UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549  FORM N-CSR  Investment Company Act file number
        811-06071
  DWS Institutional Funds (Exact Name of Registrant as Specified in Charter)  345 Park Avenue New York, NY 10154-0004 (Address of principal executive offices)             (Zip code)  Registrants Telephone Number, including Area Code:(212) 454-7190  Paul Schubert 345 Park Avenue New York, NY 10154-0004 (Name and Address of Agent for Service)  Date of fiscal year end:
        12/31
  Date of reporting period:
        12/31/08
   ITEM 1.REPORT TO STOCKHOLDERS  
 Cash Reserves Fund Institutional Annual Report
to Shareholders December 31, 2008 Contents Cash Reserves Fund Institutional
3Portfolio Management
Review
7Information About Your
Fund's Expenses
9Portfolio Summary
10Financial Statements
13Financial Highlights
14Notes to Financial
Statements
19Report of Independent
Registered Public
Accounting Firm
20Tax Information
21Board Members and
Officers
Cash Management Portfolio
27Investment Portfolio
35Financial Statements
38Financial Highlights
39Notes to Financial
Statements
43Report of Independent
Registered Public
Accounting Firm
44Investment Management
Agreement Approval
49Summary of Management
Fee Evaluation by
Independent Fee Consultant
54Summary of Administrative
Fee Evaluation by
Independent Fee Consultant
55Account 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. An investment in this fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the fund. Please read this fund's prospectus for specific
details regarding its risk profile. DWS Investments is part of Deutsche Bank's Asset Management division and, within the
US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank
Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust
Company. NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY Portfolio Management Review Cash Reserves Fund Institutional: 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 Cash Management Portfolio (the ``Portfolio''), in
which the fund invests all of its assets. DIMA and its predecessors have
more than 80 years of experience managing mutual funds and DIMA
provides a full range of investment advisory services to institutional and
retail clients. 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 is an indirect, wholly owned subsidiary of Deutsche Bank AG.
Deutsche Bank AG is a major global banking institution that is engaged in
a wide range of financial services, including investment management,
mutual funds, retail, private and commercial banking, investment banking
and insurance. A group of investment professionals is responsible for the day-to-day
management of the Portfolio. These investment professionals have a
broad range of experience managing money market funds. In the following interview, the portfolio management team discusses
the market environment and the team's approach to managing Cash
Reserves Fund Institutional during its most recent annual period
ended December 31, 2008. The views expressed in the following discussion reflect those of the portfolio management
team 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. Current and future portfolio holdings are subject to risk. Q: Will you discuss the market environment for the fund during
the most recent annual period? A:Over the past 12 months we witnessed unprecedented and
earthshaking events in the money markets as well as in financial
markets worldwide. The massive credit crunch that originated
with problems in the US subprime mortgage market as well as
securitized mortgages eventually brought down several major
financial firms, and transformed Wall Street. Among other
unprecedented actions, the US government placed Federal
National Mortgage Association (Fannie Mae) and Federal Home
Loan Mortgage Corporation (Freddie Mac) in conservatorship of a
newly-created independent regulator, the Federal Housing
Finance Agency, and injected billions into the banking system
through the Troubled Assets Relief Program (TARP). Within the money market fund industry, major losses caused by
the liquidity squeeze and the collapse of Lehman Brothers forced
one money fund's share price to drop below $1 and another
money fund to close. In the general "flight to quality" that ensued
 amid a market atmosphere of heightened uncertainty over
perceived credit quality  demand for short-term Treasury
securities reached overwhelming levels at several points during
2008; investors prized safety over all other considerations,
including yield.1 In response to the freeze-up in money market
liquidity, the US Federal Reserve Board (the Fed) created new
lending facilities for commercial paper, asset-backed commercial
paper and the money markets.2 By the end of the fourth quarter,
some degree of normalcy seemed to have been restored to the
short-term credit markets in response to government actions.
However, many investors clung to a flight-to-quality stance in light
of rising unemployment, trouble for US automakers, the need for
more Wall Street bailouts, and concern that the recession and
problems in the housing market could go on for some time. By
year end the Fed had reduced short-term interest rates to a target
between 0% and 0.25%, saying that it would now expand its
balance sheet in an attempt to stimulate the financial markets. 1 Credit qualityis a measure of a bond issuer's ability to repay interest and principal in a
timely manner. Rating agencies assign letter designations such as AAA, AA and so forth.
The lower the rating, the higher the probability of default.  As of December 31, 2008, the three-month LIBOR, an industry
standard for measuring three-month taxable money market rates,
stood at 1.43%, compared with 4.70% as of December 31, 2007.3 2 Lending Facility - In their search for answers to the financial crisis and credit crunch,
US Federal Reserve Board (the Fed) officials have created a series of lending facilities to
try to restore liquidity within the financial system and prompt large financial institutions
to resume lending to one another at more accustomed levels. The first such facility the
Fed created was the Term Securities Lending Facility (TSLF), where the Fed agreed to
lend up to $200 billion of Treasury securities to primary dealers secured by a pledge of
other securities. This lending by the Fed was meant to, in turn, prompt further lending
by its borrowers. Since then the Fed has set up commercial paper and asset-backed
commercial paper lending facilities to perform similar liquidity operations in those areas
of the credit market.  3 LIBOR, or the London Interbank Offered Rate, is the most widely used benchmark or
reference rate for short-term interest rates. LIBOR is the rate of interest at which banks
borrow funds from other banks, in large volume, in the international market.  Q: In light of market conditions during the period, what has
been the strategy for the fund? A:Given the difficult situation throughout the investment
markets, and understanding that the credit crunch would not be
a short-term phenomenon, our strategy for the fund during the
earlier part of 2008 was to emphasize liquidity and high credit
quality while looking for ways to maximize yield potential when
opportunities presented themselves. In mid-September, when
conditions in the money markets worsened drastically, we
enacted a significantly more defensive strategy, holding more
overnight securities in the form of repurchase agreements. We
also purchased Treasury and agency instruments as well as
corporate commercial paper in seeking the highest-quality
portfolio given the extremely difficult market conditions. As
conditions ease, we may look to extend maturity cautiously. Performance is historical and does not guarantee future results. Current performance
may be lower or higher than the performance data quoted. 7-Day Current YieldDecember 31, 2008
1.27%*December 31, 2007
4.88%* * The investment advisor has agreed to waive fees/reimburse expenses. Without such fee
waivers/expense reimbursements the 7-day current yield would have been 1.18% as of
December 31, 2008 and 4.81% as of December 31, 2007.  Yields are historical, will fluctuate and do not guarantee future performance. The
7-day current yield refers to the income paid by the portfolio over a 7-day period
expressed as an annual percentage rate of the fund's shares outstanding. Please visit
our Web site at www.moneyfunds.deam-us.db.com for the product's most recent
month-end performance. Q: What detracted from performance during the period? A:The types of securities in which the fund was investing tended
to have lower yields than issues carrying more risk. We preferred
to be cautious during this time of significant market turbulence.
In the end this cost the fund some yield, but we believe that this
represented a prudent approach to preserving principal. Q: Will you describe your investment philosophy? A:We continue to insist on the highest credit quality within the
fund. We continue to apply a careful approach to investing on
behalf of the fund and to seek competitive yield for shareholders. 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 and other Fund expenses. Examples of transaction costs include
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
(July 1, 2008 to December 31, 2008). 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 December 31, 2008Actual Fund Return*Beginning Account Value 7/1/08
$      1,000.00Ending Account Value 12/31/08
$      1,010.80Expenses Paid per $1,000**
$      1.01Hypothetical 5% Fund Return*Beginning Account Value 7/1/08
$      1,000.00Ending Account Value 12/31/08
$      1,024.13Expenses Paid per $1,000**
$      1.02 * Expenses include amounts allocated proportionally from the master portfolio.  ** Expenses are equal to the Fund's annualized expense ratio, multiplied by the average
account value over the period, multiplied by the number of days in the most recent
six-month period, then divided by 366.  Annualized Expense RatioCash Reserves Fund Institutional
.20% For more information, please refer to the Fund's prospectus. Portfolio Summary Asset Allocation(As a % of Investment Portfolio)
12/31/08
12/31/07Commercial Paper
42%
48%Certificates of Deposit and Bank Notes
21%
13%Time Deposits
13%
2%Short-Term Notes
11%
25%Repurchase Agreements
10%
1%Government & Agency Obligations
2%
7%Municipal Bonds and Notes
1%
Master Notes

3%Asset-Backed

1%100%
100% Weighted Average MaturityCash Reserves Fund Institutional
47 days
47 daysFirst Tier Institutional Money Fund Average*
37 days
38 days * The Fund is compared to its respective iMoneyNet category: First Tier Institutional
Money Fund Average  Category includes a widely recognized composite of money
market funds that invest in only first tier (highest rating) securities. Portfolio holdings of
First Tier funds include US Treasury, US Other, Repos, Time Deposits, Domestic Bank
Obligations, Foreign Bank Obligations, First Tier Commercial Paper, Floating Rate Notes
and Asset Backed Commercial Paper.  Asset allocation and weighted average maturity are subject to change. For more complete
details about the Portfolio's holdings, see page 27. A quarterly Fact Sheet is available upon
request. A complete list of the Portfolio's portfolio holdings is posted twice each month on
www.dws-investments.com. Portfolio holdings as of the 15th day of each month are posted
to the Web site on or after month-end and portfolio holdings as of each month-end are
posted to the Web site on or after the 14th day of the following month. More frequent
posting of portfolio holdings information may be made from time to time on
www.dws-investments.com. 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. Financial Statements Statement of Assets and Liabilitiesas of December 31, 2008AssetsInvestment in Cash Management Portfolio, at value
$      4,393,565,595Receivable for Fund shares sold
15,644,596Due from Advisor
31,610Other assets
641,782Total assets
4,409,883,583LiabilitiesDistributions payable
1,062,448Other accrued expenses and payables
232,017Total liabilities
1,294,465Net assets, at value
$   4,408,589,118Net Assets Consist ofUndistributed net investment income
1,162,243Accumulated net realized gain (loss)
(2,343,336)Paid-in capital
4,409,770,211Net assets, at value
$   4,408,589,118Net Asset ValueNet Asset Value, offering and redemption price per share
($4,408,589,118 ÷ 4,409,769,871 outstanding shares of beneficial
interest, $.001 par value, unlimited number of shares authorized)
$   1.00 Statement of Operationsfor the year ended December 31, 2008Investment IncomeIncome and expenses allocated from Cash Management Portfolio:Interest
$      138,830,617Expenses*
(5,794,087)Net investment income allocated from Cash Management Portfolio
133,036,530Expenses:Administration fee
4,542,594Services to shareholders
252,812Professional fees
104,201Trustees' fees and expenses
50,011Reports to shareholders
36,578Registration fees
40,849Temporary guarantee program participation fee
525,917Other
48,773Total expenses before expense reductions
5,601,735Expense reductions
(2,733,935)Total expenses after expense reductions
2,867,800Net investment income
130,168,730Net realized gain (loss) allocated from Cash Management Portfolio
(2,304,943)Net increase (decrease) in net assets resulting from operations
$   127,863,787 * For the year ended December 31, 2008, the Cash Management Portfolio was
reimbursed by the Advisor for fees in the amount of $12,491,030, of which $1,748,841
was allocated to this Fund on a pro-rated basis.  Statement of Changes in Net AssetsYears Ended December 31,Increase (Decrease) in Net Assets
2008
2007Operations:Net investment income
$      130,168,730
$      309,008,818Net realized gain (loss)
(2,304,943)
123,801Net increase (decrease) in net assets resulting from
operations
127,863,787
309,132,619Distributions to shareholders from:Net investment income
(129,132,400)
(309,008,818)Fund share transactions:Proceeds from shares sold
50,579,206,598
49,876,062,056Reinvestment of distributions
89,879,427
213,226,164Cost of shares redeemed
(51,447,895,625)
(50,357,022,287)Net increase (decrease) in net assets from Fund share
transactions
(778,809,600)
(267,734,067)Increase (decrease) in net assets
(780,078,213)
(267,610,266)Net assets at beginning of period
5,188,667,331
5,456,277,597Net assets at end of period (including undistributed
net investment income of $1,162,243 and $125,913,
respectively)
$   4,408,589,118
$   5,188,667,331Other InformationShares outstanding at beginning of period
5,188,579,471
5,456,313,538Shares sold
50,579,206,598
49,876,062,056Shares issued to shareholders in reinvestment of
distributions
89,879,427
213,226,164Shares redeemed
(51,447,895,625)
(50,357,022,287)Net increase (decrease) in Fund shares
(778,809,600)
(267,734,067)Shares outstanding at end of period
4,409,769,871
5,188,579,471 Financial Highlights Years Ended December 31,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$   1.00
$   1.00
$   1.00
$   1.00
$   1.00Income from investment operations:
Net investment income
.027
.051
.049
.031
.013Net realized and unrealized gain (loss)a




Total from investment operations
.027
.051
.049
.031
.013Less distributions from:
Net investment income
(.027)
(.051)
(.049)
(.031)
(.013)Net asset value, end of period
$   1.00
$   1.00
$   1.00
$   1.00
$   1.00Total Return (%)b
2.75
5.27
4.99
3.15
1.26Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
4,409
5,189
5,456
6,493
6,721Ratio of expenses before expense reductions,
including expenses allocated from Cash
Management Portfolio (%)
.29
.28
.28
.26
.26Ratio of expenses after expense reductions,
including expenses allocated from Cash
Management Portfolio (%)
.19
.18
.16
.18
.18Ratio of net investment income (%)
2.86
5.14
4.85
3.08
1.22aAmount is less than $.0005.bTotal return would have been lower had certain expenses not been reduced. Notes to Financial Statements A. Significant Accounting Policies Cash Reserves Fund Institutional (the ``Fund'') is a series of
DWS Institutional Funds (the ``Trust''), 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
Massachusetts business trust. The Fund is one of several funds the Trust
offers to investors. The Fund, a feeder fund, seeks to achieve its investment objective by
investing all of its investable assets in a master portfolio, the Cash
Management Portfolio (the ``Portfolio''), an open-end management
investment company registered under the 1940 Act and advised by
Deutsche Investment Management Americas Inc. (``DIMA" or the
``Advisor''), and the Advisor for the master portfolio. Details concerning the
Portfolio's investment objective and policies and the risk factors
associated with the Portfolio's investments are described in the Fund's
Prospectus and Statement of Additional Information. At December 31, 2008, the Fund owned approximately 15% of the
Portfolio. The financial statements of the Portfolio, including the
Investment Portfolio, are contained elsewhere in this report and
should be read in conjunction with the Fund's financial statements. 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. The
financial statements of the Portfolio, including the Investment Portfolio,
are contained elsewhere in this report and should be read in conjunction
with the Fund's financial statements. Security Valuation.The Fund determines the valuation of its investment in
the Portfolio by multiplying its proportionate ownership of the Portfolio
by the total value of the Portfolio's net assets. The Fund adopted Financial Accounting Standards Board Statement of
Financial Accounting Standards No. 157, "Fair Value Measurements,"
effective at the beginning of the Fund's fiscal year. Disclosure about the
classification of fair value measurements is included at the end of the
Portfolio's Investment Portfolio. Federal Income 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. At December 31, 2008, the Fund had a net tax basis capital loss
carryforward of approximately $2,343,000, which may be applied against
any realized net taxable capital gains of each succeeding year until fully
utilized or until December 31, 2014 ($38,000) and December 31, 2016
($2,305,000), the respective expiration dates, whichever occurs first. The Fund has reviewed the tax positions for the open tax years as of
December 31, 2008, and has determined that no provision for income tax
is required in the Fund's financial statements. The Fund's federal tax
returns for the prior three fiscal years remain subject to examination by
the Internal Revenue Service. Distribution of Income and Gains.Net investment income of the Fund is
declared as a daily dividend and is distributed to shareholders monthly.
The Fund may take into account capital gains and losses in its daily
dividend declarations. The Fund may also make additional distributions for
tax purposes if necessary. Permanent book and tax differences relating to shareholder distributions
will result in reclassifications to paid in capital. Temporary book and tax
differences will reverse in a subsequent period. There were no significant
book to tax differences for the Fund. At December 31, 2008, the Fund's components of distributable earnings
(accumulated losses) on a tax basis were as follows: Undistributed ordinary income
$      1,162,243Capital loss carryforward
$      (2,343,000) In addition, during the year ended December 31, 2008, the tax character
of distributions paid to shareholders by the Fund is summarized as follows: Years Ended December 31,2008
2007Distributions from ordinary income
$      129,132,400
$309,008,818 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.The Fund receives a daily allocation of the Portfolio's net
investment income and net realized gains and losses in proportion to its
investment in the Portfolio. Expenses directly attributed to a fund are
charged to that fund, while expenses which are attributable to the Trust
are allocated among the funds in the Trust on the basis of relative net
assets. B. Fees and Transactions with Affiliates Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor") is an indirect, wholly owned subsidiary of Deutsche Bank AG,
and the Advisor for the master portfolio. Administration Fee.Pursuant to an Administrative Services Agreement,
DIMA provides most administrative services to the Fund. For all services
provided under the Administrative Services Agreement, the Fund pays the
Advisor an annual fee ("Administration fee") of 0.10% of the Fund's
average daily net assets, computed and accrued daily and payable
monthly. For the period from January 1, 2008 through May 13, 2010, DIMA has
contractually agreed to waive all or a portion of its Administration fee and
reimburse or pay certain operating expenses of the Fund (excluding
certain expenses such as extraordinary expenses, taxes, brokerage and
interest) to the extent necessary to maintain the operating expenses at
0.18% of the Fund's average daily net assets, including expenses of the
Portfolio. For the year ended December 31, 2008, the Advisor waived a portion of
its Administration fee as follows: Total
Aggregated
Waived
Unpaid at
December 31,
2008
Annual
Effective RateCash Reserves
Fund Institutional
$      4,542,594
$      2,488,148
$      159,414
.05% Service Provider Fees. DWS Investments Service Company ("DISC"), an
affiliate of the Advisor, is the transfer agent, dividend-paying agent and
shareholder service agent for the Fund. Pursuant to a sub-transfer agency
agreement between DISC and DST Systems, Inc. ("DST"), DISC has
delegated certain transfer agent, dividend-paying agent and shareholder
service agent functions to DST. DISC compensates DST out of the
shareholder servicing fee it receives from the Fund. For the year ended
December 31, 2008, the amount charged to the Fund by DISC aggregated
$215,716, all of which was waived. 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 December 31, 2008, the
amount charged to the Fund by DIMA included in Statement of
Operations under "reports to shareholders" aggregated $15,829, of which
$10,494 is unpaid. Trustees' Fees and Expenses. The Fund paid each Trustee not affiliated
with the Advisor retainer fees plus specified amounts for various
committee services and for the Board Chairperson and Vice Chairperson. In connection with the board consolidation on April 1, 2008, of the two
DWS Funds Boards of Trustees/Directors, certain Independent Board
Members retired prior to their normal retirement date, and received a
one-time retirement benefit. DIMA has agreed to reimburse the Funds for
the cost of this benefit. During the period ended December 31, 2008, the
Fund paid its allocated portion of the retirement benefit of $30,071 to the
non-continuing Independent Board Members, and the Fund was
reimbursed by DIMA for this payment. C. Concentration of Ownership From time to time the Fund may have a concentration of several
shareholders holding a significant percentage of shares outstanding.
Investment activities of these shareholders could have a material impact
on the Fund. At December 31, 2008, there were two shareholders who held
approximately 20% and 17%, respectively, of the outstanding shares of
the Fund. D. Participation in the Treasury's Temporary Guarantee Program The Fund is participating in the Temporary Guarantee Program for Money
Market Funds (the "Program") established by the U.S. Department of the
Treasury (the "Treasury"). The Program is designed to protect the value of accounts in the Fund as
of the close of business on September 19, 2008. According to the terms
of the Program, any investment made by a shareholder after
September 19, 2008 in excess of the amount held in the account as of the
close of business on that date will not be covered by the Program. Any
purchase of shares of the Fund for an account opened after
September 19, 2008 will also not be covered under the Program. The
Program guarantee will apply to the lesser of (i) the number of shares held
in an account as of the close of business on September 19, 2008, or
(ii) the number of shares held in the account on the date the Program
guarantee is triggered. Subject to certain conditions and limitations, the
Program guarantee is triggered if the Fund's net asset value falls below
$0.995 and the Fund is liquidated. Guarantee payments under the
Program will not exceed the amount available within the Treasury's
Exchange Stabilization Fund ("ESF") on the date of payment. The Fund bears the expenses of participating in the Program. The expense
is determined by the product of (i) the number of shares outstanding of
each class as of September 19, 2008 valued at $1.00; and (ii) the
applicable Program participation fee rate, which is based upon the
market-based net asset value outstanding of each share class as of
September 19, 2008. For the initial period ending December 18, 2008, the
Program participation fee was equal to 0.01%. For the coverage under the
Program beginning on December 19, 2008 and ending on April 30, 2009,
the Program participation fee is equal to 0.015%. This expense is being
amortized over the length of the participation in the Program and is
included on the Statement of Operations. Through December 31, 2008,
the Fund has accrued $525,917. The Program is set to terminate on April
30, 2009, unless extended by the Treasury. The Treasury may extend the
program through the close of business on September 18, 2009. If the
Program is extended beyond April 30, 2009, the Fund would need to pay
an additional fee and there can be no assurances that the Fund would
continue to participate. This expense is borne by the Fund without regard
to any expense limitation currently in effect for the Fund. Neither the Fund nor Deutsche Investment Management Americas Inc.,
the Fund's investment advisor, are in any manner approved, endorsed,
sponsored or authorized by the Treasury. Report of Independent Registered
Public Accounting Firm To the Trustees of DWS Institutional Funds and Shareholders of Cash
Reserves Fund Institutional: In our opinion, the accompanying statement of assets and liabilities 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 Cash Reserves Fund Institutional (hereafter referred to as the
``Fund'') at December 31, 2008, 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 audits 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 provide a reasonable basis for our opinion. Boston, Massachusetts
February 25, 2009
PricewaterhouseCoopers LLP Tax Information Please contact 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 (800) 621-1048. Board Members and Officers The following table presents certain information regarding the Board
Members and Officers of the Trust as of December 31, 2008. 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. Except as otherwise noted below, 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. The Length of Time Served represents the year in which the
Board Member joined the board of one or more DWS funds now overseen
by the Board. Independent Board MembersName, Year of
Birth, Position
with the Fund
and Length of
Time Served1
Business Experience and Directorships During the
Past Five Years
Number of
Funds in
DWS Fund
Complex
OverseenPaul K. Freeman
(1950)Chairperson
since 20092Board Member
since 1993
Consultant, World Bank/Inter-American Development Bank;
Governing Council of the Independent Directors Council
(governance, executive committees); formerly, Project
Leader, International Institute for Applied Systems Analysis
(1998-2001); Chief Executive Officer, The Eric Group, Inc.
(environmental insurance) (1986-1998)
134Dawn-Marie
Driscoll (1946)Board Member
since 1987
President, Driscoll Associates (consulting firm); Executive
Fellow, Center for Business Ethics, Bentley University;
formerly, Partner, Palmer & Dodge (1988-1990); Vice
President of Corporate Affairs and General Counsel, Filene's
(1978-1988). Directorships: Trustee of 20 open-end mutual
funds managed by Sun Capital Advisers, Inc. (since 2007);
Director of ICI Mutual Insurance Company (since 2007);
Advisory Board, Center for Business Ethics, Bentley
University; Trustee, Southwest Florida Community
Foundation (charitable organization). Former Directorships:
Investment Company Institute (audit, executive, nominating
committees) and Independent Directors Council
(governance, executive committees)
134John W.
Ballantine (1946)Board Member
since 1999
Retired; formerly, Executive Vice President and Chief Risk
Management Officer, First Chicago NBD Corporation/The
First National Bank of Chicago (1996-1998); Executive Vice
President and Head of International Banking (1995-1996).
Directorships: Healthways, Inc. (provider of disease and care
management services); Portland General Electric (utility
company); Stockwell Capital Investments PLC (private
equity). Former Directorships: First Oak Brook Bancshares,
Inc. and Oak Brook Bank
134Henry P. Becton,
Jr. (1943)Board Member
since 1990
Vice Chair, WGBH Educational Foundation. Directorships:
Association of Public Television Stations; Becton Dickinson
and Company3 (medical technology company); Belo
Corporation3 (media company); Boston Museum of Science;
Public Radio International; PRX, The Public Radio Exchange;
The PBS Foundation. Former Directorships: American Public
Television; Concord Academy; New England Aquarium;
Mass. Corporation for Educational Telecommunications;
Committee for Economic Development; Public Broadcasting
Service
134Keith R. Fox
(1954)Board Member
since 1996
Managing General Partner, Exeter Capital Partners (a series
of private investment funds). Directorships: Progressive
Holding Corporation (kitchen goods importer and distributor);
Box Top Media Inc. (advertising); The Kennel Shop (retailer)
134Kenneth C.
Froewiss (1945)Board Member
since 2001
Clinical Professor of Finance, NYU Stern School of Business
(1997-present); Member, Finance Committee, Association
for Asian Studies (2002-present); Director, Mitsui Sumitomo
Insurance Group (US) (2004-present); prior thereto,
Managing Director, J.P. Morgan (investment banking firm)
(until 1996)
134Richard J.
Herring (1946)Board Member
since 1990
Jacob Safra Professor of International Banking and
Professor, Finance Department, The Wharton School,
University of Pennsylvania (since July 1972); Co-Director,
Wharton Financial Institutions Center (since July 2000);
Director, Japan Equity Fund, Inc. (since September 2007),
Thai Capital Fund, Inc. (since September 2007), Singapore
Fund, Inc. (since September 2007). Formerly, Vice Dean and
Director, Wharton Undergraduate Division (July 1995-June
2000); Director, Lauder Institute of International
Management Studies (July 2000-June 2006)
134William
McClayton (1944)Board Member
since 2004
Managing Director, Diamond Management & Technology
Consultants, Inc. (global management consulting firm)
(2001-present); Directorship: Board of Managers, YMCA of
Metropolitan Chicago; formerly: Senior Partner, Arthur
Andersen LLP (accounting) (1966-2001); Trustee, Ravinia
Festival
134Rebecca W.
Rimel (1951)Board Member
since 1995
President and Chief Executive Officer, The Pew Charitable
Trusts (charitable organization) (1994 to present); Trustee,
Thomas Jefferson Foundation (charitable organization)
(1994 to present); Trustee, Executive Committee,
Philadelphia Chamber of Commerce (2001-2007); Trustee,
Pro Publica (2007-present) (charitable organization).
Formerly, Executive Vice President, The Glenmede Trust
Company (investment trust and wealth management)
(1983-2004); Board Member, Investor Education (charitable
organization) (2004-2005); Director, Viasys Health Care3
(January 2007-June 2007)
134William N.
Searcy, Jr. (1946)Board Member
since 1993
Private investor since October 2003; Trustee of 20 open-end
mutual funds managed by Sun Capital Advisers, Inc. (since
October 1998). Formerly, Pension & Savings Trust Officer,
Sprint Corporation3 (telecommunications) (November
1989-September 2003)
134Jean Gleason
Stromberg (1943)Board Member
since 1997
Retired. Formerly, Consultant (1997-2001); Director, US
Government Accountability Office (1996-1997); Partner,
Fulbright & Jaworski, L.L.P. (law firm) (1978-1996).
Directorships: The William and Flora Hewlett Foundation;
Business Leadership Council, Wellesley College. Former
Directorships: Service Source, Inc., Mutual Fund Directors
Forum (2002-2004), American Bar Retirement Association
(funding vehicle for retirement plans) (1987-1990 and
1994-1996)
134Robert H.
Wadsworth(1940)Board Member
since 1999
President, Robert H. Wadsworth & Associates, Inc.
(consulting firm) (1983 to present); Director, The Phoenix
Boys Choir Association
137 Interested Board MemberName, Year of
Birth, Position
with the Fund
and Length of
Time Served1
Business Experience and Directorships During the
Past Five Years
Number of
Funds in
Fund
Complex
OverseenAxel Schwarzer4(1958)Board Member
since 2006
Managing Director5, Deutsche Asset Management; Head of
Deutsche Asset Management Americas; CEO of DWS
Investments; formerly, board member of DWS Investments,
Germany (1999-2005); formerly, Head of Sales and Product
Management for the Retail and Private Banking Division of
Deutsche Bank in Germany (1997-1999); formerly, various
strategic and operational positions for Deutsche Bank Germany
Retail and Private Banking Division in the field of investment
funds, tax driven instruments and asset management for
corporates (1989-1996)
134 Officers6Name, Year of Birth,
Position with the Fund and
Length of Time Served7
Principal Occupation(s) During Past 5 Years and Other
Directorships HeldMichael G. Clark8 (1965)President, 2006-present
Managing Director5, Deutsche Asset Management
(2006-present); President of DWS family of funds; Director,
ICI Mutual Insurance Company (since October 2007);
formerly, Director of Fund Board Relations (2004-2006) and
Director of Product Development (2000-2004), Merrill Lynch
Investment Managers; Senior Vice President Operations,
Merrill Lynch Asset Management (1999-2000)John Millette9 (1962)Vice President and Secretary,
1999-present
Director5, Deutsche Asset ManagementPaul H. Schubert8 (1963)Chief Financial Officer,
2004-presentTreasurer, 2005-present
Managing Director5, Deutsche Asset Management (since
July 2004); formerly, Executive Director, Head of Mutual
Fund Services and Treasurer for UBS Family of Funds
(1998-2004); Vice President and Director of Mutual Fund
Finance at UBS Global Asset Management (1994-1998)Caroline Pearson9 (1962)Assistant Secretary,
1997-present
Managing Director5, Deutsche Asset ManagementRita Rubin10 (1970)Assistant Secretary,
2009-present
Vice President and Counsel, Deutsche Asset Management
(since October 2007); formerly, Vice President, Morgan
Stanley Investment Management (2004-2007); Attorney,
Shearman & Sterling LLP (2004); Vice President and
Associate General Counsel, UBS Global Asset Management
(2001-2004)Paul Antosca9 (1957)Assistant Treasurer,
2007-present
Director5, Deutsche Asset Management (since 2006); Vice
President, The Manufacturers Life Insurance Company
(U.S.A.) (1990-2006)Jack Clark9 (1967)Assistant Treasurer,
2007-present
Director5, Deutsche Asset Management (since 2007);
formerly, Vice President, State Street Corporation
(2002-2007)Diane Kenneally9(1966)Assistant Treasurer,
2007-present
Director5, Deutsche Asset ManagementJason Vazquez10 (1972)Anti-Money Laundering
Compliance Officer,
2007-present
Vice President, Deutsche Asset Management (since 2006);
formerly, AML Operations Manager for Bear Stearns
(2004-2006), Supervising Compliance Principal and
Operations Manager for AXA Financial (1999-2004)Robert Kloby10 (1962)Chief Compliance Officer,
2006-present
Managing Director5, Deutsche Asset Management
(2004-present); formerly, Chief Compliance Officer/Chief
Risk Officer, Robeco USA (2000-2004); Vice President, The
Prudential Insurance Company of America (1988-2000);
E.F. Hutton and Company (1984-1988)J. Christopher Jackson10
(1951)Chief Legal Officer,
2006-present
Director5, Deutsche Asset Management (2006-present);
formerly, Director, Senior Vice President, General Counsel
and Assistant Secretary, Hansberger Global Investors, Inc.
(1996-2006); Director, National Society of Compliance
Professionals (2002-2005) (2006-2009) 1 The length of time served represents the year in which the Board Member joined the
board of one or more DWS funds currently overseen by the Board.  2 Mr. Freeman assumed the Chairperson role as of January 1, 2009. Prior to that
Ms. Driscoll served as Chairperson of certain DWS funds since 2004.  3 A publicly held company with securities registered pursuant to Section 12 of the
Securities Exchange Act of 1934.  4 The mailing address of Axel Schwarzer is c/o Deutsche Investment Management
Americas Inc., 345 Park Avenue, New York, New York 10154. Mr. Schwarzer is an
interested Board Member by virtue of his positions with Deutsche Asset Management.
As an interested person, Mr. Schwarzer receives no compensation from the fund.  5 Executive title, not a board directorship.  6 As a result of their respective positions held with the Advisor, these individuals are
considered "interested persons" of the Advisor within the meaning of the 1940 Act.
Interested persons receive no compensation from the fund.  7 The length of time served represents the year in which the officer was first elected in
such capacity for one or more DWS funds.  8 Address: 345 Park Avenue, New York, New York 10154.  9 Address: One Beacon Street, Boston, MA 02108.  10 Address: 280 Park Avenue, New York, New York 10017.  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.  (The following financial statements of the
Cash Management Portfolio should be read in conjunction
with the Fund's financial statements.) Investment Portfolioas of December 31, 2008 Principal
Amount ($)
Value ($)Certificates of Deposit and Bank Notes 20.6%Banco Bilbao Vizcaya Argentaria SA:3.09%, 3/9/2009
120,000,000
120,001,1003.1%, 1/12/2009
250,000,000
250,205,767Bank of America NA, 3.7%, 4/3/2009
25,000,000
24,763,611Bank of Nova Scotia, 3.35%, 1/23/2009
148,500,000
148,500,000Bank of Tokyo-Mitsubishi UFJ Ltd.:1.25%, 3/31/2009
350,000,000
350,000,0001.85%, 2/12/2009
420,000,000
420,000,000Barclays Bank PLC:3.17%, 2/19/2009
200,000,000
200,000,0003.18%, 3/3/2009
75,000,000
75,000,000BNP Paribas:1.78%, 3/12/2009
250,000,000
250,000,0003.08%, 3/5/2009
50,000,000
50,000,000Calyon:1.15%, 2/2/2009
400,000,000
400,000,0002.2%, 3/11/2009
52,000,000
52,070,4523.05%, 2/5/2009
10,000,000
9,998,9453.13%, 1/12/2009
2,500,000
2,500,0203.14%, 3/5/2009
150,000,000
150,000,000Canadian Imperial Bank of Commerce:1.68%, 2/10/2009
300,000,000
300,000,0003.67%, 1/21/2009
350,000,000
350,001,926DNB NOR Bank ASA:3.07%, 3/9/2009
212,600,000
212,600,0003.7%, 1/23/2009
215,750,000
215,750,000HSBC Bank PLC, 0.55%, 1/20/2009
50,000,000
50,000,000Metropolitan Life Global Funding I, 144A, 3.8%, 1/20/2009
91,500,000
91,500,000Mizuho Corporate Bank Ltd.:1.21%, 3/23/2009
126,250,000
126,252,8322.19%, 3/12/2009
500,000,000
500,009,669Nordea Bank Finland PLC, 2.51%, 6/5/2009
98,000,000
98,066,398Rabobank Nederland NV, 3.0%, 2/26/2009
127,750,000
127,750,000Svenska Handelsbanken AB:1.35%, 3/31/2009
238,000,000
238,499,5071.985%, 3/11/2009
350,000,000
350,003,3382.0%, 3/12/2009
305,000,000
305,135,5182.05%, 3/11/2009
130,000,000
130,012,396Toronto-Dominion Bank, 2.0%, 5/12/2009
244,000,000
244,000,000Westpac Banking Corp., 1.2%, 4/13/2009
270,000,000
270,000,000Total Certificates of Deposit and Bank Notes (Cost $6,112,621,479)
6,112,621,479Commercial Paper 41.7%Issued at Discount**Alcon Capital Corp.:2.25%, 1/21/2009
100,000,000
99,875,0002.5%, 5/8/2009
50,000,000
49,559,028Alpine Securitization:0.25%, 1/20/2009
50,000,000
49,993,4031.0%, 1/28/2009
50,000,000
49,962,5001.35%, 1/12/2009
300,000,000
299,876,2501.35%, 1/23/2009
375,000,000
374,690,625ASB Finance Ltd., 3.1%, 3/6/2009
100,000,000
99,448,889AT&T Inc.:0.1%, 1/14/2009
5,000,000
4,999,8190.18%, 1/29/2009
45,000,000
44,993,7000.75%, 1/7/2009
100,000,000
99,987,500Atlantic Asset Securitization LLC, 0.7%, 1/12/2009
30,000,000
29,993,583Australia & New Zealand Banking Group Ltd., 2.2%,
2/6/2009
110,000,000
109,758,000Bank of America Corp., 3.1%, 2/12/2009
66,500,000
66,259,492BNP Paribas Finance, Inc., 0.935%, 3/30/2009
500,000,000
498,857,222BP Capital Markets PLC:1.285%, 3/5/2009
200,000,000
199,550,2501.3%, 3/16/2009
125,000,000
124,665,972Calyon North America, Inc., 0.26%, 1/30/2009
142,000,000
141,970,259Cancara Asset Securitisation LLC, 0.95%, 1/9/2009
200,000,000
199,957,778Coca-Cola Co., 1.45%, 2/11/2009
200,000,000
199,669,722Colgate-Palmolive Co.:0.05%, 1/6/2009
50,000,000
49,999,6530.05%, 1/9/2009
6,900,000
6,899,9230.08%, 1/30/2009
44,000,000
43,997,1640.09%, 1/14/2009
30,000,000
29,999,025Danske Corp., 3.81%, 1/28/2009
110,700,000
110,383,675DnB NOR Bank ASA, 2.0%, 3/13/2009
390,000,000
388,461,667Eli Lilly & Co., 1.45%, 2/17/2009
100,000,000
99,810,694European Investment Bank:0.85%, 6/11/2009
320,000,000
318,783,5561.775%, 3/6/2009
200,000,000
199,368,889General Electric Co.:1.2%, 8/31/2009
200,000,000
198,386,6672.84%, 2/4/2009
300,000,000
299,195,3332.84%, 2/6/2009
225,000,000
224,361,0003.35%, 4/20/2009
225,000,000
222,717,813Gotham Funding Corp.:1.35%, 3/4/2009
100,000,000
99,767,5001.5%, 1/7/2009
19,000,000
18,995,2501.6%, 1/16/2009
172,954,000
172,838,697ING (US) Funding LLC, 0.5%, 1/9/2009
100,000,000
99,988,889Johnson & Johnson:2.2%, 1/29/2009
100,000,000
99,828,8892.25%, 1/20/2009
100,000,000
99,881,2502.25%, 1/23/2009
50,000,000
49,931,250Jupiter Securitization Co., LLC, 1.2%, 1/14/2009
25,033,000
25,022,152Kingdom of Denmark:0.75%, 4/22/2009
131,000,000
130,697,0630.77%, 4/24/2009
250,000,000
249,395,764Kreditanstalt fuer Wiederaufbau, 1.05%, 3/4/2009
1,500,000
1,497,288Liberty Street Funding LLC:1.75%, 3/13/2009
50,000,000
49,827,4312.15%, 2/13/2009
32,000,000
31,917,822Market Street Funding LLC:2.0%, 3/5/2009
120,000,000
119,580,0002.4%, 3/16/2009
350,000,000
348,273,333Microsoft Corp.:0.1%, 2/27/2009
15,460,000
15,457,5520.15%, 3/13/2009
7,000,000
6,997,9290.15%, 3/19/2009
4,000,000
3,998,717Nestle Capital Corp., 2.5%, 5/5/2009
50,000,000
49,569,444Nieuw Amsterdam Receivables Corp.:1.7%, 1/15/2009
245,000,000
244,838,0282.0%, 1/5/2009
200,000,000
199,955,556Park Avenue Receivables Corp.:1.1%, 1/14/2009
50,072,000
50,052,1101.2%, 1/21/2009
25,000,000
24,983,333Pfizer, Inc.:0.5%, 5/11/2009
50,000,000
49,909,7221.15%, 4/6/2009
112,000,000
111,660,1111.3%, 4/15/2009
290,000,000
288,910,8892.52%, 3/2/2009
50,000,000
49,790,000Procter & Gamble Co.:1.2%, 2/11/2009
32,000,000
31,956,2671.3%, 1/30/2009
100,000,000
99,895,2781.6%, 2/11/2009
40,000,000
39,927,1112.0%, 2/26/2009
15,000,000
14,953,333Procter & Gamble International Funding SCA:0.35%, 4/3/2009
100,000,000
99,910,5561.05%, 1/23/2009
50,000,000
49,967,9171.1%, 3/16/2009
100,000,000
99,773,8891.15%, 3/16/2009
50,000,000
49,881,8061.18%, 1/23/2009
50,000,000
49,963,9441.4%, 3/4/2009
86,000,000
85,792,6442.23%, 1/29/2009
30,000,000
29,947,9672.23%, 2/6/2009
80,000,000
79,821,6002.23%, 2/12/2009
60,000,000
59,843,9002.23%, 2/20/2009
100,000,000
99,690,2782.23%, 2/26/2009
10,000,000
9,965,311Romulus Funding Corp., 1.0%, 1/2/2009
84,770,000
84,767,645Royal Bank of Canada, 0.07%, 1/30/2009
100,000,000
99,994,361Sanpaolo IMI US Financial Co., 0.34%, 2/2/2009
400,000,000
399,879,111Sheffield Receivables Corp., 1.5%, 1/8/2009
150,000,000
149,956,250Shell International Finance BV:1.75%, 4/30/2009
113,000,000
112,346,3262.1%, 5/1/2009
100,000,000
99,300,0002.4%, 5/11/2009
62,000,000
61,462,667Siemens Capital Co., LLC, 0.95%, 3/2/2009
100,000,000
99,841,667Societe Generale North America, Inc., 1.705%, 3/27/2009
400,000,000
398,389,722Starbird Funding Corp.:1.85%, 3/23/2009
76,000,000
75,683,6501.85%, 3/25/2009
63,000,000
62,731,2881.9%, 3/19/2009
103,000,000
102,581,4192.3%, 1/5/2009
30,000,000
29,992,3332.45%, 3/9/2009
100,000,000
99,544,028Tempo Finance Corp., 2.05%, 1/8/2009
150,000,000
149,940,208Thunder Bay Funding LLC:0.5%, 1/20/2009
70,490,000
70,471,3981.3%, 3/2/2009
98,561,000
98,347,4511.35%, 1/23/2009
41,588,000
41,553,6901.45%, 3/20/2009
34,592,000
34,483,3234.25%, 1/23/2009
84,769,000
84,548,836Toronto Dominion Holdings (USA), Inc., 3.72%, 2/23/2009
300,000,000
298,357,000Toyota Motor Credit Corp.:0.45%, 1/16/2009
20,000,000
19,996,2500.75%, 2/3/2009
115,000,000
114,920,9372.1%, 4/1/2009
210,000,000
208,897,5002.1%, 4/2/2009
250,000,000
248,672,9173.4%, 1/26/2009
220,000,000
219,480,556Victory Receivables Corp.:1.05%, 2/23/2009
90,000,000
89,860,8751.25%, 1/20/2009
111,897,000
111,823,1791.65%, 1/23/2009
161,910,000
161,746,741Total Commercial Paper (Cost $12,360,863,149)
12,360,863,149Government & Agency Obligations 2.5%US Government Sponsored Agencies 2.4%Federal Home Loan Bank:0.04%**, 1/6/2009
10,656,000
10,655,9410.15%**, 1/23/2009
5,000,000
4,999,5422.2%, 4/1/2009
20,000,000
20,083,8462.61%, 6/3/2009
30,000,000
30,000,000Federal Home Loan Mortgage Corp.:0.55%**, 8/3/2009
365,000,000
363,806,6535.0%, 1/16/2009
40,000,000
40,035,962Federal National Mortgage Association:0.5%**, 7/1/2009
190,700,000
190,220,6010.5%**, 7/20/2009
60,000,000
59,833,333719,635,878US Treasury Obligations 0.1%US Treasury Bills:0.065%**, 2/12/2009
3,606,000
3,605,7270.1%**, 6/11/2009
4,776,000
4,773,8640.145%**, 6/18/2009
2,411,000
2,409,3690.22%**, 6/25/2009
3,371,000
3,367,3950.645%**, 5/15/2009
10,400,000
10,375,0311.07%**, 1/15/2009
1,734,000
1,733,27826,264,664Total Government & Agency Obligations (Cost $745,900,542)
745,900,542Short Term Notes* 11.3%Abbey National Treasury Services PLC:0.881%, 4/24/2009
125,500,000
125,500,0001.435%, 2/13/2009
50,000,000
50,000,0002.417%, 2/20/2009
187,250,000
187,250,000American Honda Finance Corp., 144A, 1.596%, 3/25/2009
100,000,000
100,000,000Australia & New Zealand Banking Group Ltd.:144A, 2.409%, 7/10/2009
96,000,000
96,000,000144A, 2.426%, 7/2/2009
199,350,000
199,347,438Bank of America NA, 144A, 4.35%, 7/6/2009
195,000,000
195,000,000Bank of Scotland PLC, 2.916%, 6/5/2009
123,250,000
123,250,000Barclays Bank PLC, 0.097%, 2/27/2009
30,000,000
30,000,000BNP Paribas, 2.445%, 5/13/2009
84,100,000
84,100,000Calyon, 1.025%, 1/16/2009
200,000,000
200,018,750Credit Agricole SA, 144A, 1.775%, 7/22/2009
296,500,000
296,500,000General Electric Co., 0.501%, 9/24/2009
135,000,000
135,000,000ING Bank NV, 144A, 1.716%, 3/26/2009
84,000,000
84,000,000Intesa Sanpaolo SpA, 1.695%, 5/13/2009
125,000,000
125,000,000Metropolitan Life Global Funding I:144A, 4.57%, 5/11/2009
66,500,000
66,500,000144A, 5.193%, 4/13/2009
35,000,000
35,000,000National Australia Bank Ltd.:144A, 2.438%, 2/19/2009
179,750,000
179,750,0004.543%, 4/7/2009
125,750,000
125,750,000Natixis, 2.442%, 4/6/2009
268,500,000
268,500,000Procter & Gamble International Funding SCA, 2.308%,
2/19/2009
64,000,000
64,000,000Rabobank Nederland NV, 144A, 2.577%, 10/9/2009
179,250,000
179,250,000Royal Bank of Canada, 144A, 1.595%, 7/15/2009
171,500,000
171,500,214Svenska Handelsbanken AB, 144A, 3.885%, 5/26/2009
25,000,000
25,000,000Toyota Motor Credit Corp.:0.36%, 3/12/2009
110,000,000
110,000,0000.36%, 3/19/2009
100,000,000
100,000,000Total Short Term Notes (Cost $3,356,216,402)
3,356,216,402Time Deposits 13.0%ABN AMRO Bank NV, 0.005%, 1/2/2009
600,000,000
600,000,000Bank of the West, 0.01%, 1/2/2009
284,000,000
284,000,000Canadian Imperial Bank of Commerce, 0.01%, 1/2/2009
30,000,000
30,000,000ING Bank NV:0.02%, 1/2/2009
126,000,000
126,000,000KBC Bank NV, Zero Coupon, 1/2/2009
1,200,000,000
1,200,000,000National Bank of Canada, 0.03%, 1/2/2009
98,000,000
98,000,000Royal Bank of Canada, 0.01%, 1/2/2009
154,000,000
154,000,000Societe Generale, 0.02%, 1/2/2009
60,000,000
60,000,000UBS AG, Zero Coupon, 1/2/2009
1,300,000,000
1,300,000,000Total Time Deposits (Cost $3,852,000,000)
3,852,000,000Municipal Bonds and Notes 0.7%Massachusetts, State Health & Educational Facilities
Authority Revenue, Boston University, Series N,
1.15%***, 10/1/2034, Bank of America NA (a)
58,250,000
58,250,000Massachusetts, State Health & Educational Facilities
Authority Revenue, Northeastern University, Series X,
1.65%***, 10/1/2028, TD Bank NA (a)
12,260,000
12,260,000New York, NY, General Obligation, Series J14,
3.75%***, 8/1/2019
41,855,000
41,855,000Ohio, Housing Finance Agency, Mortgage Revenue,
Residential-Mortgage Backed, Series D, AMT,
0.9%***, 9/1/2036
45,000,000
45,000,000Wisconsin, Housing & Economic Development
Authority, Home Ownership Revenue, Series B,
2.25%***, 3/1/2033
38,000,000
38,000,000Total Municipal Bonds and Notes (Cost $195,365,000)
195,365,000Repurchase Agreements 10.1%Banc of America Securities LLC, 0.08%, dated 12/31/2008,
to be repurchased at $525,002,333 on 1/2/2009 (b)
525,000,000
525,000,000BNP Paribas, 0.005%, dated 12/31/2008, to be
repurchased at $600,000,167 on 1/2/2009 (c)
600,000,000
600,000,000The Goldman Sachs & Co., 0.005%, dated 12/31/2008, to
be repurchased at $144,657,040 on 1/2/2009 (d)
144,657,000
144,657,000The Goldman Sachs & Co., 0.04%, dated 12/31/2008, to be
repurchased at $673,361,496 on 1/2/2009 (e)
673,360,000
673,360,000The Goldman Sachs & Co., 0.04%, dated 12/31/2008, to be
repurchased at $1,050,005,833 on 1/5/2009 (f)
1,050,000,000
1,050,000,000Total Repurchase Agreements (Cost $2,993,017,000)
2,993,017,000 % of Net
Assets
Value ($)Total Investment Portfolio(Cost $29,615,983,572)+
99.9
29,615,983,572Other Assets and Liabilities, Net
0.1
37,205,958Net Assets
100.0
29,653,189,530 * Floating rate notes are securities whose yields vary with a designated market index or
market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities
are shown at their current rate as of December 31, 2008.  ** Annualized yield at time of purchase; not a coupon rate.  *** Variable rate demand notes are securities whose interest rates are reset periodically at
market levels. These securities are often payable on demand and are shown at their
current rates as of December 31, 2008.  +  The cost for federal income tax purposes was $29,615,983,572.  (a) Security incorporates a letter of credit from the bank listed.  (b) Collateralized by:  Principal
Amount ($)
Security
Rate (%)
Maturity Date
Collateral
Value ($)25,102,245
Federal Home Loan
Mortgage Corp.
5.0
7/1/2035
25,750,000501,130,382
Federal National
Mortgage Association
5.0
7/1/2035
515,000,000Total Collateral Value
$   540,750,000 (c) Collateralized by:  Principal
Amount ($)
Security
Rate (%)
Maturity Date
Collateral
Value ($)384,593,045
US Treasury STRIPS
Zero Coupon
8/15/2010-
11/15/2021
288,310,797302,795,200
US Treasury
Inflation-Indexed Bond
1.875
7/15/2015
323,689,253Total Collateral Value
$   612,000,050 (d) Collateralized by $104,092,000 US Treasury Bond, 6.25%, maturing on 8/15/2023 with a
value of $147,550,150.  (e) Collateralized by:  Principal
Amount ($)
Security
Rate (%)
Maturity Date
Collateral
Value ($)400,980,861
Federal National
Mortgage Association
5.0-6.0
10/1/2037-
12/1/2038
413,302,208266,294,342
Federal Home Loan
Mortgage Corp.
5.0-5.5
3/1/2037-
12/1/2038
273,524,992Total Collateral Value
$   686,827,200 (f) Collateralized by:  Principal
Amount ($)
Security
Rate (%)
Maturity Date
Collateral
Value ($)1,025,844,952
Federal National
Mortgage Association
5.0-6.0
4/1/2035-
12/1/2038
1,055,710,96014,770,950
Federal Home Loan
Mortgage Corp.
6.0
12/1/2038
15,289,041Total Collateral Value
$   1,071,000,001 144A: Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration, normally to
qualified institutional buyers. AMT: Subject to alternative minimum tax. Fair Value Measurements Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements," establishes a three-tier hierarchy for measuring fair value and
requires additional disclosure about the classification of fair value measurements. Various inputs are used in determining the value of the Fund's investments. These inputs are
summarized in three broad levels. Level 1 includes quoted prices in active markets for
identical securities. Level 2 includes other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3
includes significant unobservable inputs (including the Fund's own assumptions in
determining the fair value of investments). The inputs or methodology used for valuing
securities are not necessarily an indication of the risk associated with investing in those
securities. Securities held by a money market fund are reflected as Level 2 because the
securities are valued at amortized cost (which approximates fair value) and, accordingly, the
inputs used to determine value are not quoted prices in an active market. The following is a summary of the inputs used as of December 31, 2008 in valuing the
Portfolio's investments. For information on the Portfolio's policy regarding the valuation of
investments, please refer to the Security Valuation section of Note A in the accompanying
Notes to the Financial Statements. Valuation Inputs
Investments in
SecuritiesLevel 1
$      Level 2
29,615,983,572Level 3
Total
$   29,615,983,572 Financial Statements Statement of Assets and Liabilitiesas of December 31, 2008AssetsInvestments in securities, valued at amortized cost
$      26,622,966,572Repurchase agreements, valued at amortized cost
2,993,017,000Cash
52,827,101Interest receivable
37,091,083Other assets
735,942Total assets
29,706,637,698LiabilitiesPayable for investments purchased
50,106,119Accrued advisory fee
2,022,436Other accrued expenses and payables
1,319,613Total liabilities
53,448,168Net assets, at value
$   29,653,189,530 Statement of Operationsfor the year ended December 31, 2008Investment IncomeIncome:Interest
$      968,703,648Expenses:Advisory fee
40,442,627Administration fee
9,745,032Custodian fee
1,130,011Professional fees
417,104Trustees' fees and expenses
1,236,792Other
1,058,013Total expenses before expense reductions
54,029,579Expense reductions
(12,491,030)Total expenses after expense reductions
41,538,549Net investment income
927,165,099Net realized gain (loss)
(6,875,939)Net increase (decrease) in net assets resulting from operations
$   920,289,160 Statement of Changes in Net AssetsYears Ended December 31,Increase (Decrease) in Net Assets
2008
2007Operations:Net investment income
$      927,165,099
$      1,079,019,089Net realized gain (loss)
(6,875,939)
840,140Net increase (decrease) in net assets resulting from
operations
920,289,160
1,079,859,229Capital transaction in shares of beneficial interest:Proceeds from capital invested
373,665,603,010
284,201,163,257Value of capital withdrawn
(378,671,753,786)
(260,418,815,249)Net increase (decrease) in net assets from capital
transactions in shares of beneficial interest
(5,006,150,776)
23,782,348,008Increase (decrease) in net assets
(4,085,861,616)
24,862,207,237Net assets at beginning of period
33,739,051,146
8,876,843,909Net assets at end of period
$   29,653,189,530
$   33,739,051,146 Financial Highlights Years Ended December 31,
2008
2007
2006
2005
2004Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
29,653
33,739
8,877
9,931
9,812Ratio of expenses before expense
reductions (%)
.17
.17
.20
.21
.21Ratio of expenses after expense
reductions (%)
.13
.14
.18
.18
.18Ratio of net investment income (%)
2.85
5.14
4.83
3.08
1.22Total Return (%)a,b
2.81
5.31
4.97
3.15
1.26aTotal return would have been lower had certain expenses not been reduced.bTotal return for the Portfolio was derived from the performance of Cash Reserves Fund
Institutional. Notes to Financial Statements A. Significant Accounting Policies Cash Management Portfolio (the ``Portfolio'') is registered under the
Investment Company Act of 1940, as amended (the ``1940 Act''), as an
open-end management investment company organized as a New York
business trust. The Portfolio'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 Portfolio in the preparation of its financial statements. Security Valuation.The Portfolio's securities are valued utilizing the
amortized cost method permitted in accordance with Rule 2a-7 under the
1940 Act and certain conditions therein. Under this method, which does
not take into account unrealized capital gains or losses on securities, an
instrument is initially valued at its cost and thereafter assumes a constant
accretion/amortization rate to maturity of any discount or premium. Investments in open-end investment companies are valued at their net
asset value each business day. The Fund adopted Financial Accounting Standards Board Statement of
Financial Accounting Standards No. 157, "Fair Value Measurements,"
effective at the beginning of the Portfolio's fiscal year. Disclosure about
the classification of fair value measurements is included at the end of the
Portfolio's Investment Portfolio. Repurchase Agreements.The Portfolio may enter into repurchase
agreements with certain banks and broker/dealers whereby the Portfolio,
through its custodian or sub-custodian bank, receives delivery of the
underlying securities, the amount of which at the time of purchase and
each subsequent business day is required to be maintained at such a level
that the value is equal to at least the principal amount of the repurchase
price plus accrued interest. The custodian bank holds the collateral in a
separate account until the agreement matures. If the value of the
securities falls below the principal amount of the repurchase agreement
plus accrued interest, the financial institution deposits additional collateral
by the following business day. If the financial institution either fails to
deposit the required additional collateral or fails to repurchase the
securities as agreed, the Portfolio has the right to sell the securities and
recover any resulting loss from the financial institution. If the financial
institution enters into bankruptcy, the Portfolio's claims on the collateral
may be subject to legal proceedings. Federal Income Taxes.The Portfolio is considered a Partnership under the
Internal Revenue Code, as amended. Therefore, no federal income tax
provision is necessary. It is intended that the Portfolio's assets, income and distributions will be
managed in such a way that an investor in the Portfolio will be able to
satisfy the requirements of Subchapter M of the Code, assuming that the
investor invested all of its assets in the Portfolio. The Portfolio has reviewed the tax positions for the open tax years as of
December 31, 2008 and has determined that no provision for income tax
is required in the Portfolio's financial statements. The Portfolio's federal
tax returns for the prior three fiscal years remain subject to examination
by the Internal Revenue Service. Contingencies.In the normal course of business, the Portfolio may enter
into contracts with service providers that contain general indemnification
clauses. The Portfolio's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against
the Portfolio that have not yet been made. However, based on experience,
the Portfolio expects the risk of loss to be remote. Other.Investment transactions are accounted for on trade date. Interest
income is recorded on the accrual basis. Distributions of income and
capital gains from investment companies are recorded on the ex-dividend
date. Realized gains and losses from investment transactions are recorded
on an identified cost basis. All discounts and premiums are
accreted/amortized for both tax and financial reporting purposes. The Portfolio makes a daily allocation of its net investment income and
realized gains and losses from securities transactions to its investors in
proportion to their investment in the Portfolio. B. Fees and Transactions with Affiliates Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor") is an indirect, wholly owned subsidiary of Deutsche Bank AG,
and the Advisor for the master portfolio. Under the Advisor Agreement, the Portfolio pays the Advisor a monthly
advisory fee based on its average daily net assets, computed and accrued
daily and payable monthly, at the following annual rates: First $3.0 billion of the Portfolio's average daily net assets
.150%Next $4.5 billion of such net assets
.133%Over $7.5 billion of such net assets
.120% For the period from January 1, 2008 through July 29, 2010, the Advisor
has contractually agreed to reimburse or pay certain operating expenses
at 0.15% of the Portfolio's average daily net assets (excluding certain
expenses such as extraordinary expenses, taxes, brokerage and interest). For the period from January 1, 2008 through February 4, 2008, the
Advisor had voluntarily agreed to maintain total operating expenses at
0.11% of the Portfolio's average daily net assets (excluding certain
expenses such as extraordinary expenses, taxes, brokerage and interest).
For the period from February 5, 2008 through December 31, 2008, the
Advisor has voluntarily agreed to maintain total operating expenses at
0.13% of its average daily net assets (excluding certain expenses such as
extraordinary expenses, taxes, brokerage and interest). The amount of the
waiver and whether the Advisor and Administrator waive a portion of its
fee may vary at any time without notice to shareholders. Accordingly, for the year ended December 31, 2008, the Portfolio incurred
an advisory fee equivalent to the following annual effective rate of the
Portfolio's average daily net assets: Total
Aggregated
Waived
Annual
Effective RateCash Management Portfolio
$      40,442,627
$      12,102,098
.09% Administration Fee. Pursuant to an Administrative Services Agreement
with the Advisor, the Advisor provides most administrative services to the
Portfolio. For all services provided under the Administrative Services
Agreement, the Portfolio pays the Advisor an annual fee ("Administration
fee") of 0.03% of the Portfolio's average daily net assets, computed and
accrued daily and payable monthly. For the year ended December 31,
2008, the Advisor received an Administration fee of $9,745,032, of which
$730,622 is unpaid. Trustees'/Directors' Fees and Expenses. The Portfolio paid each
Trustee/Director not affiliated with the Advisor retainer fees plus specified
amounts for various committee services and for the Board Chairperson
and Vice Chairperson. In connection with the Board consolidation on April 1, 2008, of the two
DWS Portfolios' Boards of Trustees/Directors, certain Independent Board
Members retired prior to their normal retirement date and received a
one-time retirement benefit. DIMA has agreed to reimburse the Portfolios
for the cost of this benefit. During the period ended December 31, 2008,
the Portfolio paid its allocated portion of the retirement benefit of
$182,019 to the non-continuing Independent Board Members, and the
Portfolio was reimbursed by DIMA for this payment. C. Fee Reductions The Portfolio has entered into an arrangement with its custodian whereby
credits realized as a result of uninvested cash balances are used to reduce
a portion of the Portfolio's custodian expenses. During the year ended
December 31, 2008, the Portfolio's custodian fee was reduced by
$206,913 for custody credits earned. D. Line of Credit The Portfolio and other affiliated funds (the "Participants") share in a
$490 million revolving credit facility provided by a syndication of banks.
The Portfolio may borrow for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the
untimely disposition of securities. The Participants are charged an annual
commitment fee which is allocated based on net assets, among each of
the Participants. Interest is calculated at the Federal Portfolios Rate plus
0.35 percent. The Portfolio may borrow up to a maximum of 5 percent of
its net assets under the agreement. Report of Independent Registered
Public Accounting Firm To the Trustees and Holders of Beneficial Interest of
Cash Management Portfolio: In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations and of changes in net assets and the financial highlights
presents fairly, in all material respects, the financial position of Cash
Management Portfolio (hereafter referred to as the ``Portfolio'') at
December 31, 2008, 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 Portfolio'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 audits 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 securities at December 31, 2008 by correspondence with
the custodian and brokers, provide a reasonable basis for our opinion. Boston, Massachusetts
February 25, 2009
PricewaterhouseCoopers LLP Investment Management Agreement
Approval The Fund, a series of DWS Institutional Funds, invests all of its assets in
Cash Management Portfolio (the "Portfolio") in order to achieve its
investment objectives. The Portfolio's Board of Trustees (which is also the
Board of Trustees for the Fund), including the Independent Trustees,
approved the renewal of the Portfolio's investment management
agreement (the "Portfolio Agreement") with Deutsche Investment
Management Americas Inc. ("DIMA") and the Fund's investment
management agreement with DIMA (the "Fund Agreement," and together
with the Portfolio Agreement, the "Agreements") in September 2008. In terms of the process that the Board followed prior to approving the
Agreements, shareholders should know that: •    At the present time, all but one of the Portfolio's and Fund's Trustees
are independent of DIMA and its affiliates. •    The Trustees meet frequently to discuss fund matters. Each year, the
Trustees dedicate part or all of several meetings to contract review
matters. Over the course of several months, the Board's Contract
Committee, in coordination with the Board's Fixed Income and Quant
Oversight Committee, reviewed comprehensive materials received
from DIMA, independent third parties and independent counsel. These
materials included an analysis of the Fund's performance, fees and
expenses, and profitability compiled by the Fund's independent fee
consultant. The Board also received extensive information throughout
the year regarding performance of the Fund. •    The Trustees regularly meet privately with their independent counsel
(and, as needed, other advisors) to discuss contract review and other
matters. In addition, the Trustees were also advised by the Fund's
independent fee consultant in the course of their review of the
Portfolio's and the Fund's contractual arrangements and considered a
comprehensive report prepared by the independent fee consultant in
connection with their deliberations (the "IFC Report"). •    In connection with reviewing the Agreements, the Board also
reviewed the terms of the Fund's distribution agreement,
administrative services agreement, transfer agency agreement and
other material service agreements. •        Based on its evaluation of the information provided, the Contract
Committee presented its findings and recommendations to the
Independent Trustees as a group. The Independent Trustees reviewed
the Contract Committee's findings and recommendations and
presented their recommendations to the full Board. In connection with the contract review process, the Contract Committee
and the Board considered the factors discussed below, among others. The
Board also considered that DIMA and its predecessors have managed the
Fund since its inception, and the Board believes that a long-term
relationship with a capable, conscientious advisor is in the best interests
of the Fund. The Board considered, generally, that shareholders chose to
invest or remain invested in the Fund knowing that DIMA managed the
Fund. DIMA is part of Deutsche Bank, a major global banking institution
that is engaged in a wide range of financial services. The Board believes
that there are significant advantages to being part of a global asset
management business that offers a wide range of investing expertise and
resources, including hundreds of portfolio managers and analysts with
research capabilities in many countries throughout the world. While shareholders may focus primarily on fund performance and fees,
the Board considers these and many other factors, including the quality
and integrity of DIMA's personnel and such other issues as back-office
operations, fund valuations, and compliance policies and procedures. Nature, Quality and Extent of Services. The Board considered the terms
of the Agreements, including the scope of advisory services provided
under the Agreements. The Board noted that, under the Agreements,
DIMA provides portfolio management services to the Fund and that,
pursuant to separate administrative services agreements, DIMA provides
administrative services to the Fund and the Portfolio. The Board
considered the experience and skills of senior management and
investment personnel, the resources made available to such personnel,
the ability of DIMA to attract and retain high-quality personnel, and the
organizational depth and stability of DIMA. The Board reviewed the Fund's
performance over short-term and long-term periods and compared those
returns to various agreed-upon performance measures, including market
indices and a peer universe compiled by the independent fee consultant
using information supplied by iMoneyNet ("iMoneyNet"). The Board also
noted that it has put a process into place of identifying "Focus Funds"
(e.g., funds performing poorly relative to their benchmark or a peer group
compiled by iMoneyNet), and receives more frequent reporting and
information from DIMA regarding such funds, along with DIMA's remedial
plans to address underperformance. The Board believes this process is an
effective manner of identifying and addressing underperforming funds.
Based on the information provided, the Board noted that for the one-,
three- and five-year periods ended December 31, 2007, the Fund's
performance (Institutional Class shares) was in the 1st quartile of the
applicable iMoneyNet universe (the 1st quartile being the best performers
and the 4th quartile being the worst performers). The Board also observed
that the Fund has outperformed its benchmark in each of the one-, three-
and five-year periods ended December 31, 2007. The Board recognized
that DIMA has made significant changes in its investment personnel and
processes in recent years in an effort to improve long-term performance. On the basis of this evaluation and the ongoing review of investment
results by the Board, the Board concluded that the nature, quality and
extent of services provided by DIMA historically have been and continue
to be satisfactory. Fees and Expenses. The Board considered the Portfolio's investment
management fee schedule, operating expenses, and total expense ratios,
and comparative information provided by Lipper and the independent fee
consultant regarding investment management fee rates paid to other
investment advisors by similar funds (1st quartile being the most favorable
and 4th quartile being the least favorable). With respect to management
fees paid to other investment advisors by similar funds, the Board noted
that the contractual fee rates paid by the Portfolio, which include the
0.10% fee paid to DIMA under the Fund's administrative services
agreement, were higher than the median (3rd quartile) of the applicable
Lipper peer group (based on Lipper data provided as of December 31,
2007). The Board noted that the aggregate total (net) operating expenses
(excluding 12b-1 fees) of the Fund and the Portfolio were expected to be
in 2nd quartile of the applicable Lipper expense universe (based on Lipper
data provided as of December 31, 2007). The Board considered the
Portfolio's management fee rate as compared to fees charged by DIMA
and certain of its affiliates for comparable mutual funds and considered
differences in fund and fee structures between the DWS Funds. The
Board also considered how the Fund's and the Portfolio's combined total
(net) operating expenses compared to the total (net) operating expenses
of a more customized peer group selected by Lipper (based on such
factors as asset size). The Board also noted that the expense limitation
agreed to by DIMA helped to ensure that the Fund's and the Portfolio's
combined total (net) operating expenses would be competitive relative to
the applicable Lipper universe. On the basis of the information provided, the Board concluded that
management fees were reasonable and appropriate in light of the nature,
quality and extent of services provided by DIMA. Profitability. The Board reviewed detailed information regarding revenues
received by DIMA under the Portfolio Agreement. The Board considered
the estimated costs and pre-tax profits realized by DIMA from advising
the DWS Funds, as well as estimates of the pre-tax profits attributable to
managing the Fund in particular. The Board also received information
regarding the estimated enterprise-wide profitability of the DWS
Investments organization with respect to all fund services in totality and
by fund. The Board reviewed DIMA's methodology in allocating its costs to
the management of the Fund. Based on the information provided, the
Board concluded that the pre-tax profits realized by DIMA in connection
with the management of the Fund were not unreasonable. The Board also
reviewed information regarding the profitability of certain similar
investment management firms. The Board noted that while information
regarding the profitability of such firms is limited (and in some cases is
not necessarily prepared on a comparable basis), DIMA and its affiliates'
overall profitability with respect to the DWS Investments fund complex
(after taking into account distribution and other services provided to the
funds by DIMA and its affiliates) was lower than the overall profitability
levels of many comparable firms for which such data was available. Economies of Scale. The Board considered whether there are economies
of scale with respect to the management of the Fund and whether the
Fund benefits from any economies of scale. The Board concluded that the
Fund's and the Portfolio's fee schedules represent an appropriate sharing
between the Fund and the Portfolio, as the case may be, and DIMA of
such economies of scale as may exist in the management of the Fund and
the Portfolio at current asset levels. Other Benefits to DIMA and Its Affiliates. The Board also considered the
character and amount of other incidental benefits received by DIMA and
its affiliates, including any fees received by DIMA for administrative
services provided to the Fund and any fees received by an affiliate of
DIMA for distribution services. The Board also considered benefits to
DIMA related to brokerage and soft-dollar allocations, including allocating
brokerage to pay for research generated by parties other than the
executing broker dealers, which pertain primarily to funds investing in
equity securities, along with the incidental public relations benefits to
DIMA related to DWS Funds advertising and cross-selling opportunities
among DWS Investments products and services. The Board concluded
that management fees were reasonable in light of these fallout benefits. Compliance. The Board considered the significant attention and resources
dedicated by DIMA to documenting and enhancing its compliance
processes in recent years. The Board noted in particular (i) the experience
and seniority of DIMA's chief compliance officer; (ii) the large number of
compliance personnel who report to DIMA's chief compliance officer; and
(iii) the substantial commitment of resources by DIMA and its affiliates to
compliance matters. Based on all of the information considered and the conclusions reached,
the Board (including a majority of the Independent Trustees) determined
that the continuation of the Agreements is in the best interests of the
Fund. In making this determination the Board did not give particular
weight to any single factor identified above. The Board considered these
factors over the course of numerous meetings, certain of which were in
executive session with only the Independent Trustees and their counsel
present. It is possible that individual Trustees may have weighed these
factors differently in reaching their individual decisions to approve the
continuation of the Agreements. Summary of Management Fee Evaluation
by Independent Fee Consultant October 24, 2008 Pursuant to an Order entered into by Deutsche Investment Management
Americas and affiliates (collectively, "DeAM") with the Attorney General
of New York, I, Thomas H. Mack, have been appointed the Independent
Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds).
My duties include preparing an annual written evaluation of the
management fees DeAM charges the Funds, considering among other
factors the management fees charged by other mutual fund companies
for like services, management fees DeAM charges other clients for like
services, DeAM's costs of supplying services under the management
agreements and related profit margins, possible economies of scale if a
Fund grows larger, and the nature and quality of DeAM's services,
including fund performance. This report summarizes my evaluation for
2008, including my qualifications, the evaluation process for each of the
DWS Funds, consideration of certain complex-level factors, and my
conclusions. I served in substantially the same capacity in 2007. Qualifications For more than 35 years I have served in various professional capacities
within the investment management business. I have held investment
analysis and advisory positions, including securities analyst, portfolio
strategist and director of investment policy with a large investment firm. I
have also performed business management functions, including business
development, financial management and marketing research and analysis. Since 1991, I have been an independent consultant within the asset
management industry. I have provided services to over 125 client
organizations, including investment managers, mutual fund boards,
product distributors and related organizations. Over the past ten years I
have completed a number of assignments for mutual fund boards,
specifically including assisting boards with management contract renewal. I hold a Master of Business Administration degree, with highest honors,
from Harvard University and Master of Science and Bachelor of Science
(highest honors) degrees from the University of California at Berkeley. I
am an independent director and audit committee financial expert for two
closed-end mutual funds, serve on the board of directors of a private
market research company, and have served in various leadership and
financial oversight capacities with non-profit organizations. Evaluation of Fees for each DWS Fund My work focused primarily on evaluating, fund-by-fund, the fees charged
to each of the 129 Fund portfolios in the DWS Fund family. For each Fund,
I considered each of the key factors mentioned above, as well as any
other relevant information. In doing so I worked closely with the Funds'
Independent Directors in their annual contract renewal process, as well as
in their approval of contracts for several new funds (documented
separately). In evaluating each Fund's fees, I reviewed comprehensive materials
provided by or on behalf of DeAM, including expense information
prepared by Lipper Analytical, comparative performance information,
profitability data, manager histories, and other materials. I also accessed
certain additional information from the Lipper, Strategic Insight, and
Morningstar databases and drew on my industry knowledge and
experience. To facilitate evaluating this considerable body of information, I prepared
for each Fund a document summarizing the key data elements in each
area as well as additional analytics discussed below. This made it possible
to consider each key data element in the context of the others. In the course of contract renewal, DeAM agreed to implement a number
of fee and expense adjustments requested by the Independent Directors
which will favorably impact future fees and expenses, and my evaluation
includes the effects of these changes. Fees and Expenses Compared with Other Funds The competitive fee and expense evaluation for each fund focused on two
primary comparisons: The Fund's contractual management fee (the advisory fee plus the
administration fee where applicable) compared with those of a group
of typically 12-15 funds in the same Lipper investment category
(e.g. Large Capitalization Growth) having similar distribution
arrangements and being of similar size. The Fund's total expenses compared with a broader universe of funds
from the same Lipper investment category and having similar
distribution arrangements. These two comparisons provide a view of not only the level of the fee
compared with funds of similar scale but also the total expense the Fund
bears for all the services it receives, in comparison with the investment
choices available in the Fund's investment category and distribution
channel. The principal figure-of-merit used in these comparisons was the
subject Fund's percentile ranking against peers. DeAM's Fees for Similar Services to Others DeAM provided management fee schedules for all of its US domiciled
fund and non-fund investment management accounts in any of the
investment categories where there is a DWS Fund. These similar
products included the other DWS Funds, non-fund pooled accounts,
institutional accounts and sub-advisory accounts. Using this information,
I calculated for each Fund the fee that would be charged to each similar
product, at the subject Fund's asset level. Evaluating information regarding non-fund products is difficult because
there are varying levels of services required for different types of
accounts, with mutual funds generally requiring considerably more
regulatory and administrative types of service as well as having more
frequent cash flows than other types of accounts. Also, while mutual fund
fees for similar fund products can be expected to be similar, there will be
some differences due to different pricing conditions in different
distribution channels (e.g. retail funds versus those used in variable
insurance products), differences in underlying investment processes and
other factors. Costs and Profit Margins DeAM provided a detailed profitability analysis for each Fund. After
making some adjustments so that the presentation would be more
comparable to the available industry figures, I reviewed profit margins
from investment management alone, from investment management plus
other fund services (excluding distribution) provided to the Funds by
DeAM (principally shareholder services), and DeAM profits from all
sources, including distribution. A later section comments on overall
profitability. Economies of Scale Economies of scale  an expected decline in management cost per
dollar of fund assets as fund assets grow  are very rarely quantified and
documented because of inherent difficulties in collecting and analyzing
relevant data. However, in virtually every investment category that I
reviewed, larger funds tend to have lower fees and lower total expenses
than smaller funds. To see how each DWS Fund compares with this
industry observation, I reviewed: The trend in Fund assets over the last five years and the accompanying
trend in total expenses. This shows if the Fund has grown and, if so,
whether total expense (management fees as well as other expenses)
have declined as a percent of assets. Whether the Fund has break-points in its management fee schedule,
the extent of the fee reduction built into the schedule and the asset
levels where the breaks take effect, and in the case of a sub-advised
Fund how the Fund's break-points compare with those of the
sub-advisory fee schedule. How the Fund's contractual fee schedule compares with trends in the
industry data. To accomplish this, I constructed a chart showing how
actual latest-fiscal-year contractual fees of the Fund and of other similar
funds relate to average fund assets, with the subject Fund's contractual
fee schedule superimposed. Quality of Service  Performance The quality-of-service evaluation focused on investment performance,
which is the principal result of the investment management service. Each
Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as
applicable, and compared with that of other funds in the same investment
category and with a suitable market index. In addition, I calculated and reviewed risk-adjusted returns relative to an
index of similar mutual funds' returns and a suitable market index. The
risk-adjusted returns analysis provides a way of determining the extent to
which the Fund's return comparisons are mainly the product of investment
value-added (or lack thereof) or alternatively taking considerably more or
less risk than is typical in its investment category. I also received and considered the history of portfolio manager changes
for each Fund, as this provided an important context for evaluating the
performance results. Complex-Level Considerations While this evaluation was conducted mainly at the individual fund level,
there are some issues relating to the reasonableness of fees that can
alternatively be considered across the whole fund complex: I reviewed DeAM's profitability analysis for all DWS Funds, with a view
toward determining if the allocation procedures used were reasonable
and how profit levels compared with public data for other investment
managers. I considered whether DeAM and affiliates receive any significant
ancillary or "fall-out" benefits that should be considered in interpreting
the direct profitability results. These would be situations where serving
as the investment manager of the Funds is beneficial to another part of
the Deutsche Bank organization. I considered how aggregated DWS Fund expenses had varied over the
years, by asset class and in the context of trends in asset levels. I reviewed the structure of the DeAM organization, trends in staffing
levels, and information on compensation of investment management
and other professionals compared with industry data. Findings Based on the process and analysis discussed above, which included
reviewing a wide range of information from management and external
data sources and considering among other factors the fees DeAM
charges other clients, the fees charged by other fund managers, DeAM's
costs and profits associated with managing the Funds, economies of
scale, possible fall-out benefits, and the nature and quality of services
provided, in my opinion the management fees charged the DWS Funds
are reasonable. crinst_sigmack1Thomas H. Mack Summary of Administrative Fee Evaluation
by Independent Fee Consultant September 29, 2008 Pursuant to an Order entered into by Deutsche Asset Management
(DeAM) with the Attorney General of New York, I, Thomas H. Mack, have
been appointed the Independent Fee Consultant for the DWS Funds and
have as part of my duties evaluated the reasonableness of the proposed
management fees to be charged by DeAM to the DWS Funds, taking onto
account a proposal to pass through to the funds certain fund
accounting-related charges in connection with new regulatory
requirements. My evaluation considered the following: •    While the proposal would alter the services to be provided under the
Administration Agreement, which I consider to be part of fund
management under the Order, it is my opinion that the change in
services is slight and that the scope of prospective services under the
combination of the Advisory and Administration Agreements continues
to be comparable with those typically provided to competitive funds
under their management agreements. •    While the proposal would increase fund expenses, according to a pro
forma analysis performed by management, the prospective effect is
less than .01% for all but seven of the DeAM Funds' 438 active share
classes, and in all cases the effect is less than .03% and overall
expenses would remain reasonable in my opinion. Based on the foregoing considerations, in my opinion the fees and
expenses for all of the DWS Funds will remain reasonable if the Directors
adopt this proposal. crinst_sigmack0Thomas H. Mack Account Management Resources Automated
Information Line
Institutional Investor Services (800) 730-1313
Personalized account information, information on other DeAM funds
and services via touchtone telephone and the ability to exchange or
redeem shares.Web Site
moneyfunds.deam-us.db.com
View your account transactions and balances, trade shares, monitor
your asset allocation, and change your address, 24 hours a day.Obtain prospectuses and applications, blank forms, interactive
worksheets, news about the funds, subscription to fund updates by
e-mail, retirement planning information, and more.For More
Information
(800) 730-1313, option 1
To speak with a fund service representative.Written
Correspondence
Deutsche Asset Management
PO Box 219210
Kansas City, MO
64121-9210Proxy Voting
The fund's policies and procedures for voting proxies for portfolio
securities and information about how the fund voted proxies related
to its portfolio securities during the 12-month period endedJune 30are available on our Web site  www.dws-investments.com (click
on "proxy voting"at the bottom of the page)  or on the SEC's
Web site  www.sec.gov. To obtain a written copy of the fund's
policies and procedures without charge, upon request, call us toll
free at 800) 621-1048.Principal
Underwriter
If you have questions, comments or complaints, contact:DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808(800) 621-1148Nasdaq Symbol
BIRXXCUSIP Number
23339C 826Fund Number
500 Notes Notes Notes Notes Notes Notes Notes crinst_backcover0


ITEM 2.
        CODE OF ETHICSAs of the end of the period, December 31, 2008,Cash Reserve Fund Institutionalhas 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 (as such term has been defined by the Regulations) serving on the Funds audit committee including Mr. William McClayton, the chair of the Funds audit committee.  The SEC has stated that an audit committee financial expert is not an expert for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and 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
  CASH RESERVE FUND INSTITUTIONAL 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 YearEndedDecember 31,
        Audit Fees Billed to Fund
        Audit-RelatedFees Billed to Fund
        Tax Fees Billed to Fund
        AllOther Fees Billed to Fund2008
        $18,500
        $0
        $0
        $02007
        $18,500
        $0
        $0
        $0
   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 YearDecember 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 Providers2008
        $0
        $19,000
        $02007
        $58,500
        $25,000
        $0
  The Audit-Related Fees were billed for services in connection with the agreed-upon procedures related to fund mergers 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 YearEndedDecember 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)2008
        $0
        $19,000
        $0
        $19,0002007
        $0
        $25,000
        $600,000
        $625,000
   All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.  ***  PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules.  In the first instance, an employee of PwC had power of attorney over an account which included DWS funds.  The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG.  In the second instance, an employee of PwC served as a nominee shareholder (effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG.  The trustee relationship has ceased.  PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X.  PwC
advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund.  In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.   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 HOLDERS
    The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Chairman of the Board, P.O. 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal controls over financial reporting.ITEM 12.
        EXHIBITS(a)(1)     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:
        Cash Reserves Fund Institutional, a series of DWS Institutional Funds
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        March 2, 2009
   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:
        Cash Reserves Fund Institutional, a series of DWS Institutional Funds
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        March 2, 2009
   By:
        /s/Paul Schubert
 Paul Schubert
 Chief Financial Officer and Treasurer  Date:                                        March 2, 2009