UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549



FORM N-CSRS



Investment Company Act file number  811-06071



DWS Institutional Funds

(Exact Name of Registrant as Specified in Charter)



One South Street

Baltimore, MD  21202

(Address of principal executive offices)             (Zip code)



Registrants Telephone Number, including Area Code:(212) 454-7190



Paul Schubert

345 Park Avenue

New York, NY 10154

(Name and Address of Agent for Service)



Date of fiscal year end:
        6/30




Date of reporting period:
        12/31/07






ITEM 1.REPORT TO STOCKHOLDERS





Daily Assets Fund Institutional

Semiannual Report
to Shareholders

December 31, 2007



Contents

click hereInformation About Your Fund's Expenses

click herePortfolio Summary

click hereInvestment Portfolio

click hereFinancial Statements

click hereFinancial Highlights

click hereNotes to Financial Statements

click hereInvestment Management Agreement Approval

click hereSummary of Management Fee Evaluation by Independent
Fee Consultant

click hereAccount Management Resources

click herePrivacy Statement

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

An investment in this fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the fund. Please read this fund's prospectus for specific
details regarding its risk profile.

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

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

Information About Your Fund's Expenses

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

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

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

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

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

|Expenses and Value of a $1,000 Investmentfor the six months ended December 31, 2007
|-----------------------------------------------------------------------------------
|Actual Fund Return                                                                 
|Beginning Account Value 7/1/07                                                     
|Ending Account Value 12/31/07                                                      
|Expenses Paid per $1,000*                                                          
|Hypothetical 5% Fund Return                                                        
|Beginning Account Value 7/1/07                                                     
|Ending Account Value 12/31/07                                                      
|Expenses Paid per $1,000*                                                          

|Annualized Expense Ratio        |     
|------------------------------- | ----
|Daily Assets Fund Institutional | .04%

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

Portfolio Summary

|Asset Allocation(As a % of Investment Portfolio) | 12/31/07 | 6/30/07
|------------------------------------------------ | -------- | -------
|                                                 |          |        
|Commercial Paper                                 | 43%      | 33%    
|Short-Term Notes                                 | 26%      | 34%    
|Certificates of Deposit and Bank Notes           | 19%      | 16%    
|Promissory Notes                                 | 4%       | 4%     
|Government & Agency Obligations                  | 3%       |       
|Repurchase Agreements                            | 2%       | 2%     
|Master Notes                                     | 2%       | 4%     
|Asset Backed                                     | 1%       | 1%     
|Time Deposits                                    |         | 6%     
|                                                 | 100%     | 100%   

|Weighted Average Maturity                    |         |        
|-------------------------------------------- | ------- | -------
|                                             |         |        
|Daily Assets Fund Institutional              | 42 days | 33 days
|First Tier Institutional Money Fund Average* | 38 days | 42 days

Asset allocation and weighted average maturity are subject to change. For more complete
details about the Fund's holdings, see page 6. A quarterly Fact Sheet is available upon
request. Information concerning portfolio holdings of the Fund as of month end will be
posted to www.dws-scudder.com on or after the 14th day of the following month. In
addition, the Fund's top ten holdings and other information about the Fund is posted on
www.dws-scudder.com as of the calendar quarter-end on or after the 14th day following
quarter-end. Please see the Account Management Resources section for contact
information.

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

Investment Portfolioas of December 31, 2007 (Unaudited)

|                                                                                                                          | Principal
Amount ($) | Value ($)  
|------------------------------------------------------------------------------------------------------------------------- | -------------------- | -----------
|                                                                                                                          |                     
|Certificates of Deposit and Bank Notes 19.1%                                                                             
|ABN AMRO Bank NV, 5.05%, 1/23/2008                                                                                        | 35,000,000           | 35,002,872 
|Banco Bilbao Vizcaya Argentaria SA, 5.27%, 1/8/2008                                                                       | 21,000,000           | 21,000,040 
|Bank of Scotland PLC:                                                                                                     |                      |            
|4.5%, 11/19/2008                                                                                                          | 20,000,000           | 20,000,000 
|4.93%, 10/9/2008                                                                                                          | 10,000,000           | 10,000,000 
|Barclays Bank PLC:                                                                                                        |                      |            
|4.93%, 2/25/2008                                                                                                          | 30,000,000           | 30,002,675 
|5.2%, 4/9/2008                                                                                                            | 25,000,000           | 25,000,000 
|5.5%, 3/12/2008                                                                                                           | 39,000,000           | 39,000,000 
|BNP Paribas, 5.1%, 3/13/2008                                                                                              | 25,000,000           | 25,000,000 
|Calyon, 4.8%, 3/25/2008                                                                                                   | 25,000,000           | 25,000,000 
|Chase Bank USA NA, 5.15%, 2/12/2008                                                                                       | 24,500,000           | 24,500,000 
|Citibank NA, 5.3%, 2/20/2008                                                                                              | 15,000,000           | 15,000,000 
|Credit Industrial et Commercial:                                                                                          |                      |            
|4.95%, 2/1/2008                                                                                                           | 35,000,000           | 35,000,149 
|5.31%, 1/2/2008                                                                                                           | 50,000,000           | 50,000,014 
|HSH NordBank AG, 5.35%, 1/11/2008                                                                                         | 44,500,000           | 44,499,952 
|JPMorgan Chase Bank NA, 4.75%, 6/10/2008                                                                                  | 22,000,000           | 22,000,000 
|KBC Bank NV, 5.7%, 3/6/2008                                                                                               | 25,000,000           | 25,004,351 
|Landesbank Baden Wurttemberg, 5.4%, 3/18/2008                                                                             | 68,500,000           | 68,500,000 
|Mizuho Corporate Bank, 4.93%, 2/19/2008                                                                                   | 41,800,000           | 41,800,000 
|Natixis, SA, 5.08%, 3/20/2008                                                                                             | 20,000,000           | 20,000,000 
|Societe Generale:                                                                                                         |                      |            
|5.305%, 1/24/2008                                                                                                         | 40,000,000           | 40,000,124 
|5.35%, 1/18/2008                                                                                                          | 30,000,000           | 30,000,000 
|5.35%, 1/22/2008                                                                                                          | 50,000,000           | 50,000,000 
|UBS AG:                                                                                                                   |                      |            
|5.39%, 3/18/2008                                                                                                          | 50,000,000           | 50,000,000 
|5.48%, 3/7/2008                                                                                                           | 42,000,000           | 42,000,000 
|Total Certificates of Deposit and Bank Notes (Cost $788,310,177)                                                          | 788,310,177         
|                                                                                                                         
|Commercial Paper** 42.9%                                                                                                 
|AstraZeneca PLC:                                                                                                          |                      |            
|4.65%, 2/28/2008                                                                                                          | 25,000,000           | 24,812,708 
|4.95%, 4/7/2008                                                                                                           | 32,700,000           | 32,263,864 
|Bank of America Corp., 4.865%, 4/11/2008                                                                                  | 25,000,000           | 24,658,774 
|Bank of Scotland PLC, 5.08%, 1/16/2008                                                                                    | 22,173,000           | 22,126,067 
|CAFCO LLC, 5.35%, 2/12/2008                                                                                               | 25,000,000           | 24,843,958 
|Cancara Asset Securitization LLC:                                                                                         |                      |            
|5.17%, 1/11/2008                                                                                                          | 30,000,000           | 29,956,917 
|5.215%, 1/14/2008                                                                                                         | 45,000,000           | 44,915,256 
|CBA (Delaware) Finance, Inc., 4.93%, 3/17/2008                                                                            | 35,000,000           | 34,635,728 
|Chariot Funding LLC, 5.4%, 1/29/2008                                                                                      | 30,986,000           | 30,855,859 
|Ciesco LLC:                                                                                                               |                      |            
|5.4%, 1/28/2008                                                                                                           | 25,000,000           | 24,898,750 
|5.43%, 2/14/2008                                                                                                          | 25,000,000           | 24,834,083 
|Dexia Delaware LLC, 5.025%, 3/3/2008                                                                                      | 10,000,000           | 9,913,458  
|Electricite de France, 4.4%, 3/5/2008                                                                                     | 15,000,000           | 14,882,667 
|Falcon Asset Securitization Corp., 4.9%, 1/15/2008                                                                        | 13,666,000           | 13,639,959 
|Gannett Co., Inc., 5.5%, 1/9/2008                                                                                         | 13,000,000           | 12,984,111 
|Giro Balanced Funding Corp., 5.59%, 1/31/2008                                                                             | 50,000,000           | 49,767,083 
|GlaxoSmithKline Finance PLC, 4.58%, 3/26/2008                                                                             | 25,000,000           | 24,729,653 
|Grampian Funding LLC:                                                                                                     |                      |            
|4.865%, 2/11/2008                                                                                                         | 45,000,000           | 44,750,669 
|5.16%, 2/5/2008                                                                                                           | 35,000,000           | 34,824,417 
|5.18%, 1/2/2008                                                                                                           | 40,000,000           | 39,994,244 
|Greenwich Capital Holdings, Inc., 4.81%, 5/28/2008                                                                        | 22,000,000           | 21,564,962 
|HSH Nordbank AG, 5.15%, 1/17/2008                                                                                         | 20,000,000           | 19,954,222 
|Kellogg Co.:                                                                                                              |                      |            
|4.93%, 1/17/2008                                                                                                          | 8,000,000            | 7,982,471  
|5.0%, 1/10/2008                                                                                                           | 15,000,000           | 14,981,250 
|5.05%, 1/30/2008                                                                                                          | 12,000,000           | 11,951,183 
|5.28%, 1/31/2008                                                                                                          | 9,500,000            | 9,458,200  
|5.45%, 1/22/2008                                                                                                          | 1,000,000            | 996,821    
|Kitty Hawk Funding Corp., 4.87%, 2/14/2008                                                                                | 35,000,000           | 34,791,672 
|Lake Constance Funding LLC:                                                                                               |                      |            
|5.04%, 1/25/2008                                                                                                          | 25,000,000           | 24,916,000 
|5.23%, 1/11/2008                                                                                                          | 20,000,000           | 19,970,944 
|5.65%, 2/8/2008                                                                                                           | 18,700,000           | 18,588,475 
|Liberty Street Funding:                                                                                                   |                      |            
|5.4%, 2/19/2008                                                                                                           | 25,000,000           | 24,816,250 
|5.75%, 3/13/2008                                                                                                          | 25,000,000           | 24,712,500 
|6.5%, 1/10/2008                                                                                                           | 30,000,000           | 29,951,250 
|Market Street Funding LLC, 6.25%, 1/18/2008                                                                               | 35,000,000           | 34,896,701 
|Natexis Banques Populaires US Finance Co., LLC, 4.745%,
2/6/2008                                                          | 20,000,000           | 19,905,100 
|Nestle Capital Corp.:                                                                                                     |                      |            
|4.3%, 10/31/2008                                                                                                          | 7,500,000            | 7,227,667  
|4.75%, 3/7/2008                                                                                                           | 25,000,000           | 24,782,292 
|5.23%, 1/24/2008                                                                                                          | 20,000,000           | 19,933,172 
|Nieuw Amsterdam Receivables Corp., 5.22%, 1/4/2008                                                                        | 20,000,000           | 19,991,300 
|Nissan Motor Acceptance Corp.:                                                                                            |                      |            
|5.15%, 1/23/2008                                                                                                          | 15,000,000           | 14,952,792 
|5.55%, 1/10/2008                                                                                                          | 20,000,000           | 19,972,250 
|Norddeutsche Landesbank Girozentrale, 5.23%, 1/7/2008                                                                     | 25,000,000           | 24,978,208 
|North Sea Funding LLC, 5.15%, 1/25/2008                                                                                   | 40,000,000           | 39,862,667 
|Old Line Funding LLC, 5.85%, 2/8/2008                                                                                     | 25,000,000           | 24,845,625 
|Park Avenue Receivables Co., LLC, 5.4%, 2/4/2008                                                                          | 20,000,000           | 19,898,000 
|Perry Global Funding LLC, Series A:                                                                                       |                      |            
|5.0%, 1/25/2008                                                                                                           | 28,500,000           | 28,405,000 
|5.26%, 1/17/2008                                                                                                          | 20,000,000           | 19,953,244 
|Pfizer, Inc.:                                                                                                             |                      |            
|4.4%, 5/14/2008                                                                                                           | 32,500,000           | 31,967,722 
|4.41%, 5/16/2008                                                                                                          | 10,000,000           | 9,833,400  
|4.53%, 4/28/2008                                                                                                          | 19,850,000           | 19,555,261 
|Procter & Gamble International Funding S.C.A., 4.47%,
2/14/2008                                                           | 10,000,000           | 9,945,367  
|San Paolo IMI US Financial Co.:                                                                                           |                      |            
|5.105%, 1/11/2008                                                                                                         | 20,000,000           | 19,971,639 
|5.26%, 1/7/2008                                                                                                           | 2,654,000            | 2,651,673  
|5.28%, 1/7/2008                                                                                                           | 15,000,000           | 14,986,800 
|Scaldis Capital LLC:                                                                                                      |                      |            
|5.18%, 1/3/2008                                                                                                           | 45,000,000           | 44,987,050 
|5.23%, 1/4/2008                                                                                                           | 21,000,000           | 20,990,848 
|5.24%, 1/9/2008                                                                                                           | 40,000,000           | 39,953,422 
|Sheffield Receivables Corp.:                                                                                              |                      |            
|5.8%, 1/18/2008                                                                                                           | 28,700,000           | 28,621,394 
|5.9%, 1/23/2008                                                                                                           | 20,000,000           | 19,927,889 
|6.0%, 1/9/2008                                                                                                            | 10,000,000           | 9,986,667  
|Societe Generale North America, Inc., 5.16%, 1/3/2008                                                                     | 50,000,000           | 49,985,667 
|Swedbank AB, 4.73%, 2/29/2008                                                                                             | 20,000,000           | 19,844,961 
|The Goldman Sachs Group, Inc., 5.3%, 1/8/2008                                                                             | 35,000,000           | 34,963,931 
|Toyota Motor Credit Corp.:                                                                                                |                      |            
|4.5%, 2/12/2008                                                                                                           | 25,000,000           | 24,868,750 
|4.61%, 4/25/2008                                                                                                          | 45,000,000           | 44,337,313 
|4.84%, 3/31/2008                                                                                                          | 20,000,000           | 19,758,000 
|United Parcel Service, Inc., 4.18%, 5/30/2008                                                                             | 10,000,000           | 9,825,833  
|Verizon Communications, Inc.:                                                                                             |                      |            
|4.38%, 1/7/2008                                                                                                           | 10,000,000           | 9,992,700  
|4.87%, 1/7/2008                                                                                                           | 5,000,000            | 4,995,942  
|Victory Receivables Corp.:                                                                                                |                      |            
|5.11%, 2/8/2008                                                                                                           | 18,000,000           | 17,902,910 
|5.5%, 2/15/2008                                                                                                           | 31,750,000           | 31,531,719 
|Westpac Banking Corp., 5.1%, 1/11/2008                                                                                    | 23,800,000           | 23,766,283 
|Windmill Funding Corp.:                                                                                                   |                      |            
|5.18%, 1/10/2008                                                                                                          | 25,000,000           | 24,967,625 
|5.35%, 2/1/2008                                                                                                           | 35,000,000           | 34,838,757 
|Total Commercial Paper (Cost $1,773,487,966)                                                                              | 1,773,487,966       
|                                                                                                                         
|Master Notes 1.9%                                                                                                        
|Citigroup Global Markets, Inc., 4.6%*, 1/2/2008 (a)
(Cost $80,000,000)                                                    | 80,000,000           | 80,000,000 
|Asset Backed 0.6%                                                                                                        
|Steers Mercury III Trust, 144A, 4.885%*, 5/27/2048
(Cost $23,582,568)                                                     | 23,582,568           | 23,582,568 
|                                                                                                                          |                      |            
|Promissory Notes 3.6%                                                                                                    
|Merrill Lynch & Co., Inc., 5.16%*, 3/4/2008                                                                               | 80,000,000           | 80,000,000 
|The Goldman Sachs Group, Inc., 4.12%*, 1/18/2008                                                                          | 70,000,000           | 70,000,000 
|Total Promissory Notes (Cost $150,000,000)                                                                                | 150,000,000         
|                                                                                                                         
|Short-Term Notes* 26.0%                                                                                                  
|Allied Irish Banks PLC, 4.945%, 8/18/2008                                                                                 | 70,000,000           | 70,000,000 
|American General Finance Corp., 5.328%, 1/18/2008                                                                         | 35,000,000           | 34,998,600 
|American Honda Finance Corp.:                                                                                             |                      |            
|144A, 4.959%, 5/12/2008                                                                                                   | 20,000,000           | 20,007,764 
|5.166%, 9/18/2008                                                                                                         | 22,000,000           | 22,000,000 
|5.171%, 1/23/2008                                                                                                         | 67,000,000           | 67,001,950 
|Australia & New Zealand Banking Group Ltd., 4.916%,
8/22/2008                                                             | 20,000,000           | 20,000,000 
|Banco Bilbao Vizcaya Argentaria SA, 5.234%, 4/17/2008                                                                     | 22,000,000           | 22,002,493 
|Banco Espanol de Credito SA, 5.198%, 8/11/2008                                                                            | 46,100,000           | 46,100,000 
|Bank of America NA, 4.315%, 5/16/2008                                                                                     | 30,000,000           | 30,000,000 
|BNP Paribas, 4.896%, 8/25/2008                                                                                            | 20,000,000           | 20,000,000 
|Caja de Ahorros y Monte de Piedad de Madrid, 5.348%,
8/12/2008                                                            | 20,000,000           | 20,000,000 
|Canadian Imperial Bank of Commerce:                                                                                       |                      |            
|4.41%, 6/9/2008                                                                                                           | 15,000,000           | 15,000,000 
|5.248%, 7/18/2008                                                                                                         | 35,000,000           | 34,962,909 
|Commonwealth Bank of Australia, 4.916%, 9/23/2008                                                                         | 40,000,000           | 40,000,000 
|Credit Agricole SA, 4.853%, 7/22/2008                                                                                     | 40,000,000           | 40,000,000 
|Danske Bank AS, 4.918%, 8/19/2008                                                                                         | 47,000,000           | 46,998,018 
|DNB NOR Bank ASA, 4.865%, 9/24/2008                                                                                       | 21,500,000           | 21,500,000 
|General Electric Capital Corp., 5.198%, 1/15/2008                                                                         | 27,000,000           | 26,998,868 
|HSH Nordbank AG, 4.866%, 3/25/2008                                                                                        | 35,000,000           | 34,998,420 
|Intesa Bank Ireland PLC, 4.875%, 8/22/2008                                                                                | 10,000,000           | 10,000,000 
|Natixis SA, 4.4%, 3/31/2008                                                                                               | 75,000,000           | 74,996,322 
|Nordea Bank AB, 5.232%, 9/8/2008                                                                                          | 20,000,000           | 20,000,000 
|Pyxis Master Trust, Series 2007-6, 5.17%, 3/6/2008                                                                        | 18,000,000           | 18,000,000 
|Skandinaviska Enskilda Banken:                                                                                            |                      |            
|5.016%, 8/19/2008                                                                                                         | 50,000,000           | 50,000,000 
|5.242%, 8/8/2008                                                                                                          | 15,000,000           | 15,000,000 
|SunTrust Bank, Atlanta, 5.18%, 4/21/2008                                                                                  | 15,000,000           | 14,990,436 
|Toyota Motor Credit Corp., 4.05%, 2/11/2008                                                                               | 100,000,000          | 100,000,000
|UniCredito Italiano Bank (Ireland) PLC:                                                                                   |                      |            
|5.047%, 8/14/2008                                                                                                         | 75,000,000           | 75,000,000 
|5.238%, 8/8/2008                                                                                                          | 25,000,000           | 24,999,008 
|5.262%, 8/8/2008                                                                                                          | 40,000,000           | 40,000,000 
|Total Short-Term Notes (Cost $1,075,554,788)                                                                              | 1,075,554,788       
|                                                                                                                         
|Municipal Bonds and Notes 0.2%                                                                                           
|North Texas, Higher Education Authority, Inc., Student Loan
Revenue, Series B, 4.85%***, 12/1/2044 (b)
(Cost $10,000,000) | 10,000,000           | 10,000,000 
|                                                                                                                         
|Government & Agency Obligations 3.2%                                                                                     
|US Government Sponsored Agencies 1.9%                                                                                    
|Federal Home Loan Bank, 2.625%, 7/15/2008                                                                                 | 7,500,000            | 7,440,925  
|Federal Home Loan Mortgage Corp.:                                                                                         |                      |            
|3.7%**, 10/10/2008                                                                                                        | 10,000,000           | 9,709,139  
|4.15%**, 6/9/2008                                                                                                         | 12,000,000           | 11,778,667 
|Federal National Mortgage Association:                                                                                    |                      |            
|3.94%**, 8/8/2008                                                                                                         | 25,000,000           | 24,398,056 
|4.235%**, 3/19/2008                                                                                                       | 24,000,000           | 23,779,780 
|                                                                                                                          | 77,106,567          
|US Treasury Obligations 1.3%                                                                                             
|US Treasury Bills:                                                                                                        |                      |            
|3.14%**, 6/26/2008                                                                                                        | 20,000,000           | 19,691,233 
|3.17%**, 5/29/2008                                                                                                        | 15,000,000           | 14,803,196 
|US Treasury Notes:                                                                                                        |                      |            
|3.375%, 12/15/2008                                                                                                        | 10,000,000           | 10,039,054 
|4.875%, 10/31/2008                                                                                                        | 10,000,000           | 10,131,269 
|                                                                                                                          | 54,664,752          
|Total Government & Agency Obligations (Cost $131,771,319)                                                                 | 131,771,319         
|                                                                                                                         
|Repurchase Agreements 2.4%                                                                                               
|Bear Stearns & Co., Inc., 4.76%, dated 12/31/2007 to be
repurchased at $100,828,414 on 1/2/2008 (c)
(Cost $100,801,758)   | 100,801,758          | 100,801,758

|                                                 | % of Net
Assets | Value ($)    
|------------------------------------------------ | --------------- | -------------
|                                                 |                
|Total Investment Portfolio(Cost $4,133,508,576)+ | 99.9            | 4,133,508,576
|Other Assets and Liabilities, Net                | 0.1             | 3,478,885    
|Net Assets                                       | 100.0           | 4,136,987,461

|Insurance Coverage    | As a % of Total
Investment Portfolio
|--------------------- | ------------------------------------
|Ambac Assurance Corp. | 0.2                                 

|Principal
Amount ($)   | Security                              | Rate (%)   | Maturity Date     | Collateral
Value ($)
|---------------------- | ------------------------------------- | ---------- | ----------------- | --------------------
|23,716,423             | Federal Home Loan
Mortgage Corp.      | 4.99-5.947 | 8/1/2017-5/1/2037 | 24,017,676          
|78,387,038             | Federal National
Mortgage Association | 4.507-7.0  | 5/1/2022-3/1/2036 | 78,802,062          
|Total Collateral Value | 102,819,738                          

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration, normally to
qualified institutional buyers.

Financial Statements

|Statement of Assets and Liabilitiesas of December 31, 2007 (Unaudited)                                                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Assets                                                                                                                                                                                     
|Investments in securities, valued at amortized cost                                                                                                                                        
|Cash                                                                                                                                                                                       
|Interest receivable                                                                                                                                                                        
|Other assets                                                                                                                                                                               
|Total assets                                                                                                                                                                               
|Liabilities                                                                                                                                                                                
|Dividends payable                                                                                                                                                                          
|Accrued expenses and other liabilities                                                                                                                                                     
|Total liabilities                                                                                                                                                                          
|Net assets, at value                                                                                                                                                                       
|Net Assets Consist of:                                                                                                                                                                     
|Undistributed net investment income                                                                                                                                                        
|Accumulated net realized gain (loss)                                                                                                                                                       
|Paid-in capital                                                                                                                                                                            
|Net assets, at value                                                                                                                                                                       
|Net Asset Value                                                                                                                                                                            
|Net Asset Value, offering and redemption price per share
($4,136,987,461 ÷ 4,137,400,164 outstanding shares of beneficial
interest, $.001 par value, unlimited number of shares authorized)

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

|Statement of Operationsfor the six months ended December 31, 2007 (Unaudited)
|-----------------------------------------------------------------------------
|Investment Income                                                            
|Income:Interest                                                              
|Expenses:Investment management fee                                           
|Administration fee                                                           
|Services to shareholders                                                     
|Professional fees                                                            
|Trustees' fees and expenses                                                  
|Custodian fee                                                                
|Other                                                                        
|Total expenses before expense reductions                                     
|Expense reductions                                                           
|Total expenses after expense reductions                                      
|Net investment income                                                        
|Net realized gain (loss)                                                     
|Net increase (decrease) in net assets resulting from operations              

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

|Statement of Changes in Net Assets                                                                                
|------------------------------------------------------------------------------------------------------------------
|Increase (Decrease) in Net Assets                                                                                 
|Operations:Net investment income                                                                                  
|Net realized gain (loss)                                                                                          
|Net increase (decrease) in net assets resulting from
operations                                                   
|Distribution to shareholders from:Net investment income                                                           
|Fund share transactions:Proceeds from shares sold                                                                 
|Reinvestment of distributions                                                                                     
|Cost of shares redeemed                                                                                           
|Net increase (decrease) in net assets from Fund share
transactions                                                
|Increase (decrease) in net assets                                                                                 
|Net assets at beginning of period                                                                                 
|Net assets at end of period (including undistributed
net investment income of $206,199 and $206,199,
respectively)
|Other Information                                                                                                 
|Shares outstanding at beginning of period                                                                         
|Shares sold                                                                                                       
|Shares issued to shareholders in reinvestment of
distributions                                                    
|Shares redeemed                                                                                                   
|Net increase (decrease) in Fund shares                                                                            
|Shares outstanding at end of period                                                                               

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

Financial Highlights

|Years Ended June 30,                                                                                                                                                                     | 2007a     | 2007      | 2006      | 2005      | 2004      | 2003     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                 
|Net asset value, beginning of period                                                                                                                                                     | $    1.00 | $    1.00 | $    1.00 | $    1.00 | $    1.00 | $    1.00
|Income (loss) from investment
operations:
Net investment income                                                                                                                          | .027      | .053      | .042      | .022      | .010      | .015     
|Net realized and unrealized gain (loss)b                                                                                                                                                 |          |          |          |          |          |         
|Total from investment operations                                                                                                                                                         | .027      | .053      | .042      | .022      | .010      | .015     
|Less distributions from:
Net investment income                                                                                                                                           | (.027)    | (.053)    | (.042)    | (.022)    | (.010)    | (.015)   
|Net asset value, end of period                                                                                                                                                           | $    1.00 | $    1.00 | $    1.00 | $    1.00 | $    1.00 | $    1.00
|Total Return (%)c                                                                                                                                                                        | 2.68**    | 5.44      | 4.30      | 2.24      | 1.02      | 1.47     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                      
|Net assets, end of period ($ millions)                                                                                                                                                   | 4,137     | 4,915     | 3,122     | 2,987     | 3,895     | 5,589    
|Ratio of expenses before expense
reductions (%)                                                                                                                                          | .21*      | .21       | .13       | .13       | .14       | .13      
|Ratio of expenses after expense
reductions (%)                                                                                                                                           | .04*      | .04       | .04       | .02       | .07       | .12      
|Ratio of net investment income (%)                                                                                                                                                       | 5.28*     | 5.31      | 4.25      | 2.26      | 1.03      | 1.50     
|aFor the six months ended December 31, 2007 (Unaudited).bLess than $.005 per share.cTotal return would have been lower had certain expenses not been reduced.*Annualized**Not annualized

Notes to Financial Statements(Unaudited)

A. Significant Accounting Policies

DWS Institutional Funds (the ``Trust'') is registered under the Investment
Company Act of 1940, as amended (the ``1940 Act''), and is organized as a
Massachusetts business trust. Daily Assets Fund Institutional (the
``Fund''), a diversified open-end management investment company, is one
of the funds the Trust offers to institutional and ``accredited'' investors as
defined under the Securities Act of 1933.

The Fund is primarily sold to investors who use the Fund to invest cash
collateral received in connection with securities lending transactions.

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

Security Valuation.Portfolio securities are valued utilizing the amortized
cost method permitted in accordance with Rule 2a-7 under the 1940 Act
and certain conditions therein. Under this method, which does not take
into account unrealized capital gains or losses on securities, an instrument
is initially valued at its cost and thereafter assumes a constant
accretion/amortization rate to maturity of any discount or premium.

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

Repurchase Agreements.The Fund may enter into repurchase
agreements with certain banks and broker/dealers whereby the Fund,
through its custodian or sub-custodian bank, receives delivery of the
underlying securities, the amount of which at the time of purchase and
each subsequent business day is required to be maintained at such a level
that the value is equal to at least the principal amount of the repurchase
price plus accrued interest. The custodial bank holds the collateral in a
separate account until the agreement matures. If the value of the
securities falls below the principal amount of the repurchase agreement
plus accrued interest, the financial institution deposits additional collateral
by the following business day. If the financial institution either fails to
deposit the required additional collateral or fails to repurchase the securities
as agreed, the Fund has the right to sell the securities and recover any
resulting loss from the financial institution. If the financial institution
enters into bankruptcy, the Fund's claims on the collateral may be subject
to legal proceedings.

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

At June 30, 2007, the Fund had a net tax basis capital loss carryforward of
approximately $848,000 which may be applied against any realized net
taxable capital gains of each succeeding year until fully utilized or until
June 30, 2012 ($473,000), June 30, 2013 ($197,000), June 30, 2014
($158,000) and June 30, 2015 ($20,000), the respective expiration dates,
whichever occurs first.

The Fund has reviewed the tax positions for each of the three open tax
years as of June 30, 2007 and has determined that no provision for
income tax is required in the Fund's financial statements. Each of the
Fund's federal tax returns for the prior three fiscal years remains subject
to examination by the Internal Revenue Service.

Distributions of Income.The net investment income of the Fund is
declared as a daily dividend and is distributed to shareholders monthly.

Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid-in capital. Temporary
book and tax basis differences will reverse in a subsequent period. There
were no significant book-to-tax differences for the Fund.

The tax character of current year distributions will be determined at the
end of the current fiscal year.

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

Other.Investment transactions are accounted for on trade date. Interest
income is recorded on the accrual basis. Realized gains and losses from
investment transactions are recorded on an identified cost basis. All
discounts and premiums are accreted/amortized for both tax and financial
reporting purposes.

B. Fees and Transactions with Affiliates

Management Agreement.Under the Investment Management
Agreement with Deutsche Investment Management Americas Inc.
("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of
Deutsche Bank AG, the Advisor directs the investments of the Fund in
accordance with its investment objectives, policies and restrictions. The
Advisor determines the securities, instruments and other contracts
relating to investments to be purchased, sold or entered into by the Fund.
The management fee payable under the Investment Management
Agreement is equal to an annual rate of 0.10% of the Fund's average daily
net assets, computed and accrued daily and payable monthly.

For the period from July 1, 2006, through October 31, 2008, the Advisor
had contractually agreed to waive all or a portion of its advisory fee and
reimburse or pay operating expenses of the Fund (excluding certain
expenses such as extraordinary expenses, taxes, brokerage, interest,
proxy and organizational and offering expenses) to the extent necessary to
maintain the Fund's operating expenses at a ratio no higher than 0.07%.

Additionally, for the period from July 1, 2007 to December 21, 2007, the
Advisor had voluntarily agreed to waive its fees and/or reimburse
expenses of the Fund, to the extent necessary to limit expenses to 0.04%
of the average daily net assets of the Fund, excluding certain expenses
such as extraordinary expenses, taxes, brokerage and interest expense.

Accordingly, for the six months ended December 31, 2007, the fee
pursuant to the Investment Management Agreement aggregated
$2,358,317, all of which was waived, resulting in an annualized effective
rate of 0.00% of the Fund's average daily net assets.

Administration Fee. Pursuant to the Administrative Services Agreement,
DIMA provides most administrative services to the Fund. For all services
provided under the Administrative Services Agreement, the Fund pays
DIMA an annual fee ("Administration Fee") of 0.10% of the Fund's average
daily net assets, computed and accrued daily and payable monthly. For the
six months ended December 31, 2007, DIMA received an Administration
Fee of $2,358,317 of which $1,574,193 was waived and $165,975
is unpaid.

Service Provider Fees. DWS Scudder Investments Service Company
("DWS-SISC"), an affiliate of the Advisor, is the transfer agent,
dividend-paying agent and shareholder service agent for the Fund.
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 service agent functions to
DST. DWS-SISC compensates DST out of the shareholder servicing fee it
receives from the Fund. For the six months ended December 31, 2007,
the amount charged to the Fund by DWS-SISC aggregated $118, all of
which was waived.

Typesetting and Filing Service Fees.Under an agreement with DIMA,
DIMA is compensated for providing typesetting and certain regulatory
filing services to the Fund. For the six months ended December 31, 2007,
the amount charged to the Fund by DIMA included in the Statement of
Operations under "other" aggregated $2,881, all of which is unpaid.

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

Fee Reductions.The Fund has entered into an arrangement with its
custodian whereby credits realized as a result of uninvested cash
balances were used to reduce a portion of the Fund's custodian expenses.
During the six months ended December 31, 2007, the custodian fee was
reduced by $2,321 for custodian credits earned.

C. Line of Credit

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

D. Ownership of the Fund

At December 31, 2007, 93% of the outstanding shares of the Fund were
held by other affiliated DWS funds.

Investment Management Agreement
Approval

The Fund's Trustees approved the continuation of the Fund's current
investment management agreement with DIMA in September 2007.

In terms of the process that the Trustees followed prior to approving the
agreement, shareholders should know that:

At the present time, all but one of your Fund's Trustees are
independent of DIMA and its affiliates.

The Trustees meet frequently to discuss fund matters. Each year, the
Trustees dedicate part or all of several meetings to contract review
matters. In connection with reviewing the Fund's investment
management agreement, the Trustees also review the terms of the
Fund's Rule 12b-1 plan, distribution agreement, administration
agreement, transfer agency agreement and other material service
agreements.

In connection with the Board's 2007 contract review, the Board formed
a special committee to facilitate careful review of the funds'
contractual arrangements. After reviewing the Fund's arrangements,
that committee recommended that the Board vote to approve the
continuation of the Fund's investment management agreement.

The Trustees regularly meet privately with their independent counsel
to discuss contract review and other matters. In addition, the Trustees
were also advised by two consultants, including the Fund's
independent fee consultant, in the course of their 2007 review of the
Fund's contractual arrangements. In particular, the Trustees considered
the report prepared by the independent fee consultant in connection
with their deliberations.

The Trustees believe that a long-term relationship with a capable,
conscientious advisor is in the best interest of shareholders. As you may
know, DIMA is part of Deutsche Bank, a major global banking institution
that is engaged in a wide range of financial services. The Trustees believe
that there are significant advantages to being part of a global asset
management business that offers a wide range of investing expertise and
resources, including hundreds of portfolio managers and analysts with
research capabilities in many countries throughout the world.

Shareholders may focus primarily on fund performance and fees, but the
Fund's Trustees consider these and many other factors, including the
quality and integrity of DIMA's personnel and such other issues as
back-office operations, fund valuations, and compliance policies and
procedures.

In determining to approve the continuation of the Fund's current
investment management agreement, the Board considered all factors that
it believes relevant to the interests of Fund shareholders, including:

The investment management fee schedule for the Fund, including
(i) comparative information provided by Lipper regarding investment
management fee rates paid to other investment advisors by similar
funds and (ii) fee rates paid to DIMA by similar funds and
institutional accounts advised by DIMA (if any).With respect to
management fees paid to other investment advisors by similar funds,
the Trustees noted that the contractual fee rates paid by the Fund
were lower than the median (1st quartile) of the applicable Lipper peer
group (based on Lipper data provided as of December 31, 2006). The
Board gave a lesser weight to fees paid by similar institutional
accounts advised by DIMA, in light of the material differences in the
scope of services provided to mutual funds as compared to those
provided to institutional accounts. Taking into account the foregoing,
the Board concluded that the fee schedule in effect for the Fund
represents reasonable compensation in light of the nature, extent and
quality of the investment services being provided to the Fund.

The extent to which economies of scale would be realized as the
Fund grows.The Board concluded that the Fund's fee schedule
represents an appropriate sharing between Fund shareholders and
DIMA of such economies of scale as may exist in the management of
the Fund at current asset levels.

The total operating expenses of the Fund.In this regard, the Board
noted that the total (net) operating expenses of the Fund (Institutional
Class shares) are expected to be higher than the median (3rd quartile)
of the applicable Lipper expense universe (based on Lipper data
provided as of December 31, 2006). The Board considered the
expenses of this class to be representative for purposes of evaluating
other classes of shares. The Board also considered how the Fund's
total (net) operating expenses compared to the total (net) operating
expenses of a more customized peer group selected by Lipper (based
on such factors as asset size). The Board also noted that the expense
limitations agreed to by DIMA helped to ensure that the Fund's total
(net) operating expenses would be competitive relative to the
applicable Lipper universe.

The investment performance of the Fund and DIMA, both absolute
and relative to various benchmarks and industry peer groups.The
Board noted that for each of the one-, three- and five-year periods
ended December 31, 2006, the Fund's performance (Institutional Class
shares) was in the 1st quartile of the applicable iMoneyNet universe.
The Board also observed that the Fund has outperformed its
benchmark in each of the one-, three- and five-year periods ended
December 31, 2006. The Board recognized that DIMA has made
significant changes in its investment personnel and processes in
recent years in an effort to improve long-term performance.

The nature, extent and quality of the advisory services provided by
DIMA.The Board considered extensive information regarding DIMA,
including DIMA's personnel (including particularly those personnel with
responsibilities for providing services to the Fund), resources, policies
and investment processes. The Board also considered the terms of
the current investment management agreement, including the scope
of services provided under the agreement. In this regard, the Board
concluded that the quality and range of services provided by DIMA
have benefited and should continue to benefit the Fund and its
shareholders.

The costs of the services to, and profits realized by, DIMA and its
affiliates from their relationships with the Fund.The Board reviewed
information concerning the costs incurred and profits realized by DIMA
during 2006 from providing investment management services to the
Fund (and, separately, to the entire DWS Scudder fund complex), and
reviewed with DIMA the cost allocation methodology used to
determine DIMA's profitability. In analyzing DIMA's costs and profits,
the Board also reviewed the fees paid to and services provided by
DIMA and its affiliates with respect to administrative services, transfer
agent services, shareholder servicing and distribution (including fees
paid pursuant to 12b-1 plans), as well as information regarding other
possible benefits derived by DIMA and its affiliates as a result of
DIMA's relationship with the Fund. As part of this review, the Board
considered information provided by an independent accounting firm
engaged to review DIMA's cost allocation methodology and
calculations. The Board concluded that the Fund's investment
management fee schedule represented reasonable compensation in
light of the costs incurred by DIMA and its affiliates in providing
services to the Fund. The Board also reviewed information regarding
the profitability of certain similar investment management firms. The
Board noted that while information regarding the profitability of such
firms is limited (and in some cases is not necessarily prepared on a
comparable basis), DIMA and its affiliates' overall profitability with
respect to the DWS Scudder fund complex (after taking into account
distribution and other services provided to the funds by DIMA and its
affiliates) was lower than the overall profitability levels of many
comparable firms for which such data was available.

The practices of DIMA regarding the selection and compensation of
brokers and dealers executing portfolio transactions for the Fund.The Board considered that a portion of the Fund's brokerage may be
allocated to affiliates of DIMA, subject to compliance with applicable
SEC rules. The Board also considered that, subject to ongoing review
by the Board, a limited portion of the Fund's brokerage may be
allocated to brokers who acquire (and provide to DIMA and its
affiliates) research services from third parties that are generally useful
to DIMA and its affiliates in managing client portfolios. The Board
indicated that it would continue to monitor the allocation of the Fund's
brokerage to ensure that the principle of "best price and execution"
remains paramount in the portfolio trading process.

DIMA's commitment to and record of compliance, including its
written compliance policies and procedures.In this regard, the Board
considered DIMA's commitment to indemnify the Fund against any
costs and liabilities related to lawsuits or regulatory actions arising
from allegations regarding market timing, revenue sharing, fund
valuation or other subjects arising from or relating to pending
regulatory inquiries. The Board also considered the significant attention
and resources dedicated by DIMA to documenting and enhancing its
compliance processes in recent years. The Board noted in particular
(i) the experience and seniority of DIMA's chief compliance officer;
(ii) the large number of compliance personnel who report to DIMA's
chief compliance officer; and (iii) the substantial commitment of
resources by DIMA and its affiliates to compliance matters.

Deutsche Bank's commitment to its US mutual fund business.The
Board considered recent and ongoing efforts by Deutsche Bank to
restructure its US mutual fund business to improve efficiency and
competitiveness and to reduce compliance and operational risk. The
Board considered assurances received from Deutsche Bank that it
would commit the resources necessary to maintain high-quality
services to the Fund and its shareholders. The Board also considered
Deutsche Bank's strategic plans for its US mutual fund business, the
potential benefits to Fund shareholders and Deutsche Bank's
management of one of Europe's most successful fund groups.

Based on all of the foregoing, the Board determined to continue the
Fund's current investment management agreement, and concluded that
the continuation of such agreement was in the best interests of the
Fund's shareholders.

In reaching this conclusion the Board did not give particular weight to any
single factor identified above. The Board considered these factors over the
course of numerous meetings, many of which were in executive session
with only the Independent Trustees and their counsel present. It is
possible that individual Trustees may have weighed these factors
differently in reaching their individual decisions to approve the
continuation of the current agreement.

Summary of Management Fee Evaluation
by Independent Fee Consultant

October 26, 2007

Pursuant to an Order entered into by Deutsche Investment Management
Americas and affiliates (collectively, "DeAM") with the Attorney General
of New York, I, Thomas H. Mack, have been appointed the Independent
Fee Consultant for the DWS Scudder Funds. My duties include preparing
an annual written evaluation of the management fees DeAM charges the
Funds, considering among other factors the management fees charged by
other mutual fund companies for like services, management fees DeAM
charges other clients for like services, DeAM's costs of supplying services
under the management agreements and related profit margins, possible
economies of scale if a Fund grows larger, and the nature and quality of
DeAM's services, including fund performance. This report summarizes my
evaluation for 2007, including my qualifications, the evaluation process for
each of the DWS Scudder Funds, consideration of certain complex-level
factors, and my conclusions.

Qualifications

For more than 30 years I have served in various professional capacities
within the investment management business. I have held investment
analysis and advisory positions, including securities analyst, portfolio
strategist and director of investment policy with a large investment firm. I
have also performed business management functions, including business
development, financial management and marketing research and analysis.

Since 1991, I have been an independent consultant within the asset
management industry. I have provided services to over 125 client
organizations, including investment managers, mutual fund boards,
product distributors and related organizations. Over the past several years
I have completed a number of assignments for mutual fund boards,
specifically including assisting boards with management contract renewal.

I hold a Master of Business Administration degree, with highest honors,
from Harvard University; and Master of Science and Bachelor of Science
(highest honors) degrees from the University of California at Berkeley. I
am an independent director and audit committee financial expert for two
closed-end mutual funds, serve on the board of directors of a private
market research company, and have served in various leadership and
financial oversight capacities with non-profit organizations.

Evaluation of Fees for each DWS Scudder Fund

My work focused primarily on evaluating, fund-by-fund, the fees charged
to each of the 136 Fund portfolios in the DWS Scudder Fund family. For
each Fund, I considered each of the key factors mentioned above, as well
as any other relevant information. In doing so I worked closely with the
Funds' Independent Directors in their annual contract renewal process, as
well as in their approval of contracts for several new funds (documented
separately).

In evaluating each Fund's fees, I reviewed comprehensive materials
provided by or on behalf of DeAM, including expense information
prepared by Lipper Analytical, comparative performance information,
profitability data, manager histories, and other materials. I also accessed
certain additional information from the Lipper, Strategic Insight, and
Morningstar databases and drew on my industry knowledge and
experience.

To facilitate evaluating this considerable body of information, I prepared
for each Fund a document summarizing the key data elements in each
area as well as additional analytics discussed below. This made it possible
to consider each key data element in the context of the others.

In the course of contract renewal, DeAM agreed to implement a number
of fee and expense adjustments requested by the Independent Directors
which will favorably impact future fees and expenses, and my evaluation
includes the effects of these changes.

Fees and Expenses Compared with Other Funds

The competitive fee and expense evaluation for each fund focused on two
primary comparisons:

The Fund's contractual management fee (the advisory fee plus the
administration fee where applicable) compared with those of a group of
typically 12-15 funds in the same Lipper investment category (e.g.
Large Capitalization Growth) having similar distribution arrangements
and being of similar size.

The Fund's total expenses compared with a broader universe of funds
from the same Lipper investment category and having similar
distribution arrangements.

These two comparisons provide a view of not only the level of the fee
compared with funds of similar scale but also the total expense the Fund
bears for all the services it receives, in comparison with the investment
choices available in the Fund's investment category and distribution
channel. The principal figure-of-merit used in these comparisons was the
subject Fund's percentile ranking against peers.

DeAM's Fees for Similar Services to Others

DeAM provided management fee schedules for all of its US domiciled
fund and non-fund investment management accounts in any of the
investment categories where there is a DWS Scudder Fund. These similar
products included the other DWS Scudder Funds, non-fund pooled
accounts, institutional accounts and sub-advisory accounts. Using this
information, I calculated for each Fund the fee that would be charged to
each similar product, at the subject Fund's asset level.

Evaluating information regarding non-fund products is difficult because
there are varying levels of services required for different types of
accounts, with mutual funds generally requiring considerably more
regulatory and administrative types of service as well as having more
frequent cash flows than other types of accounts. Also, while mutual fund
fees for similar fund products can be expected to be similar, there will be
some differences due to different pricing conditions in different
distribution channels (e.g. retail funds versus those used in variable
insurance products), differences in underlying investment processes and
other factors.

Costs and Profit Margins

DeAM provided a detailed profitability analysis for each Fund. After
making some adjustments so that the presentation would be more
comparable to the available industry figures, I reviewed profit margins
from investment management alone, from investment management plus
other fund services (excluding distribution) provided to the Funds by
DeAM (principally shareholder services), and DeAM profits from all
sources, including distribution. A later section comments on overall
profitability.

Economies of Scale

Economies of scale  an expected decline in management cost per dollar
of fund assets as fund assets grow  are very rarely quantified and
documented because of inherent difficulties in collecting and analyzing
relevant data. However, in virtually every investment category that I
reviewed, larger funds tend to have lower fees and lower total expenses
than smaller funds. To see how each DWS Scudder Fund compares with
this industry observation, I reviewed:

The trend in Fund assets over the last five years and the accompanying
trend in total expenses. This shows if the Fund has grown and, if so,
whether total expense (management fees as well as other expenses)
have declined as a percent of assets.

Whether the Fund has break-points in its management fee schedule,
the extent of the fee reduction built into the schedule and the asset
levels where the breaks take effect, and in the case of a sub-advised
Fund how the Fund's break-points compare with those of the
sub-advisory fee schedule.

How the Fund's contractual fee schedule compares with trends in the
industry data. To accomplish this, I constructed a chart showing how
actual latest-fiscal-year contractual fees of the Fund and of other similar
funds relate to average fund assets, with the subject Fund's contractual
fee schedule superimposed.

Quality of Service  Performance

The quality-of-service evaluation focused on investment performance,
which is the principal result of the investment management service. Each
Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as
applicable, and compared with that of other funds in the same investment
category and with a suitable market index.

In addition, I calculated and reviewed risk-adjusted returns relative to an
index of similar mutual funds' returns and a suitable market index. The
risk-adjusted returns analysis provides a way of determining the extent to
which the Fund's return comparisons are mainly the product of investment
value-added (or lack thereof) or alternatively taking considerably more or
less risk than is typical in its investment category.

I also received and considered the history of portfolio manager changes
for each Fund, as this provided an important context for evaluating the
performance results.

Complex-Level Considerations

While this evaluation was conducted mainly at the individual fund level,
there are some issues relating to the reasonableness of fees that can
alternatively be considered across the whole fund complex:

I reviewed DeAM's profitability analysis for all DWS Scudder funds,
with a view toward determining if the allocation procedures used were
reasonable and how profit levels compared with public data for other
investment managers.

I considered whether DeAM and affiliates receive any significant
ancillary or "fall-out" benefits that should be considered in interpreting
the direct profitability results. These would be situations where serving
as the investment manager of the Funds is beneficial to another part of
the Deutsche Bank organization.

I considered how aggregated DWS Scudder Fund expenses had varied
over the years, by asset class and in the context of trends in asset
levels.

I reviewed the structure of the DeAM organization, trends in staffing
levels, and information on compensation of investment management
and other professionals compared with industry data.

Findings

Based on the process and analysis discussed above, which included
reviewing a wide range of information from management and external
data sources and considering among other factors the fees DeAM
charges other clients, the fees charged by other fund managers, DeAM's
costs and profits associated with managing the Funds, economies of
scale, possible fall-out benefits, and the nature and quality of services
provided, in my opinion the management fees charged the DWS Scudder
Funds are reasonable.

da_m0Thomas H. Mack

Account Management Resources

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Privacy Statement

This privacy statement is issued by DWS Scudder Distributors, Inc.,
Deutsche Investment Management Americas Inc., DeAM Investor
Services, Inc., DWS Trust Company and the DWS Funds.

We never sell customer lists or individual client information. We consider
privacy fundamental to our client relationships and adhere to the
policies and practices described below to protect current and former
clients' information.Internal policies are in place to protect confidentiality,
while allowing client needs to be served. Only individuals who need to do
so in carrying out their job responsibilities may access client information.
We maintain physical, electronic and procedural safeguards that comply
with federal and state standards to protect confidentiality. These
safeguards extend to all forms of interaction with us, including the
Internet.

In the normal course of business, clients give us nonpublic personal
information on applications and other forms, on our Web sites, and
through transactions with us or our affiliates. Examples of the nonpublic
personal information collected are name, address, Social Security number
and transaction and balance information. To be able to serve our clients,
certain of this client information is shared with affiliated and nonaffiliated
third-party service providers such as transfer agents, custodians, and
broker-dealers to assist us in processing transactions and servicing your
account with us. In addition, we may disclose all of the information we
collect to companies that perform marketing services on our behalf or
to other financial institutions with which we have joint marketing
agreements. The organizations described above that receive client
information may only use it for the purpose designated by the DWS
Scudder Companies listed in the first paragraph of this Privacy Statement.

We may also disclose nonpublic personal information about you to other
parties as required or permitted by law. For example, we are required or
we may provide information to government entities or regulatory bodies in
response to requests for information or subpoenas, to private litigants in
certain circumstances, to law enforcement authorities, or any time we
believe it necessary to protect the firm.

Questions on this policy may be sent to:

DWS Scudder  
Attention: Correspondence  Chicago
P.O. Box 219415
Kansas City, MO  64121-9415

September 2007

da_backcover0



ITEM 2.
        CODE OF ETHICSNot applicable.ITEM 3.
        AUDIT COMMITTEE FINANCIAL EXPERTNot applicable.ITEM 4.
        PRINCIPAL ACCOUNTANT FEES AND SERVICESNot applicable.




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




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




ITEM 10.
        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSThe Committee on Independent Trustees/Directors selects and nominates Independent Trustees/Directors. Fund shareholders may submit nominees that will be considered by the committee when a Board vacancy occurs. Submissions should be mailed to: c/o Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33910.ITEM 11.
        CONTROLS AND PROCEDURES(a)        The Chief Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.(b)        There have been no changes in the registrant's internal control over financial reporting that occurred during the registrant's last half-year (the registrant's second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal controls over financial reporting.ITEM 12.
        EXHIBITS








(a)(1)   Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.(b)       Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.










Form N-CSRS Item F



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



Registrant:
        Daily Assets Fund Institutional, a series of DWS Institutional Funds




By:
        /s/Michael G. Clark


Michael G. Clark


President



Date:
        February 29, 2008






Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



Registrant:
        Daily Assets Fund Institutional, a series of DWS Institutional Funds




By:
        /s/Michael G. Clark


Michael G. Clark


President



Date:
        February 29, 2008






By:
        /s/Paul Schubert


Paul Schubert


Chief Financial Officer and Treasurer



Date:
        February 29, 2008