UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549  FORM N-CSR  Investment Company Act file number
        811-2719
  DWS U.S. Government Securities Fund (Exact Name of Registrant as Specified in Charter)  222 South Riverside Plaza Chicago, IL  60606 (Address of principal executive offices)             (Zip code)  Registrants Telephone Number, including Area Code:(212) 454-7190  Paul Schubert 345 Park Avenue New York, NY 10154 (Name and Address of Agent for Service)  Date of fiscal year end:
        10/31
  Date of reporting period:
        10/31/07
   ITEM 1.REPORT TO STOCKHOLDERS


OCTOBER 31, 2007

# Annual Report
to Shareholders

DWS U.S. Government Securities Fund

|usg_cover310
|------------

Contents

click herePerformance Summary

click hereInformation About Your Fund's Expenses

click herePortfolio Management Review

click herePortfolio Summary

click hereInvestment Portfolio

click hereFinancial Statements

click hereFinancial Highlights

click hereNotes to Financial Statements

click hereReport of Independent Registered Public Accounting Firm

click hereTax Information

click hereInvestment Management Agreement Approval

click hereSummary of Management Fee Evaluation by Independent
Fee Consultant

click hereTrustees and Officers

click hereAccount 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. The
guarantee on US government guaranteed securities relates only to the prompt
payment of principal and interest and does not remove market risks. Bond investments
are subject to interest rate risk such that when interest rates rise, the prices of the
bonds, and thus the value of the bond fund, can decline and the investor can lose
principal value. Please read this fund's prospectus for specific details regarding its
investments and risk profile.

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

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

Performance SummaryOctober 31, 2007

Classes A, B, C and Institutional

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-scudder.com for the Fund's most recent month-end
performance.

The maximum sales charge for Class A shares is 4.5%. 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 adjustment
for front-end sales charges 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 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
February 1, 2007 are 0.84%, 1.71%, 1.55% and 0.82% for Class A, Class B, Class C
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 October 31, 2007.

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 all periods shown 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.

|Average Annual Total Returns(Unadjusted for Sales Charge) as of 10/31/07
|------------------------------------------------------------------------
|DWS U.S. Government Securities Fund                                     
|Class A                                                                 
|Class B                                                                 
|Class C                                                                 
|Institutional Class                                                     
|Lehman Brothers GNMA Index+                                             

Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.

|Net Asset Value and Distribution Information                           
|-----------------------------------------------------------------------
|                                                                       
|Net Asset Value:
10/31/07                                              
|10/31/06                                                               
|Distribution Information:
Twelve Months as of 10/31/07:Income Dividends
|October Income Dividend                                                
|SEC 30-day Yield as of 10/31/07                                      
|Current Annualized Distribution Rate as
of 10/31/07                  

|Class A Lipper Rankings  GNMA Funds Categoryas of 10/31/07
|-----------------------------------------------------------
|Period                                                     
|1-Year                                                     
|3-Year                                                     
|5-Year                                                     
|10-Year                                                    

Source: Lipper Inc. Rankings are historical and do not guarantee future results.
Rankings are based on total return unadjusted for sales charges with distributions
reinvested. If sales charges had been included, rankings might have been less than
favorable. Rankings are for Class A shares; other share classes may vary.

|Growth of an Assumed $10,000 Investment(Adjusted for Maximum Sales Charge)   
|-----------------------------------------------------------------------------
|[]DWS U.S. Government Securities Fund  Class A
[]Lehman Brothers GNMA Index+
|usg_g10k290                                                                  
|Yearly periods ended October 31                                              

The Fund's growth of an assumed $10,000 investment is adjusted for the maximum
sales charge of 4.50%. This results in a net initial investment of $9,550.

|Comparative Results(Adjusted for Maximum Sales Charge) as of 10/31/07
|---------------------------------------------------------------------
|DWS U.S. Government Securities Fund                                  
|Class A                                                              
|Average annual total return                                          
|Class B                                                              
|Average annual total return                                          
|Class C                                                              
|Average annual total return                                          
|Lehman
Brothers
GNMA Index+                                          
|Average annual total return                                          

The growth of $10,000 is cumulative.

|Growth of an Assumed $1,000,000 Investment                                               
|-----------------------------------------------------------------------------------------
|[]DWS U.S. Government Securities Fund  Institutional Class
[]Lehman Brothers GNMA Index+
|usg_g10k280                                                                              
|Yearly periods ended October 31                                                          

|Comparative Resultsas of 10/31/07
|---------------------------------

|DWS U.S. Government Securities Fund | 1-Year               | 3-Year     | 5-Year     | 10-Year   
|----------------------------------- | -------------------- | ---------- | ---------- | ----------
|Institutional
Class                 | Growth of $1,000,000 | $1,049,400 | $1,116,900 | $1,194,900
|Average annual total return         | 4.94%                | 3.75%      | 3.63%      | 5.23%     
|Lehman
Brothers
GNMA Index+         | Growth of $1,000,000 | $1,056,500 | $1,135,900 | $1,227,300
|Average annual total return         | 5.65%                | 4.34%      | 4.18%      | 5.76%     

The growth of $1,000,000 is cumulative.

The minimum initial investment for Institutional Class is $1,000,000.

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-scudder.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
February 1, 2007 is 0.73% 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 October 31, 2007.

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 all periods shown 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. Return may differ by share
class.

|Average Annual Total Returnsas of 10/31/07
|------------------------------------------
|DWS U.S. Government Securities Fund       
|Class S                                   
|Lehman Brothers GNMA Index+               

Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.

|Net Asset Value and Distribution Information                           
|-----------------------------------------------------------------------
|                                                                       
|Net Asset Value:
10/31/07                                              
|10/31/06                                                               
|Distribution Information:
Twelve Months as of 10/31/07:Income Dividends
|October Income Dividend                                                
|SEC 30-day Yield as of 10/31/07                                      
|Current Annualized Distribution Rate as of 10/31/07                  

|Class S Lipper Rankings  GNMA Funds Categoryas of 10/31/07
|-----------------------------------------------------------
|Period                                                     
|1-Year                                                     

Source: Lipper Inc. Rankings are historical and do not guarantee future results.
Rankings are based on total return with distributions reinvested. Rankings are for
Class S shares; other share classes may vary.

|Growth of an Assumed $10,000 Investment                                      
|-----------------------------------------------------------------------------
|[]DWS U.S. Government Securities Fund  Class S
[]Lehman Brothers GNMA Index+
|usg_g10k270                                                                  
|Quarterly periods ended October 31                                           

|Comparative Resultsas of 10/31/07  
|-----------------------------------
|DWS U.S. Government Securities Fund
|Class S                            
|Average annual total return        
|Lehman Brothers GNMA Index+        
|Average annual total return        

The growth of $10,000 is cumulative.

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. In the most recent six-month period, the Fund limited these
expenses; had it not done so, expenses would have been higher. The
example in the table is based on an investment of $1,000 invested at the
beginning of the six-month period and held for the entire period(May 1,
2007 to October 31, 2007).

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

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

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

Please note that the expenses shown in these tables are meant to
highlight your ongoing expenses only and do not reflect any transaction
costs. The "Expenses Paid per $1,000" line of the tables is useful in
comparing ongoing expenses only and will not help you determine the
relative total expense of owning different funds. 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 October 31, 2007
|----------------------------------------------------------------------------------
|Actual Fund Return                                                                
|Beginning Account Value 5/1/07                                                    
|Ending Account Value 10/31/07                                                     
|Expenses Paid per $1,000*                                                         
|Hypothetical 5% Fund Return                                                       
|Beginning Account Value 5/1/07                                                    
|Ending Account Value 10/31/07                                                     
|Expenses Paid per $1,000*                                                         

|Annualized Expense Ratios           | Class A | Class B | Class C | Class S | Institutional
Class
|----------------------------------- | ------- | ------- | ------- | ------- | -------------------
|DWS U.S. Government
Securities Fund | .79%    | 1.55%   | 1.62%   | .65%    | .68%               

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

Portfolio Management Review

Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), which is part of Deutsche Asset Management, is the
investment advisor for DWS U.S. Government 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.

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

William Chepolis, CFA

Managing Director of Deutsche Asset Management and Co-Manager of the fund.

Joined Deutsche Asset Management in 1998 after 13 years of experience as vice
president and portfolio manager for Norwest Bank, where he managed the bank's fixed
income and foreign exchange portfolios.

Portfolio Manager for Retail Mortgage Backed Securities: New York.

Joined the fund in 2002.

BIS, University of Minnesota.

Matthew F. MacDonald

Director of Deutsche Asset Management and Co-Manager of the fund.

Joined Deutsche Asset Management and the fund in 2006 after 14 years of fixed
income experience at Bank of America Global Structured Products and PPM America,
Inc., where he was portfolio manager for public fixed income, including MBS, ABS,
CDOs and corporate bonds; earlier, as an analyst for MBS, ABS and money markets;
and originally, at Duff & Phelps Credit Rating Company.

Portfolio Manager for Retail Mortgage Backed Securities: New York.

BA, Harvard University; MBA, University of Chicago Graduate School of Business.

In the following interview, Portfolio Co-Managers William Chepolis
and Matthew MacDonald discuss market conditions and investment
strategy during DWS U.S. Government Securities Fund's most recent
annual period ended October 31, 2007.

The views expressed in the following discussion reflect those of the portfolio co-managers
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.

Q: Could you describe the investing environment for mortgage
securities over the 12-month period ended October 31, 2007?

A:Early in the period, the bond market appeared to anticipate a
move to ease interest rates, despite the US Federal Reserve
Board's (the Fed's) reiteration of concerns over inflation at this
point in the business cycle. In particular, market participants
focused heavily on softening in the housing sector, which has
generated much speculation over a possible recession. The
expectation of the Fed's easing of interest rates was reflected in a
yield curve that was actually inverted between two and 10 years,
with shorter maturities providing higher yields than longer
maturities.1 As the period progressed, inflationary expectations
picked up. This change in outlook was reflected by mid-period in a
modest re-steepening of the yield curve between two and 10
years, as longer-term Treasury yields began to reflect the possible
impact of inflation on fixed returns.

The last few months of the fiscal year were most eventful and did
the most to determine fixed-income investor returns. In particular,
the summer saw extreme volatility occasioned by the subprime
mortgage crisis. As a result of the securitization of these
mortgages, exposure to subprime defaults spread to a variety of
fixed-income market participants globally. As investors sought to
protect against risks that were difficult to assess, liquidity
disappeared in the broader fixed-income markets. Ultimately, this
risk aversion caused a period in July and August of 2007 of very
high equity and bond market volatility as well as a flight to quality,
the principal manifestation of which was increased interest in US
Treasury securities. In addition, the yield curve reverted to a more
typically upward slope, as bond market participants anticipated
Fed easing of short-term rates and began again to demand
compensation for the risk of holding longer-term issues. For the
full 12-month period, the two-year Treasury note yield fell 74 basis
points from 4.69% to 3.95%, while the 10-year Treasury yield fell
13 basis points from 4.60% to 4.47%, for a total steepening of
61 basis points. (100 basis points equals one percentage point.)

In managing the fund, we monitor mortgage refinancing activity
closely as this is a good indicator of the fund's exposure to
prepayment risk.2 Managing this prepayment risk helps us
maximize the returns we look to pay out in the form of dividends
to shareholders. For most of the period, the Mortgage Bankers
Association of America Refinancing Index, which indicates the
number of mortgage refinance applications being filed week to
week, remained at moderate levels. This was one of the reasons
that for much of the period we invested a higher percentage of
the fund in higher coupon mortgages (which typically are more
sensitive to prepayments than lower-coupon mortgages, and
often yield less due to high prepayment rates).3

Q: How did the fund perform in this environment?

A:For the 12 months ended October 31, 2007, the fund's Class A
shares posted a 4.78% total return, compared with the 5.65%
return of its benchmark, the Lehman Brothers GNMA Index.4
(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 10
for the performance of other share classes and more complete
performance information.) The fund's return slightly lagged the
4.91% return of its average peer in the Lipper GNMA Funds
category.5 At the close of the period, the fund's duration (or level
of sensitivity to changes in interest rates) stood at 3.9 years,
compared with 3.80 years for the Lehman Brothers GNMA
Index.6

Q: Can you give us an overview of how you manage the fund?

A:We seek to provide a high level of current income, liquidity and
security of principal, while also working to limit the volatility of
fund returns relative to the Lehman Brothers GNMA Index. Our
first focus is on the fund's allocation between GNMAs and US
Treasury securities  both of which are backed by the full faith
and credit of the US government.7 We will adjust the fund's
Treasury exposure up or down based on our view of the relative
value provided by GNMAs versus Treasuries and of how we
expect the interest rate environment to impact each sector.

In putting together the fund's GNMA allocation, we conduct
extensive analysis of prepayment expectations for individual
securities.Mortgage characteristics that we evaluate on an
ongoing basis include: loan age, loan size, geographic
concentrations and mortgage pool originator. For instance, smaller
loan sizes generally mean a slower rate of prepayment, and
homeowners in certain regions tend to refinance less frequently.We believe that this assessment can help to control the fund's
prepayment risk and maintain higher dividends. Conversely, we
may also look to purchase securities trading at a price below par
and which we hope will prepay at a higher rate, thereby increasing
the fund's holding yield.

We do not believe we can consistently and profitably predict the
direction of interest rates, so we do not try to choose securities
based on their duration. Instead, we look for securities that we
feel are cheap relative to the Lehman Brothers GNMA Index.

Q: What were the fund's primary strategies during the period?

A:We maintained a relatively high allocation to GNMA securities
throughout the period. This reflected our view that GNMAs
continued to offer attractive yields relative to US Treasury issues,
and that a backdrop of relative interest rate stability would be
favorable to GNMAs. At the close of the period, GNMA securities
provided a yield advantage versus equivalent maturity Treasuries
of 100 to 200 basis points. At the end of October 2007, roughly
83% of the investment portfolio was invested in GNMAs, with
15% mortgage-backed securities issued by Freddie Mac or Fannie
Mae and another 2% in US Treasury bonds.

In broad terms, our efforts to seek GNMA pools with favorable
prepayment characteristics worked well for the fund over the
period. Given a backdrop of reasonably strong growth, early in the
period we chose to maintain an emphasis on higher coupon
mortgages, as we viewed the risk/return trade-off as favoring
these issues relative to lower coupons. In short, we expected
relatively high interest rates along with a slowing housing market
to translate into modest prepayment risk for higher coupon issues
and thereby enable the fund to earn a consistent level of attractive
income. This helped performance as the relatively narrow range of
interest rate movements and the Fed's continued talk of inflation
vigilance provided a good environment for holding fuller coupons.

As the period progressed, we continued to watch the housing
market and interest rate environment closely as we sought to
maintain an attractive dividend for investors. We hold GNMA and
government-sponsored mortgage-backed securities (MBS) in our
fund and so are not concerned about the creditworthiness of our
holdings. We are, however, focused on the potential impact of
lower-rated MBS and borrowers on the fixed-income markets as a
whole. Increasingly, we saw weakness in the subprime loan
market as a factor likely to encourage the Fed to lower rates. If
Fed easing were to result in rates overall falling substantially, this
would promote more rapid prepayment of underlying mortgages,
making investors less willing to pay for threatened cash flows. In
order to protect against such a scenario, we began to move into
lower coupons and other structures resistant to prepayment. This
repositioning has not helped the fund to date, as the market has
for the most part anticipated stable rather than falling interest
rates and therefore not rewarded lower coupons relative to higher
coupons. We believe, however, that this strategy is sound in view
of the prospect of continued Fed loosening in the wake of the
summer's subprime crisis.

Our exposure to higher-coupon 15-year GNMAs worked well
for the fund, as these provided attractive income with less
prepayment risk than 30-year issues. We also carried exposure to
adjustable rate mortgages issued by Freddie Mac and Fannie
Mae, which constrained performance somewhat for the year.
Nonetheless, we view this position as playing a valuable role in
providing income with low vulnerability to interest rate changes.
Throughout most of the period we were fully invested in
mortgage-backed securities; however, in late August we added a
position of approximately 2% in US Treasury Inflation Protected
Securities (TIPS). This reflected our view that these issues were
pricing in an expectation of low inflation and as a result presented
attractive value. This strategy added to performance as we sold
our TIPS holdings at a profit late in the fiscal period, replacing
them with a position in conventional Treasuries.

In addition to focusing on mortgage pools with certain
characteristics, the fund has the ability to manage prepayment
risk by performing dollar rolls. Simply stated, a dollar roll involves
the fund contracting to buy a mortgage-backed security at a future
date, and in the interim investing the purchase amount in
short-term, high-quality interest-paying instruments. This strategy
entails very little risk to principal and can help reduce exposure
to prepayments while providing a boost to the fund's income.
For much of the period, this spread, or incremental income, to
be earned from "rolling" assets was narrow. In addition, the

|GNMA securities in a nutshell
Government National Mortgage Association (GNMA) securities,
commonly called "Ginnie Mae" securities, are backed by the full
faith and credit of the US government with respect to payment of
principal and interest. Each GNMA mortgage-backed security
represents an aggregated pool of homeowners' mortgages from
which investors receive principal and interest payments each
month. If interest rates fall, homeowners tend to refinance and
pay off their existing mortgages earlier, and mortgage-backed
investors are forced to reinvest the proceeds at lower prevailing
rates. If interest rates rise, principal for the mortgages underlying
GNMA securities tends to be repaid more slowly and an investor
receives the coupon interest on the security over a longer time
horizon. However, the value of GNMAs issued recently with
coupons that reflect lower prevailing rates may experience a
greater price decline if market interest rates rise, as their duration
and interest rate risk increase. As a result, funds that invest
primarily in GNMAs tend to perform best in environments in
which interest rates do not change dramatically.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

summer's subprime-related liquidity crisis made it more difficult
to execute these transactions. This restrained performance
slightly, as we are usually able to add several basis points a
quarter through this strategy. We are currently dollar rolling less
than 5% of the fund's investment portfolio, near the bottom of
our 30% limit.

Q: How do you assess the economic environment for mortgage
securities at present?

A:Going forward, while investor sentiment appears to have
stabilized, we remain sensitive to the risks to the GNMA market
posed by possible further subprime contagion. We are of course
focused on the potential impact on interest rates and GNMA
prepayment rates of any future Fed rate cuts. In addition, we are
also monitoring proposed policy efforts designed to assist
subprime borrowers, some of which have the potential to
influence supply and demand for GNMAs. In view of these
uncertainties, we believe a continued focus on seasoned
mortgages with relatively predictable income flows is warranted.

We will continue to monitor the economy and Fed policy closely
as we position the fund going forward.

Portfolio Summary

|Asset Allocation(As a % of Investment Portfolio
excluding Securities Lending Collateral) | 10/31/07 | 10/31/06
|---------------------------------------------------------------------------------------- | -------- | --------
|                                                                                         |          |         
|Agencies Backed by the Full Faith and Credit of the
US Government (GNMA)                 | 83%      | 77%     
|Agencies Not Backed by the Full Faith and Credit of the
US Government (FNMA, FHLMC)      | 15%      | 10%     
|Cash Equivalents                                                                         |         | 8%      
|US Treasury Obligations                                                                  | 2%       | 5%      
|                                                                                         | 100%     | 100%    

|Credit Quality | 10/31/07 | 10/31/06
|-------------- | -------- | --------
|               |          |         
|AAA            | 100%     | 100%    

|Interest Rate Sensitivity | 10/31/07  | 10/31/06 
|------------------------- | --------- | ---------
|                          |           |          
|Effective Maturity        | 6.7 years | 7.4 years
|Average Duration          | 3.9 years | 3.9 years

Asset allocation, credit quality and interest rate sensitivity are subject to change.

The quality ratings represents the lower of Moody's Investors Service, Inc. ("Moody's") or
Standard & Poor's Corporation ("S&P") credit ratings. The ratings of Moody's and S&P
represent their opinions as to the quality of the securities they rate. Ratings are relative and
subjective and are not absolute standards of quality. The Fund's credit quality does not
remove market risk.

For more complete details about the Fund's investment portfolio, see page 23. A quarterly
Fact Sheet is available upon request. Information concerning portfolio holdings of the Fund
as of month end will be posted to dws-scudder.com on or after the last day of the following
month. 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 October 31, 2007

|                                                                                                | Principal
Amount ($) | Value ($)  
|----------------------------------------------------------------------------------------------- | -------------------- | -----------
|                                                                                                |                     
|Agencies Backed by the Full Faith and Credit of the
US Government 77.8%                        
|Government National Mortgage Association:                                                       |                      |            
|5.0%, with various maturities from 2/15/2033 until
10/15/2037 (a) (e)                           | 387,169,563          | 373,922,136
|5.5%, with various maturities from 12/15/2028 until
3/15/2037 (a) (e)                           | 606,733,672          | 602,536,752
|6.0%, with various maturities from 11/15/2014 until
7/15/2037 (a) (e)                           | 386,460,645          | 392,131,020
|6.5%, with various maturities from 7/15/2008 until
10/15/2037 (a) (e)                           | 205,762,764          | 212,033,370
|7.0%, with various maturities from 1/15/2008 until
7/15/2037                                    | 33,897,429           | 35,475,826 
|7.5%, with various maturities from 5/15/2009 until
1/15/2037                                    | 35,393,374           | 37,412,333 
|8.0%, 9/15/2014                                                                                 | 456                  | 472        
|8.5%, 6/15/2021                                                                                 | 40                   | 41         
|9.0%, with various maturities from 9/15/2017 until
7/15/2030                                    | 2,488,614            | 2,742,571  
|9.5%, with various maturities from 6/15/2009 until
5/15/2025                                    | 3,401,540            | 3,817,919  
|10.0%, with various maturities from 11/15/2009 until
8/15/2022                                  | 2,053,704            | 2,348,634  
|10.5%, with various maturities from 9/15/2015 until
12/15/2021                                  | 1,147,550            | 1,330,288  
|11.0%, 4/20/2019                                                                                | 3,039                | 3,565      
|Total Agencies Backed by the Full Faith and Credit of the
US Government (Cost $1,673,051,952)   | 1,663,754,927       
|                                                                                               
|Agencies Not Backed by the Full Faith and Credit of the US
Government 10.3%                    
|Federal Home Loan Mortgage Corp.:                                                               |                      |            
|4.5%, 4/1/2019                                                                                  | 22,037               | 21,374     
|5.0%, with various maturities from 1/1/2019 until
9/1/2035 (a)                                  | 64,880,719           | 62,379,330 
|5.5%, with various maturities from 3/1/2033 until
4/1/2033                                      | 2,745,401            | 2,714,837  
|5.729%*, 4/1/2037                                                                               | 9,960,589            | 10,030,179 
|5.77%*, 10/1/2036                                                                               | 22,707,030           | 22,874,869 
|5.813%*, 1/1/2037                                                                               | 19,887,195           | 20,048,748 
|5.878%*, 11/1/2036                                                                              | 10,936,220           | 11,045,620 
|5.889%*, 9/1/2036                                                                               | 10,545,334           | 10,637,242 
|6.5%, with various maturities from 9/1/2032 until
7/1/2035                                      | 3,163,725            | 3,238,504  
|7.0%, with various maturities from 10/1/2030 until
9/1/2032                                     | 1,077,138            | 1,125,239  
|7.5%, with various maturities from 6/1/2027 until
1/1/2033                                      | 2,194,474            | 2,335,267  
|8.0%, with various maturities from 2/1/2017 until
7/1/2030                                      | 28,073               | 29,714     
|8.5%, with various maturities from 12/1/2016 until
7/1/2030                                     | 10,749               | 11,573     
|10.25%, 3/1/2030                                                                                | 42,319               | 43,614     
|Federal National Mortgage Association:                                                          |                      |            
|5.5%, with various maturities from 5/1/2025 until
11/1/2034 (a)                                 | 55,790,833           | 55,147,583 
|5.841%*, 1/1/2037                                                                               | 8,519,401            | 8,594,257  
|6.0%, 8/1/2035                                                                                  | 2,259,746            | 2,255,156  
|6.5%, 7/1/2035                                                                                  | 134,500              | 136,360    
|7.0%, with various maturities from 10/1/2033 until
11/1/2034                                    | 6,194,586            | 6,456,630  
|8.0%, with various maturities from 12/1/2008 until
12/1/2024                                    | 186,057              | 198,898    
|8.5%, with various maturities from 7/1/2030 until
9/1/2030                                      | 13,108               | 14,173     
|9.0%, with various maturities from 12/1/2016 until
4/1/2030                                     | 36,418               | 39,777     
|11.5%, 5/1/2018                                                                                 | 2,339                | 2,420      
|Total Agencies Not Backed by the Full Faith and Credit of the
US Government (Cost $222,016,890) | 219,381,364         
|                                                                                               
|Collateralized Mortgage Obligations 13.2%                                                      
|Agencies Backed by the Full Faith and
Credit of the US Government 8.2%                         
|Government National Mortgage Association:                                                       |                      |            
|"1", Series 1, Principal Only, Zero Coupon, 7/20/2034                                           | 7,010,133            | 5,251,575  
|"JO", Series 2006-22, Principal Only, Zero Coupon,
4/20/2036                                    | 9,129,964            | 6,864,877  
|"PO", Series 2006-25, Principal Only, Zero Coupon,
5/20/2036                                    | 3,918,135            | 2,954,630  
|"OD", Series 2006-36, Principal Only, Zero Coupon,
7/16/2036                                    | 1,801,522            | 1,419,478  
|"AO", Series 2006-58, Principal Only, Zero Coupon,
10/16/2036                                   | 5,694,436            | 4,265,299  
|"PO", Series 2006-60, Principal Only, Zero Coupon,
11/20/2036                                   | 2,084,396            | 1,730,610  
|"S", Series 1999-15, Interest Only, 3.14%***, 5/16/2029                                         | 5,089,532            | 533,526    
|"AD", Series 2005-41, 4.5%, 5/20/2035                                                           | 6,178,866            | 5,797,636  
|"A", Series 2005-80, 5.0%, 10/20/2031                                                           | 12,904,372           | 12,760,411 
|"GD", Series 2004-26, 5.0%, 11/16/2032                                                          | 20,000,000           | 19,265,268 
|"LG", Series 2003- 70, 5.0%, 8/20/2033                                                          | 1,000,000            | 917,294    
|"KE", Series 2004-19, 5.0%, 3/16/2034                                                           | 4,500,000            | 4,087,922  
|"PH", Series 2004-80, 5.0%, 7/20/2034                                                           | 8,002,000            | 7,508,442  
|"LE", Series 2004-87, 5.0%, 10/20/2034                                                          | 6,741,000            | 6,207,149  
|"ZB", Series 2005-15, 5.0%, 2/16/2035                                                           | 10,280,829           | 9,016,279  
|"Z", Series 2005-25, 5.0%, 3/16/2035                                                            | 2,275,149            | 1,994,868  
|"ZA", Series 2006-47, 5.0%, 8/16/2036                                                           | 5,646,974            | 4,893,667  
|"YZ", Series 2007-7, 5.0%, 2/16/2037                                                            | 13,666,686           | 13,601,439 
|"CK", Series 2007-31, 5.0%, 5/16/2037                                                           | 7,412,000            | 7,022,636  
|"FG", Series 2002-76, 5.46%*, 10/16/2029                                                        | 2,317,908            | 2,323,408  
|"TZ", Series 2003-85, 5.5%, 10/20/2033                                                          | 18,681,758           | 17,380,988 
|"PC", Series 2007-2, 5.5%, 6/20/2035                                                            | 10,000,000           | 9,865,228  
|"B", Series 2005-88, 5.5%, 11/20/2035                                                           | 11,000,000           | 10,571,029 
|"PD", Series 2005-91, 5.5%, 12/20/2035                                                          | 5,000,000            | 4,765,056  
|"ZA", Series 2007-30, 5.5%, 5/16/2037                                                           | 5,115,639            | 4,709,854  
|"BZ", Series 2004-46, 6.0%, 6/20/2034                                                           | 2,441,589            | 2,429,815  
|"ZB", Series 1998-21, 6.5%, 9/20/2028                                                           | 3,433,005            | 3,530,566  
|"IO", Series 2006-61, Interest Only, 6.5%, 11/20/2036                                           | 13,544,648           | 2,864,669  
|                                                                                                | 174,533,619         
|Agencies Not Backed by the Full Faith and
Credit of the US Government 5.0%                     
|Fannie Mae Whole Loan, "3A", Series 2004-W8, 7.5%,
6/25/2044                                    | 3,835,535            | 4,059,117  
|Federal Home Loan Mortgage Corp.:                                                               |                      |            
|"PO", Series 3147, Principal Only, Zero Coupon,
4/15/2036                                       | 11,188,999           | 8,784,852  
|"MO", Series 3171, Principal Only, Zero Coupon,
6/15/2036                                       | 9,278,825            | 7,006,301  
|"GZ", Series 2906, 5.0%, 9/15/2034                                                              | 11,518,534           | 10,001,513 
|"FT", Series 3346, 5.441%*, 10/15/2033                                                          | 21,400,516           | 21,325,411 
|"FA", Series 2981, 5.491%*, 5/15/2035                                                           | 2,374,453            | 2,348,918  
|"JF", Series 2704, 5.641%*, 5/15/2023                                                           | 14,731,472           | 14,791,035 
|Federal National Mortgage Association:                                                          |                      |            
|"1", Series 17, Principal Only, Zero Coupon, 5/1/2017                                           | 2,251                | 1,994      
|"FC", Series 2005-58, 5.123%*, 7/25/2035                                                        | 37,410,201           | 37,258,563 
|"F", Series 2004-29, 5.273%*, 5/25/2034                                                         | 873,586              | 873,404    
|                                                                                                | 106,451,108         
|Total Collateralized Mortgage Obligations (Cost $279,070,340)                                   | 280,984,727         
|                                                                                               
|US Treasury Obligations 1.9%                                                                   
|US Treasury Bill, 3.70%**, 1/17/2008 (b)                                                        | 1,385,000            | 1,373,704  
|US Treasury Note, 3.875%, 10/31/2012                                                            | 40,000,000           | 39,487,520 
|Total US Treasury Obligations (Cost $41,091,227)                                                | 40,861,224          
|                                                                                               

|                                                                   | Shares      | Value ($)  
|------------------------------------------------------------------ | ----------- | -----------
|                                                                   |            
|Securities Lending Collateral 26.0%                               
|Daily Assets Fund Institutional, 5.26% (c) (d)
(Cost $555,909,023) | 555,909,023 | 555,909,023
|                                                                  
|Cash Equivalents 0.0%                                             
|Cash Management QP Trust, 5.06% (c) (Cost $487,601)                | 487,601     | 487,601    

|                                                 | % of Net
Assets | Value ($)    
|------------------------------------------------ | --------------- | -------------
|                                                 |                
|Total Investment Portfolio(Cost $2,771,627,033)+ | 129.2           | 2,761,378,866
|Other Assets and Liabilities, Net (a)            | (29.2)          | (623,711,257)
|Net Assets                                       | 100.0           | 2,137,667,609

Interest Only: Interest Only (IO) bonds represent the "interest only" portion of payments on
a pool of underlying mortgages or mortgage-backed securities. IO securities are subject to
prepayment risk of the pool of underlying mortgages.

Principal Only: Principal Only (PO) bonds represent the "principal only" portion of payments
on a pool of underlying mortgages or mortgage-backed securities.

At October 31, 2007, open futures contracts sold were as follows:

|                              | Expiration
Date | Contracts | Aggregate
Face
Value ($) | Value ($)  | Unrealized
Appreciation/
Depreciation ($)
|----------------------------- | --------------- | --------- | ------------------------ | ---------- | -----------------------------------------
|10 Year US
Treasury Note      | 12/19/2007      | 646       | 71,265,771               | 71,070,094 | 195,677                                  
|30 Year US
Treasury Bond      | 12/19/2007      | 365       | 40,833,297               | 41,096,719 | (263,422)                                
|Total unrealized depreciation | (67,745)       

At October 31, 2007, open written option contracts were as follows:

|Written Options                                            | Coupon
Rate (%) | Number of
Contracts | Expiration
Date | Strike
Price ($) | Value ($)
|---------------------------------------------------------- | --------------- | ------------------- | --------------- | ---------------- | ---------
|Call Options                                               |                 |                     |                 |                  |          
|30-Year GNSF                                               | 5.0             | 25,000,000          | 11/13/2007      | 97.6             | 120,117  
|30-Year GNSF                                               | 5.0             | 25,000,000          | 12/15/2007      | 95.2             | 252,930  
|30-Year GNSF                                               | 5.0             | 25,000,000          | 1/15/2008       | 97.5             | 255,859  
|30-Year GNSF                                               | 5.5             | 25,000,000          | 11/13/2007      | 98.6             | 291,016  
|30-Year GNSF                                               | 5.5             | 50,000,000          | 11/13/2007      | 97.8             | 996,094  
|30-Year GNSF                                               | 5.5             | 25,000,000          | 12/15/2007      | 98.8             | 302,734  
|30-Year GNSF                                               | 5.5             | 25,000,000          | 12/15/2007      | 98.9             | 275,391  
|30-Year GNSF                                               | 6.0             | 25,000,000          | 11/13/2007      | 100.8            | 205,078  
|30-Year GNSF                                               | 6.0             | 25,000,000          | 12/15/2007      | 101.0            | 176,758  
|30-Year GNSF                                               | 6.0             | 25,000,000          | 12/15/2007      | 100.7            | 246,094  
|30-Year GNSF                                               | 6.0             | 25,000,000          | 1/15/2008       | 101.0            | 201,172  
|Total Call Options (Premiums received $1,804,688)          | 3,323,243      
|Put Options                                                |                 |                     |                 |                  |          
|30-Year GNSF                                               | 5.0             | 25,000,000          | 11/13/2007      | 95.6             | 977      
|30-Year GNSF                                               | 5.0             | 25,000,000          | 1/15/2008       | 95.5             | 57,617   
|30-Year GNSF                                               | 5.5             | 25,000,000          | 12/15/2007      | 97.8             | 41,016   
|30-Year GNSF                                               | 6.0             | 25,000,000          | 12/15/2007      | 100.0            | 10,742   
|30-Year GNSF                                               | 6.0             | 25,000,000          | 1/15/2008       | 100.0            | 70,313   
|Total Put Options (Premiums received $615,235)             | 180,665        
|Total Written Options (Total premiums received $2,419,923) | 3,503,908      

GNSF: Government National Single Family

Included in the portfolio are investments in mortgage or asset-backed securities which are
interests in separate pools of mortgages or assets. Effective maturities of these investments
may be shorter than stated maturities due to prepayments. Some separate investments in
the Federal Home Loan Mortgage Corp., Federal National Mortgage Association, and
Government National Mortgage Association issues which have similar coupon rates have
been aggregated for presentation purposes in this investment portfolio.

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

Financial Statements

|Statement of Assets and Liabilitiesas of October 31, 2007                                                          
|-------------------------------------------------------------------------------------------------------------------
|Assets                                                                                                             
|Investments:Investments in securities, at value (cost $2,215,230,409)  including
$520,707,375 of securities loaned
|Investment in Daily Assets Fund Institutional (cost $555,909,023)*                                                 
|Investment in Cash Management QP Trust (cost $487,601)                                                             
|Total investments, at value (cost $2,771,627,033)                                                                  
|Receivable for investments sold                                                                                    
|Interest receivable                                                                                                
|Receivable for Fund shares sold                                                                                    
|Receivable for daily variation margin on open futures contracts                                                    
|Other assets                                                                                                       
|Total assets                                                                                                       
|Liabilities                                                                                                        
|Cash overdraft                                                                                                     
|Payable for investments purchased                                                                                  
|Payable for investments purchased  mortgage dollar rolls                                                          
|Payable upon return of securities loaned                                                                           
|Payable for Fund shares redeemed                                                                                   
|Options written, at value (premium received $2,419,923)                                                            
|Accrued management fee                                                                                             
|Other accrued expenses and payables                                                                                
|Total liabilities                                                                                                  
|Net assets, at value                                                                                               
|Net Assets Consist of                                                                                              
|Undistributed net investment income                                                                                
|Net unrealized appreciation (depreciation) on:Investments                                                          
|Futures                                                                                                            
|Written options                                                                                                    
|Accumulated net realized gain (loss)                                                                               
|Paid-in capital                                                                                                    
|Net assets, at value                                                                                               

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

|Statement of Assets and Liabilitiesas of October 31, 2007 (continued)                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Net Asset Value                                                                                                                                                                                                                                   
|Class A
Net Asset Value and redemption price(a) per share
($1,982,200,044 ÷ 237,214,135 outstanding shares of beneficial interest,
$.01 par value, unlimited number of shares authorized)                                                         
|Maximum offering price per share (100 ÷ 95.50 of $8.36)                                                                                                                                                                                           
|Class B
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($36,033,082 ÷ 4,315,769 outstanding
shares of beneficial interest, $.01 par value, unlimited number of shares
authorized)      
|Class C
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($39,017,326 ÷ 4,663,014 outstanding
shares of beneficial interest, $.01 par value, unlimited number of shares
authorized)      
|Class S
Net Asset Value, offering and redemption price(a)per share
($80,228,780 ÷ 9,599,813 outstanding shares of beneficial interest,
$.01 par value, unlimited number of shares authorized)                                                     
|Institutional Class
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($188,377 ÷ 22,573 outstanding shares
of beneficial interest, $.01 par value, unlimited number of shares
authorized)

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

|Statement of Operationsfor the year ended October 31, 2007                                               
|---------------------------------------------------------------------------------------------------------
|Investment Income                                                                                        
|Income:Interest                                                                                          
|Interest  Cash Management QP Trust                                                                      
|Securities lending income, including income from Daily Assets Fund
Institutional, net of borrower rebates
|Total Income                                                                                             
|Expenses:Management fee                                                                                  
|Distribution and service fees                                                                            
|Services to shareholders                                                                                 
|Custodian fee                                                                                            
|Professional fees                                                                                        
|Trustees' fees and expenses                                                                              
|Reports to shareholders                                                                                  
|Registration fees                                                                                        
|Other                                                                                                    
|Total expenses before expense reductions                                                                 
|Expense reductions                                                                                       
|Total expenses after expense reductions                                                                  
|Net investment income                                                                                    
|Realized and Unrealized Gain (Loss)                                                                      
|Net realized gain (loss) from:Investments                                                                
|Futures                                                                                                  
|Written options                                                                                          
|                                                                                                         
|Change in net unrealized appreciation (depreciation) on:Investments                                      
|Futures                                                                                                  
|Written options                                                                                          
|                                                                                                         
|Net gain (loss)                                                                                          
|Net increase (decrease) in net assets resulting from operations                                          

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

|Statement of Changes in Net Assets                                                                                      
|------------------------------------------------------------------------------------------------------------------------
|Increase (Decrease) in Net Assets                                                                                       
|2007                                                                                                                    
|Operations:Net investment income                                                                                        
|Net realized gain (loss)                                                                                                
|Change in net unrealized appreciation (depreciation)                                                                    
|Net increase (decrease) in net assets resulting from
operations                                                         
|Distributions to shareholders from:Net investment income:Class A                                                        
|Class B                                                                                                                 
|Class C                                                                                                                 
|Class S                                                                                                                 
|Institutional Class                                                                                                     
|Fund share transactions:Proceeds from shares sold                                                                       
|Reinvestment of distributions                                                                                           
|Cost of shares redeemed                                                                                                 
|Redemption fees                                                                                                         
|Reimbursement by Advisor                                                                                                
|Net increase (decrease) in net assets from Fund share
and paid-in capital transactions                                  
|Increase (decrease) in net assets                                                                                       
|Net assets at beginning of period                                                                                       
|Net assets at end of period (including undistributed net
investment income of $10,238,815 and $18,697,722,
respectively)

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

Financial Highlights

|Class A
Years Ended October 31,                                                                                                                                                                                                                                                                                                                                                                                        | 2007      | 2006      | 2005      | 2004      | 2003     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                                                                               
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                                                                                   | $    8.39 | $    8.41 | $    8.66 | $    8.62 | $    8.80
|Income from investment operations:
Net investment incomea                                                                                                                                                                                                                                                                                                                                                              | .39       | .36       | .32       | .28       | .21      
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                                                                                | (.00)*    | .02       | (.21)     | .09       | (.04)    
|Total from investment operations                                                                                                                                                                                                                                                                                                                                                                                       | .39       | .38       | .11       | .37       | .17      
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                                                                                                                         | (.42)     | (.40)     | (.36)     | (.33)     | (.35)    
|Redemption fees                                                                                                                                                                                                                                                                                                                                                                                                        | .00*      | .00*      | .00*      |          |         
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                                                                                         | $    8.36 | $    8.39 | $    8.41 | $    8.66 | $    8.62
|Total Return (%)b                                                                                                                                                                                                                                                                                                                                                                                                      | 4.78c     | 4.59      | 1.25      | 4.28      | 2.08     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                                                                                    
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                                                                                 | 1,982     | 2,196     | 2,532     | 2,877     | 3,273    
|Ratio of expenses (%)                                                                                                                                                                                                                                                                                                                                                                                                  | .82       | .85       | .81       | .83       | .82      
|Ratio of net investment income (%)                                                                                                                                                                                                                                                                                                                                                                                     | 4.63      | 4.33      | 3.76      | 3.22      | 2.40     
|Portfolio turnover rate (%)d                                                                                                                                                                                                                                                                                                                                                                                           | 189       | 94        | 101       | 221       | 390      
|aBased 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.dThe portfolio turnover rate including mortgage dollar roll transactions was 336%, 305%,
312%, 295% and 484% for the years ended October 31, 2007, 2006, 2005, 2004 and
2003, respectively.*Amount is less than $.005.

|Class B
Years Ended October 31,                                                                                                                                                                                                                                                                                                                                                                                        | 2007      | 2006      | 2005      | 2004      | 2003     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                                                                               
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                                                                                   | $    8.38 | $    8.39 | $    8.64 | $    8.60 | $    8.78
|Income from investment operations:
Net investment incomea                                                                                                                                                                                                                                                                                                                                                              | .31       | .28       | .24       | .19       | .14      
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                                                                                | (.00)*    | .03       | (.22)     | .10       | (.04)    
|Total from investment operations                                                                                                                                                                                                                                                                                                                                                                                       | .31       | .31       | .02       | .29       | .10      
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                                                                                                                         | (.34)     | (.32)     | (.27)     | (.25)     | (.28)    
|Redemption fees                                                                                                                                                                                                                                                                                                                                                                                                        | .00*      | .00*      | .00*      |          |         
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                                                                                         | $    8.35 | $    8.38 | $    8.39 | $    8.64 | $    8.60
|Total Return (%)b                                                                                                                                                                                                                                                                                                                                                                                                      | 3.80c     | 3.76c     | .25       | 3.31c     | 1.25     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                                                                                    
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                                                                                 | 36        | 57        | 82        | 126       | 189      
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                                                                                                                                                                                                                        | 1.72      | 1.83      | 1.72      | 1.88      | 1.67     
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                                                                                                                                                                                                                         | 1.71      | 1.75      | 1.72      | 1.81      | 1.67     
|Ratio of net investment income (%)                                                                                                                                                                                                                                                                                                                                                                                     | 3.74      | 3.43      | 2.85      | 2.24      | 1.55     
|Portfolio turnover rate (%)d                                                                                                                                                                                                                                                                                                                                                                                           | 189       | 94        | 101       | 221       | 390      
|aBased 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.dThe portfolio turnover rate including mortgage dollar roll transactions was 336%, 305%,
312%, 295% and 484% for the years ended October 31, 2007, 2006, 2005, 2004 and
2003, respectively.*Amount is less than $.005.

|Class C
Years Ended October 31,                                                                                                                                                                                                                                                                                                                                                                                        | 2007      | 2006      | 2005      | 2004      | 2003     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                                                                               
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                                                                                   | $    8.41 | $    8.42 | $    8.67 | $    8.63 | $    8.80
|Income from investment operations:
Net investment incomea                                                                                                                                                                                                                                                                                                                                                              | .32       | .29       | .25       | .20       | .14      
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                                                                                | (.00)*    | .03       | (.22)     | .10       | (.02)    
|Total from investment operations                                                                                                                                                                                                                                                                                                                                                                                       | .32       | .32       | .03       | .30       | .12      
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                                                                                                                         | (.36)     | (.33)     | (.28)     | (.26)     | (.29)    
|Redemption fees                                                                                                                                                                                                                                                                                                                                                                                                        | .00*      | .00*      | .00*      |          |         
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                                                                                         | $    8.37 | $    8.41 | $    8.42 | $    8.67 | $    8.63
|Total Return (%)b                                                                                                                                                                                                                                                                                                                                                                                                      | 3.85c     | 3.88      | .34       | 3.50      | 1.32     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                                                                                    
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                                                                                 | 39        | 41        | 54        | 65        | 88       
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                                                                                                                                                                                                                        | 1.64      | 1.61      | 1.63      | 1.75      | 1.60     
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                                                                                                                                                                                                                         | 1.63      | 1.61      | 1.63      | 1.75      | 1.60     
|Ratio of net investment income (%)                                                                                                                                                                                                                                                                                                                                                                                     | 3.82      | 3.57      | 2.94      | 2.30      | 1.62     
|Portfolio turnover rate (%)d                                                                                                                                                                                                                                                                                                                                                                                           | 189       | 94        | 101       | 221       | 390      
|aBased 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.dThe portfolio turnover rate including mortgage dollar roll transactions was 336%, 305%,
312%, 295% and 484% for the years ended October 31, 2007, 2006, 2005, 2004 and
2003, respectively.*Amount is less than $.005.

|Class S
Years Ended October 31,                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2007      | 2006      | 2005a    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $    8.39 | $    8.41 | $    8.53
|Income from investment operations:
Net investment incomeb                                                                                                                                                                                                                                                                                                                                                                                                                               | .40       | .37       | .09      
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                 | (.00)***  | .02       | (.12)    
|Total from investment operations                                                                                                                                                                                                                                                                                                                                                                                                                                                        | .40       | .39       | (.03)    
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                                                                                                                                                                                          | (.43)     | (.41)     | (.09)    
|Redemption fees***                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | .00       | .00       | .00      
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $    8.36 | $    8.39 | $    8.41
|Total Return (%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 4.83c     | 4.92c     | (.33)**  
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 80        | 91        | 124      
|Ratio of expenses before expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                         | .66       | .73       | .59*     
|Ratio of expenses after expense reductions (%)                                                                                                                                                                                                                                                                                                                                                                                                                                          | .65       | .69       | .59*     
|Ratio of net investment income (loss) (%)                                                                                                                                                                                                                                                                                                                                                                                                                                               | 4.79      | 4.49      | 4.09*    
|Portfolio turnover rate (%)d                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 189       | 94        | 101      
|aFor the period August 1, 2005 (commencement of operations for Class S shares) to
October 31, 2005.bBased on average shares outstanding during the period.cTotal return would have been lower had certain expenses not been reduced.dThe portfolio turnover rate including mortgage dollar roll transactions was 336%, 305%
and 312% for the years ended October 31, 2007 and 2006 and for the period ended
2005, respectively.*Annualized**Not annualized***Amount is less than $.005.

|Institutional Class
Years Ended October 31,                                                                                                                                                                                                                                                                                                             | 2007      | 2006      | 2005      | 2004      | 2003     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                                
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                                    | $    8.39 | $    8.39 | $    8.64 | $    8.61 | $    8.78
|Income from investment operations:
Net investment incomea                                                                                                                                                                                                                                                                                               | .40       | .39       | .33       | .29       | .24      
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                                 | (.00)*    | .02       | (.21)     | .09       | (.03)    
|Total from investment operations                                                                                                                                                                                                                                                                                                                        | .40       | .41       | .12       | .38       | .21      
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                                                          | (.44)     | (.41)     | (.37)     | (.35)     | (.38)    
|Redemption fees                                                                                                                                                                                                                                                                                                                                         | .00*      | .00*      | .00*      |          |         
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                          | $    8.35 | $    8.39 | $    8.39 | $    8.64 | $    8.61
|Total Return (%)                                                                                                                                                                                                                                                                                                                                        | 4.94b     | 5.00      | 1.37b     | 4.48b     | 2.39     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                                     
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                                  | .19       | .11       | .23       | .17       | .34      
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                                                                                                                                                         | .81       | .50       | 1.52      | 1.59      | .53      
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                                                                                                                                                          | .67       | .50       | .70       | .71       | .53      
|Ratio of net investment income (%)                                                                                                                                                                                                                                                                                                                      | 4.78      | 4.68      | 3.87      | 3.34      | 2.69     
|Portfolio turnover rate (%)c                                                                                                                                                                                                                                                                                                                            | 189       | 94        | 101       | 221       | 390      
|aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced.cThe portfolio turnover rate including mortgage dollar roll transactions was 336%, 305%,
312%, 295% and 484% for the years ended October 31, 2007, 2006, 2005, 2004 and
2003, respectively.*Amount is less than $.005.

Notes to Financial Statements

A. Significant Accounting Policies

DWS U.S. Government Securities Fund (the ``Fund'') is registered under
the Investment Company Act of 1940, as amended (the ``1940 Act''), as an
open-end, diversified management investment company organized as a
Massachusetts business trust.

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 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 but 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 convert into another
class. Institutional Class shares are offered to a limited group of investors
and have lower ongoing expenses than other classes. 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. Institutional Class and Class S shares are not subject to
initial or contingent deferred sales charges.

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
services to shareholders, distribution and service fees 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. Debt securities are valued by independent
pricing services approved by the Trustees of the Fund. If the pricing
services are unable to provide valuations, the securities are valued at the
most recent bid quotation or evaluated price, as applicable, obtained from
a broker-dealer. Such services may use various pricing techniques which
take into account appropriate factors such as yield, quality, coupon rate,
maturity, type of issue, trading characteristics and other data, as well as
broker quotes.

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 open-end investment companies and 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.

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

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. 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.
The Fund is subject to all investment risks associated with the value of
any cash collateral received, including, but not limited to, interest rate,
credit and liquidity risk associated with such investments.

Options. An option contract is a contract in which the writer of the option
grants the buyer of the option the right to purchase from (call option), or
sell to (put option), the writer a designated instrument at a specified price
within a specified period of time. Certain options, including options on
indices, will require cash settlement by the Fund if the option is exercised.
The Fund may enter into option contracts in order to hedge against
potential adverse price movements in the value of portfolio assets; as a
temporary substitute for selling selected investments; to lock in the
purchase price of a security or currency which it expects to purchase in
the near future; as a temporary substitute for purchasing selected
investments; and to enhance potential gain.

The liability representing the Fund's obligation under an exchange traded
written option or investment in a purchased option is valued at the last
sale price or, in the absence of a sale, the mean between the closing bid
and asked prices or at the most recent asked price (bid for purchased
options) if no bid and asked prices are available. Over-the-counter written
or purchased options are valued using dealer supplied quotations. Gain or
loss is recognized when the option contract expires or is closed.

If the Fund writes a covered call option, the Fund foregoes, in exchange
for the premium, the opportunity to profit during the option period from an
increase in the market value of the underlying security above the exercise
price. If the Fund writes a put option it accepts the risk of a decline in the
market value of the underlying security below the exercise price.
Over-the-counter options have the risk of the potential inability of
counterparties to meet the terms of their contracts. The Fund's maximum
exposure to purchased options is limited to the premium initially paid. In
addition, certain risks may arise upon entering into option contracts
including the risk that an illiquid secondary market will limit the Fund's
ability to close out an option contract prior to the expiration date and that
a change in the value of the option contract may not correlate exactly with
changes in the value of the securities or currencies hedged.

Futures Contracts. A futures contract is an agreement between a buyer or
seller and an established futures exchange or its clearinghouse in which
the buyer or seller agrees to take or make a delivery of a specific amount
of a financial instrument at a specified price on a specific date (settlement
date). The Fund may enter into futures contracts as a hedge against
anticipated interest rate, currency or equity market changes, and for
duration management, risk management and return enhancement
purposes.

Upon entering into a futures contract, the Fund is required to deposit with
a financial intermediary an amount (``initial margin'') equal to a certain
percentage of the face value indicated in the futures contract. Subsequent
payments (``variation margin'') are made or received by the Fund
dependent upon the daily fluctuations in the value of the underlying
security and are recorded for financial reporting purposes as unrealized
gains or losses by the Fund. When entering into a closing transaction, the
Fund will realize a gain or loss equal to the difference between the value
of the futures contract to sell and the futures contract to buy. Futures
contracts are valued at the most recent settlement price.

Certain risks may arise upon entering into futures contracts, including the
risk that an illiquid secondary market will limit the Fund's ability to close
out a futures contract prior to the settlement date and that a change in the
value of a futures contract may not correlate exactly with the changes in
the value of the securities or currencies hedged. When utilizing futures
contracts to hedge, the Fund gives up the opportunity to profit from
favorable price movements in the hedged positions during the term of the
contract.

Mortgage Dollar Rolls. The Fund may enter into mortgage dollar rolls in
which the Fund sells to a bank or broker/dealer (the "counterparty")
mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase similar, but not identical,
securities on a fixed date. The counterparty receives all principal and
interest payments, including prepayments, made on the security while it
is the holder. The Fund receives compensation as consideration for
entering into the commitment to repurchase. The compensation is paid in
the form of a lower price for the security upon its repurchase, or
alternatively, a fee. Mortgage dollar rolls may be renewed with a new sale
and repurchase price and a cash settlement made at each renewal
without physical delivery of the securities subject to the contract.

Certain risks may arise upon entering into mortgage dollar rolls from the
potential inability of counterparties to meet the terms of their
commitments. Additionally, the value of such securities may change
adversely before the Fund is able to repurchase them. There can be no
assurance that the Fund's use of the cash that it receives from a
mortgage dollar roll will provide a return that exceeds its costs.

When-Issued/Delayed Delivery Securities. The Fund may purchase
securities with delivery or payment to occur at a later date beyond the
normal settlement period. At the time the Fund enters into a commitment
to purchase a security, the transaction is recorded and the value of the
security is reflected in the net asset value. The price of such security and
the date when the security will be delivered and paid for are fixed at the
time the transaction is negotiated. The value of the security may vary with
market fluctuations. No interest accrues to the Fund until payment takes
place. At the time the Fund enters into this type of transaction it is
required to segregate cash or other liquid assets at least equal to the
amount of the commitment.

Certain risks may arise upon entering into when-issued or delayed
delivery securities from the potential inability of counterparties to meet
the terms of their contracts or if the issuer does not issue the securities
due to political, economic, or other factors. Additionally, losses may arise
due to changes in the value of the underlying securities.

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

At October 31, 2007, the Fund had a net tax basis capital loss
carryforward of approximately $145,813,000, which may be applied
against any realized net taxable capital gains of each succeeding year until
fully utilized or until October 31, 2008 ($46,510,000), October 31, 2011
($31,950,000), October 31, 2012 ($8,994,000), October 31, 2013
($21,430,000), October 31, 2014 ($32,162,000) and October 31, 2015
($4,767,000), the respective expiration dates, whichever occurs first.

During the year ended October 31, 2007, approximately $29,638,000 of
prior year capital loss carryforward expired.

In July 2006, FASB issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes  an interpretation of FASB Statement
No. 109" (the "Interpretation"). The Interpretation establishes for the
Fund a minimum threshold for financial statement recognition of the
benefit of positions taken in filing tax returns (including whether the Fund
is taxable in certain jurisdictions), and requires certain expanded tax
disclosures. The Interpretation is effective for fiscal years beginning after
December 15, 2006. On December 22, 2006, the SEC indicated that they
would not object if a Fund implements FIN 48 in the first required financial
statement reporting period for its fiscal year beginning after December 15,
2006. Management is evaluating the application of the Interpretation to
the Fund and is not in a position at this time to estimate the significance
of its impact, if any, on the Fund's financial statements.

Distribution of Income and Gains. Net investment income of the Fund, is
declared and distributed to shareholders monthly. 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 investments in futures, mortgage backed securities, premium
amortization on debt securities and certain securities sold at a loss. As
a result, net investment income (loss) 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 October 31, 2007, the Fund's components of distributable earnings
(accumulated losses) on a tax-basis were as follows:

|Undistributed ordinary income                         | $       10,323,863  
|----------------------------------------------------- | --------------------
|Capital loss carryforwards                            | $(145,813,000)      
|Unrealized appreciation (depreciation) on investments | $       (10,370,158)

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

|                                   | Years Ended October 31,
|---------------------------------- | -----------------------
|                                   | 2007                   
|Distributions from ordinary income | $       112,665,783    

Redemption Fees. The Fund imposes a redemption fee of 2% of the total
redemption amount on the 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.

Other. Investment transactions are accounted for on a 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. Realized gains and
losses from investment transactions are recorded on an identified cost
basis. All premiums and discounts are amortized/accreted for financial
reporting purposes.

B. Purchases and Sales of Securities

During the year ended October 31, 2007, purchases and sales of
investment securities (excluding short-term investments, US Treasury
obligations and mortgage dollar rolls) aggregated $4,593,027,650 and
$4,702,523,642, respectively. Purchases and sales of US Treasury
obligations aggregated $97,938,321 and $194,331,196, respectively.
Mortgage dollar rolls aggregated $3,656,840,331 and $3,992,764,343,
respectively.

For the year ended October 31, 2007, transactions for written options on
securities were as follows:

|                                 | Number of
Contracts | Premium        
|-------------------------------- | ------------------- | ---------------
|Outstanding, beginning of period | 50,000,000          | $       220,700
|Options written                  | 1,190,540,000       | 6,098,507      
|Options closed                   | (161,655,000)       | (668,845)      
|Options exercised                | (25,000,000)        | (136,717)      
|Options expired                  | (628,885,000)       | (3,093,722)    
|Outstanding, end of period       | 425,000,000         | $    2,419,923 

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.
In addition to portfolio management services, the Advisor provides certain
administrative services in accordance with the Investment Management
Agreement.

The Fund pays a monthly management fee computed and accrued daily
and payable monthly at the following annual rates:

|First $250 million of the Fund's average daily net assets | .45%
|--------------------------------------------------------- | ----
|Next $750 million of such net assets                      | .43%
|Next $1.5 billion of such net assets                      | .41%
|Next $2.5 billion of such net assets                      | .40%
|Next $2.5 billion of such net assets                      | .38%
|Next $2.5 billion of such net assets                      | .36%
|Next $2.5 billion of such net assets                      | .34%
|Over $12.5 billion of such net assets                     | .32%

Accordingly, for the year ended October 31, 2007, the fee pursuant to the
Investment Management Agreement was equivalent to an annual
effective rate of 0.42% of the Fund's average daily net assets.

For the period from November 1, 2006 (from February 1, 2007 for Class B
shares) through September 30, 2007, the Advisor had contractually agreed
to waive all or a portion of its management fee and reimburse or pay
certain operating expenses of the Fund (excluding certain expenses such
as extraordinary expenses, taxes, brokerage, interest and organizational
and offering expenses) to the extent necessary to maintain the annual
expenses of certain classes as follows:

|Class B             | 1.73%
|------------------- | -----
|Class S             | .69% 
|Institutional Class | .66% 

Effective October 1, 2007 through September 30, 2008 (through July 29,
2008 for Class S shares) the Advisor has contractually agreed to waive all
or a portion of its management fee and reimburse or pay certain operating
expenses of the Fund (excluding certain expenses such as extraordinary
expenses, taxes, brokerage and interest expense) to the extent necessary
to maintain the operating expenses of certain classes as follows:

|Class B             | 1.73%
|------------------- | -----
|Class S             | .71% 
|Institutional Class | .73% 

Service Provider Fees. DWS Scudder Investments Service Company
("DWS-SISC"), an affiliate of the Advisor, is the transfer agent,
dividend-paying agent and shareholder service agent for the Fund. Prior to
April 1, 2007, DWS Scudder Service Corporation ("DWS-SSC"), an affiliate
of the Advisor, was the transfer agent, dividend-paying agent and
shareholder service agent for Class S shares of the Fund. Effective April 1,
2007, DWS-SSC merged with DWS-SISC. The Board of the Fund approved
a new transfer agency agreement between the Fund and DWS-SISC. The
new transfer agency agreement is identical in substance to the previous
transfer agency agreement for the Fund, except for the named transfer
agent. Pursuant to a sub-transfer agency agreement among DWS-SISC,
DWS-SSC (through March 31, 2007) and DST Systems, Inc. ("DST"),
DWS-SISC and DWS-SSC have delegated certain transfer agent and
dividend paying agent functions to DST. DWS-SISC and DWS-SSC
compensate DST out of the shareholder servicing fee they receive from
the Fund. For the year ended October 31, 2007, the amounts charged to
the Fund by DWS-SISC and DWS-SSC (through March 31, 2007) were as
follows:

|Services to Shareholders | Total
Aggregated  | Waived    | Unpaid at
October 31,
2007
|------------------------ | ----------------- | --------- | --------------------------
|Class A                  | $       2,293,716 | $        | $       392,013           
|Class B                  | 105,416           |          | 20,601                    
|Class C                  | 60,339            |          | 11,787                    
|Class S                  | 118,360           |          | 33,763                    
|Institutional Class      | 377               | 153       | 49                        
|                         | $    2,578,208    | $    153  | $    458,213              

Distribution and Service Fees. Under the Fund's Class B and Class C
12b-1 plans, DWS Scudder Distributors, Inc., ("DWS-SDI"), an affiliate of
the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily
net assets of each of Class B and Class C shares. In accordance with the
fund's Underwriting and Distribution Services Agreement, DWS-SDI
enters into related selling group agreements with various firms at various
rates for sales of Class B and C shares, respectively. For the year ended
October 31, 2007, the Distribution Fee was as follows:

|Distribution Fee | Total
Aggregated | Unpaid at
October 31,
2007
|---------------- | ---------------- | --------------------------
|Class B          | $       345,269  | $       24,605            
|Class C          | 304,863          | 25,125                    
|                 | $    650,132     | $    49,730               

In addition, DWS-SDI provides information and administrative services for
a fee ("Service Fee") to the Fund at an annual rate of up to 0.25% of
average daily net assets for Class A, B and C shareholders. DWS-SDI 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 October 31, 2007, the
Service Fee was as follows:

|Service Fee | Total
Aggregated  | Unpaid at
October 31,
2007 | Annual
Effective Rate
|----------- | ----------------- | -------------------------- | ---------------------
|Class A     | $       4,637,761 | $       362,646            | .22%                 
|Class B     | 112,605           | 8,019                      | .24%                 
|Class C     | 99,591            | 7,529                      | .25%                 
|            | $    4,849,957    | $    378,194               |                      

Underwriting and Contingent Deferred Sales Charge. DWS-SDI is the
principal underwriter for the Fund. Underwriting commissions paid in
connection with the distribution of Class A shares for the year ended
October 31, 2007 aggregated $58,668.

In addition, DWS-SDI 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 October 31, 2007, the CDSC
for Class B and C shares aggregated $144,364 and $3,471, respectively. A
deferred sales charge of up to 0.85% is assessed on certain redemptions
of Class A shares. For the year ended October 31, 2007, DWS-SDI
received $3,614 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 October 31, 2007, the
amount charged to the Fund by DIMA included in the Statement of
Operations under "reports to shareholders" aggregated $33,251, of
which $10,734 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.

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

For the year ended October 31, 2007, the Advisor agreed to reimburse the
Fund $28,645, which represents a portion of the fee savings expected to
be realized by the Advisor related to the outsourcing by the Advisor of
certain administrative services to an unaffiliated service provider.

In addition, the Fund has entered into an arrangement with its custodian
and transfer agent whereby credits realized as a result of uninvested cash
balances are used to reduce a portion of the Fund's custodian expenses.
During the year ended October 31, 2007, the Fund's custodian fees were
reduced by $3,207 and $86,640, respectively, for custodian and transfer
agent credits earned.

E. Line of Credit

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

F. Share Transactions

The following table summarizes share and dollar activity of the Fund:

|                                           | Year Ended October 31, 2007 | Year Ended October 31, 2006
|------------------------------------------ | --------------------------- | ---------------------------
|                                           | Shares                      | Dollars                    
|Shares sold                               
|Class A                                    | 10,105,448                  | $       84,410,290         
|Class B                                    | 458,382                     | 3,803,655                  
|Class C                                    | 1,580,050                   | 13,222,391                 
|Class S                                    | 380,717                     | 3,171,386                  
|Institutional Class                        | 10,570                      | 87,771                     
|                                           |                             | $    104,695,493           
|Shares issued in reinvestment of dividends
|Class A                                    | 9,054,681                   | $       75,434,127         
|Class B                                    | 186,580                     | 1,552,965                  
|Class C                                    | 152,935                     | 1,276,691                  
|Class S                                    | 292,803                     | 2,439,596                  
|Institutional Class                        | 788                         | 6,556                      
|                                           |                             | $    80,709,935            
|Shares redeemed                           
|Class A                                    | (43,551,556)                | $       (363,471,071)      
|Class B                                    | (3,131,745)                 | (26,097,479)               
|Class C                                    | (2,004,040)                 | (16,765,802)               
|Class S                                    | (1,958,596)                 | (16,342,780)               
|Institutional Class                        | (2,388)                     | (19,887)                   
|                                           |                             | $    (422,697,019)         
|Redemption fees                            | $    16,014                 |                            
|Net increase (decrease)                   
|Class A                                    | (24,391,427)                | $       (203,617,010)      
|Class B                                    | (2,486,783)                 | (20,739,116)               
|Class C                                    | (271,055)                   | (2,264,211)                
|Class S                                    | (1,285,076)                 | (10,729,680)               
|Institutional Class                        | 8,970                       | 74,440                     
|                                           |                             | $    (237,275,577)         

G. Payment made by Affiliates

During the year ended October 31, 2007, the Advisor fully reimbursed the
Fund $168,629 for a fee previously charged to the Fund. This
reimbursement was treated as a capital contribution and is reported as
"Reimbursement by Advisor" on the Statement of Changes in Net
Assets.

Report of Independent Registered
Public Accounting Firm

To the Shareholders and Board of Trustees of DWS U.S. Government
Securities Fund:

We have audited the accompanying statement of assets and liabilities of
DWS U.S. Government Securities Fund (the "Fund"), including the
investment portfolio, as of October 31, 2007, the related statement of
operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, and the
financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.

We conducted our audits 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 and financial highlights are free of
material misstatement. We were not engaged to perform an audit of the
Fund's internal control over financial reporting. Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Fund's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements and
financial highlights, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2007, by correspondence with the
custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audits provide
a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of DWS
U.S. Government Securities Fund at October 31, 2007, the results of its
operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the periods indicated therein, in conformity with U.S. generally
accepted accounting principles.

|Boston, Massachusetts
December 27, 2007 |  | usg_eny0
|--------------------------------------- |  | --------

Tax Information(Unaudited)

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" or the "Advisor") in September 2007. As part of its review
process, the Board requested and evaluated all information it deemed
reasonably necessary to evaluate the Agreement. Over the course of
several months, the Contract Review Committee, in coordination with the
Fixed-Income Oversight Committee and the Operations Committee of the
Board, reviewed comprehensive materials received from the Advisor,
independent third parties and independent counsel. These materials
included an analysis of the Fund's performance, fees and expenses, and
profitability compiled by an independent fee consultant. The Board also
received extensive information throughout the year regarding
performance and operating results of the Fund. Based on their evaluation
of the information provided, the Committees presented their findings and
recommendations to the Independent Trustees as a group. The
Independent Trustees then reviewed the Committees' findings and
recommendations and presented their recommendations to the full
Board. Throughout their consideration of the Agreement, the Independent
Trustees were advised by their independent legal counsel and by an
independent fee consultant.

In connection with the contract review process, the various Committees
and the Board considered the factors discussed below, among others.
The Board also considered that the Advisor and its predecessors have
managed the Fund since its inception, and the Board believes that a
long-term relationship with a capable, conscientious advisor is in the
best interests of the Fund. The Board considered, generally, that
shareholders invested in the Fund, or approved the investment
management agreement for the Fund, knowing that the Advisor managed
the Fund and knowing the investment management fee schedule. The
Board considered Deutsche Bank's commitment that it will devote to the
Advisor and its affiliates all attention and resources that are necessary to
provide the Fund with top-quality investment management and
shareholder, administrative and product distribution services.

Nature, Quality and Extent of Services. The Board considered the nature,
extent and quality of services provided under the Agreement, including
portfolio management services and administrative services. The Board
considered the experience and skills of senior management and
investment personnel, the resources made available to such personnel,
the ability of the Advisor to attract and retain high-quality personnel, and
the organizational depth and stability of the Advisor. 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 considered whether investment results were consistent with the
Fund's investment objective and policies. 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 the
Advisor regarding such funds, along with the Advisor's remedial plans to
address underperformance. The Board believes this process is an
effective manner of addressing poorly performing funds at this time.

On the basis of this evaluation and the ongoing review of investment
results by the Fixed-Income Oversight Committee, the Board concluded
that the nature, quality and extent of services provided by the Advisor
historically have been and continue to be satisfactory, and that the Fund's
performance over time was satisfactory.

Fees and Expenses. The Board considered the Fund's management
fee rate, operating expenses and total expense ratios, and compared
management fees to a peer group and total expenses to a broader
peer universe based on information and data supplied by Lipper and
supplemented by the independent fee consultant. The information
provided to the Board, which included the effect of expense caps for
Class B and Institutional Class shares that expired on October 1, 2007,
showed that the Fund's management fee rate was at the 18th percentile
of the peer group, and that the Fund's total expense ratios (excluding any
12b-1 fees) were at the following percentiles of the expense universe: the
45thpercentile for Class A shares, the 66thpercentile for Class B shares,
the 62ndpercentile for Class C shares, the 54th percentile for Institutional
Class shares and the 59thpercentile for Class S shares (formerly Class M
shares). The Board also considered the Fund's management fee rate as
compared to fees charged by the Advisor and certain of its affiliates for
comparable mutual funds and considered differences in fund and fee
structures among the DWS Funds. The Board also took into account the
Advisor's commitment to cap total expenses for Class S shares (formerly
Class M shares) until July 30, 2008.

To address the potential effect of the expiring expense caps on total
expenses for Class B and Institutional Class shares, the Board
recommended caps on total expenses through September 30, 2008 as
follows: 1.731% for Class B shares and 0.731% for Institutional Class
shares. On the basis of the information provided, the Board concluded
that management fees, coupled with the Advisor's commitment to cap
expenses as recommended, were reasonable and appropriate in light of
the nature, quality and extent of services provided by the Advisor. The
Board noted that, although total expense ratios for certain share classes
were above the median of the peer universe, such total expense ratios
(after the recommended expense caps) were within an acceptable range
of the peer universe and consistent with reasonable expectations in light
of the nature, quality and extent of services provided by the Advisor.

Profitability. The Board reviewed detailed information regarding revenues
received by the Advisor under the Agreement. The Board considered the
estimated costs and pre-tax profits realized by the Advisor 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 Scudder
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. Although the Board noted the inherently
subjective nature of any allocation methodology, the Board received an
attestation report from an accounting firm affirming that the allocation
methods were consistently applied and were based upon practices
commonly used in the investment management industry. 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.

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 considered
whether the management fee schedule under the Agreement is
reasonable in relation to the asset size of the Fund. The Board noted that
the management fee included seven breakpoints, designed to share
economies of scale with Fund shareholders. The Board concluded that the
management fee schedule, together with the expense caps, reflects an
appropriate level of sharing of any economies of scale.

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 the Advisor for administrative
services provided to the Fund and any fees received by an affiliate of the
Advisor for distribution services. The Board also considered benefits to
DIMA related to brokerage and soft-dollar allocations, 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 DeAM products and services. The
Board concluded that management fees were reasonable in light of these
fallout benefits.

Based on all of the information considered and the conclusions reached,
the Board (including a majority of the Independent Trustees) determined
that the terms of the Agreement continue to be fair and reasonable and
that the continuation of the Agreement is in the best interests of the
Fund. No single factor was determinative in the Board's analysis.

Summary of Management Fee Evaluation
by Independent Fee Consultant

October 26, 2007

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

Qualifications

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

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

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

Evaluation of Fees for each DWS Scudder Fund

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

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

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

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

Fees and Expenses Compared with Other Funds

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

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

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

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

DeAM's Fees for Similar Services to Others

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

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

Costs and Profit Margins

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

Economies of Scale

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

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

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

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

Quality of Service  Performance

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

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

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

Complex-Level Considerations

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

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

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

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

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

Findings

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

usg_m0Thomas H. Mack

Trustees and Officers

The following table presents certain information regarding the Board
Members and Officers of the fund as of October 31, 2007. Each
individual's year of birth is set forth in parentheses after his or her name.
Unless otherwise noted; (i) each individual 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
individual is c/o Deutsche Asset Management, 222 South Riverside Plaza,
Chicago, Illinois 60606. Each Board Member's term of office extends until
the next shareholders' meeting called for the purpose of electing such
Board Members and until the election and qualification of a successor, or
until such Board Member sooner dies, retires, resigns or is removed as
provided in the governing documents of the fund.

|Independent Board Members                                                     
|------------------------------------------------------------------------------
|Name, Year of
Birth, Position(s)
Held with the
Fund and Length
of Time Served1
|Paul K. Freeman
(1950)Chairperson since
2007, and Board
Member,
2002-present  
|John W. Ballantine
(1946)Board Member,
1999-present                           
|Donald L. Dunaway
(1937)Board Member,
1980-present                            
|James R. Edgar
(1946)Board Member,
1999-present                               
|Robert B. Hoffman
(1936)Board Member,
1981-present                            
|William McClayton
(1944)Board Member,
2004-present                            
|Shirley D. Peterson
(1941)Board Member,
1995-present                          
|Robert H.
Wadsworth(1940)Board Member,
2004-present                           

|Officers2                                                                           
|------------------------------------------------------------------------------------
|Name, Year of
Birth, Position(s)
Held with the
Fund and Length
of Time Served1      
|Michael G. Clark4
(1965)President,
2006-present                                     
|Philip J. Collora
(1945)Vice President and
Assistant Secretary,
1986-present        
|Paul H. Schubert4
(1963)Chief Financial
Officer,
2004-presentTreasurer,
2005-present
|John Millette5
(1962)Secretary,
2001-present                                        
|Patricia DeFilippis4(1963)Assistant Secretary,
2005-present                         
|Elisa D. Metzger4,(1962)Assistant Secretary
2005-present                            
|Caroline Pearson5
(1962)Assistant Secretary,
1998-present                           
|Paul Antosca5
(1957)Assistant Treasurer,
2007-present                               
|Kathleen Sullivan
D'Eramo5(1957)Assistant Treasurer,
2003-present                   
|Jason Vazquez4
(1972)Anti-Money
Laundering
Compliance Officer,
2007-present         
|Robert Kloby4(1962)Chief Compliance
Officer,
2006-present                           

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

Account Management Resources

|                      
|----------------------
|For More
Information  
|Web Site              
|Written
Correspondence
|Proxy Voting          
|Principal
Underwriter 

|              | Class A    | Class B    | Class C    | Class S    | Institutional
Class
|------------- | ---------- | ---------- | ---------- | ---------- | -------------------
|Nasdaq Symbol | KUSAX      | KUSBX      | KUSCX      | KUSMX      | KUSIX              
|CUSIP Number  | 23338C 108 | 23338C 207 | 23338C 306 | 23338C 405 | 23338C 504         
|Fund Number   | 018        | 218        | 318        | 2098       | 1418               

Notes

Notes

Notes

Notes

usg_backcover0

ITEM 2.
        CODE OF ETHICSAs of the end of the period, October 31, 2007, DWS U.S. Government 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 Funds Board of Directors/Trustees has determined that the Fund has at least one audit committee financial expert serving on its audit  committee: Mr. William McClayton, Mr. Donald Dunaway and Mr. Robert Hoffman. Each of these audit committee members is independent, meaning that he is not an interested person of the Fund (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940) and he does not accept any consulting, advisory, or other compensatory fee from the Fund (except in the capacity as a Board or committee member).

An audit committee financial expert is not an expert for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an audit committee financial expert. Further, the designation of a person as an audit committee financial expert does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the audit committee financial expert designation. Similarly, the designation of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.ITEM 4.
        PRINCIPAL ACCOUNTANT FEES AND SERVICES
 DWS U.S. GOVERNMENT SECURITIES FUND FORM N-CSR DISCLOSURE RE: AUDIT FEES The following table shows the amount of fees that Ernst & Young, LLP (E&Y), the Funds Independent Registered Public Accountant, 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 E&Y 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 Accountant Billed to the Fund Fiscal YearEndedOctober 31
        Audit Fees Billed to Fund
        Audit-RelatedFees Billed to Fund
        Tax Fees Billed to Fund
        AllOther Fees Billed to Fund2007
        $67,440
        $0
        $9,196
        $02006
        $66,509
        $0
        $9,069
        $0
  The above "Tax Fees" were billed for professional services rendered for tax return preparation.   Services that the Funds Independent Registered Public Accountant Billed to the Adviser and Affiliated Fund Service Providers

The following table shows the amount of fees billed by E&Y 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 YearEndedOctober 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 Providers2007
        $250,000
        $486,614
        $02006
        $80,000
        $316,254
        $0



The Audit-Related Fees were billed for services in connection with agreed upon procedures related to fund mergers and the above Tax Fees were billed in connection with tax compliance services and agreed upon procedures.

Non-Audit Services

The following table shows the amount of fees that E&Y billed during the Funds last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that E&Y 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 E&Y about any non-audit services that E&Y rendered during the Funds last fiscal year to the Adviser and any Affiliated Fund Service Provider.  The Committee considered this information in evaluating E&Ys independence.




Fiscal YearEndedOctober 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)2007
        $9,196
        $486,614
        $1,129,726
        $1,625,5362006
        $9,069
        $316,254
        $891,699
        $1,217,022





All other engagement fees were billed for services in connection with internal control reviews, agreed upon procedures and tax compliance for DeIM and other related entities that provide support for the operations of the fund.



***



In connection with the audit of the 2006 and 2007 financial statements, the Fund entered into an engagement letter with E&Y.  The terms of the engagement letter required by E&Y, and agreed to by the Audit Committee, include provisions in which the parties consent to the sole jurisdiction of federal courts in New York, Boston or the Northern District of Illinois, as well as a waiver of right to a trial by jury and an exclusion of punitive damages.



***

E&Y recently advised the Funds Audit Committee that certain arrangements between the Ernst & Young member firm in Germany (E&Y Germany) and Deutsche Bank AG (DB) had been determined to be inconsistent with the SEC auditor independence rules.  DB is within the Investment Company Complex (as defined by SEC rules) and therefore covered by the SEC auditor independence rules applicable to the Fund.  In 2006 and 2007, DB provided standard overdraft protection on a depository account and a guarantee of certain lease deposits to E&Y Germany.  E&Y advised the Audit Committee that while neither of these arrangements was ever utilized by E&Y Germany, they could constitute lending type arrangements in violation of Rule 2-01 of Regulation S-X.  (Rule 2-01(c)(1)(ii)(A) provides that an accountant is not independent when an accounting firm
has a loan to or from an audit client.)  E&Y advised the Audit Committee that E&Y believes its independence has not been impacted as it relates to the audits of the Fund.  In reaching this conclusion, E&Y noted a number of factors, including that neither of the arrangements was ever utilized and, accordingly, E&Y Germany never had amounts outstanding to DB, these arrangements were immaterial to E&Y Germany and DB and the E&Y professionals responsible for the Funds audits were not aware of these arrangements.  E&Y informed the Audit Committee that E&Y Germany has cancelled the overdraft arrangements and has terminated the guarantee on the lease deposits.


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 Procedures and Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to the Fund's Secretary for the attention of the Chairman of the Nominating and Governance Committee, Two International Place, Boston, MA 02110. Suggestions for candidates must include a resume of the candidate.





ITEM 11.
        CONTROLS AND PROCEDURES(a)          The Chief Executive and Financial Officers concluded that the Registrants Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.(b)          There have been no changes in the registrants internal control over financial reporting that occurred during the registrants last half-year (the registrants second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal controls over financial reporting.ITEM 12.
        EXHIBITS(a)(1)     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 U.S. Government Securities Fund
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        December 28, 2007
   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 U.S. Government Securities Fund
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        December 28, 2007
   By:
        /s/Paul Schubert
 Paul Schubert
 Chief Financial Officer and Treasurer  Date:
        December 28, 2007