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  
 DECEMBER 31, 2008
Annual Report
to ShareholdersDWS RREEF Real Estate
Securities Fundres_cover10 Contents 4Performance Summary
10Information About Your Fund's Expenses
12Portfolio Management Review
18Portfolio Summary
20Investment Portfolio
23Financial Statements
27Financial Highlights
33Notes to Financial Statements
41Report of Independent Registered Public Accounting Firm
42Tax Information
43Investment Management Agreement Approval
48Summary of Management Fee Evaluation by Independent
Fee Consultant
53Summary of Administrative Fee Evaluation by Independent
Fee Consultant
54Board Members and Officers
58Account Management Resources This report must be preceded or accompanied by a prospectus. To obtain a
prospectus for any of our funds, refer to the Account Management Resources
information provided in the back of this booklet. We advise you to consider the
fund's objectives, risks, charges and expenses carefully before investing. The
prospectus contains this and other important information about the fund. Please
read the prospectus carefully before you invest. Investments in mutual funds involve risk. Some funds have more risk than others. This
fund is nondiversified and can take larger positions in fewer companies, increasing its
overall potential risk. The fund involves additional risk due to its narrow focus. There are
special risks associated with an investment in real estate, including credit risk, interest
rate fluctuations and the impact of varied economic conditions. Please read this fund's
prospectus for specific details regarding its investments and risk profile. DWS Investments is part of Deutsche Bank's Asset Management division and, within the US,
represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust
Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust
Company. NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY Performance SummaryDecember 31, 2008 Classes A, B, C, R and Institutional Class All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment return
and principal value fluctuate with changing market conditions so that, when
redeemed, shares may be worth more or less than their original cost. Current
performance may be lower or higher than the performance quoted. Please visit
www.dws-investments.com for the Fund's most recent month-end performance. The maximum sales charge for Class A shares is 5.75%. For Class B shares, the
maximum contingent deferred sales charge (CDSC) is 4% within the first year after
purchase, declining to 0% after six years. Class C shares have no front-end sales
charge but redemptions within one year of purchase may be subject to a CDSC of
1%. Unadjusted returns do not reflect sales charges and would have been lower if
they had. Institutional Class and Class R shares are not subject to sales charges. The total annual fund operating expense ratios, gross of any fee waivers or expense
reimbursements, as stated in the fee table of the prospectus dated May 1, 2008 are
0.97%, 1.73%, 1.69%, 1.14% and 0.57% for Class A, Class B, Class C, Class R and
Institutional Class shares, respectively. Please see the Information About Your
Fund's Expenses, the Financial Highlights and Notes to the Financial Statements
(Note C, Related Parties) sections of this report for gross and net expense related
disclosure for the period ended December 31, 2008. To discourage short-term trading, the Fund imposes a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which has the effect of
lowering total return. Returns and rankings for the 3-year, 5-year and Life of Fund periods shown for Classes A,
B, C and Institutional Class shares reflect a fee waiver and/or expense reimbursement.
Without this waiver/reimbursement, returns and rankings would have been lower. Performance figures do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. Returns and rankings may differ by
share class. On September 3, 2002 the Fund's original share class, RREEF Class A shares, were
redesignated Institutional Class. In addition, the Fund began offering additional classes of
shares, namely Class A, B and C shares. Returns shown for Class A, B and C shares for
the period prior to their inception on September 3, 2002 and Class R prior to its inception
on October 1, 2003 are derived from the historical performance of Institutional Class
shares of the DWS RREEF Real Estate Securities Fund during such period and have been
adjusted to reflect the higher total annual operating expenses of each specific class. Any
difference in expenses will affect performance. Average Annual Total Returns(Unadjusted for Sales Charge) as of 12/31/08DWS RREEF Real Estate Securities Fund
1-Year
3-Year
5-Year
Life of
Fund*Class A
-39.34%
-11.10%
.68%
9.64%Class B
-39.71%
-11.75%
-.16%
8.76%Class C
-39.76%
-11.73%
-.10%
8.82%Class R
-39.42%
-11.23%
.43%
9.41%Institutional Class
-38.99%
-10.70%
1.05%
10.04%S&P 500® Index+
-37.00%
-8.36%
-2.19%
-2.96%MSCI US REIT Index++
-40.33%
-12.56%
-.29%
8.28% Sources: Lipper Inc. and Deutsche Investment Management Americas Inc. * DWS RREEF Real Estate Securities Fund commenced operations on December 1, 1999.
Index returns began on November 30, 1999.  Net Asset Value and Distribution InformationClass A
Class B
Class C
Class R
Institutional
ClassNet Asset Value:
12/31/08
$     11.09
$     11.09
$     11.12
$     11.11
$     11.0912/31/07
$     19.07
$     19.04
$     19.10
$     19.09
$     19.09Distribution Information:
Twelve Months
as of 12/31/08:Income Dividends
$     .46
$     .31
$     .32
$     .42
$     .53Capital Gain Distributions
$     .09
$     .09
$     .09
$     .09
$     .09Return of Capital
$     .09
$     .09
$     .09
$     .09
$     .09 Institutional Class Lipper Rankings  Real Estate Funds Categoryas of 12/31/08Period
Rank

Number of
Funds Tracked
Percentile
Ranking (%)1-Year
117
of
232
513-Year
50
of
192
265-Year
52
of
160
33 Source: Lipper Inc. Rankings are historical and do not guarantee future results.Rankings
are based on total returns unadjusted for sales charges with distributions reinvested. If
sales charges had been included, rankings might have been less favorable. Rankings are
for Institutional Class shares; other share classes may vary. Growth of an Assumed $10,000 Investment(Adjusted for Maximum Sales Charge)[]DWS RREEF Real Estate Securities Fund  Class A
[]S&P 500 Index+
[]MSCI US REIT (Morgan Stanley US Real Estate Investment Trust) Index++res_g10kb0Yearly periods ended December 31 The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales
charge of 5.75%. This results in a net initial investment of $9,425. Comparative Results(Adjusted for Maximum Sales Charge) as of 12/31/08DWS RREEF Real Estate Securities Fund
1-Year
3-Year
5-Year
Life of
Fund*Class A
Growth of $10,000
$5,717
$6,623
$9,749
$21,765Average annual total return
-42.83%
-12.84%
-.51%
8.93%Class B
Growth of $10,000
$5,854
$6,766
$9,857
$21,459Average annual total return
-41.46%
-12.21%
-.29%
8.76%Class C
Growth of $10,000
$6,024
$6,877
$9,951
$21,558Average annual total return
-39.76%
-11.73%
-.10%
8.82%Class R
Growth of $10,000
$6,058
$6,995
$10,219
$22,655Average annual total return
-39.42%
-11.23%
.43%
9.41%S&P 500 Index+
Growth of $10,000
$6,300
$7,696
$8,953
$7,611Average annual total return
-37.00%
-8.36%
-2.19%
-2.96%MSCI US REIT Index++
Growth of $10,000
$5,967
$6,685
$9,857
$20,610Average annual total return
-40.33%
-12.56%
-.29%
8.28% The growth of $10,000 is cumulative. * DWS RREEF Real Estate Securities Fund commenced operations on December 1, 1999.
Index returns began on November 30, 1999.  Growth of an Assumed $1,000,000 Investment[]DWS RREEF Real Estate Securities Fund  Institutional Class
[]S&P 500 Index+
[]MSCI US REIT (Morgan Stanley US Real Estate Investment Trust) Index++res_g10ka0Yearly periods ended December 31 Comparative Resultsas of 12/31/08DWS RREEF Real Estate Securities Fund
1-Year
3-Year
5-Year
Life of
Fund*Institutional
Class
Growth of $1,000,000
$610,100
$712,200
$1,053,700
$2,384,100Average annual total return
-38.99%
-10.70%
1.05%
10.04%S&P 500 Index+
Growth of $1,000,000
$630,000
$769,600
$895,300
$761,100Average annual total return
-37.00%
-8.36%
-2.19%
-2.96%MSCI US REIT
Index++
Growth of $1,000,000
$596,700
$668,500
$985,700
$2,061,000Average annual total return
-40.33%
-12.56%
-.29%
8.28% The growth of $1,000,000 is cumulative. The minimum initial investment for Institutional Class shares is $1,000,000. * DWS RREEF Real Estate Securities Fund commenced operations on December 1, 1999.
Index returns began on November 30, 1999.  +  The Standard and Poor's 500 (S&P 500) Index is an unmanaged, capitalization-weighted
index of 500 stocks. The index is designed to measure performance of the broad domestic
economy through changes in the aggregate market value of 500 stocks representing all
major industries.  + + The MSCI US REIT Index is an unmanaged, free float-adjusted market capitalization
weighted index that is comprised of equity REITs that are included in the MSCI US
Investable Market 2500 Index, with the exception of specialty equity REITs that do not
generate a majority of their revenue and income from real estate rental and leasing
operations. The index represents approximately 85% of the US REIT universe.  Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect
any fees or expenses. It is not possible to invest directly into an index.  Class S Class S shares are generally not available to new investors except under certain
circumstances. (Please refer to the Fund's Statement of Additional Information.) All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions and does not guarantee future results. Investment return
and principal value fluctuate with changing market conditions so that, when
redeemed, shares may be worth more or less than their original cost. Current
performance may be lower or higher than the performance quoted. Please visit
www.dws-investments.com for the Fund's most recent month-end performance. The total annual fund operating expense ratio, gross of any fee waivers or expense
reimbursements, as stated in the fee table of the prospectus dated May 1, 2008 is
0.83% for Class S shares. Please see the Information About Your Fund's Expenses,
the Financial Highlights and Notes to the Financial Statements (Note C, Related
Parties) sections of this report for gross and net expense related disclosure for the
period ended December 31, 2008. To discourage short-term trading, the Fund imposes a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which has the effect of
lowering total return. Performance figures do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemptions of fund shares. Returns and rankings may differ by
share class. Returns shown for Class S shares for the periods prior to its inception on May 2, 2005 are
derived from the historical performance of Institutional Class shares of the DWS RREEF
Real Estate Securities Fund during such periods and have been adjusted to reflect the
higher total annual operating expenses of Class S. Any difference in expenses will affect
performance. Average Annual Total Returnsas of 12/31/08DWS RREEF Real Estate Securities Fund
1-Year
3-Year
5-Year
Life of
Fund*Class S
-39.34%
-10.95%
.77%
9.71%S&P 500 Index+
-37.00%
-8.36%
-2.19%
-2.96%MSCI US REIT Index++
-40.33%
-12.56%
-.29%
8.28% Sources: Lipper Inc. and Deutsche Investment Management Americas Inc. * DWS RREEF Real Estate Securities Fund commenced operations on December 1, 1999.
Index returns began on November 30, 1999.  Net Asset Value and Distribution InformationClass SNet Asset Value:
12/31/08
$     11.1112/31/07
$     19.11Distribution Information:
Twelve Months as of 12/31/08:Income Dividends
$     .49Capital Gain Distributions
$     .09Return of Capital
$     .09 Class S Lipper Rankings  Real Estate Funds Categoryas of 12/31/08Period
Rank

Number of
Funds Tracked
Percentile
Ranking (%)1-Year
128
of
232
553-Year
59
of
192
31 Source: Lipper Inc. Rankings are historical and do not guarantee future results.Rankings
are based on total returns with distributions reinvested. Rankings are for Class S shares;
other share classes may vary. Growth of an Assumed $10,000 Investment[]DWS RREEF Real Estate Securities Fund  Class S
[]S&P 500 Index+
[]MSCI US REIT (Morgan Stanley US Real Estate Investment Trust) Index++res_g10k90Yearly periods ended December 31 Comparative Resultsas of 12/31/08DWS RREEF Real Estate Securities Fund
1-Year
3-Year
5-Year
Life of Fund*Class S
Growth of $10,000
$6,066
$7,062
$10,390
$23,212Average annual total return
-39.34%
-10.95%
.77%
9.71%S&P 500 Index+
Growth of $10,000
$6,300
$7,696
$8,953
$7,611Average annual total return
-37.00%
-8.36%
-2.19%
-2.96%MSCI US REIT
Index++
Growth of $10,000
$5,967
$6,685
$9,857
$20,610Average annual total return
-40.33%
-12.56%
-.29%
8.28% The growth of $10,000 is cumulative. * DWS RREEF Real Estate Securities Fund commenced operations on December1, 1999.
Index returns began on November 30, 1999.  +  The Standard and Poor's 500 (S&P 500) Index is an unmanaged, capitalization-weighted
index of 500 stocks. The index is designed to measure performance of the broad domestic
economy through changes in the aggregate market value of 500 stocks representing all
major industries.  + + The MSCI US REIT Index is an unmanaged, free float-adjusted market capitalization
weighted index that is comprised of equity REITs that are included in the MSCI US
Investable Market 2500 Index, with the exception of specialty equity REITs that do not
generate a majority of their revenue and income from real estate rental and leasing
operations. The index represents approximately 85% of the US REIT universe.  Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect
any fees or expenses. It is not possible to invest directly into an index.  Information About Your Fund's Expenses As an investor of the Fund, you incur two types of costs: ongoing expenses
and transaction costs. Ongoing expenses include management fees,
distribution and service (12b-1) fees and other Fund expenses. Examples of
transaction costs include sales charges (loads), redemption fees and
account maintenance fees, which are not shown in this section. The
following tables are intended to help you understand your ongoing expenses
(in dollars) of investing in the Fund and to help you compare these expenses
with the ongoing expenses of investing in other mutual funds. 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. An account maintenance fee of $6.25
per quarter for Class S shares may apply for certain accounts whose
balances do not meet the applicable minimum initial investment. This fee is
not included in these tables. If it was, the estimate of expenses paid for
Class S shares during the period would be higher, and account value during
the period would be lower, by this amount. Expenses and Value of a $1,000 Investmentfor the six months ended December 31, 2008Actual Fund Return
Class A
Class B
Class C
Class R
Class S
Institutional
ClassBeginning Account
Value 7/1/08
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00Ending Account Value
12/31/08
$       626.90
$       626.30
$       625.50
$       627.30
$       626.80
$       630.00Expenses Paid per
$1,000*
$       3.97
$       7.36
$       7.27
$       4.34
$       3.48
$       2.66Hypothetical 5%
Fund Return
Class A
Class B
Class C
Class R
Class S
Institutional
ClassBeginning Account
Value 7/1/08
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00
$       1,000.00Ending Account Value
12/31/08
$       1,020.26
$       1,016.09
$       1,016.19
$       1,019.81
$       1,020.86
$       1,021.87Expenses Paid per
$1,000*
$       4.93
$       9.12
$       9.02
$       5.38
$       4.32
$       3.30 * Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied
by the average account value over the period, multiplied by the number of days in the most
recent six-month period, then divided by 366.  Annualized Expense
Ratios
Class A
Class B
Class C
Class R
Class S
Institutional
ClassDWS RREEF Real
Estate Securities Fund
.97%
1.80%
1.78%
1.06%
.85%
.65% For more information, please refer to the Fund's prospectuses. Portfolio Management Review DWS RREEF Real Estate Securities Fund: 
A Team Approach to Investing Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), which is part of Deutsche Asset Management, is the investment
advisor for DWS RREEF Real Estate Securities Fund. DIMA and its
predecessors have more than 80 years of experience managing mutual
funds and DIMA provides a full range of investment advisory services to
institutional and retail clients. RREEF America L.L.C. ("RREEF"), which is also part of Deutsche Asset
Management, is an indirect, wholly owned subsidiary of Deutsche Bank AG,
is the subadvisor for the fund. RREEF makes the investment decisions, buys
and sells securities for the fund and conducts research that leads to these
purchase and sale decisions. 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 John F. Robertson, CFA Managing Director of Deutsche Asset Management and of RREEF and Co-Manager of
the fund. •        Joined RREEF in 1997, Deutsche Asset Management in 2002 and the fund in 1999. •        Prior to that, Assistant Vice President of Lincoln Investment Management responsible for
REIT research. •        Over 16 years of investment industry experience. •        BA, Wabash College; MBA, Indiana University. Jerry W. Ehlinger, CFA Managing Director of Deutsche Asset Management and of RREEF and Co-Manager of
the fund. •        Joined RREEF, Deutsche Asset Management and the fund in 2004. •        Prior to that, Senior Vice President at Heitman Real Estate Investment Management from
2000-2004. •        Prior to that, Senior Research Associate at Morgan Stanley Asset Management from
1996-2000. •        Over 11 years of investment industry experience. •        BA, University of Wisconsin-Whitewater; MS, University of Wisconsin-Madison. John W. Vojticek Managing Director of RREEF and Co-Manager of the fund. •        Joined RREEF, Deutsche Asset Management and the fund in September 2004. •        Prior to that, Principal at KG Redding and Associates, March 2004-September 2004. •        Prior to that, Managing Director of RREEF from 1996-March 2004, Deutsche Asset
Management from 2002-March 2004 and the fund from 1999-March 2004. •        Over 11 years of investment industry experience. •        BS, University of Southern California. Asad Kazim Director of RREEF and Co-Manager of the fund. •        Joined RREEF and Deutsche Asset Management in 2002 and the fund in 2005. •        Prior to that, Financial Analyst at Clarion CRA Securities from 2000-2002. •        Over 8 years of investment industry experience. •        BS, The College of New Jersey. In the following interview, the portfolio management team discusses
the market environment, performance results and positioning of DWS
RREEF Real Estate Securities Fund during the fund's 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: How did DWS RREEF Real Estate Securities Fund perform
during its most recent annual period? A:After holding up reasonably well amid increasing market volatility
in the first nine months of 2008, US real estate investment trusts
("REITs") were hit by unprecedented and intense volatility in
October and November of last year arising from investor fears
related to the worldwide credit crunch. For the 12-month period
ended December 31, 2008, DWS RREEF Real Estate Securities
Fund returned -39.34%. (Class A shares; returns are unadjusted for
sales charges. If sales charges had been included, returns would
have been lower. Past performance is no guarantee of future
results. Please see pages 4 through 9 for the performance of
other share classes and for more complete performance
information.) In comparison, the fund's benchmark, the MSCI US
REIT Index, returned -40.33% over the same period.1 1 The MSCI US REIT Index is an unmanaged, free-float-adjusted, market-capitalization-
weighted index that is comprised of equity REITs that are included in the MSCI US
Investable Market 2500 Index, with the exception of specialty equity REITs that do not
generate a majority of their revenue and income from real estate rental and leasing
operations. The index represents approximately 85% of the US REIT universe. Index
returns assume reinvestment of dividends and, unlike fund returns, do not reflect any fees
or expenses. It is not possible to invest directly into an index.  Q: What factors influenced the performance of REITs during the
12-month period? A:In the first half of 2008, volatility within the real estate securities
market (and financial markets in general) was severe at times, but
REITs nevertheless recorded several of their largest-ever single-day
gains, as real estate investors responded positively to actions taken
by the US Federal Reserve Board (the Fed) to restore liquidity to the
markets and bolster the faltering US economy. However, in May and
June of 2008, higher commodity and food prices began to take their
toll on US consumer spending, and the retail REIT sector was hit
especially hard. In the third quarter, as concern about a possible
economic recession pulled down commodity prices and eased
inflation concerns, REITs significantly outperformed the broader
stock market. In October, the outperformance of the REIT sector ended abruptly.
Volatility had been on the rise for the real estate securities market
throughout the year, but at the start of the fourth quarter it suddenly
skyrocketed. Investors had been worrying for some time about how
much more expensive it would be for REIT companies to roll over
debt that was coming due in the next 18 to 24 months. However, in
October and November of 2008, with more and more bad news
arising regarding failing US financial firms and a general drying up of
liquidity and credit nationwide, concern over whether it would even
be possible for US REITs to refinance short-term debt sparked
massive declines in REIT prices. Other factors that contributed to
REIT market volatility during the fourth quarter included large hedge
fund transactions and forced selling by closed-end funds. In
December 2008, the REIT market rebounded slightly as investors
regained some certainty in light of the completion of the
presidential election, and an increase in the number of commercial
real estate transactions. Q: What contributed to and detracted from the fund's performance
over the period? A:During the 12-month period, sector selection contributed to
performance; the fund's cash position was helpful in a broadly
declining REIT market. Stock selection in the industrial sector was
the largest drag on performance, and within the sector ProLogis 
a manager and developer of commercial distribution facilities 
represented by far the largest individual detractor. ProLogis was
badly hurt by the darkening global economic outlook, short-term
debt coming due and investor perception that its development
pipeline had lost value. In addition, an overweight in the regional
mall sector subtracted from returns.2 2 "Overweight" means that a fund holds a higher weighting in a given sector or security
compared with its benchmark index; an "underweight" means that a fund holds a lower
weighting.  * Not held in the portfolio as of December 31, 2008.  Q: Describe the performance of the various REIT sectors. A:Among REIT sectors, industrials were the worst-performing
sector by a wide margin, hurt badly by the significant economic
slowdown that emerged over the course of last year. Prices of
industrial REITs were propped up in the first half of 2008 because
investors believed that some industrial companies' international
development pipelines would boost revenue. However, as the credit
crunch hit home in the fourth quarter, investors began to discount
these development pipelines and to judge harshly the industrial
REITs that would need to roll over debt in the midst of a worldwide
credit shortage. Hotels as a sector also posted negative returns for
the year based on worries that a faltering US economy would
negatively affect vacation-related and business travel. Regional malls
also disappointed, as second-tier malls faced steeply declining sales
and in some cases an inability to roll over debt. As an example, the
fund's regional mall holding General Growth Properties, Inc.* was
hit hard as investors focused on the large amount of debt the
company must refinance within the next two years in an
environment of extremely tight credit. In contrast, the self-storage and apartment sectors performed well
on a relative basis. Self-storage REITs, as represented in the
portfolio by Public Storage, Inc. and Extra Space Storage, Inc., have
profited from homeowner dislocations stemming from the home
loan/mortgage crisis. The Federal National Mortgage Association
(Fannie Mae) and the Federal Home Loan Mortgage Corporation
(Freddie Mac), despite their well-publicized troubles, have been
providing loans and other forms of liquidity to the apartment sector
despite the debt market being largely frozen. There are concerns,
though, about the availability of this liquidity going forward. Retail
REITs also slightly outperformed the benchmark, as the fund holding
Regency Centers Corp. benefited from its attractive valuation and a
stronger balance sheet than many of its competitors. Finally, the
fund's positions in several health care REITs contributed to
performance as investors viewed the sector as defensive. Q: What is your view concerning the prospects for the REIT
market going forward? A:We believe that volatility in the REIT market will likely persist
well into 2009. If and when private real estate market write-downs
come to the attention of investors, additional volatility could ensue.
Though some REITs have shown an ability to refinance debt coming
due, rolling over debt will continue to be expensive to nearly
impossible for some companies because so many fewer financing
options exist. Dividend cuts by REIT firms could also prompt
volatility, though such actions may be prudent in the long run if they
can help to shore up balance sheets. A major uncertainty for the REIT market over the coming year  as
well as for investment markets in general  is the question of when
credit flows will normalize. We have seen some signs of an increase
in lending, but nowhere near that which is required for normal
business operations. Many REITs are attractively priced at present,
but not all of them have the wherewithal (in terms of holding high
quality assets, and possessing a healthy balance sheet, able
management and sufficient access to credit) to succeed in such a
tremendously difficult economic environment. Over the coming
months we will continue to search for high-quality REITs with
experienced management teams that we believe are well positioned
to succeed over the long term. Portfolio Summary Asset Allocation(As a % of Investment Portfolio excluding
Securities Lending Collateral)
12/31/08
12/31/07Common Stocks
98%
99%Cash Equivalents
2%
1%100%
100% Sector Diversification(As a % of Common Stocks)
12/31/08
12/31/07Office
20%
21%Health Care
18%
9%Apartments
18%
16%Shopping Centers
12%
11%Regional Malls
11%
19%Storage
10%
3%Industrial
6%
9%Hotels
2%
8%Manufactured Homes
2%
2%Specialty Services
1%
1%Other

1%100%
100% Asset allocation and sector diversification are subject to change. Ten Largest Equity Holdings at December 31, 2008(59.1% of Net Assets)1.      Simon Property Group, Inc.
Owner and operator of regional shopping malls
9.1%2.      Public Storage, Inc.
Owner and operator of self-storage facilities
8.2%3.      Vornado Realty Trust
Owner and manager of investments in community shopping centers
7.8%4.      AvalonBay Communities, Inc.
Owner, operator and developer of apartment communities
6.2%5.      Ventas, Inc.
Owner and lessor of long-term health care facilities
5.8%6.      Regency Centers Corp.
Owner, developer and operator of community shopping centers
5.5%7.      Equity Residential
Owner, operator and developer of multifamily properties
4.7%8.      Federal Realty Investment Trust
Owner, manager, developer and redevelopment of prime community and
neighborhood shopping centers
4.2%9.      Nationwide Health Properties, Inc.
Owner of health care facilities
3.8%10.     Boston Properties, Inc.
Owner, manager and developer of commercial and industrial real estate
3.8% Portfolio holdings are subject to change. For more complete details about the Fund's investment portfolio, see page 20. A quarterly Fact
Sheet is available upon request. A complete list of the Fund's portfolio holdings is posted as of
the month end on www.dws-investments.com on or about the 15th day of the following
month. More frequent posting of portfolio holdings information may be made from time to time
on www.dws-investments.com. Please see the Account Management Resources section for
contact information. Following the Fund's fiscal first and third quarter-end, a complete portfolio
holdings listing is filed with the SEC on Form N-Q. The form will be available
on the SEC's Web site at www.sec.gov, and it also may be reviewed and
copied at the SEC's Public Reference Room in Washington, D.C. Information
on the operation of the SEC's Public Reference Room may be obtained by
calling (800) SEC-0330. Investment Portfolioas of December 31, 2008 Shares
Value ($)Common Stocks 97.0%Real Estate Investment Trusts ("REITs") 97.0%Apartments 17.6%American Campus Communities, Inc. (a)
810,950
16,608,256AvalonBay Communities, Inc. (a)
916,207
55,503,820BRE Properties, Inc. (a)
625,750
17,508,485Camden Property Trust
405,300
12,702,102Equity Residential
1,424,075
42,465,916Post Properties, Inc. (a)
803,925
13,264,763158,053,342Diversified 0.1%Du Pont Fabros Technology, Inc.
619,550
1,282,469Health Care 17.8%Cogdell Spencer, Inc.
237,444
2,222,476HCP, Inc.
351,500
9,761,155LTC Properties, Inc.
706,024
14,318,167Medical Properties Trust, Inc. (a)
1,507,000
9,509,170Nationwide Health Properties, Inc. (a)
1,188,999
34,148,051OMEGA Healthcare Investors, Inc.
556,057
8,880,230Senior Housing Properties Trust
1,587,808
28,453,519Ventas, Inc.
1,559,199
52,342,311159,635,079Hotels 2.2%Hospitality Properties Trust
246,158
3,660,369Host Hotels & Resorts, Inc.
2,164,500
16,385,26520,045,634Industrial 5.7%AMB Property Corp.
524,550
12,284,961DCT Industrial Trust, Inc.
1,791,593
9,065,461Liberty Property Trust (a)
749,317
17,106,907ProLogis
935,150
12,989,23351,446,562Manufactured Homes 2.1%Equity Lifestyle Properties, Inc.
488,065
18,722,173Office 19.1%BioMed Realty Trust, Inc.
1,101,160
12,905,595Boston Properties, Inc.
616,856
33,927,080Digital Realty Trust, Inc. (a)
993,020
32,620,707Kilroy Realty Corp.
257,050
8,600,893SL Green Realty Corp. (a)
501,302
12,983,722Vornado Realty Trust
1,160,450
70,033,158171,071,155Regional Malls 10.9%Simon Property Group, Inc. (a)
1,533,404
81,469,755Taubman Centers, Inc. (a)
405,252
10,317,716The Macerich Co. (a)
335,896
6,099,87197,887,342Shopping Centers 11.2%Federal Realty Investment Trust (a)
609,365
37,829,379Kite Realty Group Trust
1,177,117
6,544,771Regency Centers Corp. (a)
1,046,100
48,852,870Saul Centers, Inc.
170,550
6,736,72599,963,745Specialty Services 0.9%Entertainment Properties Trust
265,523
7,912,585Storage 9.4%Extra Space Storage, Inc.
1,071,350
11,056,332Public Storage, Inc.
925,278
73,559,60184,615,933Other 0.0%FrontLine Capital Group*
12,400
0Total Common Stocks (Cost $966,326,003)
870,636,019Securities Lending Collateral 15.4%Daily Assets Fund Institutional, 1.69% (b) (c)
(Cost $137,747,526)
137,747,526
137,747,526Cash Equivalents 2.3%Cash Management QP Trust, 1.42% (b) (Cost $20,236,292)
20,236,292
20,236,292 % of Net
Assets
Value ($)Total Investment Portfolio(Cost $1,124,309,821)+
114.7
1,028,619,837Other Assets and Liabilities, Net (a)
(14.7)
(131,501,371)Net Assets
100.0
897,118,466 * Non-income producing security.  +  The cost for federal income tax purposes was $1,224,582,688. At December 31, 2008, net
unrealized depreciation for all securities based on tax cost was $195,962,851. This
consisted of aggregate gross unrealized appreciation for all securities in which there was
an excess of value over tax cost of $63,791,449 and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over value of
$259,754,300.  (a) All or a portion of these securities were on loan amounting to $140,366,930. In addition,
included in other assets and liabilities, net is a pending sale, amounting to $116,544 that is
also on loan (see Notes to Financial Statements). The value of all securities loaned at
December 31, 2008 amounted to $140,483,474, which is 15.7% of net assets.  (b) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate
shown is the annualized seven-day yield at period end.  (c) Represents collateral held in connection with securities lending. Income earned by the
Fund is net of borrower rebates.  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. 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
SecuritiesLevel 1
$       1,008,383,545Level 2
20,236,292Level 3
0++Total
$    1,028,619,837 + + Market Value of security is $0.  The following is a reconciliation of the Fund's Level 3 investments for which significant
unobservable inputs were used in determining value at December 31, 2008: Balance as of January 1, 2008
Investments in
SecuritiesNet realized gain (loss)
$       0Change in unrealized appreciation (depreciation)
Amortization Premium/Discount
Net purchases (sales)
Net transfers in (out) of Level 3
Balance as of December 31, 2008
$    0 The accompanying notes are an integral part of the financial statements. Financial Statements Statement of Assets and Liabilitiesas of December 31, 2008AssetsInvestments:Investments in securities, at value (cost $966,326,003)  including
$140,366,930 of securities loaned
$       870,636,019Investment in Daily Assets Fund Institutional (cost $137,747,526)*
137,747,526Investment in Cash Management QP Trust (cost $20,236,292)
20,236,292Total investments, at value (cost $1,124,309,821)
1,028,619,837Cash
10,000Receivable for investments sold
12,269,484Dividends receivable
6,854,361Interest receivable
147,993Receivable for Fund shares sold
15,308,153Due from Advisor
25,095Other assets
305,320Total assets
1,063,540,243LiabilitiesPayable for investments purchased
19,954,558Payable for Fund shares redeemed
7,187,859Payable upon return of securities loaned
137,747,526Accrued management fee
277,254Other accrued expenses and payables
1,254,580Total liabilities
166,421,777Net assets, at value
$    897,118,466Net Assets Consist ofUndistributed net investment income
2,658,641Net unrealized appreciation (depreciation) on investments
(95,689,984)Accumulated net realized gain (loss)
(377,626,647)Paid-in capital
1,367,776,456Net assets, at value
$    897,118,466 * Represents collateral on securities loaned  The accompanying notes are an integral part of the financial statements. Statement of Assets and Liabilitiesas of December 31, 2008 (continued)Net Asset ValueClass A
Net Asset Value and redemption price(a) per share
($383,559,072 ÷ 34,590,659 outstanding shares of beneficial interest,
$.001 par value, unlimited number of shares authorized)
$    11.09Maximum offering price per share (100 ÷ 94.25 of $11.09)
$    11.77Class B
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($7,980,285 ÷ 719,673 outstanding shares
of beneficial interest, $.001 par value, unlimited number of shares
authorized)
$    11.09Class C
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($27,206,570 ÷ 2,447,274 outstanding
shares of beneficial interest, $.001 par value, unlimited number of shares
authorized)
$    11.12Class R
Net Asset Value, offering and redemption price(a) per share
($9,125,635 ÷ 821,183 outstanding shares of beneficial interest,
$.001 par value, unlimited number of shares authorized)
$    11.11Class S
Net Asset Value, offering and redemption price(a) per share
($173,523,258 ÷ 15,614,384 outstanding shares of beneficial interest,
$.001 par value, unlimited number of shares authorized)
$    11.11Institutional Class
Net Asset Value, offering and redemption price(a)per share
($295,723,646 ÷ 26,655,546 outstanding shares of beneficial interest,
$.001 par value, unlimited number of shares authorized)
$    11.09 (a) Redemption price per share for shares held less than 15 days is equal to net asset value
less a 2% redemption fee.  The accompanying notes are an integral part of the financial statements. Statement of Operationsfor the year ended December 31, 2008Investment IncomeIncome:Dividends (net of foreign taxes withheld of $8,901)
$       40,741,453Interest  Cash Management QP Trust
382,782Securities lending income, including income from Daily Assets Fund
Institutional, net of borrower rebates
2,325,754Total Income
43,449,989Expenses:Management fee
5,070,966Administration fee
1,293,415Services to shareholders
2,188,588Custodian fee
49,954Distribution and service fees
1,887,783Professional fees
144,110Trustees' fees and expenses
54,757Reports to shareholders
174,244Registration fees
111,420Other
80,552Total expenses before expense reductions
11,055,789Expense reductions
(16,295)Total expenses after expense reductions
11,039,494Net investment income
32,410,495Realized and Unrealized Gain (Loss)Net realized gain (loss) from:Investments
(371,356,924)Capital gains dividends received
14,043,060Payments by affiliates (see Note H)
2,935(357,310,929)Change in net unrealized appreciation (depreciation) on investments
(241,318,383)Net gain (loss)
(598,629,312)Net increase (decrease) in net assets resulting from operations
$    (566,218,817) The accompanying notes are an integral part of the financial statements. Statement of Changes in Net AssetsYears Ended December 31,Increase (Decrease) in Net Assets
2008
2007Operations:Net investment income
$       32,410,495
$       30,890,075Net realized gain (loss)
(357,310,929)
130,684,127Change in net unrealized appreciation (depreciation)
(241,318,383)
(459,143,115)Net increase (decrease) in net assets resulting from
operations
(566,218,817)
(297,568,913)Distributions to shareholders from:Net investment income:Class A
(15,451,813)
(10,629,179)Class B
(271,535)
(131,791)Class C
(881,261)
(457,078)Class R
(363,996)
(239,913)Class S
(7,352,396)
(4,173,832)Institutional Class
(12,763,355)
(9,692,700)Net realized gains:Class A
(2,916,245)
(78,698,274)Class B
(85,734)
(2,636,631)Class C
(244,297)
(8,119,379)Class R
(73,763)
(2,041,136)Class S
(1,317,902)
(36,201,231)Institutional Class
(2,172,550)
(53,630,596)Return of capital:Class A
(2,771,938)
Class B
(48,711)
Class C
(158,092)
Class R
(65,298)
Class S
(1,318,964)
Institutional Class
(2,289,649)
Total distributions
(50,547,499)
(206,651,740)Fund share transactions:Proceeds from shares sold
533,653,212
1,094,894,412Reinvestment of distributions
42,616,112
180,544,640Cost of shares redeemed
(449,761,226)
(1,515,180,643)Redemption fees
144,167
158,659Net increase (decrease) in net assets from Fund share
transactions
126,652,265
(239,582,932)Increase (decrease) in net assets
(490,114,051)
(743,803,585)Net assets at beginning of period
1,387,232,517
2,131,036,102Net assets at end of period (including undistributed net
investment income of $2,658,641 and $7,421,043,
respectively)
$    897,118,466
$    1,387,232,517 The accompanying notes are an integral part of the financial statements. Financial Highlights Class A
Years Ended December 31,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    19.07
$    26.53
$    20.83
$    20.40
$    17.09Income (loss) from investment operations:
Net investment incomea
.41
.39
.39
.42
.48Net realized and unrealized gain (loss)
(7.75)
(4.61)
7.33
1.96
4.79Total from investment operations
(7.34)
(4.22)
7.72
2.38
5.27Less distributions from:
Net investment income
(.46)
(.35)
(.51)
(.65)
(.58)Net realized gains
(.09)
(2.89)
(1.51)
(1.30)
(1.38)Return of capital
(.09)



Total distributions
(.64)
(3.24)
(2.02)
(1.95)
(1.96)Redemption fee
.00*
.00*
.00*
.00*
Net asset value, end of period
$    11.09
$    19.07
$    26.53
$    20.83
$    20.40Total Return (%)b
(39.34)
(15.89)
37.73c
11.89
31.57Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
384
596
1,205
723
814Ratio of expenses before expense reductions
(%)
.94
.97
.91
.80
.82Ratio of expenses after expense
reductions (%)
.94
.97
.82
.80
.82Ratio of net investment income  (%)
2.42
1.50
1.62
2.05
2.60Portfolio turnover rate (%)
84
81
60
66d
79aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.dExcludes portfolio securities delivered as a result of processing in-kind redemptions.*Amount is less than $.005. Class B
Years Ended December 31,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    19.04
$    26.48
$    20.83
$    20.40
$    17.08Income (loss) from investment operations:
Net investment incomea
.26
.19
.18
.23
.30Net realized and unrealized gain (loss)
(7.72)
(4.60)
7.33
1.96
4.80Total from investment operations
(7.46)
(4.41)
7.51
2.19
5.10Less distributions from:
Net investment income
(.31)
(.14)
(.35)
(.46)
(.40)Net realized gains
(.09)
(2.89)
(1.51)
(1.30)
(1.38)Return of capital
(.09)



Total distributions
(.49)
(3.03)
(1.86)
(1.76)
(1.78)Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    11.09
$    19.04
$    26.48
$    20.83
$    20.40Total Return (%)b
(39.71)
(16.51)
36.53c
10.84
30.24Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
8
20
36
29
32Ratio of expenses before expense reductions
(%)
1.82
1.73
1.73
1.72
1.79Ratio of expenses after expense
reductions (%)
1.82
1.73
1.72
1.72
1.79Ratio of net investment income (%)
1.54
.74
.72
1.13
1.63Portfolio turnover rate (%)
84
81
60
66d
79aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.dExcludes portfolio securities delivered as a result of processing in-kind redemptions.*Amount is less than $.005. Class C
Years Ended December 31,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    19.10
$    26.55
$    20.88
$    20.44
$    17.12Income (loss) from investment operations:
Net investment incomea
.27
.20
.20
.26
.32Net realized and unrealized gain (loss)
(7.75)
(4.61)
7.35
1.96
4.80Total from investment operations
(7.48)
(4.41)
7.55
2.22
5.12Less distributions from:
Net investment income
(.32)
(.15)
(.37)
(.48)
(.42)Net realized gains
(.09)
(2.89)
(1.51)
(1.30)
(1.38)Return of capital
(.09)



Total distributions
(.50)
(3.04)
(1.88)
(1.78)
(1.80)Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    11.12
$    19.10
$    26.55
$    20.88
$    20.44Total Return (%)b
(39.76)
(16.46)c
36.67c
11.00
30.35Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
27
60
126
93
81Ratio of expenses before expense reductions
(%)
1.78
1.69
1.64
1.61
1.68Ratio of expenses after expense
reductions (%)
1.78
1.69
1.62
1.61
1.68Ratio of net investment income  (%)
1.58
.78
.82
1.24
1.74Portfolio turnover rate (%)
84
81
60
66d
79aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.dExcludes portfolio securities delivered as a result of processing in-kind redemptions.*Amount is less than $.005. Class R
Years Ended December 31,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    19.09
$    26.55
$    20.83
$    20.39
$    17.09Income (loss) from investment operations:
Net investment incomea
.38
.34
.34
.35
.38Net realized and unrealized gain (loss)
(7.76)
(4.61)
7.34
1.96
4.81Total from investment operations
(7.38)
(4.27)
7.68
2.31
5.19Less distributions from:
Net investment income
(.42)
(.30)
(.45)
(.57)
(.51)Net realized gains
(.09)
(2.89)
(1.51)
(1.30)
(1.38)Return of capital
(.09)



Total distributions
(.60)
(3.19)
(1.96)
(1.87)
(1.89)Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    11.11
$    19.09
$    26.55
$    20.83
$    20.39Total Return (%)
(39.42)
(16.00)
37.45
11.51
31.01Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
9
16
25
9
2Ratio of expenses (%)
1.14
1.14
1.03
1.16
1.33Ratio of net investment income (%)
2.22
1.33
1.41
1.69
2.09Portfolio turnover rate (%)
84
81
60
66b
79aBased on average shares outstanding during the period.bExcludes portfolio securities delivered as a result of processing in-kind redemptions.*Amount is less than $.005. Class S
Years Ended December 31,
2008
2007
2006
2005aSelected Per Share DataNet asset value, beginning of period
$    19.11
$    26.53
$    20.80
$    19.81Income (loss) from investment operations:
Net investment incomeb
.44
.44
.41
.29Net realized and unrealized gain (loss)
(7.77)
(4.60)
7.35
2.45Total from investment operations
(7.33)
(4.16)
7.76
2.74Less distributions from:
Net investment income
(.49)
(.37)
(.52)
(.45)Net realized gains
(.09)
(2.89)
(1.51)
(1.30)Return of capital
(.09)


Total distributions
(.67)
(3.26)
(2.03)
(1.75)Redemption fees***
.00
.00
.00
.00Net asset value, end of period
$    11.11
$    19.11
$    26.53
$    20.80Total Return (%)
(39.34)
(15.63)
37.98
13.84**Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
174
288
19
2Ratio of expenses (%)
.79
.83
.73
.76*Ratio of net investment income (%)
2.57
1.64
1.71
2.00*Portfolio turnover rate (%)
84
81
60
66caFor the period from May 2, 2005 (commencement of operations of Class S shares) to
December 31, 2005.bBased on average shares outstanding during the period.cExcludes portfolio securities delivered as a result of processing in-kind redemptions.*Annualized**Not annualized***Amount is less than $.005. Institutional Class
Years Ended December 31,
2008
2007
2006
2005
2004Selected Per Share DataNet asset value, beginning of period
$    19.09
$    26.53
$    20.81
$    20.38
$    17.08Income (loss) from investment operations:
Net investment incomea
.47
.49
.46
.48
.53Net realized and unrealized gain (loss)
(7.76)
(4.61)
7.33
1.96
4.77Total from investment operations
(7.29)
(4.12)
7.79
2.44
5.30Less distributions from:
Net investment income
(.53)
(.43)
(.56)
(.71)
(.62)Net realized gains
(.09)
(2.89)
(1.51)
(1.30)
(1.38)Return of capital
(.09)



Total distributions
(.71)
(3.32)
(2.07)
(2.01)
(2.00)Redemption fees
.00*
.00*
.00*
.00*
Net asset value, end of period
$    11.09
$    19.09
$    26.53
$    20.81
$    20.38Total Return (%)
(38.99)
(15.50)b
38.14b
12.19
31.88Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
296
409
720
464
353Ratio of expenses before expense reductions
(%)
.63
.57
.58
.53
.54Ratio of expenses after expense
reductions (%)
.63
.56
.54
.53
.54Ratio of net investment income (%)
2.73
1.91
1.90
2.32
2.88Portfolio turnover rate (%)
84
81
60
66c
79aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced.cExcludes portfolio securities delivered as a result of processing in-kind redemptions.*Amount is less than $.005 Notes to Financial Statements A. Significant Accounting Policies DWS RREEF Real Estate Securities Fund (the "Fund") is a non-diversified
series of DWS Advisor Funds (the "Trust") which is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company organized as a business trust
under the laws of the state of Delaware. The Fund offers multiple classes of shares which provide investors with
different purchase options. Class A shares are offered to investors subject to
an initial sales charge. Class B shares are offered to investors without an
initial sales charge but are subject to higher ongoing expenses than Class A
shares and a contingent deferred sales charge payable upon certain
redemptions. Class B shares automatically convert to Class A shares six
years after issuance. Class C shares are offered to investors without an
initial sales charge and are subject to higher ongoing expenses than Class A
shares and a contingent deferred sales charge payable upon certain
redemptions within one year of purchase. Class C shares do not
automatically convert into another class. Institutional Class shares are
offered to a limited group of investors, are not subject to initial or contingent
deferred sales charges and have lower ongoing expenses than other
classes. Class R shares are only available to participants in certain
retirement plans and are offered to investors without an initial sales charge
or contingent deferred sales charge. Class S shares are not subject to initial
or contingent deferred sales charges and are generally not available to new
investors except under certain circumstances. Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on
the basis of relative net assets by the holders of all classes of shares,
except that each class bears certain expenses unique to that class such as
distribution and service fees, services to shareholders and certain other
class-specific expenses. Differences in class-level expenses may result in
payment of different per share dividends by class. All shares of the Fund
have equal rights with respect to voting subject to class-specific
arrangements. The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America which require
the use of management estimates. Actual results could differ from those
estimates. The policies described below are followed consistently by the
Fund in the preparation of its financial statements. Security Valuation. Investments are stated at value determined as of the
close of regular trading on the New York Stock Exchange on each day the
exchange is open for trading. Equity securities are valued at the most recent
sale price or official closing price reported on the exchange (US or foreign) or
over-the-counter market on which the security is traded most extensively.
Securities for which no sales are reported are valued at the calculated mean
between the most recent bid and asked quotations on the relevant market
or, if a mean cannot be determined, at the most recent bid quotation. Money market instruments purchased with an original or remaining maturity
of sixty days or less, maturing at par, are valued at amortized cost.
Investments in Cash Management QP Trust are valued at their net asset
value each business day. Securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to
reflect fair value are valued in a manner that is intended to reflect their fair
value as determined in accordance with procedures approved by the
Trustees. The Fund 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 the Fund's
Investment Portfolio. Securities Lending. The Fund may lend securities to financial institutions.
The Fund retains beneficial ownership of the securities it has loaned and
continues to receive interest and dividends paid by the issuer of securities
and to participate in any changes in their market value. The Fund requires
the borrowers of the securities to maintain collateral with the Fund
consisting of liquid, unencumbered assets having a value at least equal to
the value of the securities loaned. When the collateral falls below specified
amounts, the lending agents will use their best efforts to obtain additional
collateral on the next business day to meet required amounts under the
security lending agreement. The Fund may invest the cash collateral into a
joint trading account in an affiliated money market fund pursuant to
Exemptive Orders issued by the SEC. The Fund receives compensation for
lending its securities either in the form of fees or by earning interest on
invested cash collateral net of borrower rebates and fees paid to a lending
agent. Either the Fund or the borrower may terminate the loan. There may
be risks of delay and costs in recovery of securities or even loss of rights in
the collateral should the borrower of the securities fail financially. The Fund
is also subject to all investment risks associated with the reinvestment of
any cash collateral received, including, but not limited to, interest rate, credit
and liquidity risk associated with such investments. Federal Income Taxes. The Fund's policy is to comply with the requirements
of the Internal Revenue Code, as amended, which are applicable to
regulated investment companies, and to distribute all of its taxable income
to its shareholders. At December 31, 2008, the Fund had a net tax basis capital loss
carryforward of approximately $79,152,000, which may be applied against
any realized net taxable capital gains of each succeeding year until fully
utilized or until December 31, 2016, the expiration date, whichever occurs
first. In addition, from November 1, 2008 through December 31, 2008, the Fund
incurred approximately $198,202,000 of net realized capital losses. As
permitted by tax regulations, the Fund intends to elect to defer these losses
and treat them as arising in the fiscal year ending December 31, 2009. The 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 the Fund's financial statements. The Fund's federal tax returns
for the prior three years remain subject to examination by the Internal
Revenue Service. Distribution of Income and Gains. Net investment income of the Fund is
declared and distributed to shareholders quarterly. Net realized gains from
investment transactions, in excess of available capital loss carryforwards,
would be taxable to the Fund if not distributed, and, therefore, will be
distributed to shareholders at least annually. The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from accounting principles generally accepted
in the United States of America. These differences primarily relate to certain
securities sold at a loss. As a result, net investment income and net realized
gain (loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. Accordingly, the Fund
may periodically make reclassifications among certain of its capital accounts
without impacting the net asset value of the Fund. At December 31, 2008, the Fund's components of distributable earnings
(accumulated losses) on a tax-basis were as follows: Capital loss carryforwards
$       (79,152,000)Unrealized appreciation (depreciation) on investments
$       (195,962,851) In addition, the tax character of distributions paid to shareholders by the
Fundissummarized as follows: Years Ended December 31,2008
2007Distributions from ordinary income*
$       37,090,215
$       60,394,626Distributions from long-term capital gains
$       6,804,632
$       146,257,114Return of capital
$       6,652,652
$        * For tax purposes short-term capital gains distributions are considered ordinary income
distributions.  Redemption Fees. The Fund imposes a redemption fee of 2% of the total
redemption amount on all Fund shares redeemed or exchanged within 15
days of buying them, either by purchase or exchange. This fee is assessed
and retained by the Fund for the benefit of the remaining shareholders. The
redemption fee is accounted for as an addition to paid-in capital. Contingencies. In the normal course of business, the Fund may enter into
contracts with service providers that contain general indemnification
clauses. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the
Fund that have not yet been made. However, based on experience, the Fund
expects the risk of loss to be remote. Real Estate Investment Trusts. The Fund periodically recharacterizes
distributions received from a Real Estate Investment Trust ("REIT")
investment based on information provided by the REIT into the following
categories: ordinary income, long-term and short-term capital gains, and
return of capital. If information is not available timely from a REIT, the
recharacterization will be estimated and a recharacterization will be made in
the following year when such information becomes available. Distributions
received from REITs in excess of income are recorded as either a reduction
of cost of investments or realized gains. The Fund distinguishes between
dividends on a tax basis and a financial reporting basis and only distributions
in excess of tax basis earnings and profits are reported in the financial
statements as a return of capital for tax reporting purposes. 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. Other. Investment transactions are accounted for on the trade date plus one
basis for daily net asset value calculations. However, for financial reporting
purposes, investment security transactions are reported on trade date.
Interest income is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date net of foreign withholding taxes. Realized
gains and losses from investment transactions are recorded on an identified
cost basis. B. Purchases and Sales of Securities During the year ended December 31, 2008, purchases and sales of
investment securities (excluding short-term investments) aggregated
$1,201,518,434 and $1,083,196,775, respectively. C. Related Parties Management Agreement. Under the Investment Management Agreement
with Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG,
the Advisor directs the investments of the Fund in accordance with its
investment objectives, policies and restrictions. The Advisor determines the
securities, instruments and other contracts relating to investments to be
purchased, sold or entered into by the Fund or delegates such responsibility
to the Fund's subadvisor. RREEF America L.L.C. ("RREEF") is the subadvisor for the Fund. While
DIMA is the investment advisor to the Fund, the day-to-day activities of
managing the Fund's portfolio have been delegated to RREEF. RREEF is
responsible for decisions to buy and sell securities for the Fund and
conducts the research that leads to the purchase and sale decisions. DIMA
compensates RREEF out of its management fee. Under the Investment Management Agreement with the Advisor, the Fund
pays a monthly management fee based on the Fund's average daily net
assets, computed and accrued daily and payable monthly, at the following
annual rates: First $100 million of the Fund's average daily net assets
.565%Next $100 million of such net assets
.465%Next $100 million of such net assets
.415%Over $300 million of such net assets
.365% Accordingly for the year ended December 31, 2008, the fee pursuant to the
management agreement was equivalent to an annual effective rate of
0.39% of the Fund's average daily net assets. Administration Fee.Pursuant to the Administrative Services Agreement,
DIMA provides most administrative services to the Fund. For all services
provided under the Administrative Services Agreement, the Fund pays the
Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's average
daily net assets, computed and accrued daily and payable monthly. For the
year ended December 31, 2008, the Advisor received an Administration Fee
of $1,293,415, of which $67,569 is unpaid. Service Provider Fees. DWS Investments Service Company ("DISC"), an
affiliate of the Advisor, is the transfer agent, dividend-paying agent and
shareholder service agent for the Fund. Pursuant to a sub-transfer agency
agreement between DISC and DST Systems, Inc. ("DST"), DISC has
delegated certain transfer agent, dividend-paying agent and shareholder
service agent functions to DST. DISC compensates DST out of the
shareholder servicing fee it receives from the Fund. For the year ended
December 31, 2008, the amounts charged to the Fund by DISC were as
follows: Services to Shareholders
Total
Aggregated
Unpaid at
December 31,
2008Class A
$       767,541
$       202,536Class B
34,671
7,929Class C
89,816
21,801Class R
4,085
105Class S
57,346
16,083Institutional Class
106,117
36,451$    1,059,576
$    284,905 Distribution and Service Fees. Under the Fund's Class B, Class C and Class
R 12b-1 Plans, DWS Investments Distributors, Inc. ("DIDI"), an affiliate of
the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net
assets of each of Class B and C shares and 0.25% of average daily net
assets of Class R shares. In accordance with the Fund's Underwriting and
Distribution Services Agreement, DIDI enters into related selling group
agreements with various firms at various rates for sales of Class B, C and R
shares. For the year ended December 31, 2008, the Distribution Fee was as
follows: Distribution Fee
Total
Aggregated
Unpaid at
December 31,
2008Class B
$       112,212
$       5,017Class C
340,962
14,752Class R
35,358
1,971$    488,532
$    21,740 In addition, DIDI provides information and administrative services for a fee
("Service Fee") to Class A, B, C and R shareholders at an annual rate of up
to 0.25% of average daily net assets for each such class. DIDI in turn has
various agreements with financial services firms that provide these services
and pays these fees based upon the assets of shareholder accounts the
firms service. For the year ended December 31, 2008, the Service Fee was
as follows: Service Fee
Total
Aggregated
Unpaid at
December 31,
2008
Annual
Effective RateClass A
$       1,233,061
$       109,333
.22%Class B
37,181
2,602
.25%Class C
114,341
7,693
.25%Class R
14,668
1,875
.10%$    1,399,251
$    121,503 Underwriting Agreement and Contingent Deferred Sales Charge. DIDI is
the principal underwriter for the Fund. Underwriting commissions paid in
connection with the distribution of Class A shares for the year ended
December 31, 2008 aggregated $13,400. In addition, DIDI receives any contingent deferred sales charge ("CDSC")
from Class B share redemptions occurring within six years of purchase and
Class C share redemptions occurring within one year of purchase. There is
no such charge upon redemption of any share appreciation or reinvested
dividends. The CDSC is based on declining rates ranging from 4% to 1% for
Class B and 1% for Class C, of the value of the shares redeemed. For the
year ended December 31, 2008, the CDSC for Class B and C shares
aggregated $46,117 and $5,375, respectively. A deferred sales charge of up
to 1% is assessed on certain redemptions of Class A shares. For the year
ended December 31, 2008, DIDI received $2,247 for Class A shares. Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA
is compensated for providing typesetting and certain regulatory filing
services to the Fund. For the year ended December 31, 2008, the amount
charged to the Fund by DIMA included in the Statement of Operations
under "reports to shareholders" aggregated $21,176, of which $7,978 is
unpaid. Trustees' Fees and Expenses. The Fund paid each Trustee not affiliated with
the Advisor retainer fees plus specified amounts for various committee
services and for the Board Chairperson and Vice Chairperson. In connection with the board consolidation on April 1, 2008, of the two DWS
Funds' Boards of Trustees, certain Independent Board Members retired prior
to their normal retirement date, and received a one-time retirement benefit.
DIMA has agreed to reimburse the Funds for the cost of this benefit. During
the period ended December 31, 2008, the Fund paid its allocated portion of
the retirement benefit of $7,041 to the non-continuing Independent Board
Members, and the Fund was reimbursed by DIMA for this payment. Cash Management QP Trust. Pursuant to an Exemptive Order issued by the
SEC, the Fund may invest in the Cash Management QP Trust (the
"QP Trust") and other affiliated funds managed by the Advisor. The QP Trust
seeks to provide as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. The QP Trust does
not pay the Advisor a management fee for the affiliated funds' investments
in the QP Trust. D. Fee Reductions The Fund has entered into an arrangement with its custodian and transfer
agent whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of the Fund's custodian expenses. During the year
ended December 31, 2008, the Fund's custodian fee was reduced by $4,260
and $4,994, respectively, for custody and transfer agent credits earned. E. Line of Credit The Fund and other affiliated funds (the "Participants") share in a
$490 million revolving credit facility provided by a syndication of banks. The
Fund may borrow for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual
commitment fee which is allocated based on net assets, among each of the
Participants. Interest is calculated at the Federal Funds Rate plus
0.35 percent. The Fund may borrow up to a maximum of 20 percent of its
net assets under the agreement. F. Share Transactions The following table summarizes share and dollar activity in the Fund: Year Ended December 31, 2008
Year Ended December 31, 2007Shares
Dollars
Shares
DollarsShares soldClass A
14,526,021
$       230,838,467
11,076,640
$       290,450,889Class B
47,956
811,884
45,245
1,162,364Class C
571,139
9,653,142
130,543
3,225,625Class R
305,266
5,181,796
316,720
8,412,285Class S
3,483,124
56,921,432
17,805,605
478,512,359Institutional Class
14,004,334
230,246,491
12,065,861
313,130,890$    533,653,212

$1,094,894,412Shares issued to shareholders in reinvestment of distributionsClass A
1,308,458
$       19,531,417
4,346,577
$       83,562,625Class B
23,224
350,396
126,730
2,391,850Class C
71,151
1,057,283
373,505
7,080,136Class R
33,542
498,794
118,064
2,265,797Class S
645,899
9,703,967
2,107,664
40,353,684Institutional Class
760,757
11,474,255
2,316,308
44,890,548$    42,616,112

$    180,544,640Shares redeemedClass A
(12,485,957)
$       (200,484,097)
(29,614,915)
$       (786,247,514)Class B
(378,731)
(6,232,356)
(493,781)
(12,495,549)Class C
(1,316,246)
(21,741,621)
(2,129,969)
(54,755,327)Class R
(340,935)
(5,442,833)
(538,618)
(13,780,739)Class S
(3,583,177)
(59,319,269)
(5,568,984)
(140,243,328)Institutional Class
(9,524,983)
(156,541,050)
(20,108,984)
(507,658,186)$    (449,761,226)

$    (1,515,180,643)Redemption fees

$    144,167

$    158,659Net increase (decrease)Class A
3,348,522
$       49,897,045
(14,191,698)
$       (412,154,512)Class B
(307,551)
(5,069,321)
(321,806)
(8,941,285)Class C
(673,956)
(11,030,438)
(1,625,921)
(44,449,392)Class R
(2,127)
248,451
(103,834)
(3,102,629)Class S
545,846
7,410,916
14,344,285
378,677,251Institutional Class
5,240,108
85,195,612
(5,726,815)
(149,612,365)$    126,652,265

$    (239,582,932) G. Real Estate Concentration Risk The Fund concentrates its investments in real estate securities, including
REITs. A fund with a concentrated portfolio is vulnerable to the risks of the
industry in which it invests and is subject to greater risks and market
fluctuations than funds investing in a broader range of industries. Real
estate securities are susceptible to the risks associated with direct
ownership of real estate such as declines in property values; increases in
property taxes, operating expenses, interest rates or competition; zoning
changes; and losses from casualty and condemnation. H. Payments Made by Affiliates During the year ended December 31, 2008, the Advisor fully reimbursed the
Fund $2,935 for losses incurred on operation errors. The amount of the
losses was less than 0.01% of the Fund's average daily net assets, thus
having no impact on the Fund's total return. Report of Independent Registered
Public Accounting Firm To the Trustees ofDWSAdvisor Funds and Shareholders of DWS RREEF
Real Estate Securities Fund: In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of DWS RREEF Real Estate
Securities Fund (the "Fund") at December 31, 2008, and the results of its
operations, the changes in its net assets and the financial highlights for each
of the periods indicated therein, in conformity with accounting principles
generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 2008by correspondence with
the custodian and brokers, provide a reasonable basis for our opinion. Boston, Massachusetts
February 27, 2009
PricewaterhouseCoopers LLP Tax Information(Unaudited) The Fund paid distributions of $0.09 per share from net long-term capital
gains during the year ended December 31, 2008, of which 100% represents
15% rate gains. Please consult a tax advisor if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have specific
questions about your account, please call (800) 621-1048 Investment Management Agreement
Approval The Board of Trustees, including the Independent Trustees, approved the
renewal of your Fund's investment management agreement (the
"Agreement") with Deutsche Investment Management Americas Inc.
("DIMA") and sub-advisory agreement (the "Sub-Advisory Agreement," and
together with the Agreement, the "Agreements") between DIMA and
RREEF America LLC ("RREEF"), an affiliate of DIMA, in September 2008. In terms of the process that the Board followed prior to approving the
Agreements, shareholders should know that: •    At the present time, all but one of your Fund's Trustees are independent
of DIMA and its affiliates. •    The Trustees meet frequently to discuss fund matters. Each year, the
Trustees dedicate part or all of several meetings to contract review
matters. Over the course of several months, the Board's Contract
Committee, in coordination with the Board's Equity Oversight
Committee, reviewed comprehensive materials received from DIMA,
independent third parties and independent counsel. These materials
included an analysis of the Fund's performance, fees and expenses, and
profitability compiled by the Fund's independent fee consultant. The
Board also received extensive information throughout the year regarding
performance of the Fund. •    The Trustees regularly meet privately with their independent counsel
(and, as needed, other advisors) to discuss contract review and other
matters. In addition, the Trustees were also advised by the Fund's
independent fee consultant in the course of their review of the Fund's
contractual arrangements and considered a comprehensive report
prepared by the independent fee consultant in connection with their
deliberations (the "IFC Report"). •    In connection with reviewing the Agreements, the Board also reviewed
the terms of the Fund's Rule 12b-1 plan, distribution agreement,
administrative services agreement, transfer agency agreement and other
material service agreements. •    Based on its evaluation of the information provided, the Contract
Committee presented its findings and recommendations to the
Independent Trustees as a group. The Independent Trustees reviewed
the Contract Committee's findings and recommendations and presented
their recommendations to the full Board. In connection with the contract review process, the Contract Committee
and the Board considered the factors discussed below, among others. The
Board also considered that DIMA and its predecessors have managed the
Fund since its inception, and the Board believes that a long-term relationship
with a capable, conscientious advisor is in the best interests of the Fund.
The Board considered, generally, that shareholders chose to invest or remain
invested in the Fund knowing that DIMA managed the Fund, and that the
Agreements were approved by the Fund's shareholders at a special meeting
held in 2006. DIMA and RREEF are 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 and RREEF'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 Agreements, including the scope of advisory services provided under
the Agreements. The Board noted that, under the Agreements, DIMA and
RREEF provide 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 and RREEF to attract
and retain high-quality personnel, and the organizational depth and stability
of DIMA and RREEF. The Board reviewed the Fund's performance over
short-term and long-term periods and compared those returns to various
agreed-upon performance measures, including market indices and a peer
universe compiled by the independent fee consultant using information
supplied by Lipper Inc. ("Lipper"). The Board also noted that it has put a
process into place of identifying "Focus Funds" (e.g., funds performing
poorly relative to their benchmark or a peer group compiled by Lipper), and
receives more frequent reporting and information from DIMA regarding such
funds, along with DIMA's remedial plans to address underperformance. The
Board believes this process is an effective manner of identifying and
addressing underperforming funds. Based on the information provided, the
Board noted that for each of the one-, three- and five-year periods ended
December 31, 2007, the Fund's performance (Class A shares) was in the 2nd
quartile of the applicable Lipper universe (the 1st quartile being the best
performers and the 4th quartile being the worst performers). The Board also
observed that the Fund has outperformed its benchmark in each of the one-,
three- and five-year periodsended 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 and RREEF historically have been and continue
to be satisfactory. Fees and Expenses. The Board considered the Fund's investment
management fee schedule, sub-advisory 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). With respect to the sub-advisory fee paid to RREEF, the Board noted
that the fee is paid by DIMA out of its fee and not directly by the Fund. The
Board noted that the Fund's Class A shares' total (net) operating expenses
(excluding 12b-1 fees) were expected to be lower than the median (1st
quartile) of the applicable Lipper expense universe (based on Lipper data
provided as of December 31, 2007, and analyzing Lipper expense universe
Class A expenses less any applicable 12b-1 fees) ("Lipper Universe
Expenses"). The Board also reviewed each other share class's total (net)
operating expenses relative to the Lipper Universe Expenses. The Board
considered the Fund's management fee rate as compared to fees charged
by DIMA and certain of its affiliates for comparable mutual funds and
considered differences in fund and fee structures between the DWS Funds.
The Board also considered how the Fund's total (net) operating expenses
compared to the total (net) operating expenses of a more customized peer
group selected by Lipper (based on such factors as asset size). On the basis of the information provided, the Board concluded that
management fees were reasonable and appropriate in light of the nature,
quality and extent of services provided by DIMA and RREEF. Profitability. The Board reviewed detailed information regarding revenues
received by DIMA under the Agreement. The Board considered the
estimated costs and pre-tax profits realized by DIMA from advising the DWS
Funds, as well as estimates of the pre-tax profits attributable to managing
the Fund in particular. The Board also received information regarding the
estimated enterprise-wide profitability of the DWS Investments organization
with respect to all fund services in totality and by fund. The Board reviewed
DIMA's methodology in allocating its costs to the management of the Fund.
Based on the information provided, the Board concluded that the pre-tax
profits realized by DIMA in connection with the management of the Fund
were not unreasonable. The Board also reviewed information regarding the
profitability of certain similar investment management firms. The Board
noted that while information regarding the profitability of such firms is
limited (and in some cases is not necessarily prepared on a comparable
basis), DIMA and its affiliates' overall profitability with respect to the DWS
Investments fund complex (after taking into account distribution and other
services provided to the funds by DIMA and its affiliates) was lower than the
overall profitability levels of many comparable firms for which such data was
available. Economies of Scale. The Board considered whether there are economies of
scale with respect to the management of the Fund and whether the Fund
benefits from any economies of scale. The Board noted that the Fund's
management fee schedule includes fee breakpoints. The Board concluded
that the Fund's fee schedule represents an appropriate sharing between the
Fund and DIMA of such economies of scale as may exist in the
management of the Fund at current asset levels. Other Benefits to DIMA and Its Affiliates. The Board also considered the
character and amount of other incidental benefits received by DIMA and its
affiliates, including any fees received by DIMA for administrative services
provided to the Fund and any fees received by an affiliate of DIMA for
distribution services. The Board also considered benefits to DIMA related to
brokerage and soft-dollar allocations, including allocating brokerage to pay
for research generated by parties other than the executing broker dealers,
which pertain primarily to funds investing in equity securities, along with the
incidental public relations benefits to DIMA related to DWS Funds
advertising and cross-selling opportunities among DWS Investments
products and services. The Board concluded that management fees were
reasonable in light of these fallout benefits. Compliance. The Board considered the significant attention and resources
dedicated by DIMA to documenting and enhancing its compliance
processes in recent years. The Board noted in particular (i) the experience
and seniority of DIMA's chief compliance officer; (ii) the large number of
compliance personnel who report to DIMA's chief compliance officer; and (iii)
the substantial commitment of resources by DIMA and its affiliates to
compliance matters. Based on all of the information considered and the conclusions reached, the
Board (including a majority of the Independent Trustees) determined that the
continuation of the Agreements 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
Agreements. 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. res_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. res_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 MembersName, Year of
Birth, Position
with the Fund
and Length of
Time Served1
Business Experience and Directorships During the
Past Five Years
Number of
Funds in
DWS Fund
Complex
OverseenPaul K. Freeman
(1950)Chairperson since
20092Board Member
since 1993
Consultant, World Bank/Inter-American Development Bank;
Governing Council of the Independent Directors Council
(governance, executive committees); formerly, Project Leader,
International Institute for Applied Systems Analysis
(1998-2001); Chief Executive Officer, The Eric Group, Inc.
(environmental insurance) (1986-1998)
134Dawn-Marie
Driscoll (1946)Board Member
since 1987
President, Driscoll Associates (consulting firm); Executive
Fellow, Center for Business Ethics, Bentley University;
formerly, Partner, Palmer & Dodge (1988-1990); Vice
President of Corporate Affairs and General Counsel, Filene's
(1978-1988). Directorships: Trustee of 20 open-end mutual
funds managed by Sun Capital Advisers, Inc. (since 2007);
Director of ICI Mutual Insurance Company (since 2007);
Advisory Board, Center for Business Ethics, Bentley
University; Trustee, Southwest Florida Community Foundation
(charitable organization). Former Directorships: Investment
Company Institute (audit, executive, nominating committees)
and Independent Directors Council (governance, executive
committees)
134John W.
Ballantine (1946)Board Member
since 1999
Retired; formerly, Executive Vice President and Chief Risk
Management Officer, First Chicago NBD Corporation/The First
National Bank of Chicago (1996-1998); Executive Vice
President and Head of International Banking (1995-1996).
Directorships: Healthways, Inc. (provider of disease and care
management services); Portland General Electric (utility
company); Stockwell Capital Investments PLC (private equity).
Former Directorships: First Oak Brook Bancshares, Inc. and
Oak Brook Bank
134Henry P. Becton,
Jr. (1943)Board Member
since 1990
Vice Chair, WGBH Educational Foundation. Directorships:
Association of Public Television Stations; Becton Dickinson
and Company3 (medical technology company); Belo
Corporation3 (media company); Boston Museum of Science;
Public Radio International; PRX, The Public Radio Exchange;
The PBS Foundation. Former Directorships: American Public
Television; Concord Academy; New England Aquarium; Mass.
Corporation for Educational Telecommunications; Committee
for Economic Development; Public Broadcasting Service
134Keith R. Fox
(1954)Board Member
since 1996
Managing General Partner, Exeter Capital Partners (a series of
private investment funds). Directorships: Progressive Holding
Corporation (kitchen goods importer and distributor); Box Top
Media Inc. (advertising); The Kennel Shop (retailer)
134Kenneth C.
Froewiss (1945)Board Member
since 2001
Clinical Professor of Finance, NYU Stern School of Business
(1997-present); Member, Finance Committee, Association for
Asian Studies (2002-present); Director, Mitsui Sumitomo
Insurance Group (US) (2004-present); prior thereto, Managing
Director, J.P. Morgan (investment banking firm) (until 1996)
134Richard J. Herring
(1946)Board Member
since 1990
Jacob Safra Professor of International Banking and Professor,
Finance Department, The Wharton School, University of
Pennsylvania (since July 1972); Co-Director, Wharton Financial
Institutions Center (since July 2000); Director, Japan Equity
Fund, Inc. (since September 2007), Thai Capital Fund, Inc.
(since September 2007), Singapore Fund, Inc. (since
September 2007). Formerly, Vice Dean and Director, Wharton
Undergraduate Division (July 1995-June 2000); Director,
Lauder Institute of International Management Studies (July
2000-June 2006)
134William
McClayton (1944)Board Member
since 2004
Managing Director, Diamond Management & Technology
Consultants, Inc. (global management consulting firm)
(2001-present); Directorship: Board of Managers, YMCA of
Metropolitan Chicago; formerly: Senior Partner, Arthur
Andersen LLP (accounting) (1966-2001); Trustee, Ravinia
Festival
134Rebecca W.
Rimel (1951)Board Member
since 1995
President and Chief Executive Officer, The Pew Charitable
Trusts (charitable organization) (1994 to present); Trustee,
Thomas Jefferson Foundation (charitable organization) (1994 to
present); Trustee, Executive Committee, Philadelphia Chamber
of Commerce (2001-2007); Trustee, Pro Publica
(2007-present) (charitable organization). Formerly, Executive
Vice President, The Glenmede Trust Company (investment
trust and wealth management) (1983-2004); Board Member,
Investor Education (charitable organization) (2004-2005);
Director, Viasys Health Care3 (January 2007-June 2007)
134William N. Searcy,
Jr. (1946)Board Member
since 1993
Private investor since October 2003; Trustee of 20 open-end
mutual funds managed by Sun Capital Advisers, Inc. (since
October 1998). Formerly, Pension & Savings Trust Officer,
Sprint Corporation3 (telecommunications) (November
1989-September 2003)
134Jean Gleason
Stromberg (1943)Board Member
since 1997
Retired. Formerly, Consultant (1997-2001); Director, US
Government Accountability Office (1996-1997); Partner,
Fulbright & Jaworski, L.L.P. (law firm) (1978-1996).
Directorships: The William and Flora Hewlett Foundation;
Business Leadership Council, Wellesley College. Former
Directorships: Service Source, Inc., Mutual Fund Directors
Forum (2002-2004), American Bar Retirement Association
(funding vehicle for retirement plans) (1987-1990 and
1994-1996)
134Robert H.
Wadsworth(1940)Board Member
since 1999
President, Robert H. Wadsworth & Associates, Inc. (consulting
firm) (1983 to present); Director, The Phoenix Boys Choir
Association
137 Interested Board MemberName, Year of
Birth, Position
with the Fund
and Length of
Time Served1
Business Experience and Directorships During the
Past Five Years
Number of
Funds in
Fund
Complex
OverseenAxel Schwarzer4(1958)Board Member
since 2006
Managing Director5, Deutsche Asset Management; Head of
Deutsche Asset Management Americas; CEO of DWS Investments;
formerly, board member of DWS Investments, Germany
(1999-2005); formerly, Head of Sales and Product Management for
the Retail and Private Banking Division of Deutsche Bank in
Germany (1997-1999); formerly, various strategic and operational
positions for Deutsche Bank Germany Retail and Private Banking
Division in the field of investment funds, tax driven instruments and
asset management for corporates (1989-1996)
134 Officers6Name, Year of Birth,
Position with the Fund and
Length of Time Served7
Principal Occupation(s) During Past 5 Years and Other
Directorships HeldMichael G. Clark8 (1965)President, 2006-present
Managing Director5, Deutsche Asset Management
(2006-present); President of DWS family of funds; Director, ICI
Mutual Insurance Company (since October 2007); formerly,
Director of Fund Board Relations (2004-2006) and Director of
Product Development (2000-2004), Merrill Lynch Investment
Managers; Senior Vice President Operations, Merrill Lynch
Asset Management (1999-2000)John Millette9 (1962)Vice President and Secretary,
1999-present
Director5, Deutsche Asset ManagementPaul H. Schubert8 (1963)Chief Financial Officer,
2004-presentTreasurer, 2005-present
Managing Director5, Deutsche Asset Management (since July
2004); formerly, Executive Director, Head of Mutual Fund
Services and Treasurer for UBS Family of Funds (1998-2004);
Vice President and Director of Mutual Fund Finance at UBS
Global Asset Management (1994-1998)Caroline Pearson9 (1962)Assistant Secretary,
1997-present
Managing Director5, Deutsche Asset ManagementRita Rubin10 (1970)Assistant Secretary,
2009-present
Vice President and Counsel, Deutsche Asset Management
(since October 2007); formerly, Vice President, Morgan
Stanley Investment Management (2004-2007); Attorney,
Shearman & Sterling LLP (2004); Vice President and Associate
General Counsel, UBS Global Asset Management (2001-2004)Paul Antosca9 (1957)Assistant Treasurer,
2007-present
Director5, Deutsche Asset Management (since 2006); Vice
President, The Manufacturers Life Insurance Company (U.S.A.)
(1990-2006)Jack Clark9 (1967)Assistant Treasurer,
2007-present
Director5, Deutsche Asset Management (since 2007);
formerly, Vice President, State Street Corporation (2002-2007)Diane Kenneally9(1966)Assistant Treasurer,
2007-present
Director5, Deutsche Asset ManagementJason Vazquez10 (1972)Anti-Money Laundering
Compliance Officer,
2007-present
Vice President, Deutsche Asset Management (since 2006);
formerly, AML Operations Manager for Bear Stearns
(2004-2006), Supervising Compliance Principal and Operations
Manager for AXA Financial (1999-2004)Robert Kloby10 (1962)Chief Compliance Officer,
2006-present
Managing Director5, Deutsche Asset Management
(2004-present); formerly, Chief Compliance Officer/Chief Risk
Officer, Robeco USA (2000-2004); Vice President, The
Prudential Insurance Company of America (1988-2000);
E.F. Hutton and Company (1984-1988)J. Christopher Jackson10
(1951)Chief Legal Officer,
2006-present
Director5, Deutsche Asset Management (2006-present);
formerly, Director, Senior Vice President, General Counsel and
Assistant Secretary, Hansberger Global Investors, Inc.
(1996-2006); Director, National Society of Compliance
Professionals (2002-2005) (2006-2009) 1 The length of time served represents the year in which the Board Member joined the board
of one or more DWS funds currently overseen by the Board.  2 Mr. Freeman assumed the Chairperson role as of January 1, 2009. Prior to that Ms. Driscoll
served as Chairperson of certain DWS funds since 2004.  3 A publicly held company with securities registered pursuant to Section 12 of the Securities
Exchange Act of 1934.  4 The mailing address of Axel Schwarzer is c/o Deutsche Investment Management Americas
Inc., 345 Park Avenue, New York, New York 10154. Mr. Schwarzer is an interested Board
Member by virtue of his positions with Deutsche Asset Management. As an interested
person, Mr. Schwarzer receives no compensation from the fund.  5 Executive title, not a board directorship.  6 As a result of their respective positions held with the Advisor, these individuals are
considered "interested persons" of the Advisor within the meaning of the 1940 Act.
Interested persons receive no compensation from the fund.  7 The length of time served represents the year in which the officer was first elected in such
capacity for one or more DWS funds.  8 Address: 345 Park Avenue, New York, New York 10154.  9 Address: One Beacon Street, Boston, MA 02108.  10 Address: 280 Park Avenue, New York, New York 10017.  The fund's Statement of Additional Information ("SAI") includes additional information about
the Board Members. The SAI is available, without charge, upon request. If you would like to
request a copy of the SAI, you may do so by calling the following toll-free number:
(800) 621-1048. Account Management Resources For More
Information
The automated telephone system allows you to access personalized
account information and obtain information on other DWS funds using
either your voice or your telephone keypad. Certain account types
within Classes A, B, C and S also have the ability to purchase,
exchange or redeem shares using this system.For more information, contact your financial advisor. You may also
access our automated telephone system or speak with a DWS
Investments representative by calling the appropriate number below:For shareholders of Classes A, B, C and Institutional Class:
(800) 621-1048For shareholders of Class S:
(800) 728-3337Web Site
www.dws-investments.com
View your account transactions and balances, trade shares, monitor
your asset allocation, and change your address, 24 hours a day.Obtain prospectuses and applications,blank forms, interactive
worksheets, news about DWS funds, subscription to fund updates by
e-mail, retirement planning information, and more.Written
Correspondence
DWS Investments
PO Box 219151
Kansas City, MO 64121-9151Proxy Voting
The fund's policies and procedures for voting proxies for portfolio
securities and information about how the fund voted proxies related to
its portfolio securities during the 12-month period endedJune 30are
available on our Web site  www.dws-investments.com (click on
"proxy voting"at the bottom of the page)  or on the SEC's Web site
 www.sec.gov. To obtain a written copy of the fund's policies and
procedures without charge, upon request, call us toll free at (800)
621-1048.Principal
Underwriter
If you have questions, comments or complaints, contact:DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808(800) 621-1148 Class A
Class B
Class C
Class S
Institutional
ClassNasdaq Symbol
RRRAX
RRRBX
RRRCX
RRREX
RRRRXCUSIP Number
23339E 491
23339E 483
23339E 475
23339E 459
23339E 442Fund Number
425
625
725
2325
595 For shareholders of Class RAutomated
Information Line
DWS Investments Flex Plan Access (800) 532-8411
24-hour access to your retirement plan account.Web Site
www.dws-investments.com
Click "Retirement Plans" to reallocate assets, process transactions and
review your funds through our secure online account access.Obtain prospectuses and applications,blank forms, interactive
worksheets, news about DWS funds, subscription to fund updates by
e-mail, retirement planning information, and more.For More
Information
(800) 543-5776
To speak with a service representative.Written
Correspondence
DWS Investments Service Company
222 South Riverside Plaza
Chicago, IL 60606-5806Proxy Voting
The fund's policies and procedures for voting proxies for portfolio
securities and information about how the fund voted proxies related to
its portfolio securities during the 12-month period endedJune 30are
available on our Web site  www.dws-investments.com (click on
"proxy voting"at the bottom of the page)  or on the SEC's Web site
 www.sec.gov. To obtain a written copy of the fund's policies and
procedures without charge, upon request, call us toll free at (800)
621-1048.Principal
Underwriter
If you have questions, comments or complaints, contact:DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808(800) 621-1148 Class RNasdaq Symbol
RRRSXCUSIP Number
23339E 467Fund Number
1502 Notes Notes Notes Notes Notes res_backcover0


ITEM 2.
        CODE OF ETHICSAs of the end of the period, December 31, 2008, DWS RREEF Real Estate Securities Fund has a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer.

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

A copy of the code of ethics is filed as an exhibit to this Form N-CSR.ITEM 3.
        AUDIT COMMITTEE FINANCIAL EXPERTThe Funds audit committee is comprised solely of trustees who are independent (as such term has been defined by the Securities and Exchange Commission (SEC) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the Regulations)). The Funds Board of Trustees has determined that there are several audit committee financial experts (as such term has been defined by the Regulations) serving on the Funds audit committee including Mr. William McClayton, the chair of the Funds audit committee.  The SEC has stated that an audit committee financial expert is not an expert for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an audit committee
financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.ITEM 4.
        PRINCIPAL ACCOUNTANT FEES AND SERVICES
  DWS RREEF REAL ESTATE SECURITIES 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
        $65,650
        $0
        $0
        $02007
        $64,650
        $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 ApplicableITEM 7.
        DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.ITEM 8.
        PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.
  ITEM 9.
        PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERSNot Applicable.
  ITEM 10.
        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSThe primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Chairman of the Board, P.O. Box 100176, Cape Coral, FL 33910.
    ITEM 11.
        CONTROLS AND PROCEDURES(a)          The Chief Executive and Financial Officers concluded that the Registrants Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.(b)          There have been no changes in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal controls over financial reporting.ITEM 12.
        EXHIBITS(a)(1)     Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.(a)(2)     Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.(b)         Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.


Form N-CSR Item F  SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  Registrant:
        DWS RREEF Real Estate Securities Fund, 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:
        DWS RREEF Real Estate Securities Fund, 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