid over the period, simply
divide your account value by $1,000 (for example, an $8,600 account
value divided by $1,000 = 8.6), then multiply the result by the number
in the "Expenses Paid per $1,000" line under the share class you hold.

Hypothetical 5% Fund Return. This helps you to compare your Fund's
ongoing expenses (but not transaction costs) with those of other
mutual funds using the Fund's actual expense ratio and a hypothetical
rate of return of 5% per year before expenses. Examples using a 5%
hypothetical fund return may be found in the shareholder reports of
other mutual funds. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period.

Please note that the expenses shown in these tables are meant to
highlight your ongoing expenses only and do not reflect any transaction
costs. The "Expenses Paid per $1,000" line of the tables is useful in
comparing ongoing expenses only and will not help you determine the
relative total expense of owning different funds. If these transaction costs
had been included, your costs would have been higher.

|Expenses and Value of a $1,000 Investmentfor the six months ended August 31, 2007
|---------------------------------------------------------------------------------
|Actual Fund Return                                                               
|Beginning Account Value 3/1/07                                                   
|Ending Account Value 8/31/07                                                     
|Expenses Paid per $1,000*                                                        
|Hypothetical 5% Fund Return                                                      
|Beginning Account Value 3/1/07                                                   
|Ending Account Value 8/31/07                                                     
|Expenses Paid per $1,000*                                                        

|Annualized Expense Ratios | Class A | Class B | Class C | Class S
|------------------------- | ------- | ------- | ------- | -------
|DWS Japan Equity Fund     | 1.53%   | 2.32%   | 2.25%   | 1.42%  

For more information, please refer to the Fund's prospectus.

Portfolio Management Review

DWS Japan Equity Fund: A Team Approach to Investing

Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), which is part of Deutsche Asset Management, is the
investment advisor for DWS Japan Equity Fund. DIMA or Deutsche Asset
Management (Japan) Limited ("DeAMJ"), the fund's subadvisor, makes
investment decisions, buys and sells securities for the fund and conducts
research that leads to these purchase and sale decisions.

Deutsche Asset Management is a global asset management organization
that offers a wide range of investing expertise and resources. This
well-resourced global investment platform brings together a wide variety
of experience and investment insight across industries, regions, asset
classes and investing styles.

DIMA and DeAMJ are indirect, wholly owned subsidiaries 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.

Portfolio Management Team

Kenji Chihara

Director of Deutsche Asset Management (Japan) Limited and Portfolio Manager of the fund.

Joined Deutsche Trust Bank in 1997 and transferred to Deutsche Asset Management
(Japan) Limited in October 2005.

Joined the fund in 2005.

Formerly Chief Investment Officer of Deutsche Trust Bank.

Over 20 years of investment industry experience.

Previously served as Japanese Equity Fund Manager at Okasan Investment
Management for five years and in various positions at Okasan Securities for five years
prior to joining Deutsche Asset Management.

BA, Kyushu University, Chartered Member of the Security Analysts Association
of Japan.

In the following interview, Portfolio Manager Kenji Chihara discusses
DWS Japan Equity Fund's strategy and the market environment
during the 12-month period ended August 31, 2007.

The views expressed in the following discussion reflect those of the portfolio managers only
through the end of the period of the report as stated on the cover. The management team's
views are subject to change at any time based on market and other conditions and should
not be construed as a recommendation. Past performance is no guarantee of future results.

Q: How did Japan's economy and stock market perform during
the annual reporting period?

A:Japanese equities performed poorly during the past year. The
TOPIX index  the fund's benchmark  returned -1.60% in local
currency terms, making it one of the worst-performing major
markets in the world.1 The return for US investors was slightly
better due to the appreciation of the yen relative to the US dollar.
At the beginning of the period, 117.29 yen were required to
purchase one US dollar; by the end of the period, this number had
fallen to 115.92  signifying strength in the currency. As a result,
the return of the TOPIX in US dollar terms increased to 0.71%.2
This compares unfavorably with the 16.97% US dollar return of
the MSCI World Index.3

Japanese equities showed resilience during the first half of the
period. While Japan trailed its developed market peers by a
narrow margin, it nonetheless produced a positive gain on the
strength of optimism regarding the country's economy and the
supportive global market backdrop. After touching its high for
the year in late February, the market subsequently sold off in
early March  in tandem with stock prices worldwide  when
sentiment was briefly pressured by concerns about the
US housing market and a sharp one-day decline of over 8% in
Chinese equities. The world markets quickly recovered from this
downturn, and most went on to hit new highs by mid-summer.
Japanese equities failed to participate in this recovery, however,
as the market traded sideways throughout the summer. The
period closed on a down note, with concerns about the problems
in the US subprime mortgage sector weighing heavily on global
market performance during August.

The primary reason for Japan's poor relative market performance
during the second half of the period was the concern that its
economy had ground to a standstill. Some key numbers released
during the summer paint a picture of stagnation: July industrial
production declined by -0.4% month-over-month, while June new
machinery orders fell 10.4% versus the same period one year
ago. On the employment side, the July unemployment rate was
3.6%, 0.1% lower than the previous month. Household
consumption also appeared to stall, with June consumer
expenditures coming in marginally negative at -0.1%
year-over-year  the first time in seven months this number fell
into the red. Similarly, department store sales declined 4.3% in
July compared with July 2006. This shaky economic backdrop
was reflected in a conservative tone in the earnings outlooks
offered by Japanese corporations, further raising concerns among
investors. Coming at a time when the markets are attempting to
weigh the impact of the US housing market problems on both the
US economy and the rest of the world, these issues resulted in
underperformance for Japanese equities.

Q: How did the fund perform during the period?

A:For the 12-month period ended August 31, 2007, the fund's
Class A shares rose 2.66%. (Returns are unadjusted for sales
charges. If sales charges had been included, returns would have
been lower. Past performance is no guarantee of future results.
Please see pages 4 through 8 for the performance of other
share classes and for more complete performance information.)

The fund outperformed the -1.15 average return of the 53 funds in
its Lipper peer group, Japanese Funds, and finished in the top
26% of the category for the one-year period.4 The fund has also
outperformed its Lipper peers over the three- and five-year
intervals, and has finished in the top 12% and 22%, respectively,
during these periods. (Rankings are for Class A shares. Please see
page 5 for complete file rankings information.) We are pleased
that the fund has outperformed at a challenging time for the
Japanese market, which, in our view, helps underscore the
effectiveness of our disciplined, research-driven approach to
individual stock selection.

Q: What were the key factors behind the fund's
outperformance?

A:Sector allocation contributed positively to the relative
performance, whereas stock selection detracted. With respect to
sector allocation, we added value through an overweight position
in iron/steel, which outperformed, and an underweight position in
banks, which lagged.5

In terms of stock selection, positive contributions came from
overweight positions in Mitsui & Co., Ltd. (wholesale trade),
JFE Holdings, Inc. (iron/steel) and Komatsu Ltd. (machinery).
Mitsui is experiencing strong earnings growth thanks to the price
appreciation of oil and other commodities. JFE Holdings, one of
the largest iron/steel manufacturers in Japan, also has been
supported by a good earnings outlook as well as investors'
anticipation of merger and acquisition activity in the global iron
industry. On the negative side, having no position in Nintendo
and holding an overweight in the real estate services company
Kenedix, Inc. adversely affected performance.

Q: What notable changes have you made to the portfolio?

A:During the period, we established an overweight position in
the chemicals, machinery, and iron/steel sectors, based on our
positive earnings outlooks and attractive valuations for many
companies in these industries. The fund's largest underweights
were in the electric power/gas and food sectors.

Major purchases during the period include ORIX Corp. (finance),
Mitsui O.S.K. Lines, Ltd. (marine transport), Shin-Etsu Chemical
Co., Ltd., Shinko Electric Industries Co., Ltd. (electric appliances),
and Tokyo Electron Ltd. (also electric appliances). Major sales
include Nippon Shokubai (chemicals), Sharp (electric appliances),
Aishin Seiki (transportation equipment) and Obayashi Corp
(construction).

Q: What factors do you see affecting Japan's market through the
remainder of this year?

A:One element of the recent weakness in the Japanese equity
market is the concern about the sub-prime problems in the United
States. However, we believe this issue has only a limited direct
impact on the Japanese equity market. Our field research has
convinced us that no Japanese financial institutions have direct
exposure to either the US subprime loan market or the related
financial products whose prices plummeted during the late
summer. While a possible US economic slowdown may hurt
corporate Japan, we believe this can be offset by healthy
economic growth in other regions such as Europe or the
emerging markets.

Turning to valuations, Japan's current level is in the lower end of
its historical range, and it is also low relative to the other major
global markets. In the short term, the Japanese equity market
may continue to suffer from investors' risk aversion and the
resulting volatility across all global markets. Still, given the current
attractive valuation levels in Japan, we view further weakness as a
potentially outstanding opportunity to add to the fund's positions
in our favored companies.

In managing the fund, we continue to focus on risk management
by controlling the portfolio's exposure (relative to the benchmark)
to external factors such as currencies, interest rates and oil prices.
Based on our view of valuations and individual company
fundamentals, we intend to maintain an overweight in the
chemicals, machinery, and iron/steel sectors. As always, we
continue to focus on business fundamentals and valuation as the
guiding principles of our investment process.

Portfolio Summary

|Asset Allocation(As a % of Investment Portfolio) | 8/31/07 | 8/31/06
|------------------------------------------------ | ------- | -------
|                                                 |         |        
|Common Stocks                                    | 100%    | 99%    
|Cash Equivalents                                 |        | 1%     
|                                                 | 100%    | 100%   

|Sector Diversification(As a % of Common Stocks) | 8/31/07 | 8/31/06
|----------------------------------------------- | ------- | -------
|                                                |         |        
|Financials                                      | 22%     | 20%    
|Industrials                                     | 20%     | 19%    
|Materials                                       | 20%     | 19%    
|Information Technology                          | 16%     | 12%    
|Consumer Discretionary                          | 15%     | 22%    
|Telecommunication Services                      | 2%      | 3%     
|Health Care                                     | 2%      | 2%     
|Energy                                          | 2%      | 2%     
|Consumer Staples                                | 1%      | 1%     
|                                                | 100%    | 100%   

Asset allocation and sector diversification are subject to change.

|Ten Largest Equity Holdings at August 31, 2007(26.0% of Net Assets)                                                          
|-----------------------------------------------------------------------------------------------------------------------------
|1.      Mizuho Financial Group, Inc.
Provider of financial services                                                          
|2.      Toyota Motor Corp.
Manufacturer of diversified automotive products                                                   
|3.      Sumitomo Mitsui Financial Group, Inc.
A holding company that provides commercial banking and other financial
services
|4.      Komatsu Ltd.
Manufacturer of construction machinery                                                                  
|5.      Canon, Inc.
Producer of visual image and information equipment                                                       
|6.      KDDI Corp.
Provider of long distance telephone and cellular services                                                 
|7.      Dowa Holdings Co., Ltd.
Produces, mines, refines and smelts various metal-related products                           
|8.      Mitsubishi UFJ Financial Group, Inc.
Provider of a variety of financial and investment services                      
|9.      Denso Corp.
Manufactures electronic parts for automobiles                                                            
|10.     Matsuda Sangyo Co., Ltd.
Wholesales precious metals and electronic materials                                         

Portfolio holdings are subject to change.

For more complete details about the Fund's investment portfolio, see page 19. A quarterly
Fact Sheet is available upon request. Information concerning portfolio holdings of the Fund
as of month end will be posted to www.dws-scudder.com on or after the last day of the
following month. In addition, the Fund's top ten holdings and other information about the
Fund is posted on www.dws-scudder.com as of the calendar quarter-end on or after the
15th day following quarter-end. Please see the Account Management Resources section for
contact information.

Following the Fund's fiscal first and third quarter-end, a complete portfolio
holdings listing is filed with the SEC on Form N-Q. The form will be
available on the SEC's Web site at www.sec.gov, and it also may be
reviewed and copied at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the SEC's Public Reference Room
may be obtained by calling (800) SEC-0330.

Investment Portfolioas of August 31, 2007

|                                                             | Shares      | Value ($)
|------------------------------------------------------------ | ----------- | ---------
|                                                             |            
|Common Stocks 100.0%                                        
|Consumer Discretionary 15.2%                                
|Auto Components 2.0%                                        
|Denso Corp.                                                  | 113,700     | 3,993,491
|Automobiles 6.6%                                            
|Honda Motor Co., Ltd.                                        | 49,200      | 1,622,913
|Isuzu Motors Ltd.                                            | 435,000     | 2,372,129
|Suzuki Motor Corp.                                           | 96,000      | 2,598,432
|Toyota Motor Corp.                                           | 117,300     | 6,804,451
|                                                             | 13,397,925 
|Household Durables 1.2%                                     
|Makita Corp.                                                 | 63,100      | 2,452,052
|Leisure Equipment & Products 1.2%                           
|Nikon Corp.                                                  | 76,000      | 2,381,479
|Media 1.4%                                                  
|Daiichikosho Co., Ltd.                                       | 250,400     | 2,828,783
|Specialty Retail 2.8%                                       
|Alpen Co., Ltd.                                              | 90,200      | 1,371,598
|NAFCO Co., Ltd.                                              | 76,200      | 1,779,871
|Nitori Co., Ltd.                                             | 29,800      | 1,551,958
|Shimamura Co., Ltd.                                          | 10,600      | 984,678  
|                                                             | 5,688,105  
|Consumer Staples 1.3%                                       
|Personal Products                                           
|Kobayashi Pharmaceutical Co., Ltd.                           | 77,000      | 2,588,295
|Energy 1.9%                                                 
|Oil, Gas & Consumable Fuels                                 
|Nippon Mining Holdings, Inc.                                 | 416,500     | 3,793,292
|Financials 21.3%                                            
|Capital Markets 3.1%                                        
|Nomura Holdings, Inc.                                        | 136,100     | 2,409,183
|SBI Holdings, Inc.                                           | 14,545      | 3,901,217
|                                                             | 6,310,400  
|Commercial Banks 10.3%                                      
|Fukuoka Financial Group, Inc.*                               | 476,000     | 2,746,601
|Mitsubishi UFJ Financial Group, Inc.                         | 452         | 4,346,046
|Mizuho Financial Group, Inc.                                 | 1,201       | 7,559,657
|Sumitomo Mitsui Financial Group, Inc.                        | 784         | 6,206,698
|                                                             | 20,859,002 
|Consumer Finance 1.7%                                       
|ORIX Corp.                                                   | 16,400      | 3,519,120
|Insurance 2.6%                                              
|Millea Holdings, Inc.                                        | 68,500      | 2,650,646
|T&D Holdings, Inc.                                           | 44,300      | 2,579,066
|                                                             | 5,229,712  
|Real Estate Management & Development 3.6%                   
|Kenedix, Inc.                                                | 1,727       | 2,536,045
|Mitsubishi Estate Co., Ltd.                                  | 112,000     | 3,004,145
|Mitsui Fudosan Co., Ltd.                                     | 70,000      | 1,835,461
|                                                             | 7,375,651  
|Health Care 2.2%                                            
|Pharmaceuticals                                             
|Astellas Pharma, Inc.                                        | 23,500      | 1,091,546
|Sawai Pharmaceutical Co., Ltd.                               | 37,600      | 1,463,375
|Tsumura & Co.                                                | 119,000     | 1,940,346
|                                                             | 4,495,267  
|Industrials 20.3%                                           
|Building Products 1.3%                                      
|Asahi Glass Co., Ltd.                                        | 205,000     | 2,569,283
|Commercial Services & Supplies 1.9%                         
|Matsuda Sangyo Co., Ltd.                                     | 149,820     | 3,934,158
|Construction & Engineering 1.0%                             
|COMSYS Holdings Corp.                                        | 188,000     | 2,107,778
|Electrical Equipment 1.0%                                   
|Fujikura Ltd.                                                | 159,000     | 947,276  
|Mitsubishi Electric Corp.                                    | 90,000      | 1,068,626
|                                                             | 2,015,902  
|Machinery 7.8%                                              
|Hitachi Zosen Corp.*                                         | 1,405,500   | 2,325,212
|Komatsu Ltd.                                                 | 182,600     | 5,644,964
|Kurita Water Industries Ltd.                                 | 66,200      | 2,017,277
|Sumitomo Heavy Industries Ltd.                               | 273,000     | 3,092,947
|Tadano Ltd.                                                  | 213,000     | 2,737,580
|                                                             | 15,817,980 
|Marine 1.9%                                                 
|Mitsui O.S.K. Lines Ltd.                                     | 254,000     | 3,786,714
|Road & Rail 0.7%                                            
|Hamakyorex Co., Ltd.                                         | 62,900      | 1,331,038
|Trading Companies & Distributors 4.7%                       
|Mitsubishi Corp.                                             | 109,900     | 3,135,973
|Mitsui & Co., Ltd.                                           | 154,000     | 3,249,403
|Sumitomo Corp.                                               | 181,500     | 3,179,317
|                                                             | 9,564,693  
|Information Technology 16.0%                                
|Electronic Equipment & Instruments 5.6%                     
|Casio Computer Co., Ltd.                                     | 117,200     | 1,787,759
|Dainippon Screen Manufacturing Co., Ltd.                     | 273,000     | 1,919,097
|Iriso Electronics Co., Ltd.                                  | 80,800      | 1,958,028
|Nidec Corp.                                                  | 30,700      | 2,158,183
|Ohara, Inc.                                                  | 85,300      | 1,486,560
|TDK Corp.                                                    | 24,700      | 2,110,705
|                                                             | 11,420,332 
|IT Services 1.3%                                            
|Nomura Research Institute Ltd.                               | 11,600      | 391,082  
|Otsuka Corp.                                                 | 22,900      | 2,312,133
|                                                             | 2,703,215  
|Office Electronics 2.9%                                     
|Canon, Inc.                                                  | 88,000      | 5,034,397
|Ricoh Co., Ltd.                                              | 37,000      | 819,701  
|                                                             | 5,854,098  
|Semiconductors & Semiconductor Equipment 6.2%               
|Micronics Japan Co., Ltd.                                    | 107,800     | 3,271,729
|Shinko Electric Industries Co., Ltd.                         | 112,400     | 2,537,312
|Sumco Techxiv Corp.                                          | 57,700      | 3,857,774
|Tokyo Electron Ltd.                                          | 39,500      | 2,829,003
|                                                             | 12,495,818 
|Materials 19.5%                                             
|Chemicals 10.3%                                             
|Hitachi Chemical Co., Ltd.                                   | 151,600     | 3,096,809
|JSR Corp.                                                    | 124,500     | 2,792,741
|Mitsubishi Rayon Co., Ltd.                                   | 303,000     | 1,934,224
|Shin-Etsu Chemical Co., Ltd.                                 | 51,000      | 3,696,536
|Sumitomo Chemical Co., Ltd.                                  | 404,000     | 3,021,853
|Taiyo Ink Manufacturing Co., Ltd.                            | 101,800     | 2,894,991
|Ube Industries Ltd.                                          | 1,066,000   | 3,346,844
|                                                             | 20,783,998 
|Metals & Mining 9.2%                                        
|Dowa Holdings Co., Ltd.                                      | 394,000     | 4,411,620
|Godo Steel Ltd.                                              | 622,000     | 2,379,844
|Hitachi Metals Ltd.                                          | 222,000     | 2,557,963
|JFE Holdings, Inc.                                           | 46,100      | 3,015,628
|Kobe Steel Ltd.                                              | 607,000     | 2,216,771
|Nippon Steel Corp.                                           | 429,000     | 3,014,102
|Osaka Steel Co., Ltd.                                        | 62,500      | 1,067,805
|                                                             | 18,663,733 
|Telecommunication Services 2.3%                             
|Wireless Telecommunication Services                         
|KDDI Corp.                                                   | 614         | 4,746,531
|Total Common Stocks (Cost $202,976,750)                      | 202,707,845
|                                                            
|Rights 0.1%                                                 
|Materials                                                   
|Dowa Holdings Co., Ltd. Expiration Date 1/29/2010*
(Cost $0) | 270,000     | 116,179  
|                                                            
|Cash Equivalents 0.0%                                       
|Cash Management QP Trust, 5.32% (a) (Cost $29,795)           | 29,795      | 29,795   

|                                               | % of Net
Assets | Value ($)  
|---------------------------------------------- | --------------- | -----------
|                                               |                
|Total Investment Portfolio(Cost $203,006,545)+ | 100.1           | 202,853,819
|Other Assets and Liabilities, Net              | (0.1)           | (120,980)  
|Net Assets                                     | 100.0           | 202,732,839

The accompanying notes are an integral part of the financial statements.

Financial Statements

|Statement of Assets and Liabilitiesas of August 31, 2007           
|-------------------------------------------------------------------
|Assets                                                             
|Investments:Investments in securities, at value (cost $202,976,750)
|Investment in Cash Management QP Trust (cost $29,795)              
|Total investments, at value (cost $203,006,545)                    
|Foreign currency, at value (cost $1,619,079)                       
|Receivable for investments sold                                    
|Dividends receivable                                               
|Interest receivable                                                
|Receivable for Fund shares sold                                    
|Other assets                                                       
|Total assets                                                       
|Liabilities                                                        
|Payable for investments purchased                                  
|Notes payable                                                      
|Payable for Fund shares redeemed                                   
|Accrued management fee                                             
|Other accrued expenses and payables                                
|Total liabilities                                                  
|Net assets, at value                                               
|Net Assets Consist of                                              
|Accumulated net investment loss                                    
|Net unrealized appreciation (depreciation) on:Investments          
|Foreign currency                                                   
|Accumulated net realized gain (loss)                               
|Paid-in capital                                                    
|Net assets, at value                                               

The accompanying notes are an integral part of the financial statements.

|Statement of Assets and Liabilitiesas of August 31, 2007 (continued))                                                                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Net Asset Value                                                                                                                                                                                                               
|Class A
Net Asset Value and redemption price(a) per share
($56,700,776 ÷ 3,816,644 shares of capital stock outstanding,
$.001 par value, 62,500,000 shares authorized)                                                        
|Maximum offering price per share (100 ÷ 94.25 of $14.86)                                                                                                                                                                      
|Class B
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($11,674,361 ÷ 798,564 shares of capital
stock outstanding, $.001 par value, 62,500,000 shares authorized)  
|Class C
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($49,029,258 ÷ 3,352,360 shares of
capital stock outstanding, $.001 par value, 62,500,000 shares authorized)
|Class S
Net Asset Value, offering and redemption price(a)per share
($85,328,444 ÷ 5,717,716 shares of capital stock outstanding,
$.001 par value, 62,500,000 shares authorized)                                               

The accompanying notes are an integral part of the financial statements.

|Statement of Operationsfor the year ended August 31, 2007          
|-------------------------------------------------------------------
|Investment Income                                                  
|Income:Dividends (net of foreign taxes withheld of $172,960)       
|Interest  Cash Management QP Trust                                
|Interest                                                           
|Total Income                                                       
|Expenses:Management fee                                            
|Administration fee                                                 
|Services to shareholders                                           
|Distribution service fees                                          
|Custodian fee                                                      
|Auditing                                                           
|Legal                                                              
|Director's fees and expenses                                       
|Reports to shareholders                                            
|Registration fees                                                  
|Interest expense                                                   
|Other                                                              
|Total expenses before expense reductions                           
|Expense reductions                                                 
|Total expenses after expense reductions                            
|Net investment income (loss)                                       
|Realized and Unrealized Gain (Loss)                                
|Net realized gain (loss) from:Investments                          
|Foreign currency                                                   
|                                                                   
|Change in net unrealized appreciation (depreciation) on:Investments
|Foreign currency                                                   
|                                                                   
|Net gain (loss)                                                    
|Net increase (decrease) in net assets resulting from operations    

The accompanying notes are an integral part of the financial statements.

|Statement of Changes in Net Assets                                                                     
|-------------------------------------------------------------------------------------------------------
|Increase (Decrease) in Net Assets                                                                      
|2007                                                                                                   
|Operations:Net investment income (loss)                                                                
|Net realized gain (loss)                                                                               
|Change in net unrealized appreciation (depreciation)                                                   
|Net increase (decrease) in net assets resulting from
operations                                        
|Distributions to shareholders from:Net realized gains:Class A                                          
|Class B                                                                                                
|Class C                                                                                                
|Class S                                                                                                
|Fund share transactions:Proceeds from shares sold                                                      
|Reinvestment of distributions                                                                          
|Cost of shares redeemed                                                                                
|Redemption fees                                                                                        
|Net increase (decrease) in net assets from Fund share
transactions                                     
|Increase (decrease) in net assets                                                                      
|Net assets at beginning of period                                                                      
|Net assets at end of period (including accumulated net
investment loss of $18,484 and $0, respectively)

The accompanying notes are an integral part of the financial statements.

Financial Highlights

|Class A
Years Ended August 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2007       | 2006f      | 2005f      | 2004f      | 2003f     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | ---------- | ---------- | ---------- | ----------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $    17.18 | $    14.65 | $    13.67 | $    11.72 | $    10.83
|Income (loss) from investment operations:
Net investment income (loss)a                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (.06)      | (.06)      | (.03)      | (.08)      | (.07)     
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | .52        | 3.79       | 2.23       | 2.03       | .96       
|Total from investment operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | .46        | 3.73       | 2.20       | 1.95       | .89       
|Less distributions from:
Net realized gains                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (2.78)     | (1.20)     | (1.22)     |           |          
|Redemption fees*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | .00        | .00        | .00        | .00        | .00       
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $    14.86 | $    17.18 | $    14.65 | $    13.67 | $    11.72
|Total Return (%)b                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2.66       | 25.48      | 16.72      | 16.65      | 8.17      
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 57         | 70         | 30         | 29         | 10        
|Ratio of expenses before expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 1.52       | 1.53       | 1.79       | 2.10c      | 2.39c     
|Ratio of expenses after expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 1.52       | 1.42       | 1.40       | 1.40c      | 1.40c     
|Ratio of net investment income (loss) (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | (.36)      | (.37)      | (.25)      | (.65)      | (.70)     
|Portfolio turnover rate (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 120        | 105        | 60         | 109d       | 137e      
|aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced. Total
return does not reflect the effect of any sales charges.cThe ratio includes expenses allocated from the Japanese Equity Portfolio.dThis ratio includes the purchase and sale of portfolio securities of the Japanese Equity
Fund as a stand-alone fund in addition to the Japanese Equity Portfolio.eAmount shown is the portfolio turnover rate of the Japanese Equity Portfolio.fOn November 11, 2005, the Fund implemented a .7228027-for-1 reverse stock split.
Share and per share information through November 10, 2005 have been updated to
reflect the effect of the split. Shareholders received .7228027 shares for every one
share owned and net asset value per share increased correspondingly.*Amount is less than $.005.

|Class B
Years Ended August 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2007       | 2006       | 2005       | 2004       | 2003      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | ---------- | ---------- | ---------- | ----------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $    17.07 | $    14.66 | $    13.47 | $    11.63 | $    10.83
|Income (loss) from investment operations:
Net investment income (loss)a                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (.18)      | (.19)      | (.17)      | (.19)      | (.16)     
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | .51        | 3.80       | 2.24       | 2.03       | .96       
|Total from investment operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | .33        | 3.61       | 2.07       | 1.84       | .80       
|Less distributions from:
Net realized gains                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (2.78)     | (1.20)     | (.88)      |           |          
|Redemption fees*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | .00        | .00        | .00        | .00        | .00       
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $    14.62 | $    17.07 | $    14.66 | $    13.47 | $    11.63
|Total Return (%)b                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1.82       | 24.61      | 15.79      | 15.82      | 7.39      
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 12         | 14         | 8          | 9          | 3         
|Ratio of expenses before expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2.32       | 2.28       | 2.54       | 2.85c      | 3.14c     
|Ratio of expenses after expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2.31       | 2.16       | 2.15       | 2.15c      | 2.15c     
|Ratio of net investment income (loss) (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | (1.15)     | (1.11)     | (1.00)     | (1.40)     | (1.45)    
|Portfolio turnover rate (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 120        | 105        | 60         | 109d       | 137e      
|aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced. Total
return does not reflect the effect of any sales charges.cThe ratio includes expenses allocated from the Japanese Equity Portfolio.dThis ratio includes the purchase and sale of portfolio securities of the Japanese Equity
Fund as a stand-alone fund in addition to the Japanese Equity Portfolio.eAmount shown is the portfolio turnover rate of the Japanese Equity Portfolio.*Amount is less than $.005.

|Class C
Years Ended August 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2007       | 2006       | 2005       | 2004       | 2003      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | ---------- | ---------- | ---------- | ----------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $    17.07 | $    14.66 | $    13.47 | $    11.63 | $    10.82
|Income (loss) from investment operations:
Net investment income (loss)a                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (.17)      | (.20)      | (.17)      | (.19)      | (.16)     
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | .51        | 3.81       | 2.24       | 2.03       | .97       
|Total from investment operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | .34        | 3.61       | 2.07       | 1.84       | .81       
|Less distributions from:
Net realized gains                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (2.78)     | (1.20)     | (.88)      |           |          
|Redemption fees*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | .00        | .00        | .00        | .00        | .00       
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $    14.63 | $    17.07 | $    14.66 | $    13.47 | $    11.63
|Total Return (%)b                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1.89       | 24.61      | 15.79      | 15.82      | 7.49      
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 49         | 59         | 16         | 16         | 1         
|Ratio of expenses before expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2.26       | 2.27       | 2.54       | 2.85c      | 3.14c     
|Ratio of expenses after expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2.25       | 2.17       | 2.15       | 2.15c      | 2.15c     
|Ratio of net investment income (loss) (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | (1.09)     | (1.12)     | (1.00)     | (1.40)     | (1.45)    
|Portfolio turnover rate (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 120        | 105        | 60         | 109d       | 137e      
|aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced. Total
return does not reflect the effect of any sales charges.cThe ratio includes expenses allocated from the Japanese Equity Portfolio.dThis ratio includes the purchase and sale of portfolio securities of the Japanese Equity
Fund as a stand-alone fund in addition to the Japanese Equity Portfolio.eAmount shown is the portfolio turnover rate of the Japanese Equity Portfolio.*Amount is less than $.005.

|Class S
Years Ended August 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2007       | 2006f      | 2005f      | 2004f      | 2003f     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------- | ---------- | ---------- | ---------- | ----------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $    17.22 | $    14.65 | $    13.63 | $    11.66 | $    10.76
|Income (loss) from investment operations:
Net investment income (loss)a                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (.03)      | (.01)      | .01        | (.04)      | (.04)     
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | .51        | 3.78       | 2.22       | 2.01       | .95       
|Total from investment operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | .48        | 3.77       | 2.23       | 1.97       | .91       
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |           |           |           |           | (.01)     
|Net realized gains                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | (2.78)     | (1.20)     | (1.21)     |           |          
|Total distributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (2.78)     | (1.20)     | (1.21)     |           | (.01)     
|Redemption fees*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | .00        | .00        | .00        | .00        | .00       
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $    14.92 | $    17.22 | $    14.65 | $    13.63 | $    11.66
|Total Return (%)b                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2.85       | 25.81      | 17.01      | 16.88      | 8.43      
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 85         | 65         | 41         | 38         | 46        
|Ratio of expenses before expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 1.37       | 1.28       | 1.54       | 1.85c      | 2.14c     
|Ratio of expenses after expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1.37       | 1.16       | 1.15       | 1.15c      | 1.15c     
|Ratio of net investment income (loss) (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (.21)      | (.11)      | .00        | (.40)      | (.45)     
|Portfolio turnover rate (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 120        | 105        | 60         | 109d       | 137e      
|aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced.cThe ratio includes expenses allocated from the Japanese Equity Portfolio.dThis ratio includes the purchase and sale of portfolio securities of the Japanese Equity
Fund as a stand-alone fund in addition to the Japanese Equity Portfolio.eAmount shown is the portfolio turnover rate of the Japanese Equity Portfolio.fOn November 11, 2005, the Fund implemented a .72649047-for-1 reverse stock split.
Share and per share information through November 10, 2005 have been updated to
reflect the effect of the split. Shareholders received .72649047 shares for every one
share owned and net asset value per share increased correspondingly.*Amount is less than $.005.

Notes to Financial Statements

A. Significant Accounting Policies

DWS Japan Equity Fund (the "Fund") is a diversified series of DWS
Investors Funds, Inc. (the "Corporation") which is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company organized as a Maryland
Corporation. On August 20, 2004, the Japanese Equity master-feeder
structure was dissolved and converted to a stand-alone fund. Certain ratio
results from activity prior to this conversion are included in the Financial
Highlights.

The Fund offers multiple classes of shares which provide investors with
different purchase options. Class A shares are offered to investors subject
to an initial sales charge. Class B shares are offered to investors without
an initial sales charge but are subject to higher ongoing expenses than
Class A shares and a contingent deferred sales charge payable upon
certain redemptions. Class B shares automatically convert to Class A
shares six years after issuance. Class C shares are offered to investors
without an initial sales charge but are subject to higher ongoing expenses
than Class A shares and a contingent deferred sales charge payable upon
certain redemptions within one year of purchase. Class C shares do not
convert into another class. Class S shares are not subject to initial or
contingent deferred sales charges and are generally not available to new
investors except under certain circumstances.

Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on
the basis of relative net assets by the holders of all classes of shares,
except that each class bears certain expenses unique to that class such as
services to shareholders, distribution service fees and certain other
class-specific expenses. Differences in class-level expenses may result in
payment of different per share dividends by class. All shares of the Fund
have equal rights with respect to voting subject to class-specific
arrangements.

The Fund's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America
which require the use of management estimates. Actual results could
differ from those estimates. The policies described below are followed
consistently by the Fund in the preparation of its financial statements.

Security Valuation. Investments are stated at value determined as of the
close of regular trading on the New York Stock Exchange on each day that
both the New York Stock Exchange and the Tokyo Stock Exchange are
open for trading. Equity securities are valued at the most recent sale price
or official closing price reported on the exchange (US or foreign) or
over-the-counter market on which the security is traded most extensively.
Securities for which no sales are reported are valued at the calculated
mean between the most recent bid and asked quotations on the relevant
market or, if a mean cannot be determined, at the most recent bid
quotation.

Money market instruments purchased with an original or remaining
maturity of sixty days or less, maturing at par, are valued at amortized
cost. Investments in open-end investment companies and Cash
Management QP Trust are valued at their net asset value each business
day.

Securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to
reflect fair value are valued in a manner that is intended to reflect their fair
value as determined in accordance with procedures approved by the
Directors. The Fund may use a fair valuation model to value international
equity securities in order to adjust for events which may occur between
the close of the foreign exchanges and the close of the New York Stock
Exchange.

In September 2006, the Financial Accounting Standards Board ("FASB")
released Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair
value measurements. FAS 157 is effective for fiscal years beginning after
November 15, 2007. As of August 31, 2007, management does not believe
the adoption of FAS 157 will impact the amounts reported in the financial
statements, however, additional disclosures will be required about the
inputs used to develop the measurements of fair value and the effect of
certain of the measurements reported in the statement of operations for
a fiscal period.

Foreign Currency Translations. The books and records of the Fund are
maintained in US dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into US dollars
at the prevailing exchange rates at period end. Purchases and sales of
investment securities, income and expenses are translated into US dollars
at the prevailing exchange rates on the respective dates of the
transactions.

Net realized and unrealized gains and losses on foreign currency
transactions represent net gains and losses between trade and
settlement dates on securities transactions, the disposition of forward
foreign currency exchange contracts and foreign currencies, and the
difference between the amount of net investment income accrued and
the US dollar amount actually received. That portion of both realized and
unrealized gains and losses on investments that results from fluctuations
in foreign currency exchange rates is not separately disclosed but is
included with net realized and unrealized gain/appreciation and
loss/depreciation on investments.

Forward Foreign Currency Exchange Contracts. A forward foreign
currency exchange contract ("forward currency contract") is a
commitment to purchase or sell a foreign currency at the settlement date
at a negotiated rate. The Fund may enter into forward currency contracts
in order to hedge its exposure to changes in foreign currency exchange
rates on its foreign currency denominated portfolio holdings and to
facilitate transactions in foreign currency denominated securities.

Forward currency contracts are valued at the prevailing forward exchange
rate of the underlying currencies and unrealized gain (loss) is recorded
daily. Sales and purchases of forward currency contracts having the same
settlement date and broker are offset and any gain (loss) is realized on the
date of offset; otherwise, gain (loss) is realized on settlement date.
Realized and unrealized gains and losses which represent the difference
between the value of a forward currency contract to buy and a forward
currency contract to sell are included in net realized and unrealized gain
(loss) from foreign currency.

Certain risks may arise upon entering into forward currency contracts
from the potential inability of counterparties to meet the terms of their
contracts. Additionally, when utilizing forward currency contracts to
hedge, the Fund gives up the opportunity to profit from favorable
exchange rate movements during the term of the contract.

Taxes. The Fund's policy is to comply with the requirements of the
Internal Revenue Code, as amended, which are applicable to regulated
investment companies, and to distribute all of its taxable income to its
shareholders. Accordingly, the Fund paid no federal income taxes and no
federal income tax provision was required.

Additionally, based on the Fund's understanding of the tax rules and rates
related to income, gains and transactions for the foreign jurisdictions in
which it invests, the Fund will provide for foreign taxes, and where
appropriate, deferred foreign taxes.

In July 2006, FASB issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes  an interpretation of FASB Statement
No. 109" (the "Interpretation"). The Interpretation establishes for the
Fund a minimum threshold for financial statement recognition of the
benefit of positions taken in filing tax returns (including whether the Fund
is taxable in certain jurisdictions), and requires certain expanded tax
disclosures. The Interpretation is effective for fiscal years beginning after
December 15, 2006. On December 22, 2006, the SEC indicated that they
would not object if a Fund implements FIN 48 in the first required financial
statement reporting period for its fiscal year beginning after December 15,
2006. Management is evaluating the application of the Interpretation to
the Fund and is not in a position at this time to estimate the significance
of its impact, if any, on the Fund's financial statements.

Distribution of Income and Gains. Net investment income of the Fund, if
any, is declared and distributed to shareholders annually. Net realized
gains from investment transactions, in excess of available capital loss
carryforwards, would be taxable to the Fund if not distributed, and,
therefore, will be distributed to shareholders at least annually.

The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from accounting principles generally
accepted in the United States of America. These differences primarily
relate to investments in foreign denominated investments, recognition of
certain foreign currency gains (losses) as ordinary income (loss),
investments in passive foreign investment companies, net investment
loss and certain securities sold at a loss. As a result, net investment
income (loss) and net realized gain (loss) on investment transactions for
a reporting period may differ significantly from distributions during such
period. Accordingly, the Fund may periodically make reclassifications
among certain of its capital accounts without impacting the net asset
value of the Fund.

At August 31, 2007, the Fund's components of distributable earnings
(accumulated losses) on a tax-basis were as follows:

|Undistributed ordinary income*                        | $       1,719,390  
|----------------------------------------------------- | -------------------
|Undistributed net long-term capital gains             | $       11,987,755 
|Unrealized appreciation (depreciation) on investments | $       (1,893,401)

In addition, the tax character of distributions paid to shareholders by the
Fund aresummarized as follows:

|                                           | Years Ended August 31,
|------------------------------------------ | ----------------------
|                                           | 2007                  
|Distributions from ordinary income*        | $       12,316,291    
|Distributions from long-term capital gains | $       20,516,516    

Redemption Fees. For the period from September 1, 2006 through
March 11, 2007, the redemption or exchange of shares held for less than
30 days were assessed a fee of 2% of the total amount redeemed or
exchanged. Effective March 12, 2007, the Fund imposes a redemption fee
of 2% of the total redemption amount on all Fund shares redeemed or
exchanged within 15 days of buying them, either by purchase or exchange.
This fee is assessed and retained by the Fund for the benefit of the
remaining shareholders. The redemption fee is accounted for as an
addition to paid-in capital.

Expenses. Expenses of the Corporation arising in connection with a
specific fund are allocated to that fund. Other Corporation expenses
which cannot be directly attributed to a fund are apportioned among the
funds in the Corporation.

Contingencies. In the normal course of business, the Fund may enter into
contracts with service providers that contain general indemnification
clauses. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against
the Fund that have not yet been made. However, based on experience,
the Fund expects the risk of loss to be remote.

Other. Investment transactions are accounted for on a trade date plus one
basis for daily net asset value calculations. However, for financial reporting
purposes, investment security transactions are reported on trade date.
Interest income is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date net of foreign withholding taxes. Certain
dividends from foreign securities may be recorded subsequent to the
ex-dividend date as soon as the Fund is informed of such dividends.
Realized gains and losses from investment transactions are recorded on
an identified cost basis.

B. Purchases and Sales of Securities

During the year ended August 31, 2007, purchases and sales of
investment securities (excluding short-term investments) aggregated
$251,630,236 and $259,858,521, respectively.

C. Related Parties

DWS Scudder is part of Deutsche Asset Management, which is the
marketing name in the US for the asset management activities of
Deutsche Bank AG. Deutsche Investment Management Americas Inc.
("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of
Deutsche Bank AG, is the Advisor for the Fund. Prior to January 1, 2007,
Deutsche Asset Management Inc. ("DAMI"), an indirect wholly owned
subsidiary of Deutsche Bank AG, was the Advisor for the Fund. Effective
January 1, 2007, DAMI merged with DIMA. The Board of the Fund
approved a new investment management agreement between the Fund
and DIMA. The new investment management agreement is identical in
substance to the current investment management agreement for the
Fund, except for the named investment advisor.

Management Agreement. Under the Investment Management
Agreement, the Advisor directs the investments of theFundin
accordance with its investment objectives, policies and restrictions. The
Advisor determines the securities, instruments and other contracts
relating to investments to be purchased, sold, or entered into by the Fund
or delegates such responsibility to the Fund's subadvisor. Deutsche Asset
Management (Japan) Limited ("DeAMJ"), an affiliate of the Advisor,
serves as subadvisor with respect to the investment and reinvestment of
assets in theFund, and is paid by the Advisor for its services.

Under the Investment Management Agreement with the Advisor, the
Fund pays a monthly management fee based on the Fund's average daily
net assets computed and accrued daily and payable monthly, at the
following annual rates:

|First $500 million of the Fund's average daily net assets | .850%
|--------------------------------------------------------- | -----
|Next $500 million of such net assets                      | .835%
|Next $1.0 billion of such net assets                      | .820%
|Over $2.0 billion of such net assets                      | .805%

Accordingly, for the year ended August 31, 2007, the fee pursuant to the
management agreement was equivalent to an annual effective rate of
0.850% of the Fund's average daily net assets.

For the period from September 1, 2006 through September 30, 2006, the
Advisor had contractually agreed to waive all or a portion of its
management fee and reimburse or pay certain operating expenses of the
Fund (excluding certain expenses such as extraordinary expenses, taxes,
brokerage, interest, proxy and organizational and offering expenses) to the
extent necessary to maintain the operating expenses of each class as
follows:

|Class A | 1.40%
|------- | -----
|Class B | 2.15%
|Class C | 2.15%
|Class S | 1.15%

Administration Fee. Pursuant to the Administrative Services Agreement,
DIMA provides most administrative services to the Fund. For all services
provided under the Administrative Services Agreement, the Fund pays the
Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's
average daily net assets, computed and accrued daily and payable
monthly. For the year ended August 31, 2007, the Advisor received an
Administration Fee of $212,580, of which $17,403 is unpaid.

Service Provider Fees. DWS Scudder Investments Service Company
("DWS-SISC"), an affiliate of the Advisor, is the transfer agent,
dividend-paying agent and shareholder service agent of the Fund.
Pursuant to a sub-transfer agency agreement between DWS-SISC and
DST Systems, Inc. ("DST"), DWS-SISC has delegated certain transfer
agent and dividend-paying agent functions to DST. DWS-SISC
compensates DST out of the shareholder servicing fee it receives from
the Fund. For the year ended August 31, 2007, the amounts charged to
the Fund by DWS-SISC were as follows:

|Services to Shareholders | Total
Aggregated | Waived        | Unpaid at
August 31, 2007
|------------------------ | ---------------- | ------------- | -------------------------
|Class A                  | $       53,616   | $       6,209 | $       6,684            
|Class B                  | 13,984           | 1,451         | 1,842                    
|Class C                  | 24,757           | 3,738         | 3,110                    
|Class S                  | 49,882           | 4,472         | 6,813                    
|                         | $    142,239     | $    15,870   | $    18,449              

Distribution Service Agreement. Under the Distribution Service
Agreement, in accordance with Rule 12b-1 under the 1940 Act, DWS
Scudder Distributors, Inc. ("DWS-SDI"), an affiliate of the Advisor,
receives a fee ("Distribution Fee") of 0.75% of average daily net assets of
Class B and C shares. Pursuant to the agreement, DWS-SDI enters into
related selling group agreements with various firms at various rates for
sales of Class B and C shares. For the year ended August 31, 2007, the
Distribution Fee was as follows:

|Distribution Fee | Total
Aggregated | Unpaid at
August 31, 2007
|---------------- | ---------------- | -------------------------
|Class B          | 96,750           | 7,364                    
|Class C          | 410,002          | 31,624                   
|                 | $    506,752     | $    38,988              

In addition, DWS-SDI provides information and administrative services for
a fee ("Service Fee") to Class A, B and C shareholders at an annual rate of
up to 0.25% of average daily net assets for each such class. DWS-SDI in
turn has various agreements with financial services firms that provide
these services and pays these fees based upon the assets of shareholder
accounts the firms service. For the year ended August 31, 2007, the
Service Fee was as follows:

|Service Fee | Total
Aggregated | Unpaid at
August 31, 2007 | Annual
Effective Rate
|----------- | ---------------- | ------------------------- | ---------------------
|Class A     | $       162,503  | $       14,476            | .24%                 
|Class B     | 30,649           | 2,559                     | .24%                 
|Class C     | 125,855          | 9,307                     | .23%                 
|            | $    319,007     | $    26,342               |                      

Underwriting Agreement and Contingent Deferred Sales Charge.
DWS-SDI is the principal underwriter for the Fund. Underwriting
commissions paid in connection with the distribution of Class A shares for
the year ended August 31, 2007 aggregated $32,656.

In addition, DWS-SDI receives any contingent deferred sales charge
("CDSC") from Class B share redemptions occurring within six years of
purchase and Class C share redemptions occurring within one year of
purchase. There is no such charge upon redemption of any share
appreciation or reinvested dividends. The CDSC is based on declining
rates ranging from 4% to 1% for Class B and 1% for Class C, of the value
of the shares redeemed. For the year ended August 31, 2007, the CDSC
for Class B and C shares aggregated $39,145 and $47,532, respectively. A
deferred sales charge of up to 1% is assessed on certain redemptions of
Class A shares. For the year ended August 31, 2007, DWS-SDI received
$4,135 for Class A shares.

Typesetting and Filing Service Fees. Under an agreement with DIMA,
DIMA is compensated for providing typesetting and certain regulatory
filing services to the Fund. For the year ended August 31, 2007, the
amount charged to the Fund by DIMA included in the Statement of
Operations under "reports to shareholders" aggregated $49,758, of
which $23,669 is unpaid.

Directors' Fees and Expenses. As compensation for his or her services,
each Independent Director receives an aggregated annual fee, plus a fee
for each meeting attended (plus reimbursement for reasonable
out-of-pocket expenses incurred in connection with his or her attendance
at board and committee meetings) from each fund in the Fund Complex
for which he or she serves. In addition, the Chairperson of the Board and
the Chairperson of each committee of the Board receive additional
compensation for their services. Payment of such fees and expenses is
allocated among all such funds described above in direct proportion to
their relative net assets.

Cash Management QP Trust.Pursuant to an Exemptive Order issued by
the SEC, the Fund may invest in the Cash Management QP Trust (the
"QP Trust") and other affiliated funds managed by the Advisor. The QP
Trust seeks to provide as high a level of current income as is consistent
with the preservation of capital and the maintenance of liquidity. The QP
Trust does not pay its Advisor a management fee for the affiliated funds'
investments in the QP Trust.

D. Share Transactions

The following table summarizes share and dollar activity in the Fund:

|                                                               | Year Ended August 31, 2007 | Year Ended August 31, 2006
|-------------------------------------------------------------- | -------------------------- | --------------------------
|                                                               | Shares                     | Dollars                   
|Shares sold                                                   
|Class A                                                        | 2,018,753                  | $       31,460,991        
|Class B                                                        | 145,643                    | 2,235,061                 
|Class C                                                        | 1,319,846                  | 20,246,272                
|Class S                                                        | 3,189,596                  | 49,721,213                
|                                                               |                            | $    103,663,537          
|Shares issued to shareholders in reinvestment of distributions
|Class A                                                        | 484,532                    | $       7,205,001         
|Class B                                                        | 98,849                     | 1,454,078                 
|Class C                                                        | 409,060                    | 6,017,275                 
|Class S                                                        | 755,572                    | 11,273,139                
|                                                               |                            | $    25,949,493           
|Shares redeemed                                               
|Class A                                                        | (2,757,995)                | $       (43,201,882)      
|Class B                                                        | (251,658)                  | (3,917,151)               
|Class C                                                        | (1,831,026)                | (28,386,735)              
|Class S                                                        | (2,004,894)                | (31,251,855)              
|                                                               |                            | $    (106,757,623)        
|Redemption fees                                                | $    10,210                |                           
|Net increase (decrease)                                       
|Class A                                                        | (254,710)                  | $       (4,528,779)       
|Class B                                                        | (7,166)                    | (227,974)                 
|Class C                                                        | (102,120)                  | (2,122,776)               
|Class S                                                        | 1,940,274                  | 29,745,146                
|                                                               |                            | $    22,865,617           

E. Investing in Foreign Securities

The Fund invests in foreign securities. Investing in securities of foreign
companies and foreign governments involves special risks and
considerations not typically associated with investing in securities of US
companies and the US government. These risks include devaluation of
currencies, future adverse political and economic developments, lack of
liquidity and greater volatility in market prices.

F. Line of Credit

The Fund and other affiliated funds (the "Participants") share in a
$750 million revolving credit facility administered by JPMorgan Chase
Bank N.A. for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual
commitment fee which is allocated, based upon net assets, among each
of the Participants. Interest is calculated at the Federal Funds Rate plus
0.35 percent. The Fund may borrow up to a maximum of 33 percent of its
net assets under the agreement.

At August 31, 2007, the Fund had a $1,450,000 outstanding loan. Interest
expense incurred on the borrowing was $21,849 for the year ended
August 31, 2007. The average dollar amount of the borrowings was
$3,234,783, the weighted average interest rage on these borrowings was
5.36% and the Fund had a loan outstanding for forty-six days throughout
the period.

G. Regulatory Matters and Litigation

Regulatory Settlements. On December 21, 2006, Deutsche Asset
Management ("DeAM") settled proceedings with the Securities and
Exchange Commission ("SEC") and the New York Attorney General on
behalf of Deutsche Asset Management, Inc. ("DAMI") and Deutsche
Investment Management Americas Inc. ("DIMA"), the investment
advisors to many of the DWS Scudder funds, regarding allegations of
improper trading of fund shares at DeAM and at the legacy Scudder and
Kemper organizations prior to their acquisition by DeAM in April 2002.
These regulators alleged that although the prospectuses for certain funds
in the regulators' view indicated that the funds did not permit market
timing, DAMI and DIMA breached their fiduciary duty to those funds in
that their efforts to limit trading activity in the funds were not effective at
certain times. The regulators also alleged that DAMI and DIMA breached
their fiduciary duty to certain funds by entering into certain market timing
arrangements with investors. These trading arrangements originated in
businesses that existed prior to the currently constituted DeAM
organization, which came together as a result of various mergers of the
legacy Scudder, Kemper and Deutsche fund groups, and all of the
arrangements were terminated prior to the start of the regulatory
investigations that began in the summer of 2003. No current DeAM
employee approved these trading arrangements. Under the terms of the
settlements, DAMI and DIMA neither admitted nor denied any
wrongdoing.

The terms of the SEC settlement, which identified improper trading in the
legacy Deutsche and Kemper mutual funds only, provide for payment
of disgorgement in the amount of $17.2 million. The terms of the
settlement with the New York Attorney General provide for payment of
disgorgement in the amount of $102.3 million, which is inclusive of the
amount payable under the SEC settlement, plus a civil penalty in the
amount of $20 million. The total amount payable by DeAM, approximately
$122.3 million, would be distributed in accordance with a distribution plan
to be developed by a distribution consultant. The funds' investment
advisors do not believe these amounts will have a material adverse
financial impact on them or materially affect their ability to perform under
their investment management agreements with the DWS funds. The
above-described amounts are not material to Deutsche Bank, and have
already been reserved.

Among the terms of the settled orders, DeAM is subject to certain
undertakings regarding the conduct of its business in the future, including:
formation of a Code of Ethics Oversight Committee to oversee all matters
relating to issues arising under the advisors' Code of Ethics;
establishment of an Internal Compliance Controls Committee having
overall compliance oversight responsibility of the advisors; engagement of
an Independent Compliance Consultant to conduct a comprehensive
review of the advisors' supervisory compliance and other policies and
procedures designed to prevent and detect breaches of fiduciary duty,
breaches of the Code of Ethics and federal securities law violations by the
advisors and their employees; and commencing in 2008, the advisors
shall undergo a compliance review by an independent third party.

In addition, DeAM is subject to certain further undertakings relating to the
governance of the mutual funds, including that: at least 75% of the
members of the Boards of Trustees/Directors overseeing the DWS Funds
continue to be independent of DeAM; the Chairmen of the DWS Funds'
Boards of Trustees/Directors continue to be independent of DeAM; DeAM
maintain existing management fee reductions for certain funds for a
period of five years and not increase management fees for these certain
funds during this period; the funds retain a senior officer (or independent
consultants, as applicable) responsible for assisting in the review of fee
arrangements and monitoring compliance by the funds and the
investment advisors with securities laws, fiduciary duties, codes of ethics
and other compliance policies, the expense of which shall be borne by
DeAM; and periodic account statements, fund prospectuses and the
mutual funds' web site contain additional disclosure and/or tools that
assist investors in understanding the fees and costs associated with an
investment in the funds and the impact of fees and expenses on fund
returns.

DeAM has also settled proceedings with the Illinois Secretary of State
regarding market timing matters. The terms of the Illinois settlement
provide for investor education contributions totaling approximately
$4 million and a payment in the amount of $2 million to the Securities
Audit and Enforcement Fund.

On September 28, 2006, the SEC and the National Association of
Securities Dealers ("NASD") announced final agreements in which
Deutsche Investment Management Americas Inc. ("DIMA"), Deutsche
Asset Management, Inc. ("DAMI") and Scudder Distributors, Inc. ("SDI")
(now known as DWS Scudder Distributors, Inc.) settled administrative
proceedings regarding disclosure of brokerage allocation practices in
connection with sales of the Scudder Funds' (now known as the DWS
Scudder Funds) shares during 2001-2003. The agreements with the SEC
and NASD are reflected in orders which state, among other things, that
DIMA and DAMI failed to disclose potential conflicts of interest to the
fund Boards and to shareholders relating to SDI's use of certain funds'
brokerage commissions to reduce revenue sharing costs to broker-dealer
firms with whom it had arrangements to market and distribute Scudder
Fund shares. These directed brokerage practices were discontinued in
October 2003.

Under the terms of the settlements, in which DIMA, DAMI and SDI
neither admitted nor denied any of the regulators' findings, DIMA, DAMI
and SDI agreed to pay disgorgement, prejudgment interest and civil
penalties in the total amount of $19.3 million. The portion of the
settlements distributed to the funds was approximately $17.8 million and
was paid to the funds as prescribed by the settlement orders based upon
the amount of brokerage commissions from each fund used to satisfy
revenue sharing agreements with broker-dealers who sold fund shares.
Based on the prescribed settlement order, the Fund was not entitled to a
portion of the settlement.

As part of the settlements, DIMA, DAMI and SDI also agreed to
implement certain measures and undertakings relating to revenue sharing
payments including making additional disclosures in the fund
Prospectuses or Statements of Additional Information, adopting or
modifying relevant policies and procedures and providing regular reporting
to the fund Boards.

Private Litigation Matters. The matters alleged in the regulatory
settlements described above also serve as the general basis of a number
of private class action lawsuits involving the DWS funds. These lawsuits
name as defendants various persons, including certain DWS funds, the
funds' investment advisors and their affiliates, and certain individuals,
including in some cases fund Trustees/Directors, officers, and other
parties. Each DWS fund's investment advisor has agreed to indemnify the
applicable DWS funds in connection with these lawsuits, or other lawsuits
or regulatory actions that may be filed making similar allegations.

Based on currently available information, the funds' investment advisors
believe the likelihood that the pending lawsuits will have a material
adverse financial impact on a DWS fund is remote and such actions are
not likely to materially affect their ability to perform under their investment
management agreements with the DWS funds.

H. Reverse Stock Split

On November 11, 2005, the Fund implemented a reverse stock split for
the following Classes:

|Class A | .72280270 shares for 1 share
|------- | ----------------------------
|Class S | .72649047 shares for 1 share

This action enabled the Fund to bring the net asset value per share of its
various classes into closer alignment, without adversely affecting current
shareholders. Each reverse stock split had no impact on the overall value
of a shareholder's investment in the Fund. Capital share activity
referenced in Note D, Share Transactions and per share data in the
Financial Highlights tables have been updated to reflect the reverse stock
split.

Report of Independent Registered
Public Accounting Firm

To the Board of Directors of DWS Investors Funds, Inc. and the
Shareholders of DWS Japan Equity Fund:

In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of DWS Japan
Equity Fund (the "Fund") at August 31, 2007, and the results of its
operations, the changes in its net assets and the financial highlights for
each of the periods indicated therein, in conformity with accounting
principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial
statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of investments at
August 31, 2007 by correspondence with the custodian and brokers,
provide a reasonable basis for our opinion.

|Boston, Massachusetts
October 25, 2007 | PricewaterhouseCoopers LLP
|-------------------------------------- | --------------------------

Tax Information(Unaudited)

The Fund paid distributions of $1.74 per share from net long-term capital
gains during its year ended August 31, 2007, of which 100% represents
15% rate gains.

Pursuant to Section 852 of the Internal Revenue Code, the Fund
designates $13,187,000 as capital gain dividends for its year ended
August 31, 2007, of which 100% represents 15% rate gains.

The Fund paid foreign taxes of $172,960 and earned $172,960 of foreign
source income during the year ended August 31, 2007. Pursuant to
section 853 of the Internal Revenue Code, the Fund designates $.01 per
share as foreign taxes paid and $.01 per share as income earned from
foreign sources for the year ended August 31, 2007.

For federal Income tax purposes, the Fund designates $2,528,000, or the
maximum amount allowable under tax law, as qualified dividend income.

Please consult a tax advisor if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have
specific questions about your account, please call 1-800-621-1048.

Directors and Officers

The following table presents certain information regarding the Board
Members and Officers of the Trust as of August 31, 2007. 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 Independent Board Member is c/o Dawn-Marie Driscoll, PO Box
100176, Cape Coral, FL 33904. 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 fund. Because the fund does not hold an
annual meeting of shareholders, each Board Member will hold office for
an indeterminate period. The Board Members may also serve in similar
capacities with other funds in the fund complex.

|Independent Board Members                                              
|-----------------------------------------------------------------------
|Name, Year of
Birth, Position
with the Fund
and Length of
Time Served  
|Dawn-Marie
Driscoll (1946)Chairperson
since 2006Board Member
since 2006
|Henry P. Becton,
Jr. (1943)Board Member
since 2006                     
|Keith R. Fox
(1954)Board Member
since 2006                             
|Kenneth C.
Froewiss (1945)Board Member
since 2006                      
|Martin J. Gruber
(1937)Board Member
since 1999                         
|Richard J.
Herring (1946)Board Member
since 1999                       
|Graham E. Jones
(1933)Board Member
since 2002                          
|Rebecca W.
Rimel (1951)Board Member
since 2002                         
|Philip Saunders,
Jr. (1935)Board Member
since 1986                     
|William N.
Searcy, Jr. (1946)Board Member
since 2002                   
|Jean Gleason
Stromberg (1943)Board Member
since 2006                   
|Carl W. Vogt
(1936)Board Member
since 2006                             

|Interested Board Member                                              
|---------------------------------------------------------------------
|Name, Year of
Birth, Position
with the Fund
and Length of
Time Served
|Axel Schwarzer2(1958)Board Member
since 2006                         

|Officers3                                                                           
|------------------------------------------------------------------------------------
|Name, Year of Birth,
Position with the Fund and
Length of Time Served               
|Michael G. Clark5 (1965)President, 2006-present                                     
|John Millette6 (1962)Vice President and Secretary,
2003-present                     
|Paul H. Schubert5 (1963)Chief Financial Officer,
2004-presentTreasurer, 2005-present
|Patricia DeFilippis5(1963)Assistant Secretary,
2005-present                         
|Elisa D. Metzger5 (1962)Assistant Secretary
2005-present                            
|Caroline Pearson6 (1962)Assistant Secretary,
2002-present                           
|Paul Antosca6 (1957)Assistant Treasurer,
2007-present                               
|Kathleen Sullivan D'Eramo6
(1957)Assistant Treasurer,
2003-present                  
|Jason Vazquez4 (1972)Anti-Money Laundering
Compliance Officer,
2007-present         
|Robert Kloby5 (1962)Chief Compliance Officer,
2006-present                          
|J. Christopher Jackson5
(1951)Chief Legal Officer,
2006-present                     

The fund's Statement of Additional Information ("SAI") includes additional information about
the Board Members. The SAI is available, without charge, upon request. If you would like to
request a copy of the SAI, you may do so by calling the following toll-free number:
(800) 621-1048.

Account Management Resources

|                      
|----------------------
|For More
Information  
|Web Site              
|Written
Correspondence
|Proxy Voting          
|Principal
Underwriter 

|              | Class A     | Class B     | Class C     | Class S    
|------------- | ----------- | ----------- | ----------- | -----------
|Nasdaq Symbol | FJEAX       | FJEBX       | FJECX       | FJESX      
|CUSIP Number  | 23339K  109 | 23339K  208 | 23339K  307 | 23339K  406
|Fund Number   | 460         | 660         | 760         | 2369       

jef_notesblank0Notes

jef_backcover0

ITEM 2.
        CODE OF ETHICSAs of the end of the period, August 31, 2007, DWS Japan Equity Fund has a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer.

There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.

A copy of the code of ethics is filed as an exhibit to this Form N-CSR.ITEM 3.
        AUDIT COMMITTEE FINANCIAL EXPERTThe Funds audit committee is comprised solely of trustees who are independent (as such term has been defined by the Securities and Exchange Commission (SEC) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the Regulations)). The Funds Board of Trustees has determined that there are several audit committee financial experts serving on the Funds audit committee. The Board has determined that Keith R Fox, the chair of the Funds audit committee, qualifies as an audit committee financial expert (as such term has been defined by the Regulations) based on its review of Mr. Foxs pertinent experience and education. The SEC has stated that the designation or identification of a person as an audit committee financial expert
pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.ITEM 4.
        PRINCIPAL ACCOUNTANT FEES AND SERVICES
  DWS JAPAN EQUITY FUND FORM N-CSR DISCLOSURE RE: AUDIT FEES The following table shows the amount of fees that PricewaterhouseCoopers, LLP (PWC), the Funds independent registered public accounting firm, billed to the Fund during the Funds last two fiscal years.  The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). Services that the Funds Independent Registered Public Accounting Firm Billed to the Fund  Fiscal YearEndedAugust 31,
        Audit Fees Billed to Fund
        Audit-RelatedFees Billed to Fund
        Tax Fees Billed to Fund
        AllOther Fees Billed to Fund2007
        $62,500
        $0
        $0
        $02006
        $58,100
        $128
        $0
        $0
  The above Audit- Related Fees were billed for agreed upon procedures performed.   Services that the Funds Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers

The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (DeIM or the Adviser), and any entity controlling, controlled by or under common control with DeIM (Control Affiliate) that provides ongoing services to the Fund (Affiliated Fund Service Provider), for engagements directly related to the Funds operations and financial reporting, during the Funds last two fiscal years.




Fiscal YearAugust 31,
        Audit-RelatedFees Billedto Adviser and Affiliated Fund Service Providers
        Tax Fees Billed to Adviser and Affiliated Fund Service Providers
        AllOther Fees Billed to Adviser and Affiliated Fund Service Providers2007
        $98,500
        $25,000
        $02006
        $115,500
        $73,180
        $0



The Audit-Related Fees were billed for services in connection with the agreed-upon procedures related to fund mergers and additional costs related to annual audits and the above Tax Fees were billed in connection with tax consultation and agreed-upon procedures.

Non-Audit Services

The following table shows the amount of fees that PWC billed during the Funds last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Funds operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Funds last fiscal year to the Adviser and any Affiliated Fund Service Provider.  The Committee considered this information in evaluating PWCs independence.




Fiscal YearEndedAugust 31,
        TotalNon-Audit Fees Billed to Fund
(A)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund)
(B)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements)
(C)
        Total of (A), (B)and (C)2007
        $0
        $25,000
        $0
        $25,0002006
        $0
        $73,180
        $15,000
        $88,180



All other engagement fees were billed for services in connection with industry updates for DeIM and other related entities that provide support for the operations of the fund.



ITEM 5.
        AUDIT COMMITTEE OF LISTED REGISTRANTSNot ApplicableITEM 6.
        SCHEDULE OF INVESTMENTSNot ApplicableITEM 7.
        DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.ITEM 8.
        PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.




ITEM 9.
        PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERSNot Applicable.




ITEM 10.
        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSThe Committee on Independent Trustees/Directors selects and nominates Independent Trustees/Directors. Fund shareholders may submit nominees that will be considered by the committee when a Board vacancy occurs. Submissions should be mailed to: c/o Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33910.ITEM 11.
        CONTROLS AND PROCEDURES(a)          The Chief Executive and Financial Officers concluded that the Registrants Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.(b)          There have been no changes in the registrants internal control over financial reporting that occurred during the registrants last half-year (the registrants second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal controls over financial reporting.ITEM 12.
        EXHIBITS(a)(1)     Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.(a)(2)     Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.(b)         Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.


Form N-CSR Item F  SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  Registrant:
        DWS Japan Equity Fund, a series of DWS Investors Funds, Inc.
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        October 29, 2007
   Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.  Registrant:
        DWS Japan Equity Fund, a series of DWS Investors Funds, Inc.
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        October 29, 2007
   By:
        /s/Paul Schubert
 Paul Schubert
 Chief Financial Officer and Treasurer  Date:
        October 29, 2007