UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549  FORM N-CSR  Investment Company Act file number
        811-04760
  DWS Advisor Funds (Exact Name of Registrant as Specified in Charter)  345 Park Avenue New York, NY 10154-0004 (Address of principal executive offices)             (Zip code)  Registrants Telephone Number, including Area Code:(212) 454-7190  Paul Schubert 345 Park Avenue New York, NY 10154-0004 (Name and Address of Agent for Service)  Date of fiscal year end:
        12/31
  Date of reporting period:
        12/31/08
   ITEM 1.REPORT TO STOCKHOLDERS




NY Tax Free Money Fund

Investment Class

Tax Free Money Fund Investment

Annual Report to
Shareholders

December 31, 2008





Contents

|3Portfolio Management
Review
8Information About Each
Fund's Expenses
NY Tax Free Money Fund
11Portfolio Summary
13Investment Portfolio
17Financial Statements
21Financial Highlights
Tax Free Money Fund Investment
22Portfolio Summary
24Investment Portfolio
29Financial Statements
33Financial Highlights
35Notes to Financial
Statements
42Report of Independent
Registered Public
Accounting Firm
43Tax Information
44Investment Management
Agreement Approval
54Summary of Management
Fee Evaluation by
Independent Fee Consultant
59Summary of Administrative
Fee Evaluation by
Independent Fee Consultant
60Board Members and
Officers
65Account Management
Resources
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This report must be preceded or accompanied by a prospectus. We advise you to
consider the funds' objectives, risks, charges and expenses carefully before
investing. The prospectus contains this and other important information about
the funds. Please read the prospectus carefully before you invest.

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

DWS Investments is part of Deutsche Bank's Asset Management division and, within the
US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank
Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust
Company.

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

Portfolio Management Review

Tax Free Funds: A Team Approach to Investing

Deutsche Investment Management Americas Inc. (``DIMA'' or the
``Advisor''), which is part of Deutsche Asset Management, is the
investment advisor for NY Tax Free Money Fund and Tax Free Money Fund
Investment, each a series of DWS Advisor Funds (the ``Trust''). DIMA and
its predecessors have more than 80 years of experience managing mutual
funds, and DIMA provides a full range of investment advisory services to
institutional and retail clients.

Deutsche Asset Management is a global asset management organization
that offers a wide range of investing expertise and resources. This
well-resourced global investment platform brings together a wide variety
of experience and investment insight across industries, regions, asset
classes and investing styles.

DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG.
Deutsche Bank AG is a major global banking institution that is engaged in
a wide range of financial services, including investment management,
mutual funds, retail, private and commercial banking, investment banking
and insurance.

Portfolio Management Team

A group of investment professionals is responsible for the day-to-day
management of each fund. These investment professionals have a broad
range of experience managing money market funds.

In the following interview, the fund's portfolio management team
discusses the market environment and the team's approach to
managing the funds during the most recent annual period ended
December 31, 2008.

The views expressed in the following discussion reflect those of the portfolio management
team only through the end of the period of the report as stated on the cover. The
management team's views are subject to change at any time based on market and other
conditions and should not be construed as a recommendation. Past performance is no
guarantee of future results. Current and future portfolio holdings are subject to risk.

Q: Will you discuss the market environment for the funds during
the most recent annual period?

A:Over the past 12 months we witnessed unprecedented events
in the money markets as well as in financial markets worldwide.
The massive credit crunch that originated with problems in the US
subprime mortgage market as well as securitized mortgages
eventually brought down several major financial firms and
transformed Wall Street. In the general "flight to quality" that
ensued  amid a market atmosphere of heightened uncertainty
over perceived credit quality  demand for short-term Treasury
securities reached overwhelming levels at several points during
2008; investors prized safety over all other considerations,
including yield.1 In response to a freeze-up in money market
liquidity, the US Federal Reserve Board (the Fed) created new
lending facilities for commercial paper, asset-backed commercial
paper and the money markets.2 By the end of the fourth quarter,
some degree of normalcy seemed to have been restored to the
short-term credit markets in response to government actions.
However, many investors clung to a flight-to-quality stance in light
of rising unemployment, trouble for US automakers, the need for
more Wall Street bailouts, and concern that the recession and
problems in the housing market could go on for some time. By
year end the Fed had reduced short-term interest rates to a target
between 0% and 0.25%, saying that it would now expand its
balance sheet in an attempt to stimulate the financial markets.

As of December 31, 2008, the three-month LIBOR, an industry
standard for measuring three-month taxable money market rates,
stood at 1.43%, compared with 4.70% as of December 31, 2007.3

Performance is historical and does not guarantee future results. Current performance
may be lower or higher than the performance data quoted.

|7-Day Current Yield  NY Tax Free Money Fund  Investment Class
|---------------------------------------------------------------
|December 31, 2008                                              
|December 31, 2007                                              

|7-Day Current Yield  Tax Free Money Fund Investment  Premier
Shares
|---------------------------------------------------------------------
|December 31, 2008                                                    
|December 31, 2007                                                    

|7-Day Current Yield  Tax Free Money Fund Investment  Institutional
Shares
|---------------------------------------------------------------------------
|December 31, 2008                                                          
|December 31, 2007                                                          

Yields are historical, will fluctuate and do not guarantee future performance. The
7-day current yield refers to the income paid by the portfolio over a 7-day period
expressed as an annual percentage rate of the fund's shares outstanding. Please call
the Service Center at (800) 730-1313 for the product's most recent month-end
performance.

Q: What has been the strategy for the funds?

A:During a difficult period for the credit markets, we sought to
balance higher yield with top quality by maintaining a strong
position in floating-rate securities as we took advantage of
comparatively higher floating-rate interest coupons. The interest
rate of floating-rate securities adjusts periodically based on
indices such as the Securities Industry and Financial Market
Association Index of Variable Rate Demand Notes.4 Because the
interest rates of these instruments adjust as market conditions
change, they provide flexibility in an uncertain interest rate
environment.

In addition, we took a cautious approach in extending maturity. In
part, this was because of problems within the "monoline"
insurance industry.5 Beginning in 2007, the AAA rating for a
number of monoline municipal insurers had come under pressure
when it came to light that several of these companies had
incurred significant losses on their other major line of business 
insurance for complex structured-mortgage securities, such as
collateralized debt obligations. Early on, our policy was to look
beyond insured-AAA ratings, examine the underlying
creditworthiness of each issue closely, and choose what we
consider to be safe and highly liquid securities.

Regarding New York's finances, we will continue to monitor the
situation closely in light of the fact that the state and city will not
be receiving the accustomed level of revenue from Wall Street
firms going forward.

Q: What detracted from performance during the period?

A:The types of securities in which the funds were investing
tended to have lower yields than issues carrying more risk. We
preferred to be cautious during this time of significant market
turbulence. In the end this cost the funds some yield, but we
believe that this represented a prudent approach to preserving
principal.

Q: Will you describe your investment philosophy?

A:We continue to insist on the highest credit quality within the
funds. We continue to apply a careful approach to investing on
behalf of the funds and to seek competitive tax-free yields for
shareholders.

Information About Each Fund's Expenses

As an investor, 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 each 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, Tax Free Money Fund Investment
limited these expenses for the Premier Shares; had it not done so,
expenses would have been higher. The example in the table is based on
an investment of $1,000 invested at the beginning of the six-month period
and held for the entire period (July 1, 2008 to December 31, 2008).

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

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

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

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

NY Tax Free Money Fund

|Expenses and Value of a $1,000 Investmentfor the six months ended December 31, 2008
|-----------------------------------------------------------------------------------
|Actual Fund Return                                                                 
|Beginning Account Value 7/1/08                                                     
|Ending Account Value 12/31/08                                                      
|Expenses Paid per $1,000*                                                          
|Hypothetical 5% Fund Return                                                        
|Beginning Account Value 7/1/08                                                     
|Ending Account Value 12/31/08                                                      
|Expenses Paid per $1,000*                                                          

|Annualized Expense Ratio | Investment
Class
|------------------------ | ----------------
|NY Tax Free Money Fund   | .75%            

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

Tax Free Money Fund Investment

|Expenses and Value of a $1,000 Investmentfor the six months ended December 31, 2008 | Premier
Shares   | Institutional
Shares*
|----------------------------------------------------------------------------------- | ---------------- | ---------------------
|Actual Fund Return                                                                  |                  |                      
|Beginning Account Value 7/1/08                                                      | $       1,000.00 | $       1,000.00     
|Ending Account Value 12/31/08                                                       | $       1,007.60 | $       1,000.60     
|Expenses Paid per $1,000**                                                          | $       3.89     | $       1.27         
|Hypothetical 5% Fund Return                                                         | Premier
Class    | Institutional
Shares 
|Beginning Account Value 7/1/08                                                      | $       1,000.00 | $       1,000.00     
|Ending Account Value 12/31/08                                                       | $       1,021.27 | $       1,020.46     
|Expenses Paid per $1,000**                                                          | $       3.91     | $       4.72         

|Annualized Expense Ratio       | Premier
Shares | Institutional
Shares
|------------------------------ | -------------- | --------------------
|Tax Free Money Fund Investment | .77%           | .93%                

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

Portfolio Summary

NY Tax Free Money Fund

|Asset Allocation(As a % of Investment Portfolio)           | 12/31/08 | 12/31/07
|---------------------------------------------------------- | -------- | --------
|                                                           |          |         
|Municipal Investments
Municipal Variable Rate Demand Notes | 84%      | 87%     
|Municipal Bonds and Notes                                  | 16%      | 13%     
|                                                           | 100%     | 100%    

|Weighted Average Maturity                            |         |        
|---------------------------------------------------- | ------- | -------
|                                                     |         |        
|NY Tax Free Money Fund                               | 22 days | 19 days
|iMoneyNet State Specific Retail Money Funds Average* | 30 days | 28 days

Asset allocation and weighted average maturity are subject to change.

For more complete details about the Fund's holdings, see page 13. A quarterly Fact
Sheet is available upon request. Information concerning portfolio holdings of the Fund
is posted twice each month to www.dws-investments.com. Portfolio holdings as of
the 15th day of each month are posted on or after month-end and Portfolio holdings
as of each month-end are posted on or after the 14th day of the following month. More
frequent posting of portfolio holdings information may be made from time to time on
www.dws-investments.com. Please see the Account Management Resources section for
more 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, 2008

NY Tax Free Money Fund

|                                                                                                                                                                      | Principal
Amount ($) | Value ($) 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ----------
|                                                                                                                                                                      |                     
|Municipal Investments 99.5%                                                                                                                                          
|New York 98.7%                                                                                                                                                       
|Albany County, NY, Airport Authority Revenue, Series A,
AMT, 1.35%*, 12/15/2023, Bank of America NA (a)                                                               | 970,000              | 970,000   
|Albany, NY, Industrial Development Agency, Civic Facility
Revenue, Albany College of Pharmacy, Series A, 1.1%*,
7/1/2038, TD Bank NA (a)                              | 7,330,000            | 7,330,000 
|Bethlehem, NY, Industrial Development Agency Housing
Revenue, 467 Delaware Ave. LLC Project, Series A, AMT,
1.25%*, 9/1/2033, Hudson River Bank & Trust Co. (a)       | 10,470,000           | 10,470,000
|Cohoes, NY, Industrial Development Agency, Urban Cultural
Park Facility Revenue, Eddy Cohoes Project, 1.0%*,
12/1/2033, Bank of America NA (a)                        | 7,950,000            | 7,950,000 
|Commack, NY, Union Free School District, Tax Anticipation
Notes, 2.75%, 6/30/2009                                                                                     | 5,000,000            | 5,027,489 
|Hempstead, NY, Industrial Development Agency Revenue,
Series 92G, 144A, AMT, 1.76%*, 10/1/2045                                                                        | 15,345,000           | 15,345,000
|Long Island, NY, Power Authority, 0.85%, 1/13/2009                                                                                                                    | 4,000,000            | 4,000,000 
|Nassau County, NY, General Obligation, Series A,
3.25%, 1/15/2009 (b)                                                                                                 | 3,395,000            | 3,396,032 
|New York, Metropolitan Transportation, 0.7%, 1/5/2009                                                                                                                 | 5,000,000            | 5,000,000 
|New York, Metropolitan Transportation Authority Revenue,
Series E-2, 1.35%*, 11/1/2035, Fortis Bank SA (a)                                                            | 2,500,000            | 2,500,000 
|New York, Metropolitan Transportation Authority Revenue,
Dedicated Tax Fund, Series B-4, 1.6%*, 11/1/2034,
KBC Bank NV (a)                                            | 3,000,000            | 3,000,000 
|New York, Metropolitan Transportation Authority, Commuter
Facilities Revenue, Series C-1, Prerefunded, 5.375%,
7/1/2027                                               | 5,685,000            | 5,881,350 
|New York, State Dormitory Authority Revenue, Secondary
Issues, Series R-12121, 1.34%*, 3/15/2031                                                                      | 2,100,000            | 2,100,000 
|New York, State Dormitory Authority Revenues, Non-State
Supported Debt, Columbia University, Series A, 5.0%,
7/1/2009                                                 | 3,130,000            | 3,182,727 
|New York, State Dormitory Authority Revenues, Non-State
Supported Debt, Long Island University, Series A-1,
1.25%*, 9/1/2036, Allied Irish Bank PLC (a)               | 6,500,000            | 6,500,000 
|New York, State Dormitory Authority Revenues, Non-State
Supported Debt, Royal Charter Properties-East, Series A,
0.75%*, 11/15/2036                                   | 3,500,000            | 3,500,000 
|New York, State Dormitory Authority Revenues, Park Ridge
Hospital, Inc., 1.25%*, 7/1/2029, JPMorgan Chase
Bank (a)                                                    | 2,045,000            | 2,045,000 
|New York, State Dormitory Authority Revenues, State
Supported Debt, City University of NY, Series D, 1.17%*,
7/1/2031, TD Bank NA (a)                                 | 7,000,000            | 7,000,000 
|New York, State Housing Finance Agency Revenue,
100 Maiden Lane, Series A, 0.75%*, 5/15/2037                                                                          | 25,350,000           | 25,350,000
|New York, State Housing Finance Agency Revenue, Capitol
Green Apartments, Series A, AMT, 0.9%*, 5/15/2036                                                             | 7,000,000            | 7,000,000 
|New York, State Housing Finance Agency Revenue,
Helena Housing, Series A, AMT, 0.9%*, 5/15/2036                                                                       | 3,950,000            | 3,950,000 
|New York, State Housing Finance Agency Revenue,
West 38 Street, Series A, AMT, 0.85%*, 5/15/2033                                                                      | 2,300,000            | 2,300,000 
|New York, State Housing Finance Agency, Service Contract
Revenue, Series D, 0.65%*, 3/15/2026, State Street Bank
& Trust Co. (a)                                      | 700,000              | 700,000   
|New York, State Mortgage Agency Revenue, Series R-181,
144A, AMT, 1.43%*, 4/1/2032                                                                                    | 9,500,000            | 9,500,000 
|New York, State Power Authority, 1.35%, 1/8/2009                                                                                                                      | 3,500,000            | 3,500,000 
|New York, State Revenue Bonds, Series 2008-3506,
144A, 1.65%*, 4/1/2016 (b)                                                                                           | 6,185,000            | 6,185,000 
|New York, State Urban Development Corp. Revenue:                                                                                                                      |                      |           
|Series A-5, 0.95%*, 1/1/2030, TD Bank NA (a)                                                                                                                          | 2,600,000            | 2,600,000 
|Series 2008-053, 144A, 4.0%*, 3/15/2023, Dexia Credit
Local (a)                                                                                                       | 16,470,000           | 16,470,000
|Series 2008-054, 144A, 4.0%*, 3/15/2024, Dexia Credit
Local (a)                                                                                                       | 12,050,000           | 12,050,000
|New York, Triborough Bridge & Tunnel Authority Revenues,
Series B-4, 1.2%*, 1/1/2032                                                                                  | 9,435,000            | 9,435,000 
|New York, Tsasc, Inc., Series 1, Prerefunded,
6.375%, 7/15/2039                                                                                                       | 5,000,000            | 5,281,853 
|New York City, NY, Industrial Development Agency
Revenue, Empowerment Zone, Tiago, AMT, 1.32%*,
1/1/2037, ING Bank NV (a)                                             | 4,000,000            | 4,000,000 
|New York City, NY, Industrial Development Agency,
Civic Facility Revenue, Abraham Joshua Heschel Project,
1.4%*, 4/1/2032, Allied Irish Bank PLC (a)                  | 1,365,000            | 1,365,000 
|New York City, NY, Industrial Development Agency,
Civic Facility Revenue, Allen Stevenson School,
1.3%*, 12/1/2034, Allied Irish Bank PLC (a)                         | 1,055,000            | 1,055,000 
|New York City, NY, Industrial Development Agency,
Civic Facility Revenue, Jewish Board of Family Services,
0.95%*, 7/1/2025, Allied Irish Bank PLC (a)                | 6,000,000            | 6,000,000 
|New York City, NY, Industrial Development Agency,
Civic Facility Revenue, New York Law School, Series B-2,
1.05%*, 7/1/2036, Citizens Bank (a)                        | 1,650,000            | 1,650,000 
|New York City, NY, Municipal Finance Authority, Water &
Sewer Systems Revenue, Series 1289, 1.18%*,
12/15/2013                                                        | 705,000              | 705,000   
|New York City, NY, Municipal Finance Authority, Water &
Sewer Systems Revenue, Second Generation Resolution,
Series CC-2, 1.45%*, 6/15/2038                           | 1,950,000            | 1,950,000 
|New York City, NY, Municipal Water Finance Authority,
Series 3092, 144A, 1.18%*, 6/15/2010                                                                            | 4,620,000            | 4,620,000 
|New York City, NY, Municipal Water Finance Authority,
Water & Sewer Revenue, 144A:                                                                                    |                      |           
|Series 1249, 2.25%*, 6/15/2033                                                                                                                                        | 3,750,000            | 3,750,000 
|Series 1314, 2.25%*, 6/15/2039                                                                                                                                        | 5,800,000            | 5,800,000 
|New York City, NY, Transitional Finance Authority Revenue,
Series A, 144A, 1.33%*, 11/1/2030                                                                          | 1,000,000            | 1,000,000 
|New York City, NY, Transitional Finance Authority Revenue,
NYC Recovery, Series 1-1B, 0.7%*, 11/1/2022                                                                | 3,465,000            | 3,465,000 
|New York City, NY, Trust for Cultural Resource Revenue,
Lincoln Center for the Performing Arts, Series B-1,
0.65%*, 11/1/2038, US Bank NA (a)                         | 1,250,000            | 1,250,000 
|New York, NY, General Obligation:                                                                                                                                     |                      |           
|Series J-3, 0.65%*, 2/15/2016, JPMorgan Chase Bank (a)                                                                                                                | 1,600,000            | 1,600,000 
|Series A-5, 0.7%*, 8/1/2031, Bank of Nova Scotia (a)                                                                                                                  | 1,710,000            | 1,710,000 
|Series 2951, 144A, 1.18%*, 10/1/2013                                                                                                                                  | 4,465,000            | 4,465,000 
|Series 2831, 144A, 1.18%*, 1/1/2015                                                                                                                                   | 4,600,000            | 4,600,000 
|Series R-11299, 144A, 1.34%*, 2/1/2022                                                                                                                                | 4,385,000            | 4,385,000 
|Series G, 5.0%, 8/1/2009                                                                                                                                              | 10,000,000           | 10,151,409
|Series O, 5.0%, 6/1/2009                                                                                                                                              | 2,000,000            | 2,022,309 
|Onondaga County, NY, Industrial Development Agency,
Civic Facility Revenue, YMCA of Greater Syracuse,
Series A, 1.7%*, 11/1/2025, Citizens Bank NA (a)                | 2,400,000            | 2,400,000 
|Ontario County, NY, Industrial Development Agency,
Civic Facility Revenue, Greater Canandaigua Family
YMCA, 1.48%*, 10/1/2040, RBS Citizens NA (a)                    | 8,360,000            | 8,360,000 
|Otsego County, NY, Industrial Development Agency,
Civic Facility Revenue, Noonan Community Service
Corp. Project, Series A, 1.6%*, 3/1/2025, Wilber
National Bank (a) | 1,200,000            | 1,200,000 
|Port Authority of New York & New Jersey, Series R-9207,
144A, AMT, 1.43%*, 9/15/2028                                                                                  | 2,695,000            | 2,695,000 
|Tompkins County, NY, Industrial Development Agency
Revenue, Civic Facilities, Series A, 1.48%*, 12/1/2021,
Citizens Bank NA (a)                                       | 1,045,000            | 1,045,000 
|Tompkins County, NY, Industrial Development Agency
Revenue, Civic Facilities, Tomkins Cortland, 1.48%*,
1/1/2037, Citizens Bank NA (a)                                | 6,695,000            | 6,695,000 
|Ulster County, NY, Industrial Development Agency,
Civic Facility Revenue, Kingston Regional Senior
Living Corp., Series C, 1.2%*, 9/15/2037,
Sovereign Bank FSB (a)   | 8,940,000            | 8,940,000 
|                                                                                                                                                                      | 296,398,169         
|Puerto Rico 0.8%                                                                                                                                                     
|Puerto Rico, Industrial Tourist Educational, Medical &
Environmental Control Facilities, Bristol-Myers Squibb
Project, AMT, 1.3%*, 12/1/2030                          | 2,500,000            | 2,500,000 

|                                               | % of Net
Assets | Value ($)  
|---------------------------------------------- | --------------- | -----------
|                                               |                
|Total Investment Portfolio(Cost $298,898,169)+ | 99.5            | 298,898,169
|Other Assets and Liabilities, Net              | 0.5             | 1,390,530  
|Net Assets                                     | 100.0           | 300,288,699

|Insurance Coverage                 | As a % of Total
Investment Portfolio
|---------------------------------- | ------------------------------------
|Financial Security Assurance, Inc. | 3.2                                 

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

AMT: Subject to alternative minimum tax.

Prerefunded: Bonds which are prerefunded are collateralized usually by US Treasury
securities which are held in escrow and used to pay principal and interest on tax-exempt
issues and to retire the bonds in full at the earliest refunding date.

Fair Value Measurements

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements," establishes a three-tier hierarchy for measuring fair value and
requires additional disclosure about the classification of fair value measurements.

Various inputs are used in determining the value of the Fund's investments. These inputs are
summarized in three broad levels. Level 1 includes quoted prices in active markets for
identical securities. Level 2 includes other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3
includes significant unobservable inputs (including the Fund's own assumptions in
determining the fair value of investments). The inputs or methodology used for valuing
securities are not necessarily an indication of the risk associated with investing in those
securities. Securities held by a money market fund are reflected as Level 2 because the
securities are valued at amortized cost (which approximates fair value) and, accordingly, the
inputs used to determine value are not quoted prices in an active market.

The following is a summary of the inputs used as of December 31, 2008 in valuing the
Fund's investments. For information on the Fund's policy regarding the valuation of
investments, please refer to the Security Valuation section of Note A in the accompanying
Notes to the Financial Statements.

|Valuation Inputs | Investments in
Securities
|---------------- | -------------------------
|Level 1          | $                       
|Level 2          | 298,898,169              
|Level 3          |                         
|Total            | $    298,898,169         

Financial Statements

|Statement of Assets and Liabilitiesas of December 31, 2008                                                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Assets                                                                                                                                                                                                               
|Investments in securities, valued at amortized cost                                                                                                                                                                  
|Cash                                                                                                                                                                                                                 
|Receivable for investments sold                                                                                                                                                                                      
|Receivable for Fund shares sold                                                                                                                                                                                      
|Interest receivable                                                                                                                                                                                                  
|Other assets                                                                                                                                                                                                         
|Total assets                                                                                                                                                                                                         
|Liabilities                                                                                                                                                                                                          
|Distributions payable                                                                                                                                                                                                
|Payable for Fund shares redeemed                                                                                                                                                                                     
|Accrued management fee                                                                                                                                                                                               
|Other accrued expenses and payables                                                                                                                                                                                  
|Total liabilities                                                                                                                                                                                                    
|Net assets, at value                                                                                                                                                                                                 
|Net Assets Consist of                                                                                                                                                                                                
|Undistributed net investment income                                                                                                                                                                                  
|Paid-in capital                                                                                                                                                                                                      
|Net assets, at value                                                                                                                                                                                                 
|Net Asset Value                                                                                                                                                                                                      
|Investment ClassNet Asset Value,offering and redemption priceper share
($117,420,847 ÷ 117,416,220 shares of capital stock outstanding,
$.001 par value, unlimited number of shares authorized)                      
|Tax-Exempt New York Money Market FundNet Asset Value, offering and redemption priceper share
($182,867,852 ÷ 182,846,758 shares of capital stock outstanding,
$.001 par value, unlimited number of shares authorized)

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

|Statement of Operationsfor the year ended December 31, 2008    
|---------------------------------------------------------------
|Investment Income                                              
|Income:Interest                                                
|Expenses:Management fee                                        
|Administration fee                                             
|Services to shareholders                                       
|Custodian fee                                                  
|Distribution and service fees                                  
|Professional fees                                              
|Trustees' fees and expenses                                    
|Reports to shareholders                                        
|Registration fees                                              
|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  NY Tax Free Money Fund                                                     
|----------------------------------------------------------------------------------------------------------------
|                                                                                                                
|Increase (Decrease) in Net Assets                                                                               
|Operations:Net investment income                                                                                
|Net realized gain (loss)                                                                                        
|Net increase (decrease) in net assets resulting from
operations                                                 
|Distributions to shareholders from:Net investment income:Investment Class                                       
|Tax-Exempt New York Money Market Fund                                                                           
|Total distributions                                                                                             
|Fund share transactions:Investment Class
Proceeds from shares sold                                              
|Reinvestment of distributions                                                                                   
|Cost of shares redeemed                                                                                         
|Net increase (decrease) in net assets from Investment
Class share transactions                                  
|Tax-Exempt New York Money Market Fund*
Proceeds from shares sold                                                
|Net assets acquired in tax-free reorganization                                                                  
|Reinvestment of distributions                                                                                   
|Cost of shares redeemed                                                                                         
|Net increase (decrease) in net assets from Tax-Exempt
New York Money Market 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 $48,463 and $45,608,
respectively)

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

|Statement of Changes in Net Assets  NY Tax Free Money Fund(continued)                              
|----------------------------------------------------------------------------------------------------
|                                                                                                    
|Increase (Decrease) in Net Assets                                                                   
|Other Information
Investment Class                                                                  
|Shares outstanding at beginning of period                                                           
|Shares sold                                                                                         
|Shares issued to shareholders in reinvestment of
distributions                                      
|Shares redeemed                                                                                     
|Net increase (decrease) in Fund shares from
Investment Class share transactions                     
|Shares outstanding at end of period                                                                 
|Tax-Exempt New York Money Market Fund*                                                              
|Shares outstanding at beginning of period                                                           
|Shares sold                                                                                         
|Shares issued in tax-free reorganization                                                            
|Shares issued to shareholders in reinvestment of
distributions                                      
|Shares redeemed                                                                                     
|Net increase (decrease) in Fund shares from
Tax-Exempt New York Money Market Fund
share transactions
|Shares outstanding at end of period                                                                 

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

Financial Highlights

|NY Tax Free Money Fund
Investment Class                                                                         
|----------------------------------------------------------------------------------------------------------------
|Years Ended December 31,                                                                                        
|Selected Per Share Data                                                                                         
|Net asset value, beginning of period                                                                            
|Income from investment operations:
Net investment income                                                        
|Net realized and unrealized gain (loss)a                                                                        
|Total from investment operations                                                                                
|Less distributions from:
Net investment income                                                                  
|Net asset value, end of period                                                                                  
|Total Return (%)                                                                                                
|Ratios to Average Net Assets and Supplemental Data                                                              
|Net assets, end of period ($ millions)                                                                          
|Ratio of expenses before expense reductions (%)                                                                 
|Ratio of expenses after expense reductions (%)                                                                  
|Ratio of net investment income (%)                                                                              
|aAmount is less than $.0005 per share.bTotal return would have been lower had certain expenses not been reduced.

Portfolio Summary

Tax Free Money Fund Investment

|Asset Allocation(As a % of Investment Portfolio)           | 12/31/08 | 12/31/07
|---------------------------------------------------------- | -------- | --------
|                                                           |          |         
|Municipal Investments
Municipal Variable Rate Demand Notes | 81%      | 83%     
|Municipal Bonds and Notes                                  | 19%      | 17%     
|                                                           | 100%     | 100%    

|Weighted Average Maturity                               |         |        
|------------------------------------------------------- | ------- | -------
|                                                        |         |        
|Tax Free Money Fund Investment                          | 25 days | 24 days
|iMoneyNet National Retail Tax Free Money Funds Average* | 28 days | 31 days

Asset allocation and weighted average maturity are subject to change.

For more complete details about the Fund's holdings, see page 24. A quarterly Fact
Sheet is available upon request. Information concerning portfolio holdings of the Fund
is posted twice each month to www.dws-investments.com. Portfolio holdings as of the
15th day of each month are posted on or after month-end and Portfolio holdings as of
each month-end are posted on or after the 14th day of the following month. More
frequent posting of portfolio holdings information may be made from time to time on
www.dws-investments.com. Please see the Account Management Resources section for
more contact information.

Following the Funds' 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, 2008

Tax Free Money Fund Investment

|                                                                                                                                                               | Principal
Amount ($) | Value ($)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ---------
|                                                                                                                                                               |                     
|Municipal Investments 99.7%                                                                                                                                   
|Arizona 2.0%                                                                                                                                                  
|Apache County, AZ, Industrial Development Authority
Revenue, Tucson Electric Power Co., Series 83C,
0.75%*, 12/15/2018, Bank of New York Mellon (a)            | 2,650,000            | 2,650,000
|California 6.5%                                                                                                                                               
|California, Las Virgenes Unified School District,
Series 2008-3044X, 144A, 1.65%*, 8/1/2031 (b)                                                                | 4,000,000            | 4,000,000
|Orange County, CA, 1.6%, 1/6/2009                                                                                                                              | 4,790,000            | 4,790,000
|                                                                                                                                                               | 8,790,000           
|Colorado 2.9%                                                                                                                                                 
|Colorado, Educational & Cultural Facilities Authority
Revenue, Trinity School Project, 1.25%*, 9/1/2026,
Branch Banking & Trust (a)                            | 1,700,000            | 1,700,000
|Colorado, Postsecondary Educational Facilities Authority
Revenue, Mullen High School Project, 1.23%*, 8/1/2017,
Wells Fargo Bank NA (a)                        | 2,230,000            | 2,230,000
|                                                                                                                                                               | 3,930,000           
|Delaware 2.0%                                                                                                                                                 
|Delaware, BB&T Municipal Trust, Series 5000, 144A,
1.4%*, 10/1/2028, Rabobank International (a)                                                                | 2,776,271            | 2,776,271
|Florida 8.8%                                                                                                                                                  
|Highlands County, FL, Health Facilities Authority Revenue,
Adventist Health Systems, Series A, 1.9%*, 11/15/2032,
SunTrust Bank (a)                            | 1,650,000            | 1,650,000
|Lee County, FL, Industrial Development Authority, Health
Care Facilities Revenue, Hope Hospice Project, 0.85%*,
10/1/2027, Northern Trust Co. (a)              | 2,500,000            | 2,500,000
|Palm Beach County, FL, Jewish Community Campus Project
Revenue, 0.89%*, 3/1/2030, Northern Trust Co. (a)                                                       | 1,110,000            | 1,110,000
|Tampa, FL, Health Care Facilities Revenue, LifeLink
Foundation, Inc. Project, 1.27%*, 8/1/2022,
SunTrust Bank (a)                                              | 6,700,000            | 6,700,000
|                                                                                                                                                               | 11,960,000          
|Georgia 0.8%                                                                                                                                                  
|Fulton County, GA, Development Authority Revenue,
Georgia Tech Facilities Project, Series A, 0.65%*,
5/1/2037, SunTrust Bank (a)                               | 1,125,000            | 1,125,000
|Illinois 6.9%                                                                                                                                                 
|Channahon, IL, Morris Hospital Revenue, Series A,
1.0%*, 12/1/2023, US Bank NA (a)                                                                             | 1,400,000            | 1,400,000
|Chicago, IL, Metropolitan Water Reclamation District,
Greater Chicago, Series 2008-052, 144A,
4.0%*, 12/1/2035                                                 | 5,010,000            | 5,010,000
|Illinois, Development Finance Authority Revenue, Regional
Organization Bank of Illinois Project, 1.65%*, 12/1/2020,
Bank One NA (a)                            | 3,000,000            | 3,000,000
|                                                                                                                                                               | 9,410,000           
|Indiana 2.0%                                                                                                                                                  
|Indiana, State Educational Facilities Authority Revenue,
St. Mary Woods Project, 1.3%*, 4/1/2024,
Bank One NA (a)                                              | 2,700,000            | 2,700,000
|Iowa 0.7%                                                                                                                                                     
|Iowa, Finance Authority Small Business Development
Revenue, Corporate Center Associates LP Project,
1.8%*, 9/1/2015, Wells Fargo Bank NA (a)                   | 1,000,000            | 1,000,000
|Kentucky 6.9%                                                                                                                                                 
|Jeffersontown, KY, Lease Program Revenue,
Kentucky League of Cities Funding Trust, 0.85%*,
3/1/2030, US Bank NA (a)                                            | 3,415,000            | 3,415,000
|Lexington-Fayette Urban County, KY, Industrial
Development Revenue, YMCA Central Kentucky, Inc.
Project, 0.8%*, 7/1/2019, Bank One Kentucky NA (a)             | 1,365,000            | 1,365,000
|Mason County, KY, Pollution Control Revenue,
East Kentucky Power Cooperative, Series B-3,
1.5%*, 10/15/2014                                                    | 4,550,000            | 4,550,000
|                                                                                                                                                               | 9,330,000           
|Louisiana 1.0%                                                                                                                                                
|Louisiana, BB&T Municipal Trust, Series 4000, 144A,
1.33%*, 7/1/2018, Branch Banking & Trust (a)                                                               | 1,360,000            | 1,360,000
|Michigan 4.3%                                                                                                                                                 
|Michigan, Higher Education Facilities Authority Revenue,
Limited Obligation, Spring Arbor University, 1.25%*,
11/1/2030, Comerica Bank (a)                     | 780,000              | 780,000  
|Michigan, Kent Hospital Finance Authority Revenue,
Spectrum Health System, Series C, 0.93%*, 1/15/2026,
Bank of New York (a)                                   | 5,000,000            | 5,000,000
|                                                                                                                                                               | 5,780,000           
|Missouri 2.2%                                                                                                                                                 
|Missouri, State Health & Educational Facilities Authority
Revenue, Lutheran Senior Services Project, 1.1%*,
2/1/2039, US Bank NA (a)                           | 3,000,000            | 3,000,000
|New Jersey 2.4%                                                                                                                                               
|Oradell, NJ, Bond Anticipation Notes, 2.75%, 6/12/2009                                                                                                         | 3,292,000            | 3,302,739
|Pennsylvania 8.2%                                                                                                                                             
|Allegheny County, PA, Hospital Development Authority
Revenue, UPMC Senior Living Corp., 1.2%*, 7/15/2028                                                       | 835,000              | 835,000  
|Cumberland County, PA, Municipal Authority Revenue,
Asbury Pennsylvania Obligated Group, 1.2%*, 1/1/2043,
KBC Bank NV (a)                                      | 4,700,000            | 4,700,000
|Delaware Valley, PA, Regional Finance Authority,
Local Government Revenue, Series B, 0.6%*, 6/1/2042,
Bayerische Landesbank (a)                                | 4,115,000            | 4,115,000
|Montgomery County, PA, Redevelopment Authority,
Muli-Family Housing Revenue, Forge Gate Apartments
Project, Series A, 1.27%*, 8/15/2031                        | 1,410,000            | 1,410,000
|                                                                                                                                                               | 11,060,000          
|South Carolina 1.0%                                                                                                                                           
|South Carolina, Macon Trust, Series 2007-303, 144A,
1.3%*, 2/1/2012, Bank of America NA (a)                                                                    | 1,300,000            | 1,300,000
|Tennessee 0.9%                                                                                                                                                
|Clarksville, TN, Public Building Authority Revenue,
Murfreesboro Lane, 1.27%*, 7/1/2024, SunTrust Bank (a)                                                     | 1,285,000            | 1,285,000
|Texas 24.0%                                                                                                                                                   
|Dallas, TX, Performing Arts Cultural Facilities Corp.,
Dallas Arts Center Foundation, Inc. Project, Series B,
1.1%*, 9/1/2041, JPMorgan Chase Bank (a)         | 3,000,000            | 3,000,000
|Galveston County, TX, General Obligation,
Series R-11275WF, 144A, 2.3%*, 2/1/2028                                                                              | 6,115,000            | 6,115,000
|Harris County, TX, Cultural Education Facilities Finance Corp.
Revenue, YMCA of the Greater Houston, Series B,
0.75%*, 6/1/2038, Allied Irish Bank PLC (a)     | 2,250,000            | 2,250,000
|Houston, TX, Utility Systems Revenue, Series B1, 1.5%*,
5/15/2034, Bank of America NA, Bank of New York,
Dexia Credit Local, State Street Bank & Trust Co. (a) | 1,000,000            | 1,000,000
|Longview, TX, Independent School District, Series 3059,
144A, 1.25%*, 2/15/2016                                                                                | 2,290,000            | 2,290,000
|North East, TX, Independent School District, Series 2355,
144A, 1.25%*, 8/1/2015                                                                               | 1,180,000            | 1,180,000
|North Texas, Tollway Authority, 0.75%, 1/15/2009                                                                                                               | 6,000,000            | 6,000,000
|Texas, A&M University Revenues, Series 944, 144A,
1.2%*, 5/15/2013                                                                                             | 1,145,000            | 1,145,000
|Texas, Solar Eclipse Funding Trust, 144A, 1.24%*, 8/1/2037                                                                                                     | 3,495,000            | 3,495,000
|Texas, State Tax & Revenue Anticipation Notes,
3.0%, 8/28/2009                                                                                                 | 6,000,000            | 6,053,353
|                                                                                                                                                               | 32,528,353          
|Vermont 4.8%                                                                                                                                                  
|Vermont, Educational & Health Buildings, Financing Agency
Revenue, Norwich University Project, 0.45%*, 9/1/2038,
Citizens Bank (a)                             | 6,500,000            | 6,500,000
|Virginia 4.5%                                                                                                                                                 
|Henrico County, VA, Economic Development Authority,
Residential Care Facility Revenue,
Westminster-Canterbury, 1.25%*, 10/1/2037,
Branch Banking & Trust (a)   | 6,150,000            | 6,150,000
|Washington 3.1%                                                                                                                                               
|King County, WA, Housing Authority Revenue, Summerfield
Apartments Project, 1.22%*, 9/1/2035, US Bank NA (a)                                                   | 1,655,000            | 1,655,000
|Seattle, WA, Water Systems Revenue, Series 2170, 144A,
1.15%*, 2/1/2031 (b)                                                                                    | 2,530,000            | 2,530,000
|                                                                                                                                                               | 4,185,000           
|Wisconsin 3.8%                                                                                                                                                
|Wisconsin, State Transportation Revenue, Series 1,
5.5%, 7/1/2009                                                                                              | 5,000,000            | 5,087,993

|                                               | % of Net
Assets | Value ($)  
|---------------------------------------------- | --------------- | -----------
|                                               |                
|Total Investment Portfolio(Cost $135,210,356)+ | 99.7            | 135,210,356
|Other Assets and Liabilities, Net              | 0.3             | 458,670    
|Net Assets                                     | 100.0           | 135,669,026

|Insurance Coverage                 | As a % of Total
Investment Portfolio
|---------------------------------- | ------------------------------------
|Financial Security Assurance, Inc. | 4.8                                 

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.

Fair Value Measurements

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements," establishes a three-tier hierarchy for measuring fair value and
requires additional disclosure about the classification of fair value measurements.

Various inputs are used in determining the value of the Fund's investments. These inputs are
summarized in three broad levels. Level 1 includes quoted prices in active markets for
identical securities. Level 2 includes other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3
includes significant unobservable inputs (including the Fund's own assumptions in
determining the fair value of investments). The inputs or methodology used for valuing
securities are not necessarily an indication of the risk associated with investing in those
securities. Securities held by a money market fund are reflected as Level 2 because the
securities are valued at amortized cost (which approximates fair value) and, accordingly, the
inputs used to determine value are not quoted prices in an active market.

The following is a summary of the inputs used as of December 31, 2008 in valuing the
Fund's investments. For information on the Fund's policy regarding the valuation of
investments, please refer to the Security Valuation section of Note A in the accompanying
Notes to the Financial Statements.

|Valuation Inputs | Investments in
Securities
|---------------- | -------------------------
|Level 1          | $                       
|Level 2          | 135,210,356              
|Level 3          |                         
|Total            | $    135,210,356         

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

Financial Statements

|Statement of Assets and Liabilitiesas of December 31, 2008                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Assets                                                                                                                                                                        
|Investments in securities, valued at amortized cost                                                                                                                           
|Cash                                                                                                                                                                          
|Receivable for investments sold                                                                                                                                               
|Interest receivable                                                                                                                                                           
|Other assets                                                                                                                                                                  
|Total assets                                                                                                                                                                  
|Liabilities                                                                                                                                                                   
|Distributions payable                                                                                                                                                         
|Accrued management fee                                                                                                                                                        
|Other accrued expenses and payables                                                                                                                                           
|Total liabilities                                                                                                                                                             
|Net assets, at value                                                                                                                                                          
|Net Assets Consist of                                                                                                                                                         
|Undistributed net investment income                                                                                                                                           
|Paid-in capital                                                                                                                                                               
|Net assets, at value                                                                                                                                                          
|Net Asset Value                                                                                                                                                               
|Premier Shares
Net Asset Value, offering and redemption priceper share
($135,664,023 ÷ 135,627,297 shares outstanding, $.001 par value,
unlimited number of shares authorized)
|Institutional Shares
Net Asset Value, offering and redemption priceper share
($5,003 ÷ 5,003 shares outstanding, $.001 par value, unlimited number of
shares authorized)      

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

|Statement of Operationsfor the year ended December 31, 2008    
|---------------------------------------------------------------
|Investment Income                                              
|Income:Interest                                                
|Expenses:Management fee                                        
|Administration fee                                             
|Services to shareholders                                       
|Custodian fee                                                  
|Distribution and service fees                                  
|Professional fees                                              
|Trustees' fees and expenses                                    
|Report to shareholders                                         
|Registration fees                                              
|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 
Tax Free Money Fund Investment                                            
|---------------------------------------------------------------------------------------------------------------
|                                                                                                               
|Increase (Decrease) in Net Assets                                                                              
|Operations:Net investment income                                                                               
|Net realized gain (loss)                                                                                       
|Net increase (decrease) in net assets resulting from
operations                                                
|Distributions to shareholders from:Net investment incomePremier Shares                                         
|Institutional Shares                                                                                           
|Total distributions                                                                                            
|Fund share transactions:Premier Shares*
Proceeds from shares sold                                              
|Reinvestment of distributions                                                                                  
|Cost of shares redeemed                                                                                        
|Net increase (decrease) in net assets from Premier
Shares transactions                                         
|Institutional Shares**
Proceeds from shares sold                                                               
|Reinvestment of distributions                                                                                  
|Net increase (decrease) in net assets from Institutional
Shares transactions                                   
|Increase (decrease) in net assets                                                                              
|Net assets at beginning of period                                                                              
|Net assets at end of period (including undistributed
net investment income of $35,808 and $3,120,
respectively)

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

|Statement of Changes in Net Assets 
Tax Free Money Fund Investment(continued)
|------------------------------------------------------------------------------
|                                                                              
|Increase (Decrease) in Net Assets                                             
|Other Information
Premier Shares*                                             
|Shares outstanding at beginning of period                                     
|Shares sold                                                                   
|Shares issued to shareholders in reinvestment of
distributions                
|Shares redeemed                                                               
|Net increase (decrease) in Fund shares from Premier
Shares transactions       
|Shares outstanding at end of period                                           
|Institutional Shares**                                                        
|Shares outstanding at beginning of period                                     
|Shares sold                                                                   
|Shares issued to shareholders in reinvestment of
distributions                
|Net increase (decrease) in Fund shares from
Institutional Shares transactions 
|Shares outstanding at end of period                                           

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

Financial Highlights

Tax Free Money Fund Investment

Premier Shares

|Years Ended December 31,                                                                                         | 2008      | 2007      | 2006      | 2005      | 2004     
|---------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                         
|Net asset value, beginning of period                                                                             | $    1.00 | $    1.00 | $    1.00 | $    1.00 | $    1.00
|Income from investment operations:
Net investment income                                                         | .016      | .029      | .027      | .017      | .005     
|Net realized and unrealized gain (loss)a                                                                         |          |          |          |          |         
|Total from investment operations                                                                                 | .016      | .029      | .027      | .017      | .005     
|Less distributions from:
Net investment income                                                                   | (.016)    | (.029)    | (.027)    | (.017)    | (.005)   
|Net asset value, end of period                                                                                   | $    1.00 | $    1.00 | $    1.00 | $    1.00 | $    1.00
|Total Return (%)b                                                                                                | 1.62      | 2.96      | 2.71      | 1.72      | .49      
|Ratios to Average Net Assets and Supplemental Data                                                              
|Net assets, end of period ($ millions)                                                                           | 136       | 116       | 110       | 174       | 135      
|Ratio of expenses before
expense reductions (%)                                                                  | .81       | .83       | .88       | .82       | .84      
|Ratio of expenses after expense
reductions (%)                                                                   | .76       | .75       | .75       | .75       | .75      
|Ratio of net investment income (%)                                                                               | 1.64      | 2.92      | 2.61      | 1.73      | .46      
|aAmount is less than $.0005 per share.bTotal return would have been lower had certain expenses not been reduced.

Tax Free Money Fund Investment

Institutional Shares

|Year Ended December 31,                                                                                                                                                           | 2008a    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------
|Selected Per Share Data                                                                                                                                                          
|Net asset value, beginning of period                                                                                                                                              | $    1.00
|Income from investment operations:
Net investment income                                                                                                                          | .001     
|Net realized and unrealized gain (loss)b                                                                                                                                          |         
|Total from investment operations                                                                                                                                                  | .001     
|Less distributions from:
Net investment income                                                                                                                                    | (.001)   
|Net asset value, end of period                                                                                                                                                    | $    1.00
|Total Return (%)                                                                                                                                                                  | .06**    
|Ratios to Average Net Assets and Supplemental Data                                                                                                                               
|Net assets, end of period ($ millions)                                                                                                                                            | .005     
|Ratio of expenses (%)                                                                                                                                                             | .93*     
|Ratio of net investment income (%)                                                                                                                                                | .42*     
|aFor the period from November 11, 2008 (commencement of operations of Institutional
Shares) to December 31, 2008.bAmount is less than $.005 per share.*Annualized**Not annualized

Notes to Financial Statements

A. Significant Accounting Policies

DWS Advisor Funds (the ``Trust'') is registered under the Investment
Company Act of 1940, as amended (the ``1940 Act''), as a Massachusetts
business trust. NY Tax Free Money Fund and Tax Free Money Fund
Investment (each a ``Fund,'' and collectively, the ``Funds'') are two of the
funds the Trust offers to investors. Each Fund is an open-end, diversified
management investment company. NY Tax Free Money Fund offers two
classes of shares: Investment Class and Tax-Exempt New York Money
Market Fund. The financial highlights for Tax-Exempt New York Money
Market Fund are provided separately and are available upon request.

Tax Free Money Fund Investment offers two classes of shares to
investors: Effective November 11, 2008, the existing shares of Tax Free
Money Fund Investment were redesignated as a separate share class
named Tax Free Money Fund Investment  Premier Shares and on
November 11, 2008, the Fund commenced offering Tax Free Money Fund
Investment  Institutional Shares.

Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on
the basis of relative net assets by the holders of all classes of shares,
except that each class bears certain expenses unique to that class such as
distribution and service fees, services to shareholders and certain other
class-specific expenses. Differences in class-level expenses may result in
payment of different per share dividends by class. All shares of the Fund
have equal rights with respect to voting subject to class-specific
arrangements.

Each 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 Funds in the preparation of their 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.

Each Fund adopted Financial Accounting Standards Board Statement of
Financial Accounting Standards No. 157, "Fair Value Measurements,"
effective at the beginning of the Fund's fiscal year. Disclosure about the
classification of fair value measurements is included at the end of each
Fund's Investment Portfolio.

Federal Income Taxes.Each 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 and tax-exempt income to its shareholders.

Each Fund has reviewed the tax positions for the open tax years as of
December 31, 2008 and has determined that no provision for income tax
is required in each 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 and Gains.Net investment income of the Fund is
declared as a daily dividend and is distributed to shareholders monthly.
The Fund may take into account capital gains and losses in its daily
dividend declarations. The Fund may also make additional distributions for
tax purposes if necessary.

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

At December 31, 2008, the Funds' components of distributable earnings
(accumulated losses) on a tax-basis are as follows:

|                                | NY Tax Free
Money Fund | Tax Free
Money Fund
Investment
|------------------------------- | ---------------------- | ------------------------------
|Undistributed tax-exempt income | $       48,463         | $       35,808                

In addition, the tax character of distributions paid to shareholders by the
Funds is summarized as follows:

|                                                                                                | Years Ended December 31,
|----------------------------------------------------------------------------------------------- | ------------------------
|                                                                                                | 2008                    
|NY Tax Free Money Fund:
Distributions from tax-exempt incomeDistributions from ordinary income* | $       4,135,770
30,910
|Tax Free Money Fund Investment
Distributions from tax-exempt income                             | $       2,778,737       

Expenses.Expenses of the Trust arising in connection with a specific fund
are allocated to that fund. Other Trust expenses which cannot be directly
attributed to a fund are apportioned among the funds in the Trust.

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

Management Agreement.Under the Investment Management
Agreement with Deutsche Investment Management Americas Inc.
("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of
Deutsche Bank AG, the Advisor directs the investments of the Funds in
accordance with their 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
Funds.

Under the Investment Management Agreement with the Advisor, Tax Free
Money Fund Investment and NY Tax Free Money Fund pay an annual
management fee of 0.15% and 0.12%, respectively, based on their
average daily net assets, computed and accrued daily and payable
monthly.

For the period from January 1, 2008 through September 30, 2009, the
Advisor has contractually agreed to waive all or a portion of its
management fee and reimburse or pay certain operating expenses for Tax
Free Money Fund Investment  Premier Shares, to the extent necessary,
to maintain the operating expenses at 0.75% of its average daily net
assets (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest).

For the period from January 1, 2008 through March 21, 2010, the Advisor
has contractually agreed to waive all or a portion of its management fee
and reimburse or pay certain operating expenses for NY Tax Free Money
Fund Investment Class, to the extent necessary, to maintain total
operating expenses at 0.75% of its average daily net assets (excluding
certain expenses such as extraordinary expenses, taxes, brokerage and
interest).

Administration Fee.Pursuant to an Administrative Services Agreement,
DIMA provides most administrative services to the Funds. For all services
provided under the Administrative Services Agreement, the Funds pay the
Advisor an annual fee ("Administration fee") of 0.10% of each Fund's
average daily net assets, computed and accrued daily and payable
monthly. For the year ended December 31, 2008, the Advisor received an
Administration fee as follows:

|                               | Total
Aggregated | Unpaid at
December 31,
2008
|------------------------------ | ---------------- | ---------------------------
|NY Tax Free Money Fund         | $       261,777  | $       25,473             
|Tax Free Money Fund Investment | $       169,518  | $       12,861             

Service Provider Fees.DWS Investments Service Company ("DISC"), an
affiliate of the Advisor, is the transfer agent, dividend-paying agent and
shareholder service agent for the Funds. Pursuant to a sub-transfer
agency agreement between DISC and DST Systems, Inc. ("DST"), DISC
has delegated certain transfer agent, dividend-paying agent and
shareholder service agent functions to DST. DISC compensates DST out
of the shareholder servicing fee it receives from the Funds. For the year
ended December 31, 2008 and the period from November 11, 2008
(commencement of operations) through December 31, 2008 for Tax Free
Money Fund Investment  Institutional Shares, the amounts charged to
the Funds by DISC were as follows:

|                                                              | Total
Aggregated | Waived         | Unpaid at
December 31,
2008
|------------------------------------------------------------- | ---------------- | -------------- | ---------------------------
|NY Tax Free Money Fund:
Investment Class                      | $       220,250  | $             | $       14,837             
|NY Tax Free Money Fund:
Tax-Exempt New York Money
Market Fund | $       136,038  | $             | $       22,954             
|Tax Free Money Fund Investment:
Premier Shares                | $       378,514  | $       83,615 | $       51,303             
|Tax Free Money Fund Investment:
Institutional Shares          | $       4        | $             | $       4                  

Distribution and Service Fees.DWS Investments Distributors, Inc.
("DIDI") is the Funds' Distributor. The Tax-Exempt New York Money
Market Fund pays the Distributor an annual fee, pursuant to Rule 12b-1,
based on an annual rate of 0.50% of the Tax-Exempt New York Money
Market Fund's average daily net assets, which is calculated daily and
payable monthly. For the year ended December 31, 2008, the Distribution
Fee was as follows:

|                                                              | Total
Aggregated | Unpaid at
December 31,
2008
|------------------------------------------------------------- | ---------------- | ---------------------------
|NY Tax Free Money Fund:
Tax-Exempt New York Money Market Fund | $       791,061  | $       77,820             

In addition, DIDI provides information and administrative services for a fee
("Service Fee") to NY Tax Free Money Fund Investment Class and Tax
Free Money Fund Investment  Premier Shares at an annual rate of up to
0.25% of average daily net assets for each such class. DIDI in turn has
various agreements with financial services firms that provide these
services and pays these fees based upon the assets of the shareholder
accounts the firms service. For the year ended December 31, 2008, the
Service Fee was as follows:

|                                               | Total
Aggregated | Unpaid at
December 31,
2008 | Annual Effective
Rate
|---------------------------------------------- | ---------------- | --------------------------- | ---------------------
|NY Tax Free Money Fund:
Investment Class       | $       210,982  | $       53,441              | .20%                 
|Tax Free Money Fund Investment:
Premier Shares | $       410,962  | $       75,074              | .24%                 

Typesetting and Filing Service Fees.Under an agreement with DIMA,
DIMA is compensated for providing typesetting and certain regulatory
filing services to the Funds. For the year ended December 31, 2008, the
amount charged to each Fund by DIMA included in the Statement of
Operations under "reports to shareholders" is as follows:

|                               | Total
Aggregated | Unpaid at
December 31,
2008
|------------------------------ | ---------------- | ---------------------------
|NY Tax Free Money Fund         | $       15,250   | $       8,694              
|Tax Free Money Fund Investment | $       15,852   | $       4,210              

Trustees' Fees and Expenses. The Funds paid each Trustee not affiliated
with the Advisor retainer fees plus specified amounts for various
committee services and for the Board Chairperson and Vice Chairperson.

In connection with the board consolidation on April 1, 2008, of the two
DWS Funds Boards of Trustees, certain Independent Board Members
retired prior to their normal retirement date, and received a one-time
retirement benefit. DIMA has agreed to reimburse the Funds for the cost
of this benefit. During the period ended December 31, 2008, NY Tax Free
Money Fund and Tax Free Money Fund Investment paid their allocated
portions of the retirement benefit of $1,109 and $654, respectively, to the
non-continuing Independent Board Members, and the Funds were
reimbursed by DIMA for these payments.

C. Fee Reductions

The Funds have entered into arrangements with its custodian and transfer
agent whereby credits realized as a result of uninvested cash balances are
used to reduce a portion of each Fund's custodian expenses. During the
year ended December 31, 2008, each Fund's custodian fee was reduced
under these agreements as follows:

|                               | Custody Credits | Transfer Agent
Credits
|------------------------------ | --------------- | ----------------------
|NY Tax Free Money Fund         | $       482     | $       873           
|Tax Free Money Fund Investment | $       1,668   | $       1,026         

D. Line of Credit

The Funds and other affiliated funds (the "Participants") share in a
$490 million revolving credit facility provided by a syndication of banks.
The Funds may borrow for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the
untimely disposition of securities. The Participants are charged an annual
commitment fee which is allocated based on net assets, among each of
the Participants. Interest is calculated at the Federal Funds Rate plus
0.35 percent. Each Fund may borrow up to a maximum of 5 percent of its
net assets under the agreement.

E. Acquisition of Assets

On March 22, 2007, the NY Tax Free Money Fund acquired all of the net
assets of Investor's Municipal Cash Fund: Tax-Exempt New York Money
Market Fund. The acquisition was accomplished by a tax-free exchange of
42,827,038 shares and net assets at that date of $42,838,790, were
combined with those of the NY Tax Free Money Fund. The aggregate net
assets of the NY Tax Free Money Fund immediately before the acquisition
were $59,475,160. The combined net assets of the NY Tax Free Money
Fund immediately following the acquisition were $102,313,950.

F. Participation in the Treasury's Temporary Guarantee Program

The Funds are participating in the Temporary Guarantee Program for
Money Market Funds (the "Program") established by the U.S.
Department of the Treasury (the "Treasury").

The Program is designed to protect the value of accounts in the Funds
as of the close of business on September 19, 2008. According to the
terms of the Program, any investment made by a shareholder after
September 19, 2008 in excess of the amount held in the account as of
the close of business on that date will not be covered by the Program.
Any purchase of shares of the Funds for an account opened after
September 19, 2008 will also not be covered under the Program. The
Program guarantee will apply to the lesser of (i) the number of shares held
in an account as of the close of business on September 19, 2008, or (ii)
the number of shares held in the account on the date the Program
guarantee is triggered. Subject to certain conditions and limitations, the
Program guarantee is triggered if the Funds' net asset values fall below
$0.995 and the Funds are liquidated. Guarantee payments under the
Program will not exceed the amount available within the Treasury's
Exchange Stabilization Fund ("ESF") on the date of payment.

The Funds bear the expenses of participating in the Program. The expense
is determined by the product of (i) the number of shares outstanding of
each class as of September 19, 2008 valued at $1.00; and (ii) the
applicable Program participation fee rate, which is based upon the
market-based net asset value outstanding of each share class as of
September 19, 2008. For the initial period ending December 18, 2008, the
Program participation fee was equal to 0.010%. For the coverage under
the Program beginning on December 19, 2008 and ending on April 30,
2009, the Program participation fee is equal to 0.015%. This expense is
being amortized over the length of the participation in the Program and is
included in "Other" expense on the Statement of Operations. Through
December 31, 2008, NY Tax Free Money Fund and Tax Free Money Fund
Investment have accrued $31,604 and $20,317, respectively. The Program
is set to terminate on April 30, 2009, unless extended by the Treasury.
The Treasury may extend the program through the close of business on
September 18, 2009. If the Program is extended beyond April 30, 2009,
the Funds would need to pay an additional fee and there can be no
assurances that the Funds would continue to participate. This expense is
borne by the Funds without regard to any expense limitation currently in
effect for the Funds.

Neither the Funds nor Deutsche Investment Management Americas Inc.,
the Funds' investment advisor, are in any manner approved, endorsed,
sponsored or authorized by the Treasury.

Report of Independent Registered
Public Accounting Firm

To the Trustees of DWS Advisor Funds and Shareholders of
Tax Free Money Fund Investment and Investment Class of
NY Tax Free Money Fund:

In our opinion, the accompanying statements of assets and liabilities,
including the investment portfolios, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of NY Tax Free
Money Fund and Tax Free Money Fund Investment (the ``Funds'') at
December 31, 2008, and the results of each of their operations, the
changes in each of their net assets and the financial highlights for each of
the periods indicated therein, in conformity with accounting principles
generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as ``financial
statements'') are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial
statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 2008 by correspondence with the custodian and brokers,
provide a reasonable basis for our opinion.

|Boston, Massachusetts
February 23, 2009 | PricewaterhouseCoopers LLP
|--------------------------------------- | --------------------------

Tax Information(Unaudited)

Of the dividends paid from net investment income for the NY Tax Free
Money Fund and Tax Free Money Fund Investment for the taxable year
ended December 31, 2008, 100% are designated as exempt interest
dividends for federal income tax purposes.

Please contact a tax advisor if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have
specific questions about your account, please call (800) 621-1048.

Investment Management Agreement
Approval

New York Tax Free Money Fund  Investment Class

The Board of Trustees, including the Independent Trustees, approved the
renewal of your Fund's investment management agreement (the
"Agreement") with Deutsche Investment Management Americas Inc.
("DIMA")in September 2008.

In terms of the process that the Board followed prior to approving the
Agreement, shareholders should know that:

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

•   The Trustees meet frequently to discuss fund matters. Each year, the
Trustees dedicate part or all of several meetings to contract review
matters. Over the course of several months, the Board's Contract
Committee, in coordination with the Board's Fixed Income and Quant
Oversight Committee, reviewed comprehensive materials received
from DIMA, independent third parties and independent counsel. These
materials included an analysis of the Fund's performance, fees and
expenses, and profitability compiled by the Fund's independent fee
consultant. The Board also received extensive information throughout
the year regarding performance of the Fund.

•   The Trustees regularly meet privately with their independent counsel
(and, as needed, other advisors) to discuss contract review and other
matters. In addition, the Trustees were also advised by the Fund's
independent fee consultant in the course of their review of the Fund's
contractual arrangements and considered a comprehensive report
prepared by the independent fee consultant in connection with their
deliberations (the "IFC Report").

•   In connection with reviewing the Agreement, the Board also reviewed
the terms of the Fund's administrative services agreement, transfer
agency agreement and other material service agreements.

•   Based on its evaluation of the information provided, the Contract
Committee presented its findings and recommendations to the
Independent Trustees as a group. The Independent Trustees reviewed
the Contract Committee's findings and recommendations and
presented their recommendations to the full Board.

In connection with the contract review process, the Contract Committee
and the Board considered the factors discussed below, among others.
The Board also considered that DIMA and its predecessors have managed
the Fund since its inception, and the Board believes that a long-term
relationship with a capable, conscientious advisor is in the best interests
of the Fund. The Board considered, generally, that shareholders chose to
invest or remain invested in the Fund knowing that DIMA managed the
Fund, and that the Agreement was approved by the Fund's shareholders
at a special meeting held in 2006. DIMA is part of Deutsche Bank, a major
global banking institution that is engaged in a wide range of financial
services. The Board believes that there are significant advantages to being
part of a global asset management business that offers a wide range of
investing expertise and resources, including hundreds of portfolio
managers and analysts with research capabilities in many countries
throughout the world.

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

Nature, Quality and Extent of Services. The Board considered the terms
of the Agreement, including the scope of advisory services provided
under the Agreement. The Board noted that, under the Agreement,
DIMA provides portfolio management services to the Fund and that,
pursuant to a separate administrative services agreement, DIMA provides
administrative services to the Fund. The Board considered the experience
and skills of senior management and investment personnel, the resources
made available to such personnel, the ability of DIMA to attract and retain
high-quality personnel, and the organizational depth and stability of DIMA.
The Board reviewed the Fund's performance over short-term and
long-term periods and compared those returns to various agreed-upon
performance measures, including market indices and a peer universe
compiled by the independent fee consultant using information supplied by
iMoneyNet ("iMoneyNet"). The Board also noted that it has put a process
into place of identifying "Focus Funds" (e.g., funds performing poorly
relative to their benchmark or a peer group compiled by Lipper), and
receives more frequent reporting and information from DIMA regarding
such funds, along with DIMA's remedial plans to address
underperformance. The Board believes this process is an effective manner
of identifying and addressing underperforming funds. Based on the
information provided, the Board noted that for the one-, three- and
five-year periods ended December 31, 2007, the Fund's performance
(Investment Class shares) was in the 3rd quartile, 4th quartile and
4th quartile, respectively, of the applicable iMoneyNet universe (the
1st quartile being the best performers and the 4th quartile being the
worst performers). The Board also observed that the Fund has
underperformed its benchmark in each of the one-, three- and five-year
periods ended December 31, 2007. On the basis of this evaluation and the
ongoing review of investment results by the Board, the Board concluded
that the nature, quality and extent of services provided by DIMA
historically have been and continue to be satisfactory.

Fees and Expenses. The Board considered the Fund's investment
management fee schedule, operating expenses, and total expense ratios,
and comparative information provided by Lipper and the independent fee
consultant regarding investment management fee rates paid to other
investment advisors by similar funds (1st quartile being the most favorable
and 4th quartile being the least favorable). With respect to management
fees paid to other investment advisors by similar funds, the Board noted
that the contractual fee rates paid by the Fund, which include the 0.10%
fee paid to DIMA under the Fund's administrative services agreement,
were higher than the median (3rd quartile) of the applicable Lipper peer
group (based on Lipper data provided as of December 31, 2007). The
Board noted that the Fund's total (net) operating expenses were expected
to be in the following quartiles of the applicable Lipper expense universe:
the 2nd quartile for Investment Class shares and the 4th quartile for
Money Class shares. The Board considered the Fund's management fee
rate as compared to fees charged by DIMA and certain of its affiliates for
comparable mutual funds and considered differences in fund and fee
structures between the DWS Funds. The Board also considered how the
Fund's total (net) operating expenses compared to the total (net) operating
expenses of a more customized peer group selected by Lipper (based
on such factors as asset size). 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.

On the basis of the information provided, the Board concluded that
management fees were reasonable and appropriate in light of the nature,
quality and extent of services provided by DIMA.

Profitability. The Board reviewed detailed information regarding revenues
received by DIMA under the Agreement. The Board considered the
estimated costs and pre-tax profits realized by DIMA from advising the
DWS Funds, as well as estimates of the pre-tax profits attributable to
managing the Fund in particular. The Board also received information
regarding the estimated enterprise-wide profitability of the DWS
Investments organization with respect to all fund services in totality and
by fund. The Board reviewed DIMA's methodology in allocating its costs to
the management of the Fund. Based on the information provided, the
Board concluded that the pre-tax profits realized by DIMA in connection
with the management of the Fund were not unreasonable. The Board
also reviewed information regarding the profitability of certain similar
investment management firms. The Board noted that while information
regarding the profitability of such firms is limited (and in some cases is
not necessarily prepared on a comparable basis), DIMA and its affiliates'
overall profitability with respect to the DWS Investments fund complex
(after taking into account distribution and other services provided to the
funds by DIMA and its affiliates) was lower than the overall profitability
levels of many comparable firms for which such data was available.

Economies of Scale. The Board considered whether there are economies
of scale with respect to the management of the Fund and whether the
Fund benefits from any economies of scale. In this regard, the Board
noted that while the Fund's current investment management fee
schedule does not include breakpoints, the Board intends to consider
implementation of one or more breakpoints once the Fund reaches an
efficient operating size. The Board concluded that the Fund's fee schedule
represents an appropriate sharing between the Fund and DIMA of such
economies of scale as may exist in the management of the Fund at
current asset levels.

Other Benefits to DIMA and Its Affiliates. The Board also considered the
character and amount of other incidental benefits received by DIMA and
its affiliates, including any fees received by DIMA for administrative
services provided to the Fund and any fees received by an affiliate of
DIMA for distribution services. The Board also considered benefits to
DIMA related to brokerage and soft-dollar allocations, including allocating
brokerage to pay for research generated by parties other than the
executing broker dealers, which pertain primarily to funds investing in
equity securities, along with the incidental public relations benefits to
DIMA related to DWS Funds advertising and cross-selling opportunities
among DWS Investments products and services. The Board concluded
that management fees were reasonable in light of these fallout benefits.

Compliance. The Board considered the significant attention and resources
dedicated by DIMA to documenting and enhancing its compliance
processes in recent years. The Board noted in particular (i) the experience
and seniority of DIMA's chief compliance officer; (ii) the large number of
compliance personnel who report to DIMA's chief compliance officer; and
(iii) the substantial commitment of resources by DIMA and its affiliates to
compliance matters.

Based on all of the information considered and the conclusions reached,
the Board (including a majority of the Independent Trustees) determined
that the continuation of the Agreement is in the best interests of the
Fund. In making this determination the Board did not give particular
weight to any single factor identified above. The Board considered these
factors over the course of numerous meetings, certain of which were in
executive session with only the Independent Trustees and their counsel
present. It is possible that individual Trustees may have weighed these
factors differently in reaching their individual decisions to approve the
continuation of the Agreement.

Tax Free Money Fund Investment

The Board of Trustees, including the Independent Trustees, approved
the renewal of your Fund's investment management agreement (the
"Agreement") with Deutsche Investment Management Americas Inc.
("DIMA") in September 2008.

In terms of the process that the Board followed prior to approving the
Agreement, shareholders should know that:

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

•   The Trustees meet frequently to discuss fund matters. Each year, the
Trustees dedicate part or all of several meetings to contract review
matters. Over the course of several months, the Board's Contract
Committee, in coordination with the Board's Fixed Income and Quant
Oversight Committee, reviewed comprehensive materials received
from DIMA, independent third parties and independent counsel. These
materials included an analysis of the Fund's performance, fees and
expenses, and profitability compiled by the Fund's independent fee
consultant. The Board also received extensive information throughout
the year regarding performance of the Fund.

•        The Trustees regularly meet privately with their independent counsel
(and, as needed, other advisors) to discuss contract review and other
matters. In addition, the Trustees were also advised by the Fund's
independent fee consultant in the course of their review of the Fund's
contractual arrangements and considered a comprehensive report
prepared by the independent fee consultant in connection with their
deliberations (the "IFC Report").

•   In connection with reviewing the Agreement, the Board also reviewed
the terms of the Fund's distribution agreement, administrative services
agreement, transfer agency agreement and other material service
agreements.

•   Based on its evaluation of the information provided, the Contract
Committee presented its findings and recommendations to the
Independent Trustees as a group. The Independent Trustees reviewed
the Contract Committee's findings and recommendations and
presented their recommendations to the full Board.

In connection with the contract review process, the Contract Committee
and the Board considered the factors discussed below, among others.
The Board also considered that DIMA and its predecessors have managed
the Fund since its inception, and the Board believes that a long-term
relationship with a capable, conscientious advisor is in the best interests
of the Fund. The Board considered, generally, that shareholders invested
in the Fund knowing that DIMA managed the Fund, and that the
Agreement was approved by the Fund's shareholders at a special meeting
held in 2006. 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 Board believes that there are significant advantages to being
part of a global asset management business that offers a wide range of
investing expertise and resources, including hundreds of portfolio
managers and analysts with research capabilities in many countries
throughout the world.

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

Nature, Quality and Extent of Services. The Board considered the
terms of the Agreement, including the scope of services provided under
the Agreement. The Board noted that, under the Agreement, DIMA
provides portfolio management services to the Fund and that, pursuant
to a separate administrative services agreement, DIMA provides
administrative services to the Fund. The Board considered the experience
and skills of senior management and investment personnel, the resources
made available to such personnel, the ability of DIMA to attract and retain
high-quality personnel, and the organizational depth and stability of
DIMA. The Board reviewed the Fund's performance over short-term and
long-term periods and compared those returns to various agreed-upon
performance measures, including market indices and a peer universe
compiled by the independent fee consultant using information supplied by
iMoneyNet. The Board also noted that it has put a process into place of
identifying "Focus Funds" (e.g., funds performing poorly relative to their
benchmark or a peer group compiled by iMoneyNet ("iMoney Net")),
and receives more frequent reporting and information from DIMA
regarding such funds, along with DIMA's remedial plans to address
underperformance. The Board believes this process is an effective manner
of identifying and addressing underperforming funds. Based on the
information provided, the Board noted that for the one-, three- and
five-year periods ended December 31, 2007, the Fund's performance
(Premier shares) was in the 3rd quartile, 3rd quartile and 4th quartile,
respectively, of the applicable iMoneyNet universe (the 1st quartile being
the best performers and the 4th quartile being the worst performers). The
Board also observed that the Fund has underperformed its benchmark in
each of the one-, three- and five-year periods ended December 31, 2007.
The Board recognized that DIMA has made significant changes in its
investment personnel and processes in recent years in an effort to
improve long-term performance.

On the basis of this evaluation and the ongoing review of investment
results by the Board, the Board concluded that the nature, quality and
extent of services provided by DIMA historically have been and continue
to be satisfactory.

Fees and Expenses. The Board considered the Fund's investment
management fee schedule, operating expenses, and total expense ratios,
and comparative information provided by Lipper and the independent fee
consultant regarding investment management fee rates paid to other
investment advisors by similar funds (1st quartile being the most favorable
and 4th quartile being the least favorable). With respect to management
fees paid to other investment advisors by similar funds, the Board noted
that the contractual fee rates paid by the Fund, which include the 0.10%
fee paid to DIMA under the Fund's administrative services agreement,
were lower than the median (1st quartile) of the applicable Lipper peer
group (based on Lipper data provided as of December 31, 2007). The
Board noted that the Fund's total (net) operating expenses (excluding
12b-1 fees) were expected to be in the 4th quartile of the applicable
Lipper expense universe for Premier shares. The Board considered the
Fund's management fee rate as compared to fees charged by DIMA and
certain of its affiliates for comparable mutual funds and considered
differences in fund and fee structures between the DWS Funds. The
Board also considered how the Fund's total (net) operating expenses
compared to the total (net) operating expenses of a more customized
peer group selected by Lipper (based on such factors as asset size). The
Board also noted that the expense limitation agreed to by DIMA helped to
ensure that the Fund's total (net) operating expenses would be
competitive relative to the applicable Lipper universe.

On the basis of the information provided, the Board concluded that
management fees were reasonable and appropriate in light of the nature,
quality and extent of services provided by DIMA.

Profitability. The Board reviewed detailed information regarding revenues
received by DIMA under the Agreement. The Board considered the
estimated costs and pre-tax profits realized by DIMA from advising the
DWS Funds, as well as estimates of the pre-tax profits attributable to
managing the Fund in particular. The Board also received information
regarding the estimated enterprise-wide profitability of the DWS
Investments organization with respect to all fund services in totality and
by fund. The Board reviewed DIMA's methodology in allocating its costs
to the management of the Fund. Based on the information provided, the
Board concluded that the pre-tax profits realized by DIMA in connection
with the management of the Fund were not unreasonable. The Board
also reviewed information regarding the profitability of certain similar
investment management firms. The Board noted that while information
regarding the profitability of such firms is limited (and in some cases is
not necessarily prepared on a comparable basis), DIMA and its affiliates'
overall profitability with respect to the DWS Investments fund complex
(after taking into account distribution and other services provided to the
funds by DIMA and its affiliates) was lower than the overall profitability
levels of many comparable firms for which such data was available.

Economies of Scale. The Board considered whether there are economies
of scale with respect to the management of the Fund and whether the
Fund benefits from any economies of scale. In this regard, the Board
noted that while the Fund's current investment management fee
schedule does not include breakpoints, the Board intends to consider
implementation of one or more breakpoints once the Fund reaches an
efficient operating size. The Board concluded that the Fund's fee schedule
represents an appropriate sharing between the Fund and DIMA of such
economies of scale as may exist in the management of the Fund at
current asset levels.

Other Benefits to DIMA and Its Affiliates. The Board also considered the
character and amount of other incidental benefits received by DIMA and
its affiliates, including any fees received by DIMA for administrative
services provided to the Fund and any fees received by an affiliate of
DIMA for distribution services. The Board also considered benefits to
DIMA related to brokerage and soft-dollar allocations, including allocating
brokerage to pay for research generated by parties other than the
executing broker dealers, which pertain primarily to funds investing in
equity securities, along with the incidental public relations benefits to
DIMA related to DWS Funds advertising and cross-selling opportunities
among DWS Investments products and services. The Board concluded
that management fees were reasonable in light of these fallout benefits.

Compliance. The Board considered the significant attention and resources
dedicated by DIMA to documenting and enhancing its compliance
processes in recent years. The Board noted in particular (i) the experience
and seniority of DIMA's chief compliance officer; (ii) the large number of
compliance personnel who report to DIMA's chief compliance officer; and
(iii) the substantial commitment of resources by DIMA and its affiliates to
compliance matters.

Based on all of the information considered and the conclusions reached,
the Board (including a majority of the Independent Trustees) determined
that the continuation of the Agreement is in the best interests of the
Fund. In making this determination the Board did not give particular
weight to any single factor identified above. The Board considered these
factors over the course of numerous meetings, certain of which were in
executive session with only the Independent Trustees and their counsel
present. It is possible that individual Trustees may have weighed these
factors differently in reaching their individual decisions to approve the
continuation of the Agreement.

Summary of Management Fee Evaluation
by Independent Fee Consultant

October 24, 2008

Pursuant to an Order entered into by Deutsche Investment Management
Americas and affiliates (collectively, "DeAM") with the Attorney General
of New York, I, Thomas H. Mack, have been appointed the Independent
Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds).
My duties include preparing an annual written evaluation of the
management fees DeAM charges the Funds, considering among other
factors the management fees charged by other mutual fund companies
for like services, management fees DeAM charges other clients for like
services, DeAM's costs of supplying services under the management
agreements and related profit margins, possible economies of scale if a
Fund grows larger, and the nature and quality of DeAM's services,
including fund performance. This report summarizes my evaluation for
2008, including my qualifications, the evaluation process for each of the
DWS Funds, consideration of certain complex-level factors, and my
conclusions. I served in substantially the same capacity in 2007.

Qualifications

For more than 35 years I have served in various professional capacities
within the investment management business. I have held investment
analysis and advisory positions, including securities analyst, portfolio
strategist and director of investment policy with a large investment firm. I
have also performed business management functions, including business
development, financial management and marketing research and analysis.

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

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

Evaluation of Fees for each DWS Fund

My work focused primarily on evaluating, fund-by-fund, the fees charged
to each of the 129 Fund portfolios in the DWS Fund family. For each Fund,
I considered each of the key factors mentioned above, as well as any
other relevant information. In doing so I worked closely with the Funds'
Independent Directors in their annual contract renewal process, as well as
in their approval of contracts for several new funds (documented
separately).

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

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

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

Fees and Expenses Compared with Other Funds

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

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

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

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

DeAM's Fees for Similar Services to Others

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

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

Costs and Profit Margins

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

Economies of Scale

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

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

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

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

Quality of Service  Performance

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

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

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

Complex-Level Considerations

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

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

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

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

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

Findings

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

nytfm_sigmack1Thomas H. Mack

Summary of Administrative Fee Evaluation
by Independent Fee Consultant

September 29, 2008

Pursuant to an Order entered into by Deutsche Asset Management
(DeAM) with the Attorney General of New York, I, Thomas H. Mack, have
been appointed the Independent Fee Consultant for the DWS Funds and
have as part of my duties evaluated the reasonableness of the proposed
management fees to be charged by DeAM to the DWS Funds, taking onto
account a proposal to pass through to the funds certain fund
accounting-related charges in connection with new regulatory
requirements. My evaluation considered the following:

•   While the proposal would alter the services to be provided under the
Administration Agreement, which I consider to be part of fund
management under the Order, it is my opinion that the change in
services is slight and that the scope of prospective services under the
combination of the Advisory and Administration Agreements continues
to be comparable with those typically provided to competitive funds
under their management agreements.

•   While the proposal would increase fund expenses, according to a pro
forma analysis performed by management, the prospective effect is
less than .01% for all but seven of the DeAM Funds' 438 active share
classes, and in all cases the effect is less than .03% and overall
expenses would remain reasonable in my opinion.

Based on the foregoing considerations, in my opinion the fees and
expenses for all of the DWS Funds will remain reasonable if the Directors
adopt this proposal.

nytfm_sigmack0Thomas H. Mack

Board Members and Officers

The following table presents certain information regarding the Board
Members and Officers of the Trust as of December 31, 2008. Each Board
Member's year of birth is set forth in parentheses after his or her name.
Unless otherwise noted, (i) each Board Member has engaged in the
principal occupation(s) noted in the table for at least the most recent five
years, although not necessarily in the same capacity; and (ii) the address
of each Independent Board Member is c/o Dawn-Marie Driscoll, PO Box
100176, Cape Coral, FL 33904. Except as otherwise noted below, the term
of office for each Board Member is until the election and qualification of a
successor, or until such Board Member sooner dies, resigns, is removed
or as otherwise provided in the governing documents of the fund.
Because the fund does not hold an annual meeting of shareholders, each
Board Member will hold office for an indeterminate period. The Board
Members may also serve in similar capacities with other funds in the fund
complex. The Length of Time Served represents the year in which the
Board Member joined the board of one or more DWS funds now overseen
by the Board.

|Independent Board Members                                             
|----------------------------------------------------------------------
|Name, Year of
Birth, Position
with the Fund
and Length of
Time Served1
|Paul K. Freeman
(1950)Chairperson
since 20092Board Member
since 1993  
|Dawn-Marie
Driscoll (1946)Board Member
since 1987                     
|John W.
Ballantine (1946)Board Member
since 1999                      
|Henry P. Becton,
Jr. (1943)Board Member
since 1990                    
|Keith R. Fox
(1954)Board Member
since 1996                            
|Kenneth C.
Froewiss (1945)Board Member
since 2001                     
|Richard J.
Herring (1946)Board Member
since 1990                      
|William
McClayton (1944)Board Member
since 2004                       
|Rebecca W.
Rimel (1951)Board Member
since 1995                        
|William N.
Searcy, Jr. (1946)Board Member
since 1993                  
|Jean Gleason
Stromberg (1943)Board Member
since 1997                  
|Robert H.
Wadsworth(1940)Board Member
since 1999                      

|Interested Board Member                                               
|----------------------------------------------------------------------
|Name, Year of
Birth, Position
with the Fund
and Length of
Time Served1
|Axel Schwarzer4(1958)Board Member
since 2006                          

|Officers6                                                                           
|------------------------------------------------------------------------------------
|Name, Year of Birth,
Position with the Fund and
Length of Time Served7              
|Michael G. Clark8 (1965)President, 2006-present                                     
|John Millette9 (1962)Vice President and Secretary,
1999-present                     
|Paul H. Schubert8 (1963)Chief Financial Officer,
2004-presentTreasurer, 2005-present
|Caroline Pearson9 (1962)Assistant Secretary,
1997-present                           
|Rita Rubin10 (1970)Assistant Secretary,
2009-present                                
|Paul Antosca9 (1957)Assistant Treasurer,
2007-present                               
|Jack Clark9 (1967)Assistant Treasurer,
2007-present                                 
|Diane Kenneally9(1966)Assistant Treasurer,
2007-present                             
|Jason Vazquez10 (1972)Anti-Money Laundering
Compliance Officer,
2007-present        
|Robert Kloby10 (1962)Chief Compliance Officer,
2006-present                         
|J. Christopher Jackson10
(1951)Chief Legal Officer,
2006-present                    

The fund's Statement of Additional Information ("SAI") includes additional information about
the Board Members. The SAI is available, without charge, upon request. If you would like to
request a copy of the SAI, you may do so by calling the following toll-free number:
(800) 621-1048.

Account Management Resources

|                          
|--------------------------
|Automated
Information Line
|For More
Information      
|Written
Correspondence    
|Proxy Voting              
|Principal
Underwriter     

|              | NY Tax Free Money
Fund  Investment
Class | Tax Free Money
Fund Investment 
Premier Shares | Tax Free Money
Fund Investment 
Institutional Shares
|------------- | ----------------------------------------- | ----------------------------------------------- | -----------------------------------------------------
|Nasdaq Symbol | BNYXX                                     | BTXXX                                           | BTTXX                                                
|CUSIP Number  | 23336Y  698                               | 23336Y  714                                     | 23336Y  557                                          
|Fund Number   | 844                                       | 839                                             | 359                                                  

nytfm_backcover0




ITEM 2.
        CODE OF ETHICSAs of the end of the period, December 31, 2008, NY Tax Free Money Fund and Tax Free Money Fund Investment has a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer.

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

A copy of the code of ethics is filed as an exhibit to this Form N-CSR.ITEM 3.
        AUDIT COMMITTEE FINANCIAL EXPERTThe Funds audit committee is comprised solely of trustees who are independent (as such term has been defined by the Securities and Exchange Commission (SEC) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the Regulations)). The Funds Board of Trustees has determined that there are several audit committee financial experts (as such term has been defined by the Regulations) serving on the Funds audit committee including Mr. William McClayton, the chair of the Funds audit committee.  The SEC has stated that an audit committee financial expert is not an expert for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an audit committee
financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.ITEM 4.
        PRINCIPAL ACCOUNTANT FEES AND SERVICES
  NY TAX FREE MONEY FUND FORM N-CSR DISCLOSURE RE: AUDIT FEES The following table shows the amount of fees that PricewaterhouseCoopers, LLP (PWC), the Funds independent registered public accounting firm, billed to the Fund during the Funds last two fiscal years.  The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). Services that the Funds Independent Registered Public Accounting Firm Billed to the Fund  Fiscal YearEndedDecember 31,
        Audit Fees Billed to Fund
        Audit-RelatedFees Billed to Fund
        Tax Fees Billed to Fund
        AllOther Fees Billed to Fund2008
        $46,650
        $0
        $0
        $02007
        $46,350
        $0
        $0
        $0
  Services that the Funds Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (DeIM or the Adviser), and any entity controlling, controlled by or under common control with DeIM (Control  
 Affiliate) that provides ongoing services to the Fund (Affiliated Fund Service Provider), for engagements directly related to the Funds operations and financial reporting, during the Funds last two fiscal years.  Fiscal YearDecember 31,
        Audit-RelatedFees Billedto Adviser and Affiliated Fund Service Providers
        Tax Fees Billed to Adviser and Affiliated Fund Service Providers
        AllOther Fees Billed to Adviser and Affiliated Fund Service Providers2008
        $0
        $19,000
        $02007
        $58,500
        $25,000
        $0
  The Audit-Related Fees were billed for services in connection with the agreed-upon procedures related to fund mergers and the above Tax Fees were billed in connection with tax consultation and agreed-upon procedures. Non-Audit Services The following table shows the amount of fees that PWC billed during the Funds last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Funds operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Funds last fiscal year to the Adviser and any Affiliated Fund Service Provider.  The Committee considered this information in evaluating PWCs independence.  Fiscal YearEndedDecember 31,
        TotalNon-Audit Fees Billed to Fund
(A)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund)
(B)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements)
(C)
        Total of (A), (B)and (C)2008
        $0
        $19,000
        $0
        $19,0002007
        $0
        $25,000
        $600,000
        $625,000
   All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.  ***  PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules.  In the first instance, an employee of PwC had power of attorney over an account which included DWS funds.  The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG.  In the second instance, an employee of PwC served as a nominee shareholder (effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of  
 Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG.  The trustee relationship has ceased.  PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X.  PwC advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund.  In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.  TAX FREE MONEY FUND INVESTMENT FORM N-CSR DISCLOSURE RE: AUDIT FEES The following table shows the amount of fees that PricewaterhouseCoopers, LLP (PWC), the Funds independent registered public accounting firm, billed to the Fund during the Funds last two fiscal years.  The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). Services that the Funds Independent Registered Public Accounting Firm Billed to the Fund  Fiscal YearEndedDecember 31,
        Audit Fees Billed to Fund
        Audit-RelatedFees Billed to Fund
        Tax Fees Billed to Fund
        AllOther Fees Billed to Fund2008
        $37,400
        $0
        $0
        $02007
        $37,100
        $0
        $0
        $0
  Services that the Funds Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (DeIM or the Adviser), and any entity controlling, controlled by or under common control with DeIM (Control Affiliate) that provides ongoing services to the Fund (Affiliated Fund Service Provider), for engagements directly related to the Funds operations and financial reporting, during the Funds last two fiscal years.  Fiscal YearDecember 31,
        Audit-RelatedFees Billedto Adviser and Affiliated Fund Service Providers
        Tax Fees Billed to Adviser and Affiliated Fund Service Providers
        AllOther Fees Billed to Adviser and Affiliated Fund Service Providers2008
        $0
        $19,000
        $02007
        $58,500
        $25,000
        $0
  The Audit-Related Fees were billed for services in connection with the agreed-upon procedures related to fund mergers and the above Tax Fees were billed in connection with tax consultation and agreed-upon procedures.  
 Non-Audit Services The following table shows the amount of fees that PWC billed during the Funds last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Funds operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Funds last fiscal year to the Adviser and any Affiliated Fund Service Provider.  The Committee considered this information in evaluating PWCs independence.   Fiscal YearEndedDecember 31,
        TotalNon-Audit Fees Billed to Fund
(A)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund)
(B)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements)
(C)
        Total of (A), (B)and (C)2008
        $0
        $19,000
        $0
        $19,0002007
        $0
        $25,000
        $600,000
        $625,000
  All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.  ***  PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules.  In the first instance, an employee of PwC had power of attorney over an account which included DWS funds.  The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG.  In the second instance, an employee of PwC served as a nominee shareholder (effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG.  The trustee relationship has ceased.  PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X.  PwC
advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund.  In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.  ITEM 5.
        AUDIT COMMITTEE OF LISTED REGISTRANTSNot ApplicableITEM 6.
        SCHEDULE OF INVESTMENTSNot Applicable
   
  ITEM 7.
        DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.ITEM 8.
        PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.
  ITEM 9.
        PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERSNot Applicable.
  ITEM 10.
        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSThe primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Chairman of the Board, P.O. Box 100176, Cape Coral, FL 33910.ITEM 11.
        CONTROLS AND PROCEDURES(a)          The Chief Executive and Financial Officers concluded that the Registrants Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.(b)         There have been no changes in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal controls over financial reporting.ITEM 12.
        EXHIBITS(a)(1)     Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.(a)(2)     Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.(b)         Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.


Form N-CSR Item F  SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  Registrant:
        NY Tax Free Money Fund and Tax Free Money Fund Investment, each a series of DWS Advisor Funds
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        March 2, 2009
   Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.  Registrant:
        NY Tax Free Money Fund and Tax Free Money Fund Investment, each a series of DWS Advisor Funds
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        March 2, 2009
   By:
        /s/Paul Schubert
 Paul Schubert
 Chief Financial Officer and Treasurer  Date:                                        March 2, 2009