UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549  FORM N-CSR  Investment Company Act file number
        811-43
  DWS Investment Trust (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:
        09/30
  Date of reporting period:
        09/30/08
   ITEM 1.REPORT TO STOCKHOLDERS   
 SEPTEMBER 30, 2008
Annual Report
to ShareholdersDWS Capital Growth Fundcgf_cover10 Contents 5Performance Summary
11Information About Your Fund's Expenses
13Portfolio Management Review
19Portfolio Summary
21Investment Portfolio
26Financial Statements
30Financial Highlights
36Notes to Financial Statements
45Report of Independent Registered Public Accounting Firm
46Tax Information
47Investment Management Agreement Approval
52Summary of Management Fee Evaluation by Independent
Fee Consultant
57Trustees and Officers
62Account Management Resources This report must be preceded or accompanied by a prospectus. To obtain a
prospectus for any of our funds, refer to the Account Management Resources
information provided in the back of this booklet. We advise you to consider the
fund's objectives, risks, charges and expenses carefully before investing. The
prospectus contains this and other important information about the fund. Please
read the prospectus carefully before you invest. Investments in mutual funds involve risk. Some funds have more risk than others. The
fund is subject to stock market risk, meaning stocks in the fund may decline in value for
extended periods of time due to the activities and financial prospects of individual
companies, or due to general market and economic conditions. Please read this fund's
prospectus for specific details regarding its investments and 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 Performance SummarySeptember 30, 2008 Classes A, B, C, R and Institutional Class All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment
return and principal value fluctuate with changing market conditions so that,
when redeemed, shares may be worth more or less than their original cost.
Current performance may be lower or higher than the performance quoted.
Please visit www.dws-investments.com for the Fund's most recent month-end
performance. The maximum sales charge for Class A shares is 5.75%. For Class B shares, the
maximum contingent deferred sales charge (CDSC) is 4% within the first year
after purchase, declining to 0% after six years. Class C shares have no front-end
sales charge but redemptions within one year of purchase may be subject to a
CDSC of 1%. Unadjusted returns do not reflect sales charges and would have
been lower if they had. Class R and Institutional Class shares are not subject to
sales charges. The total annual fund operating expense ratios, gross of any fee waivers or
expense reimbursements, as stated in the fee table of the prospectus dated
February 1, 2008 are 1.08%, 2.00%, 1.93%, 1.35% and 0.74% for Class A, Class B,
Class C, Class R and Institutional Class shares, respectively. Please see the
Information About Your Fund's Expenses, the Financial Highlights and Notes to
the Financial Statements (Note C, Related Parties) sections of this report for
gross and net expense related disclosure for the period ended September 30,
2008. To discourage short-term trading, the Fund imposes a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which has the effect of
lowering total return. Returns and rankings during all periods shown for Class A, Class B and Institutional
Class shares and for the 5-year and 10-year periods shown for Class C shares and for
the 3-year, 5-year and 10-year periods shown for Class R shares reflect a fee waiver
and/or expense reimbursement. Without this waiver/reimbursement, returns and
rankings would have been lower. Performance figures do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. Returns and rankings may differ
by share class. Returns shown for Class A, B and C shares prior to their inception on June 25, 2001
and for Class R shares prior to its inception on November 3, 2003 are derived from the
historical performance of the Fund's original share class (Class AARP) of DWS Capital
Growth Fund during such periods and have been adjusted to reflect the higher total
annual operating expenses of each specific class. Any difference in expenses will affect
performance. Class AARP shares converted into Class S shares on July 14, 2006. Average Annual Total Returns(Unadjusted for Sales Charge) as of 9/30/08DWS Capital Growth Fund
1-Year
3-Year
5-Year
10-YearClass A
-14.92%
1.68%
5.41%
2.47%Class B
-15.09%
1.29%
4.81%
1.77%Class C
-15.61%
.84%
4.55%
1.66%Class R
-15.22%
1.35%
5.10%
2.14%Russell 1000® Growth Index+
-20.88%
.04%
3.74%
.59%S&P 500® Index++
-21.98%
.22%
5.17%
3.06% Sources: Lipper Inc. and Deutsche Investment Management Americas Inc. Average Annual Total Returnsas of 9/30/08DWS Capital Growth Fund
1-Year
3-Year
5-Year
Life of
Class*Institutional Class
-14.63%
2.03%
5.82%
5.49%Russell 1000 Growth Index+
-20.88%
.04%
3.74%
5.13%S&P 500 Index++
-21.98%
.22%
5.17%
6.01% Sources: Lipper Inc. and Deutsche Investment Management Americas Inc. * Institutional Class shares commenced operations on August 19, 2002. Index returns
began on August 31, 2002.  Net Asset Value and Distribution InformationClass A
Class B
Class C
Class R
Institutional
ClassNet Asset Value:
9/30/08
$     48.01
$     46.03
$     45.52
$     47.85
$     48.409/30/07
$     56.59
$     54.27
$     53.94
$     56.44
$     57.05Distribution Information:
Twelve Months
as of 9/30/08:Income Dividends
$     .16
$     .06
$     
$     .002
$     .35 Class A Lipper Rankings  Large-Cap Growth Funds Categoryas of 9/30/08Period
Rank

Number of
Funds Tracked
Percentile
Ranking (%)1-Year
20
of
769
33-Year
73
of
652
125-Year
67
of
538
13 Source: Lipper Inc. Rankings are historical and do not guarantee future results.
Rankings are based on total return unadjusted for sales charges with distributions
reinvested. If sales charges had been included, rankings might have been less
favorable. Rankings are for Class A shares; other share classes may vary. Growth of an Assumed $10,000 Investment(Adjusted for Maximum Sales Charge)[]DWS Capital Growth Fund  Class A
[]Russell 1000 Growth Index+
[]S&P 500 Index++cgf_g10ka0Yearly periods ended September 30 The Fund's growth of an assumed $10,000 investment is adjusted for the maximum
sales charge of 5.75%. This results in a net initial investment of $9,425. Comparative Results(Adjusted for Maximum Sales Charge) as of 9/30/08DWS Capital Growth Fund
1-Year
3-Year
5-Year
10-YearClass A
Growth of $10,000
$8,019
$9,907
$12,265
$12,029Average annual total return
-19.81%
-.31%
4.17%
1.86%Class B
Growth of $10,000
$8,237
$10,191
$12,549
$11,924Average annual total return
-17.63%
.63%
4.65%
1.77%Class C
Growth of $10,000
$8,439
$10,255
$12,492
$11,789Average annual total return
-15.61%
.84%
4.55%
1.66%Class R
Growth of $10,000
$8,478
$10,409
$12,821
$12,354Average annual total return
-15.22%
1.35%
5.10%
2.14%Russell 1000
Growth Index+
Growth of $10,000
$7,912
$10,013
$12,014
$10,607Average annual total return
-20.88%
.04%
3.74%
.59%S&P 500 Index++
Growth of $10,000
$7,802
$10,065
$12,866
$13,520Average annual total return
-21.98%
.22%
5.17%
3.06% The growth of $10,000 is cumulative. +  The Russell 1000 Growth Index is an unmanaged index that consists of those stocks in
the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth
values.  + + The Standard & Poor's 500 (S&P 500) Index is an unmanaged, capitalization-weighted
index of 500 stocks. The index is designed to measure performance of the broad
domestic economy through changes in the aggregate market value of 500 stocks
representing all major industries.  Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect
any fees or expenses. It is not possible to invest directly into an index.  Growth of an Assumed $1,000,000 Investment[]DWS Capital Growth Fund  Institutional Class
[]Russell 1000 Growth Index+
[]S&P 500 Index++cgf_g10k90Yearly periods ended September 30 Comparative Resultsas of 9/30/08DWS Capital Growth Fund
1-Year
3-Year
5-Year
Life of
Class*Institutional
Class
Growth of $1,000,000
$853,700
$1,062,100
$1,326,900
$1,386,700Average annual total return
-14.63%
2.03%
5.82%
5.49%Russell 1000
GrowthIndex+
Growth of $1,000,000
$791,200
$1,001,300
$1,201,400
$1,355,800Average annual total return
-20.88%
.04%
3.74%
5.13%S&P 500
Index++
Growth of $1,000,000
$780,200
$1,006,500
$1,286,600
$1,426,500Average annual total return
-21.98%
.22%
5.17%
6.01% The growth of $1,000,000 is cumulative. The minimum initial investment for the Institutional Class shares is $1,000,000. * Institutional Class shares commenced operations on August 19, 2002. Index returns
began on August 31, 2002.  +  The Russell 1000 Growth Index is an unmanaged index that consists of those stocks in
the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth
values.  + + The Standard & Poor's 500 (S&P 500) Index is an unmanaged, capitalization-weighted
index of 500 stocks. The index is designed to measure performance of the broad
domestic economy through changes in the aggregate market value of 500 stocks
representing all major industries.  Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect
any fees or expenses. It is not possible to invest directly into an index.  Class S Class S shares are generally not available to new investors except under certain
circumstances. (Please refer to the Fund's Statement of Additional Information.) All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment
return and principal value fluctuate with changing market conditions so that,
when redeemed, shares may be worth more or less than their original cost.
Current performance may be lower or higher than the performance quoted.
Please visit www.dws-investments.com for the Fund's most recent month-end
performance. The total annual fund operating expense ratio, gross of any fee waivers or
expense reimbursements, as stated in the fee table of the prospectus dated
February 1, 2008 is 0.82% for Class S shares. Please see the Information About
Your Fund's Expenses, the Financial Highlights and Notes to the Financial
Statements (Note C, Related Parties) sections of this report for gross and net
expense related disclosure for the period ended September 30, 2008. To discourage short-term trading, the Fund imposes a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which has the effect of
lowering total return. Returns and rankings for the 3-year, 5-year and 10-year periods shown reflect a fee
waiver and/or expense reimbursement. Without this waiver/reimbursement, returns
and rankings would have been lower. Performance figures do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. Returns and rankings may differ
by share class. Returns shown for Class S shares prior to its inception on July 17, 2000 are derived
from the historical performance of the Fund's original share class (Class AARP) of DWS
Capital Growth Fund during such period and have assumed the same expense structure
during such period. Any difference in expenses will affect performance. Class AARP
shares converted into Class S shares on July 14, 2006. Average Annual Total Returnsas of 9/30/08DWS Capital Growth Fund
1-Year
3-Year
5-Year
10-YearClass S
-14.68%
1.92%
5.66%
2.73%Russell 1000 Growth Index+
-20.88%
.04%
3.74%
.59%S&P 500 Index++
-21.98%
.22%
5.17%
3.06% Sources: Lipper Inc. and Deutsche Investment Management Americas Inc. Net Asset Value and Distribution InformationClass SNet Asset Value:
9/30/08
$     48.419/30/07
$     57.06Distribution Information:
Twelve Months as of 9/30/08:Income Dividends
$     .32 Class S Lipper Rankings  Large-Cap Growth Funds Categoryas of 9/30/08Period
Rank

Number of
Funds Tracked
Percentile
Ranking (%)1-Year
15
of
769
23-Year
60
of
652
105-Year
55
of
538
11 Source: Lipper Inc. Rankings are historical and do not guarantee future results.
Rankings are based on total return with distributions reinvested. Rankings are for
Class S shares; other share classes may vary. Growth of an Assumed $10,000 Investment[]DWS Capital Growth Fund  Class S
[]Russell 1000 Growth Index+
[]S&P 500 Index++cgf_g10k80Yearly periods ended September 30 Comparative Resultsas of 9/30/08DWS Capital Growth Fund
1-Year
3-Year
5-Year
10-YearClass S
Growth of $10,000
$8,532
$10,588
$13,171
$13,094Average annual total return
-14.68%
1.92%
5.66%
2.73%Russell 1000 Growth
Index+
Growth of $10,000
$7,912
$10,013
$12,014
$10,607Average annual total return
-20.88%
.04%
3.74%
.59%S&P 500 Index++
Growth of $10,000
$7,802
$10,065
$12,866
$13,520Average annual total return
-21.98%
.22%
5.17%
3.06% The growth of $10,000 is cumulative. +  The Russell 1000 Growth Index is an unmanaged index that consists of those stocks in
the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth
values.  + + The Standard & Poor's 500 (S&P 500) Index is an unmanaged, capitalization-weighted
index of 500 stocks. The index is designed to measure performance of the broad
domestic economy through changes in the aggregate market value of 500 stocks
representing all major industries.  Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect
any fees or expenses. It is not possible to invest directly into an index.  Information About Your Fund's Expenses As an investor of the Fund, you incur two types of costs: ongoing
expenses and transaction costs. Ongoing expenses include management
fees, distribution and service (12b-1) fees and other Fund expenses.
Examples of transaction costs include sales charges (loads), redemption
fees and account maintenance fees, which are not shown in this section.
The following tables are intended to help you understand your ongoing
expenses (in dollars) of investing in the Fund and to help you compare
these expenses with the ongoing expenses of investing in other mutual
funds. In the most recent six-month period, Class A, B and Institutional
Class shares limited these expenses; had they 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(April 1, 2008 to September 30, 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. An account maintenance
fee of $6.25 per quarter for Class S shares may apply for certain accounts
whose balances do not meet the applicable minimum initial investment.
This fee is not included in these tables. If it was, the estimate of
expenses paid for Class S shares during the period would be higher, and
account value during the period would be lower, by this amount. Expenses and Value of a $1,000 Investmentfor the six months ended September 30, 2008Actual Fund
Return
Class A
Class B
Class C
Class R
Class S
Institutional
ClassBeginning Account
Value 4/1/08
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00Ending Account
Value 9/30/08
$       911.40
$       910.80
$       907.90
$       910.00
$       912.70
$       912.90Expenses Paid per
$1,000*
$       5.07
$       5.73
$       8.87
$       6.73
$       3.68
$       3.49Hypothetical 5%
Fund Return
Class A
Class B
Class C
Class R
Class S
Institutional
ClassBeginning Account
Value 4/1/08
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00Ending Account
Value 9/30/08
$       1,019.70
$       1,019.00
$       1,015.70
$       1,017.95
$       1,021.15
$       1,021.35Expenses Paid per
$1,000*
$       5.35
$       6.06
$       9.37
$       7.11
$       3.89
$       3.69 * Expenses are equal to the Fund's annualized expense ratio for each share class,
multiplied by the average account value over the period, multiplied by the number of
days in the most recent six-month period, then divided by 366.  Annualized
Expense Ratios
Class A
Class B
Class C
Class R
Class S
Institutional
ClassDWS Capital
Growth Fund
1.06%
1.20%
1.86%
1.41%
.77%
.73% For more information, please refer to the Fund's prospectus. Portfolio Management Review DWS Capital Growth Fund: A Team Approach to Investing Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), which is part of Deutsche Asset Management, is the
investment advisor for DWS Capital Growth Fund. DIMA and its
predecessors have more than 80 years of experience managing mutual
funds and DIMA provides a full range of investment advisory services to
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. Portfolio Management Team Julie M. Van Cleave, CFA Managing Director of Deutsche Asset Management and Portfolio Manager of the fund. •        Joined Deutsche Asset Management and the fund in 2002. •        Head of Large Cap Growth Portfolio Selection Team. •        Previous experience includes 19 years of investment industry experience at Mason
Street Advisors, most recently serving as Managing Director and team leader for the
large cap investment team. •        BBA, MBA, University of Wisconsin  Madison. Jack A. Zehner Director of Deutsche Asset Management and Portfolio Manager of the fund. •        Joined Deutsche Asset Management and the fund in 2002. •        Previous experience includes nine years of investment industry experience at Mason
Street Advisors where he served most recently as Director  Common Stock. •        BBA, University of Wisconsin  Whitewater; MBA, Marquette University. Richard Shepley Managing Director of Deutsche Asset Management and Portfolio Manager of the fund. •        Joined Deutsche Asset Management in 1998 and the fund in 2007. •        Previous experience includes eight years of investment industry experience as research
analyst for global beverage and media sectors at Newton Investment Management and
assistant manager in corporate tax and corporate insolvency department at Price
Waterhouse, London. •        MA, Oxford University. In the following interview, the portfolio management team discusses
DWS Capital Growth Fund's performance, strategy and the market
environment during the 12-month period ended September 30, 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: How would you describe the economic and market
environment over the last 12 months? A:This was a period of considerable economic uncertainty and
significant turmoil throughout the capital markets. By early 2008,
what began as a correction in the subprime housing market had
accelerated into the worst financial crisis in decades, with profound
implications for the entire US economy and related effects on
global markets and economies. Financial markets became quite
risk-averse, as demonstrated by wider credit spreads, severe
dislocation in short-term credit markets and a highly volatile equity
market.1 These problems reached crisis proportions in September,
as troubled financial firms failed or were forced into mergers with
stronger entities. 1 Credit spread  the additional yield provided by non-Treasury fixed income securities
versus Treasury securities of comparable duration.  2 The Russell 3000 Index is an unmanaged index that measures the performance of the
3,000 largest US companies based on total market capitalization, which represents
approximately 98% of the investable US equity market.  Index returns assume reinvestment of dividends and, unlike fund returns, do not reflect
any fees or expenses. It is not possible to invest directly into an index.  In this very difficult economic environment, most US equity indices
posted negative returns. The Russell 3000® Index, which is
generally regarded as a good indicator of the broad stock market,
returned -21.52% for the period.2 Within the large-cap arena, which
is the major focus of this fund, growth stocks performed better
than value stocks over the last year: the Russell 1000® Growth
Index had a return of -20.88%, while the Russell 1000® Value
Index returned -23.56%.3 Of the 10 sectors in the Russell 1000
Growth Index, the main benchmark for this fund, only consumer
staples had a positive return; three sectors  telecommunication
services, utilities and financials  were down more than 30%. 3 The Russell 1000 Growth Index is an unmanaged index that measures the performance
of those Russell 1000 companies with higher price-to-book ratios and higher forecasted
growth values. The Russell 1000 Value Index is an unmanaged index that measures the
performance of those Russell 1000 companies with lower price-to-book ratios and lower
forecasted growth values.  Q: How did the fund perform during this period? A:DWS Capital Growth Fund Class A shares produced a total
return of -14.92% for the 12 months ended September 30, 2008.
(Returns are unadjusted for sales charges. If sales charges had
been included, returns would have been lower. Past performance is
no guarantee of future results. Please see pages 5 through 10 for
the performance of other share classes and more complete
performance information.) While it is always disappointing to report
negative returns to shareholders, we are pleased that the fund`s
return was several percentage points better than returns of its
benchmarks and its peer group in this challenging market
environment. The Russell 1000 Growth Index returned -20.88%
and the Standard & Poor's 500® (S&P 500) Index returned -21.98%
for the 12-month period.4 The average return of the fund's peer
group of Lipper Large-Cap Growth Funds was -22.94%.5 4 The Standard & Poor's (S&P) 500 Index is an unmanaged, capitalization-weighted index
of 500 stocks. The index is designed to measure performance of the broad domestic
economy through changes in the aggregate market value of 500 stocks representing all
major industries.  Index returns assume reinvestment of dividends and, unlike fund returns, do not reflect
any fees or expenses. It is not possible to invest directly into an index.  5 The Lipper Large-Cap Growth Funds category is an unmanaged group of mutual funds
that Invest primarily in large-cap stocks with a greater-than-average growth orientation
compared with the overall market. Category returns assume reinvestment of dividends.
It is not possible to invest directly into a Lipper category.  Q: How would you describe your investment process? A:Our investment discipline starts with a thorough analysis of
economic trends. This analysis helps us to determine which
industries are likely to be the strongest drivers of growth. That
process is combined with in-depth company research to narrow the
field of investment candidates. We work closely with a team of
research analysts to identify companies that we believe offer the
best potential for delivering strong and sustainable earnings
growth. Stocks are chosen based on a thorough evaluation of each
company's management and strategy. We manage the fund with a broad representation of companies,
industries and sectors, focusing on high-quality companies with
consistent earnings growth. This strategy, along with the use of
analytical tools to monitor the fund's risk profile, produces a
diversified large-cap growth portfolio that is designed to have lower
volatility than its benchmarks. Q: How have you positioned the fund relative to its benchmarks? A:The fund's portfolio of holdings is well diversified, with broad
representation among industry groups. For several years, we have
maintained a significantly higher weight than the Russell 1000
Growth Index in energy. Over the last year, the portfolio has also
been overweight in health care and underweight in information
technology, financials and industrials.6 Positions in other sectors
have been fairly close to the benchmark. 6 "Overweight" means the fund holds a higher weighting in a given sector or security
than the benchmark. "Underweight" means the fund holds a lower weighting.  Q: Which of your investment choices were most positive for
performance? A:Both sector allocation and stock selection contributed to the
fund's outperformance relative to its benchmarks over the last year.
In fact, with the combination of industry allocation and stock
selection, we were able to add value in every sector except
consumer staples. The fund's performance was strongest in the health care sector. In
this sector, the fund's emphasis is on product-specific companies in
the areas of biotechnology and medical devices. Positions that
contributed to performance include Baxter International, Inc.,
Johnson & Johnson, Gilead Sciences, Inc. and Genentech, Inc.,
which moved up on news that Roche Holding Ltd. has made an
offer to buy the company; negotiations are still in progress on this
potential deal. The fund's long-standing overweight in energy also contributed to
performance, particularly the exposure to North American natural
gas companies such as EOG Resources, Inc. and Devon Energy
Corp. Over the last few months the benchmark's weight in energy
has increased, while the fund's representation in this sector has
remained fairly steady, so that the degree of overweight has
decreased somewhat. In managing the fund, we seek growth in sectors that are not
widely regarded as having strong growth. McDonald's Corp. is an
example of such a stock that contributed to performance over this
period. The company has demonstrated a revitalized spirit of
innovation, with new menu items and store layouts, producing
impressive revenue and earnings growth. Also positive was the fund's positioning in the financials sector;
prices of many stocks in this sector have dropped dramatically
because of problems in the mortgage market and tight credit
conditions. In this sector, the fund has been underweight; we have
generally avoided the stocks most affected by these issues,
focusing instead on companies that derive most of their income
from fees, such as Aflac, Inc. and State Street Corp., both of which
contributed to relative performance. Also positive was Visa, Inc.,
which is actually classified in information technology but derives its
income from fees for credit card processing services. Q: What decisions detracted from the fund's performance? A:As mentioned above, the only sector in which we were not able
to add value over this period was consumer staples, in which
several of the fund's holdings in this sector performed poorly.
Walgreen Co. was down, as investors feared aggressive
competition from other drug store chains, as well as slowing
consumer spending. Diageo PLC, an international leader in branded
alcoholic beverages, was an overweight stock that detracted from
relative performance. Dean Foods Co. has been hurt by huge
volatility in milk prices; we continue to like this stock, which is
consistent with our emphasis on food companies with "healthier
for you" products. Another negative was an overweight in Freeport-McMoRan Copper
& Gold, Inc., which dropped on investor fears of slowing worldwide
economies Q: What other comments do you have for shareholders? A:Although it is always disappointing to report negative returns,
we believe that the fund's strong performance relative to its peers
and benchmarks during this difficult time in the market provides
solid evidence of the validity of our investment philosophy. Sector
allocation is often a powerful source of return, especially during
economic inflection points, when markets tend to be highly volatile.
Also positive was our emphasis on quality companies with strong
finances and the potential to deliver consistent growth in a wide
variety of economic environments; this approach has worked well
in past periods of market volatility, and we believe it will continue to
do so. We continue to look for opportunities to invest in high-quality
companies that have weakened along with the market and are
selling at prices that we believe will deliver long-term value. In closing, we would like to thank our investors for continued
interest in the fund. We believe that a well-diversified portfolio of
large-growth companies is an excellent equity vehicle for many
investors. Portfolio Summary Asset Allocation(As a % of Investment Portfolio excluding
Securities Lending Collateral)
9/30/08
9/30/07Common Stocks
96%
98%Cash Equivalents
4%
2%100%
100% Sector Diversification(As a % of Common Stocks)
9/30/08
9/30/07Information Technology
22%
23%Health Care
21%
17%Consumer Staples
13%
12%Energy
13%
14%Consumer Discretionary
10%
12%Industrials
10%
11%Materials
7%
3%Financials
3%
7%Telecommunication Services
1%
1%100%
100% Asset allocation and sector diversification are subject to change. Ten Largest Equity Holdings at September 30, 2008(24.1% of Net Assets)1.      Johnson & Johnson
Provider of health care products
3.2%2.      PepsiCo, Inc.
Provider of soft drinks, snack foods and food services
3.2%3.      Schlumberger Ltd.
Provider of technology services to the petroleum industry
2.5%4.      Gilead Sciences, Inc.
Developer of nucleotide pharmaceuticals
2.5%5.      Baxter International, Inc.
Manufacturer and distributor of hospital and laboratory products
and services
2.4%6.      Abbott Laboratories
Developer of health care products
2.1%7.      McDonald's Corp.
Operator of fast food restaurants
2.1%8.      Apple, Inc.
Manufacturer of personal computers and related personal computing and
communication solutions
2.1%9.      International Business Machines Corp.
Manufacturer of computers and provider of information processing services
2.0%10.     Microsoft Corp.
Developer of computer software
2.0% Portfolio holdings are subject to change. For more complete details about the Fund's investment portfolio, see page 21. A quarterly
Fact Sheet is available upon request. A complete list of the fund's portfolio holdings is
posted as of the month end on www.dws-investments.com on or about the 15th day of the
following month. More frequent posting of portfolio holdings information may be made from
time to time on www.dws-investments.com. In addition, the Fund's top ten holdings and
other information about the Fund is posted on www.dws-investments.com as of the
calendar quarter-end on or after the 15th day following quarter-end. Please see the Account
Management Resources section for contact information. Following the Fund's fiscal first and third quarter-end, a complete portfolio
holdings listing is filed with the SEC on Form N-Q. The form will be
available on the SEC's Web site at www.sec.gov, and it also may be
reviewed and copied at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the SEC's Public Reference Room
may be obtained by calling (800) SEC-0330. Investment Portfolioas of September 30, 2008 Shares
Value ($)Common Stocks 96.4%Consumer Discretionary 9.5%Automobiles 0.6%Harley-Davidson, Inc. (a)
283,200
10,563,360Hotels Restaurants & Leisure 2.6%Darden Restaurants, Inc.
283,200
8,108,016McDonald's Corp.
593,900
36,643,63044,751,646Media 1.0%Omnicom Group, Inc. (a)
214,700
8,278,832Walt Disney Co. (a)
296,100
9,087,30917,366,141Multiline Retail 2.3%Kohl's Corp.* (a)
479,500
22,095,360Target Corp.
358,300
17,574,61539,669,975Specialty Retail 2.5%GameStop Corp. "A"* (a)
347,600
11,891,396Staples, Inc.
930,750
20,941,875Tiffany & Co. (a)
304,000
10,798,08043,631,351Textiles, Apparel & Luxury Goods 0.5%NIKE, Inc. "B" (a)
146,100
9,774,090Consumer Staples 12.6%Beverages 4.2%Diageo PLC
1,020,167
17,139,507PepsiCo., Inc.
785,600
55,989,71273,129,219Food & Staples Retailing 3.4%Shoppers Drug Mart Corp.
217,500
10,494,362Wal-Mart Stores, Inc.
569,800
34,125,322Walgreen Co.
484,600
15,003,21659,622,900Food Products 3.1%Dean Foods Co.*
747,200
17,454,592Groupe DANONE
226,967
15,976,211Kellogg Co.
364,500
20,448,45053,879,253Household Products 1.9%Colgate-Palmolive Co.
310,700
23,411,245Procter & Gamble Co.
154,800
10,788,01234,199,257Energy 12.6%Energy Equipment & Services 6.7%Baker Hughes, Inc.
445,300
26,958,462Halliburton Co.
519,500
16,826,605Noble Corp.
343,100
15,062,090Schlumberger Ltd.
562,400
43,917,816Transocean, Inc.* (a)
127,716
14,028,325116,793,298Oil, Gas & Consumable Fuels 5.9%ConocoPhillips
235,750
17,268,688Devon Energy Corp.
373,000
34,017,600EOG Resources, Inc.
266,900
23,876,874XTO Energy, Inc.
615,775
28,645,853103,809,015Financials 3.2%Capital Markets 0.9%State Street Corp.
264,200
15,027,696Diversified Financial Services 0.9%CME Group, Inc. (a)
43,788
16,267,680Insurance 1.4%Aflac, Inc.
408,730
24,012,887Health Care 20.0%Biotechnology 4.9%Celgene Corp.* (a)
328,300
20,774,824Genentech, Inc.*
245,200
21,744,336Gilead Sciences, Inc.*
960,200
43,765,91686,285,076Health Care Equipment & Supplies 6.6%Baxter International, Inc.
645,200
42,344,476C.R. Bard, Inc. (a)
217,500
20,634,225Hologic, Inc.* (a)
404,200
7,813,186Medtronic, Inc.
506,800
25,390,680Zimmer Holdings, Inc.*
305,330
19,712,105115,894,672Health Care Providers & Services 1.4%Laboratory Corp. of America Holdings*
235,600
16,374,200UnitedHealth Group, Inc.
309,900
7,868,36124,242,561Life Sciences Tools & Services 1.2%Thermo Fisher Scientific, Inc.*
369,400
20,317,000Pharmaceuticals 5.9%Abbott Laboratories
648,900
37,363,662Eli Lilly & Co.
206,600
9,096,598Johnson & Johnson
817,506
56,636,816103,097,076Industrials 9.4%Aerospace & Defense 3.9%Goodrich Corp.
465,500
19,364,800Honeywell International, Inc.
548,000
22,769,400United Technologies Corp.
449,500
26,996,97069,131,170Electrical Equipment 1.6%Emerson Electric Co.
674,400
27,508,776Machinery 1.5%Caterpillar, Inc.
148,000
8,820,800Parker Hannifin Corp.
333,400
17,670,20026,491,000Road & Rail 2.4%Canadian National Railway Co. (a)
557,800
26,679,574Norfolk Southern Corp.
224,100
14,837,66141,517,235Information Technology 21.6%Communications Equipment 3.2%Cisco Systems, Inc.*
1,256,350
28,343,256QUALCOMM, Inc.
616,500
26,491,005Research In Motion Ltd.*
15,700
1,072,31055,906,571Computers & Peripherals 6.6%Apple, Inc.*
317,500
36,087,050EMC Corp.*
857,500
10,255,700Hewlett-Packard Co.
726,000
33,570,240International Business Machines Corp. (a)
301,500
35,263,440115,176,430Electronic Equipment, Instruments & Components 1.2%Mettler-Toledo International, Inc.*
217,400
21,305,200Internet Software & Services 0.9%Google, Inc. "A"*
40,300
16,140,956IT Services 3.4%Accenture Ltd. "A"
729,300
27,713,400Fiserv, Inc.* (a)
307,300
14,541,436Visa, Inc. "A"
285,500
17,526,84559,781,681Semiconductors & Semiconductor Equipment 2.2%Broadcom Corp. "A"*
351,950
6,556,828Intel Corp.
1,705,590
31,945,70138,502,529Software 4.1%Adobe Systems, Inc.*
597,300
23,575,431Electronic Arts, Inc.*
332,500
12,299,175Microsoft Corp.
1,310,280
34,971,37370,845,979Materials 6.3%Chemicals 4.7%Ecolab, Inc.
445,800
21,630,216Monsanto Co.
345,600
34,207,488Praxair, Inc.
360,800
25,883,79281,721,496Metals & Mining 1.6%Barrick Gold Corp.
472,700
17,366,998Freeport-McMoRan Copper & Gold, Inc. (a)
187,000
10,630,95027,997,948Telecommunication Services 0.8%Diversified Telecommunication ServicesAT&T, Inc.
472,400
13,189,408Utilities 0.4%Electric UtilitiesAllegheny Energy, Inc.
178,200
6,552,414Total Common Stocks (Cost $1,332,491,551)
1,684,102,946Securities Lending Collateral 8.7%Daily Assets Fund Institutional, 2.79% (b) (c)
(Cost $152,276,322)
152,276,322
152,276,322Cash Equivalents 3.6%Cash Management QP Trust, 2.38% (b) (Cost $63,139,061)
63,139,061
63,139,061 % of Net
Assets
Value ($)Total Investment Portfolio(Cost $1,547,906,934)+
108.7
1,899,518,329Other Assets and Liabilities, Net
(8.7)
(152,248,370)Net Assets
100.0
1,747,269,959 * Non-income producing security.  +  The cost for federal income tax purposes was $1,550,311,347. At September 30, 2008,
net unrealized appreciation for all securities based on tax cost was $349,206,982. This
consisted of aggregate gross unrealized appreciation for all securities in which there was
an excess of value over tax cost of $444,116,173 and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over value of
$94,909,191.  (a) All or a portion of these securities were on loan (see Notes to Financial Statements). The
value of all securities loaned at September 30, 2008 amounted to $154,384,842, which
is 8.8% of net assets.  (b) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate
shown is the annualized seven-day yield at period end.  (c) Represents collateral held in connection with securities lending. Income earned by the
Fund is net of borrower rebates.  The accompanying notes are an integral part of the financial statements. Financial Statements Statement of Assets and Liabilitiesas of September 30, 2008AssetsInvestments:Investments in securities, at value (cost $1,332,491,551)  including
$154,384,842 of securities loaned
$       1,684,102,946Investment in Daily Asset Fund Institutional (cost $152,276,322)*
152,276,322Investment in Cash Management QP Trust (cost $63,139,061)
63,139,061Total investments, at value (cost $1,547,906,934)
1,899,518,329Foreign currency, at value (cost $620,338)
594,883Receivable for investments sold
1,742,912Receivable for Fund shares sold
1,911,124Dividends receivable
1,554,477Interest receivable
221,801Foreign taxes recoverable
90,135Other assets
56,034Total assets
1,905,689,695LiabilitiesPayable upon return of securities loaned
152,276,322Payable for investments purchased
1,854,045Payable for Fund shares redeemed
2,025,424Accrued management fee
692,505Other accrued expenses and payables
1,571,440Total liabilities
158,419,736Net assets, at value
$    1,747,269,959Net Assets Consist ofUndistributed net investment income
5,518,678Net unrealized appreciation (depreciation) on:Investments
351,611,395Foreign currency
(15,440)Accumulated net realized gain (loss)
(619,789,386)Paid-in capital
2,009,944,712Net assets, at value
$    1,747,269,959 * Represents collateral on securities loaned.  The accompanying notes are an integral part of the financial statements. Statement of Assets and Liabilitiesas of September 30, 2008 (continued)Net Asset ValueClass A
Net Asset Value and redemption price(a) per share ($644,852,244 ÷ 
13,431,425 outstanding shares of beneficial interest, $.01 par value,
unlimited number of shares authorized)
$    48.01Maximum offering price per share (100 ÷ 94.25 of $48.01)
$    50.94Class B
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($24,753,321 ÷ 537,768 outstanding
shares of beneficial interest, $.01 par value, unlimited number of shares
authorized)
$    46.03Class C
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($25,947,150 ÷ 570,069 outstanding
shares of beneficial interest, $.01 par value, unlimited number of shares
authorized)
$    45.52Class R
Net Asset Value, offering and redemption price(a)per share
($34,946,752 ÷ 730,351 outstanding shares of beneficial interest,
$.01 par value, unlimited number of shares authorized)
$    47.85Class S
Net Asset Value, offering and redemption price(a)per share
($692,676,727 ÷ 14,308,659 outstanding shares of beneficial interest,
$.01 par value, unlimited number of shares authorized)
$    48.41Institutional Class
Net Asset Value, offering and redemption price(a)per share
($324,093,765 ÷ 6,695,528 outstanding shares of beneficial interest,
$.01 par value, unlimited number of shares authorized)
$    48.40 (a) Redemption price per share for shares held less than 15 days is equal to net asset value
less a 2% redemption fee.  The accompanying notes are an integral part of the financial statements. Statement of Operationsfor the year ended September 30, 2008Investment IncomeIncome:Dividends (net of foreign taxes withheld of $138,749)
$       21,826,864Interest  Cash Management QP Trust
1,516,031Interest
1,056Securities lending income, including income from Daily Assets Fund
Institutional, net of borrower rebates
612,108Total Income
23,956,059Expenses:Management fee
8,522,479Administration fee
1,853,366Services to shareholders
3,757,073Distribution and service fees
2,420,570Reports to shareholders
290,974Professional fees
170,627Trustees' fees and expenses
71,103Registration fees
89,571Custodian fee
71,464Other
73,928Total expenses before expense reductions
17,321,155Expense reductions
(296,031)Total expenses after expense reductions
17,025,124Net investment income (loss)
6,930,935Realized and Unrealized Gain (Loss)Net realized gain (loss) from:Investments
85,363,732Foreign currency
(45,191)85,318,541Change in net unrealized appreciation (depreciation) on:Investments
(389,487,891)Foreign currency
(33,944)(389,521,835)Net gain (loss)
(304,203,294)Net increase (decrease) in net assets resulting from operations
$    (297,272,359) The accompanying notes are an integral part of the financial statements. Statement of Changes in Net AssetsIncrease (Decrease) in Net Assets
Years Ended September 30,2008
2007Operations:Net investment income (loss)
$       6,930,935
$       7,342,554Net realized gain (loss)
85,318,541
151,227,357Change in net unrealized appreciation (depreciation)
(389,521,835)
144,252,050Net increase (decrease) in net assets resulting from
operations
(297,272,359)
302,821,961Distributions to shareholders from:Net investment income:Class A
(2,216,855)
(615,371)Class B
(42,903)
Class S
(4,763,359)
(3,038,849)Class R
(11)
Institutional Class
(1,193,707)
(130,735)Total distributions
(8,216,835)
(3,784,955)Fund share transactions:Proceeds from shares sold
407,973,979
243,225,529Reinvestment of distributions
7,230,161
3,446,784Cost of shares redeemed
(311,141,099)
(376,411,223)Redemption fees
153,892
4,593Net increase (decrease) in net assets from Fund share
transactions
104,216,933
(129,734,317)Increase (decrease) in net assets
(201,272,261)
169,302,689Net assets at beginning of period
1,948,542,220
1,779,239,531Net assets at end of period (including undistributed net
investment income of $5,518,678 and $7,350,852,
respectively)
$    1,747,269,959
$    1,948,542,220 The accompanying notes are an integral part of the financial statements. Financial Highlights Class A
Years Ended September 30,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    56.59
$    48.07
$    45.84
$    40.26
$    37.08Income (loss) from investment operations:
Net investment income (loss)a
.12
.15e
.06d
.14
(.06)Net realized and unrealized gain (loss)
(8.54)
8.41
2.17
5.50
3.24Total from investment operations
(8.42)
8.56
2.23
5.64
3.18Less distributions from:
Net investment income
(.16)
(.04)

(.06)
Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    48.01
$    56.59
$    48.07
$    45.84
$    40.26Total Return (%)b,c
(14.92)
17.81
4.86d
14.02
8.58Ratios to Average Net Assets and Supplemental DataNet assets, end of year ($ millions)
645
809
780
855
110Ratio of expenses before expense
reductions (%)
1.07
1.08
1.16
1.10
1.28Ratio of expenses after expense
reductions (%)
1.06
1.07
1.11
1.08
1.25Ratio of net investment income (loss) (%)
.23
.28e
.13d
.33
(.15)Portfolio turnover rate (%)
27
28
15
19
12aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.dIncludes non-recurring income from the Advisor recorded as a result of an
administrative proceeding regarding disclosure of brokerage allocation practices in
connection with sales of DWS Funds. The non-recurring income resulted in an increase
in net investment income of $0.030 per share and an increase in the ratio of net
investment income of 0.06%. Excluding this non-recurring income, total return would
have been 0.07% lower.eNet investment income per share and the ratio of net investment income include
non-recurring dividend income amounting to $0.08 per share and 0.16% of average daily
net assets, respectively.*Amount is less than $.005. Class B
Years Ended September 30,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    54.27
$    46.14
$    44.36
$    39.25
$    36.43Income (loss) from investment operations:
Net investment income (loss)a
.04
.08e
(.30)d
(.24)
(.35)Net realized and unrealized gain (loss)
(8.22)
8.05
2.08
5.35
3.17Total from investment operations
(8.18)
8.13
1.78
5.11
2.82Less distributions from:
Net investment income
(.06)



Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    46.03
$    54.27
$    46.14
$    44.36
$    39.25Total Return (%)b,c
(15.09)
17.62
4.01d
13.02
7.80Ratios to Average Net Assets and Supplemental DataNet assets, end of year ($ millions)
25
42
56
85
39Ratio of expenses before expense
reductions (%)
2.02
2.00
2.21
2.18
2.09Ratio of expenses after expense
reductions (%)
1.27
1.24
1.94
2.01
2.02Ratio of net investment income (loss) (%)
.02
.11e
(.70)d
(.60)
(.92)Portfolio turnover rate (%)
27
28
15
19
12aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.dIncludes non-recurring income from the Advisor recorded as a result of an
administrative proceeding regarding disclosure of brokerage allocation practices in
connection with sales of DWS Funds. The non-recurring income resulted in an increase
in net investment income of $0.030 per share and an increase in the ratio of net
investment income of 0.06%. Excluding this non-recurring income, total return would
have been 0.07% lower.eNet investment income per share and the ratio of net investment income include
non-recurring dividend income amounting to $0.08 per share and 0.16% of average daily
net assets, respectively.*Amount is less than $.005. Class C
Years Ended September 30,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    53.94
$    46.18
$    44.40
$    39.27
$    36.44Income (loss) from investment operations:
Net investment income (loss)a
(.31)
(.26)e
(.29)d
(.23)
(.34)Net realized and unrealized gain (loss)
(8.11)
8.02
2.07
5.36
3.17Total from investment operations
(8.42)
7.76
1.78
5.13
2.83Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    45.52
$    53.94
$    46.18
$    44.40
$    39.27Total Return (%)b
(15.61)
16.80
4.01d
13.06c
7.79cRatios to Average Net Assets and Supplemental DataNet assets, end of year ($ millions)
26
30
31
35
20Ratio of expenses before expense
reductions (%)
1.89
1.93
1.91
2.12
2.06Ratio of expenses after expense
reductions (%)
1.89
1.93
1.91
1.99
1.99Ratio of net investment income (loss) (%)
(.60)
(.58)e
(.67)d
(.58)
(.89)Portfolio turnover rate (%)
27
28
15
19
12aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.dIncludes non-recurring income from the Advisor recorded as a result of an
administrative proceeding regarding disclosure of brokerage allocation practices in
connection with sales of DWS Funds. The non-recurring income resulted in an increase
in net investment income of $0.030 per share and an increase in the ratio of net
investment income of 0.06%. Excluding this non-recurring income, total return would
have been 0.07% lower.eNet investment income per share and the ratio of net investment income include
non-recurring dividend income amounting to $0.08 per share and 0.16% of average daily
net assets, respectively.*Amount is less than $.005. Class R
Years Ended September 30,
2008
2007
2006
2005
2004aSelected Per Share DataNet asset value, beginning of period
$    56.44
$    48.08
$    45.98
$    40.46
$    39.45Income (loss) from investment
operations:
Net investment income (loss)b
(.02)
(.00)e
(.08)d
(.03)
(.09)Net realized and unrealized gain (loss)
(8.57)
8.36
2.18
5.55
1.13Total from investment operations
(8.59)
8.36
2.10
5.52
1.04Less distributions from:
Net investment income
.00***



(.03)Redemption fees
.00***
.00***
.00***
.00***
Net asset value, end of period
$    47.85
$    56.44
$    48.08
$    45.98
$    40.46Total Return (%)
(15.22)
17.39
4.57c,d
13.64c
2.63c**Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
35
.41
2
1
.34Ratio of expenses before expense
reductions (%)
1.41
1.35
1.42
1.62
1.64*Ratio of expenses after expense
reductions (%)
1.41
1.35
1.40
1.47
1.45*Ratio of net investment income (loss) (%)
(.12)
(.01)e
(.16)d
(.06)
(.35)*Portfolio turnover rate (%)
27
28
15
19
12aFor the period from November 3, 2003 (commencement of operations of Class R
shares) to September 30, 2004.bBased on average shares outstanding during the period.cTotal return would have been lower had certain expenses not been reduced.dIncludes non-recurring income from the Advisor recorded as a result of an
administrative proceeding regarding disclosure of brokerage allocation practices in
connection with sales of DWS Funds. The non-recurring income resulted in an increase
in net investment income of $0.030 per share and an increase in the ratio of net
investment income of 0.06%. Excluding this non-recurring income, total return would
have been 0.07% lower.eNet investment income per share and the ratio of net investment income include
non-recurring dividend income amounting to $0.08 per share and 0.16% of average daily
net assets, respectively.*Annualized**Not annualized***Amount is less than $.005. Class S
Years Ended September 30,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    57.06
$    48.46
$    46.20
$    40.59
$    37.31Income (loss) from investment operations:
Net investment income (loss)a
.27
.29d
.18c
.22
.04Net realized and unrealized gain (loss)
(8.60)
8.48
2.15
5.56
3.26Total from investment operations
(8.33)
8.77
2.33
5.78
3.30Less distributions from:
Net investment income
(.32)
(.17)
(.07)
(.17)
(.02)Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    48.41
$    57.06
$    48.46
$    46.20
$    40.59Total Return (%)
(14.68)
18.14b
5.04b,c
14.23
8.90bRatios to Average Net Assets and Supplemental DataNet assets, end of year ($ millions)
693
884
881
96
92Ratio of expenses before expense
reductions (%)
.79
.82
.94
.89
1.01Ratio of expenses after expense
reductions (%)
.79
.79
.85
.89
1.00Ratio of net investment income (loss) (%)
.50
.55d
.39c
.52
.10Portfolio turnover rate (%)
27
28
15
19
12aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced.cIncludes non-recurring income from the Advisor recorded as a result of an
administrative proceeding regarding disclosure of brokerage allocation practices in
connection with sales of DWS Funds. The non-recurring income resulted in an increase
in net investment income of $0.030 per share and an increase in the ratio of net
investment income of 0.06%. Excluding this non-recurring income, total return would
have been 0.07% lower.dNet investment income per share and the ratio of net investment income include
non-recurring dividend income amounting to $0.08 per share and 0.16% of average daily
net assets, respectively.*Amount is less than $.005. Institutional Class
Years Ended September 30,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    57.05
$    48.45
$    46.23
$    40.64
$    37.32Income (loss) from investment operations:
Net investment income (loss)a
.31
.32d
.22c
.31
.12Net realized and unrealized gain (loss)
(8.61)
8.50
2.19
5.57
3.27Total from investment operations
(8.30)
8.82
2.41
5.88
3.39Less distributions from:
Net investment income
(.35)
(.22)
(.19)
(.29)
(.07)Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    48.40
$    57.05
$    48.45
$    46.23
$    40.64Total Return (%)
(14.63)b
18.24b
5.22b,c
14.53b
9.08Ratios to Average Net Assets and Supplemental DataNet assets, end of year ($ millions)
324
183
29
20
17Ratio of expenses before expense
reductions (%)
.73
.74
.84
.70
.84Ratio of expenses after expense
reductions (%)
.73
.73
.77
.70
.84Ratio of net investment income (loss) (%)
.56
.62d
.47c
.71
.26Portfolio turnover rate (%)
27
28
15
19
12aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced.cIncludes non-recurring income from the Advisor recorded as a result of an
administrative proceeding regarding disclosure of brokerage allocation practices in
connection with sales of DWS Funds. The non-recurring income resulted in an increase
in net investment income of $0.030 per share and an increase in the ratio of net
investment income of 0.06%. Excluding this non-recurring income, total return would
have been 0.07% lower.dNet investment income per share and the ratio of net investment income include
non-recurring dividend income amounting to $0.08 per share and 0.16% of average daily
net assets, respectively.*Amount is less than $.005. Notes to Financial Statements A. Significant Accounting Policies DWS Capital Growth Fund (the "Fund") is a diversified series of
DWS Investment Trust (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 offers multiple classes of shares which provide investors with
different purchase options. Class A shares are offered to investors subject
to an initial sales charge. Class B shares are offered to investors without
an initial sales charge but are subject to higher ongoing expenses than
Class A shares and a contingent deferred sales charge payable upon
certain redemptions. Class B shares automatically convert to Class A
shares six years after issuance. Class C shares are offered to investors
without an initial sales charge but are subject to higher ongoing expenses
than Class A shares and a contingent deferred sales charge payable upon
certain redemptions within one year of purchase. Class C shares do not
convert into another class. Institutional Class shares are offered to limited
groups of investors, are not subject to initial or contingent deferred sales
charges and have lower ongoing expenses than other classes. Class R
shares are only available to participants in certain retirement plans and are
offered to investors without an initial sales charge or contingent deferred
sales charge. Class S shares are not subject to initial or contingent
deferred sales charges and are generally not available to new investors
except under certain circumstances. Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on
the basis of relative net assets by the holders of all classes of shares,
except that each class bears certain expenses unique to that class such as
distribution and service fees, services to shareholders and certain other
class-specific expenses. Differences in class-level expenses may result in
payment of different per share dividends by class. All shares of the Fund
have equal rights with respect to voting subject to class-specific
arrangements. The Fund's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America
which require the use of management estimates. Actual results could
differ from those estimates. The policies described below are followed
consistently by the Fund in the preparation of its financial statements. Security Valuation. Investments are stated at value determined as of the
close of regular trading on the New York Stock Exchange on each day the
exchange is open for trading. Equity securities are valued at the most
recent sale price or official closing price reported on the exchange (US or
foreign) or over-the-counter market on which the security is traded most
extensively. Securities for which no sales are reported are valued at the
calculated mean between the most recent bid and asked quotations on
the relevant market or, if a mean cannot be determined, at the most
recent bid quotation. Money market instruments purchased with an original or remaining
maturity of sixty days or less, maturing at par, are valued at amortized
cost. Investments in open-end investment companies and Cash
Management QP Trust are valued at their net asset value each business
day. Securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to
reflect fair value are valued in a manner that is intended to reflect their fair
value as determined in accordance with procedures approved by the
Trustees. The Fund may use a fair valuation model to value international
equity securities in order to adjust for events which may occur between
the close of the foreign exchanges and the close of the New York Stock
Exchange. New Accounting Pronouncement. In September 2006, the Financial
Accounting Standards Board ("FASB") released Statement of Financial
Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157").
FAS 157 defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements. FAS 157 is
effective for fiscal years beginning after November 15, 2007. As of
September 30, 2008, management does not believe the adoption of
FAS 157 will impact the amounts reported in the financial statements,
however, additional disclosures will be required about the levels of inputs
used to develop the measurements of fair value and the effect of certain
of the measurements reported in the statement of operations for a fiscal
period. Foreign Currency Translations. The books and records of the Fund are
maintained in US dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into US dollars
at the prevailing exchange rates at period end. Purchases and sales of
investment securities, income and expenses are translated into US dollars
at the prevailing exchange rates on the respective dates of the
transactions. Net realized and unrealized gains and losses on foreign currency
transactions represent net gains and losses between trade and
settlement dates on securities transactions, the disposition of forward
foreign currency exchange contracts and foreign currencies, and the
difference between the amount of net investment income accrued and
the US dollar amount actually received. That portion of both realized and
unrealized gains and losses on investments that results from fluctuations
in foreign currency exchange rates is not separately disclosed but is
included with net realized and unrealized gain/appreciation and
loss/depreciation on investments. Securities Lending. The Fund may lend securities to financial institutions.
The Fund retains beneficial ownership of the securities it has loaned and
continues to receive interest and dividends paid by the issuer of securities
and to participate in any changes in their market value.The Fund requires
the borrowers of the securities to maintain collateral with the Fund
consisting of liquid, unencumbered assets having a value at least equal to
the value of the securities loaned.When the collateral falls below
specified amounts, the lending agents will use their best efforts to obtain
additional collateral on the next business day to meet required amounts
under the security lending agreement.The Fund may invest the cash
collateral into a joint trading account in an affiliated money market fund
pursuant to Exemptive Orders issued by the SEC.The Fund receives
compensation for lending its securities either in the form of fees or by
earning interest on invested cash collateral net of borrower rebates and
fees paid to the lending agent. Either the Fund or the borrower may
terminate the loan. There may be risks of delay and costs in recovery of
securities or even loss of rights in the collateral should the borrower of
the securities fail financially. The Fund is also subject to all investment
risks associated with the value of any cash collateral received, including,
but not limited to, interest rate, credit and liquidity risk associated with
such investments. 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 September 30, 2008, the Fund had a net tax basis capital loss
carryforward of approximately $617,385,000, which may be applied
against any realized net taxable capital gains of each succeeding year until
fully utilized or until September 30, 2009 ($95,111,000), September 30,
2010 ($46,239,000), September 30, 2011 ($305,729,000), and
September 30, 2012 ($170,306,000), the expiration dates, whichever
occurs first, subject to certain limitations under Sections 382-384 of the
Internal Revenue Code. During the year ended September 30, 2008, the
Fund utilized approximately $85,398,000 of prior year capital loss
carryforwards and approximately $2,347,000 was determined non-usable. The Fund has reviewed the tax positions for the open tax years as of
September 30, 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, if
any, is declared and distributed to shareholders annually. Net realized
gains from investment transactions, in excess of available capital loss
carryforwards, would be taxable to the Fund if not distributed, and,
therefore, will be distributed to shareholders at least annually. The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from accounting principles generally
accepted in the United States of America. These differences primarily
relate to certain securities sold at a loss. As a result, net investment
income (loss) and net realized gain (loss) on investment transactions for a
reporting period may differ significantly from distributions during such
period. Accordingly, the Fund may periodically make reclassifications
among certain of its capital accounts without impacting the net asset
value of the Fund. At September 30, 2008, the Fund's components of distributable earnings
(accumulated losses) on a tax-basis were as follows: Undistributed ordinary income
$       5,518,678Capital loss carryforwards
$       (617,385,000)Net unrealized appreciation (depreciation) on investments
$       349,206,982 In addition, the tax character of distributions paid to shareholders by the
Fund is summarized as follows: Years Ended September 30,2008
2007Distributions from ordinary income
$       8,216,835
$       3,784,955 Redemption Fees. The Fund imposes a redemption fee of 2% of the total
redemption amount on the Fund shares redeemed or exchanged within 15
days of buying them, either by purchase or exchange. This fee is assessed
and retained by the Fund for the benefit of the remaining shareholders.
The redemption fee is accounted for as an addition to paid-in capital. Expenses. Expenses of the Trust arising in connection with a specific fund
are allocated to that fund. Other Trust expenses which cannot be directly
attributed to a fund are apportioned among the funds in the Trust. Contingencies.In the normal course of business, the Fund may enter into
contracts with service providers that contain general indemnification
clauses. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against
the Fund that have not yet been made. However, based on experience,
the Fund expects the risk of loss to be remote. Other. Investment transactions are accounted for on a trade date plus one
basis for daily net asset value calculations. However, for financial reporting
purposes, investment security transactions are reported on trade date.
Interest income is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date net of foreign withholding taxes. Certain
dividends from foreign securities may be recorded subsequent to the
ex-dividend date as soon as the Fund is informed of such dividends.
Realized gains and losses from investment transactions are recorded
on an identified cost basis. B. Purchases and Sales of Securities During the year ended September 30, 2008, purchases and sales of
investment securities (excluding short-term investments) aggregated
$569,310,765 and $494,640,215, respectively. C. Related Parties Management Agreement. Under the Investment Management
Agreement with Deutsche Investment Management Americas Inc.
("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of
Deutsche Bank AG, the Advisor directs the investments of the Fund in
accordance with its investment objectives, policies and restrictions. The
Advisor determines the securities, instruments and other contracts
relating to investments to be purchased, sold or entered into by the Fund. Under the Investment Management Agreement with the Advisor, the
Fund pays a monthly management fee based on the Fund's average daily
net assets, computed and accrued daily and payable monthly, at the
following annual rates: First $250 million of the Fund's average daily net assets
.495%Next $750 million of such net assets
.465%Next $1.5 billion of such net assets
.445%Next $2.5 billion of such net assets
.425%Next $2.5 billion of such net assets
.395%Next $2.5 billion of such net assets
.375%Next $2.5 billion of such net assets
.355%Over $12.5 billion of such net assets
.335% Accordingly, for the year ended September 30, 2008, the fee pursuant to
the management agreement was equivalent to an annual effective rate of
0.46% of the Fund's average daily net assets. For the period from October 1, 2007 through November 30, 2008, the
Advisor has contractually agreed to waive all or a portion of its
management fee and reimburse or pay certain operating expenses of the
Fund (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) to the extent necessary to maintain the operating
expenses of each class as follows: Class A
1.06%Class B
2.01%Class C
1.99%Class R
1.45%Class S
.80%Institutional Class
.73% 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 year ended September 30, 2008, the Advisor received an
Administration Fee of $1,853,366, of which $151,807 is unpaid. Service Provider Fees. DWS Investments Service Company ("DISC"), an
affiliate of the Advisor, is the transfer agent, dividend-paying agent and
shareholder service agent of 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
September 30, 2008, the amounts charged to the Fund by DISC were as
follows: Services to Shareholders
Total
Aggregated
Waived
Unpaid at
September 30,
2008Class A
$       1,487,305
$       13,816
$       441,676Class B
131,162

29,564Class C
74,582

17,734Class R
4,010

3,123Class S
1,280,348

304,134Institutional Class
138,216
4,900
57,291$    3,115,623
$    18,716
$    853,522 Distribution and Service Fees. Under the Fund's Class B, C and Class R
12b-1 Plans, DWS Investments Distributors, Inc. ("DIDI"), an affiliate
of the Advisor, receives a fee ("Distribution Fee") of 0.75%, 0.75% and
0.25% of average daily net assets of each of Class B, C and R shares,
respectively. In accordance with the Fund's Underwriting and Distribution
Service Agreement, DIDI enters into related selling group agreements
with various firms at various rates for sales of Class B, C and Class R
shares. DIDI has voluntarily agreed to waive the 0.75% 12b-1 distribution
fee for Class B shares only. For the year ended September 30, 2008, the
Distribution Fee was as follows: Distribution Fee
Total
Aggregated
Waived
Unpaid at
September 30,
2008Class B
$       251,011
$       251,011
$       Class C
215,155

17,132Class R
19,539

7,627$    485,705
$    251,011
$    24,759 In addition, DIDI provides information and administrative services for a fee
("Service Fee") to Class A, B, C and R shareholders at an annual rate of
up to 0.25% of average daily net assets for each such class. DIDI in turn
has various agreements with financial services firms that provide these
services and pays these fees based upon the assets of shareholder
accounts the firms service. For the year ended September 30, 2008, the
Service Fee was as follows: Service Fee
Total
Aggregated
Unpaid at
September 30,
2008
Annual
Effective RateClass A
$       1,762,477
$       127,804
.24%Class B
81,901
3,764
.24%Class C
70,988
5,022
.25%Class R
19,499
7,629
.25%$    1,934,865
$    144,219 Underwriting Agreement and Contingent Deferred Sales Charge. DIDI is
the principal underwriter for the Fund. Underwriting commissions paid in
connection with the distribution of Class A shares for the year ended
September 30, 2008, aggregated $42,497. In addition, DIDI receives any contingent deferred sales charge ("CDSC")
from Class B share redemptions occurring within six years of purchase
and Class C share redemptions occurring within one year of purchase.
There is no such charge upon redemption of any share appreciation or
reinvested dividends. The CDSC is based on declining rates ranging from
4% to 1% for Class B and 1% for Class C, of the value of the shares
redeemed. For the year ended September 30, 2008, the CDSC for Class B
and C shares aggregated $75,164 and $789, respectively. A deferred sales
charge of up to 1% is assessed on certain redemptions of Class A shares.
For the year ended September 30, 2008, DIDI received $803 for Class A
shares. Typesetting and Filing Service Fees. Under an agreement with DIMA,
DIMA is compensated for providing typesetting and certain regulatory
filing services to the Fund. For the year ended September 30, 2008, the
amount charged to the Fund by DIMA included in the Statement of
Operations under "reports to shareholders" aggregated $25,988, of
which $9,884 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, 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 September 30, 2008, the Fund
paid its allocated portion of the retirement benefit of $9,168 to the
non-continuing Independent Board Members, and the Fund was
reimbursed by DIMA for this payment. Cash Management QP Trust. Pursuant to an Exemptive Order issued by
the SEC, the Fund may invest in the Cash Management QP Trust (the
"QP Trust"), and other affiliated funds managed by the Advisor. The QP
Trust seeks to provide as high a level of current income as is consistent
with the preservation of capital and the maintenance of liquidity. The QP
Trust does not pay the Advisor a management fee for the affiliated funds'
investments in the QP Trust. D. Fee Reductions The Fund has entered into an arrangement with its custodian and transfer
agent whereby credits realized as a result of uninvested cash balances are
used to reduce a portion of the Fund's custodian expenses. During the
year ended September 30, 2008, the Fund's custodian fee was reduced
by $1,093 and $16,043, respectively, for custody and transfer agent
credits earned. E. Line of Credit The Fund and other affiliated funds (the "Participants") share in a
$490 million revolving credit facility provided by a syndication of banks.
The Fund may borrow for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the
untimely disposition of securities. The Participants are charged an annual
commitment fee which is allocated based on net assets, among each of
the Participants. Interest is calculated at the Federal Funds Rate plus
0.35 percent. The Fund may borrow up to a maximum of 33 percent of its
net assets under the agreement. F. Share Transactions The following table summarizes share and dollar activity in the Fund: Year Ended September 30, 2008
Year Ended September 30, 2007Shares
Dollars
Shares
DollarsShares soldClass A
1,377,427
$       74,124,271
1,102,659
$       57,043,077Class B
91,654
4,726,161
62,864
3,144,021Class C
160,207
8,217,799
96,689
4,818,037Class R
762,560
39,474,596
14,013
705,480Class S
905,125
48,837,854
504,496
26,545,252Institutional Class
4,291,811
232,593,298
2,816,206
150,969,662$    407,973,979

$    243,225,529Shares issued to shareholders in reinvestment of distributionsClass A
37,369
$       2,078,088
11,365
$       579,748Class B
772
41,239

Class S
79,715
4,460,037
55,560
2,851,914Class R
0
11

Institutional Class
11,640
650,786
295
15,122$    7,230,161

$    3,446,784Shares redeemedClass A
(2,280,786)
$       (122,812,920)
(3,049,419)
$       (158,304,118)Class B
(323,175)
(16,801,030)
(505,200)
(24,982,865)Class C
(151,706)
(7,774,210)
(208,745)
(10,377,799)Class R
(39,410)
(2,054,817)
(46,289)
(2,334,519)Class S
(2,170,241)
(117,879,517)
(3,247,226)
(169,266,221)Institutional Class
(814,632)
(43,818,605)
(209,186)
(11,145,701)$    (311,141,099)

$    (376,411,223)Redemption fees

$    153,892

$    4,593Net increase (decrease)Class A
(865,990)
$       (46,602,961)
(1,935,395)
$       (100,680,066)Class B
(230,749)
(12,033,461)
(442,336)
(21,838,663)Class C
8,501
444,054
(112,056)
(5,559,381)Class R
723,150
37,419,790
(32,276)
(1,629,039)Class S
(1,185,401)
(64,580,762)
(2,687,170)
(139,867,206)Institutional Class
3,488,819
189,570,273
2,607,315
139,840,038$    104,216,933

$    (129,734,317) Report of Independent Registered
Public Accounting Firm To the Trustees of DWS Investment Trust and the Shareholders of
DWS Capital Growth Fund: In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of DWS Capital
Growth Fund (the "Fund") at September 30, 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 audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 2008by correspondence with the custodian and brokers,
provide a reasonable basis for our opinion. Boston, Massachusetts
November 25, 2008
PricewaterhouseCoopers LLP Tax Information(Unaudited) For corporate shareholders, 100% of the income dividends paid during the
Fund's fiscal year ended September 30, 2008, qualified for the dividends
received deduction. For federal income tax purposes, the Fund designates approximately
$24,162,000, or the maximum amount allowable under tax law, as
qualified dividend income. Please consult a tax advisor if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have
specific questions about your account, please call (800) 621-1048. Investment Management Agreement
Approval The Board of Trustees, including the Independent Trustees, approved
the renewal of your Fund's investment management agreement (the
"Agreement") with Deutsche Investment Management Americas Inc.
("DIMA") in September 2008. In terms of the process that the Board followed prior to approving the
Agreement, shareholders should know that: •   At the present time, all but one of your 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 Equity 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 Fund's
contractual arrangements and considered a comprehensive report
prepared by the independent fee consultant in connection with their
deliberations (the "IFC Report"). •   In connection with reviewing the Agreement, the Board also reviewed
the terms of the Fund's Rule 12b-1 plan, distribution agreement,
administrative services agreement, transfer agency agreement and
other material service agreements. •   Based on its evaluation of the information provided, the Contract
Committee presented its findings and recommendations to the
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, and that the Agreement was approved by the Fund's shareholders
at a special meeting held in 2006. 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 Fund's 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 Agreement, including the scope of advisory services provided
under the Agreement. The Board noted that, under the Agreement,
DIMA provides portfolio management services to the Fund and that,
pursuant to a separate administrative services agreement, DIMA provides
administrative services to the Fund. The Board considered the experience
and skills of senior management and investment personnel, the resources
made available to such personnel, the ability of 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
Lipper Inc. ("Lipper"). 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 Lipper), 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 (Class A shares) was in the
3rd quartile, 2nd quartile and 2nd quartile, respectively, of the applicable
Lipper universe (the 1st quartile being the best performers and the
4th quartile being the worst performers). The Board also observed that
the Fund has outperformed its benchmark in the one- and three-year
periods and underperformed its benchmark the five-year period 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 Fund's investment
management fee schedule, operating expenses and total expense ratios,
and comparative information provided by Lipper and the independent fee
consultant regarding investment management fee rates paid to other
investment advisors by similar funds (1st quartile being the most favorable
and 4th quartile being the least favorable). With respect to management
fees paid to other investment advisors by similar funds, the Board noted
that the contractual fee rates paid by the Fund, which include a 0.10% fee
paid to DIMA under the Fund's administrative services agreement, were
lower than the median (2nd quartile) of the applicable Lipper peer group
(based on Lipper data provided as of December 31, 2007). The Board
noted that the Fund's Class A shares' total (net) operating expenses
(excluding 12b-1 fees) were expected to be lower than the median
(2nd quartile) of the applicable Lipper expense universe (based on Lipper
data provided as of December 31, 2007, and analyzing Lipper expense
universe Class A expenses less any applicable 12b-1 fees) ("Lipper
Universe Expenses"). The Board also reviewed each other share class's
total (net) operating expenses relative to the Lipper Universe Expenses.
The Board considered the Fund'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 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). 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 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 noted that the
Fund's management fee schedule includes fee breakpoints. The Board
concluded that the Fund's fee schedule represents an appropriate sharing
between the Fund and DIMA of such economies of scale as may exist in
the management of the Fund 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 Agreement is in the best interests of the
Fund. In making this determination the Board did not give particular
weight to any single factor identified above. The Board considered these
factors over the course of numerous meetings, certain of which were in
executive session with only the Independent 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 Agreement. 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. cgf_mack0Thomas H. Mack Trustees and Officers The following table presents certain information regarding the Board
Members and Officers of the Trust as of September 30, 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
OverseenDawn-Marie
Driscoll (1946)Chairperson
since 20042Board Member
since 1987
President, Driscoll Associates (consulting firm); Executive
Fellow, Center for Business Ethics, Bentley College;
formerly, Partner, Palmer & Dodge (1988-1990); Vice
President of Corporate Affairs and General Counsel, Filene's
(1978-1988). Directorships: Trustee of eight 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
College; Trustee, Southwest Florida Community Foundation
(charitable organization). Former Directorships: Investment
Company Institute (audit, executive, nominating committees)
and Independent Directors Council (governance, executive
committees)
134Paul K. Freeman
(1950)Vice Chairperson
since 2008Board Member
since 1993
Consultant, World Bank/Inter-American Development Bank;
formerly, Project Leader, International Institute for Applied
Systems Analysis (1998-2001); Chief Executive Officer, The
Eric Group, Inc. (environmental insurance) (1986-1998)
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. 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 equity funds). Directorships: Progressive Holding
Corporation (kitchen goods importer and distributor); Natural
History, Inc. (magazine publisher); 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 eight
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;
Service Source, Inc. Former Directorships: 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)Patricia DeFilippis10(1963)Assistant Secretary,
2005-present
Vice President, Deutsche Asset Management (since June
2005); formerly, Counsel, New York Life Investment
Management LLC (2003-2005); legal associate, Lord, Abbett
& Co. LLC (1998-2003)Elisa D. Metzger10 (1962)Assistant Secretary
2005-present
Director5, Deutsche Asset Management (since September
2005); formerly, Counsel, Morrison and Foerster LLP
(1999-2005)Caroline Pearson9 (1962)Assistant Secretary,
1997-present
Managing Director5, Deutsche Asset ManagementPaul 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)Kathleen Sullivan D'Eramo9
(1957)Assistant Treasurer,
2003-present
Director5, Deutsche Asset ManagementDiane 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 Represents the year Ms. Driscoll was first appointed Chairperson of certain DWS funds.  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. Account Management Resources For More
Information
The automated telephone system allows you to access personalized
account information and obtain information on other DWS funds
using either your voice or your telephone keypad. Certain account
types within Classes A, B, C and S also have the ability to purchase,
exchange or redeem shares using this system.For more information, contact your financial advisor. You may
also access our automated telephone system or speak with a
DWS Investments representative by calling the appropriate
number below:For shareholders of Classes A, B, C and Institutional Class:
(800) 621-1048For shareholders of Class S:
(800) 728-3337Web Site
www.dws-investments.com
View your account transactions and balances, trade shares, monitor
your asset allocation, and change your address, 24 hours a day.Obtain prospectuses and applications,blank forms, interactive
worksheets, news about DWS funds, subscription to fund updates
by e-mail, retirement planning information, and more.Written
Correspondence
DWS Investments
PO Box 219151
Kansas City, MO 64121-9151Proxy 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) 621-1148 Class A
Class B
Class C
Class S
Institutional
ClassNasdaq Symbol
SDGAX
SDGBX
SDGCX
SCGSX
SDGTXCUSIP Number
23338J  103
23338J  202
23338J  301
23338J  509
23338J  707Fund Number
498
698
798
2398
564 For shareholders of Class RAutomated
Information Line
DWS Investments Flex Plan Access (800) 532-8411
24-hour access to your retirement plan account.Web Site
www.dws-investments.com
Click "Retirement" and select "Employer Sponsored Plans" to
reallocate assets, process transactions and review your funds
through our secure online account access.Obtain prospectuses and applications,blank forms, interactive
worksheets, news about DWS funds, subscription to fund updates
by e-mail, retirement planning information, and more.For More
Information
(800) 543-5776
To speak with a service representative.Written
Correspondence
DWS Investments
222 South Riverside Plaza
Chicago, IL 60606-5806Proxy Voting
A description of 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 30is 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) 621-1148 Class RNasdaq Symbol
SDGRXCUSIP Number
23338J  608Fund Number
1508 Notes Notes Notes Notes Notes cgf_backcover0


ITEM 2.
        CODE OF ETHICSAs of the end of the period, September 30, 2008, DWS Capital Growth Fund has a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer.

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

A copy of the code of ethics is filed as an exhibit to this Form N-CSR.ITEM 3.
        AUDIT COMMITTEE FINANCIAL EXPERTThe Funds audit committee is comprised solely of trustees who are independent (as such term has been defined by the Securities and Exchange Commission (SEC) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the Regulations)). The Funds Board of Trustees has determined that there are several audit committee financial experts (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
 DWS CAPITAL GROWTH FUND FORM N-CSR DISCLOSURE RE: AUDIT FEES The following table shows the amount of fees that PricewaterhouseCoopers, LLP (PWC), the Funds independent registered public accounting firm, billed to the Fund during the Funds last two fiscal years.  The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). Services that the Funds Independent Registered Public Accounting Firm Billed to the Fund Fiscal YearEndedSeptember 30,
        Audit Fees Billed to Fund
        Audit-RelatedFees Billed to Fund
        Tax Fees Billed to Fund
        AllOther Fees Billed to Fund2008
        $82,386
        $0
        $0
        $02007
        $76,525
        $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 YearSeptember 30,
        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 YearEndedSeptember 30,
        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
        $600,000
        $619,0002007
        $0
        $25,000
        $0
        $25,000
   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 HOLDERSThe 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.  DWS Micro Cap Fund, a series of DWS Advisor Funds DWS Mid Cap Growth Fund, a series of DWS Advisor Funds DWS Short Duration Plus Fund, a series of DWS Advisor Funds DWS Small Cap Growth Fund, a series of DWS Advisor Funds DWS Dreman Value Income Edge Fund, Inc. DWS High Income Fund, a series of DWS High Income Series DWS GNMA Fund, a series of DWS Income Trust DWS Inflation Protected Plus Fund, a series of DWS Institutional Funds DWS Capital Growth Fund, a series of DWS Investment Trust DWS Growth & Income Fund, a series of DWS Investment Trust DWS Small Cap Core Fund, a series of DWS Investment Trust Tax-Exempt California Money Market Fund  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        December 2, 2008
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        December 2, 2008
  By:
        /s/Paul Schubert
 Paul Schubert
 Chief Financial Officer and Treasurer  Date:
        December 2, 2008