Strategic Income Fund
DWS Strategic Government Securities Fund

Supplement to the  currently  effective  Statements  of  Additional  Information
("SAIs") for the above-listed funds.

The  following  information  supplements  information  contained in  "Investment
Policies and Techniques" section of the fund's SAIs:

Swaps, Caps, Floors and Collars.  Among the Strategic  Transactions into which a
Fund may enter are interest  rate,  credit  default,  currency,  index and other
swaps and the  purchase  or sale of related  caps,  floors and  collars.  A Fund
expects to enter  into  these  transactions  primarily  to  preserve a return or
spread on a  particular  investment  or  portion  of its  portfolio,  to protect
against currency fluctuations,  as a duration management technique or to protect
against any increase in the price of securities a Fund anticipates purchasing at
a later date or to enhance returns or to enhance  returns.  A Fund will not sell
interest  rate  caps or  floors  where  it  does  not own  securities  or  other
instruments providing the income stream a Fund may be obligated to pay. Interest
rate swaps involve the exchange by a Fund with another party of their respective
commitments  to pay or receive  interest,  e.g.,  an exchange  of floating  rate
payments for fixed rate payments with respect to a notional amount of principal.
A currency swap is an agreement to exchange  cash flows on a notional  amount of
two or more currencies based on the relative value  differential  among them and
an index swap is an agreement  to swap cash flows on a notional  amount based on
changes in the values of the reference  indices.  The purchase of a cap entitles
the purchaser to receive payments on a notional  principal amount from the party
selling such cap to the extent that a specified  index  exceeds a  predetermined
interest  rate or amount.  The  purchase of a floor  entitles  the  purchaser to
receive  payments on a notional  principal  amount from the party  selling  such
floor to the extent that a specified index falls below a predetermined  interest
rate or amount.  A collar is a combination of a cap and a floor that preserves a
certain return within a predetermined range of interest rates or values.

Each Fund will usually  enter into swaps on a net basis,  i.e.,  the two payment
streams  are  netted  out in a cash  settlement  on the  payment  date or  dates
specified in the instrument, with each Fund receiving or paying, as the case may
be,  only  the net  amount  of the two  payments.  Inasmuch  as each  Fund  will
segregate  assets (or enter into offsetting  positions) to cover its obligations
under  swaps,  the  Advisor  and  the  Funds  believe  such  obligations  do not
constitute senior securities under the 1940 Act and, accordingly, will not treat
them as being  subject to its borrowing  restrictions.  Each Fund will not enter
into any swap, cap, floor or collar transaction  unless, at the time of entering
into  such  transaction,  the  unsecured  long-term  debt  of the  Counterparty,
combined with any credit enhancements,  is rated at least A by S&P or Moody's or
has an equivalent rating from another NRSRO or is determined to be of equivalent
credit quality by the Advisor.  If there is a default by the Counterparty,  each
Fund may have  contractual  remedies  pursuant to the agreements  related to the
transaction.  The swap  market has grown  substantially  in recent  years with a
large number of banks and investment banking firms acting both as principals and
as agents  utilizing  standardized  swap  documentation.  As a result,  the swap
market has become  relatively  liquid.  Caps, floors and collars are more recent
innovations  for  which  standardized  documentation  has  not  yet  been  fully
developed and, accordingly, they are less liquid than swaps.

Each  Fund may  invest up to 15% of its total  assets  in credit  default  swaps
(measured by the notional  amount of the credit  default swap). A credit default
swap is a  contract  between  a buyer  and a  seller  of  protection  against  a
pre-defined  credit  event.  The  buyer of  protection  pays the  seller a fixed
regular  fee  provided  that no  event of  default  on an  underlying  reference
obligation has occurred.  If an event of default occurs, the seller must pay the
buyer the full notional  value,  or "par value," of the reference  obligation in
exchange for the reference obligation.  Credit default swaps are used as a means
of "buying" credit protection,  i.e., attempting to mitigate the risk of default
or credit  quality  deterioration  in some  portion of the Fund's  holdings,  or
"selling" credit protection,  i.e., attempting to gain exposure to an underlying
issuer's  credit  quality  characteristics  without  directly  investing in that
issuer.  No more than 5% of each Fund's  total  assets may be invested in credit
default swaps for purposes of buying credit protection on individual  securities
if the Fund does not own the  underlying  security or  securities at the time of
investment. Where the Fund is a seller of credit protection, it effectively adds
leverage to its portfolio  because,  in addition,  to its total net assets,  the
Fund would be subject to investment exposure on the notional amount of the swap.
The Fund will only sell credit protection with respect to securities in which it
would be authorized to invest  directly.  The Fund


<PAGE>

currently  considers  credit  default swaps to be illiquid and treats the market
value of the contract as illiquid for purposes of  determining  compliance  with
the Fund's restrictions on investing in illiquid securities.

If the Fund is a buyer of a credit default swap and no event of default  occurs,
the Fund will lose its investment and recover nothing. However, if the Fund is a
buyer and an event of default  occurs,  the Fund will receive the full  notional
value of the reference obligation that may have little or no value. As a seller,
the Fund  receives  a fixed  rate of  income  through  the term of the  contract
(typically  between  six  months  and three  years),  provided  that there is no
default event. If an event of default occurs,  the seller must pay the buyer the
full notional  value of the reference  obligation.  Credit default swaps involve
greater  risks  than  if the  Fund  had  invested  in the  reference  obligation
directly.

The Fund may use credit default swaps to gain exposure to particular  issuers or
particular  markets  through  investments in portfolios of credit default swaps,
such  as  Dow  Jones  CDX.NA.HY  certificates.   By  investing  in  certificates
representing  interests in a basket of credit default swaps,  the Fund is taking
credit risk with respect to an entity or group of entities and providing  credit
protection  to the swap  counterparties.  For example,  the CDX EM is a tradable
basket of 19 credit  default  swaps on country  credits which seeks to replicate
the returns on the indices of a broad group of emerging markets  countries.  The
credits  are a subset of the  countries  represented  by the  JPMorgan  Emerging
Markets Bond Index Global  Diversified.  By purchasing  interests in CDX EM, the
Fund is gaining emerging markets  exposure through a single  investment.  Unlike
other types of credit  default  swaps which are generally  considered  illiquid,
credit default swap certificates generally can be sold within seven days and are
not subject to the Fund's restrictions on investing in illiquid securities.



               Please Retain This Supplement for Future Reference


July 31, 2008




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