Filed electronically with the Securities and Exchange Commission
                               on March 26, 2008


                                                                File No. 33-5724
                                                               File No. 811-4670


                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM N-1A

             REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933         /_/

                           Pre-Effective Amendment No.                       /_/
                         Post-Effective Amendment No. 75                     /X/
                                     and/or           --
                        REGISTRATION STATEMENT UNDER THE
                         INVESTMENT COMPANY ACT OF 1940                      /_/

                                Amendment No. 78                             /X/
                                              --
                       DWS Global/International Fund, Inc.
                      ------------------------------------
               (Exact name of Registrant as Specified in Charter)

                       345 Park Avenue, New York, NY 10154
                       ----------------------------- -----
                    (Address of Principal Executive Offices)

       Registrant's Telephone Number, including Area Code: (617) 295-1000
                                                           --------------

                                  John Millette
                    Two International Place, Boston, MA 02110
                    -----------------------------------------
                     (Name and Address of Agent for Service)

It is proposed that this filing will become effective

/_/   Immediately upon filing pursuant to paragraph (b)
/_/   On _____________ pursuant to paragraph (b)
/_/   60 days after filing pursuant to paragraph (a)(1)
/_/   On _____________ paragraph (a)(1)
/_/   75 days after filing pursuant to paragraph (a)(2)
/_/   On _____________ pursuant to paragraph (a)(2)
/X/   On May 23, 2008 pursuant to paragraph (a)(3) of Rule 485

      If appropriate, check the following box:
/_/   This post-effective amendment designates a new effective date for a
      previously filed post-effective amendment.




<PAGE>




                                EXPLANATORY NOTE
                                ----------------



This post-effective amendment contains the prospectuses and statements of
additional information relating to the classes of the following series of the
registrant:

   o   DWS RREEF Global Infrastructure Fund - Classes A, C, Institutional and S

This post-effective amendment is not intended to update or amend any other
prospectuses or statements of additional information of the registrant's other
series or classes.



                                       1
<PAGE>



               SUPPLEMENT TO THE CURRENTLY EFFECTIVE PROSPECTUSES

                                  -----------------

                      DWS RREEF Global Infrastructure Fund

DWS Scudder Distributors, Inc., the fund's distributor, has entered into an
arrangement with Merrill Lynch Pierce Fenner and Smith, Inc. ("Merrill Lynch")
whereby the fund is offered exclusively by Merrill Lynch to its clients. Merrill
Lynch is seeking nonbinding indications of interest in the fund, and will
purchase shares on behalf of clients at the commencement of the fund's
operations, which is expected to occur on or about July 1, 2008. Thereafter, the
fund will be offered through other financial service companies in addition to
Merrill Lynch.








               Please Retain This Supplement for Future Reference



                                                              [DWS SCUDDER LOGO]
                                                             Deutsche Bank Group

March 7, 2008
DRGIF-36xx

<PAGE>

                                  MAY 23, 2008







                                   PROSPECTUS
                              ------------------
                                CLASSES A AND C

                      DWS RREEF GLOBAL INFRASTRUCTURE FUND

As with all mutual funds, the Securities and Exchange Commission (SEC) does not
approve or disapprove these shares or determine whether the information in this
prospectus is truthful or complete. It is a criminal offense for anyone to
inform you otherwise.


                            ONE GLOBAL FORCE. ONE FOCUS. YOU. [DWS SCUDDER LOGO]
                                                             Deutsche Bank Group



<PAGE>

CONTENTS




<TABLE>
<S>      <C>
HOW THE FUND WORKS
  4      The Fund's Main Investment
         Strategy
  6      The Main Risks of Investing in
         the Fund
 11      The Fund's Performance
         History
 12      How Much Investors Pay
 14      Other Policies and Risks
 15      Who Manages and Oversees
         the Fund
 18      Financial Highlights


</TABLE>
<TABLE>
<S>      <C>
HOW TO INVEST IN THE FUND
 20      Choosing a Share Class
 25      How to Buy Class A and C
         Shares
 26      How to Exchange or Sell
         Class A and C Shares
 29      Policies You Should Know
         About
 42      Understanding Distributions
         and Taxes
 45      Appendix
</TABLE>

<PAGE>

HOW THE FUND WORKS

On the next few pages, you'll find information about the fund's investment
objective, the main strategies it uses to pursue that objective and the main
risks that could affect performance.

Whether you are considering investing in the fund or are already a shareholder,
you'll want to LOOK THIS INFORMATION OVER CAREFULLY. You may want to keep it on
hand for reference as well.

CLASSES A AND C shares are generally intended for investors seeking the advice
and assistance of a financial advisor.

Remember that mutual funds are investments, not bank deposits. They're not
insured or guaranteed by the FDIC or any other government agency. Their share
prices will go up and down, and you could lose money by investing in them.

You can find DWS prospectuses on the Internet at WWW.DWS-SCUDDER.COM (the Web
site does not form a part of this prospectus).
<PAGE>


<TABLE>
<S>                                       <C>        <C>
                                           Class A    Class C
  fund number

    DWS RREEF GLOBAL INFRASTRUCTURE FUND


</TABLE>

            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks total return from both capital appreciation and
            current income through investment in a global portfolio of
            securities of infrastructure-related companies.

            Under normal circumstances, the fund invests at least 80% of its
            net assets in the securities of US and non-US
            infrastructure-related companies. The fund considers a company to
            be an infrastructure-related company if at least 50% of its assets
            are infrastructure assets or 50% of its gross income or net profits
            are derived, directly or indirectly, from the ownership,
            management, construction, operation, utilization or financing of
            infrastructure assets.

            Infrastructure assets are physical assets, structures and networks
            that provide necessary services and operations to society. Examples
            of infrastructure assets include transportation assets (e.g., toll
            roads, bridges, tunnels, parking facilities, railroads, rapid
            transit links, airports, refueling facilities and seaports),
            utility assets (e.g., electric transmission and distribution lines,
            power generation facilities, gas and water distribution facilities,
            sewage treatment plants, broadcast and wireless towers, and cable
            and satellite networks) and social assets (e.g., courthouses,
            hospitals, schools, correctional facilities, stadiums and
            subsidized housing). The fund focuses on investment in companies
            with a direct investment in infrastructure assets and deemphasizes
            investment in companies that operate or utilize infrastructure
            assets in their business (e.g., electric utilities, airlines) or
            companies with indirect exposure to infrastructure investment
            (e.g., suppliers of construction materials).

            The fund may invest in common, convertible and preferred stock,
            rights or warrants to purchase common stock, debt securities and
            listed limited partnership interests. Under normal circumstances,
            the majority of the fund's assets are


4 | DWS RREEF Global Infrastructure Fund
<PAGE>

            invested in securities of issuers organized or located outside the
            US or doing a substantial amount of business outside the US. The
            fund allocates its assets among various regions and countries,
            including exposure to emerging market countries.

            The fund may also invest in unlisted securities, provided that the
            portfolio managers expect such securities to be listed on a
            recognized public stock exchange or traded over the counter within
            six months from the time of investment. In addition, while the fund
            does not currently plan to hedge international currency risk, the
            fund may engage in foreign currency transactions, including foreign
            currency forward contracts, options, swaps and other similar
            transactions in connection with investments in securities of non-US
            companies.

            The portfolio managers utilize the insights of an in-house
            infrastructure industry group, which provides commentary on the
            political, regulatory, demographic and other salient
            characteristics of the countries and regions in which the fund
            invests. In selecting securities for the fund's portfolio, the
            portfolio managers incorporate both "top-down" and "bottom-up"
            investment insights and analysis.

            "TOP-DOWN" RESEARCH. The portfolio managers analyze various
            factors, including infrastructure market dynamics (e.g., supply/
            demand conditions), the economic environment (e.g., interest rates,
            inflation and economic growth), expected capital flow dynamics and
            exchange rate conditions. The portfolio managers combine this
            "top-down" analysis with "bottom-up" analysis at the company level
            where individual companies are evaluated.

            "BOTTOM-UP" RESEARCH. The portfolio managers analyze
            characteristics and investment prospects of a particular security
            relative to others in its local market, to actively manage the
            fund's exposure to individual securities within each region.
            Disciplined valuation analysis performed in each region drives this
            decision-making process, guiding the portfolio managers to invest
            in securities that they believe can provide superior returns over
            the long-term, and to sell those that they believe no longer
            represent the strongest prospects, relative to other opportunities.
            The focus of the fund's security selection strategy is to invest in
            securities with the potential for attractive total return,
            typically through a combination of


                                       DWS RREEF Global Infrastructure Fund  | 5
<PAGE>

            price appreciation and dividend income. It is expected that the
            majority of returns from the fund will be generated by
            security-specific investment decisions, which are the
            responsibility of portfolio managers located in the respective
            geographical regions.

            OTHER INVESTMENTS. The fund is permitted, but not required, to use
            various types of derivatives (contracts whose value is based on,
            for example, indices, currencies or securities). Derivatives may be
            used for hedging and for risk management or for non-hedging
            purposes to seek to enhance potential gains. The fund may use
            derivatives in circumstances where portfolio management believes
            they offer an economical means of gaining exposure to a particular
            asset class or to keep cash on hand to meet shareholder redemptions
            or other needs while maintaining exposure to the market.

            SECURITIES LENDING. The fund may lend its investment securities in
            an amount up to 33 1/3% of its total assets to approved
            institutional borrowers who need to borrow securities in order to
            complete certain transactions.


            THE MAIN RISKS OF INVESTING IN THE FUND

            There are several risk factors that could hurt the fund's
            performance, cause you to lose money or cause the fund's
            performance to trail that of other investments.

            STOCK MARKET RISK. An important factor with this fund is how stock
            markets perform - in this case US and foreign stock markets. When
            US and foreign stock prices fall, you should expect the value of
            your investment to fall as well. Compared to large company stocks,
            small company stocks tend to be more volatile, in part because
            these companies tend to be less established and the valuation of
            their stocks often depends on future expectations. Because a stock
            represents ownership in its issuer, stock prices can be hurt by
            poor management, shrinking product demand and other business risks.
            These may affect single companies as well as groups of companies.
            In addition, movements in financial markets may adversely affect a
            stock's price, regardless of how well the company performs. The
            market as a whole may not favor the types of investments the fund
            makes and the fund may not be able to get attractive prices for
            them.


6 | DWS RREEF Global Infrastructure Fund
<PAGE>

            SECURITY SELECTION RISK. A risk that pervades all investing is the
            risk that the securities in the fund's portfolio may decline in
            value.

            FOREIGN INVESTMENT RISK. Foreign investments involve certain
            special risks, including:

            -  POLITICAL RISK. Some foreign governments have limited the
               outflow of profits to investors abroad, imposed restrictions on
               the exchange or export of foreign currency, extended diplomatic
               disputes to include trade and financial relations, seized
               foreign investment and imposed higher taxes.

            -  INFORMATION RISK. Companies based in foreign markets are usually
               not subject to accounting, auditing and financial reporting
               standards and practices as stringent as those in the US.
               Therefore, their financial reports may present an incomplete,
               untimely or misleading picture of a company, as compared to the
               financial reports required in the US.

            -  LIQUIDITY RISK. Investments that trade less can be more
               difficult or more costly to buy, or to sell, than more liquid or
               active investments. This liquidity risk is a factor of the
               trading volume of a particular investment, as well as the size
               and liquidity of the entire local market. On the whole, foreign
               exchanges are smaller and less liquid than US exchanges. This
               can make buying and selling certain investments more difficult
               and costly. Relatively small transactions in some instances can
               have a disproportionately large effect on the price and supply
               of securities. In certain situations, it may become virtually
               impossible to sell an investment in an orderly fashion at a
               price that approaches portfolio management's estimate of its
               value. For the same reason, it may at times be difficult to
               value the fund's foreign investments.

            -  REGULATORY RISK. There is generally less government regulation
               of foreign markets, companies and securities dealers than in the
               US.

            -  CURRENCY RISK. The fund invests in securities denominated in
               foreign currencies. Changes in exchange rates between foreign
               currencies and the US dollar may affect the US dollar value of
               foreign securities or the income or gain received on these
               securities.

                                       DWS RREEF Global Infrastructure Fund  | 7
<PAGE>

            -  LIMITED LEGAL RECOURSE RISK. Legal remedies for investors may be
            more limited than the legal remedies available in the US.

            -  TRADING PRACTICE RISK. Brokerage commissions and other fees are
               generally higher for foreign investments than for US
               investments. The procedures and rules governing foreign
               transactions and custody may also involve delays in payment,
               delivery or recovery of money or investments.

            -  TAXES. Foreign withholding and certain other taxes may reduce
               the amount of income available to distribute to shareholders of
               the fund. In addition, special US tax considerations may apply
               to the fund's foreign investments.

            EMERGING MARKET RISK. All of the risks of investing in foreign
            securities are increased in connection with investments in emerging
            markets securities. In addition, profound social changes and
            business practices that depart from norms in developed countries'
            economies have hindered the orderly growth of emerging economies
            and their markets in the past and have caused instability. High
            levels of debt tend to make emerging economies heavily reliant on
            foreign capital and vulnerable to capital flight. Countries in
            emerging markets are also more likely to experience high levels of
            inflation, deflation or currency devaluation, which could also hurt
            their economies and securities markets. For these and other
            reasons, investments in emerging markets are often considered
            speculative.

            Some governments exercise substantial influence over the private
            economic sector and the social and political uncertainties that
            exist for many developing countries is significant. In adverse
            social and political circumstances, governments have been involved
            in policies of expropriation, confiscatory taxation,
            nationalization, intervention in the securities markets and trade
            settlement, and imposition of foreign investment restrictions and
            exchange controls.

            CONCENTRATION RISK. The fund concentrates its investments in
            infrastructure-related companies. A fund with a concentrated
            portfolio is vulnerable to the risks associated with the industries
            in which it invests, and is subject to greater risks and market
            fluctuations than funds investing in a broad range of industries.
            Infrastructure-related securities may have


8 | DWS RREEF Global Infrastructure Fund
<PAGE>

            increased susceptibility to risks associated with general or local
            economic conditions and political developments, changes in
            regulations, environmental problems, casualty losses and changes in
            interest rates.

            NON-DIVERSIFICATION RISK. The fund is classified as non-diversified
            under the Investment Company Act of 1940, as amended. This means
            that the fund may invest in securities of relatively few issuers.
            Thus, the performance of one or a small number of portfolio
            holdings can affect overall performance more than if the fund
            invested in a larger number of issuers.

            IPO RISK. Securities purchased in initial public offerings (IPOs)
            may be very volatile, rising and falling rapidly, often based,
            among other reasons, on investor perceptions rather than on
            economic reasons. Additionally, investments in IPOs may magnify the
            fund's performance if it has a small asset base. The fund is less
            likely to experience a similar impact on its performance as its
            assets grow because it is unlikely that the fund will be able to
            obtain proportionately larger IPO allocations.

            SMALL COMPANY CAPITALIZATION RISK. Small company stocks tend to
            experience steeper price fluctuations than the stocks of larger
            companies. A shortage of reliable information can also pose added
            risk. Industry-wide reversals may have a greater impact on small
            companies, since they lack a large company's financial resources.
            Small company stocks are typically less liquid than large company
            stocks. Accordingly, it may be harder to find a buyer for a small
            company's shares.

            CREDIT RISK. A fund purchasing bonds faces the risk that the
            creditworthiness of the issuer may decline, causing the value of
            the bonds to decline. In addition, an issuer may not be able to
            make timely payments on the interest and principal on the bonds it
            has issued. In some cases, bonds may decline in credit quality or
            go into default.

            INTEREST RATE RISK. Generally, fixed income securities will
            decrease in value when interest rates rise. The longer the
            effective maturity of the fund's securities, the more sensitive the
            fund will be to interest rate changes. (As a general rule, a 1%
            rise in interest rates means a 1% fall in value for every year of
            duration.) As interest rates decline, the issuers of securities
            held by the fund may prepay principal earlier than scheduled,
            forcing the fund to reinvest in lower-yielding securities and may
            reduce the fund's income. As interest rates


                                       DWS RREEF Global Infrastructure Fund  | 9
<PAGE>

            increase, slower than expected principal payments may extend the
            average life of fixed income securities. This will have the effect
            of locking in a below-market interest rate, increasing the fund's
            duration and reducing the value of such a security.

            PRICING RISK. At times, market conditions may make it difficult to
            value some investments, and the fund may use certain valuation
            methodologies for some of its investments, such as fair value
            pricing. Given the subjective nature of such valuation
            methodologies, it is possible that the value determined for an
            investment may be different than the value realized upon such
            investment's sale. If the fund has valued its securities too
            highly, you may pay too much for fund shares when you buy into the
            fund. If the fund has underestimated the price of its securities,
            you may not receive the full market value when you sell your fund
            shares.

            SECURITIES LENDING RISK. Any loss in the market price of securities
            loaned by the fund that occurs during the term of the loan would be
            borne by the fund and would adversely affect the fund's
            performance. Also, there may be delays in recovery of securities
            loaned or even a loss of rights in the collateral should the
            borrower of the securities fail financially while the loan is
            outstanding. However, loans will be made only to borrowers selected
            by the fund's delegate after a review of relevant facts and
            circumstances, including the creditworthiness of the borrower.

            DERIVATIVES RISK. Risks associated with derivatives include the
            risk that the derivative is not well correlated with the security,
            index or currency to which it relates; the risk that derivatives
            may result in losses or missed opportunities; the risk that the
            fund will be unable to sell the derivative because of an illiquid
            secondary market; the risk that a counterparty is unwilling or
            unable to meet its obligation; and the risk that the derivative
            transaction could expose the fund to the effects of leverage, which
            could increase the fund's exposure to the market and magnify
            potential losses. There is no guarantee that derivatives, to the
            extent employed, will have the intended effect, and their use could
            cause lower returns or even losses to the fund. The use of
            derivatives by the fund to hedge risk may reduce the opportunity
            for gain by offsetting the positive effect of favorable price
            movements.

            Another factor that could affect performance is:

10 | DWS RREEF Global Infrastructure Fund
<PAGE>

            -  portfolio management could be wrong in the analysis of
               industries, companies, economic trends, the relative
               attractiveness of different securities or other matters.


            THE FUND'S PERFORMANCE HISTORY

            Since the fund is newly offered, past performance information
            is not available.


                                      DWS RREEF Global Infrastructure Fund  | 11
<PAGE>

HOW MUCH INVESTORS PAY


This table describes the fees and expenses that you may pay if you buy and hold
fund shares. This information doesn't include any fees that may be charged by
your financial advisor.


<TABLE>
<CAPTION>
FEE TABLE                                           CLASS A             CLASS C
<S>                                         <C>                       <C>
 SHAREHOLDER FEES, paid directly from your investment
____________________________________________________________________________________
 Maximum Sales Charge (Load) Imposed
 on Purchases (as % of offering price)                5.75% 1             None
 Maximum Contingent Deferred Sales
 Charge (Load) (as % of redemption
 proceeds)                                            None 2              1.00%
 Redemption/Exchange fee, on shares
 owned less than 15 days (as % of
 redemption proceeds) 3                              2.00                 2.00

 ANNUAL OPERATING EXPENSES, deducted from fund assets
____________________________________________________________________________________
 Management Fee                                          %                   %
 Distribution/Service (12b-1) Fees                   0.25                 1.00
 Other Expenses 4

 TOTAL ANNUAL OPERATING EXPENSES
________________________________________            ____________         _____
 Less Expense Waiver/Reimbursement

 NET ANNUAL OPERATING EXPENSES 5
</TABLE>


1  Because of rounding in the calculation of the offering price, the actual
   maximum front-end sales charge paid by an investor may be higher than the
   percentage noted (see "Choosing a Share Class - Class A shares").

2  The redemption of shares purchased at net asset value under the Large Order
   NAV Purchase Privilege (see "Choosing a Share Class - Class A shares") may
   be subject to a contingent deferred sales charge of 1.00% if redeemed
   within 12 months of purchase and 0.50% if redeemed within the following six
   months.

3  This fee is charged on all applicable redemptions or exchanges. Please see
   "Policies You Should Know About - Policies about transactions" for further
   information.

4  "Other Expenses" are based on estimated amounts for the current fiscal
   year, including ___% of organizational and offering expenses expected to be
   incurred in the first fiscal year only. Actual expenses may be different.
   "Other Expenses" also include an administrative services fee paid to the
   Advisor in the amount of 0.10%.

5  Through ______ __, 20__08, the advisor has contractually agreed to waive
   all or a portion of its management fee and reimburse or pay operating
   expenses of the fund to the extent necessary to maintain the fund's total
   operating expenses at ___% and ___% for Class A and Class C shares,
   respectively, excluding certain expenses such as extraordinary expenses,
   taxes, brokerage, interest, and organizational and offering expenses
   (limited to __%) on net assets.

12 | DWS RREEF Global Infrastructure Fund
<PAGE>

Based on the costs above (including one year of capped expenses in each
period), this example helps you compare the expenses of each share class to
those of other mutual funds. This example assumes the expenses above remain the
same. It also assumes that you invested $10,000, earned 5% annual returns and
reinvested all dividends and distributions. This is only an example; actual
expenses will be different.


<TABLE>
<CAPTION>
EXAMPLE               1 YEAR      3 YEARS
<S>                  <C>         <C>

EXPENSES, assuming you sold your shares at
the end of each period.
_____________________________________________
 Class A shares      $           $
 Class C shares

 EXPENSES, assuming you kept your shares.
_____________________________________________
 Class A shares      $           $
 Class C shares
</TABLE>



                                      DWS RREEF Global Infrastructure Fund  | 13
<PAGE>

OTHER POLICIES AND RISKS

           While the previous pages describe the main points of the fund's
           strategy and risks, there are a few other issues to know about:

           -  Although major changes tend to be infrequent, the fund's Board
              could change the fund's investment objective without seeking
              shareholder approval.

           -  As a temporary defensive measure, the fund could shift up to 100%
              of assets into investments such as money market securities. This
              could prevent losses, but, while engaged in a temporary defensive
              position, the fund will not be pursuing its investment objective.
              However, portfolio management may choose not to use these
              strategies for various reasons, even in volatile market
              conditions.


           For more information

           This prospectus doesn't tell you about every policy or risk of
           investing in the fund.

           If you want more information on the fund's allowable securities and
           investment practices and the characteristics and risks of each one,
           you may want to request a copy of the Statement of Additional
           Information (the back cover tells you how to do this).

           Keep in mind that there is no assurance that the fund will achieve
           its objective.

           A complete list of the fund's portfolio holdings is posted as of the
           month-end on www.dws-scudder.com (the Web site does not form a part
           of this prospectus) on or after the last day of the following month.
           This posted information generally remains accessible at least until
           the date on which the fund files its Form N-CSR or N-Q with the
           Securities and Exchange Commission for the period that includes the
           date as of which the posted information is current. In addition, the
           fund's top ten equity holdings and other fund information is posted
           on www.dws-scudder.com as of the calendar quarter-end on or after
           the 15th day following quarter-end. The fund's Statement of
           Additional Information includes a description of the fund's policies
           and procedures with respect to the disclosure of the fund's
           portfolio holdings.


14 | Other Policies and Risks
<PAGE>

WHO MANAGES AND OVERSEES THE FUND


           The investment advisor

           Deutsche Investment Management Americas Inc. ("DIMA" or the
           "Advisor"), with headquarters at 345 Park Avenue, New York, NY
           10154, is the investment advisor for the fund. Under the oversight
           of the Board, the Advisor, or the subadvisor, makes investment
           decisions, buys and sells securities for the fund and conducts
           research that leads to these purchase and sale decisions. The
           Advisor provides a full range of global investment advisory services
           to institutional and retail clients.

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

           Deutsche Asset Management is a global asset management organization
           that offers a wide range of investing expertise and resources,
           including hundreds of portfolio managers and analysts and an office
           network that reaches the world's major investment centers. This
           well-resourced global investment platform brings together a wide
           variety of experience and investment insight across industries,
           regions, asset classes and investing styles.

           The Advisor 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.

           MANAGEMENT FEE. The Advisor will receive a management fee from the
           fund. Below is the fee rate to be paid by the fund, which is based
           upon the fund's average daily net assets:

           The fund pays the Advisor under the investment management agreement
           a fee, calculated daily and paid monthly, at the annual rate of
           ____% of the fund's average daily net assets.

           The fund's shareholder report for the fiscal period ended June 30,
           2008 will contain a discussion regarding the basis for the Board's
           approval of the fund's investment management agreement and
           subadvisory agreement (see "Shareholder reports" on the back cover).



                                         Who Manages and Oversees the Fund  | 15
<PAGE>

           Under a separate administrative services agreement between the fund
           and the Advisor, the fund pays the Advisor for providing most of the
           fund's administrative services.


           Subadvisor for DWS RREEF Global Infrastructure Fund

           RREEF America LLC ("RREEF"), an indirect, wholly owned subsidiary of
           Deutsche Bank AG, is the subadvisor for DWS RREEF Global
           Infrastructure Fund. RREEF, a registered investment advisor, is
           located at 875 N. Michigan Avenue, Chicago, Illinois 60611. DIMA
           pays a fee to RREEF for acting as subadvisor to DWS RREEF Global
           Infrastructure Fund.

           RREEF makes the investment decisions, buys and sells securities for
           DWS RREEF Global Infrastructure Fund and conducts research that
           leads to these purchase and sale decisions.

           RREEF has provided real estate investment management services to
           institutional investors since 1975 across a diversified portfolio of
           industrial properties, office buildings, residential apartments and
           shopping centers. RREEF has also been an investment advisor of real
           estate securities since 1993.


           The sub-subadvisors

           Pursuant to investment subadvisory agreements between RREEF and
           RREEF Global Advisers Limited, Deutsche Asset Management (Hong Kong)
           Limited and Deutsche Investments Australia Limited (the
           "sub-subadvisors"), these entities act as sub-subadvisors to the
           fund. The sub-subadvisors are indirect, wholly owned subsidiaries of
           Deutsche Bank AG. As sub-subadvisors, under the supervision of the
           Board of Trustees, DIMA and RREEF, the sub-subadvisors manage the
           fund's investments in specific foreign markets. RREEF allocates, and
           reallocates as it deems appropriate, the fund's assets among the
           sub-subadvisors.

           RREEF Global Advisers Limited, Winchester House, 1 Great Winchester
           Street, London, United Kingdom, EC2N 2DB, manages stock selection
           decisions for the European portion of the fund's portfolio. Deutsche
           Asset Management (Hong Kong) Limited, 55/F Cheung Kong Centre, 2
           Queen's Road Central, Hong Kong, China, and Deutsche Investments
           Australia Limited, Level 21, 83 Clarence Street, Sydney, Australia,
           NSW, 2000, manage the stock selection decisions for the Asian and
           Australian portions of the fund's portfolio, respectively.


16 | Who Manages and Oversees the Fund
<PAGE>

Portfolio management

The fund is managed by a team of investment professionals who collaborate to
develop and implement the fund's investment strategy. Each portfolio manager on
the team has authority over all aspects of the fund's investment portfolio,
including, but not limited to, purchases and sales of individual securities,
portfolio construction techniques, portfolio risk assessment and the management
of daily cash flows in accordance with portfolio holdings.

The following people handle the day-to-day management of the fund.

Daniel Ekins
Managing Director of Deutsche Asset Management and Portfolio Manager of the
fund.
- Joined RREEF in 1997, Deutsche Asset Management in 2002 and the fund in 2008.
- Over 22 years of investment industry experience.
- BS, University of South Australia.

Francis Greywitt
Vice President of Deutsche Asset Management and Portfolio Manager of the fund.
- Joined RREEF and Deutsche Asset Management in 2005, and the fund in 2008.
- Prior to that, REIT analyst with KeyBanc Capital Markets covering the office
  sector.
- Over [eight] years of investment industry experience.
- BBA, St. Bonaventure University.

John Hammond
Managing Director of Deutsche Asset Management and Portfolio Manager of the
fund.
- Joined RREEF and Deutsche Asset Management in 2004, and the fund in 2008.
- Prior to that, Director at Schroder Property Investment Management; Director
  at Henderson Global Investors.
- Over 15 years of investment industry experience.

- BSc, University of Reading, UK.

John F. Robertson, CFA
Managing Director of Deutsche Asset Management, Partner of RREEF and Lead
Portfolio Manager of the fund.
- Joined RREEF in 1997, Deutsche Asset Management in 2002 and the fund in 2008.
- Over 17 years of investment industry experience.
- BA, Wabash College; MBA, Indiana University.

John W. Vojticek
Managing Director of Deutsche Asset Management, Partner of RREEF and Portfolio
Manager of the fund.
- Joined RREEF and Deutsche Asset Management in 2004 and the fund in 2008.
- Prior to that, Principal at KG Redding and Associates, March 2004-September
  2004.
- Prior to that, Managing Director of RREEF from 1996-March 2004 and Deutsche
  Asset Management from 2002-March 2004.
- Over 12 years of investment industry experience.
- BS, University of Southern California.

The fund's Statement of Additional Information provides additional information
about a portfolio manager's investments in the fund, a description of the
portfolio management compensation structure and information regarding other
accounts managed.


                                         Who Manages and Oversees the Fund  | 17
<PAGE>

FINANCIAL HIGHLIGHTS

Since the fund is newly offered, financial highlights information is not
available.

18 | Who Manages and Oversees the Fund
<PAGE>

HOW TO INVEST IN THE FUND

Offered in this prospectus are share classes noted on the cover of the
prospectus. Each class has its own fees and expenses, offering you a choice of
cost structures. The fund may offer other classes of shares in a separate
prospectus. These shares are intended for investors seeking the advice and
assistance of a financial advisor, who will typically receive compensation for
those services.

THE FOLLOWING PAGES TELL YOU HOW TO INVEST IN THE FUND AND WHAT TO EXPECT AS A
SHAREHOLDER. The following pages also tell you about many of the services,
choices and benefits of being a shareholder. You'll also find information on
how to check the status of your account using the method that's most convenient
for you.

If you're investing directly with DWS Scudder, all of this information applies
to you. If you're investing through a "third party provider" - for example, a
workplace retirement plan, financial supermarket or financial advisor - your
provider may have its own policies or instructions and you should follow those.


You can find out more about the topics covered here by speaking with your
FINANCIAL ADVISOR OR A REPRESENTATIVE OF YOUR WORKPLACE RETIREMENT PLAN OR
OTHER INVESTMENT PROVIDER.

Before you invest, take a moment to look over the characteristics of each share
class, so that you can be sure to choose the class that's right for you. YOU
MAY WANT TO ASK YOUR FINANCIAL ADVISOR TO HELP YOU WITH THIS DECISION.
<PAGE>

CHOOSING A SHARE CLASS

We describe each share class in detail on the following pages. But first, you
may want to look at the table below, which gives you a brief description and
comparison of the main features of each class.


<TABLE>
<CAPTION>
 CLASSES AND FEATURES                         POINTS TO HELP YOU COMPARE
<S>                                          <C>
 CLASS A
 -  Sales charge of up to 5.75% charged       -  Some investors may be able to reduce
    when you buy shares                          or eliminate their sales charge; see
                                                 "Class A shares"
 -  In most cases, no charge when you
    sell shares                                -  Total annual expenses are lower than
                                                   those for Class C
 -  Up to 0.25% annual shareholder
    servicing fee

CLASS C
 -  No sales charge when you buy shares       -  Unlike Class A shares, Class C shares
                                                 do not have a sales charge when
 -  Deferred sales charge of 1.00%,              buying shares, but have higher annual
    charged when you sell shares you             expenses than those for Class A
    bought within the last year                  shares and a one year deferred sales
                                                 charge
 -  0.75% annual distribution fee and up
    to 0.25% annual shareholder servicing
    fee
</TABLE>


Your financial advisor will typically be paid a fee when you buy shares and may
receive different levels of compensation depending upon which class of shares
you buy. The fund may pay financial advisors or other intermediaries
compensation for the services they provide to their clients. This compensation
may vary depending on the class share and fund you buy. Your financial advisor
may also receive compensation from the Advisor and/or its affiliates. Please
see "Financial intermediary support payments" for more information.



20 | Choosing a Share Class
<PAGE>

           Class A shares

           Class A shares may make sense for long-term investors, especially
           those who are eligible for a reduced or eliminated sales charge.

           Class A shares have a 12b-1 plan, under which a shareholder
           servicing fee of up to 0.25% is deducted from class assets each
           year. Because the shareholder servicing fee is continuous in nature,
           it may, over time, increase the cost of your investment and may cost
           you more than paying other types of sales charges.

           Class A shares have an up-front sales charge that varies with the
           amount you invest:


<TABLE>
<CAPTION>
                              FRONT-END SALES          FRONT-END SALES
                                CHARGE AS %          CHARGE AS % OF YOUR
YOUR INVESTMENT            OF OFFERING PRICE 1,2        NET INVESTMENT 2

<S>                       <C>                       <C>
  Up to $50,000           5.75%                     6.10%
$    50,000-$99,999       4.50                      4.71
$  100,000-$249,999       3.50                      3.63
$  250,000-$499,999       2.60                      2.67
$  500,000-$999,999       2.00                      2.04
  $1 million or more            see below                see below
</TABLE>


           1   The offering price includes the sales charge.

           2   Because of rounding in the calculation of the offering price,
               the actual front-end sales charge paid by an investor may be
               higher or lower than the percentages noted.


           YOU MAY BE ABLE TO LOWER YOUR CLASS A SALES CHARGE IF:

           -  you plan to invest at least $50,000 in Class A shares (including
              Class A shares in other retail DWS funds) over the next 24 months
              ("Letter of Intent")

           -  the amount of Class A shares you already own (including Class A
              shares in other retail DWS funds) plus the amount you're
              investing now in Class A shares is at least $50,000 ("Cumulative
              Discount")

           -  you are investing a total of $50,000 or more in Class A shares of
              several retail DWS funds on the same day ("Combined Purchases")

                                                    Choosing a Share Class  | 21
<PAGE>

           The point of these three features is to let you count investments
           made at other times or in certain other funds for purposes of
           calculating your present sales charge. Any time you can use the
           privileges to "move" your investment into a lower sales charge
           category, it's generally beneficial for you to do so.

           For purposes of determining whether you are eligible for a reduced
           Class A sales charge, you and your immediate family (your spouse or
           life partner and your children or stepchildren age 21 or younger)
           may aggregate your investments in the DWS family of funds. This
           includes, for example, investments held in a retirement account, an
           employee benefit plan or at a financial advisor other than the one
           handling your current purchase. These combined investments will be
           valued at their current offering price to determine whether your
           current investment qualifies for a reduced sales charge.

           To receive a reduction in your Class A initial sales charge, you
           must let your financial advisor or Shareholder Services know at the
           time you purchase shares that you qualify for such a reduction. You
           may be asked by your financial advisor or Shareholder Services to
           provide account statements or other information regarding related
           accounts of you or your immediate family in order to verify your
           eligibility for a reduced sales charge.

           For more information about sales charge discounts, please visit
           www.dws-scudder.com (click on the link entitled "Fund Sales Charge
           and Breakpoint Schedule"), consult with your financial advisor or
           refer to the section entitled "Purchase or Redemption of Shares" in
           the fund's Statement of Additional Information.

           IN CERTAIN CIRCUMSTANCES, YOU MAY BE ABLE TO BUY CLASS A SHARES
           WITHOUT A SALES CHARGE. For example, the sales charge will be waived
           if you are reinvesting dividends or distributions or if you are
           exchanging an investment in Class A shares of another fund in the
           DWS family of funds for an investment in Class A shares of the fund.
           In addition, a sales charge waiver may apply to transactions by
           certain retirement plans and certain other entities or persons
           (e.g., affiliated persons of Deutsche Asset Management or the DWS
           funds) and with respect to certain types of investments (e.g., an
           investment advisory or agency commission program under which you pay
           a fee to an investment advisor or other firm for portfolio
           management or brokerage services).


22 | Choosing a Share Class
<PAGE>

           Details regarding the types of investment programs and categories of
           investors eligible for a sales charge waiver are provided in the
           fund's Statement of Additional Information.

           There are a number of additional provisions that apply in order to
           be eligible for a sales charge waiver. The fund may waive the sales
           charge for investors in other situations as well. Your financial
           advisor or Shareholder Services can answer your questions and help
           you determine if you are eligible.

           IF YOU'RE INVESTING $1 MILLION OR MORE, either as a lump sum or
           through one of the sales charge reduction features described above,
           you may be eligible to buy Class A shares without a sales charge
           ("Large Order NAV Purchase Privilege"). However, you may be charged
           a contingent deferred sales charge (CDSC) of 1.00% on any shares you
           sell within 12 months of owning them and a similar charge of 0.50%
           on shares you sell within the following six months. This CDSC is
           waived under certain circumstances (see "Policies You Should Know
           About"). Your financial advisor or Shareholder Services can answer
           your questions and help you determine if you're eligible.


                                                    Choosing a Share Class  | 23
<PAGE>

           Class C shares

           Class C shares may appeal to investors who plan to sell some or all
           of their shares within six years of buying them or who aren't
           certain of their investment time horizon.

           With Class C shares, you pay no up-front sales charge to the fund.
           Class C shares have a 12b-1 plan, under which a distribution fee of
           0.75% and a shareholder servicing fee of up to 0.25% are deducted
           from class assets each year. Because of these fees, the annual
           expenses for Class C shares are higher than those for Class A shares
           (and the performance of Class C shares is correspondingly lower than
           that of Class A shares).

           Class C shares have a CDSC, but only on shares you sell within one
           year of buying them:


<TABLE>
<CAPTION>
   YEAR AFTER YOU BOUGHT SHARES        CDSC ON SHARES YOU SELL
<S>                                   <C>
  First year                          1.00%
  Second year and later                         None
</TABLE>


           This CDSC is waived under certain circumstances (see "Policies You
           Should Know About"). Your financial advisor or Shareholder Services
           can answer your questions and help you determine if you're eligible.


           While Class C shares do not have an up-front sales charge, their
           higher annual expenses mean that, over the years, you could end up
           paying more than the equivalent of the maximum allowable up-front
           sales charge.

           Orders to purchase Class C shares of $500,000 or more will be
           declined with the exception of orders received from financial
           representatives acting for clients whose shares are held in an
           omnibus account and certain employer-sponsored employee benefit
           plans.


24 | Choosing a Share Class
<PAGE>

How to BUY Class A and C Shares



<TABLE>
<CAPTION>
 FIRST INVESTMENT                                ADDITIONAL INVESTMENTS
<S>                                             <C>
 $1,000 or more for most accounts                $50 or more for regular accounts and
 $500 or more for IRAs                          IRAs
 $500 or more for an account with an            $50 or more for an account with an
 Automatic Investment Plan                      Automatic Investment Plan

 THROUGH A FINANCIAL ADVISOR
 -  To obtain an application, contact your      -  Contact your advisor using the
    advisor                                       method that's most convenient for you

 BY MAIL OR EXPRESS MAIL (SEE BELOW)
 -  Fill out and sign an application            -  Send a check made payable to "DWS
                                                Scudder" and an investment slip to us
 -  Send it to us at the appropriate
  address, along with an investment             -  If you don't have an investment slip,
  check made payable to "DWS                    simply include a letter with your
  Scudder"                                      name, account number, the full name
                                                of the fund and the share class and
                                                your investment instructions

 BY WIRE
 -  Call (800) 621-1048 for instructions        -  Call (800) 621-1048 for instructions

 BY PHONE
 Not available                                  -  Call (800) 621-1048 for instructions

 WITH AN AUTOMATIC INVESTMENT PLAN
 -  Fill in the information on our              -  To set up regular investments from a
  application including a check for the         bank checking account call (800) 621-
  initial investment and a voided check         1048 ($50 minimum)

 USING QuickBuy
 Not available                                  -  Call (800) 621-1048 to make sure
                                                QuickBuy is set up on your account; if
                                                it is, you can request a transfer from
                                                your bank account of any amount
                                                between $50 and $250,000

 ON THE INTERNET
 Not available                                  -  Call (800) 621-1048 to ensure you have
                                                electronic services
                                                -  Register at www.dws-scudder.com or
                                                log in if already registered
                                                -  Follow the instructions for buying
                                                shares with money from your bank
                                                account
</TABLE>


--------------------------------------------------------------------------------
REGULAR MAIL:

First Investment: DWS Scudder, PO Box 219356, Kansas City, MO 64121-9356
Additional Investments: DWS Scudder, PO Box 219154, Kansas City, MO 64121-9154

EXPRESS, REGISTERED OR CERTIFIED MAIL:
DWS Scudder, 210 West 10th Street, Kansas City, MO 64105-1614

                                           How to Buy Class A and C Shares  | 25
<PAGE>

How to EXCHANGE or SELL Class A and C Shares

<TABLE>
<CAPTION>
 EXCHANGING INTO ANOTHER FUND                    SELLING SHARES
<S>                                             <C>
                                                 Some transactions, including most for
 -  Exchanges into existing accounts:            over $100,000, can only be ordered in
    $50 minimum per fund                         writing with a signature guarantee;
                                               please see "Signature Guarantee"
 -  Exchanges into new accounts:
    $1,000 minimum per fund for most
    accounts
    $500 minimum for IRAs

 THROUGH A FINANCIAL ADVISOR
 -  Contact your advisor using the              -  Contact your advisor by the method
    method that's most convenient for you         that's most convenient for you

 BY PHONE                                        BY PHONE OR WIRE
 -  Call (800) 621-1048 for instructions        -  Call (800) 621-1048 for instructions

 BY MAIL OR EXPRESS MAIL
 (see previous page for address)
 Write a letter that includes:                  Write a letter that includes:
 -  the fund, class and account number          -  the fund, class and account number
  you're exchanging out of                      from which you want to sell shares
 -  the dollar amount or number of shares       -  the dollar amount or number of shares
  you want to exchange                          you want to sell
 -  the name and class of the fund you          -  your name(s), signature(s) and
  want to exchange into                         address, as they appear on your
                                                account
 -  your name(s), signature(s) and
  address, as they appear on your               -  a daytime telephone number
  account
 -  a daytime telephone number

 WITH AN AUTOMATIC EXCHANGE PLAN                 WITH AN AUTOMATIC WITHDRAWAL PLAN
 -  To set up regular exchanges from a          -  Call (800) 621-1048 (minimum $50)
  fund account, call (800) 621-1048
 USING QuickSell
 Not available                                  -  Call (800) 621-1048 to make sure
                                                QuickSell is set up on your account; if
                                                it is, you can request a transfer to your
                                                bank account of any amount between
                                                $50 and $250,000

 ON THE INTERNET
 -  Register at www.dws-scudder.com or          -  Register at www.dws-scudder.com or
  log in if already registered                  log in if already registered
 -  Follow the instructions for making on-      -  Follow the instructions for making on-
  line exchanges                                line redemptions
</TABLE>


--------------------------------------------------------------------------------

<TABLE>
<S>               <C>
TO REACH US:      WEB SITE: www.dws-scudder.com
                  TELEPHONE REPRESENTATIVE: (800) 621-1048, M-F, 9 a.m. - 6 p.m. ET
                  TDD LINE: (800) 972-3006, M-F, 9 a.m. - 6 p.m. ET
</TABLE>



26 | How to Exchange or Sell Class A and C Shares
<PAGE>

           Financial intermediary support payments

           The Advisor, DWS Scudder Distributors, Inc. (the "Distributor")
           and/or their affiliates may pay additional compensation, out of
           their own assets and not as an additional charge to the fund, to
           selected affiliated and unaffiliated brokers, dealers, participating
           insurance companies or other financial intermediaries ("financial
           advisors") in connection with the sale and/or distribution of fund
           shares or the retention and/or servicing of fund investors and fund
           shares ("revenue sharing"). Such revenue sharing payments are in
           addition to any distribution or service fees payable under any Rule
           12b-1 or service plan of the fund, any record keeping/sub-transfer
           agency/networking fees payable by the fund (generally through the
           Distributor or an affiliate) and/or the Distributor to certain
           financial advisors for performing such services and any sales
           charge, commissions, non-cash compensation arrangements expressly
           permitted under applicable rules of the Financial Industry
           Regulatory Authority or other concessions described in the fee table
           or elsewhere in this prospectus or the Statement of Additional
           Information as payable to all financial advisors. For example, the
           Advisor, the Distributor and/or their affiliates may compensate
           financial advisors for providing the fund with "shelf space" or
           access to a third party platform or fund offering list or other
           marketing programs, including, without limitation, inclusion of the
           fund on preferred or recommended sales lists, mutual fund
           "supermarket" platforms and other formal sales programs; granting
           the Distributor access to the financial advisor's sales force;
           granting the Distributor access to the financial advisor's
           conferences and meetings; assistance in training and educating the
           financial advisor's personnel; and obtaining other forms of
           marketing support.

           The level of revenue sharing payments made to financial advisors may
           be a fixed fee or based upon one or more of the following factors:
           gross sales, current assets and/or number of accounts of the fund
           attributable to the financial advisor, the particular fund or fund
           type or other measures as agreed to by the Advisor, the Distributor
           and/or their affiliates and the financial advisors or any
           combination thereof. The amount of these revenue sharing payments is
           determined at the discretion of the Advisor, the Distributor and/or
           their affiliates from time to time, may be substantial, and may be
           different for different financial advisors based on, for example,
           the nature of the services provided by the financial advisor.


                              How to Exchange or Sell Class A and C Shares  | 27
<PAGE>

           The Advisor, the Distributor and/or their affiliates currently make
           revenue sharing payments from their own assets in connection with
           the sale and/or distribution of DWS Fund shares or the retention
           and/or servicing of investors and DWS Fund shares to financial
           advisors in amounts that generally range from .01% up to .50% of
           assets of the fund serviced and maintained by the financial advisor,
           .10% to .25% of sales of the fund attributable to the financial
           advisor, a flat fee of $12,500 up to $500,000, or any combination
           thereof. These amounts are subject to change at the discretion of
           the Advisor, the Distributor and/or their affiliates. Receipt of, or
           the prospect of receiving, this additional compensation may
           influence your financial advisor's recommendation of the fund or of
           any particular share class of the fund. You should review your
           financial advisor's compensation disclosure and/or talk to your
           financial advisor to obtain more information on how this
           compensation may have influenced your financial advisor's
           recommendation of the fund. Additional information regarding these
           revenue sharing payments is included in the fund's Statement of
           Additional Information, which is available to you on request at no
           charge (see the back cover of this prospectus for more information
           on how to request a copy of the Statement of Additional
           Information).

           The Advisor, the Distributor and/or their affiliates may also make
           such revenue sharing payments to financial advisors under the terms
           discussed above in connection with the distribution of both DWS
           funds and non-DWS funds by financial advisors to retirement plans
           that obtain record keeping services from ADP, Inc. on the DWS
           Scudder branded retirement plan platform (the "Platform") with the
           level of revenue sharing payments being based upon sales of both the
           DWS funds and the non-DWS funds by the financial advisor on the
           Platform or current assets of both the DWS funds and the non-DWS
           funds serviced and maintained by the financial advisor on the
           Platform.

           It is likely that broker-dealers that execute portfolio transactions
           for the fund will include firms that also sell shares of the DWS
           funds to their customers. However, the Advisor will not consider
           sales of DWS fund shares as a factor in the selection of
           broker-dealers to execute portfolio transactions for the DWS funds.
           Accordingly, the Advisor has implemented policies and procedures
           reasonably designed to prevent its traders from considering sales of
           DWS fund shares as a factor in the selection of


28 | How to Exchange or Sell Class A and C Shares
<PAGE>

           broker-dealers to execute portfolio transactions for the fund. In
           addition, the Advisor, the Distributor and/or their affiliates will
           not use fund brokerage to pay for their obligation to provide
           additional compensation to financial advisors as described above.


POLICIES YOU SHOULD KNOW ABOUT

           Along with the information on the previous pages, the policies below
           may affect you as a shareholder. Some of this information, such as
           the section on distributions and taxes, applies to all investors,
           including those investing through a financial advisor.

           If you are investing through a financial advisor or through a
           retirement plan, check the materials you received from them about
           how to buy and sell shares because particular financial advisors or
           other intermediaries may adopt policies, procedures or limitations
           that are separate from those described by the fund. Please note that
           a financial advisor may charge fees separate from those charged by
           the fund and may be compensated by the fund.

           Keep in mind that the information in this prospectus applies only to
           the shares offered herein. Other share classes are described in
           separate prospectuses and have different fees, requirements and
           services.

           In order to reduce the amount of mail you receive and to help reduce
           expenses, we generally send a single copy of any shareholder report
           and prospectus to each household. If you do not want the mailing of
           these documents to be combined with those for other members of your
           household, please contact your financial advisor or call (800)
           621-1048.


           Policies about transactions

           THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
           is open. The fund calculates its share price for each class every
           business day, as of the close of regular trading on the New York
           Stock Exchange (typically 4:00 p.m. Eastern time, but sometimes
           earlier, as in the case of scheduled half-day trading or unscheduled
           suspensions of trading). You can place an order to buy or sell
           shares at any time.


                                            Policies You Should Know About  | 29
<PAGE>

           To help the government fight the funding of terrorism and money
           laundering activities, federal law requires all financial
           institutions to obtain, verify and record information that
           identifies each person who opens an account. What this means to you:
           When you open an account, we will ask for your name, address, date
           of birth and other information that will allow us to identify you.
           Some or all of this information will be used to verify the identity
           of all persons opening an account.

           We might request additional information about you (which may include
           certain documents, such as articles of incorporation for companies)
           to help us verify your identity and, in some cases, the information
           and/or documents may be required to conduct the verification. The
           information and documents will be used solely to verify your
           identity.

           We will attempt to collect any missing required and requested
           information by contacting you or your financial advisor. If we are
           unable to obtain this information within the time frames established
           by the fund, then we may reject your application and order.

           The fund will not invest your purchase until all required and
           requested identification information has been provided and your
           application has been submitted in "good order." After we receive all
           the information, your application is deemed to be in good order and
           we accept your purchase, you will receive the net asset value per
           share next calculated, less any applicable sales charge.

           If we are unable to verify your identity within time frames
           established by the fund, after a reasonable effort to do so, you
           will receive written notification.

           With certain limited exceptions, only US residents may invest in the
           fund.

           Because orders placed through a financial advisor must be forwarded
           to the transfer agent before they can be processed, you'll need to
           allow extra time. Your financial advisor should be able to tell you
           approximately when your order will be processed. It is the
           responsibility of your financial advisor to forward your order to
           the transfer agent in a timely manner.

           INITIAL PURCHASE. The minimum initial investment for Class A and C
           shares is $1,000, except for investments on behalf of participants
           in certain fee-based and wrap programs offered through certain
           financial intermediaries approved by the Advisor,


30 | Policies You Should Know About
<PAGE>

           for which there is no minimum initial investment; and IRAs, for
           which the minimum initial investment is $500 per account. The
           minimum initial investment is $500 per account if you establish an
           automatic investment plan. Group retirement plans and certain other
           accounts have similar or lower minimum share balance requirements.

           SUB-MINIMUM BALANCES. The fund may close your account and send you
           the proceeds if your balance falls below $1,000 ($250 for retirement
           accounts and $500 for accounts with an Automatic Investment Plan
           funded with $50 or more per month in subsequent investments). We
           will give you 60 days' notice (90 days for retirement accounts) so
           you can either increase your balance or close your account (these
           policies don't apply to investors with $100,000 or more in DWS fund
           shares, investors in certain fee-based and wrap programs offered
           through certain financial intermediaries approved by the Advisor, or
           group retirement plans and certain other accounts having lower
           minimum share balance requirements).

           SUBSEQUENT INVESTMENTS. The minimum subsequent investment is $50.
           However, there is no minimum investment requirement for subsequent
           investments in Class A shares on behalf of participants in certain
           fee-based and wrap programs offered through certain financial
           intermediaries approved by the Advisor.

           MARKET TIMING POLICIES AND PROCEDURES. Short-term and excessive
           trading of fund shares may present risks to long-term shareholders,
           including potential dilution in the value of fund shares,
           interference with the efficient management of the fund's portfolio
           (including losses on the sale of investments), taxable gains to
           remaining shareholders and increased brokerage and administrative
           costs. These risks may be more pronounced if the fund invests in
           certain securities, such as those that trade in foreign markets, are
           illiquid or do not otherwise have "readily available market
           quotations." Certain investors may seek to employ short-term trading
           strategies aimed at exploiting variations in portfolio valuation
           that arise from the nature of the securities held by the fund (e.g.,
           "time zone arbitrage"). The fund discourages short-term and
           excessive trading and has adopted policies and procedures that are
           intended to detect and deter short-term and excessive trading.


                                            Policies You Should Know About  | 31
<PAGE>

           Pursuant to its policies, the fund will impose a 2% redemption fee
           on fund shares held for less than a specified holding period
           (subject to certain exceptions discussed below under "Redemption
           fees"). The fund also reserves the right to reject or cancel a
           purchase or exchange order for any reason without prior notice. For
           example, the fund may in its discretion reject or cancel a purchase
           or an exchange order even if the transaction is not subject to the
           specific roundtrip transaction limitation described below if the
           Advisor believes that there appears to be a pattern of short-term or
           excessive trading activity by a shareholder or deems any other
           trading activity harmful or disruptive to the fund. The fund,
           through its Advisor and transfer agent, will measure short-term and
           excessive trading by the number of roundtrip transactions within a
           shareholder's account during a rolling 12-month period. A
           "roundtrip" transaction is defined as any combination of purchase
           and redemption activity (including exchanges) of the same fund's
           shares. The fund may take other trading activity into account if the
           fund believes such activity is of an amount or frequency that may be
           harmful to long-term shareholders or disruptive to portfolio
           management.

           Shareholders are limited to four roundtrip transactions in the same
           DWS Fund (excluding money market funds) over a rolling 12-month
           period. Shareholders with four or more roundtrip transactions in the
           same DWS Fund within a rolling 12-month period generally will be
           blocked from making additional purchases of, or exchanges into, that
           DWS Fund. The fund has sole discretion whether to remove a block
           from a shareholder's account. The rights of a shareholder to redeem
           shares of a DWS Fund are not affected by the four roundtrip
           transaction limitation, but all redemptions remain subject to the
           fund's redemption fee policy (see "Redemption fees" described
           below).

           The fund may make exceptions to the roundtrip transaction policy for
           certain types of transactions if, in the opinion of the Advisor, the
           transactions do not represent short-term or excessive trading or are
           not abusive or harmful to the fund, such as, but not limited to,
           systematic transactions, required minimum retirement distributions,
           transactions initiated by the fund or administrator and transactions
           by certain qualified fund-of-fund(s).


32 | Policies You Should Know About
<PAGE>

           In certain circumstances where shareholders hold shares of the fund
           through a financial intermediary, the fund may rely upon the
           financial intermediary's policy to deter short-term or excessive
           trading if the Advisor believes that the financial intermediary's
           policy is reasonably designed to detect and deter transactions that
           are not in the best interests of the fund. A financial
           intermediary's policy relating to short-term or excessive trading
           may be more or less restrictive than the DWS Funds' policy, may
           permit certain transactions not permitted by the DWS Funds'
           policies, or prohibit transactions not subject to the DWS Funds'
           policies.

           The Advisor may also accept undertakings from a financial
           intermediary to enforce short-term or excessive trading policies on
           behalf of the fund that provide a substantially similar level of
           protection for the fund against such transactions. For example,
           certain financial intermediaries may have contractual, legal or
           operational restrictions that prevent them from blocking an account.
           In such instances, the financial intermediary may use alternate
           techniques that the Advisor considers to be a reasonable substitute
           for such a block.

           In addition, if the fund invests some portion of its assets in
           foreign securities, it has adopted certain fair valuation practices
           intended to protect the fund from "time zone arbitrage" with respect
           to its foreign securities holdings and other trading practices that
           seek to exploit variations in portfolio valuation that arise from
           the nature of the securities held by the fund. (See "How the fund
           calculates share price.")

           There is no assurance that these policies and procedures will be
           effective in limiting short-term and excessive trading in all cases.
           For example, the Advisor may not be able to effectively monitor,
           detect or limit short-term or excessive trading by underlying
           shareholders that occurs through omnibus accounts maintained by
           broker-dealers or other financial intermediaries. The Advisor
           reviews trading activity at the omnibus level to detect short-term
           or excessive trading. If the Advisor has reason to suspect that
           short-term or excessive trading is occurring at the omnibus level,
           the Advisor will contact the financial intermediary to request
           underlying shareholder level activity. Depending on the amount of
           fund shares held in such omnibus accounts (which may represent most
           of the fund's shares) short-term and/or excessive trading of fund
           shares could adversely affect long-term shareholders in the fund. If
           short-term or excessive trading is identified, the Advisor will take
           appropriate action.


                                            Policies You Should Know About  | 33
<PAGE>

           The fund's market timing policies and procedures may be modified or
           terminated at any time.

           REDEMPTION FEES. The fund imposes a redemption fee of 2% of the
           total redemption amount (calculated at net asset value, without
           regard to the effect of any contingent deferred sales charge; any
           contingent deferred sales charge is also assessed on the total
           redemption amount without regard to the assessment of the 2%
           redemption fee) on all fund shares redeemed or exchanged within 15
           days of buying them (either by purchase or exchange). The redemption
           fee is paid directly to the fund and is designed to encourage
           long-term investment and to offset transaction and other costs
           associated with short-term or excessive trading. For purposes of
           determining whether the redemption fee applies, shares held the
           longest time will be treated as being redeemed first and shares held
           the shortest time will be treated as being redeemed last.

           The redemption fee is applicable to fund shares purchased either
           directly or through a financial intermediary, such as a
           broker-dealer. Transactions through financial intermediaries
           typically are placed with the fund on an omnibus basis and include
           both purchase and sale transactions placed on behalf of multiple
           investors. These purchase and sale transactions are generally netted
           against one another and placed on an aggregate basis; consequently
           the identities of the individuals on whose behalf the transactions
           are placed generally are not known to the fund. For this reason, the
           fund has undertaken to notify financial intermediaries of their
           obligation to assess the redemption fee on customer accounts and to
           collect and remit the proceeds to the fund. However, due to
           operational requirements, the intermediaries' methods for tracking
           and calculating the fee may be inadequate or differ in some respects
           from the fund's. Subject to approval by the Advisor or the fund's
           Board, intermediaries who transact business on an omnibus basis may
           implement the redemption fees according to their own operational
           guidelines (which may be different than the fund's policies) and
           remit the fees to the fund.

           The redemption fee will not be charged in connection with the
           following exchange or redemption transactions: (i) transactions on
           behalf of participants in certain research wrap programs; (ii)
           transactions on behalf of a shareholder to return any excess IRA
           contributions to the shareholder; (iii) transactions on behalf of a
           shareholder to effect a required minimum distribution on an IRA;
           (iv) transactions on behalf of any mutual fund advised by


34 | Policies You Should Know About
<PAGE>

the Advisor and its affiliates (e.g., "funds of funds") or, in the case of a
master/feeder relationship, redemptions by the feeder fund from the master
portfolio; (v) transactions on behalf of certain unaffiliated mutual funds
operating as funds of funds; (vi) transactions following death or disability of
any registered shareholder, beneficial owner or grantor of a living trust with
respect to shares purchased before death or disability; (vii) transactions
involving hardship of any registered shareholder; (viii) systematic transactions
with pre-defined trade dates for purchases, exchanges or redemptions, such as
automatic account rebalancing, or loan origination and repayments; (ix)
transactions involving shares purchased through the reinvestment of dividends or
other distributions; (x) transactions involving shares transferred from another
account in the same fund or converted from another class of the same fund (the
redemption fee period will carry over to the acquired shares); (xi) transactions
initiated by the fund or administrator (e.g., redemptions for not meeting
account minimums, to pay account fees funded by share redemptions, or in the
event of the liquidation or merger of the fund); or (xii) transactions in cases
when there are legal or contractual limitations or restrictions on the
imposition of the redemption fee (as determined by the fund or its agents in
their sole discretion). It is the policy of the DWS funds to permit approved
fund platform providers to execute transactions within the funds without the
imposition of a redemption fee if such providers have implemented alternative
measures that are determined by the Advisor to provide controls on short-term
and excessive trading that are comparable to the DWS funds' policies.

THE AUTOMATED INFORMATION LINE IS AVAILABLE 24 HOURS A DAY BY CALLING (800)
621-1048. You can use our automated phone services to get information on DWS
funds generally and on accounts held directly at DWS Scudder. You can also use
this service to make exchanges and to purchase and sell shares.

QUICKBUY AND QUICKSELL let you set up a link between a DWS fund account and a
bank account. Once this link is in place, you can move money between the two
with a phone call. You'll need to make sure your bank has Automated Clearing
House (ACH) services. Transactions take two to





THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The DWS Scudder Web site can be a valuable resource for shareholders with
Internet access. Go to WWW.DWS-SCUDDER.COM to get up-to-date information, review
balances or even place orders for exchanges.






                                            Policies You Should Know About  | 35
<PAGE>

           three days to be completed and there is a $50 minimum and a $250,000
           maximum. To set up QuickBuy or QuickSell on a new account, see the
           account application; to add it to an existing account, call (800)
           621-1048.

           TELEPHONE AND ELECTRONIC TRANSACTIONS. Generally, you are
           automatically entitled to telephone and electronic transaction
           privileges, but you may elect not to have them when you open your
           account or by contacting Shareholder Services at (800) 621-1048 at a
           later date.

           Since many transactions may be initiated by telephone or
           electronically, it's important to understand that as long as we take
           reasonable steps to ensure that an order to purchase or redeem
           shares is genuine, such as recording calls or requesting
           personalized security codes or other information, we are not
           responsible for any losses that may occur as a result. For
           transactions conducted over the Internet, we recommend the use of a
           secure Internet browser. In addition, you should verify the accuracy
           of your confirmation statements immediately after you receive them.

           THE FUND DOES NOT ISSUE SHARE CERTIFICATES.

           WHEN YOU ASK US TO SEND OR RECEIVE A WIRE, please note that while we
           don't charge a fee to send or receive wires, it's possible that your
           bank may do so. Wire transactions are generally completed within 24
           hours. The fund can only send wires of $1,000 or more and accept
           wires of $50 or more.

           THE FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by check, bank
           or Federal Funds wire transfer or by electronic bank transfer. Please
           note that the fund does not accept cash, money orders, traveler's
           checks, starter checks, third party checks (except checks for
           retirement plan asset transfers and rollovers or for Uniform Gifts to
           Minors Act/Uniform Transfers to Minors Act accounts), checks drawn on
           foreign banks or checks issued by credit card companies or
           Internet-based companies. Thus, subject to the foregoing exceptions
           for certain third party checks, checks that are otherwise permissible
           must be drawn by the account holder on a domestic bank and must be
           payable to the fund.





THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

If you ever have difficulty placing an order by phone or Internet, you can send
us your order in writing.










36 | Policies You Should Know About
<PAGE>

           SIGNATURE GUARANTEE. When you want to sell more than $100,000 worth
           of shares or send proceeds to a third party or to a new address,
           you'll usually need to place your order in writing and include a
           signature guarantee. However, if you want money wired to a bank
           account that is already on file with us, you don't need a signature
           guarantee. Also, generally you don't need a signature guarantee for
           an exchange, although we may require one in certain other
           circumstances.

           A signature guarantee is simply a certification of your signature -
           a valuable safeguard against fraud. You can get a signature
           guarantee from an eligible guarantor institution, including
           commercial banks, savings and loans, trust companies, credit unions,
           member firms of a national stock exchange or any member or
           participant of an approved signature guarantor program. Note that
           you can't get a signature guarantee from a notary public and we must
           be provided the original guarantee.

           SELLING SHARES OF TRUST ACCOUNTS AND BUSINESS OR ORGANIZATION
           ACCOUNTS may require additional documentation. Please call (800)
           621-1048 or contact your financial advisor for more information.

           WHEN YOU SELL SHARES THAT HAVE A CDSC, we calculate the CDSC as a
           percentage of what you paid for the shares or what you are selling
           them for - whichever results in the lower charge to you. In
           processing orders to sell shares, the shares with the lowest CDSC
           are sold first. Exchanges from one fund into another don't affect
           CDSCs; for each investment you make, the date you first bought
           shares is the date we use to calculate a CDSC on that particular
           investment.

           There are certain cases in which you may be exempt from a CDSC.
           These include:

           -  the death or disability of an account owner (including a joint
              owner). This waiver applies only under certain conditions. Please
              contact your financial advisor or Shareholder Services to
              determine if the conditions exist

           -  withdrawals made through an automatic withdrawal plan up to a
              maximum of 12% per year of the net asset value of the account

           -  withdrawals related to certain retirement or benefit plans

           -  redemptions for certain loan advances, hardship provisions or
              returns of excess contributions from retirement plans

                                            Policies You Should Know About  | 37
<PAGE>

           -  for Class A shares purchased through the Large Order NAV Purchase
           Privilege, redemption of shares whose dealer of record at the time
           of the investment notifies the Distributor that the dealer waives
           the applicable commission

           -  for Class C shares, redemption of shares purchased through a
              dealer-sponsored asset allocation program maintained on an
              omnibus record-keeping system, provided the dealer of record has
              waived the advance of the first year distribution and service
              fees applicable to such shares and has agreed to receive such
              fees quarterly

           In each of these cases, there are a number of additional provisions
           that apply in order to be eligible for a CDSC waiver. Your financial
           advisor or Shareholder Services can answer your questions and help
           you determine if you are eligible.

           IF YOU SELL SHARES IN A DWS FUND AND THEN DECIDE TO INVEST WITH DWS
           SCUDDER AGAIN WITHIN SIX MONTHS, you may be able to take advantage
           of the "reinstatement feature." With this feature, you can put your
           money back into the same class of a DWS fund at its current NAV and,
           for purposes of a sales charge, it will be treated as if it had
           never left DWS Scudder.

           You'll be reimbursed (in the form of fund shares) for any CDSC you
           paid when you sold. Future CDSC calculations will be based on your
           original investment date, rather than your reinstatement date. You
           can only use the reinstatement feature once for any given group of
           shares. To take advantage of this feature, contact Shareholder
           Services or your financial advisor.

           MONEY FROM SHARES YOU SELL is normally sent out within one business
           day of when your order is processed (not when it is received),
           although it could be delayed for up to seven days. There are other
           circumstances when it could be longer, including, but not limited
           to, when you are selling shares you bought recently by check or ACH
           (the funds will be placed under a 10 calendar day hold to ensure
           good funds) or when unusual circumstances prompt the SEC to allow
           further delays. Certain expedited redemption processes may also be
           delayed when you are selling recently purchased shares or in the
           event of closing of the Federal Reserve Bank's wire payment system.
           In addition, the fund reserves the right to suspend or postpone
           redemptions as permitted pursuant to Section 22(e) of the Investment
           Company Act of 1940. Generally, those circumstances are when 1) the
           New York Stock Exchange is closed other than customary weekend or
           holiday closings; 2) trading on


38 | Policies You Should Know About
<PAGE>

           the New York Stock Exchange is restricted; 3) an emergency exists
           which makes the disposal of securities owned by the fund or the fair
           determination of the value of the fund's net assets not reasonably
           practicable; or 4) the SEC, by order, permits the suspension of the
           right of redemption. Redemption payments by wire may also be delayed
           in the event of a non-routine closure of the Federal Reserve wire
           payment system. For additional rights reserved by the fund, please
           see "Other rights we reserve."

           You may obtain additional information about other ways to sell your
           shares by contacting your financial advisor.


           How the fund calculates share price

           To calculate net asset value, or NAV, each share class uses the
           following equation:


<TABLE>
<S>                                                     <C> <C>
            TOTAL ASSETS - TOTAL LIABILITIES
           -----------------------------------------    =    NAV
               TOTAL NUMBER OF SHARES OUTSTANDING
</TABLE>


           The price at which you buy shares is based on the NAV per share
           calculated after the order is received by the transfer agent,
           although for Class A shares it will be adjusted to allow for any
           applicable sales charge (see "Choosing a Share Class"). The price at
           which you sell shares is also based on the NAV per share calculated
           after the order is received by the transfer agent, although a CDSC
           may be taken out of the proceeds (see "Choosing a Share Class").

           THE FUND CHARGES A REDEMPTION FEE EQUAL TO 2.00% of the value of
           shares redeemed or exchanged within 15 days of purchase. Please see
           "Policies about transactions - Redemption fees" for further
           information.

           WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN
           INDEPENDENT PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE.
           However, we may use methods approved by the fund's Board, such as a
           fair valuation model, which are intended to reflect fair value when
           pricing service information or market quotations are not readily
           available or when a security's value or a meaningful portion of the
           value of the fund's portfolio is believed to have been materially
           affected by a significant event, such as a natural disaster, an
           economic event like a bankruptcy filing, or a substantial
           fluctuation in domestic or foreign markets that has occurred between
           the close of the exchange or market


                                            Policies You Should Know About  | 39
<PAGE>

           on which the security is principally traded (for example, a foreign
           exchange or market) and the close of the New York Stock Exchange. In
           such a case, the fund's value for a security is likely to be
           different from the last quoted market price or pricing service
           information. In addition, due to the subjective and variable nature
           of fair value pricing, it is possible that the value determined for
           a particular asset may be materially different from the value
           realized upon such asset's sale. It is expected that the greater the
           percentage of fund assets that is invested in non-US securities, the
           more extensive will be the fund's use of fair value pricing. This is
           intended to reduce the fund's exposure to "time zone arbitrage" and
           other harmful trading practices. (See "Market timing policies and
           procedures.")

           TO THE EXTENT THAT THE FUND INVESTS IN SECURITIES THAT ARE TRADED
           PRIMARILY IN FOREIGN MARKETS, the value of its holdings could change
           at a time when you aren't able to buy or sell fund shares. This is
           because some foreign markets are open on days or at times when the
           fund doesn't price its shares. (Note that prices for securities that
           trade on foreign exchanges can change significantly on days when the
           New York Stock Exchange is closed and you cannot buy or sell fund
           shares. Price changes in the securities the fund owns may ultimately
           affect the price of fund shares the next time the NAV is
           calculated.)


           Other rights we reserve

           You should be aware that we may do any of the following:

           -  withdraw or suspend the offering of shares at any time

           -  withhold a portion of your distributions and redemption proceeds
              for federal income tax purposes if we have been notified by the
              IRS that you are subject to backup withholding or if you fail to
              provide us with a correct taxpayer ID number and certain
              certifications including certification that you are not subject
              to backup withholding

           -  reject a new account application if you don't provide any
              required or requested identifying information, or for any other
              reason

40 | Policies You Should Know About
<PAGE>

           -  refuse, cancel, limit or rescind any purchase or
              exchange order, without prior notice; freeze any account
              (meaning you will not be able to purchase fund shares in
              your account); suspend account services; and/or
              involuntarily redeem your account if we think that the
              account is being used for fraudulent or illegal purposes;
              one or more of these actions will be taken when, at our
              sole discretion, they are deemed to be in the fund's best
              interests or when the fund is requested or compelled to do
              so by governmental authority or by applicable law

           -  close and liquidate your account if we are unable to verify your
              identity, or for other reasons; if we decide to close your
              account, your fund shares will be redeemed at the net asset value
              per share next calculated after we determine to close your
              account (less any applicable sales charge or redemption fee); you
              may recognize a gain or loss on the redemption of your fund
              shares and you may incur a tax liability

           -  pay you for shares you sell by "redeeming in kind," that is, by
              giving you securities (which typically will involve brokerage
              costs for you to liquidate) rather than cash, but which will be
              taxable to the same extent as a redemption for cash; the fund
              generally won't make a redemption in kind unless your requests
              over a 90-day period total more than $250,000 or 1% of the value
              of the fund's net assets, whichever is less

           -  change, add or withdraw various services, fees and account
              policies (for example, we may adjust the fund's investment
              minimums at any time)


                                            Policies You Should Know About  | 41
<PAGE>

UNDERSTANDING DISTRIBUTIONS AND TAXES

           The fund intends to distribute to its shareholders virtually all of
           its net earnings. The fund can earn money in two ways: by receiving
           interest, dividends or other income from securities it holds and by
           selling securities for more than it paid for them. (The fund's
           earnings are separate from any gains or losses stemming from your
           own purchase and sale of shares.) The fund may not always pay a
           dividend or distribution for a given period.

           THE FUND INTENDS TO PAY DIVIDENDS AND DISTRIBUTIONS to its
           shareholders in November or December and, if necessary, may do so at
           other times as well.

           Dividends or distributions declared to shareholders of record in the
           last quarter of a given calendar year are treated for federal income
           tax purposes as if they were received on December 31 of that year,
           provided such dividends or distributions are paid by the end of the
           following January.

           For federal income tax purposes, income and capital gains
           distributions are generally taxable to shareholders. However,
           dividends and distributions received by retirement plans qualifying
           for tax exemption under federal income tax laws generally will not
           be taxable.

           YOU CAN CHOOSE HOW TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS. You
           can have them all automatically reinvested in fund shares (at NAV),
           all deposited directly to your bank account or all sent to you by
           check, have one type reinvested and the other sent to you by check or
           have them invested in a different fund. Tell us your preference on
           your application. If you don't indicate a preference, your dividends
           and distributions will all be reinvested in shares of the fund
           without a sales charge (if applicable). Distributions are treated the
           same for federal income tax purposes whether you receive them in cash
           or reinvest them in additional shares. For employer-sponsored
           qualified plans, and retirement plans, reinvestment (at NAV) is the
           only option.

           BUYING, SELLING OR EXCHANGING FUND SHARES WILL USUALLY HAVE FEDERAL
           INCOME TAX CONSEQUENCES FOR YOU (except in employer-sponsored
           qualified plans, IRAs or other tax-advantaged accounts). Your sale of
           shares may result in a capital gain or loss.







THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

Because each shareholder's tax situation is unique, ask your tax professional
about the tax consequences of your investments, including any state and local
tax consequences.




42 | Understanding Distributions and Taxes
<PAGE>

           The gain or loss will be long-term or short-term depending on how
           long you owned the shares that were sold. For federal income tax
           purposes, an exchange is treated the same as a sale.

           THE FEDERAL INCOME TAX STATUS of the fund's earnings you receive and
           your own fund transactions generally depends on their type:


<TABLE>
<CAPTION>
GENERALLY TAXED AT LONG-TERM                GENERALLY TAXED AT ORDINARY
CAPITAL GAIN RATES:                         INCOME RATES:
<S>                                         <C>
DISTRIBUTIONS FROM THE FUND
- gains from the sale of                    -  gains from the sale of
  securities held (or treated as               securities held by the fund for
  held) by the fund for more                   one year or less
  than one year                             -  all other taxable income
- qualified dividend income

TRANSACTIONS INVOLVING FUND
SHARES
- gains from selling fund                   -  gains from selling fund
  shares held for more than                    shares held for one year or
  one year                                     less
</TABLE>


           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY THE FUND MAY BE
           SUBJECT TO FOREIGN WITHHOLDING TAXES. In that case, the fund's yield
           on those securities would generally be decreased. The fund may elect
           to pass through to its shareholders a credit or deduction for
           foreign taxes it has paid if at the end of its year more than 50% of
           the fund's total assets are stocks or securities of foreign
           corporations. In addition, any investments in foreign securities or
           foreign currencies may increase or accelerate the fund's recognition
           of ordinary income and may affect the timing or amount of the fund's
           distributions. If you invest in the fund through a taxable account,
           your after-tax return could be negatively impacted.

           To the extent that the fund invests in certain debt obligations or
           certain other securities, investments in these obligations or
           securities may cause the fund to recognize taxable income in excess
           of the cash generated by such obligations. Thus, the fund could be
           required at times to liquidate other investments in order to satisfy
           its distribution requirements.

           For taxable years beginning before January 1, 2011, distributions to
           individuals and other noncorporate shareholders of investment income
           designated by the fund as derived from qualified dividend income are
           eligible for taxation for federal


                                     Understanding Distributions and Taxes  | 43
<PAGE>

           income tax purposes at the more favorable long-term capital gain
           rates. Qualified dividend income generally includes dividends from
           domestic and some foreign corporations. It does not include income
           from investments in debt securities or, generally, from REITs. In
           addition, the fund must meet certain holding period and other
           requirements with respect to the dividend-paying stocks in its
           portfolio and the shareholder must meet certain holding period and
           other requirements with respect to the fund's shares for the lower
           tax rates to apply.

           For taxable years beginning before January 1, 2011, the maximum
           federal income tax rate imposed on long-term capital gains
           recognized by individuals and other noncorporate shareholders has
           been reduced to 15%. For taxable years beginning on or after January
           1, 2011, the long-term capital gain rate is scheduled to return to
           20%.

           YOUR FUND WILL SEND YOU DETAILED FEDERAL INCOME TAX INFORMATION
           EVERY JANUARY. These statements tell you the amount and the federal
           income tax classification of any dividends or distributions you
           received. They also have certain details on your purchases and sales
           of shares.

           IF YOU INVEST RIGHT BEFORE THE FUND PAYS A DIVIDEND, you'll be
           getting some of your investment back as a taxable dividend. You can
           avoid this by investing after the fund declares a dividend. In
           tax-advantaged retirement accounts you do not need to worry about
           this.

           CORPORATIONS are taxed at the same rates on ordinary income and
           capital gains but may be eligible for a dividends-received deduction
           for a portion of the income dividends they receive from the fund,
           provided certain holding period and other requirements are met.

           The above discussion summarizes certain federal income tax
           consequences for shareholders who are US persons. If you are a
           non-US person, please consult your own tax advisor with respect to
           the US tax consequences to you of an investment in the fund. For
           more information, see "Taxes" in the Statement of Additional
           Information.


44 | Understanding Distributions and Taxes
<PAGE>

APPENDIX
--------------------------------------------------------------------------------
           Hypothetical Expense Summary


           Using the annual fund operating expense ratios presented in the fee
           tables in the fund prospectus, the Hypothetical Expense Summary
           shows the estimated fees and expenses, in actual dollars, that would
           be charged on a hypothetical investment of $10,000 in the fund held
           for the next 10 years and the impact of such fees and expenses on
           fund returns for each year and cumulatively, assuming a 5% return
           for each year. The tables also assume that all dividends and
           distributions are reinvested. The annual fund expense ratios shown
           are net of any contractual fee waivers or expense reimbursements, if
           any, for the period of the contractual commitment. The tables
           reflect the maximum initial sales charge, if any, but do not reflect
           any contingent deferred sales charge or redemption fees, if any,
           which may be payable upon redemption. If contingent deferred sales
           charges or redemption fees were shown, the "Hypothetical Year-End
           Balance After Fees and Expenses" amounts shown would be lower and
           the "Annual Fees and Expenses" amounts shown would be higher. Also,
           please note that if you are investing through a third party
           provider, that provider may have fees and expenses separate from
           those of the fund that are not reflected here. Mutual fund fees and
           expenses fluctuate over time and actual expenses may be higher or
           lower than those shown.

           The Hypothetical Expense Summary should not be used or construed as
           an offer to sell, a solicitation of an offer to buy or a
           recommendation or endorsement of any specific mutual fund. You
           should carefully review the fund's prospectus to consider the
           investment objectives, risks, expenses and charges of the fund prior
           to investing.


                                                                  Appendix  | 45
<PAGE>

                DWS RREEF Global Infrastructure Fund - Class A



<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               5.75%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES

<S>       <C>                <C>          <C>               <C>                <C>
   1            %               %               %                  $                 $
   2            %               %               %                  $                 $
   3            %               %               %                  $                 $
   4            %               %               %                  $                 $
   5            %               %               %                  $                 $
   6            %               %               %                  $                 $
   7            %               %               %                  $                 $
   8            %               %               %                  $                 $
   9            %               %               %                  $                 $
  10            %               %               %                  $                 $
  TOTAL                                                                              $
</TABLE>


DWS RREEF Global Infrastructure Fund - Class C




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            %               %               %                  $                 $
   2            %               %               %                  $                 $
   3            %               %               %                  $                 $
   4            %               %               %                  $                 $
   5            %               %               %                  $                 $
   6            %               %               %                  $                 $
   7            %               %               %                  $                 $
   8            %               %               %                  $                 $
   9            %               %               %                  $                 $
  10            %               %               %                  $                 $
  TOTAL                                                                              $
</TABLE>



46 | Appendix
<PAGE>

TO GET MORE INFORMATION

SHAREHOLDER REPORTS - These include commentary from the fund's management team
about recent market conditions and the effects of the fund's strategies on its
performance. They also have detailed performance figures, a list of everything
the fund owns, and its financial statements. Shareholders get these reports
automatically.

STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
fund's features and policies, including additional risk information. The SAI is
incorporated by reference into this document (meaning that it's legally part of
this prospectus).

For a free copy of any of these documents or to request other information about
the fund, call (800) 621-1048, or contact DWS Scudder at the address listed
below. The fund's SAI and shareholder reports are also available through the
DWS Scudder Web site at www.dws-scudder.com. These documents and other
information about the fund are available from the EDGAR Database on the SEC's
Internet site at www.sec.gov. If you like, you may obtain copies of this
information, after paying a copying fee, by e-mailing a request to
publicinfo@sec.gov or by writing the SEC at the address listed below. You can
also review and copy these documents and other information about the fund,
including the fund's SAI, 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.


<TABLE>
<CAPTION>
DWS SCUDDER              SEC                     DISTRIBUTOR
---------------------    --------------------    -------------------------------
<S>                      <C>                     <C>
PO Box 219151            100 F Street, N.E.      DWS Scudder Distributors, Inc.
Kansas City, MO          Washington, D.C.        222 South Riverside Plaza
64121-9151               20549-0102              Chicago, IL 60606-5808
WWW.DWS-SCUDDER.COM      WWW.SEC.GOV             (800) 621-1148
(800) 621-1048           (800) SEC-0330
</TABLE>



<TABLE>
<S>                                       <C>                                     <C>
SEC FILE NUMBER:
DWS Global/International Fund, Inc.       DWS RREEF Global Infrastructure Fund    811-4670
</TABLE>



[GRAPHIC APPEARS HERE]




(__/__/08) DGIF-1
[GRAPHIC APPEARS HERE]




<PAGE>

                                  MAY 23, 2008







                                   PROSPECTUS
                              ------------------
                              INSTITUTIONAL CLASS

                      DWS RREEF GLOBAL INFRASTRUCTURE FUND

As with all mutual funds, the Securities and Exchange Commission (SEC) does not
approve or disapprove these shares or determine whether the information in this
prospectus is truthful or complete. It is a criminal offense for anyone to
inform you otherwise.


                            ONE GLOBAL FORCE. ONE FOCUS. YOU. [DWS SCUDDER LOGO]
                                                             Deutsche Bank Group




<PAGE>

CONTENTS




<TABLE>
<S>      <C>
HOW THE FUND WORKS
  4      The Fund's Main Investment
         Strategy
  6      The Main Risks of Investing in
         the Fund
 11      The Fund's Performance
         History
 12      How Much Investors Pay
 13      Other Policies and Risks
 14      Who Manages and Oversees
         the Fund
 17      Financial Highlights


</TABLE>
<TABLE>
<S>      <C>
HOW TO INVEST IN THE FUND
 19      Buying and Selling
         Institutional Class Shares
 25      Policies You Should Know
         About
 36      Understanding Distributions
         and Taxes
 39      Appendix
</TABLE>

<PAGE>

HOW THE FUND WORKS

On the next few pages, you'll find information about the fund's investment
objective, the main strategies it uses to pursue that objective and the main
risks that could affect performance.

Whether you are considering investing in the fund or are already a shareholder,
you'll want to LOOK THIS INFORMATION OVER CAREFULLY. You may want to keep it on
hand for reference as well.

Remember that mutual funds are investments, not bank deposits. They're not
insured or guaranteed by the FDIC or any other government agency. Their share
prices will go up and down, and you could lose money by investing in them.

You can find DWS prospectuses on the Internet at WWW.DWS-SCUDDER.COM (the Web
site does not form a part of this prospectus).
<PAGE>


<TABLE>
<S>                                   <C>
                                        Institutional Class
  fund number

    DWS GLOBAL INFRASTRUCTURE FUND


</TABLE>

            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks total return from both capital appreciation and
            current income through investment in a global portfolio of
            securities of infrastructure-related companies.

            Under normal circumstances, the fund invests at least 80% of its
            net assets in the securities of US and non-US
            infrastructure-related companies. The fund considers a company to
            be an infrastructure-related company if at least 50% of its assets
            are infrastructure assets or 50% of its gross income or net profits
            are derived, directly or indirectly, from the ownership,
            management, construction, operation, utilization or financing of
            infrastructure assets.

            Infrastructure assets are physical assets, structures and networks
            that provide necessary services and operations to society. Examples
            of infrastructure assets include transportation assets (e.g., toll
            roads, bridges, tunnels, parking facilities, railroads, rapid
            transit links, airports, refueling facilities and seaports),
            utility assets (e.g., electric transmission and distribution lines,
            power generation facilities, gas and water distribution facilities,
            sewage treatment plants, broadcast and wireless towers, and cable
            and satellite networks) and social assets (e.g., courthouses,
            hospitals, schools, correctional facilities, stadiums and
            subsidized housing). The fund focuses on investment in companies
            with a direct investment in infrastructure assets and deemphasizes
            investment in companies that operate or utilize infrastructure
            assets in their business (e.g., electric utilities, airlines) or
            companies with indirect exposure to infrastructure investment
            (e.g., suppliers of construction materials).

            The fund may invest in common, convertible and preferred stock,
            rights or warrants to purchase common stock, debt securities and
            listed limited partnership interests. Under normal circumstances,
            the majority of the fund's assets are


4 | DWS Global Infrastructure Fund
<PAGE>

            invested in securities of issuers organized or located outside the
            US or doing a substantial amount of business outside the US. The
            fund allocates its assets among various regions and countries,
            including exposure to emerging market countries.

            The fund may also invest in unlisted securities, provided that the
            portfolio managers expect such securities to be listed on a
            recognized public stock exchange or traded over the counter within
            six months from the time of investment. In addition, while the fund
            does not currently plan to hedge international currency risk, the
            fund may engage in foreign currency transactions, including foreign
            currency forward contracts, options, swaps and other similar
            transactions in connection with investments in securities of non-US
            companies.

            The portfolio managers utilize the insights of an in-house
            infrastructure industry group, which provides commentary on the
            political, regulatory, demographic and other salient
            characteristics of the countries and regions in which the fund
            invests. In selecting securities for the fund's portfolio, the
            portfolio managers incorporate both "top-down" and "bottom-up"
            investment insights and analysis.

            "TOP-DOWN" RESEARCH. The portfolio managers analyze various
            factors, including infrastructure market dynamics (e.g., supply/
            demand conditions), the economic environment (e.g., interest rates,
            inflation and economic growth), expected capital flow dynamics and
            exchange rate conditions. The portfolio managers combine this
            "top-down" analysis with "bottom-up" analysis at the company level
            where individual companies are evaluated.

            "BOTTOM-UP" RESEARCH. The portfolio managers analyze
            characteristics and investment prospects of a particular security
            relative to others in its local market, to actively manage the
            fund's exposure to individual securities within each region.
            Disciplined valuation analysis performed in each region drives this
            decision-making process, guiding the portfolio managers to invest
            in securities that they believe can provide superior returns over
            the long-term, and to sell those that they believe no longer
            represent the strongest prospects, relative to other opportunities.
            The focus of the fund's security selection strategy is to invest in
            securities with the potential for attractive total return,
            typically through a combination of


                                             DWS Global Infrastructure Fund  | 5
<PAGE>

            price appreciation and dividend income. It is expected that the
            majority of returns from the fund will be generated by
            security-specific investment decisions, which are the
            responsibility of portfolio managers located in the respective
            geographical regions.

            OTHER INVESTMENTS. The fund is permitted, but not required, to use
            various types of derivatives (contracts whose value is based on,
            for example, indices, currencies or securities). Derivatives may be
            used for hedging and for risk management or for non-hedging
            purposes to seek to enhance potential gains. The fund may use
            derivatives in circumstances where portfolio management believes
            they offer an economical means of gaining exposure to a particular
            asset class or to keep cash on hand to meet shareholder redemptions
            or other needs while maintaining exposure to the market.

            SECURITIES LENDING. The fund may lend its investment securities in
            an amount up to 33 1/3% of its total assets to approved
            institutional borrowers who need to borrow securities in order to
            complete certain transactions.


            THE MAIN RISKS OF INVESTING IN THE FUND

            There are several risk factors that could hurt the fund's
            performance, cause you to lose money or cause the fund's
            performance to trail that of other investments.

            STOCK MARKET RISK. An important factor with this fund is how stock
            markets perform - in this case US and foreign stock markets. When
            US and foreign stock prices fall, you should expect the value of
            your investment to fall as well. Compared to large company stocks,
            small company stocks tend to be more volatile, in part because
            these companies tend to be less established and the valuation of
            their stocks often depends on future expectations. Because a stock
            represents ownership in its issuer, stock prices can be hurt by
            poor management, shrinking product demand and other business risks.
            These may affect single companies as well as groups of companies.
            In addition, movements in financial markets may adversely affect a
            stock's price, regardless of how well the company performs. The
            market as a whole may not favor the types of investments the fund
            makes and the fund may not be able to get attractive prices for
            them.


6 | DWS Global Infrastructure Fund
<PAGE>

            SECURITY SELECTION RISK. A risk that pervades all investing is the
            risk that the securities in the fund's portfolio may decline in
            value.

            FOREIGN INVESTMENT RISK. Foreign investments involve certain
            special risks, including:

            -  POLITICAL RISK. Some foreign governments have limited the
               outflow of profits to investors abroad, imposed restrictions on
               the exchange or export of foreign currency, extended diplomatic
               disputes to include trade and financial relations, seized
               foreign investment and imposed higher taxes.

            -  INFORMATION RISK. Companies based in foreign markets are usually
               not subject to accounting, auditing and financial reporting
               standards and practices as stringent as those in the US.
               Therefore, their financial reports may present an incomplete,
               untimely or misleading picture of a company, as compared to the
               financial reports required in the US.

            -  LIQUIDITY RISK. Investments that trade less can be more
               difficult or more costly to buy, or to sell, than more liquid or
               active investments. This liquidity risk is a factor of the
               trading volume of a particular investment, as well as the size
               and liquidity of the entire local market. On the whole, foreign
               exchanges are smaller and less liquid than US exchanges. This
               can make buying and selling certain investments more difficult
               and costly. Relatively small transactions in some instances can
               have a disproportionately large effect on the price and supply
               of securities. In certain situations, it may become virtually
               impossible to sell an investment in an orderly fashion at a
               price that approaches portfolio management's estimate of its
               value. For the same reason, it may at times be difficult to
               value the fund's foreign investments.

            -  REGULATORY RISK. There is generally less government regulation
               of foreign markets, companies and securities dealers than in the
               US.

            -  CURRENCY RISK. The fund invests in securities denominated in
               foreign currencies. Changes in exchange rates between foreign
               currencies and the US dollar may affect the US dollar value of
               foreign securities or the income or gain received on these
               securities.

                                             DWS Global Infrastructure Fund  | 7
<PAGE>

            -  LIMITED LEGAL RECOURSE RISK. Legal remedies for investors may be
               more limited than the legal remedies available in the US.

            -  TRADING PRACTICE RISK. Brokerage commissions and other fees are
               generally higher for foreign investments than for US
               investments. The procedures and rules governing foreign
               transactions and custody may also involve delays in payment,
               delivery or recovery of money or investments.

            -  TAXES. Foreign withholding and certain other taxes may reduce
               the amount of income available to distribute to shareholders of
               the fund. In addition, special US tax considerations may apply
               to the fund's foreign investments.

            EMERGING MARKET RISK. All of the risks of investing in foreign
            securities are increased in connection with investments in emerging
            markets securities. In addition, profound social changes and
            business practices that depart from norms in developed countries'
            economies have hindered the orderly growth of emerging economies
            and their markets in the past and have caused instability. High
            levels of debt tend to make emerging economies heavily reliant on
            foreign capital and vulnerable to capital flight. Countries in
            emerging markets are also more likely to experience high levels of
            inflation, deflation or currency devaluation, which could also hurt
            their economies and securities markets. For these and other
            reasons, investments in emerging markets are often considered
            speculative.

            Some governments exercise substantial influence over the private
            economic sector and the social and political uncertainties that
            exist for many developing countries is significant. In adverse
            social and political circumstances, governments have been involved
            in policies of expropriation, confiscatory taxation,
            nationalization, intervention in the securities markets and trade
            settlement, and imposition of foreign investment restrictions and
            exchange controls.

            CONCENTRATION RISK. The fund concentrates its investments in
            infrastructure-related companies. A fund with a concentrated
            portfolio is vulnerable to the risks associated with the industries
            in which it invests, and is subject to greater risks and market
            fluctuations than funds investing in a broad range of industries.
            Infrastructure-related securities may have


8 | DWS Global Infrastructure Fund
<PAGE>

            increased susceptibility to risks associated with general or local
            economic conditions and political developments, changes in
            regulations, environmental problems, casualty losses and changes in
            interest rates.

            NON-DIVERSIFICATION RISK. The fund is classified as non-diversified
            under the Investment Company Act of 1940, as amended. This means
            that the fund may invest in securities of relatively few issuers.
            Thus, the performance of one or a small number of portfolio
            holdings can affect overall performance more than if the fund
            invested in a larger number of issuers.

            IPO RISK. Securities purchased in initial public offerings (IPOs)
            may be very volatile, rising and falling rapidly, often based,
            among other reasons, on investor perceptions rather than on
            economic reasons. Additionally, investments in IPOs may magnify the
            fund's performance if it has a small asset base. The fund is less
            likely to experience a similar impact on its performance as its
            assets grow because it is unlikely that the fund will be able to
            obtain proportionately larger IPO allocations.

            SMALL COMPANY CAPITALIZATION RISK. Small company stocks tend to
            experience steeper price fluctuations than the stocks of larger
            companies. A shortage of reliable information can also pose added
            risk. Industry-wide reversals may have a greater impact on small
            companies, since they lack a large company's financial resources.
            Small company stocks are typically less liquid than large company
            stocks. Accordingly, it may be harder to find a buyer for a small
            company's shares.

            CREDIT RISK. A fund purchasing bonds faces the risk that the
            creditworthiness of the issuer may decline, causing the value of
            the bonds to decline. In addition, an issuer may not be able to
            make timely payments on the interest and principal on the bonds it
            has issued. In some cases, bonds may decline in credit quality or
            go into default.

            INTEREST RATE RISK. Generally, fixed income securities will
            decrease in value when interest rates rise. The longer the
            effective maturity of the fund's securities, the more sensitive the
            fund will be to interest rate changes. (As a general rule, a 1%
            rise in interest rates means a 1% fall in value for every year of
            duration.) As interest rates decline, the issuers of securities
            held by the fund may prepay principal earlier than scheduled,
            forcing the fund to reinvest in lower-yielding securities and may
            reduce the fund's income. As interest rates


                                             DWS Global Infrastructure Fund  | 9
<PAGE>

            increase, slower than expected principal payments may extend the
            average life of fixed income securities. This will have the effect
            of locking in a below-market interest rate, increasing the fund's
            duration and reducing the value of such a security.

            PRICING RISK. At times, market conditions may make it difficult to
            value some investments, and the fund may use certain valuation
            methodologies for some of its investments, such as fair value
            pricing. Given the subjective nature of such valuation
            methodologies, it is possible that the value determined for an
            investment may be different than the value realized upon such
            investment's sale. If the fund has valued its securities too
            highly, you may pay too much for fund shares when you buy into the
            fund. If the fund has underestimated the price of its securities,
            you may not receive the full market value when you sell your fund
            shares.

            SECURITIES LENDING RISK. Any loss in the market price of securities
            loaned by the fund that occurs during the term of the loan would be
            borne by the fund and would adversely affect the fund's
            performance. Also, there may be delays in recovery of securities
            loaned or even a loss of rights in the collateral should the
            borrower of the securities fail financially while the loan is
            outstanding. However, loans will be made only to borrowers selected
            by the fund's delegate after a review of relevant facts and
            circumstances, including the creditworthiness of the borrower.

            DERIVATIVES RISK. Risks associated with derivatives include the
            risk that the derivative is not well correlated with the security,
            index or currency to which it relates; the risk that derivatives
            may result in losses or missed opportunities; the risk that the
            fund will be unable to sell the derivative because of an illiquid
            secondary market; the risk that a counterparty is unwilling or
            unable to meet its obligation; and the risk that the derivative
            transaction could expose the fund to the effects of leverage, which
            could increase the fund's exposure to the market and magnify
            potential losses. There is no guarantee that derivatives, to the
            extent employed, will have the intended effect, and their use could
            cause lower returns or even losses to the fund. The use of
            derivatives by the fund to hedge risk may reduce the opportunity
            for gain by offsetting the positive effect of favorable price
            movements.

            Another factor that could affect performance is:

10 | DWS Global Infrastructure Fund
<PAGE>

            -  portfolio management could be wrong in the analysis of
               industries, companies, economic trends, the relative
               attractiveness of different securities or other matters.


            THE FUND'S PERFORMANCE HISTORY

            Since the fund is newly offered, past performance information
            is not available.


                                            DWS Global Infrastructure Fund  | 11
<PAGE>

            HOW MUCH INVESTORS PAY


The table below describes the fees and expenses that you may pay if you buy and
hold fund shares. This information doesn't include any fees that may be charged
by your financial advisor.


<TABLE>
<CAPTION>
FEE TABLE

<S>                                    <C>
 SHAREHOLDER FEES, paid directly from your investment
______________________________________________________________________
 Redemption/Exchange Fee on shares
 owned less than 15 days (as % of
 redemption proceeds) 1                             2.00%

 ANNUAL OPERATING EXPENSES, deducted from fund assets
______________________________________________________________________
 Management Fee                                        %
 Distribution/Service (12b-1) Fee                  None
 Other Expenses 3

 TOTAL ANNUAL OPERATING EXPENSES
</TABLE>


1  This fee is charged on all applicable redemptions or exchanges. Please see
   "Policies You Should Know About - Policies about transactions" for further
   information.

2  "Other Expenses" are based on estimated amounts for the current fiscal
   year. Actual expenses may be different. "Other Expenses" also include an
   administrative services fee paid to the Advisor in the amount of 0.10%.

3  The Advisor has contractually agreed through _______ __, 20__ to waive a
   portion of its fees and reimburse expenses so that total annual operating
   expenses will not exceed ____%, excluding certain expenses such as
   extraordinary expenses, taxes, brokerage, interest, and organizational and
   offering expenses (limited to ___% and incurred only in the first year of
   the fund's operations).

Based on the costs above, this example helps you compare the expenses of the
fund to those of other mutual funds. This example assumes the expenses above
remain the same. It also assumes that you invested $10,000, earned 5% annual
returns and reinvested all dividends and distributions. This is only an
example; actual expenses will be different.


<TABLE>
<CAPTION>
EXAMPLE                    1 YEAR      3 YEARS
<S>                       <C>         <C>
 Institutional Class          $           $
</TABLE>



12 | DWS Global Infrastructure Fund
<PAGE>

OTHER POLICIES AND RISKS

           While the previous pages describe the main points of the fund's
           strategy and risks, there are a few other issues to know about:

           -  Although major changes tend to be infrequent, the fund's Board
              could change the fund's investment objective without seeking
              shareholder approval.

           -  As a temporary defensive measure, the fund could shift up to 100%
              of assets into investments such as money market securities. This
              could prevent losses, but, while engaged in a temporary defensive
              position, the fund will not be pursuing its investment objective.
              However, portfolio management may choose not to use these
              strategies for various reasons, even in volatile market
              conditions.


           For more information

           This prospectus doesn't tell you about every policy or risk of
           investing in the fund.

           If you want more information on the fund's allowable securities and
           investment practices and the characteristics and risks of each one,
           you may want to request a copy of the Statement of Additional
           Information (the back cover tells you how to do this).

           Keep in mind that there is no assurance that the fund will achieve
           its objective.

           A complete list of the fund's portfolio holdings is posted as of the
           month-end on www.dws-scudder.com (the Web site does not form a part
           of this prospectus) on or after the last day of the following month.
           This posted information generally remains accessible at least until
           the date on which the fund files its Form N-CSR or N-Q with the
           Securities and Exchange Commission for the period that includes the
           date as of which the posted information is current. In addition, the
           fund's top ten equity holdings and other fund information is posted
           on www.dws-scudder.com as of the calendar quarter-end on or after
           the 15th day following quarter-end. The fund's Statement of
           Additional Information includes a description of the fund's policies
           and procedures with respect to the disclosure of the fund's
           portfolio holdings.


                                                  Other Policies and Risks  | 13
<PAGE>

WHO MANAGES AND OVERSEES THE FUND


           The investment advisor

           Deutsche Investment Management Americas Inc. ("DIMA" or the
           "Advisor"), with headquarters at 345 Park Avenue, New York, NY
           10154, is the investment advisor for the fund. Under the oversight
           of the Board, the Advisor, or the subadvisor, makes investment
           decisions, buys and sells securities for the fund and conducts
           research that leads to these purchase and sale decisions. The
           Advisor provides a full range of global investment advisory services
           to institutional and retail clients.

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

           Deutsche Asset Management is a global asset management organization
           that offers a wide range of investing expertise and resources,
           including hundreds of portfolio managers and analysts and an office
           network that reaches the world's major investment centers. This
           well-resourced global investment platform brings together a wide
           variety of experience and investment insight across industries,
           regions, asset classes and investing styles.

           The Advisor 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.

           MANAGEMENT FEE. The Advisor will receive a management fee from the
           fund. Below is the fee rate to be paid by the fund, which is based
           upon the fund's average daily net assets:

           The fund pays the Advisor under the investment management agreement
           a fee, calculated daily and paid monthly, at the annual rate of
           ____% of the fund's average daily net assets.

           The fund's shareholder report for the fiscal period ended June 30,
           2008 will contain a discussion regarding the basis for the Board's
           approval of the fund's investment management agreement and
           subadvisory agreement (see "Shareholder reports" on the back cover).



14 | Who Manages and Oversees the Fund
<PAGE>

           Under a separate administrative services agreement between the fund
           and the Advisor, the fund pays the Advisor for providing most of the
           fund's administrative services.


           The Subadvisor


           Subadvisor for DWS RREEF Global Infrastructure Fund

           RREEF America LLC ("RREEF"), an indirect, wholly owned subsidiary of
           Deutsche Bank AG, is the subadvisor for DWS RREEF Global
           Infrastructure Fund. RREEF, a registered investment advisor, is
           located at 875 N. Michigan Avenue, Chicago, Illinois 60611. DIMA
           pays a fee to RREEF for acting as subadvisor to DWS RREEF Global
           Infrastructure Fund.

           RREEF makes the investment decisions, buys and sells securities for
           DWS RREEF Global Infrastructure Fund and conducts research that
           leads to these purchase and sale decisions.

           RREEF has provided real estate investment management services to
           institutional investors since 1975 across a diversified portfolio of
           industrial properties, office buildings, residential apartments and
           shopping centers. RREEF has also been an investment advisor of real
           estate securities since 1993.

           The sub-subadvisors

           Pursuant to investment subadvisory agreements between RREEF and
           RREEF Global Advisers Limited, Deutsche Asset Management (Hong Kong)
           Limited and Deutsche Investments Australia Limited (the
           "sub-subadvisors"), these entities act as sub-subadvisors to the
           fund. The sub-subadvisors are indirect, wholly owned subsidiaries of
           Deutsche Bank AG. As sub-subadvisors, under the supervision of the
           Board of Trustees, DIMA and RREEF, the sub-subadvisors manage the
           fund's investments in specific foreign markets. RREEF allocates, and
           reallocates as it deems appropriate, the fund's assets among the
           sub-subadvisors.

           RREEF Global Advisers Limited, Winchester House, 1 Great Winchester
           Street, London, United Kingdom, EC2N 2DB, manages stock selection
           decisions for the European portion of the fund's portfolio. Deutsche
           Asset Management (Hong Kong) Limited, 55/F Cheung Kong Centre, 2
           Queen's Road Central, Hong Kong, China, and Deutsche Investments
           Australia Limited, Level 21, 83 Clarence Street, Sydney, Australia,
           NSW, 2000, manage the stock selection decisions for the Asian and
           Australian portions of the fund's portfolio, respectively.


                                         Who Manages and Oversees the Fund  | 15
<PAGE>

Portfolio management

The fund is managed by a team of investment professionals who collaborate to
develop and implement the fund's investment strategy. Each portfolio manager on
the team has authority over all aspects of the fund's investment portfolio,
including, but not limited to, purchases and sales of individual securities,
portfolio construction techniques, portfolio risk assessment and the management
of daily cash flows in accordance with portfolio holdings.

The following people handle the day-to-day management of the fund.

Daniel Ekins
Managing Director of Deutsche Asset Management and Portfolio Manager of the
fund.
- Joined RREEF in 1997, Deutsche Asset Management in 2002 and the fund in 2008.
- Over 22 years of investment industry experience.
- BS, University of South Australia.

Francis Greywitt
Vice President of Deutsche Asset Management and Portfolio Manager of the fund.
- Joined RREEF and Deutsche Asset Management in 2005, and the fund in 2008.
- Prior to that, REIT analyst with KeyBanc Capital Markets covering the office
  sector.
- Over [eight] years of investment industry experience.
- BBA, St. Bonaventure University.

John Hammond
Managing Director of Deutsche Asset Management and Portfolio Manager of the
fund.
- Joined RREEF and Deutsche Asset Management in 2004, and the fund in 2008.
- Prior to that, Director at Schroder Property Investment Management; Director
  at Henderson Global Investors.
- Over 15 years of investment industry experience.

- BSc, University of Reading, UK.

John F. Robertson, CFA
Managing Director of Deutsche Asset Management, Partner of RREEF and Lead
Portfolio Manager of the fund.
- Joined RREEF in 1997, Deutsche Asset Management in 2002 and the fund in 2008.
- Over 17 years of investment industry experience.
- BA, Wabash College; MBA, Indiana University.

John W. Vojticek
Managing Director of Deutsche Asset Management, Partner of RREEF and Portfolio
Manager of the fund.
- Joined RREEF and Deutsche Asset Management in 2004 and the fund in 2008.
- Prior to that, Principal at KG Redding and Associates, March 2004-September
  2004.
- Prior to that, Managing Director of RREEF from 1996-March 2004 and Deutsche
  Asset Management from 2002-March 2004.
- Over 12 years of investment industry experience.
- BS, University of Southern California.

The fund's Statement of Additional Information provides additional information
about a portfolio manager's investments in the fund, a description of the
portfolio management compensation structure and information regarding other
accounts managed.


16 | Who Manages and Oversees the Fund
<PAGE>

FINANCIAL HIGHLIGHTS

Since the fund is newly offered, financial highlights information is not
available.

                                         Who Manages and Oversees the Fund  | 17
<PAGE>

HOW TO INVEST IN THE FUND

THE FOLLOWING PAGES TELL YOU HOW TO INVEST IN THE FUND AND WHAT TO EXPECT AS A
SHAREHOLDER. The following pages also tell you about many of the services,
choices and benefits of being a shareholder. You'll also find information on
how to check the status of your account using the method that's most convenient
for you.

If you're investing directly with DWS Scudder, all of this information applies
to you. If you're investing through a "third party provider" - for example, a
workplace retirement plan, financial supermarket or financial advisor - your
provider may have its own policies or instructions and you should follow those.


You can find out more about the topics covered here by speaking with your
FINANCIAL ADVISOR OR A REPRESENTATIVE OF YOUR WORKPLACE RETIREMENT PLAN OR
OTHER INVESTMENT PROVIDER.

<PAGE>

Buying and Selling INSTITUTIONAL CLASS Shares


           You may buy Institutional Class shares through your securities
           dealer or through any financial institution that is authorized to
           act as a shareholder servicing agent ("financial advisor"). Contact
           them for details on how to place and pay for your order. Your
           financial advisor may also receive compensation from the Advisor
           and/or its affiliates. For more information, please see "Financial
           intermediary support payments."

           You may also buy Institutional Class shares by sending your check
           (along with a completed account application) directly to DWS Scudder
           Investments Service Company (the "transfer agent"). Your purchase
           order may not be accepted if the fund withdraws the offering of fund
           shares, the sale of fund shares has been suspended or if it is
           determined that your purchase would be detrimental to the interests
           of the fund's shareholders.


           Eligibility requirements

           You may buy Institutional Class shares if you are any of the
           following:

           -  An eligible institution (e.g., a financial institution,
              corporation, trust, estate or educational, religious or
              charitable institution).

           -  An employee benefit plan with assets of at least $50 million.

           -  A registered investment advisor or financial planner purchasing
              on behalf of clients and charging an asset-based or
              hourly fee.

           -  A client of the private banking division of Deutsche Bank AG.

           -  A current or former director or trustee of the Deutsche or DWS
              mutual funds.

           -  An employee, the employee's spouse or life partner and children
              or stepchildren age 21 or younger of Deutsche Bank or its
              affiliates or a subadvisor to any fund in the DWS family of funds
              or a broker-dealer authorized to sell shares in the funds.


           Investment minimum

           Your initial investment must be for at least $1,000,000. There are
           no minimum subsequent investment requirements.


                             Buying and Selling Institutional Class Shares  | 19
<PAGE>

           The minimum initial investment is waived for:

           -  Investment advisory affiliates of Deutsche Bank Securities, Inc.,
              DWS funds or Deutsche funds purchasing shares for the accounts of
              their investment advisory clients.

           -  Employee benefit plans with assets of at least $50 million.

           -  Clients of the private banking division of Deutsche Bank AG.

           -  Institutional clients and qualified purchasers that are clients
              of a division of Deutsche Bank AG.

           -  A current or former director or trustee of the Deutsche or DWS
              mutual funds.

           -  An employee, the employee's spouse or life partner and children
              or stepchildren age 21 or younger of Deutsche Bank or its
              affiliates or a subadvisor to any fund in the DWS family of funds
              or a broker-dealer authorized to sell shares of the funds.

           -  Registered investment advisors who trade through platforms
              approved by the Advisor and whose client assets in the fund in
              the aggregate meet (or, in the Advisor's judgment, will meet
              within a reasonable period of time) the $1,000,000 minimum
              investment.

           The fund reserves the right to modify the above eligibility
           requirements and investment minimum at any time.


           How to contact the transfer agent


<TABLE>
<S>                       <C>
  BY PHONE:               (800) 730-1313
  FIRST INVESTMENTS       DWS Scudder Investments Service Company
  BY MAIL:                P.O. Box 219210
                          Kansas City, MO 64121-9210
  ADDITIONAL              DWS Scudder Investments Service Company
  INVESTMENTS BY          P.O. Box 219210
  MAIL:                   Kansas City, MO 64121-9210
  BY OVERNIGHT MAIL:      DWS Scudder Investments Service Company
                          210 West 10th Street
                          Kansas City, MO 64105-1614
</TABLE>


           You can reach the automated information line, 24 hours a day,
           7 days a week by calling (800) 621-1048.


20 | Buying and Selling Institutional Class Shares
<PAGE>

           How to open your fund account

<TABLE>
<S>                  <C>
  MAIL:              Complete and sign the account application that
                     accompanies this prospectus. (You may obtain
                     additional applications by calling the transfer agent.)
                     Mail the completed application along with a check
                     payable to the fund you have selected to the transfer
                     agent. Be sure to include the fund number. The
                     applicable addresses are shown under "How to
                     contact the transfer agent."
  WIRE:              Call the transfer agent to set up a wire account.
  FUND NAME AND      Please use the complete fund name. Refer to "The
  FUND NUMBER:       Fund's Main Investment Strategy" above for the fund
                     number.
</TABLE>


           Please note that your account cannot become activated until we
           receive a completed account application.


           How to BUY and SELL shares

           MAIL:

           BUYING: Send your check, payable to the fund you have selected, to
           the transfer agent. Be sure to include the fund number and your
           account number on your check. If you are investing in more than one
           fund, make your check payable to "DWS Scudder" and include your
           account number, the names and numbers of the funds you have
           selected, and the dollar amount or percentage you would like
           invested in each fund. Mailing addresses are shown under "How to
           contact the transfer agent."

           SELLING: Send a signed letter to the transfer agent with your name,
           your fund number and account number, the fund's name, and either the
           number of shares you wish to sell or the dollar amount you wish to
           receive. See "Signature Guarantee" for any applicable additional
           requirements. Unless exchanging into another DWS fund, you must
           submit a written authorization to sell shares in a retirement
           account.

           WIRE:

           BUYING: You may buy shares by wire only if your account is
           authorized to do so. Please note that you or your financial advisor
           must call Institutional Investment Services at (800) 730-1313 to
           notify us in advance of a wire transfer purchase. After you inform
           Institutional Investment Services of the amount of your purchase,
           you will receive a trade confirmation number. Instruct your bank to
           send payment by


                             Buying and Selling Institutional Class Shares  | 21
<PAGE>

           wire using the wire instructions noted below. All wires must be
           received by 4:00 p.m. Eastern time the next business day following
           your purchase. If your wire is not received by 4:00 p.m. Eastern
           time on the next business day after the fund receives your request
           to purchase shares, your transaction will be canceled at your
           expense and risk.


<TABLE>
<S>                <C>
  BANK NAME:        State Street Bank, Boston
  ROUTING NO:       11000028
  ATTN:             DWS Scudder
  DDA NO:           9903-5552
  FBO:              (Account name) (Account number)
  CREDIT:           (Fund name, Fund number and, if applicable, class
                     name) (see "How to open your fund account")
</TABLE>


           Refer to your account statement for the account name and number.
           Wire transfers normally take two or more hours to complete. Wire
           transfers may be restricted on holidays and at certain other times.

           SELLING: You may sell shares by wire only if your account is
           authorized to do so. You will be paid for redeemed shares by wire
           transfer of funds to your financial advisor or bank upon receipt of
           a duly authorized redemption request as promptly as feasible. For
           your protection, you may not change the destination bank account
           over the phone. To sell by wire, contact your financial advisor or
           Institutional Investment Services at (800) 730-1313. After you
           inform Institutional Investment Services of the amount of your
           redemption, you will receive a trade confirmation number. The
           minimum redemption by wire is $1,000. We must receive your order by
           4:00 p.m. Eastern time to wire your account the next business day.

           TELEPHONE TRANSACTIONS:

           You may place orders to buy and sell over the phone by calling your
           financial advisor or Institutional Investment Services at (800)
           730-1313. If your shares are in an account with the transfer agent,
           you may (1) redeem by check in an amount up to $100,000, or by wire
           (minimum $1,000), or (2) exchange the shares for Institutional
           shares of another DWS fund by calling the transfer agent.


22 | Buying and Selling Institutional Class Shares
<PAGE>

           You may make regular investments from a bank checking account. For
           more information on setting up an automatic investment plan or
           payroll investment plan, call Institutional Investment Services at
           (800) 730-1313.


           Financial intermediary support payments

           The Advisor, DWS Scudder Distributors, Inc. (the "Distributor")
           and/or their affiliates may pay additional compensation, out of
           their own assets and not as an additional charge to the fund, to
           selected affiliated and unaffiliated brokers, dealers, participating
           insurance companies or other financial intermediaries ("financial
           advisors") in connection with the sale and/or distribution of fund
           shares or the retention and/or servicing of fund investors and fund
           shares ("revenue sharing"). Such revenue sharing payments are in
           addition to any distribution or service fees payable under any Rule
           12b-1 or service plan of the fund, any record keeping/sub-transfer
           agency/networking fees payable by the fund (generally through the
           Distributor or an affiliate) and/or the Distributor to certain
           financial advisors for performing such services and any sales
           charge, commissions, non-cash compensation arrangements expressly
           permitted under applicable rules of the Financial Industry
           Regulatory Authority or other concessions described in the fee table
           or elsewhere in this prospectus or the Statement of Additional
           Information as payable to all financial advisors. For example, the
           Advisor, the Distributor and/or their affiliates may compensate
           financial advisors for providing the fund with "shelf space" or
           access to a third party platform or fund offering list or other
           marketing programs, including, without limitation, inclusion of the
           fund on preferred or recommended sales lists, mutual fund
           "supermarket" platforms and other formal sales programs; granting
           the Distributor access to the financial advisor's sales force;
           granting the Distributor access to the financial advisor's
           conferences and meetings; assistance in training and educating the
           financial advisor's personnel; and obtaining other forms of
           marketing support.

           The level of revenue sharing payments made to financial advisors may
           be a fixed fee or based upon one or more of the following factors:
           gross sales, current assets and/or number of accounts of the fund
           attributable to the financial advisor, the particular fund or fund
           type or other measures as agreed to by the Advisor, the Distributor
           and/or their affiliates and the financial advisors or any
           combination thereof. The amount of


                             Buying and Selling Institutional Class Shares  | 23
<PAGE>

           these revenue sharing payments is determined at the discretion of
           the Advisor, the Distributor and/or their affiliates from time to
           time, may be substantial, and may be different for different
           financial advisors based on, for example, the nature of the services
           provided by the financial advisor.

           The Advisor, the Distributor and/or their affiliates currently make
           revenue sharing payments from their own assets in connection with
           the sale and/or distribution of DWS Fund shares or the retention
           and/or servicing of investors and DWS Fund shares to financial
           advisors in amounts that generally range from .01% up to .50% of
           assets of the fund serviced and maintained by the financial advisor,
           .10% to .25% of sales of the fund attributable to the financial
           advisor, a flat fee of $12,500 up to $500,000, or any combination
           thereof. These amounts are subject to change at the discretion of
           the Advisor, the Distributor and/or their affiliates. Receipt of, or
           the prospect of receiving, this additional compensation may
           influence your financial advisor's recommendation of the fund or of
           any particular share class of the fund. You should review your
           financial advisor's compensation disclosure and/or talk to your
           financial advisor to obtain more information on how this
           compensation may have influenced your financial advisor's
           recommendation of the fund. Additional information regarding these
           revenue sharing payments is included in the fund's Statement of
           Additional Information, which is available to you on request at no
           charge (see the back cover of this prospectus for more information
           on how to request a copy of the Statement of Additional
           Information).

           The Advisor, the Distributor and/or their affiliates may also make
           such revenue sharing payments to financial advisors under the terms
           discussed above in connection with the distribution of both DWS
           funds and non-DWS funds by financial advisors to retirement plans
           that obtain record keeping services from ADP, Inc. on the DWS
           Scudder branded retirement plan platform (the "Platform") with the
           level of revenue sharing payments being based upon sales of both the
           DWS funds and the non-DWS funds by the financial advisor on the
           Platform or current assets of both the DWS funds and the non-DWS
           funds serviced and maintained by the financial advisor on the
           Platform.

           It is likely that broker-dealers that execute portfolio transactions
           for the fund will include firms that also sell shares of the DWS
           funds to their customers. However, the Advisor will not consider
           sales of DWS fund shares as a factor in the selection


24 | Buying and Selling Institutional Class Shares
<PAGE>

           of broker-dealers to execute portfolio transactions for the DWS
           funds. Accordingly, the Advisor has implemented policies and
           procedures reasonably designed to prevent its traders from
           considering sales of DWS fund shares as a factor in the selection of
           broker-dealers to execute portfolio transactions for the fund. In
           addition, the Advisor, the Distributor and/or their affiliates will
           not use fund brokerage to pay for their obligation to provide
           additional compensation to financial advisors as described above.


POLICIES YOU SHOULD KNOW ABOUT

           Along with the information on the previous pages, the policies below
           may affect you as a shareholder. Some of this information, such as
           the section on distributions and taxes, applies to all investors,
           including those investing through a financial advisor.

           If you are investing through a financial advisor or through a
           retirement plan, check the materials you received from them about
           how to buy and sell shares because particular financial advisors or
           other intermediaries may adopt policies, procedures or limitations
           that are separate from those described by the fund. Please note that
           a financial advisor may charge fees separate from those charged by
           the fund and may be compensated by the fund.

           Keep in mind that the information in this prospectus applies only to
           the shares offered herein. Other share classes are described in
           separate prospectuses and have different fees, requirements and
           services.

           In order to reduce the amount of mail you receive and to help reduce
           expenses, we generally send a single copy of any shareholder report
           and prospectus to each household. If you do not want the mailing of
           these documents to be combined with those for other members of your
           household, please contact your financial advisor or call (800)
           730-1313.


                                            Policies You Should Know About  | 25
<PAGE>

           Policies about transactions

           THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
           is open. The fund calculates its share price for each class every
           business day, as of the close of regular trading on the New York
           Stock Exchange (typically 4:00 p.m. Eastern time, but sometimes
           earlier, as in the case of scheduled half-day trading or unscheduled
           suspensions of trading). You can place an order to buy or sell
           shares at any time.

           To help the government fight the funding of terrorism and money
           laundering activities, federal law requires all financial
           institutions to obtain, verify and record information that
           identifies each person who opens an account. What this means to you:
           When you open an account, we will ask for your name, address, date
           of birth and other information that will allow us to identify you.
           Some or all of this information will be used to verify the identity
           of all persons opening an account.

           We might request additional information about you (which may include
           certain documents, such as articles of incorporation for companies)
           to help us verify your identity and, in some cases, the information
           and/or documents may be required to conduct the verification. The
           information and documents will be used solely to verify your
           identity.

           We will attempt to collect any missing required and requested
           information by contacting you or your financial advisor. If we are
           unable to obtain this information within the time frames established
           by the fund, then we may reject your application and order.

           The fund will not invest your purchase until all required and
           requested identification information has been provided and your
           application has been submitted in "good order." After we receive all
           the information, your application is deemed to be in good order and
           we accept your purchase, you will receive the net asset value per
           share next calculated.

           If we are unable to verify your identity within time frames
           established by the fund, after a reasonable effort to do so, you
           will receive written notification.

           With certain limited exceptions, only US residents may invest in the
           fund.


26 | Policies You Should Know About
<PAGE>

           Because orders placed through a financial advisor must be forwarded
           to the transfer agent before they can be processed, you'll need to
           allow extra time. Your financial advisor should be able to tell you
           approximately when your order will be processed. It is the
           responsibility of your financial advisor to forward your order to
           the transfer agent in a timely manner.

           SUB-MINIMUM BALANCES. The fund may redeem your shares and close your
           account on 60 days' notice if it fails to meet the minimum account
           balance requirement of $1,000,000 for any reason other than a change
           in market value.

           MARKET TIMING POLICIES AND PROCEDURES. Short-term and excessive
           trading of fund shares may present risks to long-term shareholders,
           including potential dilution in the value of fund shares,
           interference with the efficient management of the fund's portfolio
           (including losses on the sale of investments), taxable gains to
           remaining shareholders and increased brokerage and administrative
           costs. These risks may be more pronounced if the fund invests in
           certain securities, such as those that trade in foreign markets, are
           illiquid or do not otherwise have "readily available market
           quotations." Certain investors may seek to employ short-term trading
           strategies aimed at exploiting variations in portfolio valuation
           that arise from the nature of the securities held by the fund (e.g.,
           "time zone arbitrage"). The fund discourages short-term and
           excessive trading and has adopted policies and procedures that are
           intended to detect and deter short-term and excessive trading.

           Pursuant to its policies, the fund will impose a 2% redemption fee
           on fund shares held for less than a specified holding period
           (subject to certain exceptions discussed below under "Redemption
           fees"). The fund also reserves the right to reject or cancel a
           purchase or exchange order for any reason without prior notice. For
           example, the fund may in its discretion reject or cancel a purchase
           or an exchange order even if the transaction is not subject to the
           specific roundtrip transaction limitation described below if the
           Advisor believes that there appears to be a pattern of short-term or
           excessive trading activity by a shareholder or deems any other
           trading activity harmful or disruptive to the fund. The fund,
           through its Advisor and transfer agent, will measure short-term and
           excessive trading by the number of roundtrip transactions within a
           shareholder's account during a rolling 12-month period. A
           "roundtrip" transaction is defined as any combination of purchase
           and redemption activity


                                            Policies You Should Know About  | 27
<PAGE>

           (including exchanges) of the same fund's shares. The fund may take
           other trading activity into account if the fund believes such
           activity is of an amount or frequency that may be harmful to
           long-term shareholders or disruptive to portfolio management.

           Shareholders are limited to four roundtrip transactions in the same
           DWS Fund (excluding money market funds) over a rolling 12-month
           period. Shareholders with four or more roundtrip transactions in the
           same DWS Fund within a rolling 12-month period generally will be
           blocked from making additional purchases of, or exchanges into, that
           DWS Fund. The fund has sole discretion whether to remove a block
           from a shareholder's account. The rights of a shareholder to redeem
           shares of a DWS Fund are not affected by the four roundtrip
           transaction limitation, but all redemptions remain subject to the
           fund's redemption fee policy (see "Redemption fees" described
           below).

           The fund may make exceptions to the roundtrip transaction policy for
           certain types of transactions if, in the opinion of the Advisor, the
           transactions do not represent short-term or excessive trading or are
           not abusive or harmful to the fund, such as, but not limited to,
           systematic transactions, required minimum retirement distributions,
           transactions initiated by the fund or administrator and transactions
           by certain qualified fund-of-fund(s).

           In certain circumstances where shareholders hold shares of the fund
           through a financial intermediary, the fund may rely upon the
           financial intermediary's policy to deter short-term or excessive
           trading if the Advisor believes that the financial intermediary's
           policy is reasonably designed to detect and deter transactions that
           are not in the best interests of the fund. A financial
           intermediary's policy relating to short-term or excessive trading
           may be more or less restrictive than the DWS Funds' policy, may
           permit certain transactions not permitted by the DWS Funds'
           policies, or prohibit transactions not subject to the DWS Funds'
           policies.

           The Advisor may also accept undertakings from a financial
           intermediary to enforce short-term or excessive trading policies on
           behalf of the fund that provide a substantially similar level of
           protection for the fund against such transactions. For example,
           certain financial intermediaries may have contractual, legal or


28 | Policies You Should Know About
<PAGE>

           operational restrictions that prevent them from blocking an account.
           In such instances, the financial intermediary may use alternate
           techniques that the Advisor considers to be a reasonable substitute
           for such a block.

           In addition, if the fund invests some portion of its assets in
           foreign securities, it has adopted certain fair valuation practices
           intended to protect the fund from "time zone arbitrage" with respect
           to its foreign securities holdings and other trading practices that
           seek to exploit variations in portfolio valuation that arise from
           the nature of the securities held by the fund. (See "How the fund
           calculates share price.")

           There is no assurance that these policies and procedures will be
           effective in limiting short-term and excessive trading in all cases.
           For example, the Advisor may not be able to effectively monitor,
           detect or limit short-term or excessive trading by underlying
           shareholders that occurs through omnibus accounts maintained by
           broker-dealers or other financial intermediaries. The Advisor
           reviews trading activity at the omnibus level to detect short-term
           or excessive trading. If the Advisor has reason to suspect that
           short-term or excessive trading is occurring at the omnibus level,
           the Advisor will contact the financial intermediary to request
           underlying shareholder level activity. Depending on the amount of
           fund shares held in such omnibus accounts (which may represent most
           of the fund's shares) short-term and/or excessive trading of fund
           shares could adversely affect long-term shareholders in the fund. If
           short-term or excessive trading is identified, the Advisor will take
           appropriate action.

           The fund's market timing policies and procedures may be modified or
           terminated at any time.

           REDEMPTION FEES. The fund imposes a redemption fee of 2% of the
           total redemption amount (calculated at net asset value) on all fund
           shares redeemed or exchanged within 15 days of buying them (either
           by purchase or exchange). The redemption fee is paid directly to the
           fund and is designed to encourage long-term investment and to offset
           transaction and other costs associated with short-term or excessive
           trading. For purposes of determining whether the redemption fee
           applies, shares held the longest time will be treated as being
           redeemed first and shares held the shortest time will be treated as
           being redeemed last.


                                            Policies You Should Know About  | 29
<PAGE>

           The redemption fee is applicable to fund shares purchased either
           directly or through a financial intermediary, such as a
           broker-dealer. Transactions through financial intermediaries
           typically are placed with the fund on an omnibus basis and include
           both purchase and sale transactions placed on behalf of multiple
           investors. These purchase and sale transactions are generally netted
           against one another and placed on an aggregate basis; consequently
           the identities of the individuals on whose behalf the transactions
           are placed generally are not known to the fund. For this reason, the
           fund has undertaken to notify financial intermediaries of their
           obligation to assess the redemption fee on customer accounts and to
           collect and remit the proceeds to the fund. However, due to
           operational requirements, the intermediaries' methods for tracking
           and calculating the fee may be inadequate or differ in some respects
           from the fund's.

           The redemption fee will not be charged in connection with the
           following exchange or redemption transactions: (i) transactions on
           behalf of participants in certain research wrap programs; (ii)
           transactions on behalf of a shareholder to return any excess IRA
           contributions to the shareholder; (iii) transactions on behalf of a
           shareholder to effect a required minimum distribution on an IRA;
           (iv) transactions on behalf of any mutual fund advised by the
           Advisor and its affiliates (e.g., "funds of funds") or, in the case
           of a master/feeder relationship, redemptions by the feeder fund from
           the master portfolio; (v) transactions on behalf of certain
           unaffiliated mutual funds operating as funds of funds; (vi)
           transactions following death or disability of any registered
           shareholder, beneficial owner or grantor of a living trust with
           respect to shares purchased before death or disability; (vii)
           transactions involving hardship of any registered shareholder;
           (viii) systematic transactions with pre-defined trade dates for
           purchases, exchanges or redemptions, such as automatic account
           rebalancing, or loan origination and repayments; (ix) transactions
           involving shares purchased through the reinvestment of dividends or
           other distributions; (x) transactions involving shares transferred
           from another account in the same fund or converted from another
           class of the same fund (the redemption fee period will carry over to
           the acquired shares); (xi) transactions initiated by the fund or
           administrator (e.g., redemptions for not meeting account minimums,
           to pay account fees funded by share redemptions, or in the event of
           the liquidation or merger of the fund); or (xii) transactions in
           cases when there are legal or contractual limitations or


30 | Policies You Should Know About
<PAGE>

           restrictions on the imposition of the redemption fee (as determined
           by the fund or its agents in their sole discretion). It is the
           policy of the DWS funds to permit approved fund platform providers
           to execute transactions within the funds without the imposition of a
           redemption fee if such providers have implemented alternative
           measures that are determined by the Advisor to provide controls on
           short-term and excessive trading that are comparable to the DWS
           funds' policies.

           THE AUTOMATED INFORMATION LINE IS AVAILABLE 24 HOURS A DAY BY
           CALLING (800) 621-1048. You can use our automated phone services to
           get information on DWS funds generally and on accounts held directly
           at DWS Scudder.

           QUICKBUY AND QUICKSELL let you set up a link between a DWS fund
           account and a bank account. Once this link is in place, you can move
           money between the two with a phone call. You'll need to make sure
           your bank has Automated Clearing House (ACH) services. Transactions
           take two to three days to be completed and there is a $50 minimum
           and a $250,000 maximum. To set up QuickBuy or QuickSell on a new
           account, see the account application; to add it to an existing
           account, call (800) 730-1313.

           TELEPHONE AND ELECTRONIC TRANSACTIONS. Generally, you are
           automatically entitled to telephone and electronic transaction
           privileges, but you may elect not to have them when you open your
           account or by contacting Institutional Investment Services at (800)
           730-1313 at a later date.

           Since many transactions may be initiated by telephone or
           electronically, it's important to understand that as long as we take
           reasonable steps to ensure that an order to purchase or redeem shares
           is genuine, such as recording calls or requesting personalized
           security codes or other information, we are not responsible for any
           losses that may occur as a result. For transactions conducted over
           the Internet, we recommend the use of a secure Internet browser. In
           addition, you should verify the accuracy of your confirmation
           statements immediately after you receive them.

           THE FUND DOES NOT ISSUE SHARE CERTIFICATES.





THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The DWS Scudder Web site can be a valuable resource for shareholders with
Internet access. Go to WWW.DWS-SCUDDER.COM to get up-to-date information, review
balances or even place orders for exchanges.





                                            Policies You Should Know About  | 31
<PAGE>

           WHEN YOU ASK US TO SEND OR RECEIVE A WIRE, please note that while we
           don't charge a fee to send or receive wires, it's possible that your
           bank may do so. Wire transactions are generally completed within 24
           hours. The fund can only send wires of $1,000 or more and accept
           wires of $50 or more.

           THE FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by check,
           bank or Federal Funds wire transfer or by electronic bank transfer.
           Please note that the fund does not accept cash, money orders,
           traveler's checks, starter checks, third party checks (except checks
           for retirement plan asset transfers and rollovers or for Uniform
           Gifts to Minors Act/Uniform Transfers to Minors Act accounts),
           checks drawn on foreign banks or checks issued by credit card
           companies or Internet-based companies. Thus, subject to the
           foregoing exceptions for certain third party checks, checks that are
           otherwise permissible must be drawn by the account holder on a
           domestic bank and must be payable to the fund.

           IF YOU PAY FOR SHARES BY CHECK and the check fails to clear, or if
           you order shares by phone and fail to pay for them by 4:00 p.m.
           Eastern time the next business day, we have the right to cancel your
           order, hold you liable or charge you or your account for any losses
           or fees the fund or its agents have incurred. To sell shares, you
           must state whether you would like to receive the proceeds by wire or
           check.

           SIGNATURE GUARANTEE. When you want to sell more than $100,000 worth
           of shares or send proceeds to a third party or to a new address,
           you'll usually need to place your order in writing and include a
           signature guarantee. However, if you want money wired to a bank
           account that is already on file with us, you don't need a signature
           guarantee. Also, generally you don't need a signature guarantee for
           an exchange, although we may require one in certain other
           circumstances.

           A signature guarantee is simply a certification of your signature - a
           valuable safeguard against fraud. You can get a signature guarantee
           from an eligible guarantor institution, including commercial banks,
           savings and loans, trust companies, credit unions, member firms of a
           national stock exchange or any member or participant of an approved
           signature guarantor program. Note that you can't get a signature
           guarantee from a notary public and we must be provided the original
           guarantee.




THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

If you ever have difficulty placing an order by phone or Internet, you can send
us your order in writing.











32 | Policies You Should Know About
<PAGE>

           SELLING SHARES OF TRUST ACCOUNTS AND BUSINESS OR ORGANIZATION
           ACCOUNTS may require additional documentation. Please call (800)
           730-1313 or contact your financial advisor for more information.

           MONEY FROM SHARES YOU SELL is normally sent out within one business
           day of when your order is processed (not when it is received),
           although it could be delayed for up to seven days. There are other
           circumstances when it could be longer, including, but not limited
           to, when you are selling shares you bought recently by check or ACH
           (the funds will be placed under a 10 calendar day hold to ensure
           good funds) or when unusual circumstances prompt the SEC to allow
           further delays. Certain expedited redemption processes may also be
           delayed when you are selling recently purchased shares or in the
           event of closing of the Federal Reserve Bank's wire payment system.
           In addition, the fund reserves the right to suspend or postpone
           redemptions as permitted pursuant to Section 22(e) of the Investment
           Company Act of 1940. Generally, those circumstances are when 1) the
           New York Stock Exchange is closed other than customary weekend or
           holiday closings; 2) trading on the New York Stock Exchange is
           restricted; 3) an emergency exists which makes the disposal of
           securities owned by the fund or the fair determination of the value
           of the fund's net assets not reasonably practicable; or 4) the SEC,
           by order, permits the suspension of the right of redemption.
           Redemption payments by wire may also be delayed in the event of a
           non-routine closure of the Federal Reserve wire payment system. For
           additional rights reserved by the fund, please see "Other rights we
           reserve."

           You may obtain additional information about other ways to sell your
           shares by contacting your financial advisor.

           ACCOUNT STATEMENTS. We or your financial advisor will generally
           furnish you with a written confirmation of every transaction that
           affects your account balance. You will also receive periodic
           statements reflecting the balances in your account.


           How the fund calculates share price

           To calculate net asset value, or NAV, each share class uses the
           following equation:


<TABLE>
<S>                                                     <C> <C>
            TOTAL ASSETS - TOTAL LIABILITIES
           -----------------------------------------    =    NAV
               TOTAL NUMBER OF SHARES OUTSTANDING
</TABLE>



                                            Policies You Should Know About  | 33
<PAGE>

           The price at which you buy and sell shares is the NAV.


           THE FUND CHARGES A REDEMPTION FEE EQUAL TO 2.00% of the value of
           shares redeemed or exchanged within 15 days of purchase. Please see
           "Policies about transactions - Redemption fees" for further
           information.

           WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN
           INDEPENDENT PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE.
           However, we may use methods approved by the fund's Board, such as a
           fair valuation model, which are intended to reflect fair value when
           pricing service information or market quotations are not readily
           available or when a security's value or a meaningful portion of the
           value of the fund's portfolio is believed to have been materially
           affected by a significant event, such as a natural disaster, an
           economic event like a bankruptcy filing, or a substantial
           fluctuation in domestic or foreign markets that has occurred between
           the close of the exchange or market on which the security is
           principally traded (for example, a foreign exchange or market) and
           the close of the New York Stock Exchange. In such a case, the fund's
           value for a security is likely to be different from the last quoted
           market price or pricing service information. In addition, due to the
           subjective and variable nature of fair value pricing, it is possible
           that the value determined for a particular asset may be materially
           different from the value realized upon such asset's sale. It is
           expected that the greater the percentage of fund assets that is
           invested in non-US securities, the more extensive will be the fund's
           use of fair value pricing. This is intended to reduce the fund's
           exposure to "time zone arbitrage" and other harmful trading
           practices. (See "Market timing policies and procedures.")

           TO THE EXTENT THAT THE FUND INVESTS IN SECURITIES THAT ARE TRADED
           PRIMARILY IN FOREIGN MARKETS, the value of its holdings could change
           at a time when you aren't able to buy or sell fund shares. This is
           because some foreign markets are open on days or at times when the
           fund doesn't price its shares. (Note that prices for securities that
           trade on foreign exchanges can change significantly on days when the
           New York Stock Exchange is closed and you cannot buy or sell fund
           shares. Price changes in the securities the fund owns may ultimately
           affect the price of fund shares the next time the NAV is
           calculated.)


           Other rights we reserve

           You should be aware that we may do any of the following:

34 | Policies You Should Know About
<PAGE>

           -  withdraw or suspend the offering of shares at any time

           -  withhold a portion of your distributions and redemption proceeds
              for federal income tax purposes if we have been notified by the
              IRS that you are subject to backup withholding or if you fail to
              provide us with a correct taxpayer ID number and certain
              certifications including certification that you are not subject
              to backup withholding

           -  reject a new account application if you don't provide any
              required or requested identifying information, or for any other
              reason

           -  refuse, cancel, limit or rescind any purchase or exchange order,
              without prior notice; freeze any account (meaning you will not be
              able to purchase fund shares in your account); suspend account
              services; and/or involuntarily redeem your account if we think
              that the account is being used for fraudulent or illegal
              purposes; one or more of these actions will be taken when, at our
              sole discretion, they are deemed to be in the fund's best
              interests or when the fund is requested or compelled to do so by
              governmental authority or by applicable law

           -  close and liquidate your account if we are unable to verify your
              identity, or for other reasons; if we decide to close your
              account, your fund shares will be redeemed at the net asset value
              per share next calculated after we determine to close your
              account (less any applicable redemption fee); you may recognize a
              gain or loss on the redemption of your fund shares and you may
              incur a tax liability

           -  pay you for shares you sell by "redeeming in kind," that is, by
              giving you securities (which typically will involve brokerage
              costs for you to liquidate) rather than cash, but which will be
              taxable to the same extent as a redemption for cash; the fund
              generally won't make a redemption in kind unless your requests
              over a 90-day period total more than $250,000 or 1% of the value
              of the fund's net assets, whichever is less

           -  change, add or withdraw various services, fees and account
              policies (for example, we may adjust the fund's investment
              minimums at any time)


                                            Policies You Should Know About  | 35
<PAGE>

UNDERSTANDING DISTRIBUTIONS AND TAXES

           The fund intends to distribute to its shareholders virtually all of
           its net earnings. The fund can earn money in two ways: by receiving
           interest, dividends or other income from securities it holds and by
           selling securities for more than it paid for them. (The fund's
           earnings are separate from any gains or losses stemming from your
           own purchase and sale of shares.) The fund may not always pay a
           dividend or distribution for a given period.

           THE FUND INTENDS TO PAY DIVIDENDS AND DISTRIBUTIONS to its
           shareholders in November or December and, if necessary, may do so at
           other times as well.

           Dividends or distributions declared to shareholders of record in the
           last quarter of a given calendar year are treated for federal income
           tax purposes as if they were received on December 31 of that year,
           provided such dividends or distributions are paid by the end of the
           following January.

           For federal income tax purposes, income and capital gains
           distributions are generally taxable to shareholders. However,
           dividends and distributions received by retirement plans qualifying
           for tax exemption under federal income tax laws generally will not
           be taxable.

           YOU CAN CHOOSE HOW TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS. You
           can have them all automatically reinvested in fund shares (at NAV),
           all deposited directly to your bank account or all sent to you by
           check, have one type reinvested and the other sent to you by check or
           have them invested in a different fund. Tell us your preference on
           your application. If you don't indicate a preference, your dividends
           and distributions will all be reinvested in shares of the fund
           without a sales charge (if applicable). Distributions are treated the
           same for federal income tax purposes whether you receive them in cash
           or reinvest them in additional shares. For employer-sponsored
           qualified plans, and retirement plans, reinvestment (at NAV) is the
           only option.

           BUYING, SELLING OR EXCHANGING FUND SHARES WILL USUALLY HAVE FEDERAL
           INCOME TAX CONSEQUENCES FOR YOU (except in employer-sponsored
           qualified plans, IRAs or other tax-advantaged accounts). Your sale of
           shares may result in a capital gain or loss.







THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

Because each shareholder's tax situation is unique, ask your tax professional
about the tax consequences of your investments, including any state and local
tax consequences.




36 | Understanding Distributions and Taxes
<PAGE>

           The gain or loss will be long-term or short-term depending on how
           long you owned the shares that were sold. For federal income tax
           purposes, an exchange is treated the same as a sale.

           THE FEDERAL INCOME TAX STATUS of the fund's earnings you receive and
           your own fund transactions generally depends on their type:


<TABLE>
<CAPTION>
GENERALLY TAXED AT LONG-TERM             GENERALLY TAXED AT ORDINARY
CAPITAL GAIN RATES:                      INCOME RATES:
<S>                                      <C>
DISTRIBUTIONS FROM THE FUND
- gains from the sale of                 -  gains from the sale of
  securities held (or treated as            securities held by the fund for
  held) by the fund for more                one year or less
  than one year                          -  all other taxable income
- qualified dividend income

TRANSACTIONS INVOLVING FUND
SHARES
- gains from selling fund                -  gains from selling fund
  shares held for more than                 shares held for one year or
  one year                                  less
</TABLE>


           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY THE FUND MAY BE
           SUBJECT TO FOREIGN WITHHOLDING TAXES. In that case, the fund's yield
           on those securities would generally be decreased. The fund may elect
           to pass through to its shareholders a credit or deduction for
           foreign taxes it has paid if at the end of its year more than 50% of
           the fund's total assets are stocks or securities of foreign
           corporations. In addition, any investments in foreign securities or
           foreign currencies may increase or accelerate the fund's recognition
           of ordinary income and may affect the timing or amount of the fund's
           distributions. If you invest in the fund through a taxable account,
           your after-tax return could be negatively impacted.

           To the extent that the fund invests in certain debt obligations or
           certain other securities, investments in these obligations or
           securities may cause the fund to recognize taxable income in excess
           of the cash generated by such obligations. Thus, the fund could be
           required at times to liquidate other investments in order to satisfy
           its distribution requirements.

           For taxable years beginning before January 1, 2011, distributions to
           individuals and other noncorporate shareholders of investment income
           designated by the fund as derived from qualified dividend income are
           eligible for taxation for federal


                                     Understanding Distributions and Taxes  | 37
<PAGE>

           income tax purposes at the more favorable long-term capital gain
           rates. Qualified dividend income generally includes dividends from
           domestic and some foreign corporations. It does not include income
           from investments in debt securities or, generally, from REITs. In
           addition, the fund must meet certain holding period and other
           requirements with respect to the dividend-paying stocks in its
           portfolio and the shareholder must meet certain holding period and
           other requirements with respect to the fund's shares for the lower
           tax rates to apply.

           For taxable years beginning before January 1, 2011, the maximum
           federal income tax rate imposed on long-term capital gains
           recognized by individuals and other noncorporate shareholders has
           been reduced to 15%. For taxable years beginning on or after January
           1, 2011, the long-term capital gain rate is scheduled to return to
           20%.

           YOUR FUND WILL SEND YOU DETAILED FEDERAL INCOME TAX INFORMATION
           EVERY JANUARY. These statements tell you the amount and the federal
           income tax classification of any dividends or distributions you
           received. They also have certain details on your purchases and sales
           of shares.

           IF YOU INVEST RIGHT BEFORE THE FUND PAYS A DIVIDEND, you'll be
           getting some of your investment back as a taxable dividend. You can
           avoid this by investing after the fund declares a dividend. In
           tax-advantaged retirement accounts you do not need to worry about
           this.

           CORPORATIONS are taxed at the same rates on ordinary income and
           capital gains but may be eligible for a dividends-received deduction
           for a portion of the income dividends they receive from the fund,
           provided certain holding period and other requirements are met.

           The above discussion summarizes certain federal income tax
           consequences for shareholders who are US persons. If you are a
           non-US person, please consult your own tax advisor with respect to
           the US tax consequences to you of an investment in the fund. For
           more information, see "Taxes" in the Statement of Additional
           Information.


38 | Understanding Distributions and Taxes
<PAGE>

APPENDIX
--------------------------------------------------------------------------------
           Hypothetical Expense Summary


           Using the annual fund operating expense ratios presented in the fee
           tables in the fund prospectus, the Hypothetical Expense Summary
           shows the estimated fees and expenses, in actual dollars, that would
           be charged on a hypothetical investment of $10,000 in the fund held
           for the next 10 years and the impact of such fees and expenses on
           fund returns for each year and cumulatively, assuming a 5% return
           for each year. The tables also assume that all dividends and
           distributions are reinvested. The annual fund expense ratios shown
           are net of any contractual fee waivers or expense reimbursements, if
           any, for the period of the contractual commitment. The tables do not
           reflect redemption fees, if any, which may be payable upon
           redemption. If redemption fees were shown, the "Hypothetical
           Year-End Balance After Fees and Expenses" amounts shown would be
           lower and the "Annual Fees and Expenses" amounts shown would be
           higher. Also, please note that if you are investing through a third
           party provider, that provider may have fees and expenses separate
           from those of the fund that are not reflected here. Mutual fund fees
           and expenses fluctuate over time and actual expenses may be higher
           or lower than those shown.

           The Hypothetical Expense Summary should not be used or construed as
           an offer to sell, a solicitation of an offer to buy or a
           recommendation or endorsement of any specific mutual fund. You
           should carefully review the fund's prospectus to consider the
           investment objectives, risks, expenses and charges of the fund prior
           to investing.


                                                                  Appendix  | 39
<PAGE>

DWS RREEF Global Infrastructure Fund - Institutional Class



<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES

<S>       <C>                <C>          <C>               <C>                <C>
   1            %               %               %                  $                 $
   2            %               %               %                  $                 $
   3            %               %               %                  $                 $
   4            %               %               %                  $                 $
   5            %               %               %                  $                 $
   6            %               %               %                  $                 $
   7            %               %               %                  $                 $
   8            %               %               %                  $                 $
   9            %               %               %                  $                 $
  10            %               %               %                  $                 $
  TOTAL                                                                              $
</TABLE>



40 | Appendix
<PAGE>

TO GET MORE INFORMATION

SHAREHOLDER REPORTS - These include commentary from the fund's management team
about recent market conditions and the effects of the fund's strategies on its
performance. They also have detailed performance figures, a list of everything
the fund owns, and its financial statements. Shareholders get these reports
automatically.

STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
fund's features and policies, including additional risk information. The SAI is
incorporated by reference into this document (meaning that it's legally part of
this prospectus).

For a free copy of any of these documents or to request other information about
the fund, call (800) 730-1313, or contact DWS Scudder at the address listed
below. The fund's SAI and shareholder reports are also available through the
DWS Scudder Web site at www.dws-scudder.com. These documents and other
information about the fund are available from the EDGAR Database on the SEC's
Internet site at www.sec.gov. If you like, you may obtain copies of this
information, after paying a copying fee, by e-mailing a request to
publicinfo@sec.gov or by writing the SEC at the address listed below. You can
also review and copy these documents and other information about the fund,
including the fund's SAI, 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.


<TABLE>
<CAPTION>
DWS SCUDDER              SEC                     DISTRIBUTOR
---------------------    --------------------    -------------------------------
<S>                      <C>                     <C>
PO Box 219210            100 F Street, N.E.      DWS Scudder Distributors, Inc.
Kansas City, MO          Washington, D.C.        222 South Riverside Plaza
64121-9210               20549-0102              Chicago, IL 60606-5808
WWW.DWS-SCUDDER.COM      WWW.SEC.GOV             (800) 621-1148
(800) 730-1313           (800) SEC-0330
</TABLE>



<TABLE>
<S>                                       <C>                                     <C>
SEC FILE NUMBER:
DWS Global/International Fund, Inc.       DWS RREEF Global Infrastructure Fund    811-4670
</TABLE>






(__/__/08) DGIF-1


[RECYCLE GRAPHIC APPEARS HERE]
                                                              [DWS SCUDDER LOGO]
                                                             Deutsche Bank Group

<PAGE>


                                  MAY 23, 2008







                                   PROSPECTUS
                              ------------------
                                    CLASS S

                      DWS RREEF GLOBAL INFRASTRUCTURE FUND

As with all mutual funds, the Securities and Exchange Commission (SEC) does not
approve or disapprove these shares or determine whether the information in this
prospectus is truthful or complete. It is a criminal offense for anyone to
inform you otherwise.


                            ONE GLOBAL FORCE. ONE FOCUS. YOU. [DWS SCUDDER LOGO]
                                                             Deutsche Bank Group


<PAGE>

CONTENTS




<TABLE>
<S>      <C>
HOW THE FUND WORKS
  4      The Fund's Main Investment
         Strategy
  6      The Main Risks of Investing in
         the Fund
 11      The Fund's Performance
         History
 12      How Much Investors Pay
 13      Other Policies and Risks
 14      Who Manages and Oversees
         the Fund
 17      Financial Highlights


</TABLE>
<TABLE>
<S>      <C>
HOW TO INVEST IN THE FUND
 19      How to Buy Shares
 20      How to Exchange or Sell
         Shares
 23      Policies You Should Know
         About
 34      Understanding Distributions
         and Taxes
 38      Appendix
</TABLE>

<PAGE>

HOW THE FUND WORKS

On the next few pages, you'll find information about the fund's investment
objective, the main strategies it uses to pursue that objective and the main
risks that could affect performance.

Whether you are considering investing in the fund or are already a shareholder,
you'll want to LOOK THIS INFORMATION OVER CAREFULLY. You may want to keep it on
hand for reference as well.

CLASS S shares are generally only available to new investors through fee-based
programs of investment dealers that have special agreements with the fund's
distributor, through certain group retirement plans and through certain
registered investment advisors. These dealers and advisors typically charge
ongoing fees for services they provide.

Remember that mutual funds are investments, not bank deposits. They're not
insured or guaranteed by the FDIC or any other government agency. Their share
prices will go up and down, and you could lose money by investing in them.

You can find DWS prospectuses on the Internet at WWW.DWS-SCUDDER.COM (the Web
site does not form a part of this prospectus).
<PAGE>


<TABLE>
<S>                                   <C>
                                        Class S
  fund number

    DWS GLOBAL INFRASTRUCTURE FUND


</TABLE>

            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks total return from both capital appreciation and
            current income through investment in a global portfolio of
            securities of infrastructure-related companies.

            Under normal circumstances, the fund invests at least 80% of its
            net assets in the securities of US and non-US
            infrastructure-related companies. The fund considers a company to
            be an infrastructure-related company if at least 50% of its assets
            are infrastructure assets or 50% of its gross income or net profits
            are derived, directly or indirectly, from the ownership,
            management, construction, operation, utilization or financing of
            infrastructure assets.

            Infrastructure assets are physical assets, structures and networks
            that provide necessary services and operations to society. Examples
            of infrastructure assets include transportation assets (e.g., toll
            roads, bridges, tunnels, parking facilities, railroads, rapid
            transit links, airports, refueling facilities and seaports),
            utility assets (e.g., electric transmission and distribution lines,
            power generation facilities, gas and water distribution facilities,
            sewage treatment plants, broadcast and wireless towers, and cable
            and satellite networks) and social assets (e.g., courthouses,
            hospitals, schools, correctional facilities, stadiums and
            subsidized housing). The fund focuses on investment in companies
            with a direct investment in infrastructure assets and deemphasizes
            investment in companies that operate or utilize infrastructure
            assets in their business (e.g., electric utilities, airlines) or
            companies with indirect exposure to infrastructure investment
            (e.g., suppliers of construction materials).

            The fund may invest in common, convertible and preferred stock,
            rights or warrants to purchase common stock, debt securities and
            listed limited partnership interests. Under normal circumstances,
            the majority of the fund's assets are


4 | DWS Global Infrastructure Fund
<PAGE>

            invested in securities of issuers organized or located outside the
            US or doing a substantial amount of business outside the US. The
            fund allocates its assets among various regions and countries,
            including exposure to emerging market countries.

            The fund may also invest in unlisted securities, provided that the
            portfolio managers expect such securities to be listed on a
            recognized public stock exchange or traded over the counter within
            six months from the time of investment. In addition, while the fund
            does not currently plan to hedge international currency risk, the
            fund may engage in foreign currency transactions, including foreign
            currency forward contracts, options, swaps and other similar
            transactions in connection with investments in securities of non-US
            companies.

            The portfolio managers utilize the insights of an in-house
            infrastructure industry group, which provides commentary on the
            political, regulatory, demographic and other salient
            characteristics of the countries and regions in which the fund
            invests. In selecting securities for the fund's portfolio, the
            portfolio managers incorporate both "top-down" and "bottom-up"
            investment insights and analysis.

            "TOP-DOWN" RESEARCH. The portfolio managers analyze various
            factors, including infrastructure market dynamics (e.g., supply/
            demand conditions), the economic environment (e.g., interest rates,
            inflation and economic growth), expected capital flow dynamics and
            exchange rate conditions. The portfolio managers combine this
            "top-down" analysis with "bottom-up" analysis at the company level
            where individual companies are evaluated.

            "BOTTOM-UP" RESEARCH. The portfolio managers analyze
            characteristics and investment prospects of a particular security
            relative to others in its local market, to actively manage the
            fund's exposure to individual securities within each region.
            Disciplined valuation analysis performed in each region drives this
            decision-making process, guiding the portfolio managers to invest
            in securities that they believe can provide superior returns over
            the long-term, and to sell those that they believe no longer
            represent the strongest prospects, relative to other opportunities.
            The focus of the fund's security selection strategy is to invest in
            securities with the potential for attractive total return,
            typically through a combination of


                                             DWS Global Infrastructure Fund  | 5
<PAGE>

            price appreciation and dividend income. It is expected that the
            majority of returns from the fund will be generated by
            security-specific investment decisions, which are the
            responsibility of portfolio managers located in the respective
            geographical regions.

            OTHER INVESTMENTS. The fund is permitted, but not required, to use
            various types of derivatives (contracts whose value is based on,
            for example, indices, currencies or securities). Derivatives may be
            used for hedging and for risk management or for non-hedging
            purposes to seek to enhance potential gains. The fund may use
            derivatives in circumstances where portfolio management believes
            they offer an economical means of gaining exposure to a particular
            asset class or to keep cash on hand to meet shareholder redemptions
            or other needs while maintaining exposure to the market.

            SECURITIES LENDING. The fund may lend its investment securities in
            an amount up to 33 1/3% of its total assets to approved
            institutional borrowers who need to borrow securities in order to
            complete certain transactions.


            THE MAIN RISKS OF INVESTING IN THE FUND

            There are several risk factors that could hurt the fund's
            performance, cause you to lose money or cause the fund's
            performance to trail that of other investments.

            STOCK MARKET RISK. An important factor with this fund is how stock
            markets perform - in this case US and foreign stock markets. When
            US and foreign stock prices fall, you should expect the value of
            your investment to fall as well. Compared to large company stocks,
            small company stocks tend to be more volatile, in part because
            these companies tend to be less established and the valuation of
            their stocks often depends on future expectations. Because a stock
            represents ownership in its issuer, stock prices can be hurt by
            poor management, shrinking product demand and other business risks.
            These may affect single companies as well as groups of companies.
            In addition, movements in financial markets may adversely affect a
            stock's price, regardless of how well the company performs. The
            market as a whole may not favor the types of investments the fund
            makes and the fund may not be able to get attractive prices for
            them.


6 | DWS Global Infrastructure Fund
<PAGE>

            SECURITY SELECTION RISK. A risk that pervades all investing is the
            risk that the securities in the fund's portfolio may decline in
            value.

            FOREIGN INVESTMENT RISK. Foreign investments involve certain
            special risks, including:

            -  POLITICAL RISK. Some foreign governments have limited the
               outflow of profits to investors abroad, imposed restrictions on
               the exchange or export of foreign currency, extended diplomatic
               disputes to include trade and financial relations, seized
               foreign investment and imposed higher taxes.

            -  INFORMATION RISK. Companies based in foreign markets are usually
               not subject to accounting, auditing and financial reporting
               standards and practices as stringent as those in the US.
               Therefore, their financial reports may present an incomplete,
               untimely or misleading picture of a company, as compared to the
               financial reports required in the US.

            -  LIQUIDITY RISK. Investments that trade less can be more
               difficult or more costly to buy, or to sell, than more liquid or
               active investments. This liquidity risk is a factor of the
               trading volume of a particular investment, as well as the size
               and liquidity of the entire local market. On the whole, foreign
               exchanges are smaller and less liquid than US exchanges. This
               can make buying and selling certain investments more difficult
               and costly. Relatively small transactions in some instances can
               have a disproportionately large effect on the price and supply
               of securities. In certain situations, it may become virtually
               impossible to sell an investment in an orderly fashion at a
               price that approaches portfolio management's estimate of its
               value. For the same reason, it may at times be difficult to
               value the fund's foreign investments.

            -  REGULATORY RISK. There is generally less government regulation
               of foreign markets, companies and securities dealers than in the
               US.

            -  CURRENCY RISK. The fund invests in securities denominated in
               foreign currencies. Changes in exchange rates between foreign
               currencies and the US dollar may affect the US dollar value of
               foreign securities or the income or gain received on these
               securities.

                                             DWS Global Infrastructure Fund  | 7
<PAGE>

            -  LIMITED LEGAL RECOURSE RISK. Legal remedies for investors may be
            more limited than the legal remedies available in the US.

            -  TRADING PRACTICE RISK. Brokerage commissions and other fees are
               generally higher for foreign investments than for US
               investments. The procedures and rules governing foreign
               transactions and custody may also involve delays in payment,
               delivery or recovery of money or investments.

            -  TAXES. Foreign withholding and certain other taxes may reduce
               the amount of income available to distribute to shareholders of
               the fund. In addition, special US tax considerations may apply
               to the fund's foreign investments.

            EMERGING MARKET RISK. All of the risks of investing in foreign
            securities are increased in connection with investments in emerging
            markets securities. In addition, profound social changes and
            business practices that depart from norms in developed countries'
            economies have hindered the orderly growth of emerging economies
            and their markets in the past and have caused instability. High
            levels of debt tend to make emerging economies heavily reliant on
            foreign capital and vulnerable to capital flight. Countries in
            emerging markets are also more likely to experience high levels of
            inflation, deflation or currency devaluation, which could also hurt
            their economies and securities markets. For these and other
            reasons, investments in emerging markets are often considered
            speculative.

            Some governments exercise substantial influence over the private
            economic sector and the social and political uncertainties that
            exist for many developing countries is significant. In adverse
            social and political circumstances, governments have been involved
            in policies of expropriation, confiscatory taxation,
            nationalization, intervention in the securities markets and trade
            settlement, and imposition of foreign investment restrictions and
            exchange controls.

            CONCENTRATION RISK. The fund concentrates its investments in
            infrastructure-related companies. A fund with a concentrated
            portfolio is vulnerable to the risks associated with the industries
            in which it invests, and is subject to greater risks and market
            fluctuations than funds investing in a broad range of industries.
            Infrastructure-related securities may have


8 | DWS Global Infrastructure Fund
<PAGE>

            increased susceptibility to risks associated with general or local
            economic conditions and political developments, changes in
            regulations, environmental problems, casualty losses and changes in
            interest rates.

            NON-DIVERSIFICATION RISK. The fund is classified as non-diversified
            under the Investment Company Act of 1940, as amended. This means
            that the fund may invest in securities of relatively few issuers.
            Thus, the performance of one or a small number of portfolio
            holdings can affect overall performance more than if the fund
            invested in a larger number of issuers.

            IPO RISK. Securities purchased in initial public offerings (IPOs)
            may be very volatile, rising and falling rapidly, often based,
            among other reasons, on investor perceptions rather than on
            economic reasons. Additionally, investments in IPOs may magnify the
            fund's performance if it has a small asset base. The fund is less
            likely to experience a similar impact on its performance as its
            assets grow because it is unlikely that the fund will be able to
            obtain proportionately larger IPO allocations.

            SMALL COMPANY CAPITALIZATION RISK. Small company stocks tend to
            experience steeper price fluctuations than the stocks of larger
            companies. A shortage of reliable information can also pose added
            risk. Industry-wide reversals may have a greater impact on small
            companies, since they lack a large company's financial resources.
            Small company stocks are typically less liquid than large company
            stocks. Accordingly, it may be harder to find a buyer for a small
            company's shares.

            CREDIT RISK. A fund purchasing bonds faces the risk that the
            creditworthiness of the issuer may decline, causing the value of
            the bonds to decline. In addition, an issuer may not be able to
            make timely payments on the interest and principal on the bonds it
            has issued. In some cases, bonds may decline in credit quality or
            go into default.

            INTEREST RATE RISK. Generally, fixed income securities will
            decrease in value when interest rates rise. The longer the
            effective maturity of the fund's securities, the more sensitive the
            fund will be to interest rate changes. (As a general rule, a 1%
            rise in interest rates means a 1% fall in value for every year of
            duration.) As interest rates decline, the issuers of securities
            held by the fund may prepay principal earlier than scheduled,
            forcing the fund to reinvest in lower-yielding securities and may
            reduce the fund's income. As interest rates


                                             DWS Global Infrastructure Fund  | 9
<PAGE>

            increase, slower than expected principal payments may extend the
            average life of fixed income securities. This will have the effect
            of locking in a below-market interest rate, increasing the fund's
            duration and reducing the value of such a security.

            PRICING RISK. At times, market conditions may make it difficult to
            value some investments, and the fund may use certain valuation
            methodologies for some of its investments, such as fair value
            pricing. Given the subjective nature of such valuation
            methodologies, it is possible that the value determined for an
            investment may be different than the value realized upon such
            investment's sale. If the fund has valued its securities too
            highly, you may pay too much for fund shares when you buy into the
            fund. If the fund has underestimated the price of its securities,
            you may not receive the full market value when you sell your fund
            shares.

            SECURITIES LENDING RISK. Any loss in the market price of securities
            loaned by the fund that occurs during the term of the loan would be
            borne by the fund and would adversely affect the fund's
            performance. Also, there may be delays in recovery of securities
            loaned or even a loss of rights in the collateral should the
            borrower of the securities fail financially while the loan is
            outstanding. However, loans will be made only to borrowers selected
            by the fund's delegate after a review of relevant facts and
            circumstances, including the creditworthiness of the borrower.

            DERIVATIVES RISK. Risks associated with derivatives include the
            risk that the derivative is not well correlated with the security,
            index or currency to which it relates; the risk that derivatives
            may result in losses or missed opportunities; the risk that the
            fund will be unable to sell the derivative because of an illiquid
            secondary market; the risk that a counterparty is unwilling or
            unable to meet its obligation; and the risk that the derivative
            transaction could expose the fund to the effects of leverage, which
            could increase the fund's exposure to the market and magnify
            potential losses. There is no guarantee that derivatives, to the
            extent employed, will have the intended effect, and their use could
            cause lower returns or even losses to the fund. The use of
            derivatives by the fund to hedge risk may reduce the opportunity
            for gain by offsetting the positive effect of favorable price
            movements.

            Another factor that could affect performance is:

10 | DWS Global Infrastructure Fund
<PAGE>

            -  portfolio management could be wrong in the analysis of
               industries, companies, economic trends, the relative
               attractiveness of different securities or other matters.


            THE FUND'S PERFORMANCE HISTORY

            Since the fund is newly offered, past performance information
            is not available.


                                            DWS Global Infrastructure Fund  | 11
<PAGE>

HOW MUCH INVESTORS PAY


The table below describes the fees and expenses that you may pay if you buy and
hold fund shares. This information doesn't include any fees that may be charged
by your financial advisor.


<TABLE>
<CAPTION>
FEE TABLE                                         CLASS S
<S>                                     <C>
 SHAREHOLDER FEES, paid directly from your investment
_______________________________________________________________________
 Redemption/Exchange Fee on shares
 owned less than 15 days (as % of
 redemption proceeds) 1                              2.00%

 ANNUAL OPERATING EXPENSES, deducted from fund assets
_______________________________________________________________________
 Management Fee                                        %
 Distribution/Service (12b-1) Fee                   None
 Other Expenses 2
 TOTAL ANNUAL OPERATING EXPENSES
 Less Expense Waiver/Reimbursement
 NET ANNUAL OPERATING EXPENSES 3
</TABLE>


1   This fee is charged on applicable redemptions or exchanges. Please see
   "Policies You Should Know About - Policies about transactions" for further
   information.

2   "Other Expenses" are based on estimated amounts for the current fiscal
   year. Actual expenses may be different. "Other Expenses" also include an
   administrative services fee paid to the Advisor in the amount of 0.10%.

3   The investment advisor has contractually agreed through ______ __, 20__ to
   waive a portion of its fees and reimburse expenses so that total annual
   operating expenses will not exceed ____% for Class S shares, excluding
   certain expenses such as extraordinary expenses, taxes, brokerage,
   interest, and organizational and offering expenses (limited to ___% and
   incurred only in the first year of the fund's operations).

Based on the costs above (including one year of capped expenses in each
period), this example helps you compare the expenses of the fund to those of
other mutual funds. This example assumes the expenses above remain the same. It
also assumes that you invested $10,000, earned 5% annual returns and reinvested
all dividends and distributions. This is only an example; actual expenses will
be different.


<TABLE>
<CAPTION>
EXAMPLE               1 YEAR      3 YEARS
<S>                  <C>         <C>
 Class S shares          $           $
</TABLE>



12 | DWS Global Infrastructure Fund
<PAGE>

OTHER POLICIES AND RISKS

           While the previous pages describe the main points of the fund's
           strategy and risks, there are a few other issues to know about:

           -  Although major changes tend to be infrequent, the fund's Board
              could change the fund's investment objective without seeking
              shareholder approval.

           -  As a temporary defensive measure, the fund could shift up to 100%
              of assets into investments such as money market securities. This
              could prevent losses, but, while engaged in a temporary defensive
              position, the fund will not be pursuing its investment objective.
              However, portfolio management may choose not to use these
              strategies for various reasons, even in volatile market
              conditions.


           For more information

           This prospectus doesn't tell you about every policy or risk of
           investing in the fund.

           If you want more information on the fund's allowable securities and
           investment practices and the characteristics and risks of each one,
           you may want to request a copy of the Statement of Additional
           Information (the back cover tells you how to do this).

           Keep in mind that there is no assurance that the fund will achieve
           its objective.

           A complete list of the fund's portfolio holdings is posted as of the
           month-end on www.dws-scudder.com (the Web site does not form a part
           of this prospectus) on or after the last day of the following month.
           This posted information generally remains accessible at least until
           the date on which the fund files its Form N-CSR or N-Q with the
           Securities and Exchange Commission for the period that includes the
           date as of which the posted information is current. In addition, the
           fund's top ten equity holdings and other fund information is posted
           on www.dws-scudder.com as of the calendar quarter-end on or after
           the 15th day following quarter-end. The fund's Statement of
           Additional Information includes a description of the fund's policies
           and procedures with respect to the disclosure of the fund's
           portfolio holdings.


                                                  Other Policies and Risks  | 13
<PAGE>

WHO MANAGES AND OVERSEES THE FUND


           The investment advisor

           Deutsche Investment Management Americas Inc. ("DIMA" or the
           "Advisor"), with headquarters at 345 Park Avenue, New York, NY
           10154, is the investment advisor for the fund. Under the oversight
           of the Board, the Advisor, or the subadvisor, makes investment
           decisions, buys and sells securities for the fund and conducts
           research that leads to these purchase and sale decisions. The
           Advisor provides a full range of global investment advisory services
           to institutional and retail clients.

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

           Deutsche Asset Management is a global asset management organization
           that offers a wide range of investing expertise and resources,
           including hundreds of portfolio managers and analysts and an office
           network that reaches the world's major investment centers. This
           well-resourced global investment platform brings together a wide
           variety of experience and investment insight across industries,
           regions, asset classes and investing styles.

           The Advisor 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.

           MANAGEMENT FEE. The Advisor will receive a management fee from the
           fund. Below is the fee rate to be paid by the fund, which is based
           upon the fund's average daily net assets:

           The fund pays the Advisor under the investment management agreement
           a fee, calculated daily and paid monthly, at the annual rate of
           ____% of the fund's average daily net assets.

           The fund's shareholder report for the fiscal period ended June 30,
           2008 will contain a discussion regarding the basis for the Board's
           approval of the fund's investment management agreement and
           subadvisory agreement (see "Shareholder reports" on the back cover).



14 | Who Manages and Oversees the Fund
<PAGE>

           Under a separate administrative services agreement between the fund
           and the Advisor, the fund pays the Advisor for providing most of the
           fund's administrative services.


           The Subadvisor


           Subadvisor for DWS RREEF Global Infrastructure Fund

           RREEF America LLC ("RREEF"), an indirect, wholly owned subsidiary of
           Deutsche Bank AG, is the subadvisor for DWS RREEF Global
           Infrastructure Fund. RREEF, a registered investment advisor, is
           located at 875 N. Michigan Avenue, Chicago, Illinois 60611. DIMA
           pays a fee to RREEF for acting as subadvisor to DWS RREEF Global
           Infrastructure Fund.

           RREEF makes the investment decisions, buys and sells securities for
           DWS RREEF Global Infrastructure Fund and conducts research that
           leads to these purchase and sale decisions.

           RREEF has provided real estate investment management services to
           institutional investors since 1975 across a diversified portfolio of
           industrial properties, office buildings, residential apartments and
           shopping centers. RREEF has also been an investment advisor of real
           estate securities since 1993.

           The sub-subadvisors

           Pursuant to investment subadvisory agreements between RREEF and
           RREEF Global Advisers Limited, Deutsche Asset Management (Hong Kong)
           Limited and Deutsche Investments Australia Limited (the
           "sub-subadvisors"), these entities act as sub-subadvisors to the
           fund. The sub-subadvisors are indirect, wholly owned subsidiaries of
           Deutsche Bank AG. As sub-subadvisors, under the supervision of the
           Board of Trustees, DIMA and RREEF, the sub-subadvisors manage the
           fund's investments in specific foreign markets. RREEF allocates, and
           reallocates as it deems appropriate, the fund's assets among the
           sub-subadvisors.

           RREEF Global Advisers Limited, Winchester House, 1 Great Winchester
           Street, London, United Kingdom, EC2N 2DB, manages stock selection
           decisions for the European portion of the fund's portfolio. Deutsche
           Asset Management (Hong Kong) Limited, 55/F Cheung Kong Centre, 2
           Queen's Road Central, Hong Kong, China, and Deutsche Investments
           Australia Limited, Level 21, 83 Clarence Street, Sydney, Australia,
           NSW, 2000, manage the stock selection decisions for the Asian and
           Australian portions of the fund's portfolio, respectively.


                                         Who Manages and Oversees the Fund  | 15
<PAGE>

Portfolio management

The fund is managed by a team of investment professionals who collaborate to
develop and implement the fund's investment strategy. Each portfolio manager on
the team has authority over all aspects of the fund's investment portfolio,
including, but not limited to, purchases and sales of individual securities,
portfolio construction techniques, portfolio risk assessment and the management
of daily cash flows in accordance with portfolio holdings.

The following people handle the day-to-day management of the fund.

Daniel Ekins
Managing Director of Deutsche Asset Management and Portfolio Manager of the
fund.
- Joined RREEF in 1997, Deutsche Asset Management in 2002 and the fund in 2008.
- Over 22 years of investment industry experience.
- BS, University of South Australia.

Francis Greywitt
Vice President of Deutsche Asset Management and Portfolio Manager of the fund.
- Joined RREEF and Deutsche Asset Management in 2005, and the fund in 2008.
- Prior to that, REIT analyst with KeyBanc Capital Markets covering the office
  sector.
- Over [eight] years of investment industry experience.
- BBA, St. Bonaventure University.

John Hammond
Managing Director of Deutsche Asset Management and Portfolio Manager of the
fund.
- Joined RREEF and Deutsche Asset Management in 2004, and the fund in 2008.
- Prior to that, Director at Schroder Property Investment Management; Director
  at Henderson Global Investors.
- Over 15 years of investment industry experience.

- BSc, University of Reading, UK.

John F. Robertson, CFA
Managing Director of Deutsche Asset Management, Partner of RREEF and Lead
Portfolio Manager of the fund.
- Joined RREEF in 1997, Deutsche Asset Management in 2002 and the fund in 2008.
- Over 17 years of investment industry experience.
- BA, Wabash College; MBA, Indiana University.

John W. Vojticek
Managing Director of Deutsche Asset Management, Partner of RREEF and Portfolio
Manager of the fund.
- Joined RREEF and Deutsche Asset Management in 2004 and the fund in 2008.
- Prior to that, Principal at KG Redding and Associates, March 2004-September
   2004.
- Prior to that, Managing Director of RREEF from 1996-March 2004 and Deutsche
   Asset Management from 2002-March 2004.
- Over 12 years of investment industry experience.
- BS, University of Southern California.

The fund's Statement of Additional Information provides additional information
about a portfolio manager's investments in the fund, a description of the
portfolio management compensation structure and information regarding other
accounts managed.


16 | Who Manages and Oversees the Fund
<PAGE>

FINANCIAL HIGHLIGHTS

Since the fund is newly offered, financial highlights information is not
available.

                                         Who Manages and Oversees the Fund  | 17
<PAGE>

HOW TO INVEST IN THE FUND

THE FOLLOWING PAGES TELL YOU HOW TO INVEST IN THE FUND AND WHAT TO EXPECT AS A
SHAREHOLDER. The following pages also tell you about many of the services,
choices and benefits of being a shareholder. You'll also find information on
how to check the status of your account using the method that's most convenient
for you.

If you're investing directly with DWS Scudder, all of this information applies
to you. If you're investing through a "third party provider" - for example, a
workplace retirement plan, financial supermarket or financial advisor - your
provider may have its own policies or instructions and you should follow those.


Please remember, CLASS S shares are generally only available to new investors
through fee-based programs of investment dealers that have special agreements
with the fund's distributor, through certain group retirement plans and through
certain registered investment advisors. These dealers and advisors typically
charge ongoing fees for services they provide.

You can find out more about the topics covered here by speaking with your
FINANCIAL ADVISOR OR A REPRESENTATIVE OF YOUR WORKPLACE RETIREMENT PLAN OR
OTHER INVESTMENT PROVIDER.

<PAGE>

How to BUY Shares



<TABLE>
<CAPTION>
 FIRST INVESTMENT                              ADDITIONAL INVESTMENTS
<S>                                           <C>
 $2,500 or more for regular accounts           $50 or more for regular accounts and
 $1,000 or more for IRAs and UTMAs/           IRAs
 UGMAs                                        $50 or more for an account with an
 $1,000 or more for an account with an        Automatic Investment Plan
 Automatic Investment Plan

 BY MAIL OR EXPRESS MAIL (SEE BELOW)
                                              Send a DWS Scudder investment slip or
 -  Fill out and sign an application
                                              short note that includes:
 -  Send it to us at the appropriate
                                              -  fund and class name
  address, along with an investment
  check made payable to "DWS                  -  account number
  Scudder"                                    -  check payable to "DWS Scudder"

 BY WIRE
 -  Call (800) 728-3337 for instructions      -  Call (800) 728-3337 for instructions

 BY PHONE
 Not available                                -  Call (800) 728-3337 for instructions

 WITH AN AUTOMATIC INVESTMENT PLAN
 -  Fill in the information on our            -  To set up regular investments from a
  application including a check for the       bank checking account, call
  initial investment and a voided check       (800) 728-3337 (minimum $50)

 USING QuickBuy
 Not available                                -  Call (800) 728-3337 to make sure
                                              QuickBuy is set up on your account; if
                                              it is, you can request a transfer from
                                              your bank account of any amount
                                              between $50 and $250,000

 ON THE INTERNET
 -  Register at www.dws-scudder.com or        -  Call (800) 728-3337 to ensure you have
  log in if already registered                electronic services
 -  Print out a prospectus and a new          -  Register at www.dws-scudder.com
  account application                         or log in if already registered
 -  Complete and return the application       -  Follow the instructions for buying
  with your check                             shares with money from your bank
                                              account
</TABLE>


--------------------------------------------------------------------------------
REGULAR MAIL:

First Investment: DWS Scudder, PO Box 219356, Kansas City, MO 64121-9356
Additional Investments: DWS Scudder, PO Box 219154, Kansas City, MO 64121-9154

EXPRESS, REGISTERED OR CERTIFIED MAIL:
DWS Scudder, 210 West 10th Street, Kansas City, MO 64105-1614


                                                         How to Buy Shares  | 19
<PAGE>

How to EXCHANGE or SELL Shares



<TABLE>
<CAPTION>
 EXCHANGING INTO ANOTHER FUND                    SELLING SHARES
<S>                                             <C>
                                                Some transactions, including most for
 -  Exchanges into existing accounts:
                                                over $100,000, can only be ordered in
  $50 minimum per fund
                                                writing with a signature guarantee;
 -  Exchanges into new accounts:
                                                please see "Signature Guarantee"
  $2,500 minimum per fund
  $1,000 minimum for IRAs and UTMAs/
  UGMAs

 BY PHONE                                       BY PHONE OR WIRE
 -  Call (800) 728-3337 for instructions        -  Call (800) 728-3337 for instructions
 USING THE AUTOMATED INFORMATION LINE
 -  Call (800) 728-3337 for instructions        -  Call (800) 728-3337 for instructions

 BY MAIL OR EXPRESS MAIL
 (see previous page for address)
 Your instructions should include:              Your instructions should include:
 -  the fund, class and account number          -  the fund, class and account number
  you're exchanging out of                      from which you want to sell shares
 -  the dollar amount or number of shares       -  the dollar amount or number of shares
  you want to exchange                          you want to sell
 -  the name and class of the fund you          -  your name(s), signature(s) and
  want to exchange into                         address, as they appear on your
                                                account
 -  your name(s), signature(s) and
  address, as they appear on your               -  a daytime telephone number
  account
 -  a daytime telephone number

 WITH AN AUTOMATIC EXCHANGE PLAN                 WITH AN AUTOMATIC WITHDRAWAL PLAN
 -  To set up regular exchanges from a          -  To set up regular cash payments from
  fund account, call (800) 728-3337             a DWS fund account, call
                                                (800) 728-3337

 USING QuickSell
 Not available                                  -  Call (800) 728-3337 to make sure
                                                QuickSell is set up on your account; if
                                                it is, you can request a transfer to your
                                                bank account of any amount between
                                                $50 and $250,000

 ON THE INTERNET
 -  Register at www.dws-scudder.com or          -  Register at www.dws-scudder.com or
  log in if already registered                  log in if already registered
 -  Follow the instructions for making on-      -  Follow the instructions for making on-
  line exchanges                                line redemptions
</TABLE>


--------------------------------------------------------------------------------

<TABLE>
<S>               <C>
TO REACH US:      WEB SITE: www.dws-scudder.com
                  TELEPHONE REPRESENTATIVE: (800) 728-3337, M-F, 9 a.m.- 6 p.m. ET
                  TDD LINE: (800) 972-3006, M-F, 9 a.m.- 6 p.m. ET
</TABLE>



20 | How to Sell or Exchange Shares
<PAGE>

           Financial intermediary support payments

           The Advisor, DWS Scudder Distributors, Inc. (the "Distributor")
           and/or their affiliates may pay additional compensation, out of
           their own assets and not as an additional charge to the fund, to
           selected affiliated and unaffiliated brokers, dealers, participating
           insurance companies or other financial intermediaries ("financial
           advisors") in connection with the sale and/or distribution of fund
           shares or the retention and/or servicing of fund investors and fund
           shares ("revenue sharing"). Such revenue sharing payments are in
           addition to any distribution or service fees payable under any Rule
           12b-1 or service plan of the fund, any record keeping/sub-transfer
           agency/networking fees payable by the fund (generally through the
           Distributor or an affiliate) and/or the Distributor to certain
           financial advisors for performing such services and any sales
           charge, commissions, non-cash compensation arrangements expressly
           permitted under applicable rules of the Financial Industry
           Regulatory Authority or other concessions described in the fee table
           or elsewhere in this prospectus or the Statement of Additional
           Information as payable to all financial advisors. For example, the
           Advisor, the Distributor and/or their affiliates may compensate
           financial advisors for providing the fund with "shelf space" or
           access to a third party platform or fund offering list or other
           marketing programs, including, without limitation, inclusion of the
           fund on preferred or recommended sales lists, mutual fund
           "supermarket" platforms and other formal sales programs; granting
           the Distributor access to the financial advisor's sales force;
           granting the Distributor access to the financial advisor's
           conferences and meetings; assistance in training and educating the
           financial advisor's personnel; and obtaining other forms of
           marketing support.

           The level of revenue sharing payments made to financial advisors may
           be a fixed fee or based upon one or more of the following factors:
           gross sales, current assets and/or number of accounts of the fund
           attributable to the financial advisor, the particular fund or fund
           type or other measures as agreed to by the Advisor, the Distributor
           and/or their affiliates and the financial advisors or any
           combination thereof. The amount of these revenue sharing payments is
           determined at the discretion of the Advisor, the Distributor and/or
           their affiliates from time to time, may be substantial, and may be
           different for different financial advisors based on, for example,
           the nature of the services provided by the financial advisor.


                                            How to Sell or Exchange Shares  | 21
<PAGE>

           The Advisor, the Distributor and/or their affiliates currently make
           revenue sharing payments from their own assets in connection with
           the sale and/or distribution of DWS Fund shares or the retention
           and/or servicing of investors and DWS Fund shares to financial
           advisors in amounts that generally range from .01% up to .50% of
           assets of the fund serviced and maintained by the financial advisor,
           .10% to .25% of sales of the fund attributable to the financial
           advisor, a flat fee of $12,500 up to $500,000, or any combination
           thereof. These amounts are subject to change at the discretion of
           the Advisor, the Distributor and/or their affiliates. Receipt of, or
           the prospect of receiving, this additional compensation may
           influence your financial advisor's recommendation of the fund or of
           any particular share class of the fund. You should review your
           financial advisor's compensation disclosure and/or talk to your
           financial advisor to obtain more information on how this
           compensation may have influenced your financial advisor's
           recommendation of the fund. Additional information regarding these
           revenue sharing payments is included in the fund's Statement of
           Additional Information, which is available to you on request at no
           charge (see the back cover of this prospectus for more information
           on how to request a copy of the Statement of Additional
           Information).

           The Advisor, the Distributor and/or their affiliates may also make
           such revenue sharing payments to financial advisors under the terms
           discussed above in connection with the distribution of both DWS
           funds and non-DWS funds by financial advisors to retirement plans
           that obtain record keeping services from ADP, Inc. on the DWS
           Scudder branded retirement plan platform (the "Platform") with the
           level of revenue sharing payments being based upon sales of both the
           DWS funds and the non-DWS funds by the financial advisor on the
           Platform or current assets of both the DWS funds and the non-DWS
           funds serviced and maintained by the financial advisor on the
           Platform.

           It is likely that broker-dealers that execute portfolio transactions
           for the fund will include firms that also sell shares of the DWS
           funds to their customers. However, the Advisor will not consider
           sales of DWS fund shares as a factor in the selection of
           broker-dealers to execute portfolio transactions for the DWS funds.
           Accordingly, the Advisor has implemented policies and procedures
           reasonably designed to prevent its traders from considering sales of
           DWS fund shares as a factor in the selection of


22 | How to Sell or Exchange Shares
<PAGE>

           broker-dealers to execute portfolio transactions for the fund. In
           addition, the Advisor, the Distributor and/or their affiliates will
           not use fund brokerage to pay for their obligation to provide
           additional compensation to financial advisors as described above.


POLICIES YOU SHOULD KNOW ABOUT

           Along with the information on the previous pages, the policies below
           may affect you as a shareholder. Some of this information, such as
           the section on distributions and taxes, applies to all investors,
           including those investing through a financial advisor.

           If you are investing through a financial advisor or through a
           retirement plan, check the materials you received from them about
           how to buy and sell shares because particular financial advisors or
           other intermediaries may adopt policies, procedures or limitations
           that are separate from those described by the fund. Please note that
           a financial advisor may charge fees separate from those charged by
           the fund and may be compensated by the fund.

           Keep in mind that the information in this prospectus applies only to
           the shares offered herein. Other share classes are described in
           separate prospectuses and have different fees, requirements and
           services.

           In order to reduce the amount of mail you receive and to help reduce
           expenses, we generally send a single copy of any shareholder report
           and prospectus to each household. If you do not want the mailing of
           these documents to be combined with those for other members of your
           household, please contact your financial advisor or call (800)
           728-3337.


           Policies about transactions

           THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange is
           open. The fund calculates its share price for each class every
           business day, as of the close of regular trading on the New York
           Stock Exchange (typically 4:00 p.m. Eastern time, but sometimes
           earlier, as in the case of scheduled half-day trading or unscheduled
           suspensions of trading). You can place an order to buy or sell shares
           at any time.





THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

Questions? You can speak to a DWS Scudder representative between 9 a.m. and 6
p.m. Eastern time on any fund business day by calling (800) 728-3337.






                                            Policies You Should Know About  | 23
<PAGE>

           To help the government fight the funding of terrorism and money
           laundering activities, federal law requires all financial
           institutions to obtain, verify and record information that
           identifies each person who opens an account. What this means to you:
           When you open an account, we will ask for your name, address, date
           of birth and other information that will allow us to identify you.
           Some or all of this information will be used to verify the identity
           of all persons opening an account.

           We might request additional information about you (which may include
           certain documents, such as articles of incorporation for companies)
           to help us verify your identity and, in some cases, the information
           and/or documents may be required to conduct the verification. The
           information and documents will be used solely to verify your
           identity.

           We will attempt to collect any missing required and requested
           information by contacting you or your financial advisor. If we are
           unable to obtain this information within the time frames established
           by the fund, then we may reject your application and order.

           The fund will not invest your purchase until all required and
           requested identification information has been provided and your
           application has been submitted in "good order." After we receive all
           the information, your application is deemed to be in good order and
           we accept your purchase, you will receive the net asset value per
           share next calculated.

           If we are unable to verify your identity within time frames
           established by the fund, after a reasonable effort to do so, you
           will receive written notification.

           With certain limited exceptions, only US residents may invest in the
           fund.

           Because orders placed through a financial advisor must be forwarded
           to the transfer agent before they can be processed, you'll need to
           allow extra time. Your financial advisor should be able to tell you
           approximately when your order will be processed. It is the
           responsibility of your financial advisor to forward your order to
           the transfer agent in a timely manner.

           INITIAL PURCHASE. The minimum initial investment is $2,500, except
           for investments on behalf of participants in certain fee-based and
           wrap programs offered through certain financial intermediaries
           approved by the Advisor, for which there is no
           minimum initial investment; and fiduciary accounts such as IRAs


24 | Policies You Should Know About
<PAGE>

           and custodial accounts such as Uniform Gifts to Minors Act and
           Uniform Transfers to Minors Act accounts for which the minimum
           initial investment is $1,000 per account. In addition, the minimum
           initial investment is $1,000 if an automatic investment plan of $50
           per month is established. Group retirement plans and certain other
           accounts have similar or lower minimum share balance requirements.

           SUB-MINIMUM BALANCES. The fund may close your account and send you
           the proceeds if your balance falls below $2,500 ($1,000 with an
           Automatic Investment Plan funded with $50 or more per month in
           subsequent investments); $250 for retirement accounts. We will give
           you 60 days' notice (90 days for retirement accounts) so you can
           either increase your balance or close your account (these policies
           don't apply to investors with $100,000 or more in DWS fund shares,
           investors in certain fee-based and wrap programs offered through
           certain financial intermediaries approved by the Advisor, or group
           retirement plans and certain other accounts having lower minimum
           share balance requirements).

           Because of the high cost of servicing accounts with low balances, an
           account maintenance fee of $6.25 per quarter (for a $25 annual fee)
           will be assessed on accounts whose balances fail to meet the minimum
           initial investment requirement for a period of 90 days prior to the
           assessment date. The quarterly assessment will occur on or about the
           15th of the last month in each calendar quarter. Please note that
           the fee will be assessed on accounts that fall below the minimum for
           any reason, including due to market value fluctuations, redemptions
           or exchanges. The account maintenance fee will apply to all
           shareholders of the DWS Funds except for: accounts with an automatic
           investment plan, accounts held in an omnibus account through a
           financial services firm, accounts maintained on behalf of
           participants in certain fee based and wrap programs offered through
           certain financial intermediaries approved by the Advisor and
           participant level accounts in group retirement plans held on the
           records of a retirement plan record keeper.

           SUBSEQUENT INVESTMENTS. The minimum subsequent investment is $50.
           However, there is no minimum investment requirement for subsequent
           investments on behalf of participants in certain fee-based and wrap
           programs offered through certain financial intermediaries approved
           by the Advisor.


                                            Policies You Should Know About  | 25
<PAGE>

           MARKET TIMING POLICIES AND PROCEDURES. Short-term and excessive
           trading of fund shares may present risks to long-term shareholders,
           including potential dilution in the value of fund shares,
           interference with the efficient management of the fund's portfolio
           (including losses on the sale of investments), taxable gains to
           remaining shareholders and increased brokerage and administrative
           costs. These risks may be more pronounced if the fund invests in
           certain securities, such as those that trade in foreign markets, are
           illiquid or do not otherwise have "readily available market
           quotations." Certain investors may seek to employ short-term trading
           strategies aimed at exploiting variations in portfolio valuation
           that arise from the nature of the securities held by the fund (e.g.,
           "time zone arbitrage"). The fund discourages short-term and
           excessive trading and has adopted policies and procedures that are
           intended to detect and deter short-term and excessive trading.

           Pursuant to its policies, the fund will impose a 2% redemption fee
           on fund shares held for less than a specified holding period
           (subject to certain exceptions discussed below under "Redemption
           fees"). The fund also reserves the right to reject or cancel a
           purchase or exchange order for any reason without prior notice. For
           example, the fund may in its discretion reject or cancel a purchase
           or an exchange order even if the transaction is not subject to the
           specific roundtrip transaction limitation described below if the
           Advisor believes that there appears to be a pattern of short-term or
           excessive trading activity by a shareholder or deems any other
           trading activity harmful or disruptive to the fund. The fund,
           through its Advisor and transfer agent, will measure short-term and
           excessive trading by the number of roundtrip transactions within a
           shareholder's account during a rolling 12-month period. A
           "roundtrip" transaction is defined as any combination of purchase
           and redemption activity (including exchanges) of the same fund's
           shares. The fund may take other trading activity into account if the
           fund believes such activity is of an amount or frequency that may be
           harmful to long-term shareholders or disruptive to portfolio
           management.

           Shareholders are limited to four roundtrip transactions in the same
           DWS Fund (excluding money market funds) over a rolling 12-month
           period. Shareholders with four or more roundtrip transactions in the
           same DWS Fund within a rolling 12-month period generally will be
           blocked from making additional purchases of, or exchanges into, that
           DWS Fund. The fund has sole discretion whether to remove a block
           from a shareholder's


26 | Policies You Should Know About
<PAGE>

           account. The rights of a shareholder to redeem shares of a DWS Fund
           are not affected by the four roundtrip transaction limitation, but
           all redemptions remain subject to the fund's redemption fee policy
           (see "Redemption fees" described below).

           The fund may make exceptions to the roundtrip transaction policy for
           certain types of transactions if, in the opinion of the Advisor, the
           transactions do not represent short-term or excessive trading or are
           not abusive or harmful to the fund, such as, but not limited to,
           systematic transactions, required minimum retirement distributions,
           transactions initiated by the fund or administrator and transactions
           by certain qualified fund-of-fund(s).

           In certain circumstances where shareholders hold shares of the fund
           through a financial intermediary, the fund may rely upon the
           financial intermediary's policy to deter short-term or excessive
           trading if the Advisor believes that the financial intermediary's
           policy is reasonably designed to detect and deter transactions that
           are not in the best interests of the fund. A financial
           intermediary's policy relating to short-term or excessive trading
           may be more or less restrictive than the DWS Funds' policy, may
           permit certain transactions not permitted by the DWS Funds'
           policies, or prohibit transactions not subject to the DWS Funds'
           policies.

           The Advisor may also accept undertakings from a financial
           intermediary to enforce short-term or excessive trading policies on
           behalf of the fund that provide a substantially similar level of
           protection for the fund against such transactions. For example,
           certain financial intermediaries may have contractual, legal or
           operational restrictions that prevent them from blocking an account.
           In such instances, the financial intermediary may use alternate
           techniques that the Advisor considers to be a reasonable substitute
           for such a block.

           In addition, if the fund invests some portion of its assets in
           foreign securities, it has adopted certain fair valuation practices
           intended to protect the fund from "time zone arbitrage" with respect
           to its foreign securities holdings and other trading practices that
           seek to exploit variations in portfolio valuation that arise from
           the nature of the securities held by the fund. (See "How the fund
           calculates share price.")


                                            Policies You Should Know About  | 27
<PAGE>

           There is no assurance that these policies and procedures will be
           effective in limiting short-term and excessive trading in all cases.
           For example, the Advisor may not be able to effectively monitor,
           detect or limit short-term or excessive trading by underlying
           shareholders that occurs through omnibus accounts maintained by
           broker-dealers or other financial intermediaries. The Advisor
           reviews trading activity at the omnibus level to detect short-term
           or excessive trading. If the Advisor has reason to suspect that
           short-term or excessive trading is occurring at the omnibus level,
           the Advisor will contact the financial intermediary to request
           underlying shareholder level activity. Depending on the amount of
           fund shares held in such omnibus accounts (which may represent most
           of the fund's shares) short-term and/or excessive trading of fund
           shares could adversely affect long-term shareholders in the fund. If
           short-term or excessive trading is identified, the Advisor will take
           appropriate action.

           The fund's market timing policies and procedures may be modified or
           terminated at any time.

           REDEMPTION FEES. The fund imposes a redemption fee of 2% of the
           total redemption amount (calculated at net asset value) on all fund
           shares redeemed or exchanged within 15 days of buying them (either
           by purchase or exchange). The redemption fee is paid directly to the
           fund and is designed to encourage long-term investment and to offset
           transaction and other costs associated with short-term or excessive
           trading. For purposes of determining whether the redemption fee
           applies, shares held the longest time will be treated as being
           redeemed first and shares held the shortest time will be treated as
           being redeemed last.

           The redemption fee is applicable to fund shares purchased either
           directly or through a financial intermediary, such as a
           broker-dealer. Transactions through financial intermediaries
           typically are placed with the fund on an omnibus basis and include
           both purchase and sale transactions placed on behalf of multiple
           investors. These purchase and sale transactions are generally netted
           against one another and placed on an aggregate basis; consequently
           the identities of the individuals on whose behalf the transactions
           are placed generally are not known to the fund. For this reason, the
           fund has undertaken to notify financial intermediaries of their
           obligation to assess the redemption fee on


28 | Policies You Should Know About
<PAGE>

           customer accounts and to collect and remit the proceeds to the fund.
           However, due to operational requirements, the intermediaries'
           methods for tracking and calculating the fee may be inadequate or
           differ in some respects from the fund's.

           The redemption fee will not be charged in connection with the
           following exchange or redemption transactions: (i) transactions on
           behalf of participants in certain research wrap programs; (ii)
           transactions on behalf of a shareholder to return any excess IRA
           contributions to the shareholder; (iii) transactions on behalf of a
           shareholder to effect a required minimum distribution on an IRA;
           (iv) transactions on behalf of any mutual fund advised by the
           Advisor and its affiliates (e.g., "funds of funds") or, in the case
           of a master/feeder relationship, redemptions by the feeder fund from
           the master portfolio; (v) transactions on behalf of certain
           unaffiliated mutual funds operating as funds of funds; (vi)
           transactions following death or disability of any registered
           shareholder, beneficial owner or grantor of a living trust with
           respect to shares purchased before death or disability; (vii)
           transactions involving hardship of any registered shareholder;
           (viii) systematic transactions with pre-defined trade dates for
           purchases, exchanges or redemptions, such as automatic account
           rebalancing, or loan origination and repayments; (ix) transactions
           involving shares purchased through the reinvestment of dividends or
           other distributions; (x) transactions involving shares transferred
           from another account in the same fund or converted from another
           class of the same fund (the redemption fee period will carry over to
           the acquired shares); (xi) transactions initiated by the fund or
           administrator (e.g., redemptions for not meeting account minimums,
           to pay account fees funded by share redemptions, or in the event of
           the liquidation or merger of the fund); or (xii) transactions in
           cases when there are legal or contractual limitations or
           restrictions on the imposition of the redemption fee (as determined
           by the fund or its agents in their sole discretion). It is the
           policy of the DWS funds to permit approved fund platform providers
           to execute transactions within the funds without the imposition of a
           redemption fee if such providers have implemented alternative
           measures that are determined by the Advisor to provide controls on
           short-term and excessive trading that are comparable to the DWS
           funds' policies.


                                            Policies You Should Know About  | 29
<PAGE>

           THE AUTOMATED INFORMATION LINE IS AVAILABLE 24 HOURS A DAY BY
           CALLING (800) 728-3337. You can use our automated phone services to
           get information on DWS funds generally and on accounts held directly
           at DWS Scudder. You can also use this service to make exchanges and
           to purchase and sell shares.

           QUICKBUY AND QUICKSELL let you set up a link between a DWS fund
           account and a bank account. Once this link is in place, you can move
           money between the two with a phone call. You'll need to make sure
           your bank has Automated Clearing House (ACH) services. Transactions
           take two to three days to be completed and there is a $50 minimum
           and a $250,000 maximum. To set up QuickBuy or QuickSell on a new
           account, see the account application; to add it to an existing
           account, call (800) 728-3337.

           TELEPHONE AND ELECTRONIC TRANSACTIONS. Generally, you are
           automatically entitled to telephone and electronic transaction
           privileges, but you may elect not to have them when you open your
           account or by contacting Shareholder Services at (800) 728-3337 at a
           later date.

           Since many transactions may be initiated by telephone or
           electronically, it's important to understand that as long as we take
           reasonable steps to ensure that an order to purchase or redeem shares
           is genuine, such as recording calls or requesting personalized
           security codes or other information, we are not responsible for any
           losses that may occur as a result. For transactions conducted over
           the Internet, we recommend the use of a secure Internet browser. In
           addition, you should verify the accuracy of your confirmation
           statements immediately after you receive them.

           THE FUND DOES NOT ISSUE SHARE CERTIFICATES.

           WHEN YOU ASK US TO SEND OR RECEIVE A WIRE, please note that while we
           don't charge a fee to send or receive wires, it's possible that your
           bank may do so. Wire transactions are generally completed within 24
           hours. The fund can only send wires of $1,000 or more and accept
           wires of $50 or more.





THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The DWS Scudder Web site can be a valuable resource for shareholders with
Internet access. Go to WWW.DWS-SCUDDER.COM to get up-to-date information, review
balances or even place orders for exchanges.











30 | Policies You Should Know About
<PAGE>

           THE FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by check,
           bank or Federal Funds wire transfer or by electronic bank transfer.
           Please note that the fund does not accept cash, money orders,
           traveler's checks, starter checks, third party checks (except checks
           for retirement plan asset transfers and rollovers or for Uniform
           Gifts to Minors Act/Uniform Transfers to Minors Act accounts),
           checks drawn on foreign banks or checks issued by credit card
           companies or Internet-based companies. Thus, subject to the
           foregoing exceptions for certain third party checks, checks that are
           otherwise permissible must be drawn by the account holder on a
           domestic bank and must be payable to the fund.

           SIGNATURE GUARANTEE. When you want to sell more than $100,000 worth
           of shares or send proceeds to a third party or to a new address,
           you'll usually need to place your order in writing and include a
           signature guarantee. However, if you want money wired to a bank
           account that is already on file with us, you don't need a signature
           guarantee. Also, generally you don't need a signature guarantee for
           an exchange, although we may require one in certain other
           circumstances.

           A signature guarantee is simply a certification of your signature -
           a valuable safeguard against fraud. You can get a signature
           guarantee from an eligible guarantor institution, including
           commercial banks, savings and loans, trust companies, credit unions,
           member firms of a national stock exchange or any member or
           participant of an approved signature guarantor program. Note that
           you can't get a signature guarantee from a notary public and we must
           be provided the original guarantee.

           SELLING SHARES OF TRUST ACCOUNTS AND BUSINESS OR ORGANIZATION
           ACCOUNTS may require additional documentation. Please call (800)
           728-3337 or contact your financial advisor for more information.

           MONEY FROM SHARES YOU SELL is normally sent out within one business
           day of when your order is processed (not when it is received),
           although it could be delayed for up to seven days. There are other
           circumstances when it could be longer, including, but not limited
           to, when you are selling shares you bought recently by check or ACH
           (the funds will be placed under a 10 calendar day hold to ensure
           good funds) or when unusual circumstances prompt the SEC to allow
           further delays. Certain expedited redemption processes may also be
           delayed when


                                            Policies You Should Know About  | 31
<PAGE>

           you are selling recently purchased shares or in the event of closing
           of the Federal Reserve Bank's wire payment system. In addition, the
           fund reserves the right to suspend or postpone redemptions as
           permitted pursuant to Section 22(e) of the Investment Company Act of
           1940. Generally, those circumstances are when 1) the New York Stock
           Exchange is closed other than customary weekend or holiday closings;
           2) trading on the New York Stock Exchange is restricted; 3) an
           emergency exists which makes the disposal of securities owned by the
           fund or the fair determination of the value of the fund's net assets
           not reasonably practicable; or 4) the SEC, by order, permits the
           suspension of the right of redemption. Redemption payments by wire
           may also be delayed in the event of a non-routine closure of the
           Federal Reserve wire payment system. For additional rights reserved
           by the fund, please see "Other rights we reserve."

           You may obtain additional information about other ways to sell your
           shares by contacting your financial advisor.


           How the fund calculates share price

           To calculate net asset value, or NAV, each share class uses the
           following equation:


<TABLE>
<S>                                                     <C> <C>
            TOTAL ASSETS - TOTAL LIABILITIES
           -----------------------------------------    =    NAV
               TOTAL NUMBER OF SHARES OUTSTANDING
</TABLE>


           The price at which you buy and sell shares is the NAV.


           THE FUND CHARGES A REDEMPTION FEE EQUAL TO 2.00% of the value of
           shares redeemed or exchanged within 15 days of purchase. Please see
           "Policies about transactions - Redemption fees" for further
           information.

           WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN
           INDEPENDENT PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE.
           However, we may use methods approved by the fund's Board, such as a
           fair valuation model, which are intended to reflect fair value when
           pricing service information or market quotations are not readily
           available or when a security's value or a meaningful portion of the
           value of the fund's portfolio is believed to have been materially
           affected by a significant event, such as a natural disaster, an
           economic event like a bankruptcy filing, or a substantial
           fluctuation in domestic or foreign markets that has occurred between
           the close of the exchange or market


32 | Policies You Should Know About
<PAGE>

           on which the security is principally traded (for example, a foreign
           exchange or market) and the close of the New York Stock Exchange. In
           such a case, the fund's value for a security is likely to be
           different from the last quoted market price or pricing service
           information. In addition, due to the subjective and variable nature
           of fair value pricing, it is possible that the value determined for
           a particular asset may be materially different from the value
           realized upon such asset's sale. It is expected that the greater the
           percentage of fund assets that is invested in non-US securities, the
           more extensive will be the fund's use of fair value pricing. This is
           intended to reduce the fund's exposure to "time zone arbitrage" and
           other harmful trading practices. (See "Market timing policies and
           procedures.")

           TO THE EXTENT THAT THE FUND INVESTS IN SECURITIES THAT ARE TRADED
           PRIMARILY IN FOREIGN MARKETS, the value of its holdings could change
           at a time when you aren't able to buy or sell fund shares. This is
           because some foreign markets are open on days or at times when the
           fund doesn't price its shares. (Note that prices for securities that
           trade on foreign exchanges can change significantly on days when the
           New York Stock Exchange is closed and you cannot buy or sell fund
           shares. Price changes in the securities the fund owns may ultimately
           affect the price of fund shares the next time the NAV is
           calculated.)


           Other rights we reserve

           You should be aware that we may do any of the following:

           -  withdraw or suspend the offering of shares at any time

           -  withhold a portion of your distributions and redemption proceeds
              for federal income tax purposes if we have been notified by the
              IRS that you are subject to backup withholding or if you fail to
              provide us with a correct taxpayer ID number and certain
              certifications including certification that you are not subject
              to backup withholding

           -  reject a new account application if you don't provide any
              required or requested identifying information, or for any other
              reason

                                            Policies You Should Know About  | 33
<PAGE>

           -  refuse, cancel, limit or rescind any purchase or exchange order,
           without prior notice; freeze any account (meaning you will not be
           able to purchase fund shares in your account); suspend account
           services; and/or involuntarily redeem your account if we think that
           the account is being used for fraudulent or illegal purposes; one or
           more of these actions will be taken when, at our sole discretion,
           they are deemed to be in the fund's best interests or when the fund
           is requested or compelled to do so by governmental authority or by
           applicable law

           -  close and liquidate your account if we are unable to verify your
              identity, or for other reasons; if we decide to close your
              account, your fund shares will be redeemed at the net asset value
              per share next calculated after we determine to close your
              account (less any applicable redemption fee); you may recognize a
              gain or loss on the redemption of your fund shares and you may
              incur a tax liability

           -  pay you for shares you sell by "redeeming in kind," that is, by
              giving you securities (which typically will involve brokerage
              costs for you to liquidate) rather than cash, but which will be
              taxable to the same extent as a redemption for cash; the fund
              generally won't make a redemption in kind unless your requests
              over a 90-day period total more than $250,000 or 1% of the value
              of the fund's net assets, whichever is less

           -  change, add or withdraw various services, fees and account
              policies (for example, we may adjust the fund's investment
              minimums at any time)


           UNDERSTANDING DISTRIBUTIONS AND TAXES

           The fund intends to distribute to its shareholders virtually all of
           its net earnings. The fund can earn money in two ways: by receiving
           interest, dividends or other income from securities it holds and by
           selling securities for more than it paid for them. (The fund's
           earnings are separate from any gains or losses stemming from your own
           purchase and sale of shares.) The fund may not always pay a dividend
           or distribution for a given period.







THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS



Because each shareholder's tax situation is unique, ask your tax professional
about the tax consequences of your investments, including any state and local
tax consequences.





34 | Understanding Distributions and Taxes
<PAGE>

           THE FUND INTENDS TO PAY DIVIDENDS AND DISTRIBUTIONS to its
           shareholders in November or December and, if necessary, may do so at
           other times as well.

           Dividends or distributions declared to shareholders of record in the
           last quarter of a given calendar year are treated for federal income
           tax purposes as if they were received on December 31 of that year,
           provided such dividends or distributions are paid by the end of the
           following January.

           For federal income tax purposes, income and capital gains
           distributions are generally taxable to shareholders. However,
           dividends and distributions received by retirement plans qualifying
           for tax exemption under federal income tax laws generally will not
           be taxable.

           YOU CAN CHOOSE HOW TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS. You
           can have them all automatically reinvested in fund shares (at NAV),
           all deposited directly to your bank account or all sent to you by
           check, have one type reinvested and the other sent to you by check
           or have them invested in a different fund. Tell us your preference
           on your application. If you don't indicate a preference, your
           dividends and distributions will all be reinvested in shares of the
           fund without a sales charge (if applicable). Distributions are
           treated the same for federal income tax purposes whether you receive
           them in cash or reinvest them in additional shares. For
           employer-sponsored qualified plans, and retirement plans,
           reinvestment (at NAV) is the only option.

           BUYING, SELLING OR EXCHANGING FUND SHARES WILL USUALLY HAVE FEDERAL
           INCOME TAX CONSEQUENCES FOR YOU (except in employer-sponsored
           qualified plans, IRAs or other tax-advantaged accounts). Your sale
           of shares may result in a capital gain or loss. The gain or loss
           will be long-term or short-term depending on how long you owned the
           shares that were sold. For federal income tax purposes, an exchange
           is treated the same as a sale.


                                     Understanding Distributions and Taxes  | 35
<PAGE>

           THE FEDERAL INCOME TAX STATUS of the fund's earnings you receive and
           your own fund transactions generally depends on their type:


<TABLE>
<CAPTION>
GENERALLY TAXED AT LONG-TERM                       GENERALLY TAXED AT ORDINARY
CAPITAL GAIN RATES:                                INCOME RATES:
<S>                                                <C>
DISTRIBUTIONS FROM THE FUND
- gains from the sale of                           -  gains from the sale of
  securities held (or treated as                      securities held by the fund for
  held) by the fund for more                          one year or less
  than one year                                    -  all other taxable income

- qualified dividend income

TRANSACTIONS INVOLVING FUND
SHARES
- gains from selling fund                          -  gains from selling fund
  shares held for more than                           shares held for one year or
  one year                                            less
</TABLE>


           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY THE FUND MAY BE
           SUBJECT TO FOREIGN WITHHOLDING TAXES. In that case, the fund's yield
           on those securities would generally be decreased. The fund may elect
           to pass through to its shareholders a credit or deduction for
           foreign taxes it has paid if at the end of its year more than 50% of
           the fund's total assets are stocks or securities of foreign
           corporations. In addition, any investments in foreign securities or
           foreign currencies may increase or accelerate the fund's recognition
           of ordinary income and may affect the timing or amount of the fund's
           distributions. If you invest in the fund through a taxable account,
           your after-tax return could be negatively impacted.

           To the extent that the fund invests in certain debt obligations or
           certain other securities, investments in these obligations or
           securities may cause the fund to recognize taxable income in excess
           of the cash generated by such obligations. Thus, the fund could be
           required at times to liquidate other investments in order to satisfy
           its distribution requirements.

           For taxable years beginning before January 1, 2011, distributions to
           individuals and other noncorporate shareholders of investment income
           designated by the fund as derived from qualified dividend income are
           eligible for taxation for federal income tax purposes at the more
           favorable long-term capital gain rates. Qualified dividend income
           generally includes dividends from domestic and some foreign
           corporations. It does not include income from investments in debt
           securities or,


36 | Understanding Distributions and Taxes
<PAGE>

           generally, from REITs. In addition, the fund must meet certain
           holding period and other requirements with respect to the
           dividend-paying stocks in its portfolio and the shareholder must
           meet certain holding period and other requirements with respect to
           the fund's shares for the lower tax rates to apply.

           For taxable years beginning before January 1, 2011, the maximum
           federal income tax rate imposed on long-term capital gains
           recognized by individuals and other noncorporate shareholders has
           been reduced to 15%. For taxable years beginning on or after January
           1, 2011, the long-term capital gain rate is scheduled to return to
           20%.

           YOUR FUND WILL SEND YOU DETAILED FEDERAL INCOME TAX INFORMATION
           EVERY JANUARY. These statements tell you the amount and the federal
           income tax classification of any dividends or distributions you
           received. They also have certain details on your purchases and sales
           of shares.

           IF YOU INVEST RIGHT BEFORE THE FUND PAYS A DIVIDEND, you'll be
           getting some of your investment back as a taxable dividend. You can
           avoid this by investing after the fund declares a dividend. In
           tax-advantaged retirement accounts you do not need to worry about
           this.

           CORPORATIONS are taxed at the same rates on ordinary income and
           capital gains but may be eligible for a dividends-received deduction
           for a portion of the income dividends they receive from the fund,
           provided certain holding period and other requirements are met.

           The above discussion summarizes certain federal income tax
           consequences for shareholders who are US persons. If you are a
           non-US person, please consult your own tax advisor with respect to
           the US tax consequences to you of an investment in the fund. For
           more information, see "Taxes" in the Statement of Additional
           Information.


                                     Understanding Distributions and Taxes  | 37
<PAGE>

APPENDIX
--------------------------------------------------------------------------------
           Hypothetical Expense Summary


           Using the annual fund operating expense ratios presented in the fee
           tables in the fund prospectus, the Hypothetical Expense Summary
           shows the estimated fees and expenses, in actual dollars, that would
           be charged on a hypothetical investment of $10,000 in the fund held
           for the next 10 years and the impact of such fees and expenses on
           fund returns for each year and cumulatively, assuming a 5% return
           for each year. The tables also assume that all dividends and
           distributions are reinvested. The annual fund expense ratios shown
           are net of any contractual fee waivers or expense reimbursements, if
           any, for the period of the contractual commitment. The tables do not
           reflect redemption fees, if any, which may be payable upon
           redemption. If redemption fees were shown, the "Hypothetical
           Year-End Balance After Fees and Expenses" amounts shown would be
           lower and the "Annual Fees and Expenses" amounts shown would be
           higher. Also, please note that if you are investing through a third
           party provider, that provider may have fees and expenses separate
           from those of the fund that are not reflected here. Mutual fund fees
           and expenses fluctuate over time and actual expenses may be higher
           or lower than those shown.

           The Hypothetical Expense Summary should not be used or construed as
           an offer to sell, a solicitation of an offer to buy or a
           recommendation or endorsement of any specific mutual fund. You
           should carefully review the fund's prospectus to consider the
           investment objectives, risks, expenses and charges of the fund prior
           to investing.


38 | Appendix
<PAGE>

                DWS RREEF Global Infrastructure Fund - Class S



<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>

   1            %               %               %                  $                 $
   2            %               %               %                  $                 $
   3            %               %               %                  $                 $
   4            %               %               %                  $                 $
   5            %               %               %                  $                 $
   6            %               %               %                  $                 $
   7            %               %               %                  $                 $
   8            %               %               %                  $                 $
   9            %               %               %                  $                 $
  10            %               %               %                  $                 $
  TOTAL                                                                              $
</TABLE>



                                                                  Appendix  | 39
<PAGE>

TO GET MORE INFORMATION

SHAREHOLDER REPORTS - These include commentary from the fund's management team
about recent market conditions and the effects of the fund's strategies on its
performance. They also have detailed performance figures, a list of everything
the fund owns, and its financial statements. Shareholders get these reports
automatically.

STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
fund's features and policies, including additional risk information. The SAI is
incorporated by reference into this document (meaning that it's legally part of
this prospectus).

For a free copy of any of these documents or to request other information about
the fund, call (800) 728-3337, or contact DWS Scudder at the address listed
below. The fund's SAI and shareholder reports are also available through the
DWS Scudder Web site at www.dws-scudder.com. These documents and other
information about the fund are available from the EDGAR Database on the SEC's
Internet site at www.sec.gov. If you like, you may obtain copies of this
information, after paying a copying fee, by e-mailing a request to
publicinfo@sec.gov or by writing the SEC at the address listed below. You can
also review and copy these documents and other information about the fund,
including the fund's SAI, 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.


<TABLE>
<CAPTION>
DWS SCUDDER              SEC                     DISTRIBUTOR
---------------------    --------------------    -------------------------------
<S>                      <C>                     <C>
PO Box 219151            100 F Street, N.E.      DWS Scudder Distributors, Inc.
Kansas City, MO          Washington, D.C.        222 South Riverside Plaza
64121-9151               20549-0102              Chicago, IL 60606-5808
WWW.DWS-SCUDDER.COM      WWW.SEC.GOV             (800) 621-1148
(800) 728-3337           (800) SEC-0330
</TABLE>



<TABLE>
<S>                                       <C>                                     <C>
SEC FILE NUMBER:
DWS Global/International Fund, Inc.       DWS RREEF Global Infrastructure Fund    811-4670
</TABLE>







(__/__/08) DGIF-1

[RECYCLE GRAPHIC APPEARS HERE]
                                                              [DWS SCUDDER LOGO]
                                                             Deutsche Bank Group




<PAGE>

Supplement to the currently effective Statement of Additional Information:

DWS RREEF Global Infrastructure Fund

At present, substantially all DWS mutual funds are overseen by one of two boards
of trustees/directors (the "Boards"). Each Board, including the Board that
oversees your Fund (the "New York Board"), has determined that the formation of
a single consolidated Board overseeing substantially all DWS mutual funds is in
the best interests of the Funds and their shareholders. In this connection, each
Board has approved a plan outlining the process for implementing the
consolidation of the New York Board with the other primary DWS mutual fund board
(the "Chicago Board"). (The geographic references in the preceding sentences
merely indicate where each Board historically held most of its meetings.)

The consolidation of the two Boards is expected to take effect on or about April
1, 2008 (the "Consolidation Date"). To accomplish the consolidation, the New
York Board will nominate and elect four individuals (John W. Ballantine, Paul K.
Freeman, William McClayton and Robert H. Wadsworth) who currently serve on the
Chicago Board to the Board of your Fund and each other fund overseen by the New
York Board. Information regarding these four individuals is set forth below. In
addition, the Chicago Board has determined to nominate and recommend that
shareholders of each fund overseen by that Board elect eight members of your
Fund's Board (Henry P. Becton, Jr., Dawn-Marie Driscoll, Keith R. Fox, Kenneth
C. Froewiss, Richard J. Herring, Rebecca W. Rimel, William N. Searcy, Jr. and
Jean Gleason Stromberg). As a result, as of the Consolidation Date, it is
expected that the four Chicago Board members and eight New York Board members
named above (each of whom will be an Independent Board Member), together with
Axel Schwarzer, CEO of DWS Scudder, will constitute the Board of each DWS
Scudder mutual fund (134 funds), including your Fund.

To facilitate the Board consolidation, three members of the New York Board
(Martin J. Gruber, Graham E. Jones and Carl W. Vogt) have agreed to resign as of
the Consolidation Date, which is prior to their normal retirement dates.
Independent Board Members of the New York Board do not receive benefits under
any pension or retirement plan. However, the New York Board has determined that
it would be appropriate to provide those three Independent Board Members who
agreed to resign prior to the Board's normal retirement date with a retirement
agreement, the terms of which include a one-time benefit. As DIMA, the Funds'
investment adviser, will also benefit from the administrative efficiencies of a
consolidated Board, DIMA has agreed to reimburse the Funds for the full cost of
this one-time benefit (which for each retiring Independent Board Member will
equal his annual compensation immediately preceding the Consolidation Date
multiplied by the lesser of (i) two; or (ii) the number of years (or portion
thereof) from the Consolidation Date to his normal retirement date). As
consideration for this benefit, each retiring Independent Board Member has
agreed not to serve on the board of another mutual fund without prior consent
for a specified period. In addition, pursuant to an agreement between each
retiring Independent Board Member, the New York Funds and DIMA, each retiring
Independent Board Member has received certain assurances regarding continuation
of insurance and indemnification rights.

Following the Consolidation Date, it is expected that the consolidated Board
will implement certain changes to the Fund's current committee structure and
other governance practices, including the appointment of new committee chairs
and members. Additional information regarding these changes will be set forth in
the Fund's statement of additional information upon implementation.


                                                              [DWS SCUDDER LOGO]
                                                             Deutsche Bank Group

March 31, 2008

<PAGE>


<TABLE>
<CAPTION>
                                                                                                      Position with
                                                                                                      the DWS Funds
                                                Business Experience and Directorships                 and Length of
     Name and Year of Birth                            During the Past 5 Years                         Time Served
     ----------------------                            -----------------------                         -----------
Chicago Board Members to be
   Elected to New York Board

<S>                <C>
John W. Ballantine (1946)          Retired; formerly, Executive Vice President and Chief Risk       Chicago Board
                                   Management Officer, First Chicago NBD Corporation/The First      Member since
                                   National Bank of Chicago (1996-1998); Executive Vice President   1999.
                                   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

Paul K. Freeman (1950)             Consultant, World Bank/Inter-American Development Bank;          Chicago Board
                                   formerly, Project Leader, International Institute for Applied    Member since
                                   Systems Analysis (1998-2001); Chief Executive Officer, The       2002,
                                   Eric Group, Inc. (environmental insurance) (1986-1998).          Chairperson
                                   Formerly, Trustee of funds managed by DIMA or its affiliates     since 2007.
                                   (1993-2002).

William McClayton (1944)           Chief Administrative Officer, Diamond Management & Technology    Chicago Board
                                   Consultants, Inc. (global management consulting firm)            Member since
                                   (2001-present); formerly, Senior Partner, Arthur Andersen LLP    2004.
                                   (accounting) (1966-2001).  Directorships: Board of Managers,
                                   YMCA of Metropolitan Chicago; formerly, Trustee, Ravinia
                                   Festival.

Robert H. Wadsworth (1940)         President, Robert H. Wadsworth & Associates, Inc. (consulting    Chicago Board
                                   firm) (1983 to present).  Formerly, Trustee of funds managed     Member since
                                   by DIMA or its affiliates (1999-2004).                           2004.


</TABLE>









               Please Retain This Supplement for Future Reference



                                       2
March 31, 2008

<PAGE>


                       DWS GLOBAL/INTERNATIONAL FUND, INC.

                      DWS RREEF Global Infrastructure Fund
                 Class A, Class C and Institutional Class Shares


                       STATEMENT OF ADDITIONAL INFORMATION

                                  May 23, 2008




This Statement of Additional  Information is not a prospectus and should be read
in conjunction with the prospectuses (each a "Prospectus" and collectively,  the
"Prospectuses")  dated May 23, 2008 for Class A, Class C and Institutional Class
shares of DWS RREEF Global  Infrastructure  Fund (the "Fund"), a non-diversified
series of DWS  Global/International  Fund, Inc. (the  "Corporation")  as amended
from time to time,  copies of which may be obtained without charge by contacting
DWS Scudder  Distributors,  Inc., 222 South Riverside Plaza,  Chicago,  Illinois
60606-5808 or calling (800) 621-1148,  or by contacting the firm from which this
Statement of Additional  Information  was  obtained.  This  information  is also
available  along with other  related  materials on the  Securities  and Exchange
Commission's   (the   "SEC"   or   the    "Commission")    Internet   Web   site
(http://www.sec.gov).

When available, portions of the Annual Report to Shareholders of the Fund, dated
________, 2008, will be incorporated herein by reference, as specified herein. A
copy of the Fund's Annual Report may be obtained without charge from Shareholder
Services by calling (800) 621-1048.

This Statement of Additional  Information is  incorporated by reference into the
corresponding Prospectus for each class of shares of the Fund.





<PAGE>


                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----


INVESTMENT RESTRICTIONS.......................................................1

INVESTMENT POLICIES AND TECHNIQUES............................................3
         Investment Techniques................................................3
         Portfolio Holdings..................................................23

MANAGEMENT OF THE FUND.......................................................24
         Investment Advisor..................................................24
         Compensation of Portfolio Managers..................................27

FUND SERVICE PROVIDERS.......................................................33
         Administrator.......................................................33
         Distributor.........................................................33
         Custodian...........................................................38
         Transfer Agent and Shareholder Service Agent........................38
         Independent Registered Public Accounting Firm.......................39
         Legal Counsel.......................................................39

PORTFOLIO TRANSACTIONS.......................................................39

PURCHASE AND REDEMPTION OF SHARES............................................41

DIVIDENDS....................................................................56

TAXES........................................................................57

NET ASSET VALUE..............................................................62

DIRECTORS AND OFFICERS.......................................................63

FUND ORGANIZATION............................................................63

PROXY VOTING GUIDELINES......................................................65

FINANCIAL STATEMENTS.........................................................66

ADDITIONAL INFORMATION.......................................................67

APPENDIX.....................................................................68




                                       i
<PAGE>

                             INVESTMENT RESTRICTIONS

Except as otherwise indicated,  the Fund's investment objective and policies are
not fundamental and may be changed without a vote of shareholders. If there is a
change in the Fund's investment objective,  shareholders should consider whether
the Fund remains an appropriate  investment in light of their financial position
and needs. There can be no assurance that the Fund's objective will be met.

Unless otherwise indicated,  with the exception of the percentage limitations on
borrowing, the following restrictions apply at the time transactions are entered
into.  Accordingly,   any  later  increase  or  decrease  beyond  the  specified
limitation  resulting  from a  change  in the  Fund's  net  assets  will  not be
considered  in   determining   whether  it  has  complied  with  its  investment
restrictions.

The Fund has elected to be classified as a non-diversified series of an open-end
management  investment  company.  A  non-diversified  fund may  invest a greater
proportion of its assets in the  obligations  of a small number of issuers,  and
may be subject to greater risk and substantial  losses as a result of changes in
the financial  condition or the market's  assessment  of the issuers.  While not
limited by the Investment  Company Act of 1940, as amended (the "1940 Act"),  as
to the  proportion of its assets that it may invest in  obligations  of a single
issuer, the Fund will comply with the  diversification  requirements  imposed by
the Internal Revenue Code of 1986, as amended (the "Code"), for qualification as
a regulated investment company.

As a matter of fundamental policy:

1.       The Fund may not borrow money,  except as permitted under the 1940 Act,
         and  as  interpreted  or  modified  by  regulatory   authority   having
         jurisdiction, from time to time.

2.       The Fund may not issue senior securities, except as permitted under the
         1940 Act,  as amended,  and as  interpreted  or modified by  regulatory
         authority having jurisdiction, from time to time.

3.       The Fund may not  engage in the  business  of  underwriting  securities
         issued by others,  except to the extent  that the Fund may be deemed to
         be an  underwriter  in  connection  with the  disposition  of portfolio
         securities.

4.       The Fund may not  purchase  or sell real  estate,  which  term does not
         include  securities of companies which deal in real estate or mortgages
         or investments secured by real estate or interests therein, except that
         the Fund  reserves  freedom  of action to hold and to sell real  estate
         acquired as a result of the Fund's ownership of securities.

5.       The Fund may not purchase or sell  commodities,  except as permitted by
         the 1940  Act,  as  amended,  and as  interpreted  or  modified  by the
         regulatory authority having jurisdiction, from time to time.

6.       The Fund may not make loans except as permitted  under the 1940 Act, as
         amended,  and as interpreted or modified by regulatory authority having
         jurisdiction, from time to time.

A  fundamental  policy may not be changed  without the approval of a majority of
the outstanding  voting securities of the Fund which, under the 1940 Act and the
rules thereunder and as used in this Statement of Additional Information,  means
the lesser of (1) 67% or more of the voting securities  present at such meeting,
if the holders of more than 50% of the outstanding voting securities of the Fund
are  present  in person  or  represented  by proxy,  or (2) more than 50% of the
outstanding voting securities of the Fund.

The Fund has voluntarily  adopted certain policies and  restrictions,  which are
observed in the conduct of the Fund's  affairs.  These  nonfundamental  policies
represent  the  intentions  of the Trustees  based upon  current  circumstances.
Nonfundamental  policies  may be changed  by the  Trustees  without  shareholder
approval.

 As a matter of nonfundamental policy:


<PAGE>

(a)      The Fund may not purchase additional  investment securities at any time
         during which  outstanding  borrowings  exceed 5% of the total assets of
         the Fund.

(b)      The Fund may not  purchase  any  security  or enter  into a  repurchase
         agreement  if, as a result,  more than 15% of its net  assets  would be
         invested in repurchase  agreements  not entitling the holder to payment
         of principal and interest  within seven days and in securities that are
         illiquid by virtue of legal or  contractual  restrictions  on resale or
         the absence of a readily available market.

(c)      The Fund may not sell securities  short unless it owns or has the right
         to obtain  securities  equivalent in kind and amount to the  securities
         sold short,  and provided that  transactions  in futures  contracts and
         options are not deemed to constitute selling securities short.

(d)      The Fund may not purchase  securities on margin,  except to obtain such
         short-term  credits as are necessary for the clearance of  transactions
         and provided that margin payments in connection with futures  contracts
         and  options  on  futures  contracts  shall not  constitute  purchasing
         securities on margin.

(e)      The Fund may enter into  futures  contracts,  and write and buy put and
         call options relating to futures contracts.  The Fund may not, however,
         enter into leveraged  futures  transactions if it would be possible for
         the Fund to lose more money than it invested.

(f)      The Fund may not invest 25% or more of its total  assets in  securities
         of companies  principally engaged in any one industry,  except that the
         Fund may invest without  limitation in securities of companies  engaged
         principally in infrastructure-related companies.

(g)      The Fund may not acquire securities of registered  open-end  investment
         companies or registered unit  investment  trusts in reliance on Section
         12(d)(1)(F)  or  12(d)(1)(G)  of the 1940  Act.  The  1940 Act  imposes
         additional restrictions on acquisition by the Fund of securities issued
         by insurance  companies,  broker-dealers,  underwriters  or  investment
         advisors, and on transactions with affiliated persons as defined in the
         1940  Act.  It also  defines  and  forbids  the  creation  of cross and
         circular ownership. Neither the SEC nor any other agency of the federal
         or state government participates in or supervises the management of the
         Fund or its investment practices or policies.

(h)      The  Fund  may not  invest  more  than 15% of net  assets  in  illiquid
         securities;  the Fund will not purchase illiquid securities,  including
         repurchase agreements maturing in more than seven days, if, as a result
         thereof,  more than 15% of the Fund's net assets, valued at the time of
         the transaction, would be invested in such securities.

Fund Name. Under normal circumstances,  the Fund invests at least 80% of its net
assets in the securities of US and non-US infrastructure-related  companies. The
Fund considers a company to be an infrastructure-related company if at least 50%
of its  assets  are  infrastructure  assets  or 50% of its  gross  income or net
profits are derived,  directly or  indirectly,  from the  ownership,  operation,
management, utilization, construction or financing of infrastructure assets.

If market  fluctuations or shareholder  actions cause the Fund's  investments to
fall  below  this  percentage,  the Fund will act to  remedy  the  situation  as
promptly  as  possible.  However,  the Fund will not be  required  to dispose of
portfolio holdings or purchase additional investments immediately if the Advisor
believes  such  action may expose  the Fund to losses or  unreasonable  risks of
loss. Also, the Fund may occasionally depart from this percentage.  For example,
the Fund may depart  from this  percentage  to respond to  unusually  large cash
inflows or redemptions,  or to avoid losses caused by adverse market,  economic,
political or other conditions.

The Fund will provide its shareholders with at least sixty days' prior notice of
any change in the Fund's 80% investment policy described above.


                                       2
<PAGE>

                       INVESTMENT POLICIES AND TECHNIQUES

General

This section explains the extent to which the Advisor, RREEF America L.L.C. (the
"Subadvisor") and the  sub-subadvisors  (for purposes of the Investment Policies
and Techniques section the Advisor and Subadvisor and the  sub-subadvisors  will
be defined as the "Advisor") can use various investment  vehicles and strategies
in managing the Fund's assets.  Descriptions  of the  investment  techniques and
risks  associated  with  the  Fund  appear  herein.  In the  case of the  Fund's
principal investment  strategies,  these descriptions elaborate upon discussions
contained in the Prospectuses.

The Fund is a  non-diversified  series  of the  Trust,  an  open-end  management
company  which  continuously  offers and redeems  shares at net asset  value.  A
non-diversified  fund can  invest a  greater  portion  of its  assets in a given
company.  The Fund is a series of the type commonly  known as a mutual fund. The
Fund  offers the  following  classes  of  shares:  Class A, Class C, Class S and
Institutional  Class.  Each class has its own  features  and  policies.  Class S
shares  of the Fund are  offered  through a  separate  Statement  of  Additional
Information.

To meet  federal  income  tax  requirements  for  qualification  as a  regulated
investment company,  the Fund must limit its investments so that at the close of
each  quarter of its taxable  year (1) no more than 25% of its total  assets are
invested in the securities of a single issuer (other than the US government or a
regulated investment company), and (2) with respect to at least 50% of its total
assets,  no more than 5% of its total assets are invested in the securities of a
single issuer.

In  general,   within  the   restrictions   outlined  here  and  in  the  Fund's
Prospectuses,  the Advisor has broad powers to decide how to invest Fund assets,
including the power to hold them uninvested.

Investments are varied according to what is judged  advantageous  under changing
economic conditions. It is the Advisor's policy to retain maximum flexibility in
management without restrictive provisions as to the proportion of one or another
class of securities  that may be held,  subject to the  investment  restrictions
described herein.

Total return is part of the Fund's objective.  As a result, the portfolio of the
Fund includes debt as well as equity securities.

So long as a sufficient  number of  acceptable  securities  are  available,  the
Advisor  intends to keep the Fund fully  invested.  However,  under  exceptional
conditions, the Fund may assume a defensive position,  temporarily investing all
or a substantial  portion of its assets in cash or short-term  securities.  When
the Fund is invested for temporary  defensive  purposes,  it may not achieve its
investment objective.

The  Advisor  may use stock  index  futures  and  options as a way to expose the
Fund's cash  assets to the market  while  maintaining  liquidity.  However,  the
Advisor may not leverage  the Fund's  portfolio,  so there is no greater  market
risk to the Fund than if it purchases stocks.

Investment Techniques

Descriptions  in  this  Statement  of  Additional  Information  of a  particular
investment  practice or technique in which the Fund may engage (such as hedging,
etc.) or a financial  instrument  which the Fund may purchase  (such as options,
forward foreign currency contracts,  etc.) are meant to describe the spectrum of
investments that the Advisor, in its discretion,  might, but is not required to,
use in managing the Fund's portfolio assets. The Advisor may, in its discretion,
at any time, employ such practice, technique or instrument for one or more funds
but not for all funds  advised by it.  Furthermore,  it is possible that certain
types of financial instruments or investment techniques described herein may not
be available, permissible, economically feasible or effective for their intended
purposes in all markets. Certain practices, techniques or instruments may not be
principal activities of the Fund, but, to the extent employed,  could, from time
to time, have a material impact on the Fund's performance.

                                       3
<PAGE>

Infrastructure   Assets.   The  Fund  seeks  total   return  from  both  capital
appreciation  and current  income  through  investment in a global  portfolio of
securities of infrastructure-related companies.

Under normal  circumstances,  the Fund invests at least 80% of its net assets in
the  securities  of US and  non-US  infrastructure-related  companies.  The Fund
considers a company to be an  infrastructure-related  company if at least 50% of
its assets are  infrastructure  assets or 50% of its gross income or net profits
are derived, directly or indirectly, from the ownership, operation,  management,
utilization, construction or financing of infrastructure assets.

Infrastructure assets are physical assets,  structures and networks that provide
necessary services and operations to society.  Examples of infrastructure assets
include  transportation  assets (e.g.,  toll roads,  bridges,  tunnels,  parking
facilities,  railroads, rapid transit links, airports,  refueling facilities and
seaports),  utility assets (e.g.,  electric transmission and distribution lines,
power  generation  facilities,  gas and water  distribution  facilities,  sewage
treatment  plants,  broadcast  and  wireless  towers,  and cable  and  satellite
networks) and social assets (e.g., courthouses, hospitals, schools, correctional
facilities,  stadiums and subsidized housing). The Fund will focus on investment
in companies with a direct investment in  infrastructure  assets and deemphasize
investment in companies that operate or utilize  infrastructure  assets in their
business  (e.g.,  electric  utilities,  airlines)  or  companies  with  indirect
exposure  to  infrastructure   investment   (e.g.,   suppliers  of  construction
materials).

The Fund may  invest in  common,  convertible  and  preferred  stock,  rights or
warrants  to  purchase   common  stock,   debt  securities  and  listed  limited
partnership  interests.  Under normal circumstances,  the majority of the Fund's
assets are invested in securities of issuers organized or located outside the US
or doing a substantial amount of business outside the US. The Fund allocates its
assets  among  various  regions and  countries,  including  exposure to emerging
market countries.

The Fund may also  invest in unlisted  securities  provided  that the  portfolio
managers  expect  such  securities  to be listed on a  recognized  public  stock
exchange  or  traded  over  the  counter  within  six  months  from  the time of
investment.  In  addition,  while  the  Fund  does not  currently  plan to hedge
international   currency  risk,   the  Fund  may  engage  in  foreign   currency
transactions,  including foreign currency forward contracts,  options, swaps and
other similar  transactions  in  connection  with  investments  in securities of
non-US companies.

Asset-Backed Securities.  Asset-backed securities may include pools of mortgages
("mortgage-backed  securities"),  loans, receivables or other assets. Payment of
principal and interest may be largely dependent upon the cash flows generated by
the assets backing the securities. For purposes of determining the percentage of
a Fund's total assets  invested in securities of issuers having their  principal
business activities in a particular  industry,  asset-backed  securities will be
classified separately,  based on the nature of the underlying assets,  according
to the  following  categories:  captive auto,  diversified,  retail and consumer
loans, captive equipment and business, business trade receivables,  nuclear fuel
and capital and mortgage lending.  Primarily,  these securities may not have the
benefit of any security interest in the related assets.  Credit card receivables
are  generally  unsecured  and the debtors are entitled to the  protection  of a
number  of state and  federal  consumer  credit  laws,  many of which  give such
debtors the right to set off certain  amounts owed on the credit cards,  thereby
reducing  the  balance  due.  There  is  the  possibility   that  recoveries  on
repossessed  collateral may not, in some cases, be available to support payments
on these  securities.  Asset-backed  securities  are  often  backed by a pool of
assets  representing the obligations of a number of different parties. To lessen
the effect of failures by obligors on underlying  assets to make  payments,  the
securities  may  contain   elements  of  credit  support  which  fall  into  two
categories:  (i)  liquidity  protection,  and  (ii)  protection  against  losses
resulting  from  ultimate  default  by an  obligor  on  the  underlying  assets.
Liquidity  protection  refers to the  provision  of  advances,  generally by the
entity  administering the pool of assets, to ensure that the receipt of payments
on the underlying  pool occurs in a timely  fashion.  Protection  against losses
results from payment of the insurance  obligations  on at least a portion of the
assets in the pool. This protection may be provided through guarantees, policies
or letters of credit  obtained  by the  issuer or  sponsor  from third  parties,
through various means of structuring the transaction or through a combination of
such  approaches.  The Funds will not pay any  additional  or separate  fees for
credit  support.  The  degree  of  credit  support  provided  for each  issue is
generally  based on historical  information  respecting the level of credit risk
associated  with the  underlying  assets.  Delinquency or loss in excess of that
anticipated or failure of the credit support could  adversely  affect the return
on an investment in such a security. The availability of asset-backed securities
may be affected by legislative or regulatory  developments.  It is possible that
such developments may require the Funds to dispose of any then existing holdings
of such securities.


                                       4
<PAGE>

Borrowing.  As a matter of  fundamental  policy,  a Fund will not borrow  money,
except as  permitted  under the 1940 Act,  and as  interpreted  or  modified  by
regulatory  authority  having  jurisdiction,  from time to time. While the Board
does not currently intend to borrow for investment  leveraging purposes, if such
a  strategy  were  implemented  in the  future  it  would  increase  the  Fund's
volatility  and the risk of loss in a declining  market.  Borrowing  by the Fund
will involve special risk  considerations.  Although the principal of the Fund's
borrowings will be fixed,  the Fund's assets may change in value during the time
a borrowing is outstanding, thus increasing relative exposure to capital risk.

Common  Stocks.  Common  stock is issued by companies to raise cash for business
purposes  and  represents  a  proportionate  interest in the issuing  companies.
Therefore,  the Fund  participates  in the  success or failure of any company in
which  it  holds  stock.   The  market  value  of  common  stock  can  fluctuate
significantly,  reflecting  the  business  performance  of the issuing  company,
investor perception and general economic and financial market movements. Despite
the risk of price volatility, however, common stocks have historically offered a
greater potential for long-term gain on investment, compared to other classes of
financial  assets such as bonds or cash  equivalents,  although  there can be no
assurance that this will be true in the future.

Convertible Securities. The Fund may invest in convertible securities,  that is,
bonds,  notes,  debentures,  preferred  stocks  and other  securities  which are
convertible into common stock. Investments in convertible securities can provide
an  opportunity  for capital  appreciation  and/or income  through  interest and
dividend payments by virtue of their conversion or exchange features.

The convertible  securities in which the Fund may invest are either fixed income
or zero coupon debt  securities  which may be converted or exchanged at a stated
or  determinable  exchange  ratio into  underlying  shares of common stock.  The
exchange ratio for any particular convertible security may be adjusted from time
to time due to stock splits, dividends, spin-offs, other corporate distributions
or scheduled  changes in the exchange  ratio.  Convertible  debt  securities and
convertible  preferred  stocks,  until converted,  have general  characteristics
similar to both debt and equity  securities.  Although  to a lesser  extent than
with debt securities generally, the market value of convertible securities tends
to decline as interest  rates  increase  and,  conversely,  tends to increase as
interest  rates  decline.  In addition,  because of the  conversion  or exchange
feature,  the market value of convertible  securities  typically  changes as the
market value of the underlying common stocks changes, and, therefore, also tends
to follow  movements  in the  general  market  for equity  securities.  A unique
feature of convertible  securities is that as the market price of the underlying
common stock declines,  convertible  securities tend to trade  increasingly on a
yield basis, and so may not experience  market value declines to the same extent
as the underlying  common stock.  When the market price of the underlying common
stock  increases,  the prices of the  convertible  securities  tend to rise as a
reflection of the value of the underlying common stock,  although  typically not
as much as the  underlying  common stock.  While no securities  investments  are
without risk,  investments in convertible  securities generally entail less risk
than investments in common stock of the same issuer.

As debt securities,  convertible  securities are investments which provide for a
stream of income (or in the case of zero coupon securities, accretion of income)
with  generally  higher  yields  than  common  stocks.   Convertible  securities
generally offer lower yields than non-convertible  securities of similar quality
because of their conversion or exchange features.

Of course,  like all debt  securities,  there can be no  assurance  of income or
principal payments because the issuers of the convertible securities may default
on their obligations.

Convertible   securities   generally  are  subordinated  to  other  similar  but
non-convertible  securities of the same issuer,  although  convertible bonds, as
corporate debt  obligations,  enjoy  seniority in right of payment to all equity
securities,  and  convertible  preferred stock is senior to common stock, of the
same issuer.  However,  because of the subordination feature,  convertible bonds
and  convertible  preferred  stock  typically  have lower  ratings  than similar
non-convertible securities. Convertible securities may be issued as fixed income
obligations that pay current income or as zero coupon notes and bonds, including
Liquid Yield Option Notes ("LYONs"(TM)).

Equity  Equivalents.  In addition to  investing in common  stocks,  the Fund may
invest in other equity securities and equity equivalents,  including  securities
that permit the Fund to receive an equity interest in an issuer, the opportunity
to  acquire  an equity  interest  in an issuer or the  opportunity  to receive a
return on its  investment  that permits the Fund


                                       5
<PAGE>

to benefit  from the growth  over time in the equity of an issuer.  Examples  of
equity  securities and equity  security  equivalents  include  preferred  stock,
convertible preferred stock and convertible debt securities.

The Fund will limit its holdings of convertible  debt  securities to those that,
at the  time of  purchase,  are  rated  at  least  B- by the  Standard  & Poor's
Corporation ("S&P") or B3 by Moody's Investors Service  ("Moody's"),  or, if not
rated by S&P and Moody's, are of equivalent  investment quality as determined by
the Advisor.  The Fund's  investments in convertible  debt  securities and other
high-yield/high-risk,     nonconvertible    debt    securities    rated    below
investment-grade  will  comprise  less than 20% of the Fund's net  assets.  Debt
securities   rated  below  the  four  highest   categories  are  not  considered
investment-grade obligations.  These securities have speculative characteristics
and present more credit risk than investment-grade obligations.

Equity  equivalents also may include securities whose value or return is derived
from the value or return of a different security.

Debt  Securities.  When the Advisor  believes that it is appropriate to do so in
order to achieve a Fund's objective of long-term  capital  appreciation,  a Fund
may invest in debt  securities,  including bonds of private  issuers.  Portfolio
debt  investments  will be selected on the basis of, among other things,  credit
quality, and the fundamental  outlooks for currency,  economic and interest rate
trends,  taking into  account the ability to hedge a degree of currency or local
bond price risk. A Fund may purchase  "investment-grade" bonds, rated Aaa, Aa, A
or Baa by Moody's or AAA,  AA, A or BBB by S&P or, if  unrated,  judged to be of
equivalent quality as determined by the Advisor.

The principal  risks involved with  investments  in bonds include  interest rate
risk, credit risk and pre-payment risk.  Interest rate risk refers to the likely
decline in the value of bonds as  interest  rates rise.  Generally,  longer-term
securities are more susceptible to changes in value as a result of interest-rate
changes than are shorter-term securities. Credit risk refers to the risk that an
issuer of a bond may  default  with  respect  to the  payment of  principal  and
interest.  The  lower  a bond  is  rated,  the  more  it is  considered  to be a
speculative or risky  investment.  Pre-payment risk is commonly  associated with
pooled debt  securities,  such as  mortgage-backed  securities  and asset backed
securities,  but may affect other debt  securities as well.  When the underlying
debt obligations are prepaid ahead of schedule,  the return on the security will
be lower than expected.  Pre-payment  rates usually increase when interest rates
are falling.

Convertible  Debt  Securities.  A convertible  debt  security is a  fixed-income
security that offers the potential for capital appreciation through a conversion
feature  that  enables the holder to convert the  fixed-income  security  into a
stated number of shares of common stock. As fixed-income securities, convertible
debt securities  provide a stable stream of income with generally  higher yields
than common stocks.  Because  convertible debt securities offer the potential to
benefit from increases in the market price of the underlying  common stock, they
generally offer lower yields than non-convertible securities of similar quality.
Like all  fixed-income  securities,  there can be no assurance of current income
because  the  issuers  of  the  convertible  securities  may  default  on  their
obligations.  In addition,  there can be no  assurance  of capital  appreciation
because the value of the underlying common stock will fluctuate.

Convertible  debt  securities  generally are  subordinated  to other similar but
non-convertible debt securities of the same issuer,  although convertible bonds,
as corporate debt obligations, enjoy seniority in right of payment to all equity
securities.   Because  of  the  subordination  feature,   however,   convertible
securities typically have lower ratings than similar non-convertible securities.

Convertible  debt  securities  that  comprise  part of the  Fund's  fixed-income
portfolio  will be subject to the same  limitations  with  respect to quality as
those described above under "Debt Securities."

Investment of  Uninvested  Cash  Balances.  The Fund may have cash balances that
have not been invested in portfolio securities  ("Uninvested Cash").  Uninvested
Cash may result  from a variety of  sources,  including  dividends  or  interest
received from portfolio securities, unsettled securities transactions,  reserves
held for  investment  strategy  purposes,  scheduled  maturity  of  investments,
liquidation  of  investment  securities  to  meet  anticipated  redemptions  and
dividend payments, and new cash received from investors.  Uninvested Cash may be
invested  directly  in  money  market   instruments  or  other  short-term  debt
obligations.  Pursuant to an Exemptive Order issued by the SEC, the Fund may use
Uninvested  Cash to purchase  shares of affiliated  funds including money market
funds,  short-term bond funds and Cash Management QP Trust or one or more future
entities  for which the  Advisor  acts as trustee  or


                                       6
<PAGE>

investment advisor that operate as cash management  investment vehicles and that
are excluded  from the  definition  of  investment  company  pursuant to section
3(c)(1) or 3(c)(7) of the 1940 Act (collectively, the "Central Funds") in excess
of the limitations of Section  12(d)(1) of the 1940 Act.  Investment by the Fund
in shares of the Central Funds will be in accordance with the Fund's  investment
policies and restrictions as set forth in its registration statement.

Certain of the Central Funds comply with rule 2a-7 under the 1940 Act. The other
Central Funds are or will be short-term  bond funds that invest in  fixed-income
securities  and maintain a dollar  weighted  average  maturity of three years or
less.  Each of the  Central  Funds will be managed  specifically  to  maintain a
highly liquid  portfolio,  and access to them will enhance the Fund's ability to
manage Uninvested Cash.

The Fund will invest  Uninvested  Cash in Central  Funds only to the extent that
the Fund's aggregate  investment in the Central Funds does not exceed 25% of its
total  assets.  Purchase  and sales of shares of  Central  Funds are made at net
asset value.

Eurodollar  Obligations.  Eurodollar bank obligations are US  dollar-denominated
certificates  of deposit and time deposits issued outside the US capital markets
by foreign  branches of US banks and US branches  of foreign  banks.  Eurodollar
obligations  are  subject  to the same risks that  pertain to  domestic  issues,
notably credit risk,  market risk and liquidity risk.  Additionally,  Eurodollar
obligations are subject to certain sovereign risks.

Foreign  Currencies.  Because  investments  in foreign  securities  usually will
involve currencies of foreign  countries,  and because the Fund may hold foreign
currencies  and  forward  contracts,  futures  contracts  and options on foreign
currencies and foreign  currency futures  contracts,  the value of the assets of
the Fund as measured in U.S. dollars may be affected favorably or unfavorably by
changes in foreign currency exchange rates and exchange control regulations, and
the  Fund  may  incur  costs  and   experience   conversion   difficulties   and
uncertainties  in  connection  with  conversions   between  various  currencies.
Fluctuations in exchange rates may also affect the earning power and asset value
of the foreign entity issuing the security.

The  strength  or  weakness  of the U.S.  dollar  against  these  currencies  is
responsible for part of the Fund's investment  performance.  If the dollar falls
in value  relative to the  Japanese  yen,  for  example,  the dollar  value of a
Japanese  stock  held in the  portfolio  will rise even  though the price of the
stock remains  unchanged.  Conversely,  if the dollar rises in value relative to
the yen,  the  dollar  value of the  Japanese  stock  will  fall.  Many  foreign
currencies have experienced significant devaluation relative to the dollar.

Although the Fund values its assets daily in terms of U.S. dollars,  it does not
intend to convert its  holdings  of foreign  currencies  into U.S.  dollars on a
daily basis.  It will do so from time to time, and investors  should be aware of
the costs of  currency  conversion.  Although  foreign  exchange  dealers do not
charge a fee for  conversion,  they do realize a profit based on the  difference
(the "spread")  between the prices at which they are buying and selling  various
currencies.  Thus, a dealer may offer to sell a foreign  currency to the Fund at
one rate,  while  offering a lesser rate of  exchange  should the Fund desire to
resell that currency to the dealer.  The Fund will conduct its foreign  currency
exchange  transactions  either  on a spot  (i.e.,  cash)  basis at the spot rate
prevailing in the foreign  currency  exchange  market,  or through entering into
options or forward or futures contracts to purchase or sell foreign currencies.

Foreign Fixed Income Securities.  Since most foreign fixed income securities are
not rated, the Fund will invest in foreign fixed income  securities based on the
Advisor's analysis without relying on published ratings.  Since such investments
will be based upon the Advisor's  analysis  rather than upon published  ratings,
achievement  of the  Fund's  goals may  depend  more upon the  abilities  of the
Advisor than would otherwise be the case.

The value of the foreign fixed income  securities held by the Fund, and thus the
net asset value of the Fund's shares,  generally will fluctuate with (a) changes
in the  perceived  creditworthiness  of the  issuers  of those  securities,  (b)
movements  in  interest  rates,  and (c) changes in the  relative  values of the
currencies  in which the  Fund's  investments  in fixed  income  securities  are
denominated  with respect to the US Dollar.  The extent of the fluctuation  will
depend  on  various  factors,  such  as  the  average  maturity  of  the  Fund's
investments in foreign fixed income securities, and the extent to which the Fund
hedges its interest  rate,  credit and currency  exchange  rate risks.  A longer
average  maturity  generally is associated  with a higher level of volatility in
the market value of such securities in response to changes in market conditions.


                                       7
<PAGE>

Investments  in  sovereign  debt,  including  Brady Bonds  (Brady Bonds are debt
securities   issued  under  a  plan  implemented  to  allow  debtor  nations  to
restructure their  outstanding  commercial bank  indebtedness),  involve special
risks. Foreign governmental issuers of debt or the governmental authorities that
control the repayment of the debt may be unable or unwilling to repay  principal
or pay  interest  when due. In the event of default,  there may be limited or no
legal recourse in that, generally,  remedies for defaults must be pursued in the
courts of the defaulting  party.  Political  conditions,  especially a sovereign
entity's  willingness to meet the terms of its fixed income  securities,  are of
considerable  significance.  Also, there can be no assurance that the holders of
commercial bank loans to the same sovereign  entity may not contest  payments to
the holders of sovereign debt in the event of default under commercial bank loan
agreements.  In  addition,  there is no  bankruptcy  proceeding  with respect to
sovereign debt on which a sovereign has defaulted, and the Fund may be unable to
collect  all or any  part  of its  investment  in a  particular  issue.  Foreign
investment  in certain  sovereign  debt is  restricted  or controlled to varying
degrees,  including  requiring  governmental  approval for the  repatriation  of
income, capital or proceed of sales by foreign investors.  These restrictions or
controls may at times limit or preclude foreign  investment in certain sovereign
debt or increase the costs and expenses of the Fund.

Sovereign  debt of  emerging  market  governmental  issuers is to be  considered
speculative.  Emerging market governmental issuers are among the largest debtors
to commercial banks, foreign governments,  international financial organizations
and other financial  institutions.  Certain emerging market governmental issuers
have  not  been  able to make  payments  of  interest  on or  principal  of debt
obligations as those payments have come due. There is a history of defaults with
respect  to  commercial  bank  loans by  public  and  private  entities  issuing
sovereign  debt.  All or a portion of the  interest  payments  and/or  principal
repayment  with respect to sovereign debt may be  uncollateralized.  Obligations
arising from past restructuring  agreements may affect the economic  performance
and political and social stability of those issuers.

The  ability of  emerging  market  country  governmental  issuers to make timely
payments  on their  obligations  is  likely  to be  influenced  strongly  by the
issuer's balance of payments,  including export  performance,  and its access to
international  credits and  investments.  An emerging  market whose  exports are
concentrated  in a few  commodities  could be  vulnerable  to a  decline  in the
international   prices   of  one  or  more  of  those   commodities.   Increased
protectionism  on the part of an emerging  market's  trading partners could also
adversely  affect the country's  exports and diminish its trade account surplus,
if any. To the extent that emerging  markets  receive payment for its exports in
currencies other than dollars or non-emerging market currencies,  its ability to
make debt payments  denominated  in dollars or  non-emerging  market  currencies
could be affected.

Another factor bearing on the ability of emerging market countries to repay debt
obligations is the level of international reserves of the country.  Fluctuations
in the level of these  reserves  affect the amount of foreign  exchange  readily
available  for  external  debt  payments  and thus  could  have a bearing on the
capacity  of  emerging   market   countries  to  make  payments  on  these  debt
obligations.

To the extent that an emerging  market country cannot  generate a trade surplus,
it must  depend on  continuing  loans  from  foreign  governments,  multilateral
organizations or private commercial banks, aid payments from foreign governments
and inflows of foreign investment. The access of emerging markets to these forms
of external  funding may not be certain,  and a withdrawal  of external  funding
could  adversely  affect the capacity of emerging  market  country  governmental
issuers  to make  payments  on  their  obligations.  In  addition,  the  cost of
servicing  emerging  market  debt  obligations  can be  affected  by a change in
international  interest  rates  since the  majority of these  obligations  carry
interest rates that are adjusted periodically based upon international rates.

Foreign  Investment.  Foreign securities are normally  denominated and traded in
foreign currencies. As a result, the value of the Fund's foreign investments and
the value of its shares may be affected  favorably or  unfavorably by changes in
currency exchange rates relative to the US dollar. There may be less information
publicly  available  about a foreign issuer than about a US issuer,  and foreign
issuers  may not be subject to  accounting,  auditing  and  financial  reporting
standards  and practices  comparable to those in the US. The  securities of some
foreign  issuers are less liquid and at times more volatile  than  securities of
comparable US issuers.  Foreign  brokerage  commissions  and other fees are also
generally  higher  than in the  US.  Foreign  settlement  procedures  and  trade
regulations  may involve  certain risks (such as delay in payment or delivery of
securities or in the recovery of the Fund's assets held abroad) and expenses not
present in the settlement of  investments in US markets.  Payment for securities
without delivery may be required in certain foreign markets.

                                       8
<PAGE>

In addition, foreign securities may be subject to the risk of nationalization or
expropriation   of  assets,   imposition  of  currency   exchange   controls  or
restrictions on the  repatriation of foreign  currency,  confiscatory  taxation,
political or  financial  instability  and  diplomatic  developments  which could
affect  the  value of the  Fund's  investments  in  certain  foreign  countries.
Governments   of  many   countries  have  exercised  and  continue  to  exercise
substantial  influence  over many  aspects of the  private  sector  through  the
ownership or control of many  companies,  including some of the largest in these
countries.  As  a  result,  government  actions  in  the  future  could  have  a
significant  effect on economic  conditions which may adversely affect prices of
certain   portfolio   securities.   There  is  also  generally  less  government
supervision and regulation of stock  exchanges,  brokers,  and listed  companies
than in the US.  Dividends or interest on, or proceeds from the sale of, foreign
securities  may be subject  to foreign  withholding  taxes,  and  special US tax
considerations  may apply.  Moreover,  foreign economies may differ favorably or
unfavorably  from the US economy in such  respects  as growth of gross  national
product, rate of inflation, capital reinvestment,  resource self-sufficiency and
balance of payments position.

Legal remedies  available to investors in certain foreign  countries may be more
limited than those  available  with respect to investments in the US or in other
foreign  countries.  The laws of some  foreign  countries  may limit the  Fund's
ability to invest in securities of certain  issuers  organized under the laws of
those foreign countries.

Of particular  importance,  many foreign  countries are heavily  dependent  upon
exports,  particularly to developed countries,  and, accordingly,  have been and
may continue to be adversely affected by trade barriers,  managed adjustments in
relative currency values, and other protectionist measures imposed or negotiated
by the US and other  countries with which they trade.  These economies also have
been and may continue to be negatively impacted by economic conditions in the US
and other  trading  partners,  which can lower the demand for goods  produced in
those countries.

The  risks  described  above,   including  the  risks  of   nationalization   or
expropriation of assets,  typically are increased in connection with investments
in `emerging  markets.' For example,  political and economic structures in these
countries may be in their infancy and developing rapidly, and such countries may
lack  the  social,  political  and  economic  stability  characteristic  of more
developed countries (including amplified risk of war and terrorism).  Certain of
these countries have in the past failed to recognize private property rights and
have at times  nationalized and  expropriated  the assets of private  companies.
Investments in emerging markets may be considered speculative.

The  currencies  of  certain   emerging   market   countries  have   experienced
devaluations  relative to the US dollar,  and future  devaluations may adversely
affect the value of assets denominated in such currencies. In addition, currency
hedging techniques may be unavailable in certain emerging market countries. Many
emerging  market  countries have  experienced  substantial,  and in some periods
extremely  high,  rates of  inflation or  deflation  for many years,  and future
inflation may adversely  affect the  economies  and  securities  markets of such
countries.

In addition, unanticipated political or social developments may affect the value
of  investments  in  emerging   markets  and  the   availability  of  additional
investments  in these  markets.  Any change in the  leadership  or  politics  of
emerging  market  countries,  or  the  countries  that  exercise  a  significant
influence  over  those  countries,  may halt the  expansion  of or  reverse  the
liberalization of foreign investment policies now occurring and adversely affect
existing  investment  opportunities.  The small size, limited trading volume and
relative  inexperience  of the  securities  markets in these  countries may make
investments in securities  traded in emerging markets illiquid and more volatile
than investments in securities traded in more developed countries.  For example,
limited  market  size may cause  prices to be unduly  influenced  by traders who
control  large  positions.  In  addition,  the Fund may be required to establish
special custodial or other arrangements  before making investments in securities
traded  in  emerging  markets.  There  may be  little  financial  or  accounting
information available with respect to issuers of emerging market securities, and
it may be  difficult  as a  result  to  assess  the  value  of  prospects  of an
investment in such securities.

The risk  also  exists  that an  emergency  situation  may  arise in one or more
emerging  markets as a result of which trading of securities may cease or may be
substantially curtailed and prices for the Fund's securities in such markets may
not be readily available.  The Fund may suspend redemption of its shares for any
period during which an emergency exists,  as determined by the SEC.  Accordingly
if a Fund believes that appropriate  circumstances exist, it will promptly apply
to the SEC for a determination  that an emergency is present.  During the period
commencing from a Fund's  identification of such condition until the date of the
SEC action, the Fund's securities in the affected markets will be valued at fair
value determined in good faith by or under the direction of the Fund's Board.

                                       9
<PAGE>

Certain of the foregoing risks may also apply to some extent to securities of US
issuers that are denominated in foreign currencies or that are traded in foreign
markets, or securities of US issuers having significant foreign operations.

High Yield/High Risk Bonds. The Fund may also purchase debt securities which are
rated below  investment-grade  (commonly referred to as "junk bonds"),  that is,
rated below Baa by Moody's or below BBB by S&P and unrated  securities judged to
be of equivalent quality as determined by the Advisor.  These securities usually
entail greater risk  (including the  possibility of default or bankruptcy of the
issuers of such securities),  generally involve greater  volatility of price and
risk to principal  and income,  and may be less liquid,  than  securities in the
higher rating  categories.  The lower the ratings of such debt  securities,  the
more their risks render them like equity  securities.  Securities rated D may be
in default with respect to payment of principal or interest.

Issuers of such high yielding  securities often are highly leveraged and may not
have available to them more  traditional  methods of financing.  Therefore,  the
risk  associated  with  acquiring the  securities  of such issuers  generally is
greater than is the case with higher rated  securities.  For example,  during an
economic  downturn  or a  sustained  period of  rising  interest  rates,  highly
leveraged  issuers of high yield  securities  may experience  financial  stress.
During such periods, such issuers may not have sufficient revenues to meet their
interest  payment  obligations.   The  issuer's  ability  to  service  its  debt
obligations may also be adversely affected by specific  corporate  developments,
or the issuer's inability to meet specific projected business forecasts,  or the
unavailability  of  additional  financing.  The risk of loss from default by the
issuer is significantly greater for the holders of high yield securities because
such  securities  are generally  unsecured and are often  subordinated  to other
creditors  of the  issuer.  Prices  and  yields of high  yield  securities  will
fluctuate over time and, during periods of economic  uncertainty,  volatility of
high yield  securities  may  adversely  affect the  Fund's net asset  value.  In
addition,  investments  in high yield zero coupon or pay-in-kind  bonds,  rather
than  income-bearing  high yield securities,  may be more speculative and may be
subject to greater fluctuations in value due to changes in interest rates.

The Fund may have  difficulty  disposing  of  certain  high  yield  (high  risk)
securities because they may have a thin trading market.  Because not all dealers
maintain  markets in all high yield  securities,  the Fund anticipates that such
securities  could be sold only to a limited  number of dealers or  institutional
investors.  The lack of a liquid  secondary market may have an adverse effect on
the market price and the Fund's ability to dispose of particular  issues and may
also make it more difficult for the Fund to obtain  accurate  market  quotations
for  purposes of valuing the Fund's  assets.  Market  quotations  generally  are
available  on many high yield  issues only from a limited  number of dealers and
may not  necessarily  represent  firm bids of such  dealers or prices for actual
sales.  Adverse  publicity and investor  perceptions may decrease the values and
liquidity of high yield  securities.  These  securities may also involve special
registration   responsibilities,   liabilities  and  costs,  and  liquidity  and
valuation difficulties.

Credit  quality in the  high-yield  securities  market can change  suddenly  and
unexpectedly,  and even recently issued credit ratings may not fully reflect the
actual risks posed by a particular high-yield security. For these reasons, it is
generally the policy of the Advisor not to rely exclusively on ratings issued by
established credit rating agencies,  but to supplement such ratings with its own
independent and on-going review of credit quality. The achievement of the Fund's
investment  objective by investment in such  securities may be more dependent on
the Advisor's credit analysis than is the case for higher quality bonds.  Should
the rating of a portfolio  security be  downgraded,  the Advisor will  determine
whether  it is in the best  interests  of the Fund to retain or  dispose of such
security.

Illiquid Securities and Restricted Securities.  The Fund may purchase securities
that are subject to legal or  contractual  restrictions  on resale  ("restricted
securities").  Generally speaking, restricted securities may be sold (i) only to
qualified  institutional buyers; (ii) in a privately negotiated transaction to a
limited number of purchasers;  (iii) in limited  quantities after they have been
held for a specified  period of time and other conditions are met pursuant to an
exemption  from  registration;  or  (iv)  in  a  public  offering  for  which  a
registration statement is in effect under the Securities Act of 1933, as amended
(the "1933 Act").  Issuers of  restricted  securities  may not be subject to the
disclosure and other investor  protection  requirements that would be applicable
if their securities were publicly traded.

Restricted  securities  are often  illiquid,  but they may also be  liquid.  For
example,  restricted securities that are eligible for resale under Rule 144A are
often deemed to be liquid.

                                       10
<PAGE>

The Trust's Board has approved  guidelines for use by the Advisor in determining
whether a security  is liquid or  illiquid.  Among the  factors  the Advisor may
consider in reaching  liquidity  decisions relating to Rule 144A securities are:
(1) the  frequency  of trades  and quotes  for the  security;  (2) the number of
dealers  wishing  to  purchase  or sell the  security  and the  number  of other
potential purchasers;  (3) dealer undertakings to make a market in the security;
and (4) the nature of the security and the nature of the market for the security
(i.e.,  the time  needed to dispose of the  security,  the method of  soliciting
offers, and the mechanics of the transfer.  Issuers of restricted securities may
not be subject to the disclosure and other investor protection  requirement that
would  be  applicable  if  their  securities  were  publicly  traded.   Where  a
registration statement is required for the resale of restricted securities,  the
Fund may be required to bear all or part of the registration  expenses. The Fund
may be deemed to be an "underwriter"  for purposes of the 1933 Act, when selling
restricted  securities to the public and, in such event,  the Fund may be liable
to purchasers of such securities if the registration  statement  prepared by the
issuer is materially inaccurate or misleading.

The  Fund  may  also  purchase  securities  that  are not  subject  to  legal or
contractual   restrictions  on  resale,  but  that  are  deemed  illiquid.  Such
securities  may be illiquid,  for example,  because  there is a limited  trading
market for them.

The Fund may be unable to sell a restricted or illiquid  security.  In addition,
it may be more  difficult to determine a market value for restricted or illiquid
securities.  Moreover,  if adverse market  conditions were to develop during the
period between the Fund's decision to sell a restricted or illiquid security and
the point at which the Fund is permitted or able to sell such security, the Fund
might  obtain a price  less  favorable  than the price  that  prevailed  when it
decided to sell.

Impact of Large  Redemptions  and  Purchases of Fund Shares.  From time to time,
shareholders  of the Fund (which may include  affiliated  and/or  non-affiliated
registered  investment  companies  that invest in the Fund) may make  relatively
large redemptions or purchases of Fund shares.  These transactions may cause the
Fund to have to sell securities or invest  additional  cash, as the case may be.
While it is impossible to predict the overall impact of these  transactions over
time,  there could be adverse  effects on the Fund's  performance  to the extent
that the Fund may be required to sell securities or invest cash at times when it
would  not  otherwise  do so.  These  transactions  could  also  accelerate  the
realization of taxable  income if sales of securities  resulted in capital gains
or other income and could also increase  transaction costs, which may impact the
Fund's expense ratio.

Impact of Sub-Prime  Mortgage Market.  The Fund may invest in companies that may
be affected by the downturn in the sub-prime  mortgage lending market in the US.
Sub-prime loans, which tend to have higher interest rates, are made to borrowers
who do not qualify for prime rate loans  because of their low credit  ratings or
other factors that suggest that they have a higher  probability  of  defaulting.
The downturn in the sub-prime  mortgage-lending market has had, and may continue
to have, a far-reaching  impact on the broader securities market,  especially in
the  sub-prime,  asset-backed  and other debt  related  securities  markets.  In
addition to  performance  issues,  the reduced  investor  demand for  sub-prime,
asset-backed  and other debt related  securities as a result of the downturn has
created  liquidity  and  valuation  issues  for  these  securities.  The  Fund's
investments  related to or impacted by the  downturn in the  sub-prime  mortgage
lending market may cause the overall value of the Fund to decrease.

IPO Risk.  Securities  issued  through  an  initial  public  offering  (IPO) can
experience an immediate drop in value if the demand for the securities  does not
continue to support the  offering  price.  Information  about the issuers of IPO
securities is also difficult to acquire since they are new to the market and may
not have lengthy operating histories.  The Fund may engage in short-term trading
in connection with its IPO investments, which could produce higher trading costs
and  adverse  tax  consequences.  The number of  securities  issued in an IPO is
limited,  so it is likely that IPO securities will represent a smaller component
of the Fund's  portfolio  as the Fund's  assets  increase  (and thus have a more
limited effect on the Fund's performance).

Interfund Borrowing and Lending Program.  The Fund has received exemptive relief
from the SEC,  which  permits the Fund to  participate  in an interfund  lending
program among certain investment companies advised by the Advisor. The interfund
lending  program  allows the  participating  funds to borrow money from and loan
money to each other for temporary or emergency purposes.  The program is subject
to a number of conditions designed to ensure fair and equitable treatment of all
participating  funds,  including  the  following:  (1) no fund may borrow  money
through the program  unless it receives a more  favorable  interest  rate than a
rate  approximating  the  lowest  interest  rate at which  bank  loans  would be
available to any of the participating  funds under a loan agreement;  and (2)


                                       11
<PAGE>

no fund may lend money through the program  unless it receives a more  favorable
return than that available from an investment in repurchase  agreements  and, to
the extent applicable,  money market cash sweep arrangements.  In addition,  the
Fund  may  participate  in the  program  only  if and to the  extent  that  such
participation is consistent with the fund's  investment  objectives and policies
(for instance, money market funds would normally participate only as lenders and
tax exempt funds only as borrowers).  Interfund  loans and borrowings may extend
only overnight,  but could have a maximum  duration of seven days.  Loans may be
called on one day's notice.  the Fund may have to borrow from a bank at a higher
interest  rate if an  interfund  loan is  called  or not  renewed.  Any delay in
repayment  to a lending fund could result in a lost  investment  opportunity  or
additional costs. The program is subject to the oversight and periodic review of
the Board. To the extent the Fund is actually  engaged in borrowing  through the
interfund lending program,  the Fund will comply with its nonfundamental  policy
on borrowing.

Investment  Company  Securities.  The  Fund  may  acquire  securities  of  other
investment companies,  including  exchange-traded  funds, or ETFs, to the extent
consistent  with its investment  objective and subject to the limitations of the
1940  Act.  The  Fund  will  indirectly  bear  its  proportionate  share  of any
management fees and other expenses paid by such other investment companies.

For example, the Fund may invest in a variety of investment companies which seek
to track the  composition  and  performance  of  specific  indexes or a specific
portion of an index.  These  index-based  investments hold  substantially all of
their assets in securities representing their specific index.  Accordingly,  the
main risk of investing in index-based  investments is the same as investing in a
portfolio  of equity  securities  comprising  the index.  The  market  prices of
index-based  investments  will fluctuate in accordance  with both changes in the
market  value of their  underlying  portfolio  securities  and due to supply and
demand for the  instruments on the exchanges on which they are traded (which may
result in their  trading at a discount  or premium to their  NAVs).  Index-based
investments  may not replicate  exactly the performance of their specified index
because of  transaction  costs and because of the  temporary  unavailability  of
certain component securities of the index.

Examples of index-based investments include:

SPDRs(R):  SPDRs,  an acronym for "Standard & Poor's  Depositary  Receipts," are
based on the S&P 500  Composite  Stock Price Index.  They are issued by the SPDR
Trust,  a unit  investment  trust that  holds  shares of  substantially  all the
companies  in the S&P 500 in  substantially  the  same  weighting  and  seeks to
closely track the price performance and dividend yield of the Index.

MidCap  SPDRs(R):  MidCap SPDRs are based on the S&P MidCap 400 Index.  They are
issued by the MidCap SPDR Trust, a unit investment  trust that holds a portfolio
of securities  consisting of  substantially  all of the common stocks in the S&P
MidCap 400 Index in substantially  the same weighting and seeks to closely track
the price performance and dividend yield of the Index.

Select Sector SPDRs(R):  Select Sector SPDRs are based on a particular sector or
group of  industries  that are  represented  by a specified  Select Sector Index
within the Standard & Poor's Composite Stock Price Index. They are issued by The
Select Sector SPDR Trust, an open-end  management  investment  company with nine
portfolios  that each seeks to closely track the price  performance and dividend
yield of a particular Select Sector Index.

DIAMONDS(SM):  DIAMONDS are based on the Dow Jones Industrial Average(SM).  They
are issued by the DIAMONDS Trust, a unit investment trust that holds a portfolio
of all the component common stocks of the Dow Jones Industrial Average and seeks
to closely track the price performance and dividend yield of the Dow.

Nasdaq-100 Shares: Nasdaq-100 Shares are based on the Nasdaq 100 Index. They are
issued by the Nasdaq-100  Trust, a unit investment  trust that holds a portfolio
consisting of substantially  all of the securities,  in  substantially  the same
weighting,  as the component stocks of the Nasdaq 100 Index and seeks to closely
track the price performance and dividend yield of the Index.

Lending of Portfolio Securities.  The Fund may lend its investment securities to
approved  institutional  borrowers  who need to  borrow  securities  in order to
complete certain  transactions,  such as covering short sales, avoiding failures
to deliver  securities  or  completing  arbitrage  operations.  By  lending  its
investment  securities,  the Fund


                                       12
<PAGE>

attempts to increase its net  investment  income through the receipt of interest
on the loan. Any gain or loss in the market price of the securities  loaned that
might occur during the term of the loan would  belong to the Fund.  The Fund may
lend its investment securities so long as the terms, structure and the aggregate
amount  of such  loans are not  inconsistent  with the 1940 Act or the rules and
regulations or  interpretations  of the SEC thereunder,  which currently require
that (a) the borrower pledge and maintain with the Fund collateral consisting of
liquid,  unencumbered  assets  having a value at all times not less than 100% of
the value of the  securities  loaned,  (b) the borrower  add to such  collateral
whenever the price of the securities  loaned rises (i.e., the borrower "marks to
the market" on a daily basis),  (c) the loan be made subject to  termination  by
the Fund at any time, and (d) the Fund receives  reasonable interest on the loan
(which may include the Fund  investing any cash  collateral in interest  bearing
short-term  investments),  and  distributions  on the loaned  securities and any
increase in their market  value.  There may be risks of delay in recovery of the
securities or even loss of rights in the  collateral  should the borrower of the
securities  fail  financially.  However,  loans  will be made only to  borrowers
selected  by the  Fund's  delegate  after a  commercially  reasonable  review of
relevant  facts  and  circumstances,   including  the  creditworthiness  of  the
borrower.

At the  present  time,  the staff of the SEC does not  object  if an  investment
company pays reasonable negotiated fees in connection with loaned securities, so
long as such  fees are set  forth in a  written  contract  and  approved  by the
investment company's Board of Trustees. In addition, voting rights may pass with
the loaned securities, but if a material event occurs affecting an investment on
loan, the loan must be called and the securities voted. Pursuant to an exemptive
order granted by the SEC, cash  collateral  received by the Fund may be invested
in a money market fund managed by the Advisor (or one of its affiliates).

Micro-Cap Company Risk. While, historically, micro-capitalization company stocks
have  outperformed  the stocks of large  companies,  the former have customarily
involved more investment risk as well.  There can be no assurance that this will
continue  to be true in the  future.  Micro-capitalization  companies  may  have
limited product lines, markets or financial resources; may lack management depth
or experience;  and may be more vulnerable to adverse general market or economic
developments than large companies.  The prices of  micro-capitalization  company
securities  are often more  volatile than prices  associated  with large company
issues,  and can display  abrupt or erratic  movements at times,  due to limited
trading volumes and less publicly available information.

Also,  because   micro-capitalization   companies  normally  have  fewer  shares
outstanding and these shares trade less frequently than large companies,  it may
be more  difficult  for the Fund to buy and  sell  significant  amounts  of such
shares without an unfavorable impact on prevailing market prices.

Some of the  companies  in which the Fund may  invest  may  distribute,  sell or
produce products which have recently been brought to market and may be dependent
on key  personnel.  The securities of  micro-capitalization  companies are often
traded  over-the-counter  and may not be  traded  in the  volumes  typical  on a
national  securities  exchange.  Consequently,  in  order to sell  this  type of
holding,  the Fund may need to discount  the  securities  from recent  prices or
dispose of the securities over a long period of time.

Non-diversification.  The Fund is  classified  as a  non-diversified  management
investment  company under the 1940 Act, which means that the Fund is not limited
by the  1940 Act in the  proportion  of its  assets  that it may  invest  in the
obligations  of a single  issuer.  The  investment of a large  percentage of the
Fund's  assets in the  securities  of a small  number of  issuers  may cause the
Fund's share price to fluctuate more than that of a diversified fund.

Participation  Interests.  The Fund may  purchase  from  financial  institutions
participation   interests  in  securities  in  which  the  Fund  may  invest.  A
participation  interest gives the Fund an undivided  interest in the security in
the  proportion  that the Fund's  participation  interest bears to the principal
amount of the security.  These instruments may have fixed,  floating or variable
interest  rates,  with  remaining  maturities  of  397  days  or  less.  If  the
participation  interest is unrated,  or has been given a rating below that which
is  permissible  for purchase by the Fund,  the  participation  interest will be
backed by an irrevocable letter of credit or guarantee of a bank, or the payment
obligation otherwise will be collateralized by US Government securities,  or, in
the case of unrated participation  interest,  determined by the Advisor to be of
comparable  quality  to those  instruments  in which  the Fund may  invest.  For
certain participation interests, the Fund will have the right to demand payment,
on not  more  than  seven  days'  notice,  for  all or any  part  of the  Fund's
participation  interests in the  security,  plus accrued  interest.  As to these
instruments,  the Fund generally intends to exercise its right to demand payment
only upon a default under the terms of the security.


                                       13
<PAGE>

Privatized Enterprises. Investments in foreign securities may include securities
issued  by  enterprises   that  have  undergone  or  are  currently   undergoing
privatization.  The  governments of certain  foreign  countries have, to varying
degrees,  embarked on privatization  programs  contemplating  the sale of all or
part of their  interests in state  enterprises.  The Fund's  investments  in the
securities  of  privatized   enterprises   may  include   privately   negotiated
investments in a government or  state-owned or controlled  company or enterprise
that has not yet  conducted  an  initial  equity  offering,  investments  in the
initial  offering of equity  securities  of a state  enterprise  or former state
enterprise and investments in the securities of a state enterprise following its
initial equity offering.

In certain jurisdictions,  the ability of foreign entities, such as the Fund, to
participate in privatizations may be limited by local law, or the price or terms
on which the Fund may be able to participate may be less  advantageous  than for
local investors.  Moreover, there can be no assurance that governments that have
embarked on  privatization  programs will continue to divest their  ownership of
state  enterprises,  that  proposed  privatizations  will be  successful or that
governments will not re-nationalize enterprises that have been privatized.

In the case of the enterprises in which the Fund may invest, large blocks of the
stock of those  enterprises may be held by a small group of  stockholders,  even
after  the  initial  equity  offerings  by those  enterprises.  The sale of some
portion or all of those blocks could have an adverse  effect on the price of the
stock of any such enterprise.

Prior to making an initial  equity  offering,  most state  enterprises or former
state  enterprises go through an internal  reorganization  or  management.  Such
reorganizations  are made in an attempt to better  enable these  enterprises  to
compete in the private sector. However,  certain reorganizations could result in
a  management  team  that does not  function  as well as an  enterprise's  prior
management and may have a negative effect on such enterprise.  In addition,  the
privatization  of an  enterprise  by its  government  may occur over a number of
years,  with the  government  continuing to hold a  controlling  position in the
enterprise even after the initial equity offering for the enterprise.

Prior to  privatization,  most of the  state  enterprises  in which the Fund may
invest  enjoy the  protection  of and receive  preferential  treatment  from the
respective  sovereigns that own or control them.  After making an initial equity
offering,  these  enterprises may no longer have such protection or receive such
preferential  treatment and may become subject to market  competition from which
they were  previously  protected.  Some of these  enterprises may not be able to
operate  effectively in a competitive market and may suffer losses or experience
bankruptcy due to such competition.

Real Estate Investment Trusts  ("REITs").  Each Fund may invest in REITs.  REITs
are  sometimes  informally  characterized  as equity REITs,  mortgage  REITs and
hybrid REITs.  Investment in REITs may subject a Fund to risks  associated  with
the direct  ownership of real estate,  such as decreases in real estate  values,
overbuilding,  increased competition and other risks related to local or general
economic conditions, increases in operating costs and property taxes, changes in
zoning  laws,   casualty  or   condemnation   losses,   possible   environmental
liabilities,  regulatory  limitations on rent and fluctuations in rental income.
Equity REITs generally  experience these risks directly through fee or leasehold
interests,  whereas  mortgage REITs generally  experience these risks indirectly
through  mortgage  interests,   unless  the  mortgage  REIT  forecloses  on  the
underlying real estate. Changes in interest rates may also affect the value of a
Fund's investment in REITs. For instance,  during periods of declining  interest
rates,  certain  mortgage REITs may hold mortgages that the mortgagors  elect to
prepay,  which  prepayment may diminish the yield on securities  issued by those
REITs.

Certain REITs have relatively  small market  capitalizations,  which may tend to
increase the  volatility of the market price of their  securities.  Furthermore,
REITs  are  dependent  upon   specialized   management   skills,   have  limited
diversification and are,  therefore,  subject to risks inherent in operating and
financing a limited  number of  projects.  REITs are also  subject to heavy cash
flow dependency, defaults by borrowers and the possibility of failing to qualify
for tax-free  pass-through of income under the Internal Revenue Code of 1986, as
amended  (the  "Code"),   and  to  maintain   exemption  from  the  registration
requirements of the 1940 Act. By investing in REITs indirectly through a Fund, a
shareholder will bear not only his or her proportionate share of the expenses of
a Fund, but also, indirectly,  similar expenses of the REITs. In addition, REITs
depend generally on their ability to generate cash flow to make distributions to
shareholders.


                                       14
<PAGE>

Repurchase  Agreements.  The Fund may enter in repurchase agreements pursuant to
its  investment  guidelines.  In  a  repurchase  agreement,  the  Fund  acquires
ownership of a security and  simultaneously  commits to resell that  security to
the seller, typically a bank or broker/dealer.

A repurchase agreement provides a means for the Fund to earn income on funds for
periods as short as overnight.  It is an  arrangement  under which the purchaser
(i.e., the Fund) acquires a security  ("Obligation")  and the seller agrees,  at
the time of sale, to repurchase  the  Obligation at a specified  time and price.
Securities  subject to a repurchase  agreement are held in a segregated  account
and, as described in more detail below,  the value of such securities is kept at
least equal to the repurchase  price on a daily basis.  The repurchase price may
be higher than the purchase price,  the difference  being income to the Fund, or
the purchase and  repurchase  prices may be the same,  with interest at a stated
rate due to the Fund  together with the  repurchase  price upon  repurchase.  In
either case,  the income to the Fund is  unrelated  to the interest  rate on the
Obligation  itself.  Obligations will be held by the Custodian or in the Federal
Reserve Book Entry system.

It is not clear whether a court would consider the  Obligation  purchased by the
Fund  subject to a  repurchase  agreement as being owned by the Fund or as being
collateral  for a  loan  by  the  Fund  to  the  seller.  In  the  event  of the
commencement of bankruptcy or insolvency  proceedings with respect to the seller
of the  Obligation  before  repurchase  of the  Obligation  under  a  repurchase
agreement,  the Fund may  encounter  delay and incur costs  before being able to
sell the  security.  Delays may involve  loss of interest or decline in price of
the  Obligation.  If the court  characterizes  the transaction as a loan and the
Fund has not perfected a security  interest in the  Obligation,  the Fund may be
required to return the  Obligation  to the seller's  estate and be treated as an
unsecured creditor of the seller. As an unsecured creditor, the Fund would be at
risk  of  losing  some  or all of  the  principal  and  income  involved  in the
transaction.  As with any unsecured debt instrument  purchased for the Fund, the
Advisor  seeks to minimize the risk of loss  through  repurchase  agreements  by
analyzing the  creditworthiness  of the obligor,  in this case the seller of the
Obligation.  Apart from the risk of bankruptcy or insolvency proceedings,  there
is also the risk that the seller may fail to repurchase the Obligation, in which
case  the  Fund may  incur a loss if the  proceeds  to the Fund of the sale to a
third party are less than the  repurchase  price.  However,  if the market value
(including  interest)  of the  Obligation  subject to the  repurchase  agreement
becomes  less than the  repurchase  price  (including  interest),  the Fund will
direct the seller of the Obligation to deliver additional securities so that the
market value  (including  interest) of all securities  subject to the repurchase
agreement will equal or exceed the repurchase price.

The Fund will limit repurchase  agreement  transactions to securities  issued by
the US  government  and its agencies and  instrumentalities  and will enter into
such  transactions  with  those  banks and  securities  dealers  who are  deemed
creditworthy pursuant to criteria adopted by the Fund's Board of Trustees or its
designee.

The  Fund  will  not  invest  more  than  15% of its net  assets  in  repurchase
agreements maturing in more than seven days.

Repurchase Commitments.  The Fund may enter into repurchase commitments with any
party  deemed   creditworthy  by  the  Advisor,   including  foreign  banks  and
broker/dealers,  if the transaction is entered into for investment  purposes and
the  counterparty's  creditworthiness  is at least  equal to that of  issuers of
securities  which the Fund may purchase.  Such  transactions may not provide the
Fund with collateral marked-to-market during the term of the commitment.

Reverse  Repurchase  Agreements.  The Fund may enter  into  "reverse  repurchase
agreements," which are repurchase agreements in which the Fund, as the seller of
the securities,  agrees to repurchase them at an agreed time and price. The Fund
maintains a segregated account in connection with outstanding reverse repurchase
agreements. The Fund will enter into reverse repurchase agreements only when the
Advisor  believes that the interest  income to be earned from the  investment of
the proceeds of the transaction will be greater than the interest expense of the
transaction.  Such transactions may increase fluctuations in the market value of
Fund assets and its yield.

Short Sales.  The Fund may engage in short  sales,  if, at the time of the short
sale,  the Fund owns or has the right to acquire  securities  equivalent in kind
and amount to the securities being sold short.

In a short sale, the seller does not immediately deliver the securities sold and
is said to have a short position in those securities  until delivery occurs.  To
make delivery to the  purchaser,  the executing  broker  borrows the  securities
being  sold  short  on  behalf  of the  seller.  While  the  short  position  is
maintained,  the seller  collateralizes its obligation to


                                       15
<PAGE>

deliver  the  securities  sold short in an amount  equal to the  proceeds of the
short  sale  plus an  additional  margin  amount  established  by the  Board  of
Governors  of the Federal  Reserve.  If the Fund  engages in a short  sale,  the
collateral  account will be maintained  by State Street Bank and Trust  Company,
the Fund's custodian. While the short sale is open, the Fund will maintain, in a
segregated  custodial  account,  an amount of  securities  convertible  into, or
exchangeable  for,  such  equivalent  securities at no  additional  cost.  These
securities would constitute the Fund's long position.

The Fund may make a short sale,  as described  above,  when it wants to sell the
security  it owns at a  current  attractive  price,  but  also  wishes  to defer
recognition  of gain or loss for  federal  income  tax  purposes.  There will be
certain  additional  transaction costs associated with short sales, but the Fund
will endeavor to offset these costs with returns from the investment of the cash
proceeds of short sales.

Short-Term Securities. In order to meet anticipated redemptions, to hold pending
the purchase of  additional  securities  for the Fund's  portfolio,  or, in some
cases, for temporary  defensive  purposes,  the Fund may invest a portion (up to
100%) of its assets in money market and other  short-term  securities.  When the
Fund is invested for temporary defensive purposes,  it may not achieve or pursue
its investment objective.

Examples of short-term securities include:

o        Securities  issued or guaranteed by the US government  and its agencies
         and instrumentalities;

o        Commercial Paper;

o        Certificates of Deposit and Euro Dollar Certificates of Deposit;

o        Bankers' Acceptances;

o        Short-term notes, bonds, debentures or other debt instruments; and

o        Repurchase agreements.

The Fund may also invest up to 5% of its total  assets in any money market fund,
including those advised by the Advisor, if any.

Small Company  Risk.  The Advisor  believes  that many small  companies may have
sales and earnings growth rates which exceed those of larger companies, and that
such  growth  rates  may  in  turn  be  reflected  in  more  rapid  share  price
appreciation  over time.  However,  investing in smaller company stocks involves
greater risk than is  customarily  associated  with  investing  in larger,  more
established companies.  For example,  smaller companies can have limited product
lines,  markets,  or financial and managerial  resources.  Smaller companies may
also be dependent on one or a few key persons,  and may be more  susceptible  to
losses and risks of bankruptcy. Also, the securities of smaller companies may be
thinly traded (and  therefore  have to be sold at a discount from current market
prices or sold in small lots over an extended period of time). Transaction costs
in smaller company stocks may be higher than those of larger companies.

Sovereign Debt.  Investment in sovereign debt can involve a high degree of risk.
The governmental entity that controls the repayment of sovereign debt may not be
able or willing to repay the  principal  and/or  interest when due in accordance
with the terms of such debt. A governmental  entity's  willingness or ability to
repay  principal  and interest due in a timely  manner may be affected by, among
other factors, its cash flow situation,  the extent of its foreign reserves, the
availability  of sufficient  foreign  exchange on the date a payment is due, the
relative  size of the  debt  service  burden  to the  economy  as a  whole,  the
governmental  entity's  policy toward the  International  Monetary Fund, and the
political   constraints  to  which  a   governmental   entity  may  be  subject.
Governmental  entities  may also be  dependent  on expected  disbursements  from
foreign governments, multilateral agencies and others abroad to reduce principal
and  interest  arrearages  on their debt.  The  commitment  on the part of these
governments,  agencies and others to make such  disbursements may be conditioned
on a governmental  entity's  implementation  of economic reforms and/or economic
performance  and the timely  service of such  debtor's  obligations.  Failure to
implement  such


                                       16
<PAGE>

reforms,  achieve  such levels of economic  performance  or repay  principal  or
interest  when  due  may  result  in the  cancellation  of  such  third  parties
commitments to lend funds to the governmental  entity,  which may further impair
such debtor's  ability or  willingness  to service its debts in a timely manner.
Consequently, governmental entities may default on their sovereign debt. Holders
of sovereign debt may be requested to participate  in the  rescheduling  of such
debt  and  to  extend  further  loans  to  governmental  entities.  There  is no
bankruptcy  proceeding by which  sovereign debt on which  governmental  entities
have defaulted may be collected in whole or in part.

Strategic  Transactions and  Derivatives.  The Fund may, but is not required to,
utilize various other investment  strategies as described below for a variety of
purposes,  such as hedging various market risks, managing the effective maturity
or duration of the fixed-income  securities in the Fund's portfolio or enhancing
potential gain.  These  strategies may be executed through the use of derivative
contracts.

In the course of pursuing these investment strategies, the Fund may purchase and
sell  exchange-listed and  over-the-counter  put and call options on securities,
equity and fixed-income indices and other instruments, purchase and sell futures
contracts and options thereon,  enter into various  transactions  such as swaps,
caps, floors, collars,  currency forward contracts,  currency futures contracts,
currency swaps or options on currencies,  or currency  futures and various other
currency  transactions  (collectively,  all  the  above  are  called  "Strategic
Transactions").  In  addition,  strategic  transactions  may  also  include  new
techniques,  instruments or strategies that are permitted as regulatory  changes
occur.  Strategic  Transactions  may be used without  limit  (subject to certain
limits imposed by the 1940 Act) to attempt to protect against  possible  changes
in the market  value of  securities  held in or to be  purchased  for the Fund's
portfolio   resulting  from  securities   markets  or  currency   exchange  rate
fluctuations,  to  protect  the  Fund's  unrealized  gains  in the  value of its
portfolio  securities,  to facilitate the sale of such securities for investment
purposes,  to manage the effective maturity or duration of the Fund's portfolio,
or to  establish  a position  in the  derivatives  markets as a  substitute  for
purchasing or selling  particular  securities.  Some Strategic  Transactions may
also be used to enhance  potential  gain  although no more than 5% of the Fund's
assets will be  committed  to certain  Strategic  Transactions  entered into for
non-hedging  purposes.  Any or all of these investment techniques may be used at
any time  and in any  combination,  and  there is no  particular  strategy  that
dictates the use of one technique  rather than another,  as use of any Strategic
Transaction is a function of numerous variables including market conditions. The
ability of the Fund to utilize these Strategic  Transactions  successfully  will
depend on the Advisor's  ability to predict  pertinent market  movements,  which
cannot be assured. The Fund will comply with applicable regulatory  requirements
when  implementing  these  strategies,  techniques  and  instruments.  Strategic
Transactions  will  not be used to alter  fundamental  investment  purposes  and
characteristics  of the Fund, and the Fund will segregate assets (or as provided
by applicable regulations, enter into certain offsetting positions) to cover its
obligations under options, futures and swaps to limit leveraging of the Fund.

Strategic  Transactions,  including derivative contracts,  have risks associated
with them  including  possible  default by the other  party to the  transaction,
illiquidity and, to the extent the Advisor's view as to certain market movements
is incorrect,  the risk that the use of such Strategic Transactions could result
in losses  greater  than if they had not been used.  Use of put and call options
may  result  in losses to the Fund,  force  the sale or  purchase  of  portfolio
securities  at  inopportune  times or for prices higher than (in the case of put
options)  or lower than (in the case of call  options)  current  market  values,
limit the amount of  appreciation  the Fund can  realize on its  investments  or
cause the Fund to hold a security it might  otherwise  sell. The use of currency
transactions  can result in the Fund incurring losses as a result of a number of
factors   including  the   imposition  of  exchange   controls,   suspension  of
settlements,  or the inability to deliver or receive a specified  currency.  The
use of  options  and  futures  transactions  entails  certain  other  risks.  In
particular,  the  variable  degree of  correlation  between  price  movements of
futures contracts and price movements in the related  portfolio  position of the
Fund  creates  the  possibility  that losses on the  hedging  instrument  may be
greater than gains in the value of the Fund's position. In addition, futures and
options   markets   may  not  be  liquid  in  all   circumstances   and  certain
over-the-counter  options may have no markets.  As a result, in certain markets,
the  Fund  might  not be able  to  close  out a  transaction  without  incurring
substantial  losses,  if at  all.  Although  the  use  of  futures  and  options
transactions  for  hedging  should  tend to  minimize  the risk of loss due to a
decline in the value of the hedged position, at the same time they tend to limit
any  potential  gain  which  might  result  from an  increase  in  value of such
position. Finally, the daily variation margin requirements for futures contracts
would create a greater ongoing potential  financial risk than would purchases of
options,  where the  exposure  is  limited to the cost of the  initial  premium.
Losses resulting from the use of Strategic  Transactions  would reduce net asset
value, and possibly income, and such losses can be greater than if the Strategic
Transactions had not been utilized.


                                       17
<PAGE>

General  Characteristics of Options. Put options and call options typically have
similar structural  characteristics and operational  mechanics regardless of the
underlying  instrument on which they are purchased or sold.  Thus, the following
general  discussion relates to each of the particular types of options discussed
in greater  detail below.  In addition,  many Strategic  Transactions  involving
options  require  segregation of Fund assets in special  accounts,  as described
below under "Use of Segregated and Other Special Accounts."

A put option gives the purchaser of the option,  upon payment of a premium,  the
right to sell, and the writer the  obligation to buy, the  underlying  security,
commodity,  index,  currency or other  instrument  at the  exercise  price.  For
instance, the Fund's purchase of a put option on a security might be designed to
protect its holdings in the underlying  instrument (or, in some cases, a similar
instrument) against a substantial decline in the market value by giving the Fund
the right to sell such  instrument at the option  exercise price. A call option,
upon payment of a premium,  gives the  purchaser of the option the right to buy,
and the seller the obligation to sell, the underlying instrument at the exercise
price.  The Fund's  purchase of a call option on a security,  financial  future,
index,  currency  or other  instrument  might be  intended  to protect  the Fund
against an increase in the price of the underlying instrument that it intends to
purchase  in the  future  by  fixing  the  price at which it may  purchase  such
instrument.  An American  style put or call option may be  exercised at any time
during  the  option  period  while a  European  style put or call  option may be
exercised only upon expiration or during a fixed period prior thereto.  The Fund
is authorized to purchase and sell exchange listed options and  over-the-counter
options  ("OTC  options").  Exchange  listed  options  are issued by a regulated
intermediary such as the Options Clearing Corporation ("OCC"),  which guarantees
the  performance  of the  obligations  of  the  parties  to  such  options.  The
discussion  below uses the OCC as an example,  but is also  applicable  to other
financial intermediaries.

With certain exceptions, OCC issued and exchange listed options generally settle
by physical  delivery of the  underlying  security or currency,  although in the
future cash  settlement  may become  available.  Index  options  and  Eurodollar
instruments are cash settled for the net amount,  if any, by which the option is
"in-the-money"  (i.e., where the value of the underlying  instrument exceeds, in
the case of a call  option,  or is less than,  in the case of a put option,  the
exercise  price of the option) at the time the option is exercised.  Frequently,
rather than taking or making delivery of the underlying  instrument  through the
process of  exercising  the option,  listed  options are closed by entering into
offsetting  purchase or sale transactions that do not result in ownership of the
new option.

The Fund's  ability to close out its position as a purchaser or seller of an OCC
or exchange listed put or call option is dependent,  in part, upon the liquidity
of the option  market.  Among the  possible  reasons for the absence of a liquid
option market on an exchange are: (i)  insufficient  trading interest in certain
options; (ii) restrictions on transactions imposed by an exchange; (iii) trading
halts,  suspensions  or other  restrictions  imposed with respect to  particular
classes or series of options or underlying  securities  including reaching daily
price  limits;  (iv)  interruption  of the  normal  operations  of the OCC or an
exchange;  (v)  inadequacy  of the  facilities  of an  exchange or OCC to handle
current  trading  volume;  or  (vi)  a  decision  by one or  more  exchanges  to
discontinue the trading of options (or a particular class or series of options),
in which event the relevant  market for that option on that exchange would cease
to exist, although outstanding options on that exchange would generally continue
to be exercisable in accordance with their terms.

The hours of trading for listed  options may not coincide  with the hours during
which the underlying  financial  instruments are traded.  To the extent that the
option   markets  close  before  the  markets  for  the   underlying   financial
instruments,  significant  price  and  rate  movements  can  take  place  in the
underlying markets that cannot be reflected in the option markets.

OTC  options  are  purchased  from  or  sold to  securities  dealers,  financial
institutions  or  other  parties  ("Counterparties")  through  direct  bilateral
agreement with the Counterparty.  In contrast to exchange listed options,  which
generally have standardized terms and performance mechanics, all the terms of an
OTC option, including such terms as method of settlement,  term, exercise price,
premium,  guarantees and security,  are set by  negotiation of the parties.  The
Fund will only sell OTC  options  (other  than OTC  currency  options)  that are
subject to a buy-back provision  permitting the Fund to require the Counterparty
to sell the option back to the Fund at a formula  price within  seven days.  The
Fund  expects  generally  to enter into OTC  options  that have cash  settlement
provisions, although it is not required to do so.


                                       18
<PAGE>

Unless the  parties  provide  for it,  there is no central  clearing or guaranty
function in an OTC option.  As a result,  if the  Counterparty  fails to make or
take delivery of the security,  currency or other  instrument  underlying an OTC
option  it has  entered  into  with the Fund or fails to make a cash  settlement
payment due in accordance with the terms of that option,  the fund will lose any
premium  it paid  for the  option  as well  as any  anticipated  benefit  of the
transaction.  Accordingly,  the Advisor must assess the creditworthiness of each
such Counterparty or any guarantor or credit  enhancement of the  Counterparty's
credit to  determine  the  likelihood  that the terms of the OTC option  will be
satisfied.  The  Fund  will  engage  in OTC  option  transactions  only  with US
government securities dealers recognized by the Federal Reserve Bank of New York
as "primary  dealers"  or  broker/dealers,  domestic  or foreign  banks or other
financial  institutions which have received (or the guarantors of the obligation
of which have  received) a short-term  credit rating of A-1 from S&P or P-1 from
Moody's or an  equivalent  rating  from any  nationally  recognized  statistical
rating organization ("NRSRO") or, in the case of OTC currency transactions,  are
determined to be of equivalent  credit quality by the Advisor.  The staff of the
SEC  currently  takes the position that OTC options  purchased by the Fund,  and
portfolio securities  "covering" the amount of the Fund's obligation pursuant to
an OTC  option  sold by it (the  cost of the  sell-back  plus  the  in-the-money
amount,  if any) are  illiquid,  and are  subject  to the Fund's  limitation  on
investing no more than 15% of its net assets in illiquid securities.

If the Fund sells a call  option,  the premium  that it receives  may serve as a
partial hedge,  to the extent of the option  premium,  against a decrease in the
value of the  underlying  securities  or  instruments  in its  portfolio or will
increase the Fund's income. The sale of put options can also provide income.

The Fund may purchase and sell call options on securities  including US Treasury
and agency  securities,  mortgage-backed  securities,  foreign  sovereign  debt,
corporate debt securities,  equity securities (including convertible securities)
and  Eurodollar  instruments  that  are  traded  on US  and  foreign  securities
exchanges  and in the  over-the-counter  markets,  and  on  securities  indices,
currencies and futures  contracts.  All calls sold by the Fund must be "covered"
(i.e., the Fund must own the securities or futures contract subject to the call)
or must meet the asset segregation  requirements  described below as long as the
call is  outstanding.  Even though the Fund will  receive the option  premium to
help  protect it against  loss,  a call sold by the Fund exposes the Fund during
the term of the option to possible loss of opportunity  to realize  appreciation
in the market price of the underlying security or instrument and may require the
Fund to hold a security or instrument which it might otherwise have sold.

The Fund may purchase and sell put options on  securities  including US Treasury
and agency  securities,  mortgage-backed  securities,  foreign  sovereign  debt,
corporate debt securities,  equity securities (including convertible securities)
and Eurodollar  instruments (whether or not it holds the above securities in its
portfolio),  and on securities  indices,  currencies and futures contracts other
than futures on individual corporate debt and individual equity securities.  The
Fund will not sell put  options  if, as a  result,  more than 50% of the  Fund's
total  assets  would  be  required  to be  segregated  to  cover  its  potential
obligations  under such put options other than those with respect to futures and
options  thereon.  In selling put options,  there is a risk that the Fund may be
required to buy the  underlying  security at a  disadvantageous  price above the
market price.

General Characteristics of Futures. The Fund may enter into futures contracts or
purchase  or sell  put and  call  options  on such  futures  as a hedge  against
anticipated  interest rate, currency or equity market changes,  and for duration
management,  risk  management  and  return  enhancement  purposes.  Futures  are
generally  bought and sold on the  commodities  exchanges  where they are listed
with payment of initial and variation  margin as described  below. The sale of a
futures contract creates a firm obligation by the Fund, as seller, to deliver to
the buyer the specific type of financial  instrument  called for in the contract
at a specific  future  time for a  specified  price (or,  with  respect to index
futures and  Eurodollar  instruments,  the net cash amount).  Options on futures
contracts  are  similar  to  options on  securities  except  that an option on a
futures contract gives the purchaser the right in return for the premium paid to
assume a position in a futures contract and obligates the seller to deliver such
position.

The Fund has claimed  exclusion from the definition of the term  "commodity pool
operator"  adopted  by the  CFTC and the  National  Futures  Association,  which
regulate trading in the futures markets.  Therefore,  the Fund is not subject to
commodity pool operator registration and regulation under the Commodity Exchange
Act.  Futures and options on futures may be entered into for bona fide  hedging,
risk management  (including  duration  management) or other portfolio and return
enhancement management purposes to the extent consistent with the exclusion from
commodity pool operator registration.  Typically, maintaining a futures contract
or selling an option  thereon  requires  the Fund to  deposit  with a  financial
intermediary  as  security  for its  obligations  an  amount  of  cash or  other
specified


                                       19
<PAGE>

assets  (initial  margin)  which  initially  is  typically 1% to 10% of the face
amount of the  contract  (but may be higher in some  circumstances).  Additional
cash or assets (variation margin) may be required to be deposited  thereafter on
a daily  basis as the marked to market  value of the  contract  fluctuates.  The
purchase of an option on financial futures involves payment of a premium for the
option  without  any  further  obligation  on the part of the Fund.  If the Fund
exercises  an option on a futures  contract it will be obligated to post initial
margin (and potential  subsequent  variation  margin) for the resulting  futures
position  just as it would  for any  position.  Futures  contracts  and  options
thereon are generally  settled by entering into an  offsetting  transaction  but
there can be no assurance that the position can be offset prior to settlement at
an advantageous price, nor that delivery will occur.

Options on Securities  Indices and Other  Financial  Indices.  The Fund also may
purchase and sell call and put options on securities indices and other financial
indices and in so doing can achieve many of the same objectives it would achieve
through  the sale or  purchase  of options  on  individual  securities  or other
instruments.  Options on  securities  indices  and other  financial  indices are
similar to options on a security or other  instrument  except that,  rather than
settling by physical delivery of the underlying instrument,  they settle by cash
settlement,  i.e.,  an option on an index gives the holder the right to receive,
upon exercise of the option, an amount of cash if the closing level of the index
upon which the option is based exceeds,  in the case of a call, or is less than,
in the case of a put, the exercise  price of the option  (except if, in the case
of an OTC option, physical delivery is specified).  This amount of cash is equal
to the excess of the closing  price of the index over the exercise  price of the
option,  which  also may be  multiplied  by a formula  value.  The seller of the
option is  obligated,  in return for the premium  received,  to make delivery of
this  amount.  The  gain or loss on an  option  on an  index  depends  on  price
movements in the instruments making up the market,  market segment,  industry or
other  composite  on which the  underlying  index is based,  rather  than  price
movements in  individual  securities,  as is the case with respect to options on
securities.

Currency  Transactions.  The Fund  may  engage  in  currency  transactions  with
Counterparties  primarily in order to hedge,  or manage the risk of the value of
portfolio holdings denominated in particular  currencies against fluctuations in
relative  value.  Currency  transactions  include  forward  currency  contracts,
exchange listed currency futures, exchange listed and OTC options on currencies,
and currency swaps. A forward currency contract involves a privately  negotiated
obligation  to purchase or sell (with  delivery  generally  required) a specific
currency at a future  date,  which may be any fixed number of days from the date
of the contract  agreed upon by the  parties,  at a price set at the time of the
contract.  A currency  swap is an agreement to exchange  cash flows based on the
notional  difference  among two or more currencies and operates  similarly to an
interest rate swap,  which is described  below. The Fund may enter into currency
transactions with  Counterparties  which have received (or the guarantors of the
obligations  which  have  received)  a  credit  rating  of  A-1 or P-1 by S&P or
Moody's, respectively, or that have an equivalent rating from a NRSRO or (except
for OTC currency  options) are determined to be of equivalent  credit quality by
the Advisor.

The  Fund's   dealings  in  forward   currency   contracts  and  other  currency
transactions  such as futures,  options,  options on futures and swaps generally
will be limited to hedging  involving either specific  transactions or portfolio
positions  except as described  below.  Transaction  hedging is entering  into a
currency transaction with respect to specific assets or liabilities of the fund,
which  will  generally  arise in  connection  with the  purchase  or sale of its
portfolio  securities or the receipt of income  therefrom.  Position  hedging is
entering  into  a  currency  transaction  with  respect  to  portfolio  security
positions denominated or generally quoted in that currency.

The Fund generally will not enter into a transaction to hedge currency  exposure
to an  extent  greater,  after  netting  all  transactions  intended  wholly  or
partially to offset other transactions,  than the aggregate market value (at the
time of entering into the  transaction)  of the securities held in its portfolio
that are denominated or generally  quoted in or currently  convertible into such
currency, other than with respect to proxy hedging or cross hedging as described
below.

The Fund may also  cross-hedge  currencies  by  entering  into  transactions  to
purchase or sell one or more  currencies  that are  expected to decline in value
relative to other  currencies to which the fund has or in which the Fund expects
to have portfolio exposure.

To reduce  the  effect of  currency  fluctuations  on the value of  existing  or
anticipated holdings of portfolio securities,  the fund may also engage in proxy
hedging.  Proxy  hedging  is often  used when the  currency  to which the Fund's
portfolio is exposed is difficult to hedge or to hedge against the dollar. Proxy
hedging  entails  entering into a


                                       20
<PAGE>

commitment  or option to sell a currency  whose  changes in value are  generally
considered  to be correlated to a currency or currencies in which some or all of
the Fund's  portfolio  securities  are or are  expected  to be  denominated,  in
exchange for US dollars. The amount of the commitment or option would not exceed
the value of the fund's  securities  denominated in correlated  currencies.  For
example,  if the Advisor considers that the Austrian  schilling is correlated to
the German deutschemark (the "D-mark"), the fund holds securities denominated in
schillings  and the Advisor  believes that the value of schillings  will decline
against the US dollar, the Advisor may enter into a commitment or option to sell
D-marks and buy dollars.  Currency  hedging  involves some of the same risks and
considerations  as  other  transactions  with  similar   instruments.   Currency
transactions  can  result  in losses to the Fund if the  currency  being  hedged
fluctuates  in value  to a degree  or in a  direction  that is not  anticipated.
Further,  there  is the risk  that the  perceived  correlation  between  various
currencies may not be present or may not be present  during the particular  time
that the Fund is engaging in proxy  hedging.  If the Fund enters into a currency
hedging   transaction,   the  Fund  will  comply  with  the  asset   segregation
requirements described below.

Risks of  Currency  Transactions.  Currency  transactions  are  subject to risks
different from those of other portfolio  transactions.  Because currency control
is of great  importance  to the  issuing  governments  and  influences  economic
planning and policy, purchases and sales of currency and related instruments can
be  negatively  affected  by  government  exchange  controls,   blockages,   and
manipulations or exchange restrictions imposed by governments.  These can result
in losses to the Fund if it is unable to deliver or receive currency or funds in
settlement of obligations  and could also cause hedges it has entered into to be
rendered  useless,  resulting  in full  currency  exposure as well as  incurring
transaction  costs.  Buyers and sellers of  currency  futures are subject to the
same risks that apply to the use of futures generally.  Further, settlement of a
currency  futures  contract for the purchase of most  currencies must occur at a
bank  based in the  issuing  nation.  Trading  options  on  currency  futures is
relatively  new,  and the ability to establish  and close out  positions on such
options is subject to the maintenance of a liquid market which may not always be
available.  Currency  exchange rates may fluctuate based on factors extrinsic to
that country's economy.

Risks of Strategic  Transactions  Outside the US. When conducted outside the US,
Strategic  Transactions may not be regulated as rigorously as in the US, may not
involve a clearing mechanism and related guarantees, and are subject to the risk
of  governmental  actions  affecting  trading  in,  or the  prices  of,  foreign
securities,  currencies and other instruments.  The value of such positions also
could be adversely affected by: (i) other complex foreign  political,  legal and
economic  factors,  (ii) lesser  availability than in the US of data on which to
make trading decisions,  (iii) delays in the Fund's ability to act upon economic
events  occurring in foreign markets during  non-business  hours in the US, (iv)
the  imposition of different  exercise and  settlement  terms and procedures and
margin requirements than in the US, and (v) lower trading volume and liquidity.

Swaps, Caps, Floors and Collars. Among the Strategic Transactions into which the
Fund may enter  are  interest  rate,  currency,  index  and other  swaps and the
purchase or sale of related caps, floors and collars.  The 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 the fund  anticipates  purchasing at a later
date.  The Fund will not sell interest rate caps or floors where it does not own
securities  or other  instruments  providing  the income  stream the fund may be
obligated  to pay.  Interest  rate swaps  involve the  exchange by the 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.

Use of Segregated and Other Special Accounts.  Many Strategic  Transactions,  in
addition to other  requirements,  require that the Fund segregate cash or liquid
assets with its  custodian  to the extent  fund  obligations  are not  otherwise
"covered" through ownership of the underlying security,  financial instrument or
currency.  In general,  either the full amount of any  obligation by the Fund to
pay or  deliver  securities  or  assets  must be  covered  at all  times


                                       21
<PAGE>

by the securities, instruments or currency required to be delivered, or, subject
to any  regulatory  restrictions,  an amount  of cash or liquid  assets at least
equal to the  current  amount  of the  obligation  must be  segregated  with the
custodian. The segregated assets cannot be sold or transferred unless equivalent
assets are substituted in their place or it is no longer  necessary to segregate
them.  For example,  a call option  written by the Fund will require the Fund to
hold the  securities  subject to the call (or  securities  convertible  into the
needed  securities  without  additional  consideration)  or to segregate cash or
liquid assets  sufficient to purchase and deliver the  securities if the call is
exercised.  A call option sold by the Fund on an index will  require the Fund to
own portfolio  securities which correlate with the index or to segregate cash or
liquid assets equal to the excess of the index value over the exercise  price on
a current basis. A put option written by the Fund requires the Fund to segregate
cash or liquid assets equal to the exercise price.

Except when the Fund enters into a forward  contract for the purchase or sale of
a security denominated in a particular currency,  which requires no segregation,
a  currency  contract  which  obligates  the Fund to buy or sell  currency  will
generally  require the Fund to hold an amount of that  currency or liquid assets
denominated  in that currency  equal to the Fund's  obligations  or to segregate
cash or liquid assets equal to the amount of the Fund's obligation.

OTC options entered into by the Fund,  including those on securities,  currency,
financial  instruments  or  indices  and OCC issued and  exchange  listed  index
options, will generally provide for cash settlement.  As a result, when the Fund
sells  these  instruments  it will  only  segregate  an amount of cash or liquid
assets  equal to its accrued net  obligations,  as there is no  requirement  for
payment or delivery of amounts in excess of the net amount.  These  amounts will
equal 100% of the exercise price in the case of a non cash-settled put, the same
as an OCC guaranteed listed option sold by the Fund, or the in-the-money  amount
plus any sell-back  formula amount in the case of a cash-settled put or call. In
addition,  when  the Fund  sells a call  option  on an index at a time  when the
in-the-money  amount exceeds the exercise price, the Fund will segregate,  until
the option expires or is closed out, cash or cash equivalents  equal in value to
such excess.  OCC issued and exchange listed options sold by the Fund other than
those above  generally  settle with  physical  delivery,  or with an election of
either  physical  delivery or cash  settlement  and the Fund will  segregate  an
amount of cash or  liquid  assets  equal to the full  value of the  option.  OTC
options settling with physical delivery,  or with an election of either physical
delivery or cash settlement  will be treated the same as other options  settling
with physical delivery.

In the case of a futures  contract or an option  thereon,  the Fund must deposit
initial  margin and possible daily  variation  margin in addition to segregating
cash or liquid assets  sufficient to meet its  obligation to purchase or provide
securities  or  currencies,  or to pay the amount owed at the  expiration  of an
index-based  futures  contract.  Such liquid  assets may  consist of cash,  cash
equivalents, liquid debt or equity securities or other acceptable assets.

With  respect to swaps,  the Fund will accrue the net amount of the  excess,  if
any, of its  obligations  over its  entitlements  with respect to each swap on a
daily basis and will segregate an amount of cash or liquid assets having a value
equal to the accrued excess.  Caps,  floors and collars  require  segregation of
assets with a value equal to the Fund's net obligation, if any.

Strategic  Transactions  may be covered  by other  means  when  consistent  with
applicable  regulatory  policies.  The  Fund  may  also  enter  into  offsetting
transactions so that its combined position,  coupled with any segregated assets,
equals  its  net  outstanding   obligation  in  related  options  and  Strategic
Transactions.  For example,  the Fund could  purchase a put option if the strike
price of that option is the same or higher than the strike price of a put option
sold by the Fund. Moreover,  instead of segregating cash or liquid assets if the
Fund held a futures or forward  contract,  it could purchase a put option on the
same futures or forward  contract with a strike price as high or higher than the
price of the contract held.  Other Strategic  Transactions may also be offset in
combinations.  If the offsetting  transaction terminates at the time of or after
the primary  transaction no segregation is required,  but if it terminates prior
to such time, cash or liquid assets equal to any remaining obligation would need
to be segregated.

Combined Transactions. The Fund may enter into multiple transactions,  including
multiple options transactions,  multiple futures transactions, multiple currency
transactions  (including forward currency  contracts) and multiple interest rate
transactions and any combination of futures, options, currency and interest rate
transactions   ("component"   transactions),   instead  of  a  single  Strategic
Transaction,  as part of a single or combined  strategy  when, in the opinion of
the  Advisor,  it is in the best  interests  of the  Fund to do so.  A  combined
transaction  will usually


                                       22
<PAGE>

contain elements of risk that are present in each of its component transactions.
Although combined  transactions are normally entered into based on the Advisor's
judgment  that the  combined  strategies  will  reduce  risk or  otherwise  more
effectively  achieve the desired portfolio  management goal, it is possible that
the combination  will instead  increase such risks or hinder  achievement of the
portfolio management objective.

Supranational Entities.  Supranational entities are international  organizations
designated   or  supported  by   governmental   entities  to  promote   economic
reconstruction or development and international banking institutions and related
government agencies.  Examples include the International Bank for Reconstruction
and Development  (the World Bank),  the European Coal and Steel  Community,  The
Asian  Development Bank and the InterAmerican  Development Bank.  Obligations of
supranational  entities  are  backed  by the  guarantee  of one or more  foreign
governmental parties which sponsor the entity.

When-Issued Securities.  The Fund may from time to time purchase equity and debt
securities on a "when-issued,"  "delayed  delivery" or "forward delivery" basis.
The price of such securities, which may be expressed in yield terms, is fixed at
the time the  commitment  to purchase is made,  but delivery and payment for the
securities  takes place at a later date.  During the period between purchase and
settlement, no payment is made by the Fund to the issuer and no interest accrues
to the Fund. When the Fund purchases such securities, it immediately assumes the
risks of ownership, including the risk of price fluctuation.  Failure to deliver
a security purchased on this basis may result in a loss or missed opportunity to
make an alternative investment.

To the extent that assets of the Fund are held in cash pending the settlement of
a purchase of securities,  the Fund would earn no income.  While such securities
may be sold prior to the settlement date, the Fund intends to purchase them with
the  purpose of actually  acquiring  them unless a sale  appears  desirable  for
investment  reasons.  At the time the Fund makes the  commitment  to  purchase a
security on this basis,  it will record the transaction and reflect the value of
the  security  in  determining  its net asset  value.  The  market  value of the
securities may be more or less than the purchase price.  The Fund will establish
a segregated  account in which it will maintain cash and liquid securities equal
in value to commitments for such securities.

Warrants.  The holder of a warrant has the right, until the warrant expires,  to
purchase a given number of shares of a particular  issuer at a specified  price.
Such  investments  can  provide a greater  potential  for profit or loss than an
equivalent  investment  in the  underlying  security.  Prices of warrants do not
necessarily  move,  however,  in  tandem  with  the  prices  of  the  underlying
securities and are, therefore, considered speculative investments.  Warrants pay
no  dividends  and confer no rights  other than a purchase  option.  Thus,  if a
warrant held by the Fund were not exercised by the date of its expiration,  that
Fund would lose the entire purchase price of the warrant.

Zero Coupon Securities.  The Fund may invest in zero coupon securities which pay
no cash  income  and are  sold at  substantial  discounts  from  their  value at
maturity.  When  held to  maturity,  their  entire  income,  which  consists  of
accretion of discount,  comes from the difference between the purchase price and
their  value at  maturity.  The effect of owning  instruments  which do not make
current  interest  payments  is that a fixed  yield  is  earned  not only on the
original  investment but also, in effect,  on all discount  accretion during the
life of the obligation.  This implicit reinvestment of earnings at the same rate
eliminates the risk of being unable to reinvest  distributions at a rate as high
as the implicit yield on the zero coupon bond,  but at the same time  eliminates
any  opportunity  to reinvest  earnings at higher rates.  For this reason,  zero
coupon bonds are subject to  substantially  greater  price  fluctuations  during
periods of changing  market  interest rates than those of comparable  securities
that pay  interest  currently,  which  fluctuation  is  greater as the period to
maturity is longer.  Zero coupon  convertible  securities  which are convertible
into  common  stock  offer  the   opportunity  for  capital   appreciation   (or
depreciation)  as increases (or  decreases)  in market value of such  securities
closely follow the movements in the market value of the underlying common stock.
Zero coupon  convertible  securities  generally are expected to be less volatile
than the underlying common stocks, as they usually are issued with maturities of
15  years  or less  and are  issued  with  options  and/or  redemption  features
exercisable by the holder of the  obligation  entitling the holder to redeem the
obligation and receive a defined cash payment.

Portfolio Holdings

In addition to the public disclosure of Fund portfolio holdings through required
Securities and Exchange Commission ("SEC") quarterly filings,  the Fund may make
its portfolio holdings information publicly available on


                                       23
<PAGE>

the DWS Funds' Web site as described in the Fund's prospectus. The Fund does not
disseminate non-public information about portfolio holdings except in accordance
with policies and procedures adopted by the Fund.

The Fund's  procedures permit non-public  portfolio  holdings  information to be
shared with Deutsche Asset Management and its affiliates  (collectively "DeAM"),
subadvisors, if any, custodians, independent registered public accounting firms,
attorneys,   officers  and  trustees/directors  and  each  of  their  respective
affiliates and advisers who require access to this  information to fulfill their
duties to the Fund and are subject to the duties of  confidentiality,  including
the duty not to trade on non-public information,  imposed by law or contract, or
by the Fund's  procedures.  This  non-public  information may also be disclosed,
subject to the  requirements  described  below,  to securities  lending  agents,
financial  printers,  proxy voting  firms,  mutual fund  analysts and rating and
tracking  agencies,  or to shareholders  in connection with in-kind  redemptions
(collectively, "Authorized Third Parties").

Prior to any disclosure of the Fund's non-public  portfolio holdings information
to   Authorized   Third   Parties,   a   person   authorized   by   the   Fund's
Trustees/Directors  must make a good faith  determination  in light of the facts
then known that the Fund has a legitimate  business  purpose for  providing  the
information,  that the  disclosure is in the best interest of the Fund, and that
the  recipient  assents  or  otherwise  has  a  duty  to  keep  the  information
confidential  and to not  trade  based on the  information  received  while  the
information remains non-public.  No compensation is received by the Fund or DeAM
for disclosing non-public holdings information. Periodic reports regarding these
procedures will be provided to the Fund's Trustees/Directors.

Portfolio  holdings  information  distributed  by the trading desks of DeAM or a
subadvisor for the purpose of facilitating  efficient trading of such securities
and receipt of relevant  research is not subject to the foregoing  requirements.
Non-public   portfolio   holding   information   does  not   include   portfolio
characteristics  (other than holdings or subsets of holdings) about the Fund and
information  derived  therefrom,  including,  but not limited to, how the Fund's
investments are divided among various sectors, industries,  countries, value and
growth stocks,  bonds,  currencies and cash,  types of bonds,  bond  maturities,
duration,  bond  coupons and bond credit  quality  ratings so long as the Fund's
holdings could not be derived from such information.

Registered  investment  companies  that are subadvised by DeAM may be subject to
different  portfolio  holdings  disclosure  policies,  and neither  DeAM nor the
Fund's  Trustees  exercise  control over such  policies.  In addition,  separate
account  clients of DeAM have  access to their  portfolio  holdings  and are not
subject  to the Fund's  portfolio  holdings  disclosure  policy.  The  portfolio
holdings  of some of the  funds  subadvised  by DeAM  and  some of the  separate
accounts managed by DeAM may substantially  overlap with the portfolio  holdings
of the Fund.

DeAM also  manages  certain  unregistered  commingled  trusts and creates  model
portfolios,  the portfolio holdings of which may substantially  overlap with the
portfolio holdings of the Fund. To the extent that investors in these commingled
trusts  or  recipients  of model  portfolio  holdings  information  may  receive
portfolio  holdings  information  of their  trust or of a model  portfolio  on a
different basis from that on which fund portfolio  holdings  information is made
public,  DeAM has implemented  procedures  reasonably designed to encourage such
investors and recipients to keep such information  confidential,  and to prevent
those investors from trading on the basis of non-public holdings information.

There is no assurance that the Fund's  policies and  procedures  with respect to
the disclosure of portfolio holdings  information will protect the Fund from the
potential  misuse of portfolio  holdings  information  by those in possession of
that information.

                             MANAGEMENT OF THE FUND

Investment Advisor

Deutsche Investment Management Americas Inc. ("DIMA"), which is part of Deutsche
Asset  Management  ("DeAM"),  is the investment  advisor for the Fund. Under the
supervision of the Board of Trustees of the Trust,  DIMA,  with  headquarters at
345  Park  Avenue,   New  York,   New  York  10154,   the   subadvisor  and  the
sub-subadvisors  make the Fund's investment  decisions,  buy and sell securities
for the  Fund and  conduct  research  that  leads  to  these  purchase  and sale
decisions.  The Advisor manages the Fund's daily investment and business affairs
subject to the


                                       24
<PAGE>

policies established by the Trust's Board of Trustees. DIMA and its predecessors
have more than 80 years of experience  managing  mutual  funds.  DIMA provides a
full range of investment  advisory services to institutional and retail clients.
The  Advisor is also  responsible  for  selecting  brokers  and  dealers and for
negotiating brokerage commissions and dealer charges.

DeAM is the  marketing  name in the US for the asset  management  activities  of
Deutsche  Bank AG,  DIMA,  Deutsche  Bank Trust  Company  Americas and DWS Trust
Company. DeAM is a global asset management organization that offers a wide range
of investing  expertise and resources,  including hundreds of portfolio managers
and analysts and an office  network  that reaches the world's  major  investment
centers.  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 fund,  retail,  private and commercial  banking,  investment  banking and
insurance.  The term "DWS Scudder" is the designation  given to the products and
services provided by DIMA and its affiliates to the DWS Mutual Funds.

Pursuant to an Investment  Management  Agreement  between the Fund and DIMA (the
"Investment Management  Agreement"),  the Advisor provides continuing investment
management of the assets of the Fund. In addition to the  investment  management
of the assets of the Fund, the Advisor determines the investments to be made for
the Fund, including what portion of its assets remain uninvested in cash or cash
equivalents,  and with whom the orders for  investments  are placed,  consistent
with the Fund's  policies as stated in its  Prospectus and SAI, or as adopted by
the Fund's Board. The Advisor will also monitor,  to the extent not monitored by
the  Fund's  administrator  or  other  agent,  the  Fund's  compliance  with its
investment  and tax  guidelines and other  compliance  policies.  The Investment
Management  Agreement  was  approved  by the  Board  on  March  __,  2008 and is
effective as of June __, 2008.

The Advisor  provides  assistance to the Fund's Board in valuing the  securities
and other  instruments  held by the Fund, to the extent  reasonably  required by
valuation policies and procedures that may be adopted by the Fund.

Pursuant to the Investment Management  Agreement,  (unless otherwise provided in
the agreement or as  determined by the Fund's Board and to the extent  permitted
by applicable  law), the Advisor pays the  compensation  and expenses of all the
Board  members,  officers,  and executive  employees of the Fund,  including the
Fund's share of payroll taxes, who are affiliated persons of the Advisor.

The Fund pays the Advisor an advisory  fee at the annual rate of ___% of average
daily net assets.

Because the Fund has not commenced  operations as of the date of this  Statement
of Additional  Information,  the Fund does not have any advisory fee information
to report.

Through ___________,  2008, the Advisor has contractually agreed to waive all or
a portion of its management  fee and reimburse or pay operating  expenses of the
Fund to the extent necessary to maintain the Fund's total operating  expenses at
____% and ____% for Class A and Class C shares, respectively,  excluding certain
expenses such as extraordinary expenses,  taxes, brokerage,  interest, proxy and
organizational and offering expenses.

Through ___________,  2008, the Advisor has contractually agreed to waive all or
a portion of its management  fee and reimburse or pay operating  expenses of the
Fund to the extent necessary to maintain the Fund's total operating  expenses at
____%  for  Institutional  Class  shares,  excluding  certain  expenses  such as
extraordinary expenses, taxes, brokerage, interest, proxy and organizational and
offering expenses.

The  Investment  Management  Agreement  provides  that  the  Fund  is  generally
responsible  for expenses  that  include:  fees payable to the Advisor;  outside
legal,  accounting  or auditing  expenses,  including  with  respect to expenses
related to negotiation,  acquisition or  distribution of portfolio  investments;
maintenance  of books and records that are  maintained  by the Fund,  the Fund's
custodian,  or other agents of the Fund; taxes and  governmental  fees; fees and
expenses   of  the   Fund's   accounting   agent,   custodian,   sub-custodians,
depositories,  transfer  agents,  dividend  reimbursing  agents and  registrars;
payment  for  portfolio  pricing  or  valuation   services  to  pricing  agents,
accountants,  bankers and other specialists,  if any;  brokerage  commissions or
other costs of  acquiring  or disposing  of any  portfolio


                                       25
<PAGE>

securities or other  instruments of the Fund; and litigation  expenses and other
extraordinary  expenses  not  incurred  in the  ordinary  course  of the  Fund's
business.

The Investment  Management  Agreement  allows the Advisor to delegate any of its
duties under the  Agreement to a  subadvisor,  subject to a majority vote of the
Board of the Fund,  including  a  majority  of the Board who are not  interested
persons of the Fund, and, if required by applicable  law,  subject to a majority
vote of the Fund's shareholders.

The  Investment  Management  Agreement  provides  that the Advisor  shall not be
liable for any error of judgment  or mistake of law or for any loss  suffered by
the Fund in  connection  with matters to which the agreement  relates,  except a
loss resulting from willful  malfeasance,  bad faith or gross  negligence on the
part of the Advisor in the performance of its duties or from reckless  disregard
by the Advisor of its obligations and duties under the agreement. The Investment
Management  Agreement may be terminated at any time, without payment of penalty,
by either party or by vote of a majority of the outstanding voting securities of
the Fund on 60 days' written notice.

Under a separate agreement between Deutsche Bank AG and the Fund,  Deutsche Bank
AG has granted a license to the Fund to utilize the trademark "DWS."

In reviewing  the terms of each  Agreement and in  discussions  with the Advisor
concerning  such  Agreement,  the  Directors  of the  Corporation  who  are  not
"interested  persons" of the Advisor are  represented by independent  counsel at
the Fund's expense.

The  Agreement  provides  that the Advisor  shall not be liable for any error of
judgment or mistake of law or for any loss  suffered  by the Fund in  connection
with  matters  to which the  Agreement  relates,  except a loss  resulting  from
willful misfeasance, bad faith or gross negligence on the part of the Advisor in
the  performance of its duties or from reckless  disregard by the Advisor of its
obligations and duties under the Agreement.

Officers and  employees  of the Advisor from time to time may have  transactions
with various  banks,  including the Fund's  custodian  bank. It is the Advisor's
opinion that the terms and conditions of those  transactions which have occurred
were  not   influenced  by  existing  or  potential   custodial  or  other  Fund
relationships.

The Advisor may serve as advisor to other funds with  investment  objectives and
policies  similar  to  those of the Fund  that may have  different  distribution
arrangements or expenses, which may affect performance.

None of the officers or Directors of the  Corporation may have dealings with the
Fund as principals in the purchase or sale of  securities,  except as individual
subscribers to or holders of shares of the Fund.

The term "DWS Scudder" is the designation  given to the services provided by the
Advisor and its affiliates to DWS Mutual Funds.

The Advisor may enter into  arrangements with affiliates and third party service
providers to perform  various  administrative,  back-office  and other  services
relating to client accounts.  Such service providers may be located in the US or
in non-US jurisdictions.

In addition,  the Board has approved a subadvisor  approval  policy for the Fund
(the "Subadvisor  Approval Policy").  The Subadvisor Approval Policy permits the
Advisor,  subject to the  approval  of the Board,  including  a majority  of its
independent  board  members,  to appoint  and replace  subadvisors  and to amend
sub-advisory  contracts  without  obtaining  shareholder  approval.   Under  the
Subadvisor Approval Policy, the Board,  including its independent board members,
will continue to evaluate and approve all new sub-advisory contracts between the
Advisor and any subadvisor,  as well as all changes to any existing sub-advisory
contract.  The Fund cannot implement the Subadvisor  Approval Policy without the
SEC either adopting  revisions to current rules (as it proposed to do in October
2003) or granting the Fund exemptive  relief from existing  rules.  The Fund and
the  Advisor  would be  subject to  certain  conditions  imposed by the SEC (and
certain  conditions  that may be imposed in the future within  either  exemptive
relief or a rule) to ensure that the interests of the Fund and its  shareholders
are adequately protected whenever the Advisor acts under the Subadvisor Approval
Policy, including any shareholder notice requirements.


                                       26
<PAGE>

Subadvisor.  RREEF  America  L.L.C.  ("RREEF"),  located  at 875 North  Michigan
Avenue, 41st Floor, Chicago, Illinois 60611, an affiliate of the Advisor, is the
subadvisor for the Fund. RREEF serves as sub-advisor  pursuant to the terms of a
subadvisory agreement (the "Subadvisory  Agreement") between it and the Advisor.
RREEF has provided real estate investment  management  services to institutional
investors  since  1975  and  has  been an  investment  advisor  of  real  estate
securities since 1993.

While DIMA is the investment  advisor to the Fund, the day-to-day  activities of
managing the Fund's  portfolio  have been delegated to RREEF.  DIMA  compensates
RREEF out of the management fee it receives from the Fund.

The Subadvisory  Agreement  provides that RREEF will not be liable for any error
of judgment or mistake of law or for any loss suffered by the Fund in connection
with matters to which the Subadvisory Agreement relates, except a loss resulting
from willful  misconduct,  bad faith or gross negligence on the part of RREEF in
the  performance  of its  duties  or from  reckless  disregard  by  RREEF of its
obligations and duties under the Research and Advisory Agreement.

The Subadvisory Agreement shall continue in effect from year to year thereafter,
but only as long as such continuance is specifically  approved at least annually
(a) by a  majority  of the  Trustees  of the Trust who are not  parties  to such
agreement or  interested  persons of any such party except in their  capacity as
Trustees of the Trust,  and (b) by the  shareholders or the Board of Trustees of
the Trust.  The Research and Advisory  Agreement  may be  terminated at any time
upon sixty days'  notice by the Advisor or by the Board of Trustees of the Trust
or by majority vote of the  outstanding  shares of the Fund,  and will terminate
automatically  upon  assignment  or upon  termination  of the Fund's  investment
management agreement.

Sub-subadvisors. Pursuant to investment sub-subadvisory agreements between RREEF
and RREEF Global Advisers Limited, Deutsche Asset Management (Hong Kong) Limited
and  Deutsche  Investments  Australia  Limited  (the  "sub-subadvisors"),  these
entities act as sub-subadvisors to the Fund. The  sub-subadvisors  are indirect,
wholly owned  subsidiaries  of Deutsche Bank AG. As  sub-subadvisors,  under the
supervision of the Board of Trustees, DIMA and RREEF, the sub-subadvisors manage
the Fund's investments in specific foreign markets.

RREEF Global Advisers  Limited,  Winchester  House, 1 Great  Winchester  Street,
London,  United Kingdom,  EC2N 2DB, manages security selection decisions for the
European portion of the fund's portfolio.  Deutsche Asset Management (Hong Kong)
Limited,  55/F Cheung Kong Centre, 2 Queen's Road Central, Hong Kong, China, and
Deutsche Investments  Australia Limited,  Level 21, 83 Clarence Street,  Sydney,
Australia,  NSW, 2000,  manage the stock  selection  decisions for the Asian and
Australian portions of the Fund's portfolio, respectively.

The Fund's shareholder report for the period ended  _____________ will contain a
discussion  regarding  the  basis  for the Board of  Trustees'  approval  of the
Agreement, the Subadvisory Agreement and the sub-subadvisory  agreements for the
Fund.

Compensation of Portfolio Managers

[TO BE UPDATED]

The Fund has been advised that the Advisor,  RREEF, and the  sub-subadvisors  or
sub-sub-subadvisor  seek to offer  their  investment  professionals  competitive
short-term  and  long-term   compensation.   Portfolio   managers  and  research
professionals  are paid  (i)  fixed  base  salaries,  which  are  linked  to job
function,  responsibilities  and financial services industry peer comparison and
(ii)  variable  compensation,   which  is  linked  to  investment   performance,
individual  contributions  to the team and DWS  Scudder's  and  Deutsche  Bank's
financial results.  Variable compensation may include a cash bonus incentive and
participation in a variety of long-term equity programs  (usually in the form of
Deutsche Bank equity).  The portfolio  managers are compensated by RREEF and the
sub-subadvisors or sub-sub-subadvisor, as applicable.

Bonus  and  long-term   incentives   comprise  a  greater  proportion  of  total
compensation as an investment  professional's  seniority and compensation levels
increase.  Top performing  investment  professionals  earn a total  compensation
package  that is highly  competitive,  including  a bonus that is a multiple  of
their base  salary.  The amount of equity


                                       27
<PAGE>

awarded  under  the  long-term   equity  programs  is  generally  based  on  the
individual's  total  compensation  package and may  comprise  from 0%-40% of the
total compensation award. As incentive compensation increases, the percentage of
compensation  awarded in Deutsche  Bank equity also  increases.  Certain  senior
investment professionals may be subject to a mandatory diverting of a portion of
their equity compensation into proprietary mutual funds that they manage.

To  evaluate  its  investment   professionals,   the  Advisor,  RREEF,  and  the
sub-subadvisors  or  sub-sub-subadvisor  use a Performance  Management  Process.
Objectives  evaluated by the process are related to investment  performance  and
generally take into account peer group and benchmark  related data. The ultimate
goal of this process is to link the performance of investment professionals with
client investment objectives and to deliver investment performance that meets or
exceeds   clients'  risk  and  return   objectives.   When   determining   total
compensation,  the Advisor, RREEF, and the sub-subadvisors or sub-sub-subadvisor
consider a number of quantitative and qualitative factors such as:

o        DWS  Scudder   performance   and  the  performance  of  Deutsche  Asset
         Management, quantitative measures which include 1, 3 and 5 year pre-tax
         returns versus benchmark (such as the benchmark used in the prospectus)
         and appropriate  peer group,  taking into  consideration  risk targets.
         Additionally, the portfolio manager's retail/institutional asset mix is
         weighted, as appropriate for evaluation purposes.

o        Qualitative  measures include  adherence to the investment  process and
         individual  contributions  to  the  process,  among  other  things.  In
         addition,   the   Advisor,    RREEF,   and   the   sub-subadvisors   or
         sub-sub-subadvisor  assess  compliance,  risk  management  and teamwork
         skills.

o        Other factors,  including  contributions made to the investment team as
         well as  adherence  to  compliance,  risk  management,  and "living the
         values"   of  the   Advisor,   RREEF,   and  the   sub-subadvisors   or
         sub-sub-subadvisor,  are part of a discretionary  component which gives
         management the ability to reward these behaviors on a subjective  basis
         through bonus incentives.

In addition,  the Advisor,  RREEF, and the sub-subadvisors or sub-sub-subadvisor
analyzes  competitive  compensation  levels through the use of extensive  market
data surveys.  Portfolio  manager  compensation  is reviewed and may be modified
each year as appropriate to reflect changes in the market,  as well as to adjust
the factors used to determine  overall  compensation  to promote good  sustained
investment performance.

Fund Ownership of Portfolio Managers

The following table shows the dollar range of shares owned  beneficially  and of
record by each  member of the Fund's  portfolio  management  team in the Fund as
well as in all DWS Funds as a group (i.e.  those funds advised by Deutsche Asset
Management or its affiliates),  including  investments by their immediate family
members sharing the same household and amounts invested  through  retirement and
deferred  compensation plans. This information is provided as of the Fund's most
recent fiscal year end.

<TABLE>
<CAPTION>
                                                       Dollar Range of                    Dollar Range of All DWS
Name of Portfolio Manager                              Fund Shares Owned                      Fund Shares Owned
-------------------------                              -----------------                      -----------------
<S>                                                               <C>                               <C>
John W. Vojticek
John F. Robertson
John Hammond
William Leung
Daniel Ekins
</TABLE>

Conflicts of Interest

In addition to managing the assets of the Fund,  the Fund's  portfolio  managers
may have responsibility for managing other client accounts of the Advisor or its
affiliates.  The tables below show, for each portfolio  manager,  the number


                                       28
<PAGE>

and asset size of (1) SEC registered  investment  companies (or series  thereof)
other than the Fund,  (2) pooled  investment  vehicles  that are not  registered
investment  companies  and  (3)  other  accounts  (e.g.,  accounts  managed  for
individuals or organizations) managed by each portfolio manager. The tables also
show the number of performance  based fee accounts,  as well as the total assets
of the accounts for which the  advisory fee is based on the  performance  of the
account.  This  information is provided as of the Fund's most recent fiscal year
end.

Other SEC Registered Investment Companies Managed:

<TABLE>
<CAPTION>
                                       Number of        Total Assets of    Number of Investment     Total Assets of
                                      Registered          Registered         Company Accounts        Performance-
                                      Investment          Investment         with Performance-         Based Fee
Name of Portfolio Manager              Companies           Companies             Based Fee             Accounts
-------------------------              ---------           ---------             ---------             --------
<S>                                      <C>                    <C>              <C>                      <C>
John W. Vojticek
John F. Robertson
John Hammond
William Leung
Daniel Ekins

Other Pooled Investment Vehicles Managed:

                                                                              Number of Pooled
                                      Number of                              Investment Vehicle     Total Assets of
                                       Pooled          Total Assets of         Accounts with         Performance-
                                     Investment       Pooled Investment         Performance-           Based Fee
Name of Portfolio Manager             Vehicles             Vehicles              Based Fee             Accounts
-------------------------             --------             --------              ---------             --------

John W. Vojticek
John F. Robertson
John Hammond
William Leung
Daniel Ekins

Other Accounts Managed:

                                                                              Number of Other     Total Assets of
                                      Number of                                Accounts with        Performance-
                                        Other          Total Assets of         Performance-          Based Fee
Name of Portfolio Manager             Accounts          Other Accounts           Based Fee            Accounts
-------------------------             --------          --------------           ---------            --------

John W. Vojticek
John F. Robertson
John Hammond
William Leung
Daniel Ekins
</TABLE>

                                       29
<PAGE>

In  addition  to the  accounts  above,  an  investment  professional  may manage
accounts in a personal  capacity that may include  holdings that are similar to,
or the same as, those of the Fund. The Advisor,  RREEF, and the  sub-subadvisors
or sub-sub-subadvisor  has in place a Code of Ethics that is designed to address
conflicts of interest and that, among other things,  imposes restrictions on the
ability of portfolio managers and other "access persons" to invest in securities
that may be recommended or traded in the Fund and other client accounts.

Real,  potential  or apparent  conflicts  of interest may arise when a portfolio
manager has day-to-day  portfolio  management  responsibilities  with respect to
more than one fund or account,  including the following:

o        Certain  investments may be appropriate for the Fund and also for other
         clients advised by the Advisor, including other client accounts managed
         by the Fund's portfolio  management team.  Investment decisions for the
         Fund  and  other  clients  are  made  with a view  to  achieving  their
         respective  investment  objectives  and  after  consideration  of  such
         factors as their current holdings,  availability of cash for investment
         and the size of their investments  generally. A particular security may
         be bought or sold for only one client or in  different  amounts  and at
         different times for more than one but less than all clients.  Likewise,
         because   clients  of  the  Advisor  may  have   differing   investment
         strategies, a particular security may be bought for one or more clients
         when one or more other clients are selling the security. The investment
         results  achieved for the Fund may differ from the results achieved for
         other  clients of the Advisor.  In addition,  purchases or sales of the
         same  security  may be made for two or more clients on the same day. In
         such event,  such transactions will be allocated among the clients in a
         manner  believed by the Advisor to be most  equitable  to each  client,
         generally utilizing a pro rata allocation  methodology.  In some cases,
         the allocation  procedure could  potentially  have an adverse effect or
         positive  effect on the price or amount of the securities  purchased or
         sold by the Fund. Purchase and sale orders for the Fund may be combined
         with those of other clients of the Advisor in the interest of achieving
         the most favorable net results to the Fund and the other clients.

o        To the  extent  that  a  portfolio  manager  has  responsibilities  for
         managing  multiple client  accounts,  a portfolio  manager will need to
         divide time and attention among relevant accounts. The Advisor attempts
         to minimize these conflicts by aligning its portfolio  management teams
         by  investment  strategy and by  employing  similar  investment  models
         across multiple client accounts.

o        In some cases, an apparent  conflict may arise where the Advisor has an
         incentive, such as a performance-based fee, in managing one account and
         not with  respect to other  accounts it manages.  The Advisor  will not
         determine  allocations based on whether it receives a performance-based
         fee from the client. Additionally, the Advisor has in place supervisory
         oversight processes to periodically monitor performance  deviations for
         accounts with like strategies.

o        The Advisor and its affiliates and the investment  team of the Fund may
         manage other mutual funds and separate  accounts on a long-short basis.
         The  simultaneous  management  of long  and  short  portfolios  creates
         potential  conflicts  of  interest  including  the risk that short sale
         activity could adversely  affect the market value of the long positions
         (and vice versa),  the risk arising from sequential  orders in long and
         short  positions,  and the risks  associated  with  receiving  opposing
         orders at the same time.  The Advisor has  adopted  procedures  that it
         believes are reasonably  designed to mitigate these potential conflicts
         of  interest.  Included in these  procedures  are  specific  guidelines
         developed to ensure fair and equitable  treatment for all clients whose
         accounts  are managed by each Fund's  portfolio  management  team.  The
         Advisor and the portfolio  management team have established  monitoring
         procedures,  a protocol for supervisory  reviews, as well as compliance
         oversight to ensure that  potential  conflicts of interest  relating to
         this type of activity are properly addressed.

The Advisor is owned by Deutsche Bank AG, a  multi-national  financial  services
company.  Therefore,  the Advisor is affiliated  with a variety of entities that
provide, and/or engage in commercial banking, insurance,  brokerage,  investment
banking,  financial  advisory,  broker-dealer  activities  (including  sales and
trading),  hedge funds, real estate and private equity investing, in addition to
the provision of investment  management services to institutional and individual
investors.  Since  Deutsche  Bank AG, its  affiliates,  directors,  officers and
employees (the "Firm") are engaged in businesses  and have interests  other than
managing  asset  management  accounts,   such  other  activities  involve  real,
potential or apparent  conflicts of interest.  These  interests  and  activities
include potential  advisory,


                                       30
<PAGE>

transactional  and financial  activities  and other  interests in securities and
companies  that may be directly or indirectly  purchased or sold by the Firm for
its clients'  advisory  accounts.  These are  considerations  of which  advisory
clients  should be aware and which  may  cause  conflicts  that  could be to the
disadvantage  of the  Advisor's  advisory  clients.  The Advisor has  instituted
business and compliance  policies,  procedures and disclosures that are designed
to identify, monitor and mitigate conflicts of interest and, as appropriate,  to
report them to the Fund's Board.

Codes of Ethics

The Fund, the Advisor, RREEF, and the sub-subadvisors and sub-sub-subadvisor and
the Fund's  principal  underwriter  have each adopted codes of ethics under Rule
17j-1 under the 1940 Act. Board members,  officers of the Trust and employees of
the Advisor, RREEF, and the sub-subadvisors and sub-sub-subadvisor and principal
underwriter are permitted to make personal  securities  transactions,  including
transactions in securities that may be purchased or held by the Fund, subject to
certain  requirements  and  restrictions  set  forth in the  applicable  Code of
Ethics. The Advisor's, RREEF's, and the sub-subadvisors' or sub-sub-subadvisor's
Code of Ethics  contains  provisions and  requirements  designed to identify and
address certain conflicts of interest between personal investment activities and
the interests of the Fund. Among other things, the Advisor's,  RREEF's,  and the
sub-subadvisors' or sub-sub-subadvisor's  Code of Ethics prohibits certain types
of  transactions  absent  prior  approval,  imposes  time  periods  during which
personal  transactions may not be made in certain  securities,  and requires the
submission  of  duplicate  broker   confirmations  and  quarterly  reporting  of
securities  transactions.  Additional  restrictions apply to portfolio managers,
traders,  research  analysts  and others  involved  in the  investment  advisory
process. Exceptions to these and other provisions of the Advisor's, RREEF's, and
the  sub-subadvisors' or  sub-sub-subadvisor's  Code of Ethics may be granted in
particular circumstances after review by appropriate personnel.

Regulatory Matters and Legal Proceedings

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

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

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


                                       31
<PAGE>

violations by the advisors and their  employees;  and  commencing  in 2008,  the
advisors shall undergo a compliance review by an independent third party.

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

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

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

Under the terms of the  settlements,  in which DIMA,  DAMI and  DWS-SDI  neither
admitted  nor denied any of the  regulators'  findings,  DIMA,  DAMI and DWS-SDI
agreed to pay  disgorgement,  prejudgment  interest  and civil  penalties in the
total amount of $19.3 million. The portion of the settlements distributed to the
funds was approximately $17.8 million and was paid to the funds as prescribed by
the settlement  orders based upon the amount of brokerage  commissions from each
fund used to satisfy revenue sharing  agreements  with  broker-dealers  who sold
fund shares.

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

Additional  information announced by DeAM regarding the terms of the settlements
is available at www.dws-scudder.com/regulatory_settlements.

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

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


                                       32
<PAGE>

                             FUND SERVICE PROVIDERS

Administrator

The Advisor  serves as the Fund's  administrator  pursuant to an  Administrative
Services  Agreement.  Pursuant to the  Administrative  Services  Agreement,  the
Advisor  provides  most  administrative  services to the Fund  including,  among
others, providing the Fund with personnel, preparing and making required filings
on  behalf  of the  Fund,  maintaining  books  and  records  for the  Fund,  and
monitoring the valuation of Fund securities.

For its services under the Administration  Agreement, the Advisor receives a fee
of 0.10% of the aggregate average daily net assets of the Fund.

Under the Administrative  Services Agreement,  DIMA is obligated on a continuous
basis to provide  such  administrative  services as the Board of Trustees of the
Fund reasonably deems necessary for the proper  administration of the Fund. DIMA
provides the Fund with personnel; arranges for the preparation and filing of the
Fund's tax returns;  prepares and submits  reports and meeting  materials to the
Board and the shareholders;  prepares and files updates to the Fund's Prospectus
and Statement of Additional  Information as well as other reports required to be
filed by the SEC;  maintains the Fund's  records;  provides the Fund with office
space,  equipment  and  services;  supervises,  negotiates  the contracts of and
monitors the performance of third parties  contractors;  oversees the tabulation
of  proxies;  monitors  the  valuation  of  portfolio  securities  and  monitors
compliance with Board-approved valuation procedures; assists in establishing the
accounting and tax policies of the Fund; assists in the resolution of accounting
issues that may arise with  respect to the Fund;  establishes  and  monitors the
Fund's  operating  expense  budgets;  reviews and  processes  the Fund's  bills;
assists in determining the amount of dividends and distributions available to be
paid by the Fund,  prepares and  arranges  dividend  notifications  and provides
information to agents to effect payments thereof; provides to the Board periodic
and special  reports;  provides  assistance  with investor and public  relations
matters;  and monitors the registration of shares under  applicable  federal and
state law. The Advisor also performs certain fund accounting  services under the
Administrative   Services  Agreement.   The  Administrative  Services  Agreement
provides that the Advisor will not be liable under the  Administrative  Services
Agreement  except  for  willful  misfeasance,  bad  faith or  negligence  in the
performance of its duties or from the reckless disregard by it of its duties and
obligations thereunder.

As the Fund commenced operations on June __, 2008, the Fund has not yet incurred
an Administration Fee.

Pursuant to an  agreement  between  the Advisor and State  Street Bank and Trust
Company ("SSB"), the Advisor has delegated certain  administrative  functions to
SSB. The costs and expenses of such delegation are borne by the Advisor,  not by
the Fund.

Pursuant to DeAM  procedures  approved by the Boards on behalf of the DWS funds,
proof of claim forms are  routinely  filed on behalf of the DWS funds by a third
party service provider,  with certain limited exceptions.  The Boards of the DWS
funds receive periodic reports regarding the implementation of these procedures.

Distributor

Pursuant to an Underwriting and Distribution  Services Agreement  ("Distribution
Agreement"),  DWS Scudder Distributors,  Inc.  ("DWS-SDI"),  222 South Riverside
Plaza,  Chicago,  Illinois 60606, an affiliate of the Advisor,  is the principal
underwriter  and distributor  for the Class A, Class C and  Institutional  Class
shares of the Fund and acts as agent of the Fund in the  continuous  offering of
its shares.  The  Distribution  Agreement for the Fund, dated June __, 2008, was
initially approved by the Trustees on March __, 2008. The Distribution Agreement
continues  in effect from year to year only if its  continuance  is approved for
each  class  at least  annually  by a vote of the  Board  members  of the  Fund,
including the Trustees who are not  interested  persons of the Fund and who have
no direct or indirect financial interest in the Distribution Agreement.

The  Distribution  Agreement  automatically  terminates  in  the  event  of  its
assignment and may be terminated for a class at any time without  penalty by the
relevant  Fund or by DWS-SDI upon sixty days'  notice.  Termination  by the Fund
with  respect to a class may be by vote of (i) a majority  of the Board  members
who are not  interested  persons of


                                       33
<PAGE>

the  Fund  and  who  have  no  direct  or  indirect  financial  interest  in the
Distribution   Agreement,   or  (ii)  a  "majority  of  the  outstanding  voting
securities"  of the  class of the Fund,  as  defined  under  the 1940  Act.  All
material  amendments  must be  approved  by the Board of  Trustees in the manner
described  above  with  respect  to  the  continuation  of  the  Agreement.  The
provisions   concerning   continuation,   amendment  and   termination   of  the
Distribution Agreement are on a series by series and class by class basis.

DWS-SDI  bears  all  of its  expenses  of  providing  services  pursuant  to the
Distribution Agreement,  including the payment of any commissions. The Fund pays
the cost for the  prospectus and  shareholder  reports to be typeset and printed
for existing shareholders,  and DWS-SDI, as principal underwriter,  pays for the
printing and distribution of copies thereof used in connection with the offering
of shares to prospective  investors.  DWS-SDI also pays for supplementary  sales
literature and advertising costs. As indicated under "Purchase and Redemption of
Shares,"  DWS-SDI  retains the sales charge upon the purchase of shares and pays
or allows  concessions  or discounts to firms for the sale of the Fund's shares.
DWS-SDI  receives no  compensation  from the Fund as principal  underwriter  for
Class A  shares.  DWS-SDI  receives  compensation  from  the  Fund as  principal
underwriter for Class C shares.

Shareholder  and  administrative  services are provided to the Fund on behalf of
Class A and Class C  shareholders  under a Shareholder  Services  Agreement (the
"Services  Agreement") with DWS-SDI.  The Services Agreement has an initial term
ending  September  30, 2007 and continues in effect from year to year so long as
such  continuance  is approved  for the Fund at least  annually by a vote of the
Board of the Fund, including the Board members who are not interested persons of
the Fund and who have no direct or indirect  financial  interest in the Services
Agreement.  The Services Agreement automatically  terminates in the event of its
assignment  and may be terminated at any time without  penalty by the Fund or by
DWS-SDI  upon sixty days'  notice.  Termination  with  respect to the Class A or
Class C shares  of the Fund may be by a vote of (i) the  majority  of the  Board
members of the Fund who are not  interested  persons of the Fund and who have no
direct or indirect  financial  interest  in the  Services  Agreement,  or (ii) a
"majority  of the  outstanding  voting  securities"  of the  Class A or  Class C
shares, as defined under the 1940 Act. The Services Agreement may not be amended
for a class  to  increase  materially  the fee to be  paid by the  Fund  without
approval of a majority of the outstanding voting securities of such class of the
Fund, and all material  amendments must in any event be approved by the Board of
Trustees in the manner  described above with respect to the  continuation of the
Services Agreement.

Under  the  Services   Agreement,   DWS-SDI  may  provide  or  appoint   various
broker-dealer  firms and other  service or  administrative  firms  ("firms")  to
provide  information and services to investors in the Fund.  Typically,  DWS-SDI
appoints  firms that provide  services  and  facilities  for their  customers or
clients who are investors in the Fund.  Firms  appointed by DWS-SDI provide such
office space and equipment,  telephone  facilities and personnel as is necessary
or beneficial  for providing  information  and services to their  clients.  Such
services and assistance may include,  but are not limited to,  establishing  and
maintaining   accounts  and   records,   processing   purchase  and   redemption
transactions,   answering  routine  inquiries  regarding  the  Fund,   providing
assistance  to clients in changing  dividend  and  investment  options,  account
designations  and  addresses  and such other  administrative  services as may be
agreed  upon from time to time and  permitted  by  applicable  statute,  rule or
regulation.

DWS-SDI bears all of its expenses of providing  those  services  pursuant to the
Services Agreement,  including the payment of a service fee to firms (as defined
below).  As  indicated  under the Rule 12b-1 Plan (as  defined  below),  DWS-SDI
receives  compensation  from the  Funds  for its  services  under  the  Services
Agreement.

Rule 12b-1 Plans

The Fund has  adopted a plan  pursuant  to Rule 12b-1 under the 1940 Act (each a
"Rule 12b-1  Plan") that  provides for fees payable as an expense of the Class C
shares that are used by DWS-SDI to pay for distribution  services for the class.
Pursuant to the Rule 12b-1 Plan,  shareholder  and  administrative  services are
provided to the Fund on behalf of its Class A and Class C shareholders under the
Fund's Services Agreement with DWS-SDI.  Because 12b-1 fees are paid out of Fund
assets on an ongoing  basis,  they  will,  over  time,  increase  the cost of an
investment and may cost more than other types of sales charges.

The Rule 12b-1 distribution plans for Class C shares provide alternative methods
for paying sales charges and may help the Fund grow or maintain  asset levels to
provide  operational  efficiencies  and  economies of scale.  Rule 12b-1 service
plans  provide   compensation  to  DWS-SDI  or  intermediaries   for  post-sales
servicing.  Since the  Distribution


                                       34
<PAGE>

Agreement provides for fees payable as an expense of the Class C shares that are
used by  DWS-SDI  to pay for  distribution  and  services  for  the  class,  the
agreement  is  approved  and  reviewed  separately  for the  Class C  shares  in
accordance  with Rule 12b-1 under the 1940 Act,  which  regulates  the manner in
which an investment  company may,  directly or indirectly,  bear the expenses of
distributing its shares. The Distribution Agreement and Rule 12b-1 plans may not
be amended to  increase  the fee to be paid by the Fund with  respect to a class
without  approval by a majority of the  outstanding  voting  securities  of such
class. Similarly, the Services Agreement is approved and reviewed separately for
the Class A shares and Class C shares in accordance with Rule 12b-1.

If a Rule 12b-1 Plan is terminated in accordance with its terms,  the obligation
of the Fund to make  payments  to DWS-SDI  pursuant  to the Rule 12b-1 Plan will
cease and the Fund will not be  required  to make any  payments  not  previously
accrued past the termination  date.  Thus,  there is no legal obligation for the
Fund to pay any expenses incurred by DWS-SDI other than fees previously  accrued
and payable  under a Rule 12b-1  Plan,  if for any reason the Rule 12b-1 Plan is
terminated in accordance  with its terms.  Future fees under the Rule 12b-1 Plan
may or may not be sufficient to cover DWS-SDI for its expenses incurred.  On the
other hand, under certain circumstances,  DWS-SDI might collect in the aggregate
over certain periods more in fees under the Rule 12b-1 Plan than it has expended
over that same  period  in  providing  distribution  services  for the Fund.  In
connection  with  Class B  shares,  for  example,  if shares of the Fund were to
appreciate  (resulting  in greater  asset base against which Rule 12b-1 fees are
charged)  and sales of the Fund's  shares  were to decline  (resulting  in lower
expenditures  by DWS-SDI  under the Rule 12b-1 Plan),  fees payable could exceed
expenditures. This may also happen over certain periods shorter than the life of
the Rule 12b-1 Plan  simply due to the timing of  expenses  incurred  by DWS-SDI
that is not matched to the timing of revenues received (e.g., a sales commission
may be paid by DWS-SDI  related to an investment in year 1, while the Rule 12b-1
fee to DWS-SDI  related to that investment may accrue during year 1 through year
6 prior to conversion  of the  investment  to Class A shares).  As a result,  if
DWS-SDI's  expenses  are less than the Rule 12b-1 fees,  DWS-SDI will retain its
full fees and make a profit.

Class C Shares

Distribution  Services.  For its  services  under  the  Distribution  Agreement,
DWS-SDI receives a fee from the Fund under its Rule 12b-1 Plan, payable monthly,
at the annual rate of 0.75% of average daily net assets of the Fund attributable
to Class C shares.  This fee is  accrued  daily as an expense of Class C shares.
DWS-SDI currently advances to firms the first year distribution fee at a rate of
0.75% of the purchase price of Class C shares. For periods after the first year,
DWS-SDI  currently  pays firms for sales of Class C shares a  distribution  fee,
payable  quarterly,  at an annual  rate of 0.75% of net assets  attributable  to
Class C shares  maintained  and serviced by the firm.  This fee continues  until
terminated  by  DWS-SDI  or the  applicable  Fund.  DWS-SDI  also  receives  any
contingent deferred sales charges paid with respect to Class C shares.

Class A and Class C Shares

Shareholder  Services.  For its services under the Services  Agreement,  DWS-SDI
receives a  shareholder  services  fee from the Fund  under a Rule  12b-1  Plan,
payable  monthly,  at an  annual  rate of up to 0.25% of the  average  daily net
assets of Class A and Class C shares of the Fund.

With  respect  to Class A shares of the Fund,  DWS-SDI  pays each firm a service
fee,  payable  quarterly,  at an annual rate of up to 0.25% of the net assets in
Fund accounts that it maintains and services  attributable  to Class A shares of
the Fund,  commencing with the month after  investment.  With respect to Class C
shares of the Fund,  DWS-SDI currently  advances to firms the first-year service
fee at a rate of up to 0.25% of the purchase  price of such shares.  For periods
after the first year,  DWS-SDI currently intends to pay firms a service fee at a
rate of up to 0.25%  (calculated  monthly and paid  quarterly) of the net assets
attributable  to Class C shares of the Fund maintained and serviced by the firm.
Firms to which  service  fees may be paid  include  affiliates  of  DWS-SDI.  In
addition  DWS-SDI  may,  from  time to  time,  pay  certain  firms  from its own
resources additional amounts for ongoing administrative  services and assistance
provided to their customers and clients who are shareholders of the Fund.

DWS-SDI also may provide  some of the above  services and may retain any portion
of the fee under the Services  Agreement not paid to firms to compensate  itself
for shareholder or administrative  functions performed for the Fund.  Currently,
the shareholder  services fee payable to DWS-SDI is payable at an annual rate of
up to 0.25% of net assets  based upon Fund assets in  accounts  for which a firm
provides  administrative  services and at the annual rate of



                                       35
<PAGE>

0.15% of net assets  based upon Fund  assets in  accounts  for which there is no
firm of record (other than DWS-SDI) listed on the Fund's records.  The effective
shareholder services fee rate to be charged against all assets of the Fund while
this  procedure is in effect will depend upon the proportion of Fund assets that
is held in accounts for which a firm of record  provides  shareholder  services.
The Board of the Fund, in its discretion,  may approve basing the fee to DWS-SDI
at the annual rate of 0.25% on all Fund assets in the future.

Expenses of the Fund paid in connection  with the Rule 12b-1 Plan for each class
of shares are set forth below for the most recent year for which  information is
available.  A portion of the marketing and sales and  operating  expenses  shown
below could be considered overhead expenses.


                                       36
<PAGE>

<TABLE>
<CAPTION>
                        Compensation to Underwriter and Firms
                           for the Period from____________
                           -------------------------------
                                                                           Compensation
                                                        Compensation         Paid by
                   12b-1 Fees        12b-1 Fees            Paid by          DWS-SDI to
                 (Distribution      (Shareholder           DWS-SDI          Firms from
                   Fee) Paid       Servicing Fee)       to Firms from      Shareholder
                   to DWS-SDI      Paid to DWS-SDI    Distribution Fee    Servicing Fee
                   ----------      ---------------    ----------------    -------------
<S>                      <C>              <C>                   <C>              <C>
Class A
Class C


                       Other Distribution Expenses Paid by Underwriter
                              for the Period from _____________
                              ---------------------------------

                Advertising,
                   Sales,
              Literature and                   Marketing    Postage
                Promotional      Prospectus   and Sales     and         Interest
                 Materials        Printing     Expenses      Mailing    Expenses
                 ---------        --------     --------      -------    --------

Class A
Class C

</TABLE>


                                       37
<PAGE>

DWS RREEF Global Infrastructure Fund

The  following  table  shows,  for  Class A  shares,  the  aggregate  amount  of
underwriting  commissions paid to DWS-SDI, the amount in commissions it paid out
to brokers and the amount of underwriting commissions retained by DWS-SDI.

<TABLE>
<CAPTION>
                                                               Aggregate
                                                              Commissions                                Aggregate
                                               Aggregate        Paid to      Aggregate Commissions      Commissions
                               Fiscal Year       Sales       Unaffiliated             Paid             Retained by
Fund                           As of 12/31    Commissions        Firms        to Affiliated Firms         DWS-SDI
----                           -----------    -----------        -----        -------------------         -------
<S>                               <C>            <C>             <C>                      <C>              <C>
DWS RREEF Global
Infrastructure Fund
</TABLE>

Certain  Trustees or officers of the Fund are also  directors or officers of the
Advisor or DWS-SDI, as indicated under "Officers and Trustees."

Custodian

Brown  Brothers  Harriman and Co. (the  "Custodian"),  40 Water Street,  Boston,
Massachusetts  02109,  serves as the Trust's  custodian  pursuant to a Custodian
Agreement.  Under its  custody  agreement  with the  Trust,  the  Custodian  (i)
maintains  separate  accounts in the name of the Fund,  (ii) holds and transfers
portfolio  securities on account of the Fund,  (iii) accepts  receipts and makes
disbursements  of money on behalf of the Fund,  (iv)  collects  and receives all
income and other payments and  distributions  on account of the Fund's portfolio
securities  and (v) makes  periodic  reports to the  Trust's  Board of  Trustees
concerning the Fund's  operations.  The Custodian is authorized to select one or
more foreign or domestic banks or companies to serve as  sub-custodian on behalf
of the Fund, pursuant to Rule 17f-5 under the 1940 Act.

Transfer Agent and Shareholder Service Agent

DWS Scudder  Investments  Service Company  ("DWS-SISC" or the "Transfer Agent"),
210 W. 10th  Street,  Kansas  City,  Missouri  64105-1614,  an  affiliate of the
Advisor,  is the transfer agent,  dividend-paying  agent and shareholder service
agent for the Fund pursuant to a transfer agency agreement (the "Transfer Agency
Agreement"),  under which the Transfer  Agent (i) maintains  record  shareholder
accounts,  and (ii) makes  periodic  reports to the  Trust's  Board of  Trustees
concerning the operations of the Fund.

The Transfer  Agent receives an annual service fee for each account of the Fund,
based on the type of account.  For open retail  accounts,  the fee is a flat fee
ranging from $20.00 to $27.50 per account,  for open  wholesale  money funds the
fee is $32.50 per account, while for certain retirement accounts serviced on the
recordkeeping system of ADP, Inc., the fee is a flat fee up to $3.46 per account
(as of October  2006,  indexed to  inflation)  plus an asset  based fee of up to
0.25% of  average  net  assets.  1/12th of the  annual  service  charge for each
account is  charged  and  payable to the  Transfer  Agent each  month.  A fee is
charged for any account  which at any time during the month had a share  balance
in the  Fund.  Smaller  fees are also  charged  for  closed  accounts  for which
information  must be retained on the Transfer Agent's system for up to 18 months
after closing for tax reporting purposes.

Certain  out-of-pocket  expenses  incurred  by  the  Transfer  Agent,  including
expenses of printing and mailing  routine fund  disclosure  documents,  costs of
record retention and transaction  processing costs are reimbursed by the Fund or
are paid  directly  by the  Fund.  Certain  additional  out-of-pocket  expenses,
including costs of computer  hardware and software,  third party  record-keeping
and processing of proxy statements,  may only be reimbursed by the Fund with the
prior approval of the Fund's Board.

Effective April 1, 2007, DWS Scudder Investments Service Company is the Transfer
Agent for all classes of all DWS funds.


                                       38
<PAGE>

Pursuant to a sub-transfer  agency  agreement  between DWS-SISC and DST Systems,
Inc.  ("DST"),  DWS-SISC has delegated  certain transfer agent,  dividend paying
agent and  shareholder  servicing agent functions to DST. The costs and expenses
of such delegation are borne by DWS-SISC, not by the Fund.

Since the Fund commenced  operations on June __, 2008, the Fund has not incurred
any  transfer  agent  fee fees as of the date of this  Statement  of  Additional
Information.

The Fund, or the Advisor (including any affiliate of the Advisor),  or both, may
pay   unaffiliated   third  parties  for  providing   recordkeeping   and  other
administrative  services with respect to accounts of  participants in retirement
plans or other  beneficial  owners of Fund shares whose  interests are generally
held in an omnibus account.

Independent Registered Public Accounting Firm

_________________,  independent  registered public accounting firm, given on the
authority  of said firm as  experts  in  auditing  and  accounting,  audits  the
financial  statements  of the Fund and  provides  other  audit,  tax and related
services.  Shareholders  will receive  annual audited  financial  statements and
semi-annual unaudited financial statements.

Legal Counsel

Willkie Farr & Gallagher  LLP,  787 Seventh  Avenue,  New York,  New York 10019,
serves as legal counsel to the Fund.

Ropes & Gray, One International Place, Boston, Massachusetts 02110-2624,  serves
as counsel to the Independent Trustees to the Trust.

                             PORTFOLIO TRANSACTIONS

The Advisor is generally responsible for placing the orders for the purchase and
sale of portfolio  securities,  including  the  allocation  of  brokerage.  With
respect to those  funds for which a  sub-investment  advisor  manages the fund's
investments,  references in this section to the "Advisor" should be read to mean
RREEF and the sub-subadvisors or  sub-sub-subadvisor,  as applicable,  except as
noted below.

The  policy of the  Advisor  in  placing  orders  for the  purchase  and sale of
securities  for the Fund is to seek best  execution,  taking into  account  such
factors,   among  others,   as  price;   commission  (where   applicable);   the
broker-dealer's   ability  to  ensure  that  securities  will  be  delivered  on
settlement date; the willingness of the  broker-dealer to commit its capital and
purchase  a  thinly  traded   security  for  its  own  inventory;   whether  the
broker-dealer   specializes  in  block  orders  or  large  program  trades;  the
broker-dealer's  knowledge of the market and the security;  the  broker-dealer's
ability  to  maintain   confidentiality;   the   financial   condition   of  the
broker-dealer;   and  whether  the  broker-dealer  has  the  infrastructure  and
operational  capabilities to execute and settle the trade.  The Advisor seeks to
evaluate the overall  reasonableness  of brokerage  commissions with commissions
charged on comparable  transactions  and compares the brokerage  commissions (if
any)  paid by the Fund to  reported  commissions  paid by  others.  The  Advisor
routinely reviews commission rates,  execution and settlement services performed
and makes internal and external comparisons.

Commission  rates  on  transactions  in  equity  securities  on U.S.  securities
exchanges are subject to negotiation. Commission rates on transactions in equity
securities on foreign  securities  exchanges are generally fixed.  Purchases and
sales of  fixed-income  securities and certain  over-the-counter  securities are
effected  on  a  net  basis,  without  the  payment  of  brokerage  commissions.
Transactions  in  fixed  income  and  certain  over-the-counter  securities  are
generally  placed by the  Advisor  with the  principal  market  makers for these
securities  unless the Advisor  reasonably  believes more favorable  results are
available elsewhere.  Transactions with dealers serving as market makers reflect
the spread between the bid and asked prices.  Purchases of  underwritten  issues
will  include  an  underwriting  fee  paid  to  the  underwriter.  Money  market
instruments are normally purchased in principal  transactions  directly from the
issuer or from an underwriter or market maker.

                                       39
<PAGE>

It is  likely  that the  broker-dealers  selected  based  on the  considerations
described in this  section will include  firms that also sell shares of the Fund
to their  customers.  However,  the Advisor does not consider sales of shares of
the Fund as a factor in the  selection of  broker-dealers  to execute  portfolio
transactions  for the  Fund  and,  accordingly,  has  implemented  policies  and
procedures  reasonably designed to prevent its traders from considering sales of
shares of the Fund as a factor in the  selection  of  broker-dealers  to execute
portfolio transactions for the Fund.

The  Advisor  is  permitted  by  Section  28(e) of the 1934  Act,  when  placing
portfolio  transactions  for the  Fund,  to  cause  the  Fund  to pay  brokerage
commissions  in excess of that  which  another  broker-dealer  might  charge for
executing  the same  transaction  in  order to  obtain  research  and  brokerage
services if the Advisor  determines  that such  commissions  are  reasonable  in
relation to the overall services provided. The Advisor may from time to time, in
reliance on Section 28(e) of the 1934 Act, execute  portfolio  transactions with
broker-dealers  that  provide  research and  brokerage  services to the Advisor.
Consistent with the Advisor's policy  regarding best execution,  where more than
one  broker  is  believed  to be  capable  of  providing  best  execution  for a
particular  trade,  the  Advisor  may take into  consideration  the  receipt  of
research and brokerage  services in selecting the  broker-dealer  to execute the
trade.  Although certain research and brokerage services from broker-dealers may
be useful to the Fund and to the Advisor,  it is the opinion of the Advisor that
such  information only supplements its own research effort since the information
must still be analyzed,  weighed and reviewed by the Advisor's  staff.  Research
and  brokerage  services  received  from a  broker-dealer  may be  useful to the
Advisor in providing  services to clients  other than the Fund making the trade,
and not all such information is used by the Advisor in connection with the Fund.
Conversely,  such information provided to the Advisor by broker-dealers  through
which other clients of the Advisor effect securities  transactions may be useful
to the Advisor in providing services to the Fund.

Research and brokerage services provided by broker-dealers may include,  but are
not limited to,  information on the economy,  industries,  groups of securities,
individual   companies,   statistical   information,   accounting  and  tax  law
interpretations,  political developments, legal developments affecting portfolio
securities,  technical  market action,  pricing and appraisal  services,  credit
analysis,  risk measurement  analysis,  performance analysis and measurement and
analysis of corporate  responsibility issues.  Research is typically received in
the form of  written  reports,  access to  specialized  financial  publications,
telephone contacts and personal meetings with security analysts, but may also be
provided  in the form of access to  various  computer  software  and  associated
hardware, and meetings arranged with corporate and industry representatives.

The Advisor may also select  broker-dealers  and obtain from them  research  and
brokerage  services that are used in connection  with executing  trades provided
that such services are consistent  with  interpretations  under Section 28(e) of
the 1934 Act.  Typically,  these  services  take the form of  computer  software
and/or  hardware used by the Advisor to facilitate  trading  activity with those
broker-dealers.

Research and brokerage services may include products obtained from third parties
if the Advisor determines that such product or service constitutes brokerage and
research as defined in Section 28(e) and interpretations thereunder.  Currently,
it  is  the  Advisor's  policy  that  Sub-Advisors  may  not  execute  portfolio
transactions  on behalf of the Fund to obtain third party research and brokerage
services.  The  Advisor  may, in the future,  change  this  policy.  Regardless,
certain  Sub-Advisors may, as matter of internal policy, limit or preclude third
party research and brokerage services.

DIMA will  monitor  regulatory  developments  and market  practice in the use of
client  commissions to obtain research and brokerage services and may adjust its
portfolio transactions policies in response thereto.

Investment  decisions for the Fund and for other investment  accounts managed by
the  Advisor  are  made  independently  of each  other  in  light  of  differing
conditions. However, the same investment decision may be made for two or more of
such accounts. In such cases,  simultaneous  transactions are inevitable. To the
extent  permitted by law, the Advisor may aggregate the securities to be sold or
purchased for the Fund with those to be sold or purchased for other  accounts in
executing  transactions.  Purchases  or sales are then  averaged as to price and
commission  and  allocated  as to amount in a manner  deemed  equitable  to each
account.  While in some cases this practice  could have a detrimental  effect on
the price  paid or  received  by,  or on the size of the  position  obtained  or
disposed of for,  the Fund,  in other  cases it is believed  that the ability to
engage in volume transactions will be beneficial to the Fund.


                                       40
<PAGE>

DIMA and its affiliates and the Fund's management team manage other mutual funds
and separate accounts,  some of which use short sales of securities as a part of
its  investment  strategy.  The  simultaneous   management  of  long  and  short
portfolios creates potential conflicts of interest including the risk that short
sale activity could adversely affect the market value of the long positions (and
vice  versa),  the  risk  arising  from  sequential  orders  in long  and  short
positions,  and the risks associated with receiving  opposing orders at the same
time.

DIMA has adopted procedures that it believes are reasonably designed to mitigate
these  potential  conflicts  of interest.  Incorporated  in the  procedures  are
specific  guidelines  developed to ensure fair and  equitable  treatment for all
clients. DIMA and the investment team have established monitoring procedures,  a
protocol for supervisory reviews, as well as compliance oversight to ensure that
potential  conflicts of interest  relating to this type of activity are properly
addressed.

Deutsche Bank AG or one of its affiliates (or in the case of a Sub-Advisor,  the
Sub-Advisor  or one of its  affiliates)  may act as a  broker  for the  Fund and
receive brokerage commissions or other transaction-related compensation from the
Fund in the purchase and sale of securities,  options or futures contracts when,
in the judgment of the Advisor,  and in accordance with  procedures  approved by
the  Fund's  Board,  the  affiliated  broker  will be able to obtain a price and
execution at least as favorable as those obtained from other  qualified  brokers
and if,  in the  transaction,  the  affiliated  broker  charges  the Fund a rate
consistent  with that charged to  comparable  unaffiliated  customers in similar
transactions.

Since the Fund commenced  operations on June __, 2008, the Fund has not incurred
any  brokerage  commissions  as of the  date of  this  Statement  of  Additional
Information.

Securities  of Regular  Broker-Dealers.  The Fund is required  to  identify  any
securities  of its "regular  brokers or dealers" (as such term is defined in the
1940 Act) that the Fund has acquired  during its most recent fiscal year.  Since
the  Fund  commenced  operations  on June  __,  2008,  the Fund did not hold any
securities of its regular brokers or dealers as of the date of this Statement of
Additional Information.

Portfolio Turnover

The Advisor will purchase and sell  securities  without  regard to the length of
time the  security  has been held.  Accordingly,  the Fund's  rate of  portfolio
turnover may be substantial.

The Advisor  intends to purchase a given  security  whenever it believes it will
contribute  to the stated  objective of the Fund. In order to achieve the Fund's
investment objectives, the Advisor may sell a given security, no matter how long
or how short a period it has been held in the  portfolio,  and no matter whether
the sale is at a gain or at a loss, if the Advisor believes that the security is
not fulfilling its purpose,  either because, among other things, it did not live
up to the  Advisor's  expectations,  or because it may be replaced  with another
security  holding  greater  promise,  or  because  it has  reached  its  optimum
potential,  or because of a change in the circumstances of a particular  company
or industry or in general economic conditions, or because of some combination of
such reasons.

Because  investment  decisions are based on the anticipated  contribution of the
security in question to the Fund's objective, the Advisor believes that the rate
of  portfolio  turnover is  irrelevant  when it believes a change is in order to
achieve the objectives.  As a result,  the Fund's annual portfolio turnover rate
cannot be  anticipated  and may be higher than other  mutual  funds with similar
investment  objective.  Higher turnover would generate  correspondingly  greater
brokerage  commissions,  which  is a cost  the  Fund  pays  directly.  Portfolio
turnover also may affect the character of capital gains realized and distributed
by the Fund, if any,  because  short-term  capital gains are taxable as ordinary
income.

                        PURCHASE AND REDEMPTION OF SHARES

General Information

Policies and procedures affecting  transactions in Fund shares can be changed at
any  time  without  notice,  subject  to  applicable  law.  Transactions  may be
contingent  upon proper  completion of application  forms and other documents


                                       41
<PAGE>

by shareholders  and their receipt by the Fund's agents.  Transaction  delays in
processing (and changing account features) due to circumstances within or beyond
the  control  of the Fund and its  agents  may  occur.  Shareholders  (or  their
financial  service firms) are responsible for all losses and fees resulting from
bad checks,  cancelled orders or the failure to consummate transactions effected
pursuant to instructions reasonably believed to be genuine.

A  distribution  will be  reinvested in shares of the same Fund and class if the
distribution check is returned as undeliverable.

Orders  will be  confirmed  at a price  based on the net asset value of the Fund
next determined after receipt in good order by DWS-SDI of the order  accompanied
by payment.  However,  orders  received by dealers or other  financial  services
firms prior to the  determination  of net asset value and received in good order
by DWS-SDI prior to the  determination  of net asset value next determined after
receipt by DWS-SDI  will be  confirmed  at a price  based on the net asset value
("trade date").

Certificates. Share certificates will not be issued.

Use of Financial  Services  Firms.  Investment  dealers and other firms  provide
varying arrangements for their clients to purchase and redeem the Fund's shares,
including higher minimum investments,  and may assess transaction or other fees.
Firms may arrange  with their  clients for other  investment  or  administrative
services.  Such firms may independently  establish and charge additional amounts
to their  clients for such  services.  Firms also may hold the Fund's  shares in
nominee or street  name as agent for and on behalf of their  customers.  In such
instances,  the Fund's transfer agent, DWS Scudder  Investments  Service Company
("DWS-SISC" or the "Transfer  Agent"),  will have no information with respect to
or control over the accounts of specific  shareholders.  Such  shareholders  may
obtain access to their accounts and  information  about their accounts only from
their  firm.  Certain  of these  firms may  receive  compensation  from the Fund
through the  Shareholder  Service Agent for  record-keeping  and other  expenses
relating to these nominee accounts. In addition, certain privileges with respect
to the purchase and  redemption of shares or the  reinvestment  of dividends may
not be available  through such firms.  Some firms may  participate  in a program
allowing them access to their clients' accounts for servicing including, without
limitation,  transfers of  registration  and  dividend  payee  changes;  and may
perform functions such as generation of confirmation statements and disbursement
of cash  dividends.  Such firms,  including  affiliates of DWS-SDI,  may receive
compensation  from the Fund  through  the  Shareholder  Service  Agent for these
services.

The Fund will be deemed to have received a purchase or redemption  order when an
authorized  broker,  service  organization  or,  if  applicable,  an  authorized
designee,  accepts the order. Shares of the Fund may be purchased or redeemed on
any business  day at the net asset value next  determined  after  receipt of the
order,  in good order,  by the  Transfer  Agent.  Investors  who invest  through
authorized  brokers,  service  organizations or their designated  intermediaries
should submit purchase and redemption  orders directly to their broker,  service
organization or designated  intermediary.  The broker or intermediary may charge
you a transaction fee.

The Fund has authorized one or more financial  service  institutions,  including
certain   members   of  the  NASD  other   than  the   Distributor   ("financial
institutions"),  to accept purchase and redemption orders for the Fund's shares.
Such financial  institutions  may also designate  other parties,  including plan
administrator  intermediaries,  to accept purchase and redemption  orders on the
Fund's behalf.  Orders for purchases or redemptions  will be deemed to have been
received by the Fund when such financial  institutions or, if applicable,  their
authorized  designees  accept the orders.  Subject to the terms of the  contract
between the Fund and the financial institution, ordinarily orders will be priced
at the Fund's net asset value next computed  after  acceptance by such financial
institution or its authorized  designees and accepted by the Fund.  Further,  if
purchases or  redemptions  of the Fund's  shares are arranged and  settlement is
made  at  an  investor's   election  through  any  other  authorized   financial
institution, that financial institution may, at its discretion, charge a fee for
that  service.  The  Board of  Trustees  and the  Distributor,  also the  Fund's
principal  underwriter,  each has the right to limit the amount of purchases by,
and to refuse to sell to, any  person.  The  Trustees  and the  Distributor  may
suspend  or  terminate  the  offering  of shares of the Fund at any time for any
reason.

DWS-SDI has adopted an Incentive Plan (the "Plan") covering wholesalers that are
regional vice presidents  ("DWS Scudder  Wholesalers").  Generally,  DWS Scudder
Wholesalers  market shares of the DWS funds to financial  advisors,  who in turn
may  recommend  that  investors  purchase  shares of a DWS fund.  The Plan is an
incentive


                                       42
<PAGE>

program that combines a monthly incentive  component with a quarterly  strategic
bonus component. Under the Plan, DWS Scudder Wholesalers will receive a monetary
monthly incentive based on the amount of sales generated from their marketing of
the funds,  and that incentive will differ  depending on the product category of
the fund. Each fund is assigned to one of three product categories--"Strategic,"
"Tactical" or "all other funds"-taking into  consideration,  among other things,
the following criteria, where applicable:

o        The  Fund's  consistency  with DWS  Scudder's  branding  and  long-term
         strategy.
o        The Fund's competitive performance;
o        The Fund's Morningstar rating;
o        The length of time the  Fund's  Portfolio  Managers  have  managed  the
         Fund/Strategy
o        Market size for the fund category;
o        The Fund's size, including sales and redemptions of the Fund's shares;

This  information  and other factors are  presented to a committee  comprised of
representatives  from  various  groups  within  DWS  Scudder,  who  review  on a
quarterly basis the funds assigned to each product category described above, and
make any  changes to those  assignments  at that time.  No one  factor,  whether
positive or negative,  determines a fund's  placement in a given  category;  all
these  factors  together are  considered,  and the  designation  of funds in the
Strategic and Tactical categories represents  management's judgment based on the
above criteria.  In addition,  management may consider a fund's profile over the
course  of  several  review  periods  before  making  a change  to its  category
assignment.  These  category  assignments  will be posted  quarterly  to the DWS
funds' Web site at www.dws-scudder.com, approximately one month after the end of
each  quarter.  DWS Scudder  Wholesalers  receive the highest  compensation  for
Strategic funds, less for Tactical funds and the lowest for all other funds. The
level of compensation among these categories may differ significantly.

The prospect of receiving,  or the receipt of, additional  compensation by a DWS
Scudder  Wholesaler  under the Plan may provide an incentive to favor  marketing
the Strategic or Tactical funds over all other funds.  The Plan,  however,  will
not change the price that  investors  pay for shares of a fund.  The DWS Scudder
Compliance  Department  monitors DWS Scudder Wholesaler sales and other activity
in an effort to detect  unusual  activity  in the  context  of the  compensation
structure under the Plan.  However,  investors may wish to take the Plan and the
product category of the fund into account when considering  purchasing a fund or
evaluating any recommendations relating to fund shares.

Telephone  and  Electronic  Transaction  Procedures.  Shareholders  have various
telephone, Internet, wire and other electronic privileges available. The Fund or
its agents will not be liable for any losses,  expenses or costs  arising out of
fraudulent or unauthorized instructions pursuant to these privileges if the Fund
or its agents reasonably believe, based upon reasonable verification procedures,
that the instructions were genuine.  Verification  procedures  include recording
instructions,  requiring  certain  identifying  information  before  acting upon
instructions  and  sending  written  confirmations.  During  periods  when it is
difficult to contact the  Shareholder  Service Agent, it may be difficult to use
telephone, wire and other privileges.

QuickBuy and QuickSell. QuickBuy and QuickSell permits the transfer of money via
the Automated  Clearing House System (minimum $50 and maximum  $250,000) from or
to a shareholder's bank, savings and loan, or credit union account in connection
with the purchase or  redemption  of Fund shares.  Shares  purchased by check or
through  QuickBuy and QuickSell or Direct Deposit may not be redeemed under this
privilege  until  such  Shares  have been owned for at least 10  calendar  days.
QuickBuy and  QuickSell  cannot be used with  passbook  savings  accounts or for
certain tax-deferred plans.

Share  Pricing.  Purchases  will be filled at the net asset value per share next
computed after receipt of the application in good order.  The net asset value of
shares of each Fund is  calculated  at 4:00  p.m.  Eastern  time or the close of
business on each day the New York Stock  Exchange (the  "Exchange")  is open for
trading. Orders received after the close of regular trading on the Exchange will
be executed at the next  business  day's net asset value.  If the order has been
placed  by  a  member  of  FINRA,   other  than  the  Distributor,   it  is  the
responsibility  of the member  broker,  rather  than the Fund,  to  forward  the
purchase order to Transfer Agent in Kansas City by the close of regular  trading
on the Exchange.

                                       43
<PAGE>

Dividend  Payment  Option.   Investors  may  have  dividends  and  distributions
automatically   deposited  to  their  predesignated  bank  account  through  DWS
Scudder's Dividend Payment Option request form. Shareholders whose predesignated
checking  account of record is with a member bank of  Automated  Clearing  House
Network  (ACH) can have  income and  capital  gain  distributions  automatically
deposited to their  personal  bank account  usually  within three  business days
after the Fund pays its distribution. A Dividend Payment Option request form can
be obtained by visiting our Web site at:  www.dws-scudder.com  or calling  (800)
621-1048. Confirmation Statements will be mailed to shareholders as notification
that distributions have been deposited.

Tax-Sheltered   Retirement   Plans.  The  Shareholder   Service  Agent  provides
retirement plan services and documents and SDI can establish  investor  accounts
in any of the  following  types  of  retirement  plans:

o        403(b)(7)  Custodial  Accounts,  prototype  money purchase  pension and
         profit-sharing  plans.  Forms for existing plans are available  through
         the Shareholder Service Agent.

Additional fees and transaction policies and procedures may apply to such plans.
Investors  should  consult with their own tax  advisors  before  establishing  a
retirement plan.

Purchases

The Fund  reserves the right to withdraw all or any part of the offering made by
its Prospectus and to reject purchase orders for any reason.  Also, from time to
time, the Fund may  temporarily  suspend the offering of any class of its shares
to new investors. During the period of such suspension,  persons who are already
shareholders  of the Fund may be  permitted  to continue to purchase  additional
shares of such class and to have dividends reinvested.

To help the  government  fight the  funding of  terrorism  and money  laundering
activities,  federal law requires all financial  institutions to obtain,  verify
and record  information  that identifies  each person who opens an account.  For
more  information,  please see  "Policies  You Should  Know About" in the Fund's
Prospectuses.

The Fund may waive the investment minimum, if any, for purchases by a current or
former director or trustee of the DWS mutual funds, an employee,  the employee's
spouse or life  partner  and  children  or  step-children  age 21 or  younger of
Deutsche Bank or its affiliates,  or a sub-advisor to any fund in the DWS family
of funds, or a broker-dealer authorized to sell shares of the funds.

Financial Services Firms' Compensation. Banks and other financial services firms
may provide  administrative  services  related to order placement and payment to
facilitate transactions in shares of the Fund for their clients, and DWS-SDI may
pay  them a  transaction  fee up to the  level  of the  discount  or  commission
allowable or payable to dealers.

DWS-SDI may,  from time to time,  pay or allow to firms a 1%  commission  on the
amount  of  shares of the Fund sold  under  the  following  conditions:  (i) the
purchased  shares are held in a DWS  Scudder  IRA  account,  (ii) the shares are
purchased as a direct "roll over" of a distribution from a qualified  retirement
plan account  maintained on the subaccount  record keeping system maintained for
DWS-branded  plans  by  ADP,  Inc.  under  an  alliance  with  DWS-SDI  and  its
affiliates, (iii) the registered representative placing the trade is a member of
the   Executive   Council,   a  group  of  persons   designated  by  DWS-SDI  in
acknowledgment  of their  dedication to the employee  benefit plan area and (iv)
the purchase is not otherwise subject to a commission.

In  addition  to  the  discounts  or  commissions  described  herein  and in the
Prospectuses,  DWS-SDI may pay or allow  additional  discounts,  commissions  or
promotional  incentives,  in the form of cash,  to firms that sell shares of the
Fund. In some instances,  such amounts may be offered only to certain firms that
sell or are  expected to sell during  specified  time  periods  certain  minimum
amounts of shares of the Fund, or other funds underwritten by DWS-SDI.

Upon  notice to all  dealers,  DWS-SDI  may  re-allow  to dealers up to the full
applicable Class A sales charge during periods and for transactions specified in
such notice and such re-allowances may be based upon attainment of minimum sales
levels. During periods when 90% or more of the sales charge is re-allowed,  such
dealers  may be deemed to be  underwriters  as that term is  defined in the 1933
Act.


                                       44
<PAGE>

DWS-SDI may at its discretion  compensate  investment dealers or other financial
services  firms in  connection  with  the sale of Class A shares  of the Fund in
accordance  with the Large  Order  NAV  Purchase  Privilege  and one of the four
compensation schedules up to the following amounts:

<TABLE>
<CAPTION>
                    Compensation Schedule #1:                             Compensation Schedule #2:
            Retail Sales and DWS Scudder Flex Plan(1)                  DWS Scudder Retirement Plans(2)
            --------------------------------------                     ----------------------------
                                               As a Percentage of                              As a
                  Amount of                            Net          Amount of Shares    Percentage of Net
                 Shares Sold                       Asset Value            Sold             Asset Value
                 -----------                       -----------            ----             -----------

<S>                                                     <C>                 <C>                    <C>
$1 million to $3 million (equity funds)               1.00%          Over $3 million       0.00%-0.50%
$1 million - $3 million (fixed income funds)          0.85%
Over $3 million to $50 million                        0.50%                 --                   --
Over $50 million                                      0.25%                 --                   --
</TABLE>

                      Compensation Schedule #3:
                      DWS Scudder Choice Plan(3)
                      --------------------------
                Amount of                     As a Percentage of Net
               Shares Sold                         Asset Value
               -----------                         -----------

All amounts (equity funds)                            1.00%
All amounts (fixed income funds)                      0.85%

(1)      For purposes of determining the appropriate commission percentage to be
         applied to a particular sale under the foregoing schedule, DWS-SDI will
         consider the  cumulative  amount  invested by the purchaser in the Fund
         and other funds  listed  under  "Special  Features -- Class A Shares --
         Combined  Purchases,"  including  purchases  pursuant to the  "Combined
         Purchases,"  "Letter  of Intent"  and  "Cumulative  Discount"  features
         referred to below.

(2)      Compensation  Schedule 2 applies to employer sponsored employee benefit
         plans  using  the  OmniPlus   subaccount  record  keeping  system  made
         available  through  ADP,  Inc.  under an alliance  with DWS-SDI and its
         affiliates.

(3)      DWS-SDI compensates UBS Financial at a rate of 0.50%.

DWS-SDI will no longer advance the first year  distribution  fee and service fee
to firms for sales of Class C shares to employer  sponsored  benefit plans using
the OmniPlus  subaccount  record keeping system made available through ADP, Inc.
under an alliance with DWS-SDI and it affiliates.  DWS-SDI is compensated by the
Fund for services as distributor and principal underwriter for Class C shares.

Revenue Sharing

In light of recent  regulatory  developments,  the Advisor,  the Distributor and
their affiliates have undertaken to furnish certain additional information below
regarding  the  level  of  payments  made  by them to  selected  affiliated  and
unaffiliated  brokers,  dealers,  participating  insurance  companies  or  other
financial  intermediaries  ("financial  advisors") in  connection  with the sale
and/or  distribution  of  Fund  shares  or the  retention  and/or  servicing  of
investors and Fund shares ("revenue sharing").

The  Advisor,  the  Distributor  and/or  their  affiliates  may  pay  additional
compensation,  out of their own assets and not as an  additional  charge to each
Fund, to financial  advisors in connection with the sale and/or  distribution of
Fund shares or the retention and/or servicing of Fund investors and Fund shares.
Such revenue  sharing  payments are in addition to any  distribution  or service
fees  payable  under any Rule  12b-1 or  service  plan of any fund,  any  record
keeping/sub-transfer  agency/networking  fees  payable  by each Fund  (generally
through the  Distributor  or an  affiliate)  and/or the  Distributor  to certain
financial   advisors  for  performing  such  services  and  any  sales  charges,
commissions,   non-cash  compensation  arrangements  expressly  permitted  under
applicable  rules of FINRA or other  concessions  described  in the fee table or
elsewhere in the  Prospectuses or the SAI as payable to all financial  advisors.
For



                                       45
<PAGE>

example,  the Advisor,  the Distributor  and/or their  affiliates may compensate
financial  advisors for  providing  each Fund with "shelf  space" or access to a
third  party  platform  or fund  offering  list,  or  other  marketing  programs
including,   without  limitation,   inclusion  of  each  Fund  on  preferred  or
recommended sales lists,  mutual fund  "supermarket"  platforms and other formal
sales programs; granting the Distributor access to the financial advisor's sales
force;  granting the Distributor access to the financial  advisor's  conferences
and meetings;  assistance  in training and  educating  the  financial  advisor's
personnel; and, obtaining other forms of marketing support. The level of revenue
sharing payments made to financial advisors may be a fixed fee or based upon one
or more of the following factors:  gross sales,  current assets and/or number of
accounts of each Fund attributable to the financial advisor, the particular fund
or fund type or other  measures  as agreed to by the  Advisor,  the  Distributor
and/or their affiliates and the financial  advisors or any combination  thereof.
The amount of these payments is determined at the discretion of the Advisor, the
Distributor  and/or their affiliates from time to time, may be substantial,  and
may be different for different  financial  advisors  based on, for example,  the
nature of the services provided by the financial advisor.

The Advisor,  the  Distributor  and/or their  affiliates  currently make revenue
sharing  payments  from  their own  assets in  connection  with the sale  and/or
distribution of DWS Fund shares, or the retention and/or servicing of investors,
to financial  advisors in amounts that  generally  range from .01% up to .50% of
assets of the Fund serviced and  maintained by the  financial  advisor,  .10% to
..25% of sales of the Fund attributable to the financial  advisor,  a flat fee of
$12,500 up to $500,000,  or any  combination  thereof.  These amounts are annual
figures  typically  paid on a  quarterly  basis and are subject to change at the
discretion of the Advisor, the Distributor and/or their affiliates.  Receipt of,
or the prospect of receiving,  this additional compensation,  may influence your
financial advisor's recommendation of this Fund or of any particular share class
of the Fund. You should review your financial advisor's compensation  disclosure
and/or talk to your  financial  advisor to obtain more  information  on how this
compensation may have influenced your financial advisor's recommendation of this
Fund.

The Advisor,  the Distributor and/or their affiliates may also make such revenue
sharing  payments  to  financial  advisors  under the terms  discussed  above in
connection  with  the  distribution  of both  DWS  funds  and  non-DWS  funds by
financial  advisors to retirement plans that obtain record keeping services from
ADP, Inc. on the DWS Scudder branded  retirement plan platform (the  "Platform")
with the level of revenue  sharing  payments  being based upon sales of both the
DWS funds and the  non-DWS  funds by the  financial  advisor on the  Platform or
current  assets  of both  the DWS  funds  and the  non-DWS  funds  serviced  and
maintained by the financial advisor on the Platform.

As of the date  hereof,  each  Fund  has been  advised  that  the  Advisor,  the
Distributor  and their  affiliates  expect that the following firms will receive
revenue sharing payments at different points during the coming year as described
above:

Channel: Broker-Dealers and Financial Advisors

A G Edwards & Sons Inc.
AIG Advisors Group
Ameriprise
Cadaret, Grant & Co. Inc.
Capital Analyst, Incorporated
Citigroup Global Markets, Inc. (dba Smith Barney)
Commonwealth Equity Services, LLP (dba Commonwealth Financial Network)
Deutsche Bank Group
First Clearing/Wachovia Securities
HD Vest Investment Securities, Inc.
ING Group
John Hancock Distributors LLC
LaSalle Financial Services, Inc. (dba ABN Amro)
Linsco/Private Ledger Corp.
M.L. Stern & Co.
Marsh Insurance and Investment Company
Meridien Financial Group
Merrill Lynch, Pierce, Fenner & Smith Inc.
Morgan Stanley

                                       46
<PAGE>

Oppenheimer & Co., Inc.
Raymond James & Associates
Raymond James Financial Services
RBC Dain Rauscher, Inc
Securities America, Inc.
UBS Financial Services
Wells Fargo Investments, LLC

Channel: Cash Product Platform

Allegheny Investments LTD
Bank of New York (Hare & Co.)
Bear, Stearns Securities Corp.
Brown Brothers Harriman
Brown Investment Advisory & Trust Company
Cadaret Grant & Co.
Chicago Mercantile Exchange
D.A. Davidson & Company
Deutsche Bank Group
Emmett A. Larkin Company
Fiduciary Trust Co. - International
First Southwest Company
Huntleigh Securities
Lincoln Investment Planning
LPL Financial Services
Mellon Financial Markets LLC
Penson Financial Services
Pershing Choice Platform
ProFunds Distributors, Inc.
Ridge Clearing & Outsourcing Solutions
Romano Brothers and Company
SAMCO Capital Markets
Smith Moore & Company
Sungard Institutional Brokerage Inc.
US Bancorp
UBS
William Blair & Company

Channel: Third Party Insurance Platforms

Allstate Life Insurance Company of New York
Ameritas Life Insurance Group
American General Life Insurance Company
Annuity Investors Life Insurance Company
Columbus Life Insurance Company
Commonwealth Annuity and Life Insurance Company
Companion Life Insurance Company
Connecticut General Life Insurance Company
Farmers New World Life Insurance Company
Fidelity Security Life Insurance Company
First Allmerica Financial Life Insurance Company
First Great West Life and Annuity Company
Genworth Life Insurance Company of New York
Genworth Life and Annuity Insurance Company
Great West Life and Annuity Insurance Company
Hartford Life Insurance Company

                                       47
<PAGE>

Integrity Life Insurance Company
John Hancock Life Insurance companies
Kemper Investors Life Insurance Company
Lincoln Benefit Life Insurance Company
Lincoln Life & Annuity Company of New York
Lincoln National Life Insurance Company
Massachusetts Mutual Life Insurance Group
MetLife Group
Minnesota Life Insurance Company
Mutual of America Life Insurance Company
National Life Insurance Company
National Integrity Life Insurance Company
Nationwide Group
New York Life Insurance and Annuity Corporation
Phoenix Life Insurance Company
Protective Life Insurance
Provident Mutual Life Insurance
Prudential Insurance Company of America
Sun Life Group
Symetra Life Insurance Company
Transamerica Life Insurance Company
Union Central Life Insurance Company
United of Omaha Life Insurance Company
United Investors Life Insurance Company
Western Southern Life Assurance Company

Any additions,  modifications or deletions to the financial advisors  identified
above that have occurred since the date hereof are not reflected.

The Advisor,  the  Distributor  or their  affiliates  may enter into  additional
revenue sharing arrangements or change or discontinue existing arrangements with
financial advisors at any time without notice.

The  prospect  of  receiving,  or the  receipt  of  additional  compensation  or
promotional  incentives  described above by financial  advisors may provide such
financial advisors and/or their salespersons with an incentive to favor sales of
shares of the DWS Funds or a particular  DWS Fund over sales of shares of mutual
funds (or  non-mutual  fund  investments)  with  respect to which the  financial
advisor does not receive additional compensation or promotional  incentives,  or
receives  lower levels of additional  compensation  or  promotional  incentives.
Similarly,  financial advisors may receive different  compensation or incentives
that may influence  their  recommendation  of any particular  share class of the
Fund or of other funds. These payment arrangements, however, will not change the
price that an investor pays for Fund shares or the amount that the Fund receives
to invest on behalf of an investor and will not increase Fund expenses.  You may
wish to take  such  payment  arrangements  into  account  when  considering  and
evaluating  any  recommendations  relating to Fund shares and you should discuss
this matter with your  financial  advisor  and review your  financial  advisor's
disclosures.

Class A Purchases.  The public  offering  price of Class A shares for purchasers
choosing  the initial  sales  charge  alternative  is the net asset value plus a
sales charge, as set forth below.

                                       48
<PAGE>

<TABLE>
<CAPTION>
                                                                           Sales Charge
                                                                           ------------
                                                                                           Allowed to Dealers
                                             As a Percentage       As a Percentage of     as a Percentage of
Amount of Purchase                          of Offering Price*     Net Asset Value**         Offering Price
------------------                          ------------------     -----------------         --------------
<S>                                                  <C>                   <C>                    <C>
Less than $50,000                                   5.75%                 6.10%                  5.20%
$50,000 but less than $100,000                      4.50                  4.71                   4.00
$100,000 but less than $250,000                     3.50                  3.63                   3.00
$250,000 but less than $500,000                     2.60                  2.67                   2.25
$500,000 but less than $1 million                   2.00                  2.04                   1.75
$1 million and over                                 0.00***               0.00***                0.00****
</TABLE>

*        The offering price includes the sales charge.

**       Rounded to the nearest one-hundredth percent.

***      Redemption  of shares  may be subject to a  contingent  deferred  sales
         charge as discussed below.

****     Commission is payable by DWS-SDI as discussed below.

Class A  Quantity  Discounts.  An  investor  or the  investor's  dealer or other
financial  services  firm must notify the  Shareholder  Service Agent or DWS-SDI
whenever  a  quantity  discount  or  reduced  sales  charge is  applicable  to a
purchase.  In order to qualify  for a lower  sales  charge,  all orders  from an
organized  group will have to be placed  through a single  investment  dealer or
other firm and identified as originating from a qualifying purchaser.

Combined  Purchases.  The  Fund's  Class A shares may be  purchased  at the rate
applicable to the sales charge discount  bracket  attained by combining same day
investments in Class A shares of any DWS Funds that bear a sales charge.

Letter of Intent.  The reduced sales charges for Class A shares, as shown in the
Prospectuses,  also apply to the aggregate amount of purchases of Class A shares
of DWS Funds that bear a sales  charge made by any  purchaser  within a 24-month
period  under a written  Letter of Intent  ("Letter")  provided by DWS-SDI.  The
Letter,  which  imposes no  obligation  to purchase or sell  additional  Class A
shares,  provides  for a price  adjustment  depending  upon  the  actual  amount
purchased  within  such  period.  The Letter  provides  that the first  purchase
following  execution  of the  Letter  must be at least 5% of the  amount  of the
intended  purchase,  and that 5% of the amount of the intended purchase normally
will be held in escrow in the form of shares pending  completion of the intended
purchase.  If the total  investments under the Letter are less than the intended
amount and thereby  qualify only for a higher sales charge than  actually  paid,
the  appropriate  number of escrowed  shares are redeemed and the proceeds  used
toward  satisfaction  of the obligation to pay the increased  sales charge.  The
Letter  for  an  employer-sponsored  employee  benefit  plan  maintained  on the
subaccount  record keeping system available  through ADP, Inc. under an alliance
with DWS-SDI and its affiliates may have special provisions regarding payment of
any  increased  sales charge  resulting  from a failure to complete the intended
purchase under the Letter.  A shareholder  may include the value (at the maximum
offering price,  which is determined by adding the maximum applicable sales load
charged to the net asset  value) of all Class A shares of such DWS Funds held of
record as of the  initial  purchase  date under the  Letter as an  "accumulation
credit" toward the  completion of the Letter,  but no price  adjustment  will be
made on such shares.

Class A Cumulative Discount. Class A shares of the Fund may also be purchased at
the rate  applicable to the discount  bracket  attained by adding to the cost of
shares being purchased, the value of all Class A shares of DWS Funds that bear a
sales charge (computed at the maximum offering price at the time of the purchase
for which the discount is  applicable)  already  owned by the investor or his or
her immediate family member (including the investor's spouse or life partner and
children or stepchildren age 21 or younger).

For purposes of the Combined Purchases, Letter of Intent and Cumulative Discount
features  described above,  employer  sponsored employee benefit plans using the
Flex  subaccount  record  keeping  system  available  through ADP, Inc. under an
alliance with SDI and its affiliates may include: (a) Money Market Funds as "DWS
Funds", (b) all classes of shares of any DWS Fund and (c) the value of any other
plan investments,  such as guaranteed


                                       49
<PAGE>

investment  contracts and employer stock,  maintained on such subaccount  record
keeping  system.  Once  eligible  plan  assets  under this  provision  reach the
$1,000,000  threshold,  a later decline in assets below the $1,000,000 threshold
will not affect the plan's ability to continue to purchase Class A shares at net
asset value.

Class A NAV Sales. Class A shares may be sold at net asset value to:

(a)      a current or former  director  or trustee of  Deutsche or DWS family of
         funds;

(b)      an  employee  (including  the  employee's  spouse or life  partner  and
         children or  stepchildren  age 21 or  younger) of Deutsche  Bank or its
         affiliates or of a subadvisor to any fund in the DWS family of funds or
         of a  broker-dealer  authorized  to sell  shares of the Fund or service
         agents of the Fund;

(c)      certain  professionals  who  assist in the  promotion  of DWS family of
         funds  pursuant  to  personal  services  contracts  with  DWS-SDI,  for
         themselves or members of their families.  DWS-SDI in its discretion may
         compensate  financial  services firms for sales of Class A shares under
         this  privilege at a commission  rate of 0.50% of the amount of Class A
         shares purchased;

(d)      any trust, pension,  profit-sharing or other benefit plan for only such
         persons listed under the preceding paragraphs (a) and (b);

(e)      persons who purchase such shares  through bank trust  departments  that
         process  such  trades  through an  automated,  integrated  mutual  fund
         clearing program provided by a third party clearing firm;

(f)      selected  employees  (including  their  spouses  or life  partners  and
         children  or  stepchildren  age  21 or  younger)  of  banks  and  other
         financial services firms that provide  administrative  services related
         to order placement and payment to facilitate  transactions in shares of
         the Fund for their clients pursuant to an agreement with DWS-SDI or one
         of its  affiliates.  Only those employees of such banks and other firms
         who  as  part  of  their  usual  duties  provide  services  related  to
         transactions in Fund shares qualify;

(g)      unit  investment  trusts  sponsored  by Ranson &  Associates,  Inc. and
         unitholders of unit investment trusts sponsored by Ranson & Associates,
         Inc. or its predecessors through reinvestment programs described in the
         prospectuses of such trusts that have such programs;

(h)      through certain  investment  advisors  registered  under the Investment
         Advisers Act of 1940 and other  financial  services firms acting solely
         as  agent  for  their  clients,   that  adhere  to  certain   standards
         established  by DWS-SDI,  including a  requirement  that such shares be
         sold for the benefit of their  clients  participating  in an investment
         advisory program or agency commission  program under which such clients
         pay a fee to  the  investment  advisor  or  other  firm  for  portfolio
         management  or agency  brokerage  services.  Such  shares  are sold for
         investment  purposes and on the condition  that they will not be resold
         except through redemption or repurchase by the Fund;

(i)      employer  sponsored  employee  benefit plans using the Flex  subaccount
         recordkeeping system ("Flex Plans") made available through ADP under an
         alliance with DWS-SDI and its affiliates,  established prior to October
         1, 2003,  provided  that the Flex Plan is a  participant-directed  plan
         that has not less than 200 eligible employees;

(j)      investors investing $1 million or more, either as a lump sum or through
         the "Combined  Purchases," "Letter of Intent" and "Cumulative Discount"
         features referred to above (collectively, the "Large Order NAV Purchase
         Privilege"). The Large Order NAV Purchase Privilege is not available if
         another net asset value purchase privilege is available;

(k)      defined contribution investment only plans with a minimum of $1,000,000
         in plan assets regardless of the amount allocated to the DWS Funds;

In addition, Class A shares may be sold at net asset value in connection with:

                                       50
<PAGE>


(l)      the  acquisition  of the  assets  of or merger  or  consolidation  with
         another investment  company,  or to shareholders in connection with the
         investment or reinvestment  of income and capital gain  dividends,  and
         under other circumstances  deemed appropriate by DWS-SDI and consistent
         with regulatory requirements; and

(m)      a  direct  "roll  over"  of a  distribution  from a Flex  Plan  or from
         participants in employer sponsored employee benefit plans maintained on
         the OmniPlus  subaccount  record keeping system made available  through
         ADP, Inc. under an alliance with DWS-SDI and its affiliates  into a DWS
         Scudder IRA;

(n)      reinvestment of fund dividends and distributions;

(o)      exchanging  an  investment in Class A shares of another fund in the DWS
         family of funds for an investment in the Fund.

Class A shares also may be purchased at net asset value in any amount by members
of the plaintiff class in the proceeding known as Howard and Audrey Tabankin, et
al. v. Kemper  Short-Term  Global  Income Fund, et al., Case No. 93 C 5231 (N.D.
IL). This privilege is generally non-transferable and continues for the lifetime
of individual class members and for a ten-year period for  non-individual  class
members.  To make a  purchase  at net asset  value  under  this  privilege,  the
investor  must,  at the time of  purchase,  submit a  written  request  that the
purchase be processed at net asset value pursuant to this privilege specifically
identifying the purchaser as a member of the "Tabankin  Class." Shares purchased
under this privilege will be maintained in a separate account that includes only
shares  purchased  under  this  privilege.  For  more  details  concerning  this
privilege,  class members should refer to the Notice of (i) Proposed  Settlement
with Defendants;  and (ii) Hearing to Determine Fairness of Proposed Settlement,
dated  August 31,  1995,  issued in  connection  with the  aforementioned  court
proceeding.  For  sales of Fund  shares  at net  asset  value  pursuant  to this
privilege,  DWS-SDI  may in its  discretion  pay  investment  dealers  and other
financial services firms a concession,  payable quarterly,  at an annual rate of
up to 0.25% of net assets attributable to such shares maintained and serviced by
the firm.  A firm  becomes  eligible  for the  concession  based upon  assets in
accounts  attributable  to shares  purchased  under this  privilege in the month
after the month of purchase and the  concession  continues  until  terminated by
DWS-SDI.  The  privilege of  purchasing  Class A shares of the Fund at net asset
value under this  privilege is not available if another net asset value purchase
privilege also applies.

Class C Purchases. Class C shares of the Fund are offered at net asset value. No
initial sales charge is be imposed. Class C shares sold without an initial sales
charge  will  allow the full  amount of the  investor's  purchase  payment to be
invested in Class C shares for his or her account. Class C shares continue to be
subject to a contingent  deferred  sales charge of 1.00% (for shares sold within
one year of purchase) and Rule 12b-1 fees, as described in the fund's prospectus
and Statement of Additional Information.

Multi-Class  Suitability.  DWS-SDI  has  established  the  following  procedures
regarding the purchase of Class A and Class C shares. Orders to purchase Class C
shares  of  $500,000  or more  will be  declined  with the  exception  of orders
received  from firms acting for clients  whose shares will be held in an omnibus
account and employer-sponsored  employee benefit plans using the Flex subaccount
record keeping system ("Flex  System")  maintained by ADP under an alliance with
DWS-SDI and its affiliates ("DWS Scudder Flex Plans").

The following provisions apply to DWS Scudder Flex Plans.

a.       Class C Share DWS Scudder Flex Plans. Orders to purchase Class C shares
         for a  DWS  Scudder  Flex  Plan,  regardless  of  when  such  plan  was
         established  on the Flex  System,  will be invested  instead in Class A
         shares at net asset  value when the  combined  subaccount  value in DWS
         Funds or other eligible  assets held by the plan is $1,000,000 or more.
         This  provision  will be imposed for the first  purchase after eligible
         plan assets reach the $1,000,000  threshold.  A later decline in assets
         below the  $1,000,000  threshold  will not affect the plan's ability to
         continue to purchase Class A shares at net asset value.

b.       Class C Share DWS Scudder  Choice  Plans.  Orders to  purchase  Class C
         shares for a DWS Scudder Choice Plan that has been regularly purchasing
         Class C shares will be invested  instead in Class A shares at net asset
         value when the combined subaccount value in DWS Funds or other eligible
         assets held by the plan is


                                       51
<PAGE>

         $1,000,000 or more.  This  provision will be imposed for purchases made
         beginning in the month after  eligible plan assets reach the $1,000,000
         threshold.  In addition,  as a condition to being  permitted to use the
         Choice Plan  platform,  plans must agree  that,  within one month after
         eligible plan assets reach the $1,000,000 threshold, all existing Class
         C shares held in the plan will be  automatically  converted  to Class A
         shares.

The procedures  above do not reflect in any way the  suitability of a particular
class of shares for a particular investor and should not be relied upon as such.
A suitability  determination  must be made by investors  with the  assistance of
their financial representative.

Purchase of Institutional Class Shares.  Information on how to buy Institutional
Class shares is set forth in the section entitled "Buying and Selling Shares" in
the Fund's prospectus.  The following supplements that information.  The minimum
initial  investment for  Institutional  Class shares is $1,000,000.  The minimum
initial investment may be waived in certain  circumstances.  The minimum amounts
may be changed at any time in management's discretion.

Investors who invest through authorized brokers,  service organizations or their
designated  intermediaries should submit purchase and redemption orders directly
to their broker, service organization or designated intermediary.  The broker or
intermediary  may charge you a transaction  fee. The Fund will be deemed to have
received a purchase  or  redemption  order when an  authorized  broker,  service
organization  or, if  applicable,  an  authorized  designee,  accepts the order.
Shares of the Fund may be  purchased  or redeemed on any Business Day at the net
asset  value next  determined  after  receipt of the order,  in good  order,  by
DWS-SISC.

To sell shares in a retirement  account  other than an IRA, your request must be
made in writing,  except for exchanges to other eligible funds in the DWS family
of funds, which can be requested by phone or in writing.

To sell  shares by bank wire you will  need to sign up for these  services  when
completing your account application.

Automatic Investment Plan. A shareholder may purchase shares of the Fund through
an automatic investment program.  With the Direct Deposit Purchase Plan ("Direct
Deposit"), investments are made automatically (minimum $500 and maximum $250,000
for initial investments and a minimum of $50 and maximum $250,000 for subsequent
investments)  from the  shareholder's  account  at a bank,  savings  and loan or
credit union into the shareholder's  Fund account.  Termination by a shareholder
will become effective within thirty days after the Shareholder Service Agent has
received the request. The Fund may immediately  terminate a shareholder's Direct
Deposit  in the event  that any item is unpaid  by the  shareholder's  financial
institution.

Minimum Subsequent Investment Policies. For current shareholders of Class A or C
shares there is a $50 minimum investment  requirement for subsequent investments
in the fund. There is no minimum  subsequent  investment  requirement in Class A
shares for investments on behalf of  participants in certain  fee-based and wrap
programs offered through financial intermediaries approved by the Advisor. There
is no minimum subsequent investment required for Institutional Class Shares.

Payroll  Investment  Plans. A shareholder  may purchase  shares through  Payroll
Direct Deposit or Government  Direct  Deposit.  Under these  programs,  all or a
portion of a shareholder's  net pay or government check is invested each payment
period.  A shareholder may terminate  participation  in these programs by giving
written  notice  to  the  shareholder's   employer  or  government   agency,  as
appropriate. (A reasonable time to act is required.) The Fund is not responsible
for the  efficiency of the employer or  government  agency making the payment or
any financial institutions transmitting payments.

Expedited Purchase Procedures for Existing  Shareholders.  Shareholders of other
DWS Funds who have  submitted an account  application  and have  certified a tax
identification  number, clients having a regular investment counsel account with
the Advisor or its affiliates and members of their immediate families,  officers
and  employees  of the  Advisor  or of any  affiliated  organization  and  their
immediate  families,  members of FINRA, and banks may open an account by wire by
calling (800) 621-1048 for instructions. The investor must send a duly completed
and signed application to the Fund promptly.  A subsequent purchase order may be
placed by established  shareholders


                                       52
<PAGE>

(except by DWS Scudder Individual  Retirement Account (IRA), DWS Scudder Horizon
Plan, DWS Scudder Profit Sharing and Money Purchase  Pension Plans,  DWS Scudder
401(k) and DWS Scudder 403(b) Plan holders), members of FINRA, and banks.

It is our policy to offer purchase  privileges to current or former directors or
trustees of the Deutsche or DWS mutual funds,  employees,  their spouses or life
partners and children or step-children age 21 or younger of Deutsche Bank or its
affiliates  or a  sub-advisor  to any  fund  in the DWS  family  of  funds  or a
broker-dealer authorized to sell shares of the funds. Qualified individuals will
generally  be allowed to  purchase  shares in the class with the lowest  expense
ratio,  usually  the  Institutional  Class  shares.  If a fund  does  not  offer
Institutional  Class shares,  these  individuals  will be allowed to buy Class A
shares at NAV.  The fund also  reserves  the right to waive the minimum  account
balance  requirement for employee and director accounts.  Fees generally charged
to IRA accounts will be charged to accounts of employees and directors.

Redemptions

Redemption  Fee.  The Fund  will  impose  a  redemption  fee of 2% of the  total
redemption amount  (calculated at net asset value,  without regard to the effect
of any contingent deferred sales charge; any contingent deferred sales charge is
also assessed on the total redemption amount without regard to the assessment of
the 2% redemption fee) on all Fund shares  redeemed or exchanged  within 15 days
of buying them  (either by purchase or  exchange).  The  redemption  fee is paid
directly to the Fund, and is designed to encourage  long-term  investment and to
offset  transaction  and other costs  associated  with  short-term  or excessive
trading. For purposes of determining whether the redemption fee applies,  shares
held the longest  time will be treated as being  redeemed  first and shares held
the shortest time will be treated as being  redeemed last. The redemption fee is
applicable  to Fund  shares  purchased  either  directly  or through a financial
intermediary,   such  as  a  broker-dealer.   Transactions   through   financial
intermediaries  typically  are  placed  with the Fund on an  omnibus  basis  and
include  both  purchase  and sale  transactions  placed on  behalf  of  multiple
investors. These purchase and sale transactions are generally netted against one
another and placed on an aggregate  basis;  consequently  the  identities of the
individuals on whose behalf the  transactions are placed generally are not known
to the Fund.  For this  reason,  the Fund has  undertaken  to  notify  financial
intermediaries  of their  obligation  to assess the  redemption  fee on customer
accounts  and to collect  and remit the  proceeds to the Fund.  However,  due to
operational   requirements,   the  intermediaries'   methods  for  tracking  and
calculating the fee may be inadequate or differ in some respects from the Fund.

General.  Policies and procedures  affecting  transactions in fund shares can be
changed at any time without notice,  subject to applicable law. Transactions may
be contingent upon proper completion of application forms and other documents by
shareholders  and their  receipt by the  Fund's  agents.  Transaction  delays in
processing (and changing account features) due to circumstances within or beyond
the  control  of the Fund and its  agents  may  occur.  Shareholders  (or  their
financial  service firms) are responsible for all losses and fees resulting from
bad checks,  cancelled orders or the failure to consummate transactions effected
pursuant to instructions reasonably believed to be genuine.

In addition,  the fund reserves the right to suspend or postpone  redemptions as
permitted  pursuant  to Section  22(e) of the  Investment  Company  Act of 1940.
Generally, those circumstances are when 1) the New York Stock Exchange is closed
other than  customary  weekend or holiday  closings;  2) trading on the New York
Stock Exchange is restricted; 3) an emergency exists which makes the disposal of
securities owned by a fund or the fair  determination of the value of the fund's
net assets not  reasonably  practicable;  or 4) the SEC,  by order,  permits the
suspension of the right of redemption.  Redemption  payments by wire may also be
delayed  in the event of a  non-routine  closure  of the  Federal  Reserve  wire
payment system.

A  request  for  repurchase  (confirmed  redemption)  may be  communicated  by a
shareholder  through a  financial  services  firm to  DWS-SDI,  which firms must
promptly submit orders to be effective.

Redemption  requests  must be  unconditional.  Redemption  requests (and a stock
power for certificated  shares) must be duly endorsed by the account holder.  As
specified  in  the  prospectus,  signatures  may  need  to  be  guaranteed  by a
commercial bank, trust company,  savings and loan  association,  federal savings
bank,  member  firm  of  a  national  securities  exchange  or  other  financial
institution  permitted by SEC rule.  Additional  documentation  may be required,

                                       53
<PAGE>

particularly  from   institutional  and  fiduciary  account  holders,   such  as
corporations,  custodians  (e.g.,  under the Uniform  Transfers  to Minors Act),
executors, administrators, trustees or guardians.

If the proceeds of the  redemption  (prior to the  imposition of any  contingent
deferred  sales charge) are $100,000 or less and the proceeds are payable to the
shareholder of record at the address of record,  normally a telephone request or
a written  request by any one account  holder  without a signature  guarantee is
sufficient for  redemptions by individual or joint account  holders,  and trust,
executor  and  guardian  account  holders,  provided  the  trustee,  executor or
guardian  is named in the  account  registration.  Other  institutional  account
holders may  exercise  this special  privilege of redeeming  shares by telephone
request or  written  request  without  signature  guarantee  subject to the same
conditions as individual account holders,  provided that this privilege has been
pre-authorized by the institutional account holder by written instruction to the
Shareholder Service Agent with signatures guaranteed.  This privilege may not be
used to  redeem  shares  held in  certificated  form  and may not be used if the
shareholder's account has had an address change within 15 days of the redemption
request.

Wires.  Delivery of the proceeds of a wire redemption of $250,000 or more may be
delayed by the Fund for up to seven days if the Fund or the Shareholder  Service
Agent deems it appropriate under then-current market conditions.  The ability to
send wires is limited by the business hours and holidays of the firms  involved.
The Fund is not responsible for the efficiency of the federal wire system or the
account  holder's  financial  services  firm or  bank.  The  account  holder  is
responsible  for any charges  imposed by the account  holder's  firm or bank. To
change the  designated  account  to receive  wire  redemption  proceeds,  send a
written request to the Fund Shareholder Service Agent with signatures guaranteed
as described above or contact the firm through which Fund shares were purchased.

Automatic  Withdrawal Plan. The owner of $5,000 or more of a class of the Fund's
shares at the  offering  price (net  asset  value  plus,  in the case of Class A
shares,  the initial  sales charge) may provide for the payment from the owner's
account of any  requested  dollar amount to be paid to the owner or a designated
payee monthly,  quarterly,  semiannually or annually. The $5,000 minimum account
size is not applicable to IRAs. The minimum periodic payment is $50. The maximum
annual rate at which  shares,  subject to CDSC may be redeemed is 12% of the net
asset value of the account. Shares are redeemed so that the payee should receive
payment  approximately  the first of the month.  Investors  using the  Automatic
Withdrawal Plan must reinvest Fund distributions.

Non-retirement  plan shareholders may establish an Automatic  Withdrawal Plan to
receive monthly,  quarterly or periodic  redemptions from his or her account for
any designated amount of $50 or more.  Shareholders may designate which day they
want the automatic withdrawal to be processed. The check amounts may be based on
the redemption of a fixed dollar amount, fixed share amount,  percent of account
value or declining  balance.  The Automatic  Withdrawal Plan provides for income
dividends  and  capital  gains  distributions,  if  any,  to  be  reinvested  in
additional  shares.  Shares are then  liquidated  as  necessary  to provide  for
withdrawal  payments.  Since the  withdrawals  are in  amounts  selected  by the
investor and have no relationship to yield or income,  payments  received cannot
be  considered  as  yield  or  income  on  the   investment  and  the  resulting
liquidations may deplete or possibly  extinguish the initial  investment and any
reinvested dividends and capital gains distributions.  Any such requests must be
received  by the Fund's  transfer  agent ten days prior to the date of the first
automatic withdrawal. An Automatic Withdrawal Plan may be terminated at any time
by the  shareholder,  the  Trust or its  agent on  written  notice,  and will be
terminated when all Shares of the Fund under the Automatic  Withdrawal Plan have
been  liquidated  or upon  receipt  by the  Trust  of  notice  of  death  of the
shareholder.

The purchase of Class A shares while  participating  in a systematic  withdrawal
plan will  ordinarily be  disadvantageous  to the investor  because the investor
will be paying a sales  charge on the  purchase  of shares at the same time that
the investor is redeeming shares upon which a sales charge may have already been
paid.  Therefore,  the Fund will not knowingly permit additional  investments of
less  than  $2,000  if  the  investor  is at the  same  time  making  systematic
withdrawals.

Contingent  Deferred Sales Charge (CDSC).  The following example will illustrate
the operation of the CDSC.  Assume that an investor  makes a single  purchase of
$10,000 of the Fund's  Class C shares and that 16 months  later the value of the
shares has grown by $1,000  through  reinvested  dividends  and by an additional
$1,000 of share appreciation to a total of $12,000. If the investor were then to
redeem the entire  $12,000 in share  value,  the CDSC would be payable only with
respect to $10,000  because  neither the $1,000 of reinvested  dividends nor the
$1,000 of share  appreciation  is subject to the charge.  The charge would be at
the rate of 3.00%  ($300)  because it was in the second year after the  purchase
was made.


                                       54
<PAGE>

The rate of the CDSC is  determined  by the length of the  period of  ownership.
Investments  are tracked on a monthly  basis.  The period of ownership  for this
purpose  begins the first day of the month in which the order for the investment
is received.  For example, an investment made in March of the year of investment
will be eligible for the second  year's  charge if redeemed on or after March of
the following  year. In the event no specific  order is requested when redeeming
shares  subject  to a  CDSC,  the  redemption  will be made  first  from  shares
representing reinvested dividends and then from the earliest purchase of shares.
DWS-SDI  receives  any  CDSC  directly.  The  charge  will not be  imposed  upon
redemption of reinvested dividends or share appreciation.

The Class A CDSC will be waived in the event of:

(a)      redemptions  by  a   participant-directed   qualified  retirement  plan
         described in Code Section 401(a), a participant-directed  non-qualified
         deferred   compensation  plan  described  in  Code  Section  457  or  a
         participant-directed   qualified  retirement  plan  described  in  Code
         Section 403(b)(7) which is not sponsored by a K-12 school district;

(b)      redemptions  by  employer-sponsored  employee  benefit  plans using the
         subaccount record keeping system made available through ADP, Inc. under
         an alliance with DWS-SDI and its affiliates;

(c)      redemption  of shares of a  shareholder  (including a registered  joint
         owner) who has died or is disabled (under certain circumstances);

(d)      redemption  of shares of a  shareholder  (including a registered  joint
         owner) who after purchase of the shares being redeemed  becomes totally
         disabled  (as  evidenced  by a  determination  by  the  federal  Social
         Security Administration);

(e)      redemptions under the Fund's Automatic  Withdrawal Plan at a maximum of
         12% per year of the net asset value of the account;

(f)      redemptions  of  shares  whose  dealer  of  record  at the  time of the
         investment  notifies  DWS-SDI that the dealer waives the  discretionary
         commission applicable to such Large Order NAV Purchase; and

(g)      redemptions for certain loan advances,  hardship  provisions or returns
         of excess contributions from retirement plans.

The Class C CDSC will be waived  for the  circumstances  set forth in items (b),
(c), (d), (e) and (g) for Class A shares and for the  circumstances set forth in
items (h) and (i) for Class B shares. In addition, this CDSC will be waived for:

(h)      redemption  of shares by an employer  sponsored  employee  benefit plan
         that offers  funds in addition to DWS Funds and whose  dealer of record
         has waived the  advance of the first year  administrative  service  and
         distribution  fees applicable to such shares and agrees to receive such
         fees quarterly; and

(i)      redemption  of  shares  purchased  through  a  dealer-sponsored   asset
         allocation  program  maintained  on an  omnibus  record-keeping  system
         provided  the dealer of record had waived the advance of the first year
         administrative services and distribution fees applicable to such shares
         and has agreed to receive such fees quarterly.

In-kind  Redemptions.  The Fund  reserves  the  right to honor any  request  for
redemption or repurchase  by making  payment in whole or in part in  securities.
These  securities will be chosen by the Fund and valued as they are for purposes
of computing  the Fund's net asset value.  A shareholder  may incur  transaction
expenses in converting these securities to cash.

                                       55
<PAGE>

Exchanges

Shareholders  may request a taxable  exchange of their  shares for shares of the
corresponding  class of other DWS Funds  without  imposition  of a sales charge,
subject to the provisions  below. For purposes of calculating any CDSC,  amounts
exchanged retain their original cost and purchase date.

Shares of money  market  funds that were  acquired  by purchase  (not  including
shares acquired by dividend  reinvestment)  are subject to the applicable  sales
charge on exchange.  Certain series of DWS Target Fund are available on exchange
only during the offering  period for such series as described in the  applicable
prospectus.  Tax Free Money Fund -- Investment  Class, NY Tax-Free Money Fund --
Investment Class,  Treasury Money Fund -- Investment Class, Money Market Fund --
Investment  Class,  Cash  Management  Fund  Institutional,  Cash  Reserves  Fund
Institutional,  Treasury Money Fund -- Institutional  Class,  Cash Reserve Fund,
Inc. Prime Series,  Tax-Exempt  California Money Market Fund, Cash Account Trust
and Investors  Cash Trust are available on exchange but only through a financial
services  firm having a services  agreement  with DWS-SDI.  All exchanges  among
money  funds  must  meet   applicable   investor   eligibility   and  investment
requirements.  Exchanges  may only be made for funds that are available for sale
in the shareholder's state of residence.  Currently, Tax-Exempt California Money
Market Fund is available for sale only in California.

Shareholders  must obtain  prospectuses of the fund or funds they are exchanging
into from dealers,  other firms or DWS-SDI.  Exchanges are taxable  transactions
for federal income tax purposes.

Automatic Exchange Plan. The owner of $1,000 or more of any class of shares of a
DWS Fund may  authorize  the  automatic  exchange  of a  specified  amount  ($50
minimum) of such  shares for shares of the same class of another  such DWS Fund.
Exchanges  will  be  made  automatically  until  the  shareholder  or  the  Fund
terminates  the  privilege.  Exchanges  are subject to the terms and  conditions
described above.

                                    DIVIDENDS

The Fund intends to follow the practice of distributing substantially all of its
investment  company  taxable  income,  which includes any excess of net realized
short-term  capital gains over net realized  long-term capital losses.  The Fund
may follow the  practice  of  distributing  the  entire  excess of net  realized
long-term capital gains over net realized  short-term  capital losses.  However,
the Fund may retain all or part of such gain for reinvestment,  after paying the
related federal taxes for which  shareholders may then be able to claim a credit
against their federal income tax liability.  If the Fund does not distribute the
amount of capital gain and/or  ordinary  income required to be distributed by an
excise tax  provision  of the  Internal  Revenue  Code of 1986,  as amended (the
"Code"),  the Fund may be subject to that excise tax. In certain  circumstances,
the Fund may determine that it is in the interest of  shareholders to distribute
less than the required amount.

The  Fund  intends  to pay  distributions  of  substantially  all of its  income
annually.  Any  dividends or capital  gains  distributions  declared in October,
November  or  December  with a record  date in such a month and paid  during the
following  January  will be  treated  by  shareholders  for  federal  income tax
purposes as if received on December 31 of the calendar year declared.

Dividends  paid by the Fund with  respect to each  class of its  shares  will be
calculated in the same manner, at the same time and on the same day.

The level of income  dividends  per share (as a  percentage  of net asset value)
will be lower for Class C shares than for Class A shares  primarily  as a result
of the distribution services fee applicable to Class C shares.  Distributions of
capital gains, if any, will be paid in the same amount for each class.

Income and capital gain  distributions,  if any, of the Fund will be credited to
shareholder accounts in full and fractional shares of the same class of the Fund
at net asset value on the reinvestment  date,  except that, upon written request
to the Shareholder  Service Agent, a shareholder may select one of the following
options:

1.       To receive income and short-term capital gain distributions in cash and
         long-term capital gain distributions in shares of the same class at net
         asset value; or


                                       56
<PAGE>

2.       To receive income and capital gain distributions in cash.

Dividends  will be  reinvested  in shares of the same  class of the Fund  unless
shareholders  indicate in writing  that they wish to receive  them in cash or in
shares  of other  DWS  Funds  with  multiple  classes  of shares or DWS Funds as
provided in the prospectus. See "Combined Purchases" for a listing of such other
funds.  To use this  privilege of  investing  dividends of the Fund in shares of
another DWS Fund,  shareholders  must maintain a minimum account value of $1,000
in the Fund  distributing the dividends.  The Fund will reinvest dividend checks
(and  future  dividends)  in shares  of that  same Fund and class if checks  are
returned as undeliverable.  Dividends and other distributions of the Fund in the
aggregate  amount of $10 or less are  automatically  reinvested in shares of the
Fund  unless the  shareholder  requests  that such  policy not be applied to the
shareholder's account.

If an investment is in the form of a retirement  plan, all dividends and capital
gains distributions must be reinvested into the shareholder's account.

If  a  shareholder   has  elected  to  reinvest  any   dividends   and/or  other
distributions,  such  distributions  will be  made in  shares  of the  Fund  and
confirmations will be mailed to the shareholder.  If a shareholder has chosen to
receive cash, a check will be sent.  Distributions of investment company taxable
income and net realized  capital  gains are  taxable,  whether made in shares or
cash.

Each  distribution  is  accompanied  by a  brief  explanation  of the  form  and
character of the  distribution.  The  characterization  of distributions on such
correspondence may differ from the characterization for federal tax purposes. In
January of each year,  the Fund issues to each  shareholder  a statement  of the
federal income tax status of all distributions in the prior calendar year.

The Fund may at any time vary its foregoing dividend  practices and,  therefore,
reserves  the  right  from  time to time to  either  distribute  or  retain  for
reinvestment  such of its net  investment  income  and  its net  short-term  and
long-term  capital  gains as its  Board  determines  appropriate  under the then
current circumstances.  In particular,  and without limiting the foregoing,  the
Fund may make additional  distributions of net investment income or capital gain
net income in order to satisfy the minimum distribution  requirements  contained
in the Code.

                                      TAXES

The following is intended to be a general  summary of certain federal income tax
consequences  of  investing  in the  Fund.  It is  not  intended  as a  complete
discussion  of all such  consequences,  nor  does it  purport  to deal  with all
categories of investors.  Investors are therefore  advised to consult with their
tax advisors  before making an  investment in the Fund.  The summary is based on
the laws in effect on the date of this statement of additional  information  and
existing judicial and administrative  interpretations  thereof, all of which are
subject to change, possibly with retroactive effect.

The Fund has  elected to be  treated as a  regulated  investment  company  under
Subchapter M of the Code and has qualified as such since its inception. The Fund
intends to continue  to so qualify in each  taxable  year as required  under the
Code in order to avoid payment of federal income tax at the Fund level. In order
to  qualify  as a  regulated  investment  company,  the Fund must  meet  certain
requirements  regarding  the source of its income,  the  diversification  of its
assets, and the distribution of its income:

(a)      derive at least 90% of its gross  income for each taxable year from (i)
         dividends, interest, payments with respect to certain securities loans,
         and gains from the sale or other  disposition  of stock,  securities or
         foreign currencies, or other income (including but not limited to gains
         from options,  futures,  or forward  contracts) derived with respect to
         its business of investing in such stock, securities,  or currencies and
         (ii) net income  derived from interests in "qualified  publicly  traded
         partnerships"  (i.e.,  partnerships  that are traded on an  established
         securities  market  or  tradable  on a  secondary  market,  other  than
         partnerships that derive 90% of their income from interest,  dividends,
         capital gains and other traditional permitted mutual fund income);

(b)      The Fund  must  diversify  its  holdings  so  that,  at the end of each
         quarter of its taxable  year,  (i) at least 50% of the market  value of
         the  Fund's  assets  is  represented  by  cash  and  cash  items,  U.S.
         government   securities,


                                       57
<PAGE>

         securities of other regulated investment companies and other securities
         limited in respect  of any one  issuer of such  other  securities  to a
         value not greater  than 5% of the value of the Fund's  total assets and
         to not  more  than 10% of the  outstanding  voting  securities  of such
         issuer,  and (ii)  not more  than  25% of the  value of its  assets  is
         invested in the securities (other than those of the U.S.  Government or
         other regulated investment companies) of any one issuer, of two or more
         issuers of which 20% or more of the voting  securities  are held by the
         Fund and which are engaged in the same,  similar,  or related trades or
         businesses  or in the  securities  of one or  more  qualified  publicly
         traded partnerships.

(c)      The Fund is required to distribute to its  shareholders at least 90% of
         its taxable and tax-exempt net investment  income (including the excess
         of net short-term  capital gain over net long-term  capital losses) and
         generally  is not  subject to federal  income tax to the extent that it
         distributes  annually  such  net  investment  income  and net  realized
         capital gains in the manner required under the Code.

Fund  investments  in  partnerships,  including  in  qualified  publicly  traded
partnerships,  may result in the Fund's being subject to state, local or foreign
income, franchise or withholding tax liabilities.

If for any taxable year the Fund does not qualify for the special federal income
tax treatment afforded regulated investment companies, all of its taxable income
will be subject to federal  income tax at regular  corporate  rates (without any
deduction for distributions to its  shareholders),  and all  distributions  from
earnings and profits,  including any  distributions of net tax-exempt income and
net  long-term  capital  gains,  would be taxable to  shareholders  as  ordinary
income.  Such  distributions  would be eligible  (i) to be treated as  qualified
dividend  income in the case of  shareholders  taxed as individuals and (ii) for
the  dividends  received  deduction  in the case of corporate  shareholders.  In
addition,  the  Fund  could be  required  to  recognize  unrealized  gains,  pay
substantial  taxes  and  interest  and  make  substantial  distributions  before
requalifying  as a regulated  investment  company  that is accorded  special tax
treatment.

The Fund is subject to a 4%  nondeductible  excise tax on amounts required to be
but that are not distributed  under a prescribed  formula.  The formula requires
payment to shareholders during a calendar year of distributions  representing at
least 98% of the Fund's  taxable  ordinary  income for the calendar  year and at
least 98% of the excess of its capital gains over capital losses realized during
the one-year  period  ending  October 31 (in most cases) of such year as well as
amounts  that were  neither  distributed  nor taxed to the Fund during the prior
calendar year.  Although the Fund's  distribution  policies  should enable it to
avoid  excise tax  liability,  the Fund may retain  (and be subject to income or
excise tax on) a portion of its capital gain or other income if it appears to be
in the interest of the Fund.

Taxation of Fund  Distributions.  Distributions  from the Fund generally will be
taxable to shareholders as ordinary income to the extent derived from investment
income and net  short-term  capital  gains.  Distributions  of net capital gains
(that is, the excess of net gains from the sale of capital assets held more than
one year over net losses from the sale of capital  assets held for not more than
one year)  properly  designated  as capital  gain  dividends  will be taxable to
shareholders as long-term capital gain, regardless of how long a shareholder has
held the shares in the Fund.

Long-term  capital gain rates  applicable to individuals  have been  temporarily
reduced--in  general,  to 15% with a lower rate applying to taxpayers in the 10%
and 15% rate brackets--for taxable years beginning before January 1, 2011.

For taxable years beginning on or before December 31, 2010,  "qualified dividend
income"  received  by an  individual  will be taxed at the rates  applicable  to
long-term capital gain. Qualified dividend income does not include interest from
fixed-income securities.  In order for some portion of the dividends received by
the Fund shareholder to be qualified dividend income, the Fund must meet holding
period  and  other   requirements   with   respect   to  some   portion  of  the
dividend-paying  stocks in its portfolio and the  shareholder  must meet holding
period and other requirements with respect to the Fund's shares. A dividend will
not be treated as qualified  dividend  income (at either the Fund or shareholder
level) (1) if the  dividend is received  with respect to any share of stock held
for fewer than 61 days during the 121-day period  beginning on the date which is
60 days before the date on which such share becomes  ex-dividend with respect to
such dividend (or, in the case of certain  preferred  stock,  91 days during the
181-day period  beginning 90 days before such date),  (2) to the extent that the
recipient is under an obligation (whether pursuant to a short sale or otherwise)
to make related payments with respect to positions in  substantially  similar or
related  property,  or (3) if the recipient  elects to have the dividend  income
treated as investment  income for purposes of the


                                       58
<PAGE>

limitation on deductibility of investment interest. In order for a dividend paid
by a foreign corporation to constitute  "qualified dividend income," the foreign
corporation must (1) be eligible for the benefits of a comprehensive  income tax
treaty with the United  States (or the stock on which the  dividend is paid must
be readily tradable on an established  securities  market in the United States),
and (2) not be  treated  as a  passive  foreign  investment  company.  Qualified
dividend  income  does  not  include  interest  from  fixed-income   securities.
Dividends  received by the Fund from a REIT may be treated as qualified dividend
income only to the extent the dividends are  attributable to qualified  dividend
income received by such REIT.

In  general,  distributions  of  investment  income  designated  by a  regulated
investment  company as derived from qualified dividend income will be treated as
qualified dividend income by a shareholder taxed as an individual,  provided the
shareholder meets the holding period and other requirements described above with
respect to the Fund's shares. If the aggregate  qualified  dividends received by
the Fund during any taxable year are 95% or more of its gross income  (excluding
net long-term  capital gain over net short-term  capital loss), then 100% of the
Fund's dividends (other than properly designated capital gain dividends) will be
eligible to be treated as qualified dividend income. For this purpose,  the only
gain included in the term "gross income" is the excess of net short-term capital
gain over net long-term capital loss.

Capital gains  distributions  may be reduced if Fund capital loss  carryforwards
are available.

All  distributions  by the Fund result in a reduction  in the net asset value of
the Fund's  shares.  Should a  distribution  reduce the net asset  value below a
shareholder's cost basis, such distribution would nevertheless be taxable to the
shareholder as ordinary income or capital gain as described above,  even though,
from an investment standpoint, it may constitute a partial return of capital. In
particular,  investors  should be careful to consider  the tax  implications  of
buying  shares just prior to a  distribution.  The price of shares  purchased at
that time includes the amount of the forthcoming distribution.  Those purchasing
just prior to a  distribution  will receive a partial return of capital upon the
distribution, which will nevertheless be taxable to them.

Under current law, the Fund serves to block  unrelated  business  taxable income
("UBTI") from being realized by its tax-exempt shareholders. Notwithstanding the
foregoing,  a  tax-exempt  shareholder  could  realize  UBTI  by  virtue  of its
investment in the Fund if shares in the Fund constitute  debt-financed  property
in the hands of the  tax-exempt  shareholder  within the meaning of Code Section
514(b). Certain types of income received by the Fund from real estate investment
trusts ("REITs"),  real estate mortgage investment conduits ("REMICs"),  taxable
mortgage pools or other  investments may cause the Fund to designate some or all
of its  distributions as "excess  inclusion  income." To Fund  shareholders such
excess  inclusion  income may (1) constitute  taxable income,  as UBTI for those
shareholders  who would  otherwise be tax-exempt  such as individual  retirement
accounts,  401(k) accounts,  Keogh plans,  pension plans and certain  charitable
entities;  (2) not be offset against net operating losses for tax purposes;  (3)
not be eligible for reduced US withholding for non-US shareholders even from tax
treaty  countries;  and (4)  cause  the  Fund to be  subject  to tax if  certain
"disqualified organizations" as defined by the Code are Fund shareholders.

Sale or  Redemption of Shares.  The sale,  exchange or redemption of Fund shares
may give rise to a gain or loss.  In general,  any gain or loss  realized upon a
taxable  disposition of shares will be treated as long-term capital gain or loss
if the shares have been held for more than one year. Otherwise, the gain or loss
on the taxable  disposition of Fund shares will be treated as short-term capital
gain or loss.  However,  any loss realized upon a taxable  disposition of shares
held  for six  months  or  less  will  be  treated  as  long-term,  rather  than
short-term,  to the extent of any long-term capital gain distributions  received
(or deemed  received) by the  shareholder  with respect to the shares.  All or a
portion of any loss realized upon a taxable  disposition  of Fund shares will be
disallowed  if other  substantially  identical  shares of the Fund are purchased
within 30 days before or after the disposition. In such a case, the basis of the
newly purchased shares will be adjusted to reflect the disallowed loss.

Dividends Received Deduction. It is not anticipated that dividends from domestic
corporations will comprise a substantial part of the Fund's gross income. If any
such dividends constitute a portion of the Fund's gross income, a portion of the
income  distributions  of the Fund may be  eligible  for the 70%  deduction  for
dividends received by corporations. Shareholders will be informed of the portion
of dividends which so qualify.  The  dividends-received  deduction is reduced to
the  extent  the  shares of the Fund with  respect  to which the  dividends  are
received  are  treated  as  debt-financed  under  federal  income tax law and is
eliminated  if either  those shares or the shares of the Fund are


                                       59
<PAGE>

deemed to have been held by the Fund or the shareholder, as the case may be, for
fewer than 46 days during the 91-day period  beginning 45 days before the shares
become ex-dividend.

Foreign  Taxation.  Foreign  withholding  or other foreign taxes with respect to
income  (possibly  including,  in some cases,  capital gains) on certain foreign
securities may occur.  These taxes may be reduced or eliminated  under the terms
of an applicable U.S. income tax treaty.  The Fund may elect for U.S. income tax
purposes to treat foreign taxes paid by it as paid by its  shareholders  if more
than 50% of the Fund's total assets at the close of its taxable year consists of
stock or securities of foreign  corporations.  The Fund may qualify for and make
this election in some, but not  necessarily  all, of its taxable  years.  If the
Fund were to make such an election,  shareholders  of the Fund would be required
to take into account an amount equal to their pro rata  portions of such foreign
taxes in computing  their taxable income and then treat an amount equal to those
foreign taxes as a U.S.  federal income tax deduction or as a foreign tax credit
against their U.S.  federal income taxes.  No deduction for foreign taxes may be
claimed by a shareholder who does not itemize  deductions.  Certain  limitations
will be imposed on the extent to which the credit  (but not the  deduction)  for
foreign taxes may be claimed.

Passive Foreign Investment Companies.  Equity investments by the Fund in certain
"passive foreign  investment  companies"  ("PFICs")  including  certain types of
non-U.S.  real estate investment companies could potentially subject the Fund to
a U.S. federal income tax (including interest charges) on distributions received
from the company or on proceeds  received from the  disposition of shares in the
company,  which tax cannot be  eliminated  by making  distributions  to the Fund
shareholders.  However,  the Fund may elect to avoid the imposition of that tax.
For example,  the Fund may elect to treat a PFIC as a "qualified  electing fund"
(a "QEF election"), in which case the Fund will be required to include its share
of the company's income and net capital gains annually, regardless of whether it
receives any distribution  from the company.  The Fund also may make an election
to mark the gains  (and to a limited  extent  losses) in such  holdings  "to the
market" as though it had sold and repurchased its holdings in those PFICs on the
last day of the Fund's  taxable year.  The election must be made  separately for
each  PFIC  owned  by the Fund  and,  once  made,  would  be  effective  for all
subsequent taxable years, unless revoked with the consent of the IRS. Such gains
and losses are treated as ordinary  income and loss. The QEF and  mark-to-market
elections may accelerate the recognition of income (without the receipt of cash)
and  increase  the  amount  required  to be  distributed  by the  Fund to  avoid
taxation.  Making  either of these  elections  therefore may require the Fund to
liquidate other investments  (including when it is not advantageous to do so) to
meet its distribution requirement,  which also may accelerate the recognition of
gain and affect the Fund's  total  return.  Dividends  paid by PFICs will not be
eligible to be treated as "qualified dividend income."

Other  Federal  Income Tax  Considerations.  The Fund's use of options,  futures
contracts,  forward  contracts  (to the  extent  permitted)  and  certain  other
Strategic   Transactions  will  be  subject  to  special  tax  rules  (including
mark-to-market,  constructive  sale,  straddle,  wash sale, short sale and other
rules),  the effect of which may be to accelerate  income,  defer losses,  cause
adjustments  in the holding  periods of portfolio  securities,  convert  capital
gains into ordinary income and convert  short-term capital losses into long-term
capital  losses.  These rules  could  therefore  affect the  amount,  timing and
character of distributions to investors.

Transactions in foreign currencies, foreign investment currency-denominated debt
securities and certain foreign  currency  options,  futures  contracts,  forward
contracts and similar  instruments  (to the extent  permitted)  may give rise to
ordinary  income  or  loss to the  extent  such  income  or  loss  results  from
fluctuations in the value of the foreign currency concerned.

The Fund's  investment  in zero coupon bonds and other debt  obligations  having
original issue discount may cause the Fund to recognize taxable income in excess
of any cash received from the investment.

As a result  of  entering  into  swap  contracts,  the Fund may make or  receive
periodic net  payments.  The Fund may also make or receive a payment when a swap
is  terminated  prior to  maturity  through an  assignment  of the swap or other
closing  transaction.  Periodic net payments will generally  constitute ordinary
income or  deductions,  while  termination  of a swap will  generally  result in
capital gain or loss (which will be a long-term capital gain or loss if the Fund
has been a party to the swap for more than one year).

Shareholders   of  the  Fund  may  be  subject  to  state  and  local  taxes  on
distributions received from the Fund and on redemptions of the Fund's shares.

                                       60
<PAGE>

Special tax rules apply to investments  through defined  contribution  plans and
other  tax-qualified  plans.  Shareholders  should consult their tax advisers to
determine the  suitability  of shares of the Fund as an investment  through such
plans and the precise effect of an investment on their particular tax situation.

If a  shareholder  recognizes  a loss with  respect to the  Fund's  shares of $2
million  or more for an  individual  shareholder  or $10  million  or more for a
corporate  shareholder,  the  shareholder  must file with the  Internal  Revenue
Service a disclosure  statement on Form 8886.  Direct  shareholders of portfolio
securities are in many cases excepted from this reporting requirement, but under
current  guidance,  shareholders  of a  regulated  investment  company  are  not
excepted.  The fact that a loss is reportable  under these  regulations does not
affect the legal  determination of whether the taxpayer's  treatment of the loss
is proper.  Shareholders  should  consult  their tax advisors to  determine  the
applicability of these regulations in light of their individual circumstances.

Backup  Withholding.  Under  the  backup  withholding  provisions  of the  Code,
redemption  proceeds as well as  distributions  may be subject to federal income
tax  withholding for certain  shareholders,  including those who fail to furnish
the Fund with their taxpayer  identification  numbers and  certifications  as to
their tax status.

Non-U.S.   Shareholders.   In  general,   dividends  (other  than  capital  gain
distributions)  paid by the Fund to a  shareholder  that is not a "U.S.  person"
within the  meaning  of the Code (such  shareholder,  a  "foreign  person")  are
subject to  withholding  of U.S.  federal  income tax at a rate of 30% (or lower
applicable  treaty  rate)  even if they are  funded by income or gains  (such as
portfolio  interest,  short-term  capital gains, or foreign-source  dividend and
interest  income)  that,  if paid to a  foreign  person  directly,  would not be
subject to  withholding.  However,  before January 1, 2008, the Fund will not be
required to withhold any amounts (i) with respect to  distributions  (other than
distributions  to a foreign  person  (w) that has not  provided  a  satisfactory
statement that the beneficial owner is not a U.S. person, (x) to the extent that
the dividend is attributable to certain interest on an obligation if the foreign
person is the issuer or is a 10%  shareholder of the issuer,  (y) that is within
certain  foreign  countries that have inadequate  information  exchange with the
United  States,  or (z) to the extent the dividend is  attributable  to interest
paid by a person that is a related  person of the foreign person and the foreign
person is a controlled  foreign  corporation)  from U.S.-source  interest income
that would not be subject to U.S.  federal  income tax if earned  directly by an
individual  foreign  person,  to the  extent  such  distributions  are  properly
designated  by the Fund,  and (ii) with  respect to  distributions  (other  than
distributions  to an  individual  foreign  person  who is  present in the United
States for a period or periods  aggregating  183 days or more during the year of
the  distribution)  of net  short-term  capital gains in excess of net long-term
capital losses, to the extent such distributions are properly  designated by the
Fund.  Depending on the circumstances,  the Fund may make such designations with
respect to all, some or none of its potentially  eligible dividends and/or treat
such  dividends,  in whole or in part, as  ineligible  for this  exemption  from
withholding.  In order to qualify for this exemption from withholding, a foreign
person will need to comply with applicable  certification  requirements relating
to its non-US status  (including,  in general,  furnishing an IRS Form W-8BEN or
substitute  Form).  In the case of shares  held  through  an  intermediary,  the
intermediary may withhold even if the Fund makes a designation with respect to a
payment. Foreign persons should contact their intermediaries with respect to the
application of these rules to their accounts.

If a  beneficial  holder who is a foreign  person has a trade or business in the
United States,  and the dividends are effectively  connected with the conduct by
the beneficial holder of a trade or business in the United States,  the dividend
will be subject to U.S. federal net income taxation at regular income tax rates.

In general,  United States federal withholding tax will not apply to any gain or
income realized by a non-U.S.  shareholder upon the sale or other disposition of
shares of the Fund.

Foreign  shareholders of the Fund must treat a distribution  attributable to the
Fund's  sale of a real  estate  investment  trust or other  U.S.  real  property
holding  company as real property gain if 50% or more of the value of the Fund's
assets are  invested  in real  estate  investment  trusts  and other  U.S.  real
property holding  corporations and if the foreign shareholder has held more than
5% of a class of stock at any time during the one-year period ending on the date
of the distribution.  After December 31, 2007, a distribution from the Fund will
be  treated  as  attributable  to a U.S.  real  property  interest  only if such
distribution is attributable to a distribution  received by the Fund from a real
estate investment trust.  Restrictions apply regarding wash sales and substitute
payment transactions.

                                       61
<PAGE>

Investors  are advised to consult  their own tax advisors  with respect to their
own circumstances  regarding the above-described general federal income taxation
rules and with respect to other federal state, local or foreign tax consequences
to them of an investment in shares of the Fund.

                                 NET ASSET VALUE

The net asset value of shares of the Fund is computed as of the close of regular
trading on the New York Stock Exchange (the "Exchange") on each day the Exchange
is open for trading (the "Value  Time").  The Exchange is scheduled to be closed
on the following  holidays:  New Year's Day, Dr.  Martin  Luther King,  Jr. Day,
Presidents'  Day,  Good  Friday,  Memorial  Day,  Independence  Day,  Labor Day,
Thanksgiving  and Christmas,  and on the preceding  Friday or subsequent  Monday
when one of these  holidays  falls on a Saturday  or Sunday,  respectively.  Net
asset  value  per share is  determined  separately  for each  class of shares by
dividing the value of the total assets of the Fund attributable to the shares of
that class, less all liabilities attributable to that class, by the total number
of shares of that class outstanding.  The per share net asset value may be lower
for  certain  classes  of the Fund  because  of higher  expenses  borne by these
classes.

An equity  security is valued at its most  recent  sale price on the  security's
primary  exchange  or  over-the-counter  ("OTC")  market as of the  Value  Time.
Lacking any sales,  the  security is valued at the  calculated  mean between the
most recent bid quotation and the most recent asked  quotation (the  "Calculated
Mean")  on such  exchange  or OTC  market  as of the  Value  Time.  If it is not
possible to determine the  Calculated  Mean,  the security is valued at the most
recent bid quotation on such exchange or OTC market as of the Value Time. In the
case of certain foreign exchanges or OTC markets,  the closing price reported by
the exchange or OTC market (which may sometimes be referred to as the " official
close" or the "official closing price" or other similar term) will be considered
the most recent sale price.

Debt securities are valued as follows.  Money market instruments  purchased with
an  original or  remaining  maturity  of 60 days or less,  maturing at par,  are
valued at amortized  cost.  Other money market  instruments  are valued based on
information  obtained from an approved  pricing agent or, if such information is
not readily  available,  by using  matrix  pricing  techniques  (formula  driven
calculations based primarily on current market yields). Bank loans are valued at
prices supplied by an approved  pricing agent (which are intended to reflect the
mean between the bid and asked prices), if available,  and otherwise at the mean
of the most recent bid and asked quotations or evaluated  prices, as applicable,
based  on   quotations   or  evaluated   prices   obtained   from  one  or  more
broker-dealers.  Privately  placed  debt  securities,  other than Rule 144A debt
securities,  initially are valued at cost and  thereafter  based on all relevant
factors,  including  type of  security,  size of  holding  and  restrictions  on
disposition.  Municipal  debt  securities  are valued at prices  supplied  by an
approved  pricing  agent (which are intended to reflect the mean between the bid
and asked  prices),  if available,  and otherwise at the mean of the most recent
bid and asked quotations or evaluated price obtained from a broker-dealer. Other
debt securities are valued at prices  supplied by an approved  pricing agent, if
available, and otherwise at the most recent bid quotation or evaluated price, as
applicable,  obtained from one or more broker-dealers.  If it is not possible to
value a particular debt security pursuant to the above methods,  the security is
valued on the basis of factors including (but not limited to) maturity,  coupon,
creditworthiness, currency denomination, and the movement of the market in which
the security is normally traded.

An exchange-traded option contract on securities, currencies and other financial
instruments  is valued at its most recent sale price on the  relevant  exchange.
Lacking any sales,  the option contract is valued at the Calculated  Mean. If it
is not possible to determine the Calculated  Mean, the option contract is valued
at the most recent bid quotation in the case of a purchased  option  contract or
the most recent asked  quotation in the case of a written  option  contract,  in
each case as of the Value Time. An option contract on securities, currencies and
other financial instruments traded in the OTC market is valued on the Value Date
at the evaluated price provided by the  broker-dealer  with which it was traded.
Futures contracts (and options thereon) are valued at the most recent settlement
price, if available,  on the security's primary exchange.  With the exception of
stock index futures,  contracts which trade on the Chicago Mercantile  Exchange,
closing settlement times are prior to the close of trading on the New York Stock
Exchange.  For  stock  index  futures  contracts  which  trade  on  the  Chicago
Mercantile  Exchange,  closing  settlement  prices  are  normally  available  at
approximately  4:20 p.m. Eastern time. If no settlement price is available,  the
last traded price on such exchange will be used.


                                       62
<PAGE>

If market  quotations  for a portfolio  asset are not readily  available  or the
value of a portfolio  asset as  determined  in  accordance  with Board  approved
procedures does not represent the fair market value of the portfolio  asset, the
value of the portfolio  asset is taken to be an amount which,  in the opinion of
the  Fund's  Pricing  Committee  (or,  in  some  cases,  the  Board's  Valuation
Committee),  represents fair market value. The value of other portfolio holdings
owned by the Fund is determined in a manner which is intended to fairly  reflect
the fair market  value of the asset on the  valuation  date,  based on valuation
procedures  adopted by the Fund's  Board and  overseen  primarily  by the Fund's
Pricing Committee.

                             DIRECTORS AND OFFICERS

[TO BE UPDATED]

Securities Beneficially Owned

As of  ____________,  2008,  the Board  Members and officers of the  Corporation
owned, as a group, less than 1% of the outstanding shares of the Fund.

To the best of the Fund's knowledge, as of ______________, 2008, no person owned
of record or  beneficially  5% or more of any  class of the  Fund's  outstanding
shares[, except as noted below.]

Agreement to Indemnify Independent Directors for Certain Expenses

In connection with litigation or regulatory  action related to possible improper
market timing or other improper trading activity or possible improper  marketing
and sales  activity  in the Fund,  the Fund's  investment  advisor  has  agreed,
subject to  applicable  law and  regulation,  to indemnify and hold harmless the
Fund  against any and all loss,  damage,  liability  and  expense,  arising from
market timing or marketing and sales matters alleged in any enforcement  actions
brought by governmental  authorities involving or potentially affecting the Fund
or the  investment  advisor  ("Enforcement  Actions")  or that are the basis for
private  actions  brought by  shareholders  of the Fund  against  the Fund,  its
directors and  officers,  the Fund's  investment  advisor  and/or  certain other
parties  ("Private  Litigation"),  or any  proceedings  or  actions  that may be
threatened  or  commenced  in the future by any person  (including  governmental
authorities),  arising from or similar to the matters alleged in the Enforcement
Actions or Private  Litigation.  In recognition of its  undertaking to indemnify
the Fund  and in  light of the  rebuttable  presumption  generally  afforded  to
independent  directors/trustees  of  investment  companies  that  they  have not
engaged in disabling  conduct,  the Fund's  investment  advisor has also agreed,
subject to applicable law and  regulation,  to indemnify the Fund's  Independent
Directors  against certain  liabilities the Independent  Trustees may incur from
the matters alleged in any Enforcement  Actions or Private Litigation or arising
from or similar to the  matters  alleged in the  Enforcement  Actions or Private
Litigation,  and  advance  expenses  that  may be  incurred  by the  Independent
Directors in connection with any Enforcement Actions or Private Litigation.  The
applicable   investment   advisor   is  not,   however,   required   to  provide
indemnification and advancement of expenses:  (1) with respect to any proceeding
or action with respect to which the Fund's Board determines that the Independent
Director  ultimately  would not be  entitled to  indemnification  or (2) for any
liability of the Independent Director to the Fund or their shareholders to which
the  Independent  Director  would  otherwise  be  subject  by reason of  willful
misfeasance,   bad  faith,   gross  negligence  or  reckless  disregard  of  the
Independent Director's duties as a director or trustee of the Fund as determined
in a final  adjudication in such action or proceeding.  The estimated  amount of
any expenses that may be advanced to the Independent Directors or indemnity that
may be payable  under the  indemnity  agreements  is  currently  unknown.  These
agreements by the Fund's investment  advisor will survive the termination of the
investment  management  agreements between the applicable investment advisor and
the Fund.

                                FUND ORGANIZATION

Organizational Description

On February 6, 2006, the name of  "Global/International  Fund, Inc." was changed
to "DWS  Global/International  Fund, Inc." DWS Global/International  Fund, Inc.,
referred to herein as the "Corporation," is a Maryland  corporation of which DWS
RREEF  Global  Infrastructure  Fund  is a  non-diversified  series.  The  series
sometimes is referred to


                                       63
<PAGE>

herein as the "Fund." The Corporation was originally named "Scudder Global Fund,
Inc." and changed its name to "Global/International Fund, Inc." on May 29, 1998.
The Corporation is an open-end management investment company, which continuously
offers and redeems its shares. The Corporation is a company of the type commonly
known as a mutual fund. DWS RREEF Global  Infrastructure  Fund, organized in May
2008, offers four classes of shares:  Class A, Class C, Institutional  Class and
Class S.

The Corporation is a Maryland  corporation  organized under the laws of Maryland
and is governed  by Amended and  Restated  Articles of  Incorporation  that were
approved  by  shareholders  in the  second  quarter  of 2006,  as may be further
amended from time to time (the "Articles of  Incorporation").  All shares issued
and  outstanding  are  fully  paid  and  non-assessable,  transferable,  have no
pre-emptive  rights  (except as may be  determined by the Board of Directors) or
conversion rights (except as described below) and are redeemable as described in
the SAI and in a Fund's prospectus.  Each share has equal rights with each other
share  of the  same  class  of a Fund as to  voting,  dividends,  exchanges  and
liquidation.  Shareholders  are  entitled  to one vote for each  share  held and
fractional votes for fractional shares held.

The Board of Directors may determine  that shares of a Fund or a class of a Fund
shall be automatically  converted into shares of another Fund of the Corporation
or of another class of the same or another Fund based on the relative net assets
of such Fund or class at the time of conversion. The Board of Directors may also
provide that the holders of shares of a Fund or a class of a Fund shall have the
right to convert or exchange their shares into shares of one or more other Funds
or classes on terms established by the Board of Directors.

Each share of the  Corporation  may be subject to such sales  loads or  charges,
expenses and fees, account size  requirements,  and other rights and provisions,
which may be the same or different  from any other share of the  Corporation  or
any  other  share of any Fund or class of a Fund  (including  shares of the same
Fund or class as the share),  as the Board of Directors of the  Corporation  may
establish or change from time to time and to the extent permitted under the 1940
Act.

The Corporation is not required to hold an annual meeting of shareholders in any
year in which the  election of  Directors  is not required by the 1940 Act. If a
meeting of  shareholders  of the Corporation is required by the 1940 Act to take
action on the election of  Directors,  then an annual  meeting  shall be held to
elect  Directors  and take such other  action as may come  before  the  meeting.
Special meetings of the shareholders of the Corporation,  or of the shareholders
of one or more Funds or classes  thereof,  for any purpose or  purposes,  may be
called at any time by the Board of Directors or by the  President,  and shall be
called by the  President or Secretary at the request in writing of  shareholders
entitled to cast a majority of the votes entitled to be cast at the meeting.

Except as  provided in the 1940 Act,  the  presence in person or by proxy of the
holders  of  one-third  of the  shares  entitled  to  vote  at a  meeting  shall
constitute a quorum for the  transaction of business at meetings of shareholders
of the Corporation or of a Fund or class.

On any matter submitted to a vote of shareholders, all shares of the Corporation
entitled  to vote  shall be voted in the  aggregate  as a single  class  without
regard  to  series  or  classes  of  shares,  provided,  however,  that (a) when
applicable law requires that one or more series or classes vote separately, such
series or classes shall vote  separately  and,  subject to (b) below,  all other
series  or  classes  shall  vote in the  aggregate;  and (b) when  the  Board of
Directors determines that a matter does not affect the interests of a particular
series or class, such series or class shall not be entitled to any vote and only
the shares of the affected series or classes shall be entitled to vote.

Notwithstanding any provision of Maryland corporate law requiring  authorization
of any action by a greater  proportion  than a majority  of the total  number of
shares  entitled  to vote  on a  matter,  such  action  shall  be  effective  if
authorized by the majority vote of the outstanding shares entitled to vote.

Subject to the requirements of applicable law and any procedures  adopted by the
Board of Directors from time to time,  the holders of shares of the  Corporation
or any one or more  series or classes  thereof may take action or consent to any
action by delivering a consent, in writing or by electronic transmission, of the
holders entitled to cast not less than the minimum number of votes that would be
necessary to authorize or take the action at a formal meeting.


                                       64
<PAGE>

The Articles of  Incorporation  provide that the Board of Directors  may, in its
discretion,  establish  minimum  investment  amounts for  shareholder  accounts,
impose  fees on  accounts  that do not  exceed a minimum  investment  amount and
involuntarily  redeem  shares in any such  account in payment of such fees.  The
Board of Directors,  in its sole  discretion,  also may cause the Corporation to
redeem all of the  shares of the  Corporation  or one or more  series or classes
held by any  shareholder for any reason,  to the extent  permissible by the 1940
Act,  including (a) if the shareholder owns shares having an aggregate net asset
value  of  less  than a  specified  minimum  amount,  (b)  if the  shareholder's
ownership of shares would disqualify a series from being a regulated  investment
company, (c) upon a shareholder's  failure to provide sufficient  identification
to permit the  Corporation  to verify  the  shareholder's  identity,  (d) upon a
shareholder's  failure to pay for shares or meet or maintain the  qualifications
for  ownership  of a particular  series or class,  (e) if the Board of Directors
determines (or pursuant to policies  established by the Board of Directors it is
determined)  that share  ownership by a shareholder is not in the best interests
of the  remaining  shareholders,  (f)  when  the  Corporation  is  requested  or
compelled to do so by  governmental  authority or applicable  law, or (g) upon a
shareholder's  failure to comply with a request for information  with respect to
the direct or indirect  ownership  of shares of the  Corporation.  By  redeeming
shares the  Corporation  may terminate a Fund or any class  without  shareholder
approval,  and the  Corporation may suspend the right of shareholders to require
the Corporation to redeem shares to the extent  permissible  under the 1940 Act.
Payment  for shares  redeemed  shall be made in cash or other  property,  or any
combination thereof; provided, however, that the composition of any such payment
(e.g.,  cash,  securities  and/or  other  assets)  to any  shareholder  shall be
determined by the Corporation in its sole discretion, and may be different among
shareholders  (including  differences  among  shareholders  in the same  fund or
class).

Except  as  otherwise   permitted  by  the  Articles  of  Incorporation  of  the
Corporation, upon liquidation or termination of a Fund or class, shareholders of
such  Fund or  class  of a Fund  shall  be  entitled  to  receive,  pro  rata in
proportion to the number of shares of such Fund or class held by each of them, a
share of the net assets of such Fund or class,  and the holders of shares of any
other  particular Fund or class shall not be entitled to any such  distribution,
provided,  however,  that the  composition  of any  such  payment  (e.g.,  cash,
securities  and/or other assets) to any  shareholder  shall be determined by the
Corporation  in its sole  discretion,  and may be different  among  shareholders
(including differences among shareholders in the same Fund or class).

                             PROXY VOTING GUIDELINES

The Fund has delegated proxy voting responsibilities to the Advisor,  subject to
the  Board's  general  oversight.  The Fund has  delegated  proxy  voting to the
Advisor with the  direction  that proxies  should be voted  consistent  with the
Fund's best  economic  interests.  The Advisor has adopted its own Proxy  Voting
Policies and Procedures ("Policies"), and Proxy Voting Guidelines ("Guidelines")
for this  purpose.  The  Policies  address,  among other  things,  conflicts  of
interest that may arise between the interests of the Fund,  and the interests of
the Advisor and its affiliates,  including the Fund's principal underwriter. The
Guidelines set forth the Advisor's general position on various  proposals,  such
as:

o        Shareholder  Rights -- The Advisor  generally  votes against  proposals
         that restrict shareholder rights.

o        Corporate  Governance -- The Advisor  generally votes for  confidential
         and cumulative voting and against supermajority voting requirements for
         charter and bylaw amendments. The Advisor generally votes for proposals
         to restrict a chief  executive  officer from serving on more than three
         outside  boards of  directors.  The  Advisor  generally  votes  against
         proposals  that  require a company  to  appoint  a  Chairman  who is an
         independent director.

o        Anti-Takeover Matters -- The Advisor generally votes for proposals that
         require shareholder ratification of poison pills or that request boards
         to redeem poison pills,  and votes against the adoption of poison pills
         if  they  are  submitted  for  shareholder  ratification.  The  Advisor
         generally votes for fair price proposals.

o        Compensation  Matters -- The Advisor generally votes for executive cash
         compensation  proposals,  unless they are unreasonably  excessive.  The
         Advisor generally votes against stock option plans that do not meet the
         Advisor's criteria.


                                       65
<PAGE>

o        Routine Matters -- The Advisor  generally votes for the ratification of
         auditors,  procedural matters related to the annual meeting and changes
         in company name, and against bundled proposals and adjournment.

The general provisions described above do not apply to investment companies. The
Advisor generally votes proxies solicited by investment  companies in accordance
with the  recommendations  of an  independent  third  party,  except for proxies
solicited by or with respect to investment companies for which the Advisor or an
affiliate serves as the Advisor or principal underwriter ("affiliated investment
companies"). The Advisor votes affiliated investment company proxies in the same
proportion as the vote of the investment company's other shareholders (sometimes
called  "mirror" or "echo"  voting).  Master fund proxies  solicited from feeder
funds are voted in accordance  with  applicable  requirements  of the Investment
Company Act of 1940.

Although the  Guidelines  set forth the Advisor's  general  voting  positions on
various proposals,  the Advisor may,  consistent with the Funds' best interests,
determine under some circumstances to vote contrary to those positions.

The  Guidelines  on a  particular  issue  may or may  not  reflect  the  view of
individual members of the Board or of a majority of the Board. In addition,  the
Guidelines may reflect a voting position that differs from the actual  practices
of  the  public  companies  within  the  Deutsche  Bank  organization  or of the
investment  companies for which the Advisor or an affiliate serves as investment
advisor or sponsor.

The  Advisor  may  consider  the views of a portfolio  company's  management  in
deciding how to vote a proxy or in establishing general voting positions for the
Guidelines, but management's views are not determinative.

As mentioned above, the Policies  describe the way in which the Advisor resolves
conflicts  of  interest.  To  resolve  conflicts,   the  advisor,  under  normal
circumstances, votes proxies in accordance with its Guidelines.

If the Advisor departs from the Guidelines with respect to a particular proxy or
if the Guidelines do not specifically  address a certain proxy proposal, a proxy
voting committee  established by the advisor will vote the proxy.  Before voting
any such proxy,  however,  the Advisor's conflicts review committee will conduct
an investigation to determine whether any potential  conflicts of interest exist
in connection  with the  particular  proxy  proposal.  If the  conflicts  review
committee  determines that the Advisor has a material  conflict of interest,  or
certain  individuals  on the  proxy  voting  committee  should be  recused  from
participating  in a  particular  proxy  vote,  it will  inform the proxy  voting
committee.  If notified that the Advisor has a material conflict,  or fewer than
three voting members are eligible to  participate  in the proxy vote,  typically
the Advisor will engage an  independent  third party to vote the proxy or follow
the proxy voting recommendations of an independent third party.

Under certain circumstances,  the Advisor may not be able to vote proxies or the
Advisor  may find that the  expected  economic  costs from voting  outweigh  the
benefits  associated with voting. For example,  the Advisor may not vote proxies
on certain foreign securities due to local restrictions or customs.  The Advisor
generally  does  not vote  proxies  on  securities  subject  to  share  blocking
restrictions.

You may  obtain  information  about how the Fund  voted  proxies  related to its
portfolio  securities  during the 12-month  period ended June 30 by visiting the
SEC's Web site at  www.sec.gov  or by visiting our Web site at:  dws-scudder.com
(click on "proxy voting" at the bottom of the page).

                              FINANCIAL STATEMENTS

The audited financial  statements for the Fund for the year ended ______________
will be included in, and will be  incorporated  by reference  into,  this SAI in
reliance upon the report of ________________,  the Fund's independent registered
public accounting firm, as experts in accounting and auditing.

A copy of the Fund's Annual Report may be obtained  without charge by contacting
Shareholder Services at 1-800-621-1048.


                                       66
<PAGE>

                             ADDITIONAL INFORMATION

The CUSIP numbers for each class of DWS RREEF Global Infrastructure Fund offered
herein are:

Class A:

Class C:

Institutional Class:

DWS RREEF Global Infrastructure Fund has a fiscal year ending [December 31.]

Reference is hereby made to the Registration  Statement which the Fund has filed
with the SEC under  the  Securities  Act of 1933 for  further  information  with
respect  to the  Fund  and the  securities  offered  hereby.  This  Registration
Statement and its  amendments  are available for inspection by the public at the
SEC in Washington, D.C.


                                       67
<PAGE>

                                    APPENDIX

Standard & Poor's Corporation Bond Ratings

AAA.  Debt  rated AAA had the  highest  rating  assigned  by  Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.

AA. Debt rated AA has a very strong capacity to pay interest and repay principal
and differs from the higher rated issues only in small degree.

A. Debt  rated A has a strong  capacity  to pay  interest  and  repay  principal
although it is somewhat more  susceptible  to the adverse  effects of changes in
circumstances and economic conditions than debt in higher rated categories.

BBB.  Debt rated BBB is regarded as having an adequate  capacity to pay interest
and  repay  principal.   Whereas  it  normally  exhibits   adequate   protection
parameters,  adverse  economic  conditions  or changing  circumstances  are more
likely to lead to a weakened  capacity to pay interest and repay  principal  for
debt in this category than in higher rated categories.

BB, B, CCC, CC and C. Debt rated BB, B, CCC, CC and C is  regarded,  on balance,
as predominantly  speculative with respect to capacity to pay interest and repay
principal in  accordance  with the terms of the  obligation.  BB  indicates  the
lowest degree of speculation and C the highest degree of speculation. While such
debt will likely have some  quality and  protective  characteristics,  these are
outweighed by large uncertainties or major risk exposures to adverse conditions.

CI. The rating CI is  reserved  for income  bonds on which no  interest is being
paid.

D. Debt rated D is in  default,  and  payment of interest  and/or  repayment  of
principal is in arrears.

Moody's Investors Service, Inc. Bond Ratings

AAA. Bonds which are rated Aaa are judged to be of the best quality.  They carry
the  smallest  degree  of  investment  risk  and are  generally  referred  to as
"gilt-edge."  Interest  payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change,  such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Aa. Bonds which are rated Aa are judged to be of high quality by all  standards.
Together with the Aaa group they comprise what are generally known as high-grade
bonds.  They are rated lower than the best bonds  because  margins of protection
may not be as large as in Aaa securities or  fluctuation of protective  elements
may be of greater  amplitude or there may be other  elements  present which make
the long term risks appear somewhat larger than in

Aaa securities.

A. Bonds which are rated A possess many favorable investment  attributes and are
to be considered as upper medium grade  obligations.  Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.

Baa. Bonds which are rated Baa are considered as medium grade obligations, i.e.,
they are neither  highly  protected nor poorly  secured.  Interest  payments and
principal  security  appear  adequate  for the present  but  certain  protective
elements may be lacking or may be  characteristically  unreliable over any great
length of time. Such bonds lack outstanding  investment  characteristics  and in
fact have speculative characteristics as well.

Ba.  Bonds  which are rated Ba are judged to have  speculative  elements;  their
future cannot be considered  as well assured.  Often the  protection of interest
and  principal  payments may be very  moderate and thereby not well


                                       68
<PAGE>

safeguarded  during  both good and bad times  over the  future.  Uncertainty  of
position characterizes bonds in this class.

B. Bonds  which are rated B  generally  lack  characteristics  of the  desirable
investment.  Assurance of interest and principal  payments or of  maintenance of
other terms of the contract over any long period of time may be small.

Caa.  Bonds  which are rated Caa are of poor  standing.  Such  issues  may be in
default or there may be present  elements of danger with respect to principal or
interest.

Ca. Bonds which are rated Ca represent  obligations  which are  speculative in a
high degree. Such issues are often in default or have other marked shortcomings.

C.  Bonds  which are rated C are the lowest  rated  class of bonds and issues so
rated can be regarded as having  extremely  poor prospects of ever attaining any
real investment standing.

Fitch Long-Term Debt Ratings

AAA.  Highest credit  quality.  "AAA" ratings  denote the lowest  expectation of
credit risk. They are assigned only in case of exceptionally strong capacity for
timely payment of financial commitments.  This capacity is highly unlikely to be
adversely affected by foreseeable events.

AA. Very high credit  quality.  "AA"` ratings  denote a very low  expectation of
credit risk.  They indicate very strong capacity for timely payment of financial
commitments.  This  capacity  is not  significantly  vulnerable  to  foreseeable
events.

A. High credit quality. "A" ratings denote a low expectation of credit risk. The
capacity for timely payment of financial  commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to changes in circumstances or in
economic conditions than is the case for higher ratings.

BBB. Good credit quality.  "BBB" ratings  indicate that there is currently a low
expectation  of credit  risk.  The  capacity  for timely  payment  of  financial
commitments is considered adequate,  but adverse changes in circumstances and in
economic conditions are more likely to impair this capacity.  This is the lowest
investment-grade category.

BB.  Speculative.  "BB" ratings  indicate that there is a possibility  of credit
risk  developing,  particularly  as the result of adverse  economic  change over
time;  however,  business or  financial  alternatives  may be available to allow
financial  commitments  to be met.  Securities  rated in this  category  are not
investment grade.

B. Highly  speculative.  "B" ratings  indicate that  significant  credit risk is
present,  but a limited  margin of safety  remains.  Financial  commitments  are
currently being met; however,  capacity for continued payment is contingent upon
a sustained, favorable business and economic environment.

CCC,  CC, C. High  default  risk.  Default is a real  possibility.  Capacity for
meeting  financial  commitments  is solely  reliant  upon  sustained,  favorable
business or economic developments.  A "CC" rating indicates that default of some
kind appears probable. "C" ratings signal imminent default.

DDD, DD, D. Default.  The ratings of  obligations  in this category are based on
their prospects for achieving  partial or full recovery in a  reorganization  or
liquidation  of  the  obligor.   While  expected   recovery  values  are  highly
speculative  and cannot be estimated with any precision,  the following serve as
general  guidelines.  "DDD" obligations have the highest potential for recovery,
around 90%-100% of outstanding amounts and accrued interest.

"DD" indicates potential  recoveries in the range of 50%-90%, and "D" the lowest
recovery  potential,  i.e.,  below 50%.  Entities  rated in this  category  have
defaulted  on some or all of their  obligations.  Entities  rated "DDD" have the
highest  prospect for resumption of  performance or continued  operation with or
without  a  formal  reorganization  process.  Entities  rated  "DD"  and "D" are
generally undergoing a formal reorganization or liquidation process; those


                                       69
<PAGE>

rated  "DD" are  likely  to  satisfy  a  higher  portion  of  their  outstanding
obligations,  while  entities  rated "D" have a poor  prospect  for repaying all
obligations.

Fitch Short-Term Debt Ratings

F1.  Highest credit  quality.  Indicates the Best capacity for timely payment of
financial commitments;  may have an added "+" to denote any exceptionally strong
credit feature.

F2. Good credit quality. A satisfactory capacity for timely payment of financial
commitments,  but the  margin  of  safety  is not as great as in the case of the
higher ratings.

F3.  Fair  credit  quality.   The  capacity  for  timely  payment  of  financial
commitments is adequate;  however,  near-term  adverse changes could result in a
reduction to non-investment grade.

B.  Speculative.  Minimal capacity for timely payment of financial  commitments,
plus  vulnerability  to  near-term  adverse  changes in  financial  and economic
conditions.

C. High  default  risk.  Default is a real  possibility.  Capacity  for  meeting
financial commitments is solely reliant upon a sustained, favorable business and
economic environment.

D. Default. Denotes actual or imminent payment default.

Commercial Paper Ratings

Commercial  paper rated by Standard & Poor's  Ratings  Services  ("S&P") has the
following   characteristics:   Liquidity   ratios  are  adequate  to  meet  cash
requirements.  Long-term  senior  debt is rated "A" or  better.  The  issuer has
access to at least two additional channels of borrowing. Basic earnings and cash
flow  have an  upward  trend  with  allowance  made for  unusual  circumstances.
Typically, the issuer's industry is well established and the issuer has a strong
position  within the industry.  The  reliability  and quality of management  are
unquestioned.  Relative  strength  or weakness  of the above  factors  determine
whether the issuer's commercial paper is rated A-1 or A-2.

The ratings  Prime-1 and Prime-2 are the two highest  commercial  paper  ratings
assigned  by Moody's  Investors  Service,  Inc.  ("Moody's").  Among the factors
considered by it in assigning  ratings are the following:  (1) evaluation of the
management of the issuer;  (2) economic  evaluation of the issuer's  industry or
industries and an appraisal of  speculative-type  risks which may be inherent in
certain  areas;  (3)  evaluation  of  the  issuer's   products  in  relation  to
competition and customer  acceptance;  (4) liquidity;  (5) amount and quality of
long-term debt; (6) trend of earnings over a period of ten years;  (7) financial
strength of a parent company and the relationships  which exist with the issuer;
and (8) recognition by the management of obligations which may be present or may
arise as a result of public  interest  questions and  preparations  to meet such
obligations.  Relative  strength  or weakness  of the above  factors  determines
whether the issuer's commercial paper is rated Prime-1 or 2.

Municipal Notes

Moody's: The highest ratings for state and municipal short-term  obligations are
"MIG 1," "MIG 2," and "MIG 3" (or "VMIG 1," "VMIG 2" and "VMIG 3" in the case of
an issue having a variable rate demand feature). Notes rated "MIG 1" or "VMIG 1"
are judged to be of the "best  quality".  Notes rated "MIG 2" or "VMIG 2" are of
"high  quality," with margins or protection  "ample  although not as large as in
the  preceding  group".  Notes  rated  "MIG  3" or  "VMIG  3" are of  "favorable
quality," with all security  elements  accounted for but lacking the strength of
the preceding grades.

S&P:  The  "SP-1"  rating  reflects  a "very  strong or strong  capacity  to pay
principal and interest". Notes issued with "overwhelming safety characteristics"
will be rated "SP-1+".  The "SP-2" rating reflects a "satisfactory  capacity" to
pay principal and interest.

Fitch:  The highest ratings for state and municipal  short-term  obligations are
"F-1+," "F-1," and "F-2."


                                       70
<PAGE>

                       DWS GLOBAL/INTERNATIONAL FUND, INC.

                      DWS RREEF Global Infrastructure Fund
                                 Class S Shares


                       STATEMENT OF ADDITIONAL INFORMATION

                                  May 23, 2008


This Statement of Additional Information is not a prospectus and should be read
in conjunction with the prospectus (the "Prospectus") dated May 23, 2008 for
Class S shares of DWS RREEF Global Infrastructure Fund (the "Fund"), a
non-diversified series of DWS Global/International Fund, Inc. (the
"Corporation"). The Prospectus may be obtained without charge by contacting DWS
Scudder Distributors, Inc., 222 South Riverside Plaza, Chicago, Illinois
60606-5808 or calling (800) 621-1148, or by contacting the firm from which this
Statement of Additional Information was obtained. This information is also
available along with other related materials on the Securities and Exchange
Commission's (the "SEC" or the "Commission") Internet Web site
(http://www.sec.gov).

When available, portions of the Annual Report to Shareholders of the Fund, dated
________, 2008, will be incorporated herein by reference, as specified herein. A
copy of the Fund's Annual Report may be obtained without charge from Shareholder
Services by calling (800) 728-3337.

This Statement of Additional Information is incorporated by reference into the
Prospectus of the Fund.





<PAGE>
                                TABLE OF CONTENTS

                                                                           Page
                                                                           ----

INVESTMENT RESTRICTIONS......................................................1

INVESTMENT POLICIES AND TECHNIQUES...........................................3
         Investment Techniques...............................................3
         Portfolio Holdings.................................................23

MANAGEMENT OF THE FUND......................................................24
         Investment Advisor.................................................24
         Compensation of Portfolio Managers.................................27

FUND SERVICE PROVIDERS......................................................32
         Administrator......................................................32
         Distributor........................................................33
         Custodian..........................................................34
         Transfer Agent and Shareholder Service Agent.......................34
         Independent Registered Public Accounting Firm......................35
         Legal Counsel......................................................35

PORTFOLIO TRANSACTIONS......................................................35

PURCHASE AND REDEMPTION OF SHARES...........................................38

DIVIDENDS...................................................................48

TAXES.......................................................................49

NET ASSET VALUE.............................................................53

DIRECTORS AND OFFICERS......................................................54

FUND ORGANIZATION...........................................................55

PROXY VOTING GUIDELINES.....................................................57

FINANCIAL STATEMENTS........................................................58

ADDITIONAL INFORMATION......................................................58

APPENDIX....................................................................59


                                       i


<PAGE>

                             INVESTMENT RESTRICTIONS

Except as otherwise indicated, the Fund's investment objective and policies are
not fundamental and may be changed without a vote of shareholders. If there is a
change in the Fund's investment objective, shareholders should consider whether
the Fund remains an appropriate investment in light of their financial position
and needs. There can be no assurance that the Fund's objective will be met.

Unless otherwise indicated, with the exception of the percentage limitations on
borrowing, the following restrictions apply at the time transactions are entered
into. Accordingly, any later increase or decrease beyond the specified
limitation resulting from a change in the Fund's net assets will not be
considered in determining whether it has complied with its investment
restrictions.

The Fund has elected to be classified as a non-diversified series of an open-end
management investment company. A non-diversified fund may invest a greater
proportion of its assets in the obligations of a small number of issuers, and
may be subject to greater risk and substantial losses as a result of changes in
the financial condition or the market's assessment of the issuers. While not
limited by the Investment Company Act of 1940, as amended (the "1940 Act"), as
to the proportion of its assets that it may invest in obligations of a single
issuer, the Fund will comply with the diversification requirements imposed by
the Internal Revenue Code of 1986, as amended (the "Code"), for qualification as
a regulated investment company.

As a matter of fundamental policy:

1.       The Fund may not borrow money, except as permitted under the 1940 Act,
         and as interpreted or modified by regulatory authority having
         jurisdiction, from time to time.

2.       The Fund may not issue senior securities, except as permitted under the
         1940 Act, as amended, and as interpreted or modified by regulatory
         authority having jurisdiction, from time to time.

3.       The Fund may not engage in the business of underwriting securities
         issued by others, except to the extent that the Fund may be deemed to
         be an underwriter in connection with the disposition of portfolio
         securities.

4.       The Fund may not purchase or sell real estate, which term does not
         include securities of companies which deal in real estate or mortgages
         or investments secured by real estate or interests therein, except that
         the Fund reserves freedom of action to hold and to sell real estate
         acquired as a result of the Fund's ownership of securities.

5.       The Fund may not purchase or sell commodities, except as permitted by
         the 1940 Act, as amended, and as interpreted or modified by the
         regulatory authority having jurisdiction, from time to time.

6.       The Fund may not make loans except as permitted under the 1940 Act, as
         amended, and as interpreted or modified by regulatory authority having
         jurisdiction, from time to time.

A fundamental policy may not be changed without the approval of a majority of
the outstanding voting securities of the Fund which, under the 1940 Act and the
rules thereunder and as used in this Statement of Additional Information, means
the lesser of (1) 67% or more of the voting securities present at such meeting,
if the holders of more than 50% of the outstanding voting securities of the Fund
are present in person or represented by proxy, or (2) more than 50% of the
outstanding voting securities of the Fund.

The Fund has voluntarily adopted certain policies and restrictions, which are
observed in the conduct of the Fund's affairs. These nonfundamental policies
represent the intentions of the Trustees based upon current circumstances.
Nonfundamental policies may be changed by the Trustees without shareholder
approval.



                                       1
<PAGE>

As a matter of nonfundamental policy:

(a)      The Fund may not purchase additional investment securities at any time
         during which outstanding borrowings exceed 5% of the total assets of
         the Fund.

(b)      The Fund may not purchase any security or enter into a repurchase
         agreement if, as a result, more than 15% of its net assets would be
         invested in repurchase agreements not entitling the holder to payment
         of principal and interest within seven days and in securities that are
         illiquid by virtue of legal or contractual restrictions on resale or
         the absence of a readily available market.

(c)      The Fund may not sell securities short unless it owns or has the right
         to obtain securities equivalent in kind and amount to the securities
         sold short, and provided that transactions in futures contracts and
         options are not deemed to constitute selling securities short.

(d)      The Fund may not purchase securities on margin, except to obtain such
         short-term credits as are necessary for the clearance of transactions
         and provided that margin payments in connection with futures contracts
         and options on futures contracts shall not constitute purchasing
         securities on margin.

(e)      The Fund may enter into futures contracts, and write and buy put and
         call options relating to futures contracts. The Fund may not, however,
         enter into leveraged futures transactions if it would be possible for
         the Fund to lose more money than it invested.

(f)      The Fund may not invest 25% or more of its total assets in securities
         of companies principally engaged in any one industry, except that the
         Fund may invest without limitation in securities of companies engaged
         principally in infrastructure-related companies.

(g)      The Fund may not acquire securities of registered open-end investment
         companies or registered unit investment trusts in reliance on Section
         12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act. The 1940 Act imposes
         additional restrictions on acquisition by the Fund of securities issued
         by insurance companies, broker-dealers, underwriters or investment
         advisors, and on transactions with affiliated persons as defined in the
         1940 Act. It also defines and forbids the creation of cross and
         circular ownership. Neither the SEC nor any other agency of the federal
         or state government participates in or supervises the management of the
         Fund or its investment practices or policies.

(h)      The Fund may not invest more than 15% of net assets in illiquid
         securities; the Fund will not purchase illiquid securities, including
         repurchase agreements maturing in more than seven days, if, as a result
         thereof, more than 15% of the Fund's net assets, valued at the time of
         the transaction, would be invested in such securities.

Fund Name. Under normal circumstances, the Fund invests at least 80% of its net
assets in the securities of US and non-US infrastructure-related companies. The
Fund considers a company to be an infrastructure-related company if at least 50%
of its assets are infrastructure assets or 50% of its gross income or net
profits are derived, directly or indirectly, from the ownership, operation,
management, utilization, construction or financing of infrastructure assets.

If market fluctuations or shareholder actions cause the Fund's investments to
fall below this percentage, the Fund will act to remedy the situation as
promptly as possible. However, the Fund will not be required to dispose of
portfolio holdings or purchase additional investments immediately if the Advisor
believes such action may expose the Fund to losses or unreasonable risks of
loss. Also, the Fund may occasionally depart from this percentage. For example,
the Fund may depart from this percentage to respond to unusually large cash
inflows or redemptions, or to avoid losses caused by adverse market, economic,
political or other conditions.

The Fund will provide its shareholders with at least sixty days' prior notice of
any change in the Fund's 80% investment policy described above.



                                       2
<PAGE>

                       INVESTMENT POLICIES AND TECHNIQUES

General

This section explains the extent to which the Advisor, RREEF America L.L.C. (the
"Subadvisor") and the sub-subadvisors (for purposes of the Investment Policies
and Techniques section the Advisor and Subadvisor and the sub-subadvisors will
be defined as the "Advisor") can use various investment vehicles and strategies
in managing the Fund's assets. Descriptions of the investment techniques and
risks associated with the Fund appear herein. In the case of the Fund's
principal investment strategies, these descriptions elaborate upon discussions
contained in the Prospectuses.

The Fund is a non-diversified series of the Trust, an open-end management
company which continuously offers and redeems shares at net asset value. A
non-diversified fund can invest a greater portion of its assets in a given
company. The Fund is a series of the type commonly known as a mutual fund. The
Fund offers the following classes of shares: Class A, Class C, Class S and
Institutional Class. Each class has its own features and policies. Class S
shares of the Fund are offered through a separate Statement of Additional
Information.

To meet federal income tax requirements for qualification as a regulated
investment company, the Fund must limit its investments so that at the close of
each quarter of its taxable year (1) no more than 25% of its total assets are
invested in the securities of a single issuer (other than the US government or a
regulated investment company), and (2) with respect to at least 50% of its total
assets, no more than 5% of its total assets are invested in the securities of a
single issuer.

In general, within the restrictions outlined here and in the Fund's
Prospectuses, the Advisor has broad powers to decide how to invest Fund assets,
including the power to hold them uninvested.

Investments are varied according to what is judged advantageous under changing
economic conditions. It is the Advisor's policy to retain maximum flexibility in
management without restrictive provisions as to the proportion of one or another
class of securities that may be held, subject to the investment restrictions
described herein.

Total return is part of the Fund's objective. As a result, the portfolio of the
Fund includes debt as well as equity securities.

So long as a sufficient number of acceptable securities are available, the
Advisor intends to keep the Fund fully invested. However, under exceptional
conditions, the Fund may assume a defensive position, temporarily investing all
or a substantial portion of its assets in cash or short-term securities. When
the Fund is invested for temporary defensive purposes, it may not achieve its
investment objective.

The Advisor may use stock index futures and options as a way to expose the
Fund's cash assets to the market while maintaining liquidity. However, the
Advisor may not leverage the Fund's portfolio, so there is no greater market
risk to the Fund than if it purchases stocks.

Investment Techniques

Descriptions in this Statement of Additional Information of a particular
investment practice or technique in which the Fund may engage (such as hedging,
etc.) or a financial instrument which the Fund may purchase (such as options,
forward foreign currency contracts, etc.) are meant to describe the spectrum of
investments that the Advisor, in its discretion, might, but is not required to,
use in managing the Fund's portfolio assets. The Advisor may, in its discretion,
at any time, employ such practice, technique or instrument for one or more funds
but not for all funds advised by it. Furthermore, it is possible that certain
types of financial instruments or investment techniques described herein may not
be available, permissible, economically feasible or effective for their intended
purposes in all markets. Certain practices, techniques or instruments may not be
principal activities of the Fund, but, to the extent employed, could, from time
to time, have a material impact on the Fund's performance.



                                       3
<PAGE>

Infrastructure Assets. The Fund seeks total return from both capital
appreciation and current income through investment in a global portfolio of
securities of infrastructure-related companies.

Under normal circumstances, the Fund invests at least 80% of its net assets in
the securities of US and non-US infrastructure-related companies. The Fund
considers a company to be an infrastructure-related company if at least 50% of
its assets are infrastructure assets or 50% of its gross income or net profits
are derived, directly or indirectly, from the ownership, operation, management,
utilization, construction or financing of infrastructure assets.

Infrastructure assets are physical assets, structures and networks that provide
necessary services and operations to society. Examples of infrastructure assets
include transportation assets (e.g., toll roads, bridges, tunnels, parking
facilities, railroads, rapid transit links, airports, refueling facilities and
seaports), utility assets (e.g., electric transmission and distribution lines,
power generation facilities, gas and water distribution facilities, sewage
treatment plants, broadcast and wireless towers, and cable and satellite
networks) and social assets (e.g., courthouses, hospitals, schools, correctional
facilities, stadiums and subsidized housing). The Fund will focus on investment
in companies with a direct investment in infrastructure assets and deemphasize
investment in companies that operate or utilize infrastructure assets in their
business (e.g., electric utilities, airlines) or companies with indirect
exposure to infrastructure investment (e.g., suppliers of construction
materials).

The Fund may invest in common, convertible and preferred stock, rights or
warrants to purchase common stock, debt securities and listed limited
partnership interests. Under normal circumstances, the majority of the Fund's
assets are invested in securities of issuers organized or located outside the US
or doing a substantial amount of business outside the US. The Fund allocates its
assets among various regions and countries, including exposure to emerging
market countries.

The Fund may also invest in unlisted securities provided that the portfolio
managers expect such securities to be listed on a recognized public stock
exchange or traded over the counter within six months from the time of
investment. In addition, while the Fund does not currently plan to hedge
international currency risk, the Fund may engage in foreign currency
transactions, including foreign currency forward contracts, options, swaps and
other similar transactions in connection with investments in securities of
non-US companies.

Asset-Backed Securities. Asset-backed securities may include pools of mortgages
("mortgage-backed securities"), loans, receivables or other assets. Payment of
principal and interest may be largely dependent upon the cash flows generated by
the assets backing the securities. For purposes of determining the percentage of
a Fund's total assets invested in securities of issuers having their principal
business activities in a particular industry, asset-backed securities will be
classified separately, based on the nature of the underlying assets, according
to the following categories: captive auto, diversified, retail and consumer
loans, captive equipment and business, business trade receivables, nuclear fuel
and capital and mortgage lending. Primarily, these securities may not have the
benefit of any security interest in the related assets. Credit card receivables
are generally unsecured and the debtors are entitled to the protection of a
number of state and federal consumer credit laws, many of which give such
debtors the right to set off certain amounts owed on the credit cards, thereby
reducing the balance due. There is the possibility that recoveries on
repossessed collateral may not, in some cases, be available to support payments
on these securities. Asset-backed securities are often backed by a pool of
assets representing the obligations of a number of different parties. To lessen
the effect of failures by obligors on underlying assets to make payments, the
securities may contain elements of credit support which fall into two
categories: (i) liquidity protection, and (ii) protection against losses
resulting from ultimate default by an obligor on the underlying assets.
Liquidity protection refers to the provision of advances, generally by the
entity administering the pool of assets, to ensure that the receipt of payments
on the underlying pool occurs in a timely fashion. Protection against losses
results from payment of the insurance obligations on at least a portion of the
assets in the pool. This protection may be provided through guarantees, policies
or letters of credit obtained by the issuer or sponsor from third parties,
through various means of structuring the transaction or through a combination of
such approaches. The Funds will not pay any additional or separate fees for
credit support. The degree of credit support provided for each issue is
generally based on historical information respecting the level of credit risk
associated with the underlying assets. Delinquency or loss in excess of that
anticipated or failure of the credit support could adversely affect the return
on an investment in such a security. The availability of asset-backed securities
may be affected by legislative or regulatory developments. It is possible that
such developments may require the Funds to dispose of any then existing holdings
of such securities.



                                       4
<PAGE>

Borrowing. As a matter of fundamental policy, a Fund will not borrow money,
except as permitted under the 1940 Act, and as interpreted or modified by
regulatory authority having jurisdiction, from time to time. While the Board
does not currently intend to borrow for investment leveraging purposes, if such
a strategy were implemented in the future it would increase the Fund's
volatility and the risk of loss in a declining market. Borrowing by the Fund
will involve special risk considerations. Although the principal of the Fund's
borrowings will be fixed, the Fund's assets may change in value during the time
a borrowing is outstanding, thus increasing relative exposure to capital risk.

Common Stocks. Common stock is issued by companies to raise cash for business
purposes and represents a proportionate interest in the issuing companies.
Therefore, the Fund participates in the success or failure of any company in
which it holds stock. The market value of common stock can fluctuate
significantly, reflecting the business performance of the issuing company,
investor perception and general economic and financial market movements. Despite
the risk of price volatility, however, common stocks have historically offered a
greater potential for long-term gain on investment, compared to other classes of
financial assets such as bonds or cash equivalents, although there can be no
assurance that this will be true in the future.

Convertible Securities. The Fund may invest in convertible securities, that is,
bonds, notes, debentures, preferred stocks and other securities which are
convertible into common stock. Investments in convertible securities can provide
an opportunity for capital appreciation and/or income through interest and
dividend payments by virtue of their conversion or exchange features.

The convertible securities in which the Fund may invest are either fixed income
or zero coupon debt securities which may be converted or exchanged at a stated
or determinable exchange ratio into underlying shares of common stock. The
exchange ratio for any particular convertible security may be adjusted from time
to time due to stock splits, dividends, spin-offs, other corporate distributions
or scheduled changes in the exchange ratio. Convertible debt securities and
convertible preferred stocks, until converted, have general characteristics
similar to both debt and equity securities. Although to a lesser extent than
with debt securities generally, the market value of convertible securities tends
to decline as interest rates increase and, conversely, tends to increase as
interest rates decline. In addition, because of the conversion or exchange
feature, the market value of convertible securities typically changes as the
market value of the underlying common stocks changes, and, therefore, also tends
to follow movements in the general market for equity securities. A unique
feature of convertible securities is that as the market price of the underlying
common stock declines, convertible securities tend to trade increasingly on a
yield basis, and so may not experience market value declines to the same extent
as the underlying common stock. When the market price of the underlying common
stock increases, the prices of the convertible securities tend to rise as a
reflection of the value of the underlying common stock, although typically not
as much as the underlying common stock. While no securities investments are
without risk, investments in convertible securities generally entail less risk
than investments in common stock of the same issuer.

As debt securities, convertible securities are investments which provide for a
stream of income (or in the case of zero coupon securities, accretion of income)
with generally higher yields than common stocks. Convertible securities
generally offer lower yields than non-convertible securities of similar quality
because of their conversion or exchange features.

Of course, like all debt securities, there can be no assurance of income or
principal payments because the issuers of the convertible securities may default
on their obligations.

Convertible securities generally are subordinated to other similar but
non-convertible securities of the same issuer, although convertible bonds, as
corporate debt obligations, enjoy seniority in right of payment to all equity
securities, and convertible preferred stock is senior to common stock, of the
same issuer. However, because of the subordination feature, convertible bonds
and convertible preferred stock typically have lower ratings than similar
non-convertible securities. Convertible securities may be issued as fixed income
obligations that pay current income or as zero coupon notes and bonds, including
Liquid Yield Option Notes ("LYONs"(TM)).

Equity Equivalents. In addition to investing in common stocks, the Fund may
invest in other equity securities and equity equivalents, including securities
that permit the Fund to receive an equity interest in an issuer, the opportunity
to acquire an equity interest in an issuer or the opportunity to receive a
return on its investment that permits the Fund


                                       5
<PAGE>

to benefit from the growth over time in the equity of an issuer. Examples of
equity securities and equity security equivalents include preferred stock,
convertible preferred stock and convertible debt securities.

The Fund will limit its holdings of convertible debt securities to those that,
at the time of purchase, are rated at least B- by the Standard & Poor's
Corporation ("S&P") or B3 by Moody's Investors Service ("Moody's"), or, if not
rated by S&P and Moody's, are of equivalent investment quality as determined by
the Advisor. The Fund's investments in convertible debt securities and other
high-yield/high-risk, nonconvertible debt securities rated below
investment-grade will comprise less than 20% of the Fund's net assets. Debt
securities rated below the four highest categories are not considered
investment-grade obligations. These securities have speculative characteristics
and present more credit risk than investment-grade obligations.

Equity equivalents also may include securities whose value or return is derived
from the value or return of a different security.

Debt Securities. When the Advisor believes that it is appropriate to do so in
order to achieve a Fund's objective of long-term capital appreciation, a Fund
may invest in debt securities, including bonds of private issuers. Portfolio
debt investments will be selected on the basis of, among other things, credit
quality, and the fundamental outlooks for currency, economic and interest rate
trends, taking into account the ability to hedge a degree of currency or local
bond price risk. A Fund may purchase "investment-grade" bonds, rated Aaa, Aa, A
or Baa by Moody's or AAA, AA, A or BBB by S&P or, if unrated, judged to be of
equivalent quality as determined by the Advisor.

The principal risks involved with investments in bonds include interest rate
risk, credit risk and pre-payment risk. Interest rate risk refers to the likely
decline in the value of bonds as interest rates rise. Generally, longer-term
securities are more susceptible to changes in value as a result of interest-rate
changes than are shorter-term securities. Credit risk refers to the risk that an
issuer of a bond may default with respect to the payment of principal and
interest. The lower a bond is rated, the more it is considered to be a
speculative or risky investment. Pre-payment risk is commonly associated with
pooled debt securities, such as mortgage-backed securities and asset backed
securities, but may affect other debt securities as well. When the underlying
debt obligations are prepaid ahead of schedule, the return on the security will
be lower than expected. Pre-payment rates usually increase when interest rates
are falling.

Convertible Debt Securities. A convertible debt security is a fixed-income
security that offers the potential for capital appreciation through a conversion
feature that enables the holder to convert the fixed-income security into a
stated number of shares of common stock. As fixed-income securities, convertible
debt securities provide a stable stream of income with generally higher yields
than common stocks. Because convertible debt securities offer the potential to
benefit from increases in the market price of the underlying common stock, they
generally offer lower yields than non-convertible securities of similar quality.
Like all fixed-income securities, there can be no assurance of current income
because the issuers of the convertible securities may default on their
obligations. In addition, there can be no assurance of capital appreciation
because the value of the underlying common stock will fluctuate.

Convertible debt securities generally are subordinated to other similar but
non-convertible debt securities of the same issuer, although convertible bonds,
as corporate debt obligations, enjoy seniority in right of payment to all equity
securities. Because of the subordination feature, however, convertible
securities typically have lower ratings than similar non-convertible securities.

Convertible debt securities that comprise part of the Fund's fixed-income
portfolio will be subject to the same limitations with respect to quality as
those described above under "Debt Securities."

Investment of Uninvested Cash Balances. The Fund may have cash balances that
have not been invested in portfolio securities ("Uninvested Cash"). Uninvested
Cash may result from a variety of sources, including dividends or interest
received from portfolio securities, unsettled securities transactions, reserves
held for investment strategy purposes, scheduled maturity of investments,
liquidation of investment securities to meet anticipated redemptions and
dividend payments, and new cash received from investors. Uninvested Cash may be
invested directly in money market instruments or other short-term debt
obligations. Pursuant to an Exemptive Order issued by the SEC, the Fund may use
Uninvested Cash to purchase shares of affiliated funds including money market
funds, short-term bond funds and Cash Management QP Trust or one or more future
entities for which the Advisor acts as trustee or


                                       6
<PAGE>

investment advisor that operate as cash management investment vehicles and that
are excluded from the definition of investment company pursuant to section
3(c)(1) or 3(c)(7) of the 1940 Act (collectively, the "Central Funds") in excess
of the limitations of Section 12(d)(1) of the 1940 Act. Investment by the Fund
in shares of the Central Funds will be in accordance with the Fund's investment
policies and restrictions as set forth in its registration statement.

Certain of the Central Funds comply with rule 2a-7 under the 1940 Act. The other
Central Funds are or will be short-term bond funds that invest in fixed-income
securities and maintain a dollar weighted average maturity of three years or
less. Each of the Central Funds will be managed specifically to maintain a
highly liquid portfolio, and access to them will enhance the Fund's ability to
manage Uninvested Cash.

The Fund will invest Uninvested Cash in Central Funds only to the extent that
the Fund's aggregate investment in the Central Funds does not exceed 25% of its
total assets. Purchase and sales of shares of Central Funds are made at net
asset value.

Eurodollar Obligations. Eurodollar bank obligations are US dollar-denominated
certificates of deposit and time deposits issued outside the US capital markets
by foreign branches of US banks and US branches of foreign banks. Eurodollar
obligations are subject to the same risks that pertain to domestic issues,
notably credit risk, market risk and liquidity risk. Additionally, Eurodollar
obligations are subject to certain sovereign risks.

Foreign Currencies. Because investments in foreign securities usually will
involve currencies of foreign countries, and because the Fund may hold foreign
currencies and forward contracts, futures contracts and options on foreign
currencies and foreign currency futures contracts, the value of the assets of
the Fund as measured in US dollars may be affected favorably or unfavorably by
changes in foreign currency exchange rates and exchange control regulations, and
the Fund may incur costs and experience conversion difficulties and
uncertainties in connection with conversions between various currencies.
Fluctuations in exchange rates may also affect the earning power and asset value
of the foreign entity issuing the security.

The strength or weakness of the US dollar against these currencies is
responsible for part of the Fund's investment performance. If the dollar falls
in value relative to the Japanese yen, for example, the dollar value of a
Japanese stock held in the portfolio will rise even though the price of the
stock remains unchanged. Conversely, if the dollar rises in value relative to
the yen, the dollar value of the Japanese stock will fall. Many foreign
currencies have experienced significant devaluation relative to the dollar.

Although the Fund values its assets daily in terms of US dollars, it does not
intend to convert its holdings of foreign currencies into US dollars on a daily
basis. It will do so from time to time, and investors should be aware of the
costs of currency conversion. Although foreign exchange dealers do not charge a
fee for conversion, they do realize a profit based on the difference (the
"spread") between the prices at which they are buying and selling various
currencies. Thus, a dealer may offer to sell a foreign currency to the Fund at
one rate, while offering a lesser rate of exchange should the Fund desire to
resell that currency to the dealer. The Fund will conduct its foreign currency
exchange transactions either on a spot (i.e., cash) basis at the spot rate
prevailing in the foreign currency exchange market, or through entering into
options or forward or futures contracts to purchase or sell foreign currencies.

Foreign Fixed Income Securities. Since most foreign fixed income securities are
not rated, the Fund will invest in foreign fixed income securities based on the
Advisor's analysis without relying on published ratings. Since such investments
will be based upon the Advisor's analysis rather than upon published ratings,
achievement of the Fund's goals may depend more upon the abilities of the
Advisor than would otherwise be the case.

The value of the foreign fixed income securities held by the Fund, and thus the
net asset value of the Fund's shares, generally will fluctuate with (a) changes
in the perceived creditworthiness of the issuers of those securities, (b)
movements in interest rates, and (c) changes in the relative values of the
currencies in which the Fund's investments in fixed income securities are
denominated with respect to the US Dollar. The extent of the fluctuation will
depend on various factors, such as the average maturity of the Fund's
investments in foreign fixed income securities, and the extent to which the Fund
hedges its interest rate, credit and currency exchange rate risks. A longer
average maturity generally is associated with a higher level of volatility in
the market value of such securities in response to changes in market conditions.



                                       7
<PAGE>

Investments in sovereign debt, including Brady Bonds (Brady Bonds are debt
securities issued under a plan implemented to allow debtor nations to
restructure their outstanding commercial bank indebtedness), involve special
risks. Foreign governmental issuers of debt or the governmental authorities that
control the repayment of the debt may be unable or unwilling to repay principal
or pay interest when due. In the event of default, there may be limited or no
legal recourse in that, generally, remedies for defaults must be pursued in the
courts of the defaulting party. Political conditions, especially a sovereign
entity's willingness to meet the terms of its fixed income securities, are of
considerable significance. Also, there can be no assurance that the holders of
commercial bank loans to the same sovereign entity may not contest payments to
the holders of sovereign debt in the event of default under commercial bank loan
agreements. In addition, there is no bankruptcy proceeding with respect to
sovereign debt on which a sovereign has defaulted, and the Fund may be unable to
collect all or any part of its investment in a particular issue. Foreign
investment in certain sovereign debt is restricted or controlled to varying
degrees, including requiring governmental approval for the repatriation of
income, capital or proceed of sales by foreign investors. These restrictions or
controls may at times limit or preclude foreign investment in certain sovereign
debt or increase the costs and expenses of the Fund.

Sovereign debt of emerging market governmental issuers is to be considered
speculative. Emerging market governmental issuers are among the largest debtors
to commercial banks, foreign governments, international financial organizations
and other financial institutions. Certain emerging market governmental issuers
have not been able to make payments of interest on or principal of debt
obligations as those payments have come due. There is a history of defaults with
respect to commercial bank loans by public and private entities issuing
sovereign debt. All or a portion of the interest payments and/or principal
repayment with respect to sovereign debt may be uncollateralized. Obligations
arising from past restructuring agreements may affect the economic performance
and political and social stability of those issuers.

The ability of emerging market country governmental issuers to make timely
payments on their obligations is likely to be influenced strongly by the
issuer's balance of payments, including export performance, and its access to
international credits and investments. An emerging market whose exports are
concentrated in a few commodities could be vulnerable to a decline in the
international prices of one or more of those commodities. Increased
protectionism on the part of an emerging market's trading partners could also
adversely affect the country's exports and diminish its trade account surplus,
if any. To the extent that emerging markets receive payment for its exports in
currencies other than dollars or non-emerging market currencies, its ability to
make debt payments denominated in dollars or non-emerging market currencies
could be affected.

Another factor bearing on the ability of emerging market countries to repay debt
obligations is the level of international reserves of the country. Fluctuations
in the level of these reserves affect the amount of foreign exchange readily
available for external debt payments and thus could have a bearing on the
capacity of emerging market countries to make payments on these debt
obligations.

To the extent that an emerging market country cannot generate a trade surplus,
it must depend on continuing loans from foreign governments, multilateral
organizations or private commercial banks, aid payments from foreign governments
and inflows of foreign investment. The access of emerging markets to these forms
of external funding may not be certain, and a withdrawal of external funding
could adversely affect the capacity of emerging market country governmental
issuers to make payments on their obligations. In addition, the cost of
servicing emerging market debt obligations can be affected by a change in
international interest rates since the majority of these obligations carry
interest rates that are adjusted periodically based upon international rates.

Foreign Investment. Foreign securities are normally denominated and traded in
foreign currencies. As a result, the value of the Fund's foreign investments and
the value of its shares may be affected favorably or unfavorably by changes in
currency exchange rates relative to the US dollar. There may be less information
publicly available about a foreign issuer than about a US issuer, and foreign
issuers may not be subject to accounting, auditing and financial reporting
standards and practices comparable to those in the US. The securities of some
foreign issuers are less liquid and at times more volatile than securities of
comparable US issuers. Foreign brokerage commissions and other fees are also
generally higher than in the US. Foreign settlement procedures and trade
regulations may involve certain risks (such as delay in payment or delivery of
securities or in the recovery of the Fund's assets held abroad) and expenses not
present in the settlement of investments in US markets. Payment for securities
without delivery may be required in certain foreign markets.



                                       8
<PAGE>

In addition, foreign securities may be subject to the risk of nationalization or
expropriation of assets, imposition of currency exchange controls or
restrictions on the repatriation of foreign currency, confiscatory taxation,
political or financial instability and diplomatic developments which could
affect the value of the Fund's investments in certain foreign countries.
Governments of many countries have exercised and continue to exercise
substantial influence over many aspects of the private sector through the
ownership or control of many companies, including some of the largest in these
countries. As a result, government actions in the future could have a
significant effect on economic conditions which may adversely affect prices of
certain portfolio securities. There is also generally less government
supervision and regulation of stock exchanges, brokers, and listed companies
than in the US. Dividends or interest on, or proceeds from the sale of, foreign
securities may be subject to foreign withholding taxes, and special US tax
considerations may apply. Moreover, foreign economies may differ favorably or
unfavorably from the US economy in such respects as growth of gross national
product, rate of inflation, capital reinvestment, resource self-sufficiency and
balance of payments position.

Legal remedies available to investors in certain foreign countries may be more
limited than those available with respect to investments in the US or in other
foreign countries. The laws of some foreign countries may limit the Fund's
ability to invest in securities of certain issuers organized under the laws of
those foreign countries.

Of particular importance, many foreign countries are heavily dependent upon
exports, particularly to developed countries, and, accordingly, have been and
may continue to be adversely affected by trade barriers, managed adjustments in
relative currency values, and other protectionist measures imposed or negotiated
by the US and other countries with which they trade. These economies also have
been and may continue to be negatively impacted by economic conditions in the US
and other trading partners, which can lower the demand for goods produced in
those countries.

The risks described above, including the risks of nationalization or
expropriation of assets, typically are increased in connection with investments
in `emerging markets.' For example, political and economic structures in these
countries may be in their infancy and developing rapidly, and such countries may
lack the social, political and economic stability characteristic of more
developed countries (including amplified risk of war and terrorism). Certain of
these countries have in the past failed to recognize private property rights and
have at times nationalized and expropriated the assets of private companies.
Investments in emerging markets may be considered speculative.

The currencies of certain emerging market countries have experienced
devaluations relative to the US dollar, and future devaluations may adversely
affect the value of assets denominated in such currencies. In addition, currency
hedging techniques may be unavailable in certain emerging market countries. Many
emerging market countries have experienced substantial, and in some periods
extremely high, rates of inflation or deflation for many years, and future
inflation may adversely affect the economies and securities markets of such
countries.

In addition, unanticipated political or social developments may affect the value
of investments in emerging markets and the availability of additional
investments in these markets. Any change in the leadership or politics of
emerging market countries, or the countries that exercise a significant
influence over those countries, may halt the expansion of or reverse the
liberalization of foreign investment policies now occurring and adversely affect
existing investment opportunities. The small size, limited trading volume and
relative inexperience of the securities markets in these countries may make
investments in securities traded in emerging markets illiquid and more volatile
than investments in securities traded in more developed countries. For example,
limited market size may cause prices to be unduly influenced by traders who
control large positions. In addition, the Fund may be required to establish
special custodial or other arrangements before making investments in securities
traded in emerging markets. There may be little financial or accounting
information available with respect to issuers of emerging market securities, and
it may be difficult as a result to assess the value of prospects of an
investment in such securities.

The risk also exists that an emergency situation may arise in one or more
emerging markets as a result of which trading of securities may cease or may be
substantially curtailed and prices for the Fund's securities in such markets may
not be readily available. The Fund may suspend redemption of its shares for any
period during which an emergency exists, as determined by the SEC. Accordingly
if a Fund believes that appropriate circumstances exist, it will promptly apply
to the SEC for a determination that an emergency is present. During the period
commencing from a Fund's identification of such condition until the date of the
SEC action, the Fund's securities in the affected markets will be valued at fair
value determined in good faith by or under the direction of the Fund's Board.



                                       9
<PAGE>

Certain of the foregoing risks may also apply to some extent to securities of US
issuers that are denominated in foreign currencies or that are traded in foreign
markets, or securities of US issuers having significant foreign operations.

High Yield/High Risk Bonds. The Fund may also purchase debt securities which are
rated below investment-grade (commonly referred to as "junk bonds"), that is,
rated below Baa by Moody's or below BBB by S&P and unrated securities judged to
be of equivalent quality as determined by the Advisor. These securities usually
entail greater risk (including the possibility of default or bankruptcy of the
issuers of such securities), generally involve greater volatility of price and
risk to principal and income, and may be less liquid, than securities in the
higher rating categories. The lower the ratings of such debt securities, the
more their risks render them like equity securities. Securities rated D may be
in default with respect to payment of principal or interest.

Issuers of such high yielding securities often are highly leveraged and may not
have available to them more traditional methods of financing. Therefore, the
risk associated with acquiring the securities of such issuers generally is
greater than is the case with higher rated securities. For example, during an
economic downturn or a sustained period of rising interest rates, highly
leveraged issuers of high yield securities may experience financial stress.
During such periods, such issuers may not have sufficient revenues to meet their
interest payment obligations. The issuer's ability to service its debt
obligations may also be adversely affected by specific corporate developments,
or the issuer's inability to meet specific projected business forecasts, or the
unavailability of additional financing. The risk of loss from default by the
issuer is significantly greater for the holders of high yield securities because
such securities are generally unsecured and are often subordinated to other
creditors of the issuer. Prices and yields of high yield securities will
fluctuate over time and, during periods of economic uncertainty, volatility of
high yield securities may adversely affect the Fund's net asset value. In
addition, investments in high yield zero coupon or pay-in-kind bonds, rather
than income-bearing high yield securities, may be more speculative and may be
subject to greater fluctuations in value due to changes in interest rates.

The Fund may have difficulty disposing of certain high yield (high risk)
securities because they may have a thin trading market. Because not all dealers
maintain markets in all high yield securities, the Fund anticipates that such
securities could be sold only to a limited number of dealers or institutional
investors. The lack of a liquid secondary market may have an adverse effect on
the market price and the Fund's ability to dispose of particular issues and may
also make it more difficult for the Fund to obtain accurate market quotations
for purposes of valuing the Fund's assets. Market quotations generally are
available on many high yield issues only from a limited number of dealers and
may not necessarily represent firm bids of such dealers or prices for actual
sales. Adverse publicity and investor perceptions may decrease the values and
liquidity of high yield securities. These securities may also involve special
registration responsibilities, liabilities and costs, and liquidity and
valuation difficulties.

Credit quality in the high-yield securities market can change suddenly and
unexpectedly, and even recently issued credit ratings may not fully reflect the
actual risks posed by a particular high-yield security. For these reasons, it is
generally the policy of the Advisor not to rely exclusively on ratings issued by
established credit rating agencies, but to supplement such ratings with its own
independent and on-going review of credit quality. The achievement of the Fund's
investment objective by investment in such securities may be more dependent on
the Advisor's credit analysis than is the case for higher quality bonds. Should
the rating of a portfolio security be downgraded, the Advisor will determine
whether it is in the best interests of the Fund to retain or dispose of such
security.

Illiquid Securities and Restricted Securities. The Fund may purchase securities
that are subject to legal or contractual restrictions on resale ("restricted
securities"). Generally speaking, restricted securities may be sold (i) only to
qualified institutional buyers; (ii) in a privately negotiated transaction to a
limited number of purchasers; (iii) in limited quantities after they have been
held for a specified period of time and other conditions are met pursuant to an
exemption from registration; or (iv) in a public offering for which a
registration statement is in effect under the Securities Act of 1933, as amended
(the "1933 Act"). Issuers of restricted securities may not be subject to the
disclosure and other investor protection requirements that would be applicable
if their securities were publicly traded.

Restricted securities are often illiquid, but they may also be liquid. For
example, restricted securities that are eligible for resale under Rule 144A are
often deemed to be liquid.



                                       10
<PAGE>

The Trust's Board has approved guidelines for use by the Advisor in determining
whether a security is liquid or illiquid. Among the factors the Advisor may
consider in reaching liquidity decisions relating to Rule 144A securities are:
(1) the frequency of trades and quotes for the security; (2) the number of
dealers wishing to purchase or sell the security and the number of other
potential purchasers; (3) dealer undertakings to make a market in the security;
and (4) the nature of the security and the nature of the market for the security
(i.e., the time needed to dispose of the security, the method of soliciting
offers, and the mechanics of the transfer. Issuers of restricted securities may
not be subject to the disclosure and other investor protection requirement that
would be applicable if their securities were publicly traded. Where a
registration statement is required for the resale of restricted securities, the
Fund may be required to bear all or part of the registration expenses. The Fund
may be deemed to be an "underwriter" for purposes of the 1933 Act, when selling
restricted securities to the public and, in such event, the Fund may be liable
to purchasers of such securities if the registration statement prepared by the
issuer is materially inaccurate or misleading.

The Fund may also purchase securities that are not subject to legal or
contractual restrictions on resale, but that are deemed illiquid. Such
securities may be illiquid, for example, because there is a limited trading
market for them.

The Fund may be unable to sell a restricted or illiquid security. In addition,
it may be more difficult to determine a market value for restricted or illiquid
securities. Moreover, if adverse market conditions were to develop during the
period between the Fund's decision to sell a restricted or illiquid security and
the point at which the Fund is permitted or able to sell such security, the Fund
might obtain a price less favorable than the price that prevailed when it
decided to sell.

IPO Risk. Securities issued through an initial public offering (IPO) can
experience an immediate drop in value if the demand for the securities does not
continue to support the offering price. Information about the issuers of IPO
securities is also difficult to acquire since they are new to the market and may
not have lengthy operating histories. The Fund may engage in short-term trading
in connection with its IPO investments, which could produce higher trading costs
and adverse tax consequences. The number of securities issued in an IPO is
limited, so it is likely that IPO securities will represent a smaller component
of the Fund's portfolio as the Fund's assets increase (and thus have a more
limited effect on the Fund's performance).

Impact of Large Redemptions and Purchases of Fund Shares. From time to time,
shareholders of the Fund (which may include affiliated and/or non-affiliated
registered investment companies that invest in the Fund) may make relatively
large redemptions or purchases of Fund shares. These transactions may cause the
Fund to have to sell securities or invest additional cash, as the case may be.
While it is impossible to predict the overall impact of these transactions over
time, there could be adverse effects on the Fund's performance to the extent
that the Fund may be required to sell securities or invest cash at times when it
would not otherwise do so. These transactions could also accelerate the
realization of taxable income if sales of securities resulted in capital gains
or other income and could also increase transaction costs, which may impact the
Fund's expense ratio.

Impact of Sub-Prime Mortgage Market. The Fund may invest in companies that may
be affected by the downturn in the sub-prime mortgage lending market in the US.
Sub-prime loans, which tend to have higher interest rates, are made to borrowers
who do not qualify for prime rate loans because of their low credit ratings or
other factors that suggest that they have a higher probability of defaulting.
The downturn in the sub-prime mortgage-lending market has had, and may continue
to have, a far-reaching impact on the broader securities market, especially in
the sub-prime, asset-backed and other debt related securities markets. In
addition to performance issues, the reduced investor demand for sub-prime,
asset-backed and other debt related securities as a result of the downturn has
created liquidity and valuation issues for these securities. The Fund's
investments related to or impacted by the downturn in the sub-prime mortgage
lending market may cause the overall value of the Fund to decrease.

Interfund Borrowing and Lending Program. The Fund has received exemptive relief
from the SEC, which permits the Fund to participate in an interfund lending
program among certain investment companies advised by the Advisor. The interfund
lending program allows the participating funds to borrow money from and loan
money to each other for temporary or emergency purposes. The program is subject
to a number of conditions designed to ensure fair and equitable treatment of all
participating funds, including the following: (1) no fund may borrow money
through the program unless it receives a more favorable interest rate than a
rate approximating the lowest interest rate at which bank loans would be
available to any of the participating funds under a loan agreement; and (2)


                                       11
<PAGE>

no fund may lend money through the program unless it receives a more favorable
return than that available from an investment in repurchase agreements and, to
the extent applicable, money market cash sweep arrangements. In addition, the
Fund may participate in the program only if and to the extent that such
participation is consistent with the fund's investment objectives and policies
(for instance, money market funds would normally participate only as lenders and
tax exempt funds only as borrowers). Interfund loans and borrowings may extend
only overnight, but could have a maximum duration of seven days. Loans may be
called on one day's notice. The Fund may have to borrow from a bank at a higher
interest rate if an interfund loan is called or not renewed. Any delay in
repayment to a lending fund could result in a lost investment opportunity or
additional costs. The program is subject to the oversight and periodic review of
the Board. To the extent the Fund is actually engaged in borrowing through the
interfund lending program, the Fund will comply with its nonfundamental policy
on borrowing.

Investment Company Securities. The Fund may acquire securities of other
investment companies to the extent consistent with its investment objective and
subject to the limitations of the 1940 Act. The Fund will indirectly bear its
proportionate share of any management fees and other expenses paid by such other
investment companies.

For example, the Fund may invest in a variety of investment companies which seek
to track the composition and performance of specific indexes or a specific
portion of an index. These index-based investments hold substantially all of
their assets in securities representing their specific index. Accordingly, the
main risk of investing in index-based investments is the same as investing in a
portfolio of equity securities comprising the index. The market prices of
index-based investments will fluctuate in accordance with both changes in the
market value of their underlying portfolio securities and due to supply and
demand for the instruments on the exchanges on which they are traded (which may
result in their trading at a discount or premium to their NAVs). Index-based
investments may not replicate exactly the performance of their specified index
because of transaction costs and because of the temporary unavailability of
certain component securities of the index.

Examples of index-based investments include:

SPDRs(R): SPDRs, an acronym for "Standard & Poor's Depositary Receipts," are
based on the S&P 500 Composite Stock Price Index. They are issued by the SPDR
Trust, a unit investment trust that holds shares of substantially all the
companies in the S&P 500 in substantially the same weighting and seeks to
closely track the price performance and dividend yield of the Index.

MidCap SPDRs(R): MidCap SPDRs are based on the S&P MidCap 400 Index. They are
issued by the MidCap SPDR Trust, a unit investment trust that holds a portfolio
of securities consisting of substantially all of the common stocks in the S&P
MidCap 400 Index in substantially the same weighting and seeks to closely track
the price performance and dividend yield of the Index.

Select Sector SPDRs(R): Select Sector SPDRs are based on a particular sector or
group of industries that are represented by a specified Select Sector Index
within the Standard & Poor's Composite Stock Price Index. They are issued by The
Select Sector SPDR Trust, an open-end management investment company with nine
portfolios that each seeks to closely track the price performance and dividend
yield of a particular Select Sector Index.

DIAMONDS(SM): DIAMONDS are based on the Dow Jones Industrial Average(SM). They
are issued by the DIAMONDS Trust, a unit investment trust that holds a portfolio
of all the component common stocks of the Dow Jones Industrial Average and seeks
to closely track the price performance and dividend yield of the Dow.

Nasdaq-100 Shares: Nasdaq-100 Shares are based on the Nasdaq 100 Index. They are
issued by the Nasdaq-100 Trust, a unit investment trust that holds a portfolio
consisting of substantially all of the securities, in substantially the same
weighting, as the component stocks of the Nasdaq 100 Index and seeks to closely
track the price performance and dividend yield of the Index.

Lending of Portfolio Securities. The Fund may lend its investment securities to
approved institutional borrowers who need to borrow securities in order to
complete certain transactions, such as covering short sales, avoiding failures
to deliver securities or completing arbitrage operations. By lending its
investment securities, the Fund attempts to increase its net investment income
through the receipt of interest on the loan. Any gain or loss in the


                                       12
<PAGE>

market price of the securities loaned that might occur during the term of the
loan would belong to the Fund. The Fund may lend its investment securities so
long as the terms, structure and the aggregate amount of such loans are not
inconsistent with the 1940 Act or the rules and regulations or interpretations
of the SEC thereunder, which currently require that (a) the borrower pledge and
maintain with the Fund collateral consisting of liquid, unencumbered assets
having a value at all times not less than 100% of the value of the securities
loaned, (b) the borrower add to such collateral whenever the price of the
securities loaned rises (i.e., the borrower "marks to the market" on a daily
basis), (c) the loan be made subject to termination by the Fund at any time, and
(d) the Fund receives reasonable interest on the loan (which may include the
Fund investing any cash collateral in interest bearing short-term investments),
and distributions on the loaned securities and any increase in their market
value. There may be risks of delay in recovery of the securities or even loss of
rights in the collateral should the borrower of the securities fail financially.
However, loans will be made only to borrowers selected by the Fund's delegate
after a commercially reasonable review of relevant facts and circumstances,
including the creditworthiness of the borrower.

At the present time, the staff of the SEC does not object if an investment
company pays reasonable negotiated fees in connection with loaned securities, so
long as such fees are set forth in a written contract and approved by the
investment company's Board of Trustees/Directors. In addition, voting rights may
pass with the loaned securities, but if a material event occurs affecting an
investment on loan, the loan must be called and the securities voted. Pursuant
to an exemptive order granted by the SEC, cash collateral received by the Fund
may be invested in a money market fund managed by the Advisor (or one of its
affiliates).

Micro-Cap Company Risk. While, historically, micro-capitalization company stocks
have outperformed the stocks of large companies, the former have customarily
involved more investment risk as well. There can be no assurance that this will
continue to be true in the future. Micro-capitalization companies may have
limited product lines, markets or financial resources; may lack management depth
or experience; and may be more vulnerable to adverse general market or economic
developments than large companies. The prices of micro-capitalization company
securities are often more volatile than prices associated with large company
issues, and can display abrupt or erratic movements at times, due to limited
trading volumes and less publicly available information.

Also, because micro-capitalization companies normally have fewer shares
outstanding and these shares trade less frequently than large companies, it may
be more difficult for the Fund to buy and sell significant amounts of such
shares without an unfavorable impact on prevailing market prices.

Some of the companies in which the Fund may invest may distribute, sell or
produce products which have recently been brought to market and may be dependent
on key personnel. The securities of micro-capitalization companies are often
traded over-the-counter and may not be traded in the volumes typical on a
national securities exchange. Consequently, in order to sell this type of
holding, the Fund may need to discount the securities from recent prices or
dispose of the securities over a long period of time.

Non-diversification. The Fund is classified as a non-diversified management
investment company under the 1940 Act, which means that the Fund is not limited
by the 1940 Act in the proportion of its assets that it may invest in the
obligations of a single issuer. The investment of a large percentage of the
Fund's assets in the securities of a small number of issuers may cause the
Fund's share price to fluctuate more than that of a diversified fund.

Participation Interests. The Fund may purchase from financial institutions
participation interests in securities in which the Fund may invest. A
participation interest gives the Fund an undivided interest in the security in
the proportion that the Fund's participation interest bears to the principal
amount of the security. These instruments may have fixed, floating or variable
interest rates, with remaining maturities of 397 days or less. If the
participation interest is unrated, or has been given a rating below that which
is permissible for purchase by the Fund, the participation interest will be
backed by an irrevocable letter of credit or guarantee of a bank, or the payment
obligation otherwise will be collateralized by US Government securities, or, in
the case of unrated participation interest, determined by the Advisor to be of
comparable quality to those instruments in which the Fund may invest. For
certain participation interests, the Fund will have the right to demand payment,
on not more than seven days' notice, for all or any part of the Fund's
participation interests in the security, plus accrued interest. As to these
instruments, the Fund generally intends to exercise its right to demand payment
only upon a default under the terms of the security.



                                       13
<PAGE>

Privatized Enterprises. Investments in foreign securities may include securities
issued by enterprises that have undergone or are currently undergoing
privatization. The governments of certain foreign countries have, to varying
degrees, embarked on privatization programs contemplating the sale of all or
part of their interests in state enterprises. The Fund's investments in the
securities of privatized enterprises may include privately negotiated
investments in a government or state-owned or controlled company or enterprise
that has not yet conducted an initial equity offering, investments in the
initial offering of equity securities of a state enterprise or former state
enterprise and investments in the securities of a state enterprise following its
initial equity offering.

In certain jurisdictions, the ability of foreign entities, such as the Fund, to
participate in privatizations may be limited by local law, or the price or terms
on which the Fund may be able to participate may be less advantageous than for
local investors. Moreover, there can be no assurance that governments that have
embarked on privatization programs will continue to divest their ownership of
state enterprises, that proposed privatizations will be successful or that
governments will not re-nationalize enterprises that have been privatized.

In the case of the enterprises in which the Fund may invest, large blocks of the
stock of those enterprises may be held by a small group of stockholders, even
after the initial equity offerings by those enterprises. The sale of some
portion or all of those blocks could have an adverse effect on the price of the
stock of any such enterprise.

Prior to making an initial equity offering, most state enterprises or former
state enterprises go through an internal reorganization or management. Such
reorganizations are made in an attempt to better enable these enterprises to
compete in the private sector. However, certain reorganizations could result in
a management team that does not function as well as an enterprise's prior
management and may have a negative effect on such enterprise. In addition, the
privatization of an enterprise by its government may occur over a number of
years, with the government continuing to hold a controlling position in the
enterprise even after the initial equity offering for the enterprise.

Prior to privatization, most of the state enterprises in which the Fund may
invest enjoy the protection of and receive preferential treatment from the
respective sovereigns that own or control them. After making an initial equity
offering, these enterprises may no longer have such protection or receive such
preferential treatment and may become subject to market competition from which
they were previously protected. Some of these enterprises may not be able to
operate effectively in a competitive market and may suffer losses or experience
bankruptcy due to such competition.

Real Estate Investment Trusts ("REITs"). Each Fund may invest in REITs. REITs
are sometimes informally characterized as equity REITs, mortgage REITs and
hybrid REITs. Investment in REITs may subject a Fund to risks associated with
the direct ownership of real estate, such as decreases in real estate values,
overbuilding, increased competition and other risks related to local or general
economic conditions, increases in operating costs and property taxes, changes in
zoning laws, casualty or condemnation losses, possible environmental
liabilities, regulatory limitations on rent and fluctuations in rental income.
Equity REITs generally experience these risks directly through fee or leasehold
interests, whereas mortgage REITs generally experience these risks indirectly
through mortgage interests, unless the mortgage REIT forecloses on the
underlying real estate. Changes in interest rates may also affect the value of a
Fund's investment in REITs. For instance, during periods of declining interest
rates, certain mortgage REITs may hold mortgages that the mortgagors elect to
prepay, which prepayment may diminish the yield on securities issued by those
REITs.

Certain REITs have relatively small market capitalizations, which may tend to
increase the volatility of the market price of their securities. Furthermore,
REITs are dependent upon specialized management skills, have limited
diversification and are, therefore, subject to risks inherent in operating and
financing a limited number of projects. REITs are also subject to heavy cash
flow dependency, defaults by borrowers and the possibility of failing to qualify
for tax-free pass-through of income under the Internal Revenue Code of 1986, as
amended (the "Code"), and to maintain exemption from the registration
requirements of the 1940 Act. By investing in REITs indirectly through a Fund, a
shareholder will bear not only his or her proportionate share of the expenses of
a Fund, but also, indirectly, similar expenses of the REITs. In addition, REITs
depend generally on their ability to generate cash flow to make distributions to
shareholders.



                                       14
<PAGE>

Repurchase Agreements. The Fund may enter in repurchase agreements pursuant to
its investment guidelines. In a repurchase agreement, the Fund acquires
ownership of a security and simultaneously commits to resell that security to
the seller, typically a bank or broker/dealer.

A repurchase agreement provides a means for the Fund to earn income on funds for
periods as short as overnight. It is an arrangement under which the purchaser
(i.e., the Fund) acquires a security ("Obligation") and the seller agrees, at
the time of sale, to repurchase the Obligation at a specified time and price.
Securities subject to a repurchase agreement are held in a segregated account
and, as described in more detail below, the value of such securities is kept at
least equal to the repurchase price on a daily basis. The repurchase price may
be higher than the purchase price, the difference being income to the Fund, or
the purchase and repurchase prices may be the same, with interest at a stated
rate due to the Fund together with the repurchase price upon repurchase. In
either case, the income to the Fund is unrelated to the interest rate on the
Obligation itself. Obligations will be held by the Custodian or in the Federal
Reserve Book Entry system.

It is not clear whether a court would consider the Obligation purchased by the
Fund subject to a repurchase agreement as being owned by the Fund or as being
collateral for a loan by the Fund to the seller. In the event of the
commencement of bankruptcy or insolvency proceedings with respect to the seller
of the Obligation before repurchase of the Obligation under a repurchase
agreement, the Fund may encounter delay and incur costs before being able to
sell the security. Delays may involve loss of interest or decline in price of
the Obligation. If the court characterizes the transaction as a loan and the
Fund has not perfected a security interest in the Obligation, the Fund may be
required to return the Obligation to the seller's estate and be treated as an
unsecured creditor of the seller. As an unsecured creditor, the Fund would be at
risk of losing some or all of the principal and income involved in the
transaction. As with any unsecured debt instrument purchased for the Fund, the
Advisor seeks to minimize the risk of loss through repurchase agreements by
analyzing the creditworthiness of the obligor, in this case the seller of the
Obligation. Apart from the risk of bankruptcy or insolvency proceedings, there
is also the risk that the seller may fail to repurchase the Obligation, in which
case the Fund may incur a loss if the proceeds to the Fund of the sale to a
third party are less than the repurchase price. However, if the market value
(including interest) of the Obligation subject to the repurchase agreement
becomes less than the repurchase price (including interest), the Fund will
direct the seller of the Obligation to deliver additional securities so that the
market value (including interest) of all securities subject to the repurchase
agreement will equal or exceed the repurchase price.

The Fund will limit repurchase agreement transactions to securities issued by
the US government and its agencies and instrumentalities and will enter into
such transactions with those banks and securities dealers who are deemed
creditworthy pursuant to criteria adopted by the Fund's Board of Trustees or its
designee.

The Fund will not invest more than 15% of its net assets in repurchase
agreements maturing in more than seven days.

Repurchase Commitments. The Fund may enter into repurchase commitments with any
party deemed creditworthy by the Advisor, including foreign banks and
broker/dealers, if the transaction is entered into for investment purposes and
the counterparty's creditworthiness is at least equal to that of issuers of
securities which the Fund may purchase. Such transactions may not provide the
Fund with collateral marked-to-market during the term of the commitment.

Reverse Repurchase Agreements. The Fund may enter into "reverse repurchase
agreements," which are repurchase agreements in which the Fund, as the seller of
the securities, agrees to repurchase them at an agreed time and price. The Fund
maintains a segregated account in connection with outstanding reverse repurchase
agreements. The Fund will enter into reverse repurchase agreements only when the
Advisor believes that the interest income to be earned from the investment of
the proceeds of the transaction will be greater than the interest expense of the
transaction. Such transactions may increase fluctuations in the market value of
Fund assets and its yield.

Short Sales. The Fund may engage in short sales, if, at the time of the short
sale, the Fund owns or has the right to acquire securities equivalent in kind
and amount to the securities being sold short.

In a short sale, the seller does not immediately deliver the securities sold and
is said to have a short position in those securities until delivery occurs. To
make delivery to the purchaser, the executing broker borrows the securities
being sold short on behalf of the seller. While the short position is
maintained, the seller collateralizes its obligation to


                                       15
<PAGE>

deliver the securities sold short in an amount equal to the proceeds of the
short sale plus an additional margin amount established by the Board of
Governors of the Federal Reserve. If the Fund engages in a short sale, the
collateral account will be maintained by State Street Bank and Trust Company,
the Fund's custodian. While the short sale is open, the Fund will maintain, in a
segregated custodial account, an amount of securities convertible into, or
exchangeable for, such equivalent securities at no additional cost. These
securities would constitute the Fund's long position.

The Fund may make a short sale, as described above, when it wants to sell the
security it owns at a current attractive price, but also wishes to defer
recognition of gain or loss for federal income tax purposes. There will be
certain additional transaction costs associated with short sales, but the Fund
will endeavor to offset these costs with returns from the investment of the cash
proceeds of short sales.

Short-Term Securities. In order to meet anticipated redemptions, to hold pending
the purchase of additional securities for the Fund's portfolio, or, in some
cases, for temporary defensive purposes, the Fund may invest a portion (up to
100%) of its assets in money market and other short-term securities. When the
Fund is invested for temporary defensive purposes, it may not achieve or pursue
its investment objective.

Examples of short-term securities include:

o        Securities issued or guaranteed by the US government and its agencies
         and instrumentalities;

o        Commercial Paper;

o        Certificates of Deposit and Euro Dollar Certificates of Deposit;

o        Bankers' Acceptances;

o        Short-term notes, bonds, debentures or other debt instruments; and

o        Repurchase agreements.

The Fund may also invest up to 5% of its total assets in any money market fund,
including those advised by the Advisor, if any.

Small Company Risk. The Advisor believes that many small companies may have
sales and earnings growth rates which exceed those of larger companies, and that
such growth rates may in turn be reflected in more rapid share price
appreciation over time. However, investing in smaller company stocks involves
greater risk than is customarily associated with investing in larger, more
established companies. For example, smaller companies can have limited product
lines, markets, or financial and managerial resources. Smaller companies may
also be dependent on one or a few key persons, and may be more susceptible to
losses and risks of bankruptcy. Also, the securities of smaller companies may be
thinly traded (and therefore have to be sold at a discount from current market
prices or sold in small lots over an extended period of time). Transaction costs
in smaller company stocks may be higher than those of larger companies.

Sovereign Debt. Investment in sovereign debt can involve a high degree of risk.
The governmental entity that controls the repayment of sovereign debt may not be
able or willing to repay the principal and/or interest when due in accordance
with the terms of such debt. A governmental entity's willingness or ability to
repay principal and interest due in a timely manner may be affected by, among
other factors, its cash flow situation, the extent of its foreign reserves, the
availability of sufficient foreign exchange on the date a payment is due, the
relative size of the debt service burden to the economy as a whole, the
governmental entity's policy toward the International Monetary Fund, and the
political constraints to which a governmental entity may be subject.
Governmental entities may also be dependent on expected disbursements from
foreign governments, multilateral agencies and others abroad to reduce principal
and interest arrearages on their debt. The commitment on the part of these
governments, agencies and others to make such disbursements may be conditioned
on a governmental entity's implementation of economic reforms and/or economic
performance and the timely service of such debtor's obligations. Failure to
implement such


                                       16
<PAGE>

reforms, achieve such levels of economic performance or repay principal or
interest when due may result in the cancellation of such third parties
commitments to lend funds to the governmental entity, which may further impair
such debtor's ability or willingness to service its debts in a timely manner.
Consequently, governmental entities may default on their sovereign debt. Holders
of sovereign debt may be requested to participate in the rescheduling of such
debt and to extend further loans to governmental entities. There is no
bankruptcy proceeding by which sovereign debt on which governmental entities
have defaulted may be collected in whole or in part.

Strategic Transactions and Derivatives. The Fund may, but is not required to,
utilize various other investment strategies as described below for a variety of
purposes, such as hedging various market risks, managing the effective maturity
or duration of the fixed-income securities in the Fund's portfolio or enhancing
potential gain. These strategies may be executed through the use of derivative
contracts.

In the course of pursuing these investment strategies, the Fund may purchase and
sell exchange-listed and over-the-counter put and call options on securities,
equity and fixed-income indices and other instruments, purchase and sell futures
contracts and options thereon, enter into various transactions such as swaps,
caps, floors, collars, currency forward contracts, currency futures contracts,
currency swaps or options on currencies, or currency futures and various other
currency transactions (collectively, all the above are called "Strategic
Transactions"). In addition, strategic transactions may also include new
techniques, instruments or strategies that are permitted as regulatory changes
occur. Strategic Transactions may be used without limit (subject to certain
limits imposed by the 1940 Act) to attempt to protect against possible changes
in the market value of securities held in or to be purchased for the Fund's
portfolio resulting from securities markets or currency exchange rate
fluctuations, to protect the Fund's unrealized gains in the value of its
portfolio securities, to facilitate the sale of such securities for investment
purposes, to manage the effective maturity or duration of the Fund's portfolio,
or to establish a position in the derivatives markets as a substitute for
purchasing or selling particular securities. Some Strategic Transactions may
also be used to enhance potential gain although no more than 5% of the Fund's
assets will be committed to certain Strategic Transactions entered into for
non-hedging purposes. Any or all of these investment techniques may be used at
any time and in any combination, and there is no particular strategy that
dictates the use of one technique rather than another, as use of any Strategic
Transaction is a function of numerous variables including market conditions. The
ability of the Fund to utilize these Strategic Transactions successfully will
depend on the Advisor's ability to predict pertinent market movements, which
cannot be assured. The Fund will comply with applicable regulatory requirements
when implementing these strategies, techniques and instruments. Strategic
Transactions will not be used to alter fundamental investment purposes and
characteristics of the Fund, and the Fund will segregate assets (or as provided
by applicable regulations, enter into certain offsetting positions) to cover its
obligations under options, futures and swaps to limit leveraging of the Fund.

Strategic Transactions, including derivative contracts, have risks associated
with them including possible default by the other party to the transaction,
illiquidity and, to the extent the Advisor's view as to certain market movements
is incorrect, the risk that the use of such Strategic Transactions could result
in losses greater than if they had not been used. Use of put and call options
may result in losses to the Fund, force the sale or purchase of portfolio
securities at inopportune times or for prices higher than (in the case of put
options) or lower than (in the case of call options) current market values,
limit the amount of appreciation the Fund can realize on its investments or
cause the Fund to hold a security it might otherwise sell. The use of currency
transactions can result in the Fund incurring losses as a result of a number of
factors including the imposition of exchange controls, suspension of
settlements, or the inability to deliver or receive a specified currency. The
use of options and futures transactions entails certain other risks. In
particular, the variable degree of correlation between price movements of
futures contracts and price movements in the related portfolio position of the
Fund creates the possibility that losses on the hedging instrument may be
greater than gains in the value of the Fund's position. In addition, futures and
options markets may not be liquid in all circumstances and certain
over-the-counter options may have no markets. As a result, in certain markets,
the Fund might not be able to close out a transaction without incurring
substantial losses, if at all. Although the use of futures and options
transactions for hedging should tend to minimize the risk of loss due to a
decline in the value of the hedged position, at the same time they tend to limit
any potential gain which might result from an increase in value of such
position. Finally, the daily variation margin requirements for futures contracts
would create a greater ongoing potential financial risk than would purchases of
options, where the exposure is limited to the cost of the initial premium.
Losses resulting from the use of Strategic Transactions would reduce net asset
value, and possibly income, and such losses can be greater than if the Strategic
Transactions had not been utilized.



                                       17
<PAGE>

General Characteristics of Options. Put options and call options typically have
similar structural characteristics and operational mechanics regardless of the
underlying instrument on which they are purchased or sold. Thus, the following
general discussion relates to each of the particular types of options discussed
in greater detail below. In addition, many Strategic Transactions involving
options require segregation of Fund assets in special accounts, as described
below under "Use of Segregated and Other Special Accounts."

A put option gives the purchaser of the option, upon payment of a premium, the
right to sell, and the writer the obligation to buy, the underlying security,
commodity, index, currency or other instrument at the exercise price. For
instance, the Fund's purchase of a put option on a security might be designed to
protect its holdings in the underlying instrument (or, in some cases, a similar
instrument) against a substantial decline in the market value by giving the Fund
the right to sell such instrument at the option exercise price. A call option,
upon payment of a premium, gives the purchaser of the option the right to buy,
and the seller the obligation to sell, the underlying instrument at the exercise
price. The Fund's purchase of a call option on a security, financial future,
index, currency or other instrument might be intended to protect the Fund
against an increase in the price of the underlying instrument that it intends to
purchase in the future by fixing the price at which it may purchase such
instrument. An American style put or call option may be exercised at any time
during the option period while a European style put or call option may be
exercised only upon expiration or during a fixed period prior thereto. The Fund
is authorized to purchase and sell exchange listed options and over-the-counter
options ("OTC options"). Exchange listed options are issued by a regulated
intermediary such as the Options Clearing Corporation ("OCC"), which guarantees
the performance of the obligations of the parties to such options. The
discussion below uses the OCC as an example, but is also applicable to other
financial intermediaries.

With certain exceptions, OCC issued and exchange listed options generally settle
by physical delivery of the underlying security or currency, although in the
future cash settlement may become available. Index options and Eurodollar
instruments are cash settled for the net amount, if any, by which the option is
"in-the-money" (i.e., where the value of the underlying instrument exceeds, in
the case of a call option, or is less than, in the case of a put option, the
exercise price of the option) at the time the option is exercised. Frequently,
rather than taking or making delivery of the underlying instrument through the
process of exercising the option, listed options are closed by entering into
offsetting purchase or sale transactions that do not result in ownership of the
new option.

The Fund's ability to close out its position as a purchaser or seller of an OCC
or exchange listed put or call option is dependent, in part, upon the liquidity
of the option market. Among the possible reasons for the absence of a liquid
option market on an exchange are: (i) insufficient trading interest in certain
options; (ii) restrictions on transactions imposed by an exchange; (iii) trading
halts, suspensions or other restrictions imposed with respect to particular
classes or series of options or underlying securities including reaching daily
price limits; (iv) interruption of the normal operations of the OCC or an
exchange; (v) inadequacy of the facilities of an exchange or OCC to handle
current trading volume; or (vi) a decision by one or more exchanges to
discontinue the trading of options (or a particular class or series of options),
in which event the relevant market for that option on that exchange would cease
to exist, although outstanding options on that exchange would generally continue
to be exercisable in accordance with their terms.

The hours of trading for listed options may not coincide with the hours during
which the underlying financial instruments are traded. To the extent that the
option markets close before the markets for the underlying financial
instruments, significant price and rate movements can take place in the
underlying markets that cannot be reflected in the option markets.

OTC options are purchased from or sold to securities dealers, financial
institutions or other parties ("Counterparties") through direct bilateral
agreement with the Counterparty. In contrast to exchange listed options, which
generally have standardized terms and performance mechanics, all the terms of an
OTC option, including such terms as method of settlement, term, exercise price,
premium, guarantees and security, are set by negotiation of the parties. The
Fund will only sell OTC options (other than OTC currency options) that are
subject to a buy-back provision permitting the Fund to require the Counterparty
to sell the option back to the Fund at a formula price within seven days. The
Fund expects generally to enter into OTC options that have cash settlement
provisions, although it is not required to do so.



                                       18
<PAGE>

Unless the parties provide for it, there is no central clearing or guaranty
function in an OTC option. As a result, if the Counterparty fails to make or
take delivery of the security, currency or other instrument underlying an OTC
option it has entered into with the Fund or fails to make a cash settlement
payment due in accordance with the terms of that option, the fund will lose any
premium it paid for the option as well as any anticipated benefit of the
transaction. Accordingly, the Advisor must assess the creditworthiness of each
such Counterparty or any guarantor or credit enhancement of the Counterparty's
credit to determine the likelihood that the terms of the OTC option will be
satisfied. The Fund will engage in OTC option transactions only with US
government securities dealers recognized by the Federal Reserve Bank of New York
as "primary dealers" or broker/dealers, domestic or foreign banks or other
financial institutions which have received (or the guarantors of the obligation
of which have received) a short-term credit rating of A-1 from S&P or P-1 from
Moody's or an equivalent rating from any nationally recognized statistical
rating organization ("NRSRO") or, in the case of OTC currency transactions, are
determined to be of equivalent credit quality by the Advisor. The staff of the
SEC currently takes the position that OTC options purchased by the Fund, and
portfolio securities "covering" the amount of the Fund's obligation pursuant to
an OTC option sold by it (the cost of the sell-back plus the in-the-money
amount, if any) are illiquid, and are subject to the Fund's limitation on
investing no more than 15% of its net assets in illiquid securities.

If the Fund sells a call option, the premium that it receives may serve as a
partial hedge, to the extent of the option premium, against a decrease in the
value of the underlying securities or instruments in its portfolio or will
increase the Fund's income. The sale of put options can also provide income.

The Fund may purchase and sell call options on securities including US Treasury
and agency securities, mortgage-backed securities, foreign sovereign debt,
corporate debt securities, equity securities (including convertible securities)
and Eurodollar instruments that are traded on US and foreign securities
exchanges and in the over-the-counter markets, and on securities indices,
currencies and futures contracts. All calls sold by the Fund must be "covered"
(i.e., the Fund must own the securities or futures contract subject to the call)
or must meet the asset segregation requirements described below as long as the
call is outstanding. Even though the Fund will receive the option premium to
help protect it against loss, a call sold by the Fund exposes the Fund during
the term of the option to possible loss of opportunity to realize appreciation
in the market price of the underlying security or instrument and may require the
Fund to hold a security or instrument which it might otherwise have sold.

The Fund may purchase and sell put options on securities including US Treasury
and agency securities, mortgage-backed securities, foreign sovereign debt,
corporate debt securities, equity securities (including convertible securities)
and Eurodollar instruments (whether or not it holds the above securities in its
portfolio), and on securities indices, currencies and futures contracts other
than futures on individual corporate debt and individual equity securities. The
Fund will not sell put options if, as a result, more than 50% of the Fund's
total assets would be required to be segregated to cover its potential
obligations under such put options other than those with respect to futures and
options thereon. In selling put options, there is a risk that the Fund may be
required to buy the underlying security at a disadvantageous price above the
market price.

General Characteristics of Futures. The Fund may enter into futures contracts or
purchase or sell put and call options on such futures as a hedge against
anticipated interest rate, currency or equity market changes, and for duration
management, risk management and return enhancement purposes. Futures are
generally bought and sold on the commodities exchanges where they are listed
with payment of initial and variation margin as described below. The sale of a
futures contract creates a firm obligation by the Fund, as seller, to deliver to
the buyer the specific type of financial instrument called for in the contract
at a specific future time for a specified price (or, with respect to index
futures and Eurodollar instruments, the net cash amount). Options on futures
contracts are similar to options on securities except that an option on a
futures contract gives the purchaser the right in return for the premium paid to
assume a position in a futures contract and obligates the seller to deliver such
position.

The Fund has claimed exclusion from the definition of the term "commodity pool
operator" adopted by the CFTC and the National Futures Association, which
regulate trading in the futures markets. Therefore, the Fund is not subject to
commodity pool operator registration and regulation under the Commodity Exchange
Act. Futures and options on futures may be entered into for bona fide hedging,
risk management (including duration management) or other portfolio and return
enhancement management purposes to the extent consistent with the exclusion from
commodity pool operator registration. Typically, maintaining a futures contract
or selling an option thereon requires the Fund to deposit with a financial
intermediary as security for its obligations an amount of cash or other
specified


                                       19
<PAGE>

assets (initial margin) which initially is typically 1% to 10% of the face
amount of the contract (but may be higher in some circumstances). Additional
cash or assets (variation margin) may be required to be deposited thereafter on
a daily basis as the marked to market value of the contract fluctuates. The
purchase of an option on financial futures involves payment of a premium for the
option without any further obligation on the part of the Fund. If the Fund
exercises an option on a futures contract it will be obligated to post initial
margin (and potential subsequent variation margin) for the resulting futures
position just as it would for any position. Futures contracts and options
thereon are generally settled by entering into an offsetting transaction but
there can be no assurance that the position can be offset prior to settlement at
an advantageous price, nor that delivery will occur.

Options on Securities Indices and Other Financial Indices. The Fund also may
purchase and sell call and put options on securities indices and other financial
indices and in so doing can achieve many of the same objectives it would achieve
through the sale or purchase of options on individual securities or other
instruments. Options on securities indices and other financial indices are
similar to options on a security or other instrument except that, rather than
settling by physical delivery of the underlying instrument, they settle by cash
settlement, i.e., an option on an index gives the holder the right to receive,
upon exercise of the option, an amount of cash if the closing level of the index
upon which the option is based exceeds, in the case of a call, or is less than,
in the case of a put, the exercise price of the option (except if, in the case
of an OTC option, physical delivery is specified). This amount of cash is equal
to the excess of the closing price of the index over the exercise price of the
option, which also may be multiplied by a formula value. The seller of the
option is obligated, in return for the premium received, to make delivery of
this amount. The gain or loss on an option on an index depends on price
movements in the instruments making up the market, market segment, industry or
other composite on which the underlying index is based, rather than price
movements in individual securities, as is the case with respect to options on
securities.

Currency Transactions. The Fund may engage in currency transactions with
Counterparties primarily in order to hedge, or manage the risk of the value of
portfolio holdings denominated in particular currencies against fluctuations in
relative value. Currency transactions include forward currency contracts,
exchange listed currency futures, exchange listed and OTC options on currencies,
and currency swaps. A forward currency contract involves a privately negotiated
obligation to purchase or sell (with delivery generally required) a specific
currency at a future date, which may be any fixed number of days from the date
of the contract agreed upon by the parties, at a price set at the time of the
contract. A currency swap is an agreement to exchange cash flows based on the
notional difference among two or more currencies and operates similarly to an
interest rate swap, which is described below. The Fund may enter into currency
transactions with Counterparties which have received (or the guarantors of the
obligations which have received) a credit rating of A-1 or P-1 by S&P or
Moody's, respectively, or that have an equivalent rating from a NRSRO or (except
for OTC currency options) are determined to be of equivalent credit quality by
the Advisor.

The Fund's dealings in forward currency contracts and other currency
transactions such as futures, options, options on futures and swaps generally
will be limited to hedging involving either specific transactions or portfolio
positions except as described below. Transaction hedging is entering into a
currency transaction with respect to specific assets or liabilities of the fund,
which will generally arise in connection with the purchase or sale of its
portfolio securities or the receipt of income therefrom. Position hedging is
entering into a currency transaction with respect to portfolio security
positions denominated or generally quoted in that currency.

The Fund generally will not enter into a transaction to hedge currency exposure
to an extent greater, after netting all transactions intended wholly or
partially to offset other transactions, than the aggregate market value (at the
time of entering into the transaction) of the securities held in its portfolio
that are denominated or generally quoted in or currently convertible into such
currency, other than with respect to proxy hedging or cross hedging as described
below.

The Fund may also cross-hedge currencies by entering into transactions to
purchase or sell one or more currencies that are expected to decline in value
relative to other currencies to which the fund has or in which the Fund expects
to have portfolio exposure.

To reduce the effect of currency fluctuations on the value of existing or
anticipated holdings of portfolio securities, the fund may also engage in proxy
hedging. Proxy hedging is often used when the currency to which the Fund's
portfolio is exposed is difficult to hedge or to hedge against the dollar. Proxy
hedging entails entering into a


                                       20
<PAGE>

commitment or option to sell a currency whose changes in value are generally
considered to be correlated to a currency or currencies in which some or all of
the Fund's portfolio securities are or are expected to be denominated, in
exchange for US dollars. The amount of the commitment or option would not exceed
the value of the fund's securities denominated in correlated currencies. For
example, if the Advisor considers that the Austrian schilling is correlated to
the German deutschemark (the "D-mark"), the fund holds securities denominated in
schillings and the Advisor believes that the value of schillings will decline
against the US dollar, the Advisor may enter into a commitment or option to sell
D-marks and buy dollars. Currency hedging involves some of the same risks and
considerations as other transactions with similar instruments. Currency
transactions can result in losses to the Fund if the currency being hedged
fluctuates in value to a degree or in a direction that is not anticipated.
Further, there is the risk that the perceived correlation between various
currencies may not be present or may not be present during the particular time
that the Fund is engaging in proxy hedging. If the Fund enters into a currency
hedging transaction, the Fund will comply with the asset segregation
requirements described below.

Risks of Currency Transactions. Currency transactions are subject to risks
different from those of other portfolio transactions. Because currency control
is of great importance to the issuing governments and influences economic
planning and policy, purchases and sales of currency and related instruments can
be negatively affected by government exchange controls, blockages, and
manipulations or exchange restrictions imposed by governments. These can result
in losses to the Fund if it is unable to deliver or receive currency or funds in
settlement of obligations and could also cause hedges it has entered into to be
rendered useless, resulting in full currency exposure as well as incurring
transaction costs. Buyers and sellers of currency futures are subject to the
same risks that apply to the use of futures generally. Further, settlement of a
currency futures contract for the purchase of most currencies must occur at a
bank based in the issuing nation. Trading options on currency futures is
relatively new, and the ability to establish and close out positions on such
options is subject to the maintenance of a liquid market which may not always be
available. Currency exchange rates may fluctuate based on factors extrinsic to
that country's economy.

Risks of Strategic Transactions Outside the US. When conducted outside the US,
Strategic Transactions may not be regulated as rigorously as in the US, may not
involve a clearing mechanism and related guarantees, and are subject to the risk
of governmental actions affecting trading in, or the prices of, foreign
securities, currencies and other instruments. The value of such positions also
could be adversely affected by: (i) other complex foreign political, legal and
economic factors, (ii) lesser availability than in the US of data on which to
make trading decisions, (iii) delays in the Fund's ability to act upon economic
events occurring in foreign markets during non-business hours in the US, (iv)
the imposition of different exercise and settlement terms and procedures and
margin requirements than in the US, and (v) lower trading volume and liquidity.

Swaps, Caps, Floors and Collars. Among the Strategic Transactions into which the
Fund may enter are interest rate, currency, index and other swaps and the
purchase or sale of related caps, floors and collars. The 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 the fund anticipates purchasing at a later
date. The Fund will not sell interest rate caps or floors where it does not own
securities or other instruments providing the income stream the fund may be
obligated to pay. Interest rate swaps involve the exchange by the 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.

Use of Segregated and Other Special Accounts. Many Strategic Transactions, in
addition to other requirements, require that the Fund segregate cash or liquid
assets with its custodian to the extent fund obligations are not otherwise
"covered" through ownership of the underlying security, financial instrument or
currency. In general, either the full amount of any obligation by the Fund to
pay or deliver securities or assets must be covered at all times


                                       21
<PAGE>

by the securities, instruments or currency required to be delivered, or, subject
to any regulatory restrictions, an amount of cash or liquid assets at least
equal to the current amount of the obligation must be segregated with the
custodian. The segregated assets cannot be sold or transferred unless equivalent
assets are substituted in their place or it is no longer necessary to segregate
them. For example, a call option written by the Fund will require the Fund to
hold the securities subject to the call (or securities convertible into the
needed securities without additional consideration) or to segregate cash or
liquid assets sufficient to purchase and deliver the securities if the call is
exercised. A call option sold by the Fund on an index will require the Fund to
own portfolio securities which correlate with the index or to segregate cash or
liquid assets equal to the excess of the index value over the exercise price on
a current basis. A put option written by the Fund requires the Fund to segregate
cash or liquid assets equal to the exercise price.

Except when the Fund enters into a forward contract for the purchase or sale of
a security denominated in a particular currency, which requires no segregation,
a currency contract which obligates the Fund to buy or sell currency will
generally require the Fund to hold an amount of that currency or liquid assets
denominated in that currency equal to the Fund's obligations or to segregate
cash or liquid assets equal to the amount of the Fund's obligation.

OTC options entered into by the Fund, including those on securities, currency,
financial instruments or indices and OCC issued and exchange listed index
options, will generally provide for cash settlement. As a result, when the Fund
sells these instruments it will only segregate an amount of cash or liquid
assets equal to its accrued net obligations, as there is no requirement for
payment or delivery of amounts in excess of the net amount. These amounts will
equal 100% of the exercise price in the case of a non cash-settled put, the same
as an OCC guaranteed listed option sold by the Fund, or the in-the-money amount
plus any sell-back formula amount in the case of a cash-settled put or call. In
addition, when the Fund sells a call option on an index at a time when the
in-the-money amount exceeds the exercise price, the Fund will segregate, until
the option expires or is closed out, cash or cash equivalents equal in value to
such excess. OCC issued and exchange listed options sold by the Fund other than
those above generally settle with physical delivery, or with an election of
either physical delivery or cash settlement and the Fund will segregate an
amount of cash or liquid assets equal to the full value of the option. OTC
options settling with physical delivery, or with an election of either physical
delivery or cash settlement will be treated the same as other options settling
with physical delivery.

In the case of a futures contract or an option thereon, the Fund must deposit
initial margin and possible daily variation margin in addition to segregating
cash or liquid assets sufficient to meet its obligation to purchase or provide
securities or currencies, or to pay the amount owed at the expiration of an
index-based futures contract. Such liquid assets may consist of cash, cash
equivalents, liquid debt or equity securities or other acceptable assets.

With respect to swaps, the Fund will accrue the net amount of the excess, if
any, of its obligations over its entitlements with respect to each swap on a
daily basis and will segregate an amount of cash or liquid assets having a value
equal to the accrued excess. Caps, floors and collars require segregation of
assets with a value equal to the Fund's net obligation, if any.

Strategic Transactions may be covered by other means when consistent with
applicable regulatory policies. The Fund may also enter into offsetting
transactions so that its combined position, coupled with any segregated assets,
equals its net outstanding obligation in related options and Strategic
Transactions. For example, the Fund could purchase a put option if the strike
price of that option is the same or higher than the strike price of a put option
sold by the Fund. Moreover, instead of segregating cash or liquid assets if the
Fund held a futures or forward contract, it could purchase a put option on the
same futures or forward contract with a strike price as high or higher than the
price of the contract held. Other Strategic Transactions may also be offset in
combinations. If the offsetting transaction terminates at the time of or after
the primary transaction no segregation is required, but if it terminates prior
to such time, cash or liquid assets equal to any remaining obligation would need
to be segregated.

Combined Transactions. The Fund may enter into multiple transactions, including
multiple options transactions, multiple futures transactions, multiple currency
transactions (including forward currency contracts) and multiple interest rate
transactions and any combination of futures, options, currency and interest rate
transactions ("component" transactions), instead of a single Strategic
Transaction, as part of a single or combined strategy when, in the opinion of
the Advisor, it is in the best interests of the Fund to do so. A combined
transaction will usually


                                       22
<PAGE>

contain elements of risk that are present in each of its component transactions.
Although combined transactions are normally entered into based on the Advisor's
judgment that the combined strategies will reduce risk or otherwise more
effectively achieve the desired portfolio management goal, it is possible that
the combination will instead increase such risks or hinder achievement of the
portfolio management objective.

Supranational Entities. Supranational entities are international organizations
designated or supported by governmental entities to promote economic
reconstruction or development and international banking institutions and related
government agencies. Examples include the International Bank for Reconstruction
and Development (the World Bank), the European Coal and Steel Community, The
Asian Development Bank and the InterAmerican Development Bank. Obligations of
supranational entities are backed by the guarantee of one or more foreign
governmental parties which sponsor the entity.

When-Issued Securities. The Fund may from time to time purchase equity and debt
securities on a "when-issued," "delayed delivery" or "forward delivery" basis.
The price of such securities, which may be expressed in yield terms, is fixed at
the time the commitment to purchase is made, but delivery and payment for the
securities takes place at a later date. During the period between purchase and
settlement, no payment is made by the Fund to the issuer and no interest accrues
to the Fund. When the Fund purchases such securities, it immediately assumes the
risks of ownership, including the risk of price fluctuation. Failure to deliver
a security purchased on this basis may result in a loss or missed opportunity to
make an alternative investment.

To the extent that assets of the Fund are held in cash pending the settlement of
a purchase of securities, the Fund would earn no income. While such securities
may be sold prior to the settlement date, the Fund intends to purchase them with
the purpose of actually acquiring them unless a sale appears desirable for
investment reasons. At the time the Fund makes the commitment to purchase a
security on this basis, it will record the transaction and reflect the value of
the security in determining its net asset value. The market value of the
securities may be more or less than the purchase price. The Fund will establish
a segregated account in which it will maintain cash and liquid securities equal
in value to commitments for such securities.

Warrants. The holder of a warrant has the right, until the warrant expires, to
purchase a given number of shares of a particular issuer at a specified price.
Such investments can provide a greater potential for profit or loss than an
equivalent investment in the underlying security. Prices of warrants do not
necessarily move, however, in tandem with the prices of the underlying
securities and are, therefore, considered speculative investments. Warrants pay
no dividends and confer no rights other than a purchase option. Thus, if a
warrant held by the Fund were not exercised by the date of its expiration, that
Fund would lose the entire purchase price of the warrant.

Zero Coupon Securities. The Fund may invest in zero coupon securities which pay
no cash income and are sold at substantial discounts from their value at
maturity. When held to maturity, their entire income, which consists of
accretion of discount, comes from the difference between the purchase price and
their value at maturity. The effect of owning instruments which do not make
current interest payments is that a fixed yield is earned not only on the
original investment but also, in effect, on all discount accretion during the
life of the obligation. This implicit reinvestment of earnings at the same rate
eliminates the risk of being unable to reinvest distributions at a rate as high
as the implicit yield on the zero coupon bond, but at the same time eliminates
any opportunity to reinvest earnings at higher rates. For this reason, zero
coupon bonds are subject to substantially greater price fluctuations during
periods of changing market interest rates than those of comparable securities
that pay interest currently, which fluctuation is greater as the period to
maturity is longer. Zero coupon convertible securities which are convertible
into common stock offer the opportunity for capital appreciation (or
depreciation) as increases (or decreases) in market value of such securities
closely follow the movements in the market value of the underlying common stock.
Zero coupon convertible securities generally are expected to be less volatile
than the underlying common stocks, as they usually are issued with maturities of
15 years or less and are issued with options and/or redemption features
exercisable by the holder of the obligation entitling the holder to redeem the
obligation and receive a defined cash payment.

Portfolio Holdings

In addition to the public disclosure of Fund portfolio holdings through required
Securities and Exchange Commission ("SEC") quarterly filings, the Fund may make
its portfolio holdings information publicly available on


                                       23
<PAGE>

the DWS Funds' Web site as described in the Fund's prospectus. The Fund does not
disseminate non-public information about portfolio holdings except in accordance
with policies and procedures adopted by the Fund.

The Fund's procedures permit non-public portfolio holdings information to be
shared with Deutsche Asset Management and its affiliates (collectively "DeAM"),
subadvisors, if any, custodians, independent registered public accounting firms,
attorneys, officers and trustees/directors and each of their respective
affiliates and advisers who require access to this information to fulfill their
duties to the Fund and are subject to the duties of confidentiality, including
the duty not to trade on non-public information, imposed by law or contract, or
by the Fund's procedures. This non-public information may also be disclosed,
subject to the requirements described below, to securities lending agents,
financial printers, proxy voting firms, mutual fund analysts and rating and
tracking agencies, or to shareholders in connection with in-kind redemptions
(collectively, "Authorized Third Parties").

Prior to any disclosure of the Fund's non-public portfolio holdings information
to Authorized Third Parties, a person authorized by the Fund's
Trustees/Directors must make a good faith determination in light of the facts
then known that the Fund has a legitimate business purpose for providing the
information, that the disclosure is in the best interest of the Fund, and that
the recipient assents or otherwise has a duty to keep the information
confidential and to not trade based on the information received while the
information remains non-public. No compensation is received by the Fund or DeAM
for disclosing non-public holdings information. Periodic reports regarding these
procedures will be provided to the Fund's Trustees/Directors.

Portfolio holdings information distributed by the trading desks of DeAM or a
subadvisor for the purpose of facilitating efficient trading of such securities
and receipt of relevant research is not subject to the foregoing requirements.
Non-public portfolio holding information does not include portfolio
characteristics (other than holdings or subsets of holdings) about the Fund and
information derived therefrom, including, but not limited to, how the Fund's
investments are divided among various sectors, industries, countries, value and
growth stocks, bonds, currencies and cash, types of bonds, bond maturities,
duration, bond coupons and bond credit quality ratings so long as the Fund's
holdings could not be derived from such information.

DeAM also manages certain unregistered commingled trusts and creates model
portfolios, the portfolio holdings of which may substantially overlap with the
portfolio holdings of the Fund. To the extent that investors in these commingled
trusts or recipients of model portfolio holdings information may receive
portfolio holdings information of their trust or of a model portfolio on a
different basis from that on which fund portfolio holdings information is made
public, DeAM has implemented procedures reasonably designed to encourage such
investors and recipients to keep such information confidential, and to prevent
those investors from trading on the basis of non-public holdings information.

There is no assurance that the Fund's policies and procedures with respect to
the disclosure of portfolio holdings information will protect the Fund from the
potential misuse of portfolio holdings information by those in possession of
that information.

                             MANAGEMENT OF THE FUND

Investment Advisor

Deutsche Investment Management Americas Inc. ("DIMA"), which is part of Deutsche
Asset Management ("DeAM"), is the investment advisor for the Fund. Under the
supervision of the Board of Trustees of the Trust, DIMA, with headquarters at
345 Park Avenue, New York, New York 10154, the subadvisor and the
sub-subadvisors make the Fund's investment decisions, buy and sell securities
for the Fund and conduct research that leads to these purchase and sale
decisions. The Advisor manages the Fund's daily investment and business affairs
subject to the policies established by the Trust's Board of Trustees. DIMA and
its predecessors have more than 80 years of experience managing mutual funds.
DIMA provides a full range of investment advisory services to institutional and
retail clients. The Advisor is also responsible for selecting brokers and
dealers and for negotiating brokerage commissions and dealer charges.



                                       24
<PAGE>

DeAM is the marketing name in the US for the asset management activities of
Deutsche Bank AG, DIMA, Deutsche Bank Trust Company Americas and DWS Trust
Company. DeAM is a global asset management organization that offers a wide range
of investing expertise and resources, including hundreds of portfolio managers
and analysts and an office network that reaches the world's major investment
centers. 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 fund, retail, private and commercial banking, investment banking and
insurance. The term "DWS Scudder" is the designation given to the products and
services provided by DIMA and its affiliates to the DWS Mutual Funds.

Pursuant to an Investment Management Agreement between the Fund and DIMA (the
"Investment Management Agreement"), the Advisor provides continuing investment
management of the assets of the Fund. In addition to the investment management
of the assets of the Fund, the Advisor determines the investments to be made for
the Fund, including what portion of its assets remain uninvested in cash or cash
equivalents, and with whom the orders for investments are placed, consistent
with the Fund's policies as stated in its Prospectus and SAI, or as adopted by
the Fund's Board. The Advisor will also monitor, to the extent not monitored by
the Fund's administrator or other agent, the Fund's compliance with its
investment and tax guidelines and other compliance policies. The Investment
Management Agreement was approved by the Board on March __, 2008 is effective as
of June __, 2008.

The Advisor provides assistance to the Fund's Board in valuing the securities
and other instruments held by the Fund, to the extent reasonably required by
valuation policies and procedures that may be adopted by the Fund.

Pursuant to the Investment Management Agreement, (unless otherwise provided in
the agreement or as determined by the Fund's Board and to the extent permitted
by applicable law), the Advisor pays the compensation and expenses of all the
Board members, officers, and executive employees of the Fund, including the
Fund's share of payroll taxes, who are affiliated persons of the Advisor.

The Fund pays the Advisor an advisory fee at the annual rate of ___% of average
daily net assets.

Because the Fund has not commenced operations as of the date of this Statement
of Additional Information, the Fund does not have any advisory fee information
to report.

Through ___________, 2008, the Advisor has contractually agreed to waive all or
a portion of its management fee and reimburse or pay operating expenses of the
Fund to the extent necessary to maintain the Fund's total operating expenses at
____% for Class S shares, excluding certain expenses such as extraordinary
expenses, taxes, brokerage, interest, proxy and organizational and offering
expenses.

The Investment Management Agreement provides that the Fund is generally
responsible for expenses that include: fees payable to the Advisor; outside
legal, accounting or auditing expenses, including with respect to expenses
related to negotiation, acquisition or distribution of portfolio investments;
maintenance of books and records that are maintained by the Fund, the Fund's
custodian, or other agents of the Fund; taxes and governmental fees; fees and
expenses of the Fund's accounting agent, custodian, sub-custodians,
depositories, transfer agents, dividend reimbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; brokerage commissions or
other costs of acquiring or disposing of any portfolio securities or other
instruments of the Fund; and litigation expenses and other extraordinary
expenses not incurred in the ordinary course of the Fund's business.

The Investment Management Agreement allows the Advisor to delegate any of its
duties under the Agreement to a subadvisor, subject to a majority vote of the
Board of the Fund, including a majority of the Board who are not interested
persons of the Fund, and, if required by applicable law, subject to a majority
vote of the Fund's shareholders.

The Investment Management Agreement provides that the Advisor shall not be
liable for any error of judgment or mistake of law or for any loss suffered by
the Fund in connection with matters to which the agreement relates,


                                       25
<PAGE>

except a loss resulting from willful malfeasance, bad faith or gross negligence
on the part of the Advisor in the performance of its duties or from reckless
disregard by the Advisor of its obligations and duties under the agreement. The
Investment Management Agreement may be terminated at any time, without payment
of penalty, by either party or by vote of a majority of the outstanding voting
securities of the Fund on 60 days' written notice.

Under a separate agreement between Deutsche Bank AG and the Fund, Deutsche Bank
AG has granted a license to the Fund to utilize the trademark "DWS."

In reviewing the terms of each Agreement and in discussions with the Advisor
concerning such Agreement, the Directors of the Corporation who are not
"interested persons" of the Advisor are represented by independent counsel at
the Fund's expense.

The Agreement provides that the Advisor shall not be liable for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with matters to which the Agreement relates, except a loss resulting from
willful misfeasance, bad faith or gross negligence on the part of the Advisor in
the performance of its duties or from reckless disregard by the Advisor of its
obligations and duties under the Agreement.

Officers and employees of the Advisor from time to time may have transactions
with various banks, including the Fund's custodian bank. It is the Advisor's
opinion that the terms and conditions of those transactions which have occurred
were not influenced by existing or potential custodial or other Fund
relationships.

The Advisor may serve as advisor to other funds with investment objectives and
policies similar to those of the Fund that may have different distribution
arrangements or expenses, which may affect performance.

None of the officers or Directors of the Corporation may have dealings with the
Fund as principals in the purchase or sale of securities, except as individual
subscribers to or holders of shares of the Fund.

The term "DWS Scudder" is the designation given to the services provided by the
Advisor and its affiliates to DWS Mutual Funds.

The Advisor may enter into arrangements with affiliates and third party service
providers to perform various administrative, back-office and other services
relating to client accounts. Such service providers may be located in the US or
in non-US jurisdictions.

In addition, the Board has approved a subadvisor approval policy for the Fund
(the "Subadvisor Approval Policy"). The Subadvisor Approval Policy permits the
Advisor, subject to the approval of the Board, including a majority of its
independent board members, to appoint and replace subadvisors and to amend
sub-advisory contracts without obtaining shareholder approval. Under the
Subadvisor Approval Policy, the Board, including its independent board members,
will continue to evaluate and approve all new sub-advisory contracts between the
Advisor and any subadvisor, as well as all changes to any existing sub-advisory
contract. The Fund cannot implement the Subadvisor Approval Policy without the
SEC either adopting revisions to current rules (as it proposed to do in October
2003) or granting the Fund exemptive relief from existing rules. The Fund and
the Advisor would be subject to certain conditions imposed by the SEC (and
certain conditions that may be imposed in the future within either exemptive
relief or a rule) to ensure that the interests of the Fund and its shareholders
are adequately protected whenever the Advisor acts under the Subadvisor Approval
Policy, including any shareholder notice requirements.

Subadvisor. RREEF America L.L.C. ("RREEF"), located at 875 North Michigan
Avenue, 41st Floor, Chicago, Illinois 60611, an affiliate of the Advisor, is the
subadvisor for the Fund. RREEF serves as sub-advisor pursuant to the terms of a
subadvisory agreement (the "Subadvisory Agreement") between it and the Advisor.
RREEF has provided real estate investment management services to institutional
investors since 1975 and has been an investment advisor of real estate
securities since 1993.

While DIMA is the investment advisor to the Fund, the day-to-day activities of
managing the Fund's portfolio have been delegated to RREEF. DIMA compensates
RREEF out of the management fee it receives from the Fund.



                                       26
<PAGE>

The Subadvisory Agreement provides that RREEF will not be liable for any error
of judgment or mistake of law or for any loss suffered by the Fund in connection
with matters to which the Subadvisory Agreement relates, except a loss resulting
from willful misconduct, bad faith or gross negligence on the part of RREEF in
the performance of its duties or from reckless disregard by RREEF of its
obligations and duties under the Research and Advisory Agreement.

The Subadvisory Agreement shall continue in effect from year to year thereafter,
but only as long as such continuance is specifically approved at least annually
(a) by a majority of the Trustees of the Trust who are not parties to such
agreement or interested persons of any such party except in their capacity as
Trustees of the Trust, and (b) by the shareholders or the Board of Trustees of
the Trust. The Research and Advisory Agreement may be terminated at any time
upon sixty days' notice by the Advisor or by the Board of Trustees of the Trust
or by majority vote of the outstanding shares of the Fund, and will terminate
automatically upon assignment or upon termination of the Fund's investment
management agreement.

Sub-subadvisors. Pursuant to investment sub-subadvisory agreements between RREEF
and RREEF Global Advisers Limited, Deutsche Asset Management (Hong Kong) Limited
and Deutsche Investments Australia Limited (the "sub-subadvisors"), these
entities act as sub-subadvisors to the Fund. The sub-subadvisors are indirect,
wholly owned subsidiaries of Deutsche Bank AG. As sub-subadvisors, under the
supervision of the Board of Trustees, DIMA and RREEF, the sub-subadvisors manage
the Fund's investments in specific foreign markets.

RREEF Global Advisers Limited, Winchester House, 1 Great Winchester Street,
London, United Kingdom, EC2N 2DB, manages security selection decisions for the
European portion of the fund's portfolio. Deutsche Asset Management (Hong Kong)
Limited, 55/F Cheung Kong Centre, 2 Queen's Road Central, Hong Kong, China, and
Deutsche Investments Australia Limited, Level 21, 83 Clarence Street, Sydney,
Australia, NSW, 2000, manage the stock selection decisions for the Asian and
Australian portions of the Fund's portfolio, respectively.

The Fund's shareholder report for the period ended _____________ will contain a
discussion regarding the basis for the Board of Trustees' approval of the
Agreement, the Subadvisory Agreement and the sub-subadvisory agreements for the
Fund.

Compensation of Portfolio Managers

[TO BE UPDATED]

The Fund has been advised that the Advisor, RREEF, and the sub-subadvisors or
sub-sub-subadvisor seek to offer their investment professionals competitive
short-term and long-term compensation. Portfolio managers and research
professionals are paid (i) fixed base salaries, which are linked to job
function, responsibilities and financial services industry peer comparison and
(ii) variable compensation, which is linked to investment performance,
individual contributions to the team and DWS Scudder's and Deutsche Bank's
financial results. Variable compensation may include a cash bonus incentive and
participation in a variety of long-term equity programs (usually in the form of
Deutsche Bank equity). The portfolio managers are compensated by RREEF and the
sub-subadvisors or sub-sub-subadvisor, as applicable.

Bonus and long-term incentives comprise a greater proportion of total
compensation as an investment professional's seniority and compensation levels
increase. Top performing investment professionals earn a total compensation
package that is highly competitive, including a bonus that is a multiple of
their base salary. The amount of equity awarded under the long-term equity
programs is generally based on the individual's total compensation package and
may comprise from 0%-40% of the total compensation award. As incentive
compensation increases, the percentage of compensation awarded in Deutsche Bank
equity also increases. Certain senior investment professionals may be subject to
a mandatory diverting of a portion of their equity compensation into proprietary
mutual funds that they manage.

To evaluate its investment professionals, the Advisor, RREEF, and the
sub-subadvisors or sub-sub-subadvisor use a Performance Management Process.
Objectives evaluated by the process are related to investment performance and
generally take into account peer group and benchmark related data. The ultimate
goal of this process is to link the


                                       27
<PAGE>

performance of investment professionals with client investment objectives and to
deliver investment performance that meets or exceeds clients' risk and return
objectives. When determining total compensation, the Advisor, RREEF, and the
sub-subadvisors or sub-sub-subadvisor consider a number of quantitative and
qualitative factors such as:

o        DWS Scudder performance and the performance of Deutsche Asset
         Management, quantitative measures which include 1, 3 and 5 year pre-tax
         returns versus benchmark (such as the benchmark used in the prospectus)
         and appropriate peer group, taking into consideration risk targets.
         Additionally, the portfolio manager's retail/institutional asset mix is
         weighted, as appropriate for evaluation purposes.

o        Qualitative measures include adherence to the investment process and
         individual contributions to the process, among other things. In
         addition, the Advisor, RREEF, and the sub-subadvisors or
         sub-sub-subadvisor assess compliance, risk management and teamwork
         skills.

o        Other factors, including contributions made to the investment team as
         well as adherence to compliance, risk management, and "living the
         values" of the Advisor, RREEF, and the sub-subadvisors or
         sub-sub-subadvisor, are part of a discretionary component which gives
         management the ability to reward these behaviors on a subjective basis
         through bonus incentives.

In addition, the Advisor, RREEF, and the sub-subadvisors or sub-sub-subadvisor
analyzes competitive compensation levels through the use of extensive market
data surveys. Portfolio manager compensation is reviewed and may be modified
each year as appropriate to reflect changes in the market, as well as to adjust
the factors used to determine overall compensation to promote good sustained
investment performance.

Fund Ownership of Portfolio Managers

The following table shows the dollar range of shares owned beneficially and of
record by each member of the Fund's portfolio management team in the Fund as
well as in all DWS Funds as a group (i.e. those funds advised by Deutsche Asset
Management or its affiliates), including investments by their immediate family
members sharing the same household and amounts invested through retirement and
deferred compensation plans. This information is provided as of the Fund's most
recent fiscal year end.

                                Dollar Range of       Dollar Range of All DWS
Name of Portfolio Manager      Fund Shares Owned         Fund Shares Owned
-------------------------      -----------------         -----------------

John W. Vojticek
John F. Robertson
John Hammond
William Leung
Daniel Ekins

Conflicts of Interest

In addition to managing the assets of the Fund, the Fund's portfolio managers
may have responsibility for managing other client accounts of the Advisor or its
affiliates. The tables below show, for each portfolio manager, the number and
asset size of (1) SEC registered investment companies (or series thereof) other
than the Fund, (2) pooled investment vehicles that are not registered investment
companies and (3) other accounts (e.g., accounts managed for individuals or
organizations) managed by each portfolio manager. The tables also show the
number of performance based fee accounts, as well as the total assets of the
accounts for which the advisory fee is based on the performance of the account.
This information is provided as of the Fund's most recent fiscal year end.



                                       28
<PAGE>

Other SEC Registered Investment Companies Managed:

<TABLE>
<CAPTION>
                                       Number of        Total Assets of    Number of Investment     Total Assets of
                                      Registered          Registered         Company Accounts        Performance-
                                      Investment          Investment         with Performance-         Based Fee
Name of Portfolio Manager              Companies           Companies             Based Fee             Accounts
-------------------------              ---------           ---------             ---------             --------

<S>     <C>    <C>    <C>    <C>    <C>    <C>
John W. Vojticek
John F. Robertson
John Hammond
William Leung
Daniel Ekins

Other Pooled Investment Vehicles Managed:

                                                                              Number of Pooled
                                      Number of                              Investment Vehicle     Total Assets of
                                       Pooled          Total Assets of         Accounts with         Performance-
                                     Investment       Pooled Investment         Performance-           Based Fee
Name of Portfolio Manager             Vehicles             Vehicles              Based Fee             Accounts
-------------------------             --------             --------              ---------             --------

John W. Vojticek
John F. Robertson
John Hammond
William Leung
Daniel Ekins

Other Accounts Managed:

                                                                              Number of Other     Total Assets of
                                      Number of                                Accounts with        Performance-
                                        Other          Total Assets of         Performance-          Based Fee
Name of Portfolio Manager             Accounts          Other Accounts           Based Fee            Accounts
-------------------------             --------          --------------           ---------            --------

John W. Vojticek
John F. Robertson
John Hammond
William Leung
Daniel Ekins
</TABLE>

In addition to the accounts above, an investment professional may manage
accounts in a personal capacity that may include holdings that are similar to,
or the same as, those of the Fund. The Advisor, RREEF, and the sub-subadvisors
or sub-sub-subadvisor has in place a Code of Ethics that is designed to address
conflicts of interest and that, among other things, imposes restrictions on the
ability of portfolio managers and other "access persons" to invest in securities
that may be recommended or traded in the Fund and other client accounts.



                                       29
<PAGE>

Real, potential or apparent conflicts of interest may arise when a portfolio
manager has day-to-day portfolio management responsibilities with respect to
more than one fund or account, including the following:

o        Certain investments may be appropriate for the Fund and also for other
         clients advised by the Advisor, including other client accounts managed
         by the Fund's portfolio management team. Investment decisions for the
         Fund and other clients are made with a view to achieving their
         respective investment objectives and after consideration of such
         factors as their current holdings, availability of cash for investment
         and the size of their investments generally. A particular security may
         be bought or sold for only one client or in different amounts and at
         different times for more than one but less than all clients. Likewise,
         because clients of the Advisor may have differing investment
         strategies, a particular security may be bought for one or more clients
         when one or more other clients are selling the security. The investment
         results achieved for the Fund may differ from the results achieved for
         other clients of the Advisor. In addition, purchases or sales of the
         same security may be made for two or more clients on the same day. In
         such event, such transactions will be allocated among the clients in a
         manner believed by the Advisor to be most equitable to each client,
         generally utilizing a pro rata allocation methodology. In some cases,
         the allocation procedure could potentially have an adverse effect or
         positive effect on the price or amount of the securities purchased or
         sold by the Fund. Purchase and sale orders for the Fund may be combined
         with those of other clients of the Advisor in the interest of achieving
         the most favorable net results to the Fund and the other clients.

o        To the extent that a portfolio manager has responsibilities for
         managing multiple client accounts, a portfolio manager will need to
         divide time and attention among relevant accounts. The Advisor attempts
         to minimize these conflicts by aligning its portfolio management teams
         by investment strategy and by employing similar investment models
         across multiple client accounts.

o        In some cases, an apparent conflict may arise where the Advisor has an
         incentive, such as a performance-based fee, in managing one account and
         not with respect to other accounts it manages. The Advisor will not
         determine allocations based on whether it receives a performance-based
         fee from the client. Additionally, the Advisor has in place supervisory
         oversight processes to periodically monitor performance deviations for
         accounts with like strategies.

o        The Advisor and its affiliates and the investment team of the Fund may
         manage other mutual funds and separate accounts on a long-short basis.
         The simultaneous management of long and short portfolios creates
         potential conflicts of interest including the risk that short sale
         activity could adversely affect the market value of the long positions
         (and vice versa), the risk arising from sequential orders in long and
         short positions, and the risks associated with receiving opposing
         orders at the same time. The Advisor has adopted procedures that it
         believes are reasonably designed to mitigate these potential conflicts
         of interest. Included in these procedures are specific guidelines
         developed to ensure fair and equitable treatment for all clients whose
         accounts are managed by each Fund's portfolio management team. The
         Advisor and the portfolio management team have established monitoring
         procedures, a protocol for supervisory reviews, as well as compliance
         oversight to ensure that potential conflicts of interest relating to
         this type of activity are properly addressed.

The Advisor is owned by Deutsche Bank AG, a multi-national financial services
company. Therefore, the Advisor is affiliated with a variety of entities that
provide, and/or engage in commercial banking, insurance, brokerage, investment
banking, financial advisory, broker-dealer activities (including sales and
trading), hedge funds, real estate and private equity investing, in addition to
the provision of investment management services to institutional and individual
investors. Since Deutsche Bank AG, its affiliates, directors, officers and
employees (the "Firm") are engaged in businesses and have interests other than
managing asset management accounts, such other activities involve real,
potential or apparent conflicts of interest. These interests and activities
include potential advisory, transactional and financial activities and other
interests in securities and companies that may be directly or indirectly
purchased or sold by the Firm for its clients' advisory accounts. These are
considerations of which advisory clients should be aware and which may cause
conflicts that could be to the disadvantage of the Advisor's advisory clients.
The Advisor has instituted business and compliance policies, procedures and
disclosures that are designed to identify, monitor and mitigate conflicts of
interest and, as appropriate, to report them to the Fund's Board.



                                       30
<PAGE>

Codes of Ethics

The Fund, the Advisor, RREEF, and the sub-subadvisors and sub-sub-subadvisor and
the Fund's principal underwriter have each adopted codes of ethics under Rule
17j-1 under the 1940 Act. Board members, officers of the Trust and employees of
the Advisor, RREEF, and the sub-subadvisors and sub-sub-subadvisor and principal
underwriter are permitted to make personal securities transactions, including
transactions in securities that may be purchased or held by the Fund, subject to
certain requirements and restrictions set forth in the applicable Code of
Ethics. The Advisor's, RREEF's, and the sub-subadvisors' or sub-sub-subadvisor's
Code of Ethics contains provisions and requirements designed to identify and
address certain conflicts of interest between personal investment activities and
the interests of the Fund. Among other things, the Advisor's, RREEF's, and the
sub-subadvisors' or sub-sub-subadvisor's Code of Ethics prohibits certain types
of transactions absent prior approval, imposes time periods during which
personal transactions may not be made in certain securities, and requires the
submission of duplicate broker confirmations and quarterly reporting of
securities transactions. Additional restrictions apply to portfolio managers,
traders, research analysts and others involved in the investment advisory
process. Exceptions to these and other provisions of the Advisor's, RREEF's, and
the sub-subadvisors' or sub-sub-subadvisor's Code of Ethics may be granted in
particular circumstances after review by appropriate personnel.

Regulatory Matters and Legal Proceedings

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

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

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

In addition, DeAM is subject to certain further undertakings relating to the
governance of the mutual funds, including that at least 75% of the members of
the Boards of Trustees/Directors overseeing the DWS Funds continue to be
independent of DeAM; the Chairmen of the DWS Funds' Boards of Trustees/Directors
continue to be independent of DeAM; DeAM maintain existing management fee
reductions for certain funds for a period of five


                                       31
<PAGE>

years and not increase management fees for these certain funds during this
period; the funds retain a senior officer (or independent consultants, as
applicable) responsible for assisting in the review of fee arrangements and
monitoring compliance by the funds and the investment advisors with securities
laws, fiduciary duties, codes of ethics and other compliance policies, the
expense of which shall be borne by DeAM; and periodic account statements, fund
prospectuses and the mutual funds' web site contain additional disclosure and/or
tools that assist investors in understanding the fees and costs associated with
an investment in the funds and the impact of fees and expenses on fund returns.

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

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

Under the terms of the settlements, in which DIMA, DAMI and DWS-SDI neither
admitted nor denied any of the regulators' findings, DIMA, DAMI and DWS-SDI
agreed to pay disgorgement, prejudgment interest and civil penalties in the
total amount of $19.3 million. The portion of the settlements distributed to the
funds was approximately $17.8 million and was paid to the funds as prescribed by
the settlement orders based upon the amount of brokerage commissions from each
fund used to satisfy revenue sharing agreements with broker-dealers who sold
fund shares.

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

Additional information announced by DeAM regarding the terms of the settlements
is available at www.dws-scudder.com/regulatory_settlements.

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

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

                             FUND SERVICE PROVIDERS

Administrator

The Advisor serves as the Fund's administrator pursuant to an Administrative
Services Agreement. Pursuant to the Administrative Services Agreement, the
Advisor provides most administrative services to the Fund including,


                                       32
<PAGE>

among others, providing the Fund with personnel, preparing and making required
filings on behalf of the Fund, maintaining books and records for the Fund, and
monitoring the valuation of Fund securities. For its services under the
Administration Agreement, the Advisor receives a fee of 0.10% of the aggregate
average daily net assets of the Fund.

Under the Administrative Services Agreement, DIMA is obligated on a continuous
basis to provide such administrative services as the Board of Trustees of the
Fund reasonably deems necessary for the proper administration of the Fund. DIMA
provides the Fund with personnel; arranges for the preparation and filing of the
Fund's tax returns; prepares and submits reports and meeting materials to the
Board and the shareholders; prepares and files updates to the Fund's Prospectus
and Statement of Additional Information as well as other reports required to be
filed by the SEC; maintains the Fund's records; provides the Fund with office
space, equipment and services; supervises, negotiates the contracts of and
monitors the performance of third parties contractors; oversees the tabulation
of proxies; monitors the valuation of portfolio securities and monitors
compliance with Board-approved valuation procedures; assists in establishing the
accounting and tax policies of the Fund; assists in the resolution of accounting
issues that may arise with respect to the Fund; establishes and monitors the
Fund's operating expense budgets; reviews and processes the Fund's bills;
assists in determining the amount of dividends and distributions available to be
paid by the Fund, prepares and arranges dividend notifications and provides
information to agents to effect payments thereof; provides to the Board periodic
and special reports; provides assistance with investor and public relations
matters; and monitors the registration of shares under applicable federal and
state law. The Advisor also performs certain fund accounting services under the
Administrative Services Agreement. The Administrative Services Agreement
provides that the Advisor will not be liable under the Administrative Services
Agreement except for willful misfeasance, bad faith or negligence in the
performance of its duties or from the reckless disregard by it of its duties and
obligations thereunder.

As the Fund commenced operations on June __, 2008, the Fund has not yet incurred
an Administration Fee.

Pursuant to an agreement between the Advisor and State Street Bank and Trust
Company ("SSB"), the Advisor has delegated certain administrative functions to
SSB. The costs and expenses of such delegation are borne by the Advisor, not by
the Fund.

Pursuant to DeAM procedures approved by the Boards on behalf of the DWS funds,
proof of claim forms are routinely filed on behalf of the DWS funds by a third
party service provider, with certain limited exceptions. The Boards of the DWS
funds receive periodic reports regarding the implementation of these procedures.

Distributor

The Trust, on behalf of the Fund, has entered into a Underwriting and
Distribution Services Agreement (the "Distribution Agreement") pursuant to which
DWS-SDI, 222 South Riverside Plaza, Chicago, IL 60606 as agent, serves as
principal underwriter for the continuous offering of shares of the Fund.
DWS-SDI, an affiliate of the Advisor, is a wholly owned subsidiary of Deutsche
Bank AG. DWS-SDI has agreed to use its best efforts to solicit orders for the
purchase of shares of the Fund, although it is not obligated to sell any
particular amount of shares. The Distribution Agreement for the Fund, dated June
__, 2008, was initially approved by the Directors on March __, 2008.

Under the Distribution Agreement, the Fund is responsible for: the payment of
all fees and expenses in connection with the preparation and filing with the SEC
of its registration statement and prospectus and any amendments and supplements
thereto; the registration and qualification of shares for sale in the various
states, including registering the Fund as a broker or dealer in various states,
as required; the fees and expenses of preparing, printing and mailing Prospectus
annually to existing shareholders (see below for expenses relating to Prospectus
paid by the Distributor); notices, proxy statements, reports or other
communications to shareholders of the Fund; the cost of printing and mailing
confirmations of purchases of shares and any Prospectus accompanying such
confirmations; any issuance taxes and/or any initial transfer taxes; a portion
of shareholder toll-free telephone charges and expenses of shareholder service
representatives; the cost of wiring funds for share purchases and redemptions
(unless paid by the shareholder who initiates the transaction); the cost of
printing and postage of business reply envelopes; and a portion of the cost of
computer terminals used by both the Fund and the Distributor.



                                       33
<PAGE>

The Distributor will pay for printing and distributing Prospectus or reports
prepared for its use in connection with the offering of the Fund's shares to the
public and preparing, printing and mailing any other literature or advertising
in connection with the offering of shares of the fund to the public. The
Distributor will pay all fees and expenses in connection with its qualification
and registration as a broker or dealer under federal and state laws, a portion
of the cost of toll-free telephone service and expenses of shareholder service
representatives, a portion of the cost of computer terminals, and expenses of
any activity which is primarily intended to result in the sale of shares issued
by the fund, unless a Rule 12b-1 Plan is in effect which provides that the Fund
shall bear some or all of such expenses.

Although the Fund does not currently have a 12b-1 Plan for Class S shares, and
the Trustees have no current intention of adopting one, the Fund will also pay
those fees and expenses permitted to be paid or assumed by the Trust pursuant to
a 12b-1 Plan, if any, adopted by the Trust, notwithstanding any other provision
to the contrary in the underwriting agreement.

The Distributor currently offers shares of the Fund on a continuous basis to
investors in all states in which shares of the Fund may from time to time be
registered or where permitted by applicable law. The underwriting agreement
provides that the Distributor accepts orders for shares at net asset value
because no sales commission or load is charged to the investor. The Distributor
has made no firm commitment to acquire shares of the Fund.

Custodian

Brown Brothers Harriman and Co. (the "Custodian"), 40 Water Street, Boston,
Massachusetts 02109, serves as the Trust's custodian pursuant to a Custodian
Agreement. Under its custody agreement with the Trust, the Custodian (i)
maintains separate accounts in the name of the Fund, (ii) holds and transfers
portfolio securities on account of the Fund, (iii) accepts receipts and makes
disbursements of money on behalf of the Fund, (iv) collects and receives all
income and other payments and distributions on account of the Fund's portfolio
securities and (v) makes periodic reports to the Trust's Board of Trustees
concerning the Fund's operations. The Custodian is authorized to select one or
more foreign or domestic banks or companies to serve as sub-custodian on behalf
of the Fund, pursuant to Rule 17f-5 under the 1940 Act.

Transfer Agent and Shareholder Service Agent

DWS Scudder Investments Service Company ("DWS-SISC" or the "Transfer Agent"),
210 W. 10th Street, Kansas City, Missouri 64105-1614, an affiliate of the
Advisor, is the transfer agent, dividend-paying agent and shareholder service
agent for the Fund pursuant to a transfer agency agreement (the "Transfer Agency
Agreement"), under which the Transfer Agent (i) maintains record shareholder
accounts, and (ii) makes periodic reports to the Trust's Board of Trustees
concerning the operations of the Fund. Prior to April 1, 2007, DWS Scudder
Service Corporation ("DWS-SSC") was the transfer agent, dividend-paying agent
and shareholder service agent for the Fund. On April 1, 2007 DWS-SCC merged into
DWS-SISC. As a result of the merger, DWS-SISC is now the Fund's transfer agent,
dividend-paying agent and shareholder service agent.

The Transfer Agent receives an annual service fee for each account of the Fund,
based on the type of account. For open retail accounts, the fee is a flat fee
ranging from $20.00 to $27.50 per account, for open wholesale money funds the
fee is $32.50 per account, while for certain retirement accounts serviced on the
recordkeeping system of ADP, Inc., the fee is a flat fee up to $3.60 per account
(as of 2007, indexed to inflation) plus an asset based fee of up to 0.25% of
average net assets. 1/12th of the annual service charge for each account is
charged and payable to the Transfer Agent each month. A fee is charged for any
account which at any time during the month had a share balance in the Fund.
Smaller fees are also charged for closed accounts for which information must be
retained on the Transfer Agent's system for up to 18 months after closing for
tax reporting purposes.

Certain out-of-pocket expenses incurred by the Transfer Agent, including
expenses of printing and mailing routine fund disclosure documents, costs of
record retention and transaction processing costs are reimbursed by the Fund or
are paid directly by the Fund. Certain additional out-of-pocket expenses,
including costs of computer hardware and software, third party record-keeping
and processing of proxy statements, may only be reimbursed by the Fund with the
prior approval of the Fund's Board.



                                       34
<PAGE>

Effective April 1, 2007, DWS Scudder Investments Service Company is the Transfer
Agent for all classes of all DWS funds.

Pursuant to a sub-transfer agency agreement between DWS-SISC and DST Systems,
Inc. ("DST"), DWS-SISC has delegated certain transfer agent, dividend paying
agent and shareholder servicing agent functions to DST. The costs and expenses
of such delegation are borne by DWS-SISC, not by the Fund.

Since the Fund commenced operations on June __, 2008, the Fund has not incurred
any transfer agent fee fees as of the date of this Statement of Additional
Information.

The Fund, or the Advisor (including any affiliate of the Advisor), or both, may
pay unaffiliated third parties for providing recordkeeping and other
administrative services with respect to beneficial owners of Fund shares whose
interests are generally held in an omnibus account.

Independent Registered Public Accounting Firm

___________________, independent registered public accounting firm, given on the
authority of said firm as experts in auditing and accounting, audits the
financial statements of the Fund and provides other audit, tax and related
services. Shareholders will receive annual audited financial statements and
semi-annual unaudited financial statements.

Legal Counsel

Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, New York 10019,
serves as legal counsel to the Fund.

Ropes & Gray, One International Place, Boston, Massachusetts 02110-2624, serves
as counsel to the Independent Trustees to the Trust.

                             PORTFOLIO TRANSACTIONS

The Advisor is generally responsible for placing the orders for the purchase and
sale of portfolio securities, including the allocation of brokerage. With
respect to those funds for which a sub-investment advisor manages the fund's
investments, references in this section to the "Advisor" should be read to mean
RREEF and the sub-subadvisors or sub-sub-subadvisor, as applicable, except as
noted below.

The policy of the Advisor in placing orders for the purchase and sale of
securities for the Fund is to seek best execution, taking into account such
factors, among others, as price; commission (where applicable); the
broker-dealer's ability to ensure that securities will be delivered on
settlement date; the willingness of the broker-dealer to commit its capital and
purchase a thinly traded security for its own inventory; whether the
broker-dealer specializes in block orders or large program trades; the
broker-dealer's knowledge of the market and the security; the broker-dealer's
ability to maintain confidentiality; the financial condition of the
broker-dealer; and whether the broker-dealer has the infrastructure and
operational capabilities to execute and settle the trade. The Advisor seeks to
evaluate the overall reasonableness of brokerage commissions with commissions
charged on comparable transactions and compares the brokerage commissions (if
any) paid by the Fund to reported commissions paid by others. The Advisor
routinely reviews commission rates, execution and settlement services performed
and makes internal and external comparisons.

Commission rates on transactions in equity securities on US securities exchanges
are subject to negotiation. Commission rates on transactions in equity
securities on foreign securities exchanges are generally fixed. Purchases and
sales of fixed-income securities and certain over-the-counter securities are
effected on a net basis, without the payment of brokerage commissions.
Transactions in fixed income and certain over-the-counter securities are
generally placed by the Advisor with the principal market makers for these
securities unless the Advisor reasonably believes more favorable results are
available elsewhere. Transactions with dealers serving as market makers reflect
the spread between the bid and asked prices. Purchases of underwritten issues
will include an underwriting fee paid


                                       35
<PAGE>

to the underwriter. Money market instruments are normally purchased in principal
transactions directly from the issuer or from an underwriter or market maker.

It is likely that the broker-dealers selected based on the considerations
described in this section will include firms that also sell shares of the Fund
to their customers. However, the Advisor does not consider sales of shares of
the Fund as a factor in the selection of broker-dealers to execute portfolio
transactions for the Fund and, accordingly, has implemented policies and
procedures reasonably designed to prevent its traders from considering sales of
shares of the Funds as a factor in the selection of broker-dealers to execute
portfolio transactions for the Funds.

The Advisor is permitted by Section 28(e) of the 1934 Act, when placing
portfolio transactions for the Fund, to cause the Fund to pay brokerage
commissions in excess of that which another broker-dealer might charge for
executing the same transaction in order to obtain research and brokerage
services if the Advisor determines that such commissions are reasonable in
relation to the overall services provided. The Advisor may from time to time, in
reliance on Section 28(e) of the 1934 Act, execute portfolio transactions with
broker-dealers that provide research and brokerage services to the Advisor.
Consistent with the Advisor's policy regarding best execution, where more than
one broker is believed to be capable of providing best execution for a
particular trade, the Advisor may take into consideration the receipt of
research and brokerage services in selecting the broker-dealer to execute the
trade. Although certain research and brokerage services from broker-dealers may
be useful to the Fund and to the Advisor, it is the opinion of the Advisor that
such information only supplements its own research effort since the information
must still be analyzed, weighed and reviewed by the Advisor's staff. Research
and brokerage services received from a broker-dealer may be useful to the
Advisor in providing services to clients other than the Fund making the trade,
and not all such information is used by the Advisor in connection with the Fund.
Conversely, such information provided to the Advisor by broker-dealers through
which other clients of the Advisor effect securities transactions may be useful
to the Advisor in providing services to the Fund.

Research and brokerage services provided by broker-dealers may include, but are
not limited to, information on the economy, industries, groups of securities,
individual companies, statistical information, accounting and tax law
interpretations, political developments, legal developments affecting portfolio
securities, technical market action, pricing and appraisal services, credit
analysis, risk measurement analysis, performance analysis and measurement and
analysis of corporate responsibility issues. Research is typically received in
the form of written reports, access to specialized financial publications,
telephone contacts and personal meetings with security analysts, but may also be
provided in the form of access to various computer software and associated
hardware, and meetings arranged with corporate and industry representatives.

The Advisor may also select broker-dealers and obtain from them research and
brokerage services that are used in connection with executing trades provided
that such services are consistent with interpretations under Section 28(e) of
the 1934 Act. Typically, these services take the form of computer software
and/or hardware used by the Advisor to facilitate trading activity with those
broker-dealers.

Research and brokerage services may include products obtained from third parties
if the Advisor determines that such product or service constitutes brokerage and
research as defined in Section 28(e) and interpretations thereunder. Currently,
it is the Advisor's policy that Sub-Advisors may not execute portfolio
transactions on behalf of the Fund to obtain third party research and brokerage
services. The Advisor may, in the future, change this policy. Regardless,
certain Sub-Advisors may, as matter of internal policy, limit or preclude third
party research and brokerage services.

DIMA will monitor regulatory developments and market practice in the use of
client commissions to obtain research and brokerage services and may adjust its
portfolio transactions policies in response thereto.

Investment decisions for the Fund and for other investment accounts managed by
the Advisor are made independently of each other in light of differing
conditions. However, the same investment decision may be made for two or more of
such accounts. In such cases, simultaneous transactions are inevitable. To the
extent permitted by law, the Advisor may aggregate the securities to be sold or
purchased for the Fund with those to be sold or purchased for other accounts in
executing transactions. Purchases or sales are then averaged as to price and
commission and allocated as to amount in a manner deemed equitable to each
account. While in some cases this practice could have a detrimental effect on
the price paid or received by, or on the size of the position obtained or


                                       36
<PAGE>

disposed of for, the Fund, in other cases it is believed that the ability to
engage in volume transactions will be beneficial to the Fund.

DIMA and its affiliates and the Fund's management team manage other mutual funds
and separate accounts, some of which use short sales of securities as a part of
its investment strategy. The simultaneous management of long and short
portfolios creates potential conflicts of interest including the risk that short
sale activity could adversely affect the market value of the long positions (and
vice versa), the risk arising from sequential orders in long and short
positions, and the risks associated with receiving opposing orders at the same
time.

DIMA has adopted procedures that it believes are reasonably designed to mitigate
these potential conflicts of interest. Incorporated in the procedures are
specific guidelines developed to ensure fair and equitable treatment for all
clients. DIMA and the investment team have established monitoring procedures, a
protocol for supervisory reviews, as well as compliance oversight to ensure that
potential conflicts of interest relating to this type of activity are properly
addressed.

Deutsche Bank AG or one of its affiliates (or in the case of a Sub-Advisor, the
Sub-Advisor or one of its affiliates) may act as a broker for the Fund and
receive brokerage commissions or other transaction-related compensation from the
Fund in the purchase and sale of securities, options or futures contracts when,
in the judgment of the Advisor, and in accordance with procedures approved by
the Fund's Board, the affiliated broker will be able to obtain a price and
execution at least as favorable as those obtained from other qualified brokers
and if, in the transaction, the affiliated broker charges the Fund a rate
consistent with that charged to comparable unaffiliated customers in similar
transactions.

Since the Fund commenced operations on June __, 2008, the Fund has not incurred
any brokerage commissions as of the date of this Statement of Additional
Information.

Securities of Regular Broker-Dealers. The Fund is required to identify any
securities of its "regular brokers or dealers" (as such term is defined in the
1940 Act) that the Fund has acquired during its most recent fiscal year. Since
the Fund commenced operations on June __, 2008, the Fund did not hold any
securities of its regular brokers or dealers as of the date of this Statement of
Additional Information.

Portfolio Turnover

The Advisor will purchase and sell securities without regard to the length of
time the security has been held. Accordingly, the Fund's rate of portfolio
turnover may be substantial.

The Advisor intends to purchase a given security whenever it believes it will
contribute to the stated objective of the Fund. In order to achieve the Fund's
investment objectives, the Advisor may sell a given security, no matter how long
or how short a period it has been held in the portfolio, and no matter whether
the sale is at a gain or at a loss, if the Advisor believes that the security is
not fulfilling its purpose, either because, among other things, it did not live
up to the Advisor's expectations, or because it may be replaced with another
security holding greater promise, or because it has reached its optimum
potential, or because of a change in the circumstances of a particular company
or industry or in general economic conditions, or because of some combination of
such reasons.

Because investment decisions are based on the anticipated contribution of the
security in question to the Fund's objective, the Advisor believes that the rate
of portfolio turnover is irrelevant when it believes a change is in order to
achieve the objectives. As a result, the Fund's annual portfolio turnover rate
cannot be anticipated and may be higher than other mutual funds with similar
investment objective. Higher turnover would generate correspondingly greater
brokerage commissions, which is a cost the Fund pays directly. Portfolio
turnover also may affect the character of capital gains realized and distributed
by the Fund, if any, because short-term capital gains are taxable as ordinary
income.



                                       37
<PAGE>

                        PURCHASE AND REDEMPTION OF SHARES

General Information

Policies and procedures affecting transactions in Fund shares can be changed at
any time without notice, subject to applicable law. Transactions may be
contingent upon proper completion of application forms and other documents by
shareholders and their receipt by the Fund's agents. Transaction delays in
processing (and changing account features) due to circumstances within or beyond
the control of the Fund and its agents may occur. Shareholders (or their
financial service firms) are responsible for all losses and fees resulting from
bad checks, cancelled orders or the failure to consummate transactions effected
pursuant to instructions reasonably believed to genuine.

A distribution will be reinvested in shares of the same Fund and class if the
distribution check is returned as undeliverable.

Orders will be confirmed at a price based on the net asset value of the Fund
next determined after receipt in good order by DWS-SDI of the order accompanied
by payment. However, orders received by dealers or other financial services
firms prior to the determination of net asset value and received in good order
by DWS-SDI prior to the determination of net asset value next determined after
receipt by DWS-SDI will be confirmed at a price based on the net asset value
("trade date").

Certificates. Share certificates will not be issued.

Additional Minimum Balance Policies. For fiduciary accounts such as IRAs, and
custodial accounts such as Uniform Gifts to Minor Act and Uniform Transfers to
Minor Act accounts, the minimum balance is $1,000 for Class S. A shareholder may
open an account with at least $1,000 ($500 for fiduciary/custodial accounts), if
an automatic investment plan (AIP) of $50/month is established. DWS Scudder
group retirement plans and certain other accounts have similar or lower minimum
share balance requirements.

Shareholders with a combined household account balance in any of the DWS Funds
of $100,000 or more, as well as group retirement and certain other accounts,
will not be subject to an automatic redemption.

Fiduciary (e.g., IRA or Roth IRA) and custodial accounts (e.g., UGMA or UTMA)
with balances below $1,000 are subject to automatic redemption following 60
days' written notice to applicable shareholders.

Use of Financial Services Firms. Investment dealers and other firms provide
varying arrangements for their clients to purchase and redeem the Fund's shares,
including higher minimum investments, and may assess transaction or other fees.
Firms may arrange with their clients for other investment or administrative
services. Such firms may independently establish and charge additional amounts
to their clients for such services. Firms also may hold the Fund's shares in
nominee or street name as agent for and on behalf of their customers. In such
instances, the Fund's transfer agent, DWS Scudder Service Corporation ("DWS-SSC"
or the "Transfer Agent"), will have no information with respect to or control
over the accounts of specific shareholders. Such shareholders may obtain access
to their accounts and information about their accounts only from their firm.
Certain of these firms may receive compensation from the Fund through the
Shareholder Service Agent for record-keeping and other expenses relating to
these nominee accounts. In addition, certain privileges with respect to the
purchase and redemption of shares or the reinvestment of dividends may not be
available through such firms. Some firms may participate in a program allowing
them access to their clients' accounts for servicing including, without
limitation, transfers of registration and dividend payee changes; and may
perform functions such as generation of confirmation statements and disbursement
of cash dividends. Such firms, including affiliates of DWS-SDI, may receive
compensation from the Fund through the Shareholder Service Agent for these
services.

The Fund will be deemed to have received a purchase or redemption order when an
authorized broker, service organization or, if applicable, an authorized
designee, accepts the order. Shares of the Fund may be purchased or redeemed on
any business day at the net asset value next determined after receipt of the
order, in good order, by the Transfer Agent. Investors who invest through
authorized brokers, service organizations or their designated


                                       38
<PAGE>

intermediaries should submit purchase and redemption orders directly to their
broker, service organization or designated intermediary. The broker or
intermediary may charge you a transaction fee.

The Fund has authorized one or more financial service institutions, including
certain members of the NASD other than the Distributor ("financial
institutions"), to accept purchase and redemption orders for the Fund's shares.
Such financial institutions may also designate other parties, including plan
administrator intermediaries, to accept purchase and redemption orders on the
Fund's behalf. Orders for purchases or redemptions will be deemed to have been
received by the Fund when such financial institutions or, if applicable, their
authorized designees accept the orders. Subject to the terms of the contract
between the Fund and the financial institution, ordinarily orders will be priced
at the Fund's net asset value next computed after acceptance by such financial
institution or its authorized designees and accepted by the Fund. Further, if
purchases or redemptions of the Fund's shares are arranged and settlement is
made at an investor's election through any other authorized financial
institution, that financial institution may, at its discretion, charge a fee for
that service. The Board of Trustees and the Distributor, also the Fund's
principal underwriter, each has the right to limit the amount of purchases by,
and to refuse to sell to, any person. The Trustees and the Distributor may
suspend or terminate the offering of shares of the Fund at any time for any
reason.

DWS-SDI has adopted an Incentive Plan (the "Plan") covering wholesalers that are
regional vice presidents ("DWS Scudder Wholesalers"). Generally, DWS Scudder
Wholesalers market shares of the DWS funds to financial advisors, who in turn
may recommend that investors purchase shares of a DWS fund. The Plan is an
incentive program that combines a monthly incentive component with a quarterly
strategic bonus component. Under the Plan, DWS Scudder Wholesalers will receive
a monetary monthly incentive based on the amount of sales generated from their
marketing of the funds, and that incentive will differ depending on the product
category of the fund. Each fund is assigned to one of three product
categories--"Strategic," "Tactical" or "all other funds"-taking into
consideration, among other things, the following criteria, where applicable:

o        The Fund's consistency with DWS Scudder's branding and long-term
         strategy.

o        The Fund's competitive performance;

o        The Fund's Morningstar rating;

o        The length of time the Fund's Portfolio Managers have managed the
         Fund/Strategy

o        Market size for the fund category;

o        The Fund's size, including sales and redemptions of the Fund's shares;

This information and other factors are presented to a committee comprised of
representatives from various groups within DWS Scudder, who review on a
quarterly basis the funds assigned to each product category described above, and
make any changes to those assignments at that time. No one factor, whether
positive or negative, determines a fund's placement in a given category; all
these factors together are considered, and the designation of funds in the
Strategic and Tactical categories represents management's judgment based on the
above criteria. In addition, management may consider a fund's profile over the
course of several review periods before making a change to its category
assignment. These category assignments will be posted quarterly to the DWS
funds' Web site at www.dws-scudder.com, approximately one month after the end of
each quarter. DWS Scudder Wholesalers receive the highest compensation for
Strategic funds, less for Tactical funds and the lowest for all other funds. The
level of compensation among these categories may differ significantly.

The prospect of receiving, or the receipt of, additional compensation by a DWS
Scudder Wholesaler under the Plan may provide an incentive to favor marketing
the Strategic or Tactical funds over all other funds. The Plan, however, will
not change the price that investors pay for shares of a fund. The DWS Scudder
Compliance Department monitors DWS Scudder Wholesaler sales and other activity
in an effort to detect unusual activity in the context of the compensation
structure under the Plan. However, investors may wish to take the Plan and the
product category of the fund into account when considering purchasing a fund or
evaluating any recommendations relating to fund shares.

Telephone and Electronic Transaction Procedures. Shareholders have various
telephone, Internet, wire and other electronic privileges available. The Fund or
its agents will not be liable for any losses, expenses or costs arising out of
fraudulent or unauthorized instructions pursuant to these privileges if the Fund
or its agents reasonably believe, based upon reasonable verification procedures,
that the instructions were genuine. Verification procedures include recording


                                       39
<PAGE>

instructions, requiring certain identifying information before acting upon
instructions and sending written confirmations. During periods when it is
difficult to contact the Shareholder Service Agent, it may be difficult to use
telephone, wire and other privileges.

QuickBuy and QuickSell. QuickBuy and QuickSell permits the transfer of money via
the Automated Clearing House System (minimum $50 and maximum $250,000) from or
to a shareholder's bank, savings and loan, or credit union account in connection
with the purchase or redemption of Fund shares. Shares purchased by check or
through QuickBuy and QuickSell or Direct Deposit may not be redeemed under this
privilege until such Shares have been owned for at least 10 calendar days.
QuickBuy and QuickSell cannot be used with passbook savings accounts or for
certain tax-deferred plans.

Share Pricing. Purchases will be filled at the net asset value per share next
computed after receipt of the application in good order. The net asset value of
shares of each Fund is calculated at 4:00 p.m. Eastern time or the close of
business on each day the New York Stock Exchange (the "Exchange") is open for
trading. Orders received after the close of regular trading on the Exchange will
be executed at the next business day's net asset value. If the order has been
placed by a member of FINRA, other than the Distributor, it is the
responsibility of the member broker, rather than the Fund, to forward the
purchase order to Transfer Agent in Kansas City by the close of regular trading
on the Exchange.

Dividend Payment Option. Investors may have dividends and distributions
automatically deposited to their predesignated bank account through DWS
Scudder's Dividend Payment Option request form. Shareholders whose predesignated
checking account of record is with a member bank of Automated Clearing House
Network (ACH) can have income and capital gain distributions automatically
deposited to their personal bank account usually within three business days
after the Fund pays its distribution. A Dividend Payment Option request form can
be obtained by visiting our Web site at: www.dws-scudder.com or calling (800)
621-1048. Confirmation Statements will be mailed to shareholders as notification
that distributions have been deposited.

Tax-Sheltered Retirement Plans. The Shareholder Service Agent provides
retirement plan services and documents and SDI can establish investor accounts
in any of the following types of retirement plans:

o        403(b)(7) Custodial Accounts, prototype money purchase pension and
         profit-sharing plans. Forms for existing plans are available through
         the Shareholder Service Agent.

Additional fees and transaction policies and procedures may apply to such plans.
Investors should consult with their own tax advisors before establishing a
retirement plan.

Share Pricing. Purchases will be filled at the net asset value per share next
computed after receipt of the application in good order. The net asset value of
shares of each Fund is calculated at 4:00 p.m. Eastern time or the close of
business on each day the New York Stock Exchange (the "Exchange") is open for
trading. Orders received after the close of regular trading on the Exchange will
be executed at the next business day's net asset value. If the order has been
placed by a member of the NASD, other than the Distributor, it is the
responsibility of the member broker, rather than the fund, to forward the
purchase order to the transfer agent in Kansas City by the close of regular
trading on the Exchange.

Dividend Payment Option. Investors may have dividends and distributions
automatically deposited to their predesignated bank account through DWS
Scudder's Dividend Payment Option request form. Shareholders whose predesignated
checking account of record is with a member bank of Automated Clearing House
Network (ACH) can have income and capital gain distributions automatically
deposited to their personal bank account usually within three business days
after a Fund pays its distribution. A Dividend Payment Option request form can
be obtained by visiting our Web site at: www.dws-scudder.com or calling (800)
728-3337. Confirmation Statements will be mailed to shareholders as notification
that distributions have been deposited.



                                       40
<PAGE>

Purchases

The Fund reserves the right to withdraw all or any part of the offering made by
its prospectus and to reject purchase orders for any reason. Also, from time to
time, the Fund may temporarily suspend the offering of any class of its shares
to new investors. During the period of such suspension, persons who are already
shareholders of such class of such Fund may be permitted to continue to purchase
additional shares of such class and to have dividends reinvested.

To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account. For
more information, please see "Policies You Should Know About" in the Fund's
Prospectus.

The Fund may waive the minimum for purchases by trustees, directors, officers or
employees of the Fund or the Advisor and its affiliates.

Class S shares of the Fund will generally not be available to new investors.

Eligible Class S Investors

A.        The following investors may purchase Class S shares of DWS Funds
          either (i) directly from DWS Scudder Distributors, Inc. ("DWS-SDI"),
          the Fund's principal underwriter; or (ii) through an intermediary
          relationship with a financial services firm established with respect
          to the DWS Funds as of December 31, 2004.

          1.      Existing shareholders of Class S shares of any DWS Fund as of
                  December 31, 2004, and household members residing at the same
                  address.

          2.      Shareholders of Class S of any DWS Fund who became Class S
                  shareholders in connection with the consolidation of Class
                  AARP and Class S on July 17, 2006 and household members
                  residing at the same address.

          3.      Shareholders who have owned Class S shares continuously since
                  December 31, 2004 and household members residing at the same
                  address may open new accounts for Class S shares of any DWS
                  Fund.

          4.      Any participant who has owned Class S shares of any DWS Fund
                  through an employee sponsored retirement, employee stock,
                  bonus, pension or profit sharing plan continuously since
                  December 31, 2004 may open a new individual account for Class
                  S shares of any DWS Fund.

          5.      Any participant who owns Class S shares of any DWS Fund
                  through a retirement, employee stock, bonus, pension or profit
                  sharing plan may complete a direct rollover to an IRA account
                  that will hold Class S shares. This applies to individuals who
                  begin their retirement plan investments with a DWS Fund at any
                  time, including after December 31, 2004.

          6.      Officers, Fund Trustees and Directors, and full-time employees
                  and their family members, of the Advisor and its affiliates.

          7.      Class S shares are available to any accounts managed by the
                  Advisor, any advisory products offered by the Advisor or
                  DWS-SDI and to DWS Allocation Series or other fund of funds
                  managed by the Advisor or its affiliates.

          8.      Shareholders of Class S of DWS Emerging Markets Equity Fund
                  who became shareholders of the fund in connection with the
                  fund's acquisition of Scudder New Asia Fund, Inc. on April 17,
                  2006.



                                       41
<PAGE>

          9.      Shareholders of Class S of any DWS Fund who became Class S
                  shareholders in connection with the consolidation of Class M
                  and Class S on August 18, 2006 and household members residing
                  at the same address.

          10.     Shareholders of Class S of any DWS Fund who became Class S
                  shareholders in connection with the renaming or conversion of
                  Investment Class to Class S on October 23, 2006.

B. The following additional investors may purchase Class S shares of DWS Funds.

          1.      Broker-dealers, banks and registered investment advisors
                  ("RIAs") may purchase Class S shares in connection with a
                  comprehensive or "wrap" fee program or other fee based
                  program.

          2.      Any group retirement, employee stock, bonus, pension or
                  profit-sharing plans.

          3.      Persons who purchase shares as part of an investment only
                  placement in a 529 College Savings Plan.

          4.      Persons who purchase shares through a Health Savings Account
                  or a Voluntary Employees' Benefit Association ("VEBA") Trust.

DWS-SDI may, at its discretion, require appropriate documentation that shows an
investor is eligible to purchase Class S shares.

Clients having a regular investment counsel account with the Advisor or its
affiliates and members of their immediate families, officers and employees of
the Advisor or of any affiliated organization and members of their immediate
families, members of the NASD and banks may, if they prefer, subscribe initially
for at least $2,500 through DeAM Investor Services, Inc. by letter, fax, or
telephone.

Revenue Sharing

In light of recent regulatory developments, the Advisor, the Distributor and
their affiliates have undertaken to furnish certain additional information below
regarding the level of payments made by them to selected affiliated and
unaffiliated brokers, dealers, participating insurance companies or other
financial intermediaries ("financial advisors") in connection with the sale
and/or distribution of Fund shares or the retention and/or servicing of
investors and Fund shares ("revenue sharing").

The Advisor, the Distributor and/or their affiliates may pay additional
compensation, out of their own assets and not as an additional charge to each
Fund, to financial advisors in connection with the sale and/or distribution of
Fund shares or the retention and/or servicing of Fund investors and Fund shares.
Such revenue sharing payments are in addition to any distribution or service
fees payable under any Rule 12b-1 or service plan of any fund, any record
keeping/sub-transfer agency/networking fees payable by each Fund (generally
through the Distributor or an affiliate) and/or the Distributor to certain
financial advisors for performing such services and any sales charges,
commissions, non-cash compensation arrangements expressly permitted under
applicable rules of FINRA or other concessions described in the fee table or
elsewhere in the Prospectuses or the SAI as payable to all financial advisors.
For example, the Advisor, the Distributor and/or their affiliates may compensate
financial advisors for providing each Fund with "shelf space" or access to a
third party platform or fund offering list, or other marketing programs
including, without limitation, inclusion of each Fund on preferred or
recommended sales lists, mutual fund "supermarket" platforms and other formal
sales programs; granting the Distributor access to the financial advisor's sales
force; granting the Distributor access to the financial advisor's conferences
and meetings; assistance in training and educating the financial advisor's
personnel; and, obtaining other forms of marketing support. The level of revenue
sharing payments made to financial advisors may be a fixed fee or based upon one
or more of the following factors: gross sales, current assets and/or number of
accounts of each Fund attributable to the financial advisor, the particular fund
or fund type or other measures as agreed to by the Advisor, the Distributor
and/or their affiliates and the financial advisors or any combination thereof.
The amount of these payments is determined at the discretion of


                                       42
<PAGE>

the Advisor, the Distributor and/or their affiliates from time to time, may be
substantial, and may be different for different financial advisors based on, for
example, the nature of the services provided by the financial advisor.

The Advisor, the Distributor and/or their affiliates currently make revenue
sharing payments from their own assets in connection with the sale and/or
distribution of DWS Fund shares, or the retention and/or servicing of investors,
to financial advisors in amounts that generally range from .01% up to .50% of
assets of the Fund serviced and maintained by the financial advisor, .10% to
..25% of sales of the Fund attributable to the financial advisor, a flat fee of
$12,500 up to $500,000, or any combination thereof. These amounts are annual
figures typically paid on a quarterly basis and are subject to change at the
discretion of the Advisor, the Distributor and/or their affiliates. Receipt of,
or the prospect of receiving, this additional compensation, may influence your
financial advisor's recommendation of this Fund or of any particular share class
of the Fund. You should review your financial advisor's compensation disclosure
and/or talk to your financial advisor to obtain more information on how this
compensation may have influenced your financial advisor's recommendation of this
Fund.

The Advisor, the Distributor and/or their affiliates may also make such revenue
sharing payments to financial advisors under the terms discussed above in
connection with the distribution of both DWS funds and non-DWS funds by
financial advisors to retirement plans that obtain record keeping services from
ADP, Inc. on the DWS Scudder branded retirement plan platform (the "Platform")
with the level of revenue sharing payments being based upon sales of both the
DWS funds and the non-DWS funds by the financial advisor on the Platform or
current assets of both the DWS funds and the non-DWS funds serviced and
maintained by the financial advisor on the Platform.

As of the date hereof, each Fund has been advised that the Advisor, the
Distributor and their affiliates expect that the following firms will receive
revenue sharing payments at different points during the coming year as described
above:

Channel: Broker-Dealers and Financial Advisors

A G Edwards & Sons Inc.
AIG Advisors Group
Ameriprise
Cadaret, Grant & Co. Inc.
Capital Analyst, Incorporated
Citigroup Global Markets, Inc. (dba Smith Barney)
Commonwealth Equity Services, LLP (dba Commonwealth Financial Network)
Deutsche Bank Group
First Clearing/Wachovia Securities
HD Vest Investment Securities, Inc.
ING Group
John Hancock Distributors LLC
LaSalle Financial Services, Inc. (dba ABN Amro)
Linsco/Private Ledger Corp.
M.L. Stern & Co.
Marsh Insurance and Investment Company
Meridien Financial Group
Merrill Lynch, Pierce, Fenner & Smith Inc.
Morgan Stanley
Oppenheimer & Co., Inc.
Raymond James & Associates
Raymond James Financial Services
RBC Dain Rauscher, Inc
Securities America, Inc.
UBS Financial Services
Wells Fargo Investments, LLC



                                       43
<PAGE>

Channel: Cash Product Platform

Allegheny Investments LTD
Bank of New York (Hare & Co.)
Bear, Stearns Securities Corp.
Brown Brothers Harriman
Brown Investment Advisory & Trust Company
Cadaret Grant & Co.
Chicago Mercantile Exchange
D.A. Davidson & Company
Deutsche Bank Group
Emmett A. Larkin Company
Fiduciary Trust Co. -- International
First Southwest Company
Huntleigh Securities
Lincoln Investment Planning
LPL Financial Services
Mellon Financial Markets LLC
Penson Financial Services
Pershing Choice Platform
ProFunds Distributors, Inc.
Ridge Clearing & Outsourcing Solutions
Romano Brothers and Company
SAMCO Capital Markets
Smith Moore & Company
Sungard Institutional Brokerage Inc.
US Bancorp
UBS
William Blair & Company

Channel: Third Party Insurance Platforms

Allstate Life Insurance Company of New York
Ameritas Life Insurance Group
American General Life Insurance Company
Annuity Investors Life Insurance Company
Columbus Life Insurance Company
Commonwealth Annuity and Life Insurance Company
Companion Life Insurance Company
Connecticut General Life Insurance Company
Farmers New World Life Insurance Company
Fidelity Security Life Insurance Company
First Allmerica Financial Life Insurance Company
First Great West Life and Annuity Company
Genworth Life Insurance Company of New York
Genworth Life and Annuity Insurance Company
Great West Life and Annuity Insurance Company
Hartford Life Insurance Company
Integrity Life Insurance Company
John Hancock Life Insurance companies
Kemper Investors Life Insurance Company
Lincoln Benefit Life Insurance Company
Lincoln Life & Annuity Company of New York
Lincoln National Life Insurance Company
Massachusetts Mutual Life Insurance Group
MetLife Group


                                       44
<PAGE>

Minnesota Life Insurance Company
Mutual of America Life Insurance Company
National Life Insurance Company
National Integrity Life Insurance Company
Nationwide Group
New York Life Insurance and Annuity Corporation
Phoenix Life Insurance Company
Protective Life Insurance
Provident Mutual Life Insurance
Prudential Insurance Company of America
Sun Life Group
Symetra Life Insurance Company
Transamerica Life Insurance Company
Union Central Life Insurance Company
United of Omaha Life Insurance Company
United Investors Life Insurance Company
Western Southern Life Assurance Company

Any additions, modifications or deletions to the financial advisors identified
above that have occurred since the date hereof are not reflected.

The Advisor, the Distributor or their affiliates may enter into additional
revenue sharing arrangements or change or discontinue existing arrangements with
financial advisors at any time without notice.

The prospect of receiving, or the receipt of additional compensation or
promotional incentives described above by financial advisors may provide such
financial advisors and/or their salespersons with an incentive to favor sales of
shares of the DWS Funds or a particular DWS Fund over sales of shares of mutual
funds (or non-mutual fund investments) with respect to which the financial
advisor does not receive additional compensation or promotional incentives, or
receives lower levels of additional compensation or promotional incentives.
Similarly, financial advisors may receive different compensation or incentives
that may influence their recommendation of any particular share class of the
Fund or of other funds. These payment arrangements, however, will not change the
price that an investor pays for Fund shares or the amount that the Fund receives
to invest on behalf of an investor and will not increase Fund expenses. You may
wish to take such payment arrangements into account when considering and
evaluating any recommendations relating to Fund shares and you should discuss
this matter with your financial advisor and review your financial advisor's
disclosures.

Automatic Investment Plan. A shareholder may purchase shares of the Fund through
an automatic investment program. With the Direct Deposit Purchase Plan ("Direct
Deposit"), investments are made automatically (minimum $1,000 and maximum
$250,000 for initial investments and a minimum of $50 and maximum $250,000 for
subsequent investments) from the shareholder's account at a bank, savings and
loan or credit union into the shareholder's Fund account. Termination by a
shareholder will become effective within thirty days after the Shareholder
Service Agent has received the request. The Fund may immediately terminate a
shareholder's Plan in the event that any item is unpaid by the shareholder's
financial institution.

Minimum Subsequent Investment Policies. For current shareholders there is a $50
minimum investment requirement for subsequent investments in the fund. There is
no minimum subsequent investment requirement for investments on behalf of
participants in certain fee-based and wrap programs offered through financial
intermediaries approved by the Advisor.

Payroll Investment Plans. A shareholder may purchase shares through Payroll
Direct Deposit or Government Direct Deposit. Under these programs, all or a
portion of a shareholder's net pay or government check is invested each payment
period. A shareholder may terminate participation in these programs by giving
written notice to the shareholder's employer or government agency, as
appropriate. (A reasonable time to act is required.) The Fund is not responsible
for the efficiency of the employer or government agency making the payment or
any financial institutions transmitting payments.



                                       45
<PAGE>

Expedited Purchase Procedures for Existing Shareholders. Shareholders of other
DWS funds who have submitted an account application and have certified a tax
identification number, clients having a regular investment counsel account with
the Advisor or its affiliates and members of their immediate families, officers
and employees of the Advisor or of any affiliated organization and their
immediate families, members of FINRA, and banks may open an account by wire by
calling (800) 728-3337 for instructions. The investor must send a duly completed
and signed application to the Fund promptly. A subsequent purchase order may be
placed by established shareholders (except by DWS Scudder Individual Retirement
Account (IRA), DWS Scudder Horizon Plan, DWS Scudder Profit Sharing and Money
Purchase Pension Plans, DWS Scudder 401(k) and DWS Scudder 403(b) Plan holders),
members of FINRA, and banks.

It is our policy to offer purchase privileges to current or former directors or
trustees of the Deutsche or DWS mutual funds, employees, their spouses or life
partners and children or step-children age 21 or younger of Deutsche Bank or its
affiliates or a sub-advisor to any fund in the DWS family of funds or a
broker-dealer authorized to sell shares of the funds. Qualified individuals will
generally be allowed to purchase shares in the class with the lowest expense
ratio, usually the Institutional Class shares. If a fund does not offer
Institutional Class shares, these individuals will be allowed to buy Class A
shares at NAV. The fund also reserves the right to waive the minimum account
balance requirement for employee and director accounts. Fees generally charged
to IRA accounts will be charged to accounts of employees and directors.

Redemptions

Redemption Fee. The Fund will impose a redemption fee of 2% of the total
redemption amount (calculated at net asset value) on all Fund shares redeemed or
exchanged within 15 days of buying them (either by purchase or exchange). The
redemption fee is paid directly to the Fund, and is designed to encourage
long-term investment and to offset transaction and other costs associated with
short-term or excessive trading. For purposes of determining whether the
redemption fee applies, shares held the longest time will be treated as being
redeemed first and shares held the shortest time will be treated as being
redeemed last. The redemption fee is applicable to Fund shares purchased either
directly or through a financial intermediary, such as a broker-dealer.
Transactions through financial intermediaries typically are placed with the Fund
on an omnibus basis and include both purchase and sale transactions placed on
behalf of multiple investors. These purchase and sale transactions are generally
netted against one another and placed on an aggregate basis; consequently the
identities of the individuals on whose behalf the transactions are placed
generally are not known to the Fund. For this reason, the Fund has undertaken to
notify financial intermediaries of their obligation to assess the redemption fee
on customer accounts and to collect and remit the proceeds to the Fund. However,
due to operational requirements, the intermediaries' methods for tracking and
calculating the fee may be inadequate or differ in some respects from the Fund.

General. Policies and procedures affecting transactions in fund shares can be
changed at any time without notice, subject to applicable law. Transactions may
be contingent upon proper completion of application forms and other documents by
shareholders and their receipt by the Fund's agents. Transaction delays in
processing (and changing account features) due to circumstances within or beyond
the control of the Fund and its agents may occur. Shareholders (or their
financial service firms) are responsible for all losses and fees resulting from
bad checks, cancelled orders or the failure to consummate transactions effected
pursuant to instructions reasonably believed to be genuine.

In addition, the Fund reserves the right to suspend or postpone redemptions as
permitted pursuant to Section 22(e) of the Investment Company Act of 1940.
Generally, those circumstances are when 1) the New York Stock Exchange is closed
other than customary weekend or holiday closings; 2) trading on the New York
Stock Exchange is restricted; 3) an emergency exists which makes the disposal of
securities owned by a fund or the fair determination of the value of the fund's
net assets not reasonably practicable; or 4) the SEC, by order, permits the
suspension of the right of redemption. Redemption payments by wire may also be
delayed in the event of a non-routine closure of the Federal Reserve wire
payment system.

A request for repurchase (confirmed redemption) may be communicated by a
shareholder through a financial services firm to DWS-SDI, which firms must
promptly submit orders to be effective.



                                       46
<PAGE>

Redemption requests must be unconditional. Redemption requests (and a stock
power for certificated shares) must be duly endorsed by the account holder. As
specified in the prospectus, signatures may need to be guaranteed by a
commercial bank, trust company, savings and loan association, federal savings
bank, member firm of a national securities exchange or other financial
institution permitted by SEC rule. Additional documentation may be required,
particularly from institutional and fiduciary account holders, such as
corporations, custodians (e.g., under the Uniform Transfers to Minors Act),
executors, administrators, trustees or guardians.

Wires. Delivery of the proceeds of a wire redemption of $250,000 or more may be
delayed by the Fund for up to seven days if the Fund or the Shareholder Service
Agent deems it appropriate under then-current market conditions. The ability to
send wires is limited by the business hours and holidays of the firms involved.
The Fund is not responsible for the efficiency of the federal wire system or the
account holder's financial services firm or bank. The account holder is
responsible for any charges imposed by the account holder's firm or bank. To
change the designated account to receive wire redemption proceeds, send a
written request to the Fund Shareholder Service Agent with signatures guaranteed
as described above or contact the firm through which Fund shares were purchased.

Automatic Withdrawal Plan. An owner of $5,000 or more of a class of the Fund's
shares at the offering price may provide for the payment from the owner's
account of any requested dollar amount to be paid to the owner or a designated
payee monthly, quarterly, semiannually or annually. The $5,000 minimum account
size is not applicable to IRAs. The minimum periodic payment is $50. Shares are
redeemed so that the payee should receive payment approximately on the first of
the month. Investors using the Automatic Withdrawal Plan must reinvest Fund
distributions.

Non-retirement plan shareholders may establish an Automatic Withdrawal Plan to
receive monthly, quarterly or periodic redemptions from his or her account for
any designated amount of $50 or more. Shareholders may designate which day they
want the automatic withdrawal to be processed. The check amounts may be based on
the redemption of a fixed dollar amount, fixed share amount, percent of account
value or declining balance. The Automatic Withdrawal Plan provides for income
dividends and capital gains distributions, if any, to be reinvested in
additional shares. Shares are then liquidated as necessary to provide for
withdrawal payments. Since the withdrawals are in amounts selected by the
investor and have no relationship to yield or income, payments received cannot
be considered as yield or income on the investment and the resulting
liquidations may deplete or possibly extinguish the initial investment and any
reinvested dividends and capital gains distributions. Any such requests must be
received by the Fund's transfer agent ten days prior to the date of the first
automatic withdrawal. An Automatic Withdrawal Plan may be terminated at any time
by the shareholder, the Trust or its agent on written notice, and will be
terminated when all shares of the Fund under the Automatic Withdrawal Plan have
been liquidated or upon receipt by the Trust of notice of death of the
shareholder.

In-kind Redemptions. The Fund reserves the right to honor any request for
redemption or repurchase by making payment in whole or in part in securities.
These securities will be chosen by the Fund and valued as they are for purposes
of computing the Fund's net asset value. A shareholder may incur transaction
expenses in converting these securities to cash.

Exchanges

Shareholders may request a taxable exchange of their shares for shares of the
corresponding class of other DWS Funds, subject to the provisions below.

Shares of money market funds that were acquired by purchase (not including
shares acquired by dividend reinvestment) are subject to the applicable sales
charge on exchange. Certain series of DWS Target Fund are available on exchange
only during the offering period for such series as described in the applicable
prospectus. Tax Free Money Fund -- Investment Class, NY Tax-Free Money Fund --
Investment Class, Treasury Money Fund -- Investment Class, Money Market Fund --
Investment Class, Cash Management Fund Institutional, Cash Reserves Fund
Institutional, Treasury Money Fund -- Institutional Class, Cash Reserve Fund,
Inc. Prime Series, Tax-Exempt California Money Market Fund, Cash Account Trust
and Investors Cash Trust are available on exchange but only through a financial
services firm having a services agreement with DWS-SDI. All exchanges among
money funds must meet applicable investor eligibility and investment
requirements. Exchanges may only be made for funds that


                                       47
<PAGE>

are available for sale in the shareholder's state of residence. Currently,
Tax-Exempt California Money Market Fund is available for sale only in
California.

Shareholders must obtain prospectuses of the fund of funds they are exchanging
into from dealers, other firms or DWS-SDI. Exchanges are taxable transactions
for federal income tax purposes.

Automatic Exchange Plan. The owner of $1,000 or more of any class of shares of a
DWS Fund may authorize the automatic exchange of a specified amount ($50
minimum) of such shares for shares of the same class of another such DWS Fund.
Exchanges will be made automatically until the shareholder or the fund
terminates the privilege. Exchanges are subject to the terms and conditions
described above.

                                    DIVIDENDS

The Fund intends to follow the practice of distributing substantially all of its
investment company taxable income, which includes any excess of net realized
short-term capital gains over net realized long-term capital losses. The Fund
may follow the practice of distributing the entire excess of net realized
long-term capital gains over net realized short-term capital losses. However,
the Fund may retain all or part of such gain for reinvestment, after paying the
related federal taxes for which shareholders may then be able to claim a credit
against their federal income tax liability. If the Fund does not distribute the
amount of capital gain and/or ordinary income required to be distributed by an
excise tax provision of the Internal Revenue Code of 1986, as amended (the
"Code"), the Fund may be subject to that excise tax. In certain circumstances,
the Fund may determine that it is in the interest of shareholders to distribute
less than the required amount.

The Fund intends to pay distributions of substantially all of its income
annually. Any dividends or capital gains distributions declared in October,
November or December with a record date in such a month and paid during the
following January will be treated by shareholders for federal income tax
purposes as if received on December 31 of the calendar year declared.

Income and capital gain distributions, if any, of the Fund will be credited to
shareholder accounts in full and fractional shares of the same class of the Fund
at net asset value on the reinvestment date, except that, upon written request
to the Shareholder Service Agent, a shareholder may select one of the following
options:

1.       To receive income and short-term capital gain distributions in cash and
         long-term capital gain distributions in shares of the same class at net
         asset value; or

2.       To receive income and capital gain distributions in cash.

Dividends will be reinvested in shares of the same class of the Fund unless
shareholders indicate in writing that they wish to receive them in cash or in
shares of other DWS Funds with multiple classes of shares or DWS Funds as
provided in the prospectus. See "Combined Purchases" for a listing of such other
funds. To use this privilege of investing dividends of the Fund in shares of
another DWS Fund, shareholders must maintain a minimum account value of $1,000
in the Fund distributing the dividends. The Fund will reinvest dividend checks
(and future dividends) in shares of that same Fund and class if checks are
returned as undeliverable. Dividends and other distributions of the Fund in the
aggregate amount of $10 or less are automatically reinvested in shares of the
Fund unless the shareholder requests that such policy not be applied to the
shareholder's account.

If an investment is in the form of a retirement plan, all dividends and capital
gains distributions must be reinvested into the shareholder's account.

If a shareholder has elected to reinvest any dividends and/or other
distributions, such distributions will be made in shares of the Fund and
confirmations will be mailed to the shareholder. If a shareholder has chosen to
receive cash, a check will be sent. Distributions of investment company taxable
income and net realized capital gains are taxable, whether made in shares or
cash.

Each distribution is accompanied by a brief explanation of the form and
character of the distribution. The characterization of distributions on such
correspondence may differ from the characterization for federal tax


                                       48
<PAGE>

purposes. In January of each year, the Fund issues to each shareholder a
statement of the federal income tax status of all distributions in the prior
calendar year.

The Fund may at any time vary its foregoing dividend practices and, therefore,
reserves the right from time to time to either distribute or retain for
reinvestment such of its net investment income and its net short-term and
long-term capital gains as its Board determines appropriate under the then
current circumstances. In particular, and without limiting the foregoing, the
Fund may make additional distributions of net investment income or capital gain
net income in order to satisfy the minimum distribution requirements contained
in the Code.

                                      TAXES

The following is intended to be a general summary of certain federal income tax
consequences of investing in the Fund. It is not intended as a complete
discussion of all such consequences, nor does it purport to deal with all
categories of investors. Investors are therefore advised to consult with their
tax advisors before making an investment in the Fund. The summary is based on
the laws in effect on the date of this statement of additional information and
existing judicial and administrative interpretations thereof, all of which are
subject to change, possibly with retroactive effect.

The Fund has elected to be treated as a regulated investment company under
Subchapter M of the Code and has qualified as such since its inception. The Fund
intends to continue to so qualify in each taxable year as required under the
Code in order to avoid payment of federal income tax at the Fund level. In order
to qualify as a regulated investment company, the Fund must meet certain
requirements regarding the source of its income, the diversification of its
assets, and the distribution of its income:

(a)       derive at least 90% of its gross income for each taxable year from (i)
          dividends, interest, payments with respect to certain securities
          loans, and gains from the sale or other disposition of stock,
          securities or foreign currencies, or other income (including but not
          limited to gains from options, futures, or forward contracts) derived
          with respect to its business of investing in such stock, securities,
          or currencies and (ii) net income derived from interests in "qualified
          publicly traded partnerships" (i.e., partnerships that are traded on
          an established securities market or tradable on a secondary market,
          other than partnerships that derive 90% of their income from interest,
          dividends, capital gains and other traditional permitted mutual fund
          income);

(b)      The Fund must diversify its holdings so that, at the end of each
         quarter of its taxable year, (i) at least 50% of the market value of
         the Fund's assets is represented by cash and cash items, US government
         securities, securities of other regulated investment companies and
         other securities limited in respect of any one issuer of such other
         securities to a value not greater than 5% of the value of the Fund's
         total assets and to not more than 10% of the outstanding voting
         securities of such issuer, and (ii) not more than 25% of the value of
         its assets is invested in the securities (other than those of the US
         Government or other regulated investment companies) of any one issuer,
         of two or more issuers of which 20% or more of the voting securities
         are held by the Fund and which are engaged in the same, similar, or
         related trades or businesses or in the securities of one or more
         qualified publicly traded partnerships.

(c)      The Fund is required to distribute to its shareholders at least 90% of
         its taxable and tax-exempt net investment income (including the excess
         of net short-term capital gain over net long-term capital losses) and
         generally is not subject to federal income tax to the extent that it
         distributes annually such net investment income and net realized
         capital gains in the manner required under the Code.

Fund investments in partnerships, including in qualified publicly traded
partnerships, may result in the Fund's being subject to state, local or foreign
income, franchise or withholding tax liabilities.

If for any taxable year the Fund does not qualify for the special federal income
tax treatment afforded regulated investment companies, all of its taxable income
will be subject to federal income tax at regular corporate rates (without any
deduction for distributions to its shareholders), and all distributions from
earnings and profits, including any distributions of net tax-exempt income and
net long-term capital gains, would be taxable to shareholders as ordinary
income. Such distributions would be eligible (i) to be treated as qualified
dividend income


                                       49
<PAGE>

in the case of shareholders taxed as individuals and (ii) for the dividends
received deduction in the case of corporate shareholders. In addition, the Fund
could be required to recognize unrealized gains, pay substantial taxes and
interest and make substantial distributions before requalifying as a regulated
investment company that is accorded special tax treatment.

The Fund is subject to a 4% nondeductible excise tax on amounts required to be
but that are not distributed under a prescribed formula. The formula requires
payment to shareholders during a calendar year of distributions representing at
least 98% of the Fund's taxable ordinary income for the calendar year and at
least 98% of the excess of its capital gains over capital losses realized during
the one-year period ending October 31 (in most cases) of such year as well as
amounts that were neither distributed nor taxed to the Fund during the prior
calendar year. Although the Fund's distribution policies should enable it to
avoid excise tax liability, the Fund may retain (and be subject to income or
excise tax on) a portion of its capital gain or other income if it appears to be
in the interest of the Fund.

Taxation of Fund Distributions. Distributions from the Fund generally will be
taxable to shareholders as ordinary income to the extent derived from investment
income and net short-term capital gains. Distributions of net capital gains
(that is, the excess of net gains from the sale of capital assets held more than
one year over net losses from the sale of capital assets held for not more than
one year) properly designated as capital gain dividends will be taxable to
shareholders as long-term capital gain, regardless of how long a shareholder has
held the shares in the Fund.

Long-term capital gain rates applicable to individuals have been temporarily
reduced -- in general, to 15% with a lower rate applying to taxpayers in the 10%
and 15% rate brackets -- for taxable years beginning before January 1, 2011.

For taxable years beginning on or before December 31, 2010, "qualified dividend
income" received by an individual will be taxed at the rates applicable to
long-term capital gain. Qualified dividend income does not include interest from
fixed-income securities. In order for some portion of the dividends received by
the Fund shareholder to be qualified dividend income, the Fund must meet holding
period and other requirements with respect to some portion of the
dividend-paying stocks in its portfolio and the shareholder must meet holding
period and other requirements with respect to the Fund's shares. A dividend will
not be treated as qualified dividend income (at either the Fund or shareholder
level) (1) if the dividend is received with respect to any share of stock held
for fewer than 61 days during the 121-day period beginning on the date which is
60 days before the date on which such share becomes ex-dividend with respect to
such dividend (or, in the case of certain preferred stock, 91 days during the
181-day period beginning 90 days before such date), (2) to the extent that the
recipient is under an obligation (whether pursuant to a short sale or otherwise)
to make related payments with respect to positions in substantially similar or
related property, or (3) if the recipient elects to have the dividend income
treated as investment income for purposes of the limitation on deductibility of
investment interest. In order for a dividend paid by a foreign corporation to
constitute "qualified dividend income," the foreign corporation must (1) be
eligible for the benefits of a comprehensive income tax treaty with the United
States (or the stock on which the dividend is paid must be readily tradable on
an established securities market in the United States), and (2) not be treated
as a passive foreign investment company. Qualified dividend income does not
include interest from fixed-income securities. Dividends received by the Fund
from a REIT may be treated as qualified dividend income only to the extent the
dividends are attributable to qualified dividend income received by such REIT.

In general, distributions of investment income designated by a regulated
investment company as derived from qualified dividend income will be treated as
qualified dividend income by a shareholder taxed as an individual, provided the
shareholder meets the holding period and other requirements described above with
respect to the Fund's shares. If the aggregate qualified dividends received by
the Fund during any taxable year are 95% or more of its gross income (excluding
net long-term capital gain over net short-term capital loss), then 100% of the
Fund's dividends (other than properly designated capital gain dividends) will be
eligible to be treated as qualified dividend income. For this purpose, the only
gain included in the term "gross income" is the excess of net short-term capital
gain over net long-term capital loss.

Capital gains distributions may be reduced if Fund capital loss carryforwards
are available.

All distributions by the Fund result in a reduction in the net asset value of
the Fund's shares. Should a distribution reduce the net asset value below a
shareholder's cost basis, such distribution would nevertheless be taxable to the


                                       50
<PAGE>

shareholder as ordinary income or capital gain as described above, even though,
from an investment standpoint, it may constitute a partial return of capital. In
particular, investors should be careful to consider the tax implications of
buying shares just prior to a distribution. The price of shares purchased at
that time includes the amount of the forthcoming distribution. Those purchasing
just prior to a distribution will receive a partial return of capital upon the
distribution, which will nevertheless be taxable to them.

Under current law, the Fund serves to block unrelated business taxable income
("UBTI") from being realized by its tax-exempt shareholders. Notwithstanding the
foregoing, a tax-exempt shareholder could realize UBTI by virtue of its
investment in the Fund if shares in the Fund constitute debt-financed property
in the hands of the tax-exempt shareholder within the meaning of Code Section
514(b). Certain types of income received by the Fund from real estate investment
trusts ("REITs"), real estate mortgage investment conduits ("REMICs"), taxable
mortgage pools or other investments may cause the Fund to designate some or all
of its distributions as "excess inclusion income." To Fund shareholders such
excess inclusion income may (1) constitute taxable income, as UBTI for those
shareholders who would otherwise be tax-exempt such as individual retirement
accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable
entities; (2) not be offset against net operating losses for tax purposes; (3)
not be eligible for reduced US withholding for non-US shareholders even from tax
treaty countries; and (4) cause the Fund to be subject to tax if certain
"disqualified organizations" as defined by the Code are Fund shareholders.

Sale or Redemption of Shares. The sale, exchange or redemption of Fund shares
may give rise to a gain or loss. In general, any gain or loss realized upon a
taxable disposition of shares will be treated as long-term capital gain or loss
if the shares have been held for more than one year. Otherwise, the gain or loss
on the taxable disposition of Fund shares will be treated as short-term capital
gain or loss. However, any loss realized upon a taxable disposition of shares
held for six months or less will be treated as long-term, rather than
short-term, to the extent of any long-term capital gain distributions received
(or deemed received) by the shareholder with respect to the shares. All or a
portion of any loss realized upon a taxable disposition of Fund shares will be
disallowed if other substantially identical shares of the Fund are purchased
within 30 days before or after the disposition. In such a case, the basis of the
newly purchased shares will be adjusted to reflect the disallowed loss.

Dividends Received Deduction. It is not anticipated that dividends from domestic
corporations will comprise a substantial part of the Fund's gross income. If any
such dividends constitute a portion of the Fund's gross income, a portion of the
income distributions of the Fund may be eligible for the 70% deduction for
dividends received by corporations. Shareholders will be informed of the portion
of dividends which so qualify. The dividends-received deduction is reduced to
the extent the shares of the Fund with respect to which the dividends are
received are treated as debt-financed under federal income tax law and is
eliminated if either those shares or the shares of the Fund are deemed to have
been held by the Fund or the shareholder, as the case may be, for fewer than 46
days during the 91-day period beginning 45 days before the shares become
ex-dividend.

Foreign Taxation. Foreign withholding or other foreign taxes with respect to
income (possibly including, in some cases, capital gains) on certain foreign
securities may occur. These taxes may be reduced or eliminated under the terms
of an applicable US income tax treaty. The Fund may elect for US income tax
purposes to treat foreign taxes paid by it as paid by its shareholders if more
than 50% of the Fund's total assets at the close of its taxable year consists of
stock or securities of foreign corporations. The Fund may qualify for and make
this election in some, but not necessarily all, of its taxable years. If the
Fund were to make such an election, shareholders of the Fund would be required
to take into account an amount equal to their pro rata portions of such foreign
taxes in computing their taxable income and then treat an amount equal to those
foreign taxes as a US federal income tax deduction or as a foreign tax credit
against their US federal income taxes. No deduction for foreign taxes may be
claimed by a shareholder who does not itemize deductions. Certain limitations
will be imposed on the extent to which the credit (but not the deduction) for
foreign taxes may be claimed.

Passive Foreign Investment Companies. Equity investments by the Fund in certain
"passive foreign investment companies" ("PFICs") including certain types of
non-US real estate investment companies could potentially subject the Fund to a
US federal income tax (including interest charges) on distributions received
from the company or on proceeds received from the disposition of shares in the
company, which tax cannot be eliminated by making distributions to the Fund
shareholders. However, the Fund may elect to avoid the imposition of that tax.
For example, the Fund may elect to treat a PFIC as a "qualified electing fund"
(a "QEF election"), in which case the Fund will be required to include its share
of the company's income and net capital gains annually, regardless of


                                       51
<PAGE>

whether it receives any distribution from the company. The Fund also may make an
election to mark the gains (and to a limited extent losses) in such holdings "to
the market" as though it had sold and repurchased its holdings in those PFICs on
the last day of the Fund's taxable year. The election must be made separately
for each PFIC owned by the Fund and, once made, would be effective for all
subsequent taxable years, unless revoked with the consent of the IRS. Such gains
and losses are treated as ordinary income and loss. The QEF and mark-to-market
elections may accelerate the recognition of income (without the receipt of cash)
and increase the amount required to be distributed by the Fund to avoid
taxation. Making either of these elections therefore may require the Fund to
liquidate other investments (including when it is not advantageous to do so) to
meet its distribution requirement, which also may accelerate the recognition of
gain and affect the Fund's total return. Dividends paid by PFICs will not be
eligible to be treated as "qualified dividend income."

Other Federal Income Tax Considerations. The Fund's use of options, futures
contracts, forward contracts (to the extent permitted) and certain other
Strategic Transactions will be subject to special tax rules (including
mark-to-market, constructive sale, straddle, wash sale, short sale and other
rules), the effect of which may be to accelerate income, defer losses, cause
adjustments in the holding periods of portfolio securities, convert capital
gains into ordinary income and convert short-term capital losses into long-term
capital losses. These rules could therefore affect the amount, timing and
character of distributions to investors.

Transactions in foreign currencies, foreign investment currency-denominated debt
securities and certain foreign currency options, futures contracts, forward
contracts and similar instruments (to the extent permitted) may give rise to
ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned.

The Fund's investment in zero coupon bonds and other debt obligations having
original issue discount may cause the Fund to recognize taxable income in excess
of any cash received from the investment.

As a result of entering into swap contracts, the Fund may make or receive
periodic net payments. The Fund may also make or receive a payment when a swap
is terminated prior to maturity through an assignment of the swap or other
closing transaction. Periodic net payments will generally constitute ordinary
income or deductions, while termination of a swap will generally result in
capital gain or loss (which will be a long-term capital gain or loss if the Fund
has been a party to the swap for more than one year).

Shareholders of the Fund may be subject to state and local taxes on
distributions received from the Fund and on redemptions of the Fund's shares.

Special tax rules apply to investments through defined contribution plans and
other tax-qualified plans. Shareholders should consult their tax advisers to
determine the suitability of shares of the Fund as an investment through such
plans and the precise effect of an investment on their particular tax situation.

If a shareholder recognizes a loss with respect to the Fund's shares of $2
million or more for an individual shareholder or $10 million or more for a
corporate shareholder, the shareholder must file with the Internal Revenue
Service a disclosure statement on Form 8886. Direct shareholders of portfolio
securities are in many cases excepted from this reporting requirement, but under
current guidance, shareholders of a regulated investment company are not
excepted. The fact that a loss is reportable under these regulations does not
affect the legal determination of whether the taxpayer's treatment of the loss
is proper. Shareholders should consult their tax advisors to determine the
applicability of these regulations in light of their individual circumstances.

Backup Withholding. Under the backup withholding provisions of the Code,
redemption proceeds as well as distributions may be subject to federal income
tax withholding for certain shareholders, including those who fail to furnish
the Fund with their taxpayer identification numbers and certifications as to
their tax status.

Non-US Shareholders. In general, dividends (other than capital gain
distributions) paid by the Fund to a shareholder that is not a "US person"
within the meaning of the Code (such shareholder, a "foreign person") are
subject to withholding of US federal income tax at a rate of 30% (or lower
applicable treaty rate) even if they are funded by income or gains (such as
portfolio interest, short-term capital gains, or foreign-source dividend and


                                       52
<PAGE>

interest income) that, if paid to a foreign person directly, would not be
subject to withholding. However, before January 1, 2008, the Fund will not be
required to withhold any amounts (i) with respect to distributions (other than
distributions to a foreign person (w) that has not provided a satisfactory
statement that the beneficial owner is not a US person, (x) to the extent that
the dividend is attributable to certain interest on an obligation if the foreign
person is the issuer or is a 10% shareholder of the issuer, (y) that is within
certain foreign countries that have inadequate information exchange with the
United States, or (z) to the extent the dividend is attributable to interest
paid by a person that is a related person of the foreign person and the foreign
person is a controlled foreign corporation) from US-source interest income that
would not be subject to US federal income tax if earned directly by an
individual foreign person, to the extent such distributions are properly
designated by the Fund, and (ii) with respect to distributions (other than
distributions to an individual foreign person who is present in the United
States for a period or periods aggregating 183 days or more during the year of
the distribution) of net short-term capital gains in excess of net long-term
capital losses, to the extent such distributions are properly designated by the
Fund. Depending on the circumstances, the Fund may make such designations with
respect to all, some or none of its potentially eligible dividends and/or treat
such dividends, in whole or in part, as ineligible for this exemption from
withholding. In order to qualify for this exemption from withholding, a foreign
person will need to comply with applicable certification requirements relating
to its non-US status (including, in general, furnishing an IRS Form W-8BEN or
substitute Form). In the case of shares held through an intermediary, the
intermediary may withhold even if the Fund makes a designation with respect to a
payment. Foreign persons should contact their intermediaries with respect to the
application of these rules to their accounts.

If a beneficial holder who is a foreign person has a trade or business in the
United States, and the dividends are effectively connected with the conduct by
the beneficial holder of a trade or business in the United States, the dividend
will be subject to US federal net income taxation at regular income tax rates.

In general, United States federal withholding tax will not apply to any gain or
income realized by a non-US shareholder upon the sale or other disposition of
shares of the Fund.

Foreign shareholders of the Fund must treat a distribution attributable to the
Fund's sale of a real estate investment trust or other US real property holding
company as real property gain if 50% or more of the value of the Fund's assets
are invested in real estate investment trusts and other US real property holding
corporations and if the foreign shareholder has held more than 5% of a class of
stock at any time during the one-year period ending on the date of the
distribution. After December 31, 2007, a distribution from the Fund will be
treated as attributable to a US real property interest only if such distribution
is attributable to a distribution received by the Fund from a real estate
investment trust. Restrictions apply regarding wash sales and substitute payment
transactions.

Investors are advised to consult their own tax advisors with respect to their
own circumstances regarding the above-described general federal income taxation
rules and with respect to other federal state, local or foreign tax consequences
to them of an investment in shares of the Fund.

                                 NET ASSET VALUE

The net asset value of shares of the Fund is computed as of the close of regular
trading on the Exchange on each day the Exchange is open for trading (the "Value
Time"). The Exchange is scheduled to be closed on the following holidays: New
Year's Day, Dr. Martin Luther King, Jr. Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas, and on
the preceding Friday or subsequent Monday when one of these holidays falls on a
Saturday or Sunday, respectively. Net asset value per share is determined
separately for each class of shares by dividing the value of the total assets of
the Fund attributable to the shares of that class, less all liabilities
attributable to that class, by the total number of shares of that class
outstanding. The per share net asset value may be lower for certain classes of
the Fund because of higher expenses borne by these classes.

An equity security is valued at its most recent sale price on the security's
primary exchange or over-the-counter ("OTC") market as of the Value Time.
Lacking any sales, the security is valued at the calculated mean between the
most recent bid quotation and the most recent asked quotation (the "Calculated
Mean") on such exchange or OTC market as of the Value Time. If it is not
possible to determine the Calculated Mean, the security is valued at the most
recent bid quotation on such exchange or OTC market as of the Value Time. In the
case of certain foreign exchanges or OTC markets, the closing price reported by
the exchange or OTC market (which may sometimes be referred to as


                                       53
<PAGE>

the "official close" or the "official closing price" or other similar term) will
be considered the most recent sale price.

Debt securities are valued as follows. Money market instruments purchased with
an original or remaining maturity of 60 days or less, maturing at par, are
valued at amortized cost. Other money market instruments are valued based on
information obtained from an approved pricing agent or, if such information is
not readily available, by using matrix pricing techniques (formula driven
calculations based primarily on current market yields). Bank loans are valued at
prices supplied by an approved pricing agent (which are intended to reflect the
mean between the bid and asked prices), if available, and otherwise at the mean
of the most recent bid and asked quotations or evaluated prices, as applicable,
based on quotations or evaluated prices obtained from one or more
broker-dealers. Privately placed debt securities, other than Rule 144A debt
securities, initially are valued at cost and thereafter based on all relevant
factors, including type of security, size of holding and restrictions on
disposition. Municipal debt securities are valued at prices supplied by an
approved pricing agent (which are intended to reflect the mean between the bid
and asked prices), if available, and otherwise at the mean of the most recent
bid and asked quotations or evaluated price obtained from a broker-dealer. Other
debt securities are valued at prices supplied by an approved pricing agent, if
available, and otherwise at the most recent bid quotation or evaluated price, as
applicable, obtained from one or more broker-dealers. If it is not possible to
value a particular debt security pursuant to the above methods, the security is
valued on the basis of factors including (but not limited to) maturity, coupon,
creditworthiness, currency denomination, and the movement of the market in which
the security is normally traded.

An exchange-traded option contract on securities, currencies and other financial
instruments is valued at its most recent sale price on the relevant exchange.
Lacking any sales, the option contract is valued at the Calculated Mean. If it
is not possible to determine the Calculated Mean, the option contract is valued
at the most recent bid quotation in the case of a purchased option contract or
the most recent asked quotation in the case of a written option contract, in
each case as of the Value Time. An option contract on securities, currencies and
other financial instruments traded in the OTC market is valued on the Value Date
at the evaluated price provided by the broker-dealer with which it was traded.
Futures contracts (and options thereon) are valued at the most recent settlement
price, if available, on the security's primary exchange. With the exception of
stock index futures, contracts which trade on the Chicago Mercantile Exchange,
closing settlement times are prior to the close of trading on the New York Stock
Exchange. For stock index futures contracts which trade on the Chicago
Mercantile Exchange, closing settlement prices are normally available at
approximately 4:20 p.m. Eastern time. If no settlement price is available, the
last traded price on such exchange will be used.

If market quotations for a portfolio asset are not readily available or the
value of a portfolio asset as determined in accordance with Board approved
procedures does not represent the fair market value of the portfolio asset, the
value of the portfolio asset is taken to be an amount which, in the opinion of
the Fund's Pricing Committee (or, in some cases, the Board's Valuation
Committee), represents fair market value. The value of other portfolio holdings
owned by the Fund is determined in a manner which is intended to fairly reflect
the fair market value of the asset on the valuation date, based on valuation
procedures adopted by the Fund's Board and overseen primarily by the Fund's
Pricing Committee.

                             DIRECTORS AND OFFICERS

[TO BE UPDATED]

Securities Beneficially Owned

As of _____________, 2008, the Board Members and officers of the Corporation
owned, as a group, less than 1% of the outstanding shares of the Fund.

To the best of the Fund's knowledge, as of __________, 2008, no person owned of
record or beneficially 5% or more of any class of the Fund's outstanding
shares[, except as noted below.]



                                       54
<PAGE>

Agreement to Indemnify Independent Directors for Certain Expenses

In connection with litigation or regulatory action related to possible improper
market timing or other improper trading activity or possible improper marketing
and sales activity in the Fund, the Fund's investment advisor has agreed,
subject to applicable law and regulation, to indemnify and hold harmless the
Fund against any and all loss, damage, liability and expense, arising from
market timing or marketing and sales matters alleged in any enforcement actions
brought by governmental authorities involving or potentially affecting the Fund
or the investment advisor ("Enforcement Actions") or that are the basis for
private actions brought by shareholders of the Fund against the Fund, its
directors and officers, the Fund's investment advisor and/or certain other
parties ("Private Litigation"), or any proceedings or actions that may be
threatened or commenced in the future by any person (including governmental
authorities), arising from or similar to the matters alleged in the Enforcement
Actions or Private Litigation. In recognition of its undertaking to indemnify
the Fund and in light of the rebuttable presumption generally afforded to
independent directors/trustees of investment companies that they have not
engaged in disabling conduct, the Fund's investment advisor has also agreed,
subject to applicable law and regulation, to indemnify the Fund's Independent
Directors against certain liabilities the Independent Trustees may incur from
the matters alleged in any Enforcement Actions or Private Litigation or arising
from or similar to the matters alleged in the Enforcement Actions or Private
Litigation, and advance expenses that may be incurred by the Independent
Directors in connection with any Enforcement Actions or Private Litigation. The
applicable investment advisor is not, however, required to provide
indemnification and advancement of expenses: (1) with respect to any proceeding
or action with respect to which the Fund's Board determines that the Independent
Director ultimately would not be entitled to indemnification or (2) for any
liability of the Independent Director to the Fund or their shareholders to which
the Independent Director would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of the
Independent Director's duties as a director or trustee of the Fund as determined
in a final adjudication in such action or proceeding. The estimated amount of
any expenses that may be advanced to the Independent Directors or indemnity that
may be payable under the indemnity agreements is currently unknown. These
agreements by the Fund's investment advisor will survive the termination of the
investment management agreements between the applicable investment advisor and
the Fund.

                                FUND ORGANIZATION

Organizational Description

On February 6, 2006, the name of "Global/International Fund, Inc." was changed
to "DWS Global/International Fund, Inc." DWS Global/International Fund, Inc.,
referred to herein as the "Corporation," is a Maryland corporation of which DWS
RREEF Global Infrastructure Fund is a non-diversified series. The series
sometimes is referred to herein as the "Fund." The Corporation was originally
named "Scudder Global Fund, Inc." and changed its name to "Global/International
Fund, Inc." on May 29, 1998. The Corporation is an open-end management
investment company, which continuously offers and redeems its shares. The
Corporation is a company of the type commonly known as a mutual fund. DWS RREEF
Global Infrastructure Fund, organized in May 2008, offers four classes of
shares: Class A, Class C, Institutional Class and Class S.

The Corporation is a Maryland corporation organized under the laws of Maryland
and is governed by Amended and Restated Articles of Incorporation that were
approved by shareholders in the second quarter of 2006, as may be further
amended from time to time (the "Articles of Incorporation"). All shares issued
and outstanding are fully paid and non-assessable, transferable, have no
pre-emptive rights (except as may be determined by the Board of Directors) or
conversion rights (except as described below) and are redeemable as described in
the SAI and in a Fund's prospectus. Each share has equal rights with each other
share of the same class of a Fund as to voting, dividends, exchanges and
liquidation. Shareholders are entitled to one vote for each share held and
fractional votes for fractional shares held.

The Board of Directors may determine that shares of a Fund or a class of a Fund
shall be automatically converted into shares of another Fund of the Corporation
or of another class of the same or another Fund based on the relative net assets
of such Fund or class at the time of conversion. The Board of Directors may also
provide that the holders of shares of a Fund or a class of a Fund shall have the
right to convert or exchange their shares into shares of one or more other Funds
or classes on terms established by the Board of Directors.



                                       55
<PAGE>

Each share of the Corporation may be subject to such sales loads or charges,
expenses and fees, account size requirements, and other rights and provisions,
which may be the same or different from any other share of the Corporation or
any other share of any Fund or class of a Fund (including shares of the same
Fund or class as the share), as the Board of Directors of the Corporation may
establish or change from time to time and to the extent permitted under the 1940
Act.

The Corporation is not required to hold an annual meeting of shareholders in any
year in which the election of Directors is not required by the 1940 Act. If a
meeting of shareholders of the Corporation is required by the 1940 Act to take
action on the election of Directors, then an annual meeting shall be held to
elect Directors and take such other action as may come before the meeting.
Special meetings of the shareholders of the Corporation, or of the shareholders
of one or more Funds or classes thereof, for any purpose or purposes, may be
called at any time by the Board of Directors or by the President, and shall be
called by the President or Secretary at the request in writing of shareholders
entitled to cast a majority of the votes entitled to be cast at the meeting.

Except as provided in the 1940 Act, the presence in person or by proxy of the
holders of one-third of the shares entitled to vote at a meeting shall
constitute a quorum for the transaction of business at meetings of shareholders
of the Corporation or of a Fund or class.

On any matter submitted to a vote of shareholders, all shares of the Corporation
entitled to vote shall be voted in the aggregate as a single class without
regard to series or classes of shares, provided, however, that (a) when
applicable law requires that one or more series or classes vote separately, such
series or classes shall vote separately and, subject to (b) below, all other
series or classes shall vote in the aggregate; and (b) when the Board of
Directors determines that a matter does not affect the interests of a particular
series or class, such series or class shall not be entitled to any vote and only
the shares of the affected series or classes shall be entitled to vote.

Notwithstanding any provision of Maryland corporate law requiring authorization
of any action by a greater proportion than a majority of the total number of
shares entitled to vote on a matter, such action shall be effective if
authorized by the majority vote of the outstanding shares entitled to vote.

Subject to the requirements of applicable law and any procedures adopted by the
Board of Directors from time to time, the holders of shares of the Corporation
or any one or more series or classes thereof may take action or consent to any
action by delivering a consent, in writing or by electronic transmission, of the
holders entitled to cast not less than the minimum number of votes that would be
necessary to authorize or take the action at a formal meeting.

The Articles of Incorporation provide that the Board of Directors may, in its
discretion, establish minimum investment amounts for shareholder accounts,
impose fees on accounts that do not exceed a minimum investment amount and
involuntarily redeem shares in any such account in payment of such fees. The
Board of Directors, in its sole discretion, also may cause the Corporation to
redeem all of the shares of the Corporation or one or more series or classes
held by any shareholder for any reason, to the extent permissible by the 1940
Act, including (a) if the shareholder owns shares having an aggregate net asset
value of less than a specified minimum amount, (b) if the shareholder's
ownership of shares would disqualify a series from being a regulated investment
company, (c) upon a shareholder's failure to provide sufficient identification
to permit the Corporation to verify the shareholder's identity, (d) upon a
shareholder's failure to pay for shares or meet or maintain the qualifications
for ownership of a particular series or class, (e) if the Board of Directors
determines (or pursuant to policies established by the Board of Directors it is
determined) that share ownership by a shareholder is not in the best interests
of the remaining shareholders, (f) when the Corporation is requested or
compelled to do so by governmental authority or applicable law, or (g) upon a
shareholder's failure to comply with a request for information with respect to
the direct or indirect ownership of shares of the Corporation. By redeeming
shares the Corporation may terminate a Fund or any class without shareholder
approval, and the Corporation may suspend the right of shareholders to require
the Corporation to redeem shares to the extent permissible under the 1940 Act.
Payment for shares redeemed shall be made in cash or other property, or any
combination thereof; provided, however, that the composition of any such payment
(e.g., cash, securities and/or other assets) to any shareholder shall be
determined by the Corporation in its sole discretion, and may be different among
shareholders (including differences among shareholders in the same fund or
class).

Except as otherwise permitted by the Articles of Incorporation of the
Corporation, upon liquidation or termination of a Fund or class, shareholders of
such Fund or class of a Fund shall be entitled to receive, pro rata in
proportion to the


                                       56
<PAGE>

number of shares of such Fund or class held by each of them, a share of the net
assets of such Fund or class, and the holders of shares of any other particular
Fund or class shall not be entitled to any such distribution, provided, however,
that the composition of any such payment (e.g., cash, securities and/or other
assets) to any shareholder shall be determined by the Corporation in its sole
discretion, and may be different among shareholders (including differences among
shareholders in the same Fund or class).

                             PROXY VOTING GUIDELINES

The Fund has delegated proxy voting responsibilities to the Advisor, subject to
the Board's general oversight. The Fund has delegated proxy voting to the
Advisor with the direction that proxies should be voted consistent with the
Fund's best economic interests. The Advisor has adopted its own Proxy Voting
Policies and Procedures ("Policies"), and Proxy Voting Guidelines ("Guidelines")
for this purpose. The Policies address, among other things, conflicts of
interest that may arise between the interests of the Fund, and the interests of
the Advisor and its affiliates, including the Fund's principal underwriter. The
Guidelines set forth the Advisor's general position on various proposals, such
as:

o        Shareholder Rights -- The Advisor generally votes against proposals
         that restrict shareholder rights.

o        Corporate Governance -- The Advisor generally votes for confidential
         and cumulative voting and against supermajority voting requirements for
         charter and bylaw amendments. The Advisor generally votes for proposals
         to restrict a chief executive officer from serving on more than three
         outside boards of directors. The Advisor generally votes against
         proposals that require a company to appoint a Chairman who is an
         independent director.

o        Anti-Takeover Matters -- The Advisor generally votes for proposals that
         require shareholder ratification of poison pills or that request boards
         to redeem poison pills, and votes against the adoption of poison pills
         if they are submitted for shareholder ratification. The Advisor
         generally votes for fair price proposals.

o        Compensation Matters -- The Advisor generally votes for executive cash
         compensation proposals, unless they are unreasonably excessive. The
         Advisor generally votes against stock option plans that do not meet the
         Advisor's criteria.

o        Routine Matters -- The Advisor generally votes for the ratification of
         auditors, procedural matters related to the annual meeting and changes
         in company name, and against bundled proposals and adjournment.

The general provisions described above do not apply to investment companies. The
Advisor generally votes proxies solicited by investment companies in accordance
with the recommendations of an independent third party, except for proxies
solicited by or with respect to investment companies for which the Advisor or an
affiliate serves as the Advisor or principal underwriter ("affiliated investment
companies"). The Advisor votes affiliated investment company proxies in the same
proportion as the vote of the investment company's other shareholders (sometimes
called "mirror" or "echo" voting). Master fund proxies solicited from feeder
funds are voted in accordance with applicable requirements of the Investment
Company Act of 1940.

Although the Guidelines set forth the Advisor's general voting positions on
various proposals, the Advisor may, consistent with the Funds' best interests,
determine under some circumstances to vote contrary to those positions.

The Guidelines on a particular issue may or may not reflect the view of
individual members of the Board or of a majority of the Board. In addition, the
Guidelines may reflect a voting position that differs from the actual practices
of the public companies within the Deutsche Bank organization or of the
investment companies for which the Advisor or an affiliate serves as investment
advisor or sponsor.

The Advisor may consider the views of a portfolio company's management in
deciding how to vote a proxy or in establishing general voting positions for the
Guidelines, but management's views are not determinative.



                                       57
<PAGE>

As mentioned above, the Policies describe the way in which the Advisor resolves
conflicts of interest. To resolve conflicts, the advisor, under normal
circumstances, votes proxies in accordance with its Guidelines.

If the Advisor departs from the Guidelines with respect to a particular proxy or
if the Guidelines do not specifically address a certain proxy proposal, a proxy
voting committee established by the advisor will vote the proxy. Before voting
any such proxy, however, the Advisor's conflicts review committee will conduct
an investigation to determine whether any potential conflicts of interest exist
in connection with the particular proxy proposal. If the conflicts review
committee determines that the Advisor has a material conflict of interest, or
certain individuals on the proxy voting committee should be recused from
participating in a particular proxy vote, it will inform the proxy voting
committee. If notified that the Advisor has a material conflict, or fewer than
three voting members are eligible to participate in the proxy vote, typically
the Advisor will engage an independent third party to vote the proxy or follow
the proxy voting recommendations of an independent third party.

Under certain circumstances, the Advisor may not be able to vote proxies or the
Advisor may find that the expected economic costs from voting outweigh the
benefits associated with voting. For example, the Advisor may not vote proxies
on certain foreign securities due to local restrictions or customs. The Advisor
generally does not vote proxies on securities subject to share blocking
restrictions.

You may obtain information about how the Fund voted proxies related to its
portfolio securities during the 12-month period ended June 30 by visiting the
SEC's Web site at www.sec.gov or by visiting our Web site at: dws-scudder.com
(click on "proxy voting" at the bottom of the page).

                              FINANCIAL STATEMENTS

The audited financial statements for the Fund for the year ended ______________
will be included in, and will be incorporated by reference into, this SAI in
reliance upon the report of ________________, the Fund's independent registered
public accounting firm, as experts in accounting and auditing.

A copy of the Fund's Annual Report may be obtained without charge by contacting
Shareholder Services at 1-800-621-1048.

                             ADDITIONAL INFORMATION

The CUSIP number for the class of DWS RREEF Global Infrastructure Fund offered
herein is:

Class S:

DWS RREEF Global Infrastructure Fund has a fiscal year ending [December 31.]

Reference is hereby made to the Registration Statement which the Fund has filed
with the SEC under the Securities Act of 1933 for further information with
respect to the Fund and the securities offered hereby. This Registration
Statement and its amendments are available for inspection by the public at the
SEC in Washington, D.C.



                                       58
<PAGE>


                                    APPENDIX

Standard & Poor's Corporation Bond Ratings

AAA. Debt rated AAA had the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.

AA. Debt rated AA has a very strong capacity to pay interest and repay principal
and differs from the higher rated issues only in small degree.

A. Debt rated A has a strong capacity to pay interest and repay principal
although it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher rated categories.

BBB. Debt rated BBB is regarded as having an adequate capacity to pay interest
and repay principal. Whereas it normally exhibits adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category than in higher rated categories.

BB, B, CCC, CC and C. Debt rated BB, B, CCC, CC and C is regarded, on balance,
as predominantly speculative with respect to capacity to pay interest and repay
principal in accordance with the terms of the obligation. BB indicates the
lowest degree of speculation and C the highest degree of speculation. While such
debt will likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major risk exposures to adverse conditions.

CI. The rating CI is reserved for income bonds on which no interest is being
paid.

D. Debt rated D is in default, and payment of interest and/or repayment of
principal is in arrears.

Moody's Investors Service, Inc. Bond Ratings

AAA. Bonds which are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as
"gilt-edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Aa. Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high-grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present which make
the long term risks appear somewhat larger than in

Aaa securities.

A. Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.

Baa. Bonds which are rated Baa are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Ba. Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well


                                       59
<PAGE>

safeguarded during both good and bad times over the future. Uncertainty of
position characterizes bonds in this class.

B. Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.

Caa. Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca. Bonds which are rated Ca represent obligations which are speculative in a
high degree. Such issues are often in default or have other marked shortcomings.

C. Bonds which are rated C are the lowest rated class of bonds and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.

Fitch Long-Term Debt Ratings

AAA. Highest credit quality. "AAA" ratings denote the lowest expectation of
credit risk. They are assigned only in case of exceptionally strong capacity for
timely payment of financial commitments. This capacity is highly unlikely to be
adversely affected by foreseeable events.

AA. Very high credit quality. "AA"` ratings denote a very low expectation of
credit risk. They indicate very strong capacity for timely payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable
events.

A. High credit quality. "A" ratings denote a low expectation of credit risk. The
capacity for timely payment of financial commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to changes in circumstances or in
economic conditions than is the case for higher ratings.

BBB. Good credit quality. "BBB" ratings indicate that there is currently a low
expectation of credit risk. The capacity for timely payment of financial
commitments is considered adequate, but adverse changes in circumstances and in
economic conditions are more likely to impair this capacity. This is the lowest
investment-grade category.

BB. Speculative. "BB" ratings indicate that there is a possibility of credit
risk developing, particularly as the result of adverse economic change over
time; however, business or financial alternatives may be available to allow
financial commitments to be met. Securities rated in this category are not
investment grade.

B. Highly speculative. "B" ratings indicate that significant credit risk is
present, but a limited margin of safety remains. Financial commitments are
currently being met; however, capacity for continued payment is contingent upon
a sustained, favorable business and economic environment.

CCC, CC, C. High default risk. Default is a real possibility. Capacity for
meeting financial commitments is solely reliant upon sustained, favorable
business or economic developments. A "CC" rating indicates that default of some
kind appears probable. "C" ratings signal imminent default.

DDD, DD, D. Default. The ratings of obligations in this category are based on
their prospects for achieving partial or full recovery in a reorganization or
liquidation of the obligor. While expected recovery values are highly
speculative and cannot be estimated with any precision, the following serve as
general guidelines. "DDD" obligations have the highest potential for recovery,
around 90%-100% of outstanding amounts and accrued interest.

"DD" indicates potential recoveries in the range of 50%-90%, and "D" the lowest
recovery potential, i.e., below 50%. Entities rated in this category have
defaulted on some or all of their obligations. Entities rated "DDD" have the
highest prospect for resumption of performance or continued operation with or
without a formal reorganization process. Entities rated "DD" and "D" are
generally undergoing a formal reorganization or liquidation process; those


                                       60
<PAGE>

rated "DD" are likely to satisfy a higher portion of their outstanding
obligations, while entities rated "D" have a poor prospect for repaying all
obligations.

Fitch Short-Term Debt Ratings

F1. Highest credit quality. Indicates the Best capacity for timely payment of
financial commitments; may have an added "+" to denote any exceptionally strong
credit feature.

F2. Good credit quality. A satisfactory capacity for timely payment of financial
commitments, but the margin of safety is not as great as in the case of the
higher ratings.

F3. Fair credit quality. The capacity for timely payment of financial
commitments is adequate; however, near-term adverse changes could result in a
reduction to non-investment grade.

B. Speculative. Minimal capacity for timely payment of financial commitments,
plus vulnerability to near-term adverse changes in financial and economic
conditions.

C. High default risk. Default is a real possibility. Capacity for meeting
financial commitments is solely reliant upon a sustained, favorable business and
economic environment.

D. Default. Denotes actual or imminent payment default.

Commercial Paper Ratings

Commercial paper rated by Standard & Poor's Ratings Services ("S&P") has the
following characteristics: Liquidity ratios are adequate to meet cash
requirements. Long-term senior debt is rated "A" or better. The issuer has
access to at least two additional channels of borrowing. Basic earnings and cash
flow have an upward trend with allowance made for unusual circumstances.
Typically, the issuer's industry is well established and the issuer has a strong
position within the industry. The reliability and quality of management are
unquestioned. Relative strength or weakness of the above factors determine
whether the issuer's commercial paper is rated A-1 or A-2.

The ratings Prime-1 and Prime-2 are the two highest commercial paper ratings
assigned by Moody's Investors Service, Inc. ("Moody's"). Among the factors
considered by it in assigning ratings are the following: (1) evaluation of the
management of the issuer; (2) economic evaluation of the issuer's industry or
industries and an appraisal of speculative-type risks which may be inherent in
certain areas; (3) evaluation of the issuer's products in relation to
competition and customer acceptance; (4) liquidity; (5) amount and quality of
long-term debt; (6) trend of earnings over a period of ten years; (7) financial
strength of a parent company and the relationships which exist with the issuer;
and (8) recognition by the management of obligations which may be present or may
arise as a result of public interest questions and preparations to meet such
obligations. Relative strength or weakness of the above factors determines
whether the issuer's commercial paper is rated Prime-1 or 2.

Municipal Notes

Moody's: The highest ratings for state and municipal short-term obligations are
"MIG 1," "MIG 2," and "MIG 3" (or "VMIG 1," "VMIG 2" and "VMIG 3" in the case of
an issue having a variable rate demand feature). Notes rated "MIG 1" or "VMIG 1"
are judged to be of the "best quality". Notes rated "MIG 2" or "VMIG 2" are of
"high quality," with margins or protection "ample although not as large as in
the preceding group". Notes rated "MIG 3" or "VMIG 3" are of "favorable
quality," with all security elements accounted for but lacking the strength of
the preceding grades.

S&P: The "SP-1" rating reflects a "very strong or strong capacity to pay
principal and interest". Notes issued with "overwhelming safety characteristics"
will be rated "SP-1+". The "SP-2" rating reflects a "satisfactory capacity" to
pay principal and interest.

Fitch: The highest ratings for state and municipal short-term obligations are
"F-1+," "F-1," and "F-2."


                                       61

<PAGE>



                       DWS GLOBAL/INTERNATIONAL FUND, INC.
                       -----------------------------------

                                     PART C

                                OTHER INFORMATION

<TABLE>
<CAPTION>
Item 23.             Exhibits
--------             --------
                     <S>      <C>                <C>
                     (a)                Registrant's Articles of Amendment and Restatement dated June 23, 2006, is
                                        incorporated by reference to Post-Effective Amendment No. 70 to the
                                        Registration Statement.

                     (b)      (1)       Amended and Restated By-Laws, as amended through June 27, 2006, is
                                        incorporated by reference to Post-Effective Amendment No. 70 to the
                                        Registration Statement.

                     (c)                Specimen Share Certificate representing shares of capital stock of $.01
                                        par value of Scudder Global Fund is incorporated by reference to
                                        Post-Effective Amendment No. 6 to the Registration Statement.

                     (d)      (1)       Amended and Restated Investment Management Agreement between the
                                        Registrant, on behalf of DWS Emerging Markets Fixed Income Fund, DWS
                                        Global Bond Fund, DWS Global Thematic Fund and DWS Global Opportunities
                                        Fund, dated June 1, 2006, and for DWS Global Bond Fund and DWS Global
                                        Opportunities Fund, as further amended dated October 1, 2007, is
                                        incorporated by reference to Post-Effective Amendment No. 73 to the
                                        Registration Statement.

                              (2)       Sub-Advisory Agreement between Deutsche Investment Management Americas
                                        Inc. and Aberdeen Asset Management Inc., on behalf of Scudder Emerging
                                        Markets Income Fund and Scudder Global Bond Fund, dated December 2, 2005,
                                        is incorporated by reference to Post-Effective Amendment No. 69 to the
                                        Registration Statement.

                     (e)      (1)       Underwriting and Distribution Services Agreement between the Registrant
                                        and Scudder Distributors, Inc., dated April 5, 2002, is incorporated by
                                        reference to Post-Effective Amendment No. 53 to the Registration Statement.

                              (2)       Underwriting Agreement between the Registrant and Scudder Distributors,
                                        Inc., dated September 30, 2002, is incorporated by reference to
                                        Post-Effective Amendment No. 53 to the Registration Statement.

                     (f)      (1)       Form of Retirement Agreement between the Registrant and each of Martin J.
                                        Gruber, Graham E. Jones and Carl W. Vogt dated November 14, 2007 is filed
                                        herein.

                              (2)       Indemnification and Reimbursement Agreement between the Registrant and
                                        DIMA dated November 14, 2007 is incorporated by reference to
                                        Post-Effective Amendment No. 73 to the Registration Statement.

                     (g)      (1)       Master Custodian Agreement, dated February 1, 2007, between the Registrant
                                        and Brown Brothers Harriman & Co., is incorporated by reference to
                                        Post-Effective Amendment No. 73 to the Registration Statement.


                                       2
<PAGE>

                     (h)      (1)       Agency Agreement between the Registrant and DWS Scudder Investments
                                        Service Company, dated April 1, 2007, is incorporated by reference to
                                        Post-Effective Amendment No. 73 to the Registration Statement.

                              (2)       Letter of Indemnity to the Scudder Funds dated October 13, 2004, is
                                        incorporated by reference to Post-Effective Amendment No. 67 to the
                                        Registration Statement.

                              (3)       Letter of Indemnity to the Independent Directors dated October 13, 2004 is
                                        incorporated by reference to Post-Effective Amendment No. 67 to the
                                        Registration Statement.

                              (4)       Amended Administrative Services Agreement between DWS Global/International
                                        Fund, Inc. and Deutsche Investment Management Americas Inc., dated as of
                                        June 1, 2006 and revised as of October 1, 2007, is incorporated by
                                        reference to Post-Effective Amendment No. 74 to the Registration Statement.

                              (5)       Form of Expense Limitation Agreement is filed herein.

                              (6)       Form of Mutual Fund Rule 22c-2 Information Sharing Agreement between DWS
                                        Scudder Distributors Inc. and certain financial intermediaries is filed
                                        herein.

                     (i)                Opinion and Consent of Legal Counsel is incorporated by reference to
                                        Post-Effective Amendment No. 60 to the Registration Statement.

                              (1)       Opinion and Consent of Legal Counsel in regards to DWS RREEF Global
                                        Infrastructure Fund (to be filed by amendment).

                     (j)                Inapplicable.

                     (k)                Inapplicable.

                     (l)                Inapplicable.

                     (m)      (1)       Amended and Restated Rule 12b-1 Plans for DWS Global Discovery Fund, dated
                                        December 29, 2000, are incorporated by reference to Post-Effective
                                        Amendment No. 49 to the Registration Statement.

                              (2)       Rule 12b-1 Plans for Scudder Emerging Markets Income Fund Classes A, B and
                                        C shares, each dated December 29, 2000, are incorporated by reference to
                                        Post-Effective Amendment No. 49 to the Registration Statement.

                              (3)       Rule 12b-1 Plans for Scudder Global Bond Fund Classes A, B and C shares,
                                        each dated December 29, 2000, are incorporated by reference to
                                        Post-Effective Amendment No. 49 to the Registration Statement.

                              (4)       Rule 12b-1 Plan for Scudder Global Fund Class R shares, dated October 1,
                                        2003, is incorporated by reference to Post-Effective Amendment No. 59 to
                                        the Registration Statement.

                     (n)      (1)       Amended and Restated Multi-Distribution Plan with respect to the
                                        Registrant pursuant to Rule 18f-3, dated October 1, 2003, is incorporated
                                        by reference to Post-Effective Amendment No. 59 to the Registration
                                        Statement.


                                       3
<PAGE>

                     (p)      (1)       Code of Ethics for Aberdeen Group, effective February 1, 2006, is
                                        incorporated by reference to Post-Effective Amendment No. 73 to the
                                        Registration Statement.

                              (2)       Consolidated Fund Code of Ethics (All Funds) dated, March 14, 2006, is
                                        incorporated by reference to Post-Effective Amendment No. 70 to the
                                        Registration Statement.

                              (3)       Deutsche Asset Management - U.S. Code of Ethics, dated January 1, 2008, is
                                        incorporated by reference to Post-Effective Amendment No. 74 to the
                                        Registration Statement.

                     (q)                Power of Attorney, is incorporated by reference to Post-Effective
                                        Amendment No. 70 to the Registration Statement
</TABLE>

Item 24.          Persons Controlled by or under Common Control with Registrant.
--------          --------------------------------------------------------------

                  None

Item 25.          Indemnification.
--------          ----------------

         Sections 4.1, 4.2 and 4.3 of Article Fourth of Registrant's Articles of
         Amendment and Restatement, included as Exhibit (a)(7) to this
         Registration Statement and filed herein by reference, provide as
         follows:

                           Section 4.1. Limitation of Liability. To the fullest
                  extent permitted by the 1940 Act and the Maryland General
                  Corporation Law, no director or former director and no officer
                  or former officer of the Corporation shall be personally
                  liable to the Corporation or its Shareholders for money
                  damages. No amendment to the Charter or repeal of any of its
                  provisions shall limit or eliminate the benefits provided by
                  this Section 4.1 to directors or former directors or officers
                  or former officers with respect to any act or omission that
                  occurred prior to such amendment or repeal.

                           Section 4.2.  Indemnification.
                                         ---------------

                           (a) Any word or words used in this Section 4.2 that
                  are defined in Section 2-418 of the Maryland General
                  Corporation Law (the "Indemnification Section") shall have the
                  same meaning as defined in the Indemnification Section.

                           (b) The Corporation shall indemnify and advance
                  expenses to a director or officer (which includes, with
                  respect to any such person, any person who is or was an
                  officer of the Corporation and any person who, while an
                  officer of the Corporation, is or was serving at the request
                  of the Corporation as a director, officer, partner, trustee,
                  employee, or agent of another foreign or domestic corporation,
                  partnership, joint venture, trust, other enterprise, or
                  employee benefit plan) of the Corporation in connection with a
                  proceeding to the fullest extent permitted by and in
                  accordance with the Indemnification Section and the 1940 Act.
                  The foregoing rights of indemnification and advancement of
                  expenses shall not be exclusive of any other rights to which
                  those seeking indemnification or advancement of expenses may
                  be entitled.

                           (c) No amendment to this Charter or repeal of any of
                  its provisions shall limit or eliminate the protection
                  afforded by this Section 4.2 to a director or officer (as that
                  term is described in subsection (b) above) with respect to any
                  act or omission that occurred prior to such amendment or
                  repeal.

                           Section 4.3. Reliance on Experts. Subject to any
                  requirements of the 1940 Act and the Maryland General
                  Corporation Law, the appointment, designation or
                  identification of a director as the chairperson of the Board
                  of Directors, as a member or chairperson of a committee of the
                  Board of Directors, an expert on any topic or in any area
                  (including an audit committee financial expert), or the lead
                  independent director, or any other special appointment,
                  designation or identification of


                                       4
<PAGE>

                  a director, shall not impose on that person any standard of
                  care or liability that is greater than that imposed on that
                  person as a director in the absence of the appointment,
                  designation or identification, and no director who has special
                  skills or expertise, or is appointed, designated or identified
                  as aforesaid, shall be held to a higher standard of care by
                  virtue thereof. In addition, and subject to any contrary
                  requirements of the 1940 Act and the Maryland General
                  Corporation Law, no appointment, designation or identification
                  of a director as aforesaid shall affect in any way that
                  director's rights or entitlement to indemnification.

                  Sections 11.1, 11.2, and 11.3 of Article 11 of Registrant's
                  By-Laws, included as Exhibit (b)(5) to this Registration
                  Statement and filed herein by reference, provide as follows:

                           11.1 Indemnification of Directors and Officers. The
                  Corporation shall indemnify and advance expenses to its
                  current and former Directors and officers to the extent
                  provided by the Charter.

                           11.2 Indemnification of Employees and Agents. With
                  respect to employees and agents who are not officers or
                  Directors of the Corporation, the Corporation may, as
                  determined by the Board of Directors, indemnify and advance
                  expenses to such persons to the extent permissible under the
                  Maryland General Corporation Law, the Securities Act of 1933,
                  as amended, and the 1940 Act, as such statutes are now or
                  hereafter in force.

                           11.3 Other Rights. The indemnification and
                  advancement of expenses provided by this Article 11 or
                  provided by the Charter shall not be deemed exclusive of any
                  other right, in respect of indemnification, advancement of
                  expenses or otherwise, to which those seeking such
                  indemnification or advancement of expenses may be entitled
                  under any insurance, contract or other agreement, vote of
                  shareholders or Directors or otherwise. Neither the amendment
                  nor repeal of this Article, nor the adoption or amendment of
                  any other provision of the Bylaws or Charter inconsistent with
                  this Article, shall apply to or affect in any respect the
                  applicability of the provisions of this Article with respect
                  to any act or failure to act which occurred prior to such
                  amendment, repeal or adoption.

                  Insofar as indemnification for liability arising under the
                  1933 Act may be permitted to directors, officers and
                  controlling persons of the Registrant pursuant to the
                  foregoing provisions, or otherwise, the Registrant has been
                  advised that in the opinion of the Securities and Exchange
                  Commission such indemnification is against public policy as
                  expressed in the 1940 Act and is, therefore, unenforceable. In
                  the event of a claim for indemnification against such
                  liabilities (other than the payment by the Registrant of
                  expenses incurred or paid by a director, officer or
                  controlling person in connection with the securities being
                  registered) the Registrant will, unless in the opinion of its
                  counsel the matter has been settled by controlling precedent,
                  submit to a court of appropriate jurisdiction the question
                  whether such indemnification by it is against public policy as
                  expressed in the 1940 Act and will be governed by the final
                  adjudication of such issue. In the absence of a determination
                  by a court of competent jurisdiction, the determinations that
                  indemnification against such liabilities is proper, and
                  advances can be made, are made by a majority of a quorum of
                  the disinterested, non-party directors of the Fund, or an
                  independent legal counsel in a written opinion, based on
                  review of readily available facts.

                  Deutsche Investment Management Americas, Inc. (hereafter,
                  "DIMA"), the investment advisor, have agreed, subject to
                  applicable law and regulation, to indemnify and hold harmless
                  the Registrant against any loss, damage, liability and
                  expense, including, without limitation, the advancement and
                  payment, as incurred, of reasonable fees and expenses of
                  counsel (including counsel to the Registrant and counsel to
                  the Independent Directors) and consultants, whether retained
                  by the Registrant or the Independent Directors, and other
                  customary costs and expenses incurred by the Registrant in
                  connection with any litigation or regulatory action related to
                  possible improper market timing or other improper trading
                  activity or possible improper marketing and sales activity in
                  the Registrant ("Private Litigation and Enforcement Actions").
                  In the event that this indemnification is unavailable to the
                  Registrant for any reason, then DIMA has agreed to contribute
                  to the amount paid or payable by the Registrant as a result of
                  any loss, damage, liability or expense in such proportion as
                  is appropriate to reflect the relative fault of DIMA and the
                  Registrant with respect to the matters which resulted in such
                  loss, damage, liability or expense, as


                                       5
<PAGE>

                  well as any other relevant equitable considerations; provided,
                  that if no final determination is made in such action or
                  proceeding as to the relative fault of DIMA and the
                  Registrant, then DIMA shall pay the entire amount of such
                  loss, damage, liability or expense.

                  In recognition of its undertaking to indemnify the Registrant,
                  and in light of the rebuttable presumption generally afforded
                  to non-interested board members of an investment company that
                  they have not engaged in disabling conduct, DIMA has also
                  agreed, subject to applicable law and regulation, to indemnify
                  and hold harmless each of the Independent Directors against
                  any and all loss, damage, liability and expense, including
                  without limitation the advancement and payment as incurred of
                  reasonable fees and expenses of counsel and consultants, and
                  other customary costs and expenses incurred by the Independent
                  Directors, arising from the matters alleged in any Private
                  Litigation and Enforcement Actions or matters arising from or
                  similar in subject matter to the matters alleged in the
                  Private Litigation and Enforcement Actions (collectively,
                  "Covered Matters"), including without limitation:

                  1. all reasonable legal and other expenses incurred by the
                  Independent Directors in connection with the Private
                  Litigation and Enforcement Actions, and any actions that may
                  be threatened or commenced in the future by any person
                  (including any governmental authority), arising from or
                  similar to the matters alleged in the Private Litigation and
                  Enforcement Actions, including without limitation expenses
                  related to the defense of, service as a witness in, or
                  monitoring of such proceedings or actions;

                  2. all liabilities and reasonable legal and other expenses
                  incurred by any Independent Director in connection with any
                  judgment resulting from, or settlement of, any such
                  proceeding, action or matter;

                  3. any loss or reasonable legal and other expenses incurred by
                  any Independent Director as a result of the denial of, or
                  dispute about, any insurance claim under, or actual or
                  purported rescission or termination of, any policy of
                  insurance arranged by DIMA (or by a representative of DIMA
                  acting as such, acting as a representative of the Registrant
                  or of the Independent Directors or acting otherwise) for the
                  benefit of the Independent Director, to the extent that such
                  denial, dispute or rescission is based in whole or in part
                  upon any alleged misrepresentation made in the application for
                  such policy or any other alleged improper conduct on the part
                  of DIMA, any of its corporate affiliates, or any of their
                  directors, officers or employees;

                  4. any loss or reasonable legal and other expenses incurred by
                  any Independent Director, whether or not such loss or expense
                  is incurred with respect to a Covered Matter, which is
                  otherwise covered under the terms of any specified policy of
                  insurance, but for which the Independent Director is unable to
                  obtain advancement of expenses or indemnification under that
                  policy of insurance, due to the exhaustion of policy limits
                  which is due in whole or in part to DIMA or any affiliate
                  thereof having received advancement of expenses or
                  indemnification under that policy for or with respect to any
                  Covered Matter; provided, that the total amount that DIMA will
                  be obligated to pay under this provision for all loss or
                  expense shall not exceed the amount that DIMA and any of its
                  affiliates actually receive under that policy of insurance for
                  or with respect to any and all Covered Matters; and

                  5. all liabilities and reasonable legal and other expenses
                  incurred by any Independent Director in connection with any
                  proceeding or action to enforce his or her rights under the
                  agreement, unless DIMA prevails on the merits of any such
                  dispute in a final, nonappealable court order.

         DIMA is not required to pay costs or expenses or provide
         indemnification to or for any individual Independent Director (i) with
         respect to any particular proceeding or action as to which the Board of
         the Registrant has determined that such Independent Director ultimately
         would not be entitled to indemnification with respect thereto, or (ii)
         for any liability of the Independent Director to the Registrant or its
         shareholders to which such Independent Director would otherwise be
         subject by reason of willful misfeasance, bad faith, gross negligence,
         or reckless disregard of the Independent Director's duties as a
         Director of the Registrant as determined in a final adjudication in
         such proceeding or action. In addition, to the extent that DIMA has
         paid costs or expenses under the agreement to any individual
         Independent


                                       6
<PAGE>

         Director with respect to a particular proceeding or action, and there
         is a final adjudication in such proceeding or action of the Independent
         Director's liability to the Registrant or its shareholders by reason of
         willful misfeasance, bad faith, gross negligence, or reckless disregard
         of the Independent Director's duties as a Director of the Registrant,
         such Independent Director has undertaken to repay such costs or
         expenses to DIMA.

         On November 14, 2007, the Registrant and DIMA entered into an agreement
         that provides certain retiring Non-interested Directors certain
         assurances regarding continuation of insurance and indemnification
         rights. More specifically, the agreement provides that the Registrant
         shall take all actions reasonably necessary to assure that the
         retirement of certain Non-interested Directors and/or the election or
         appointment of members of the consolidated Board shall not reduce or
         impair any rights of those Non-interested Directors to indemnification,
         defense, advancement of expenses, or other rights, for or with respect
         to actual or threatened claims, liability, or expense that those
         Non-interested Directors may incur or suffer arising from or with
         respect to those Non-interested Directors' service in such capacity,
         except to the extent that the consolidated Board determines in the
         exercise of its duties to modify the rights of all Board members, past
         and present, without distinction. It is understood that any such
         modification of rights shall not, without the written consent of the
         Non-interested Directors, serve to modify any contractual rights that
         the Non-interested Directors may have under any agreement to which the
         Non-interested Directors and the Registrant are parties.

         For the six-year period following the election or appointment of
         members of the consolidated Board, the Registrant currently expect to
         maintain, D&O/E&O Insurance and IDL Insurance that is substantially
         equivalent in scope to the current coverage, and in amounts providing
         aggregate coverage with respect to the Registrant and all funds
         overseen by the consolidated Board of at least $100 million for D&O/E&O
         Insurance and at least $25 million for IDL Insurance; subject however
         to the right of the consolidated Board in the exercise of its duties to
         determine that a lower level of insurance coverage is in the best
         interests of the Registrant provided that any such reduction in
         coverage apply equally to their present and former Directors.

         Pursuant to the agreement, DIMA has agreed that the retirement of the
         Non-interested Directors under the terms of the retirement agreements
         shall in no way affect or diminish the contractual rights of
         indemnification that the Non-interested Directors may have under any
         agreement of indemnification between an Non-interested Directors and
         DIMA, including without limitation agreements of indemnification
         currently in effect with respect to matters related to market timing
         and matters related to merged or liquidated funds. Upon request made by
         any Non-interested Directors, DIMA has agreed to execute a separate
         instrument confirming the existence and continuation of any such
         agreement of indemnification.

         In addition, pursuant to the agreement, in the event that the
         consolidated Board determines to reduce insurance coverage below the
         minimum levels stated above, then DIMA at its expense will purchase
         excess insurance coverage for the benefit of the Non-interested
         Directors sufficient to maintain such minimum coverage levels in place
         for the duration of the period specified in the retirement agreements,
         provided that in the event that such excess coverage is not available
         in the marketplace on commercially reasonable terms from a conventional
         third-party insurer, DIMA (or an affiliate of DIMA) may, at DIMA's
         discretion and in lieu of purchasing such excess insurance coverage,
         elect instead to provide the Non-interested Directors substantially
         equivalent protection in the form of a written indemnity or financial
         guaranty reasonably acceptable to each such Non-interested Director.

Item 26.          Business and Other Connections of Investment Advisor
--------          ----------------------------------------------------

                  During the last two fiscal years, no director or officer of
                  Deutsche Investment Management Americas Inc., the investment
                  advisor, has engaged in any other business, profession,
                  vocation or employment of a substantial nature other than that
                  of the business of investment management and, through
                  affiliates, investment banking.


                                       7
<PAGE>

Item 27.          Principal Underwriters
--------          ----------------------

                  (a)

                  DWS Scudder Distributors, Inc. acts as principal underwriter
                  of the Registrant's shares and acts as principal underwriter
                  for registered open-end management investment companies other
                  funds managed by Deutsche Investment Management Americas Inc.
                  and Investment Company Capital Corp.

                  (b)

                  Information on the officers and directors of DWS Scudder
                  Distributors, Inc., principal underwriter for the Registrant,
                  is set forth below. The principal business address is 222
                  South Riverside Plaza, Chicago, Illinois 60606.

<TABLE>
<CAPTION>
                      (1)                             (2)                                  (3)
          DWS Scudder Distributors, Inc.
          Name and Principal             Positions and Offices with               Positions and
          Business Address               DWS Scudder Distributors, Inc.           Offices with Registrant
          ----------------               ------------------------------           -----------------------
                <S>                               <C>                                     <C>
          Philipp Hensler                Director, Chairman of the Board and      None
          345 Park Avenue                CEO
          New York, NY 10154

          Michael Colon                  Director and Chief Operating Officer     None
          345 Park Avenue
          New York, NY 10154

          Thomas Winnick                 Director and President                   None
          345 Park Avenue
          New York, NY 10154

          Cliff Goldstein                Chief Financial Officer and Treasurer    None
          60 Wall Street
          New York, NY 10005

          Robert Froehlich               Vice President                           None
          222 South Riverside Plaza
          Chicago, IL 60606

          Paul Schubert                  Vice President                           Chief Financial Officer
          345 Park Avenue                                                         and Treasurer
          New York, NY 10154

          Mark Perrelli                  Vice President                           None
          222 South Riverside Plaza
          Chicago, IL 60606

          Donna White                    Chief Compliance Officer                 None
          345 Park Avenue
          New York, NY 10154

          Jason Vazquez                  Vice President and AML Compliance        AML Compliance Officer
          345 Park Avenue                Officer
          New York, NY 10154


                                       8
<PAGE>
                      (1)                             (2)                                  (3)
          DWS Scudder Distributors, Inc.
          Name and Principal             Positions and Offices with               Positions and
          Business Address               DWS Scudder Distributors, Inc.           Offices with Registrant
          ----------------               ------------------------------           -----------------------

          Caroline Pearson               Secretary                                Assistant Secretary
          Two International Place
          Boston, MA 02110

          Philip J. Collora              Assistant Secretary                      None
          222 South Riverside Plaza
          Chicago, IL 60606

          Anjie LaRocca                  Assistant Secretary                      None
          345 Park Avenue
          New York, NY 10154
</TABLE>

         (c)      Not applicable

Item 28.          Location of Accounts and Records.
--------          ---------------------------------

                  Certain accounts, books and other documents required to be
                  maintained by Section 31(a) of the 1940 Act and the Rules
                  promulgated thereunder are maintained by Deutsche Investment
                  Management Americas Inc., 345 Park Avenue, New York, New York
                  10154. Records relating to the duties of the Registrant's
                  custodian are maintained by Brown Brothers Harriman & Co., 40
                  Water Street, Boston, Massachusetts. Records relating to the
                  duties of the Registrant's transfer agent are maintained by
                  DWS Scudder Investment Service Company, 811 Main Street,
                  Kansas City, Missouri 64105-2006. Records relating to
                  shareholder services functions are maintained by DWS Scudder
                  Investments Service Company.

Item 29.          Management Services.
--------          --------------------

                  Inapplicable.

Item 30.          Undertakings.
--------          -------------

                  None.


                                       9
<PAGE>


                                   SIGNATURES
                                   ----------


         Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this amendment to
its Registration Statement to be signed on its behalf by the undersigned,
thereto duly authorized, in the City of New York and the State of New York on
the 26th day of March 2008.

                                            DWS Global/International Fund, Inc.

                                            By: /s/Michael G. Clark
                                                ____________________________
                                                Michael G. Clark

         Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment to its Registration Statement has been signed below by
the following persons in the capacities and on the dates indicated:

<TABLE>
<CAPTION>
SIGNATURE                                  TITLE                                        DATE
---------                                  -----                                        ----
<S>                                              <C>                                        <C>
/s/Michael G. Clark
-------------------------------------
Michael G. Clark                           President                                    March 26, 2008

/s/Paul H. Schubert
-------------------------------------
Paul H. Schubert                           Chief Financial Officer and Treasurer        March 26, 2008

/s/Henry P. Becton, Jr.
-------------------------------------
Henry P. Becton, Jr.*                      Director                                     March 26, 2008

/s/Dawn-Marie Driscoll
-------------------------------------
Dawn-Marie Driscoll*                       Chairperson and Director                     March 26, 2008

/s/Keith R. Fox
-------------------------------------
Keith R. Fox*                              Director                                     March 26, 2008

/s/Kenneth C. Froewiss
-------------------------------------
Kenneth C. Froewiss*                       Director                                     March 26, 2008

/s/Martin J. Gruber
-------------------------------------
Martin J. Gruber*                          Director                                     March 26, 2008

/s/Richard J. Herring
-------------------------------------
Richard J. Herring*                        Director                                     March 26, 2008

/s/Graham E. Jones
-------------------------------------
Graham E. Jones*                           Director                                     March 26, 2008

/s/Rebecca W. Rimel
-------------------------------------
Rebecca W. Rimel*                          Director                                     March 26, 2008

/s/William N. Searcy, Jr.
-------------------------------------
William N. Searcy, Jr.*                    Director                                     March 26, 2008

/s/Jean Gleason Stromberg
-------------------------------------
Jean Gleason Stromberg*                    Director                                     March 26, 2008



<PAGE>

SIGNATURE                                  TITLE                                        DATE
---------                                  -----                                        ----

/s/Carl W. Vogt
-------------------------------------
Carl W. Vogt*                              Director                                     March 26, 2008

/s/Axel Schwarzer
-------------------------------------
Axel Schwarzer*                            Director                                     March 26, 2008
</TABLE>

*By:     /s/Caroline Pearson
         ------------------------------
         Caroline Pearson**
         Assistant Secretary

**       Attorney-in-fact pursuant to the powers of attorney as filed in
         Post-Effective Amendment No. 70 to the Registrant's Registration
         Statement on October 2, 2006.






                                       2

<PAGE>

                                                                File No. 33-5724
                                                               File No. 811-4670


                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


                                    EXHIBITS

                                       TO

                                    FORM N-1A


                         POST-EFFECTIVE AMENDMENT NO. 75

                            TO REGISTRATION STATEMENT

                                      UNDER

                           THE SECURITIES ACT OF 1933

                                       AND

                                AMENDMENT NO. 78

                            TO REGISTRATION STATEMENT

                                      UNDER

                       THE INVESTMENT COMPANY ACT OF 1940



                       DWS GLOBAL/INTERNATIONAL FUND, INC.


                                       10
<PAGE>


                       DWS GLOBAL/INTERNATIONAL FUND, INC.

                                  EXHIBIT INDEX
                                  -------------

                                     (f)(1)

                                     (h)(5)

                                     (h)(6)





                                       11