Filed electronically with the Securities and Exchange Commission
                              on November 25, 2008

                                                               File No. 33-86070
                                                               File No. 811-8606

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                    FORM N-1A


                   REGISTRATION STATEMENT UNDER THE SECURITIES
                                ACT OF 1933                             |__|
                         Pre-Effective Amendment No_                    |__|
                       Post-Effective Amendment No. 25                  |X|
                                     and/or         --
                        REGISTRATION STATEMENT UNDER THE
                       INVESTMENT COMPANY ACT OF 1940                   |__|

                              Amendment No. 27                          |X|
                                            --


                             DWS Target Date Series
                             ----------------------
               (Exact Name of Registrant as Specified in Charter)

                                 345 Park Avenue
                                 ---------------
                             New York, NY 10154-0004
               (Address of Principal Executive Offices) (Zip Code)

       Registrant's Telephone Number, including Area Code: (617) 295-2572
                                                           --------------
                                  John Millette
                  Deutsche Investment Management Americas Inc.
                       One Beacon Street, Boston MA 02108
                     (Name and Address of Agent for Service)

It is proposed that this filing will become effective (check appropriate box):

|__|  Immediately upon filing pursuant to paragraph (b)
|X|   On December 1, 2008 pursuant to paragraph (b)
|__|  60 days after filing pursuant to paragraph (a)(1)
|__|  On ___________ pursuant to paragraph (a)(1)
|__|  75 days after filing pursuant to paragraph (a)(2)
|__|  On ___________ pursuant to paragraph (a)(2) of Rule 485

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




<PAGE>


This  Post-Effective  Amendment  contains the  Prospectuses  and  Statements  of
Additional Information relating to the following series of the Registrant:

o  DWS LifeCompass Retirement Fund - Classes A, B, C and S
o  DWS LifeCompass 2015 Fund - Classes A, B, C and S
o  DWS LifeCompass 2020 Fund - Classes A, B, C and S
o  DWS LifeCompass 2030 Fund - Classes A, B, C and S
o  DWS LifeCompass 2040 Fund - Classes A, C and S

This  Post-Effective  Amendment  is not  intended  to  update or amend any other
Prospectuses or Statements of Additional  Information of the Registrant's  other
series or classes.


<PAGE>



                                DECEMBER 1, 2008








                                   PROSPECTUS
                              ------------------


              DWS LIFECOMPASS RETIREMENT FUND - Classes A, B and C


                 DWS LIFECOMPASS 2015 FUND - Classes A, B and C


                 DWS LIFECOMPASS 2020 FUND - Classes A, B and C


                 DWS LIFECOMPASS 2030 FUND - Classes A, B and C



                  DWS LIFECOMPASS 2040 FUND - Classes A and C


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



                                                 RESHAPING INVESTING. [DWS Logo]
                                                             Deutsche Bank Group


<PAGE>

CONTENTS





<TABLE>
<S>      <C>
HOW EACH FUND WORKS
  4      DWS LifeCompass
         Retirement Fund
 15      DWS LifeCompass 2015 Fund
 26      DWS LifeCompass 2020 Fund
 37      DWS LifeCompass 2030 Fund
 48      DWS LifeCompass 2040 Fund
 57      Other Policies and Secondary
         Risks
 59      Who Manages and Oversees
         the Funds
 62      Financial Highlights


</TABLE>
<TABLE>
<S>      <C>
HOW TO INVEST IN THE FUNDS
 78      Choosing a Share Class
 84      How to Buy Class A, B and C
         Shares
 85      How to Exchange or Sell
         Class A, B and C Shares
 88      Policies You Should Know
         About
 99      Understanding Distributions
         and Taxes
103      Appendix
</TABLE>


<PAGE>

HOW EACH FUND WORKS

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


These funds use an asset allocation strategy, dividing their assets among
different types of investments. All five funds invest in other DWS funds and
non-affiliated investment companies. Each fund is designed for investors with a
particular time horizon or risk profile, and invests in a distinct mix of
funds. Because the underlying funds hold a range of securities, an investment
in a fund may offer exposure to thousands of individual securities.

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

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

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


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

<PAGE>



<TABLE>
<S>                                  <C>        <C>        <C>
                                      Class A    Class B    Class C
  ticker symbol                       SUCAX      SUCBX      SUCCX
    fund number                       480        680        780
    DWS LIFECOMPASS RETIREMENT FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks current income and, as a secondary objective,
            long-term growth of capital. The fund is designed for investors who
            are already in retirement or who plan to retire or begin
            withdrawing portions of their investments in the near future. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the desired economic exposure to a
            particular market or sector is not available through a DWS fund.

            The fund has a target asset allocation (see sidebar), which the
            managers use as a reference point in setting the fund's actual
            asset allocation. While the actual asset allocation may vary, the
            managers expect over the long term it will average out to be
            similar to the target asset allocation.

            The managers regularly review the actual asset allocation and may
            adjust it based on current or expected market conditions or to
            manage risk. In making their asset allocation decisions, the
            managers use a proprietary mix of quantitative and qualitative
            inputs to arrive at a view for the securities markets and segments
            of those markets. These inputs include, but are not limited to,
            return forecasts for asset classes and investment guidelines. Based
            on the desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.

            In order to mitigate the risks associated with a particular fund
            or manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's target allocation is approximately:

- 35% Equity funds; and
- 65% Fixed Income funds.




4 | DWS LifeCompass Retirement Fund
<PAGE>


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.



                                            DWS LifeCompass Retirement Fund  | 5
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.



6 | DWS LifeCompass Retirement Fund
<PAGE>


            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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

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



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


                                            DWS LifeCompass Retirement Fund  | 7
<PAGE>

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


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

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


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

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


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

            DERIVATIVES RISK. Risks associated with derivatives include the
            risk that the derivative is not well correlated with the security,
            index or currency to which it relates; the risk that derivatives
            may result in losses or missed opportunities; the risk that the
            fund will be unable to sell the derivative because of an illiquid
            secondary market; the risk that a counterparty is unwilling or
            unable to meet its obligation; and the risk that the derivative
            transaction could expose the fund to the effects of leverage, which
            could increase the fund's exposure to the market and magnify
            potential losses. There is no guarantee that derivatives, to the
            extent employed, will have the intended



8 | DWS LifeCompass Retirement Fund
<PAGE>


            effect, and their use could cause lower returns or even losses to
            the fund. The use of derivatives by the fund to hedge risk may
            reduce the opportunity for gain by offsetting the positive effect
            of favorable price movements.

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

            Other factors that could affect performance include:



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



                                            DWS LifeCompass Retirement Fund  | 9
<PAGE>

THE FUND'S PERFORMANCE HISTORY

While a fund's past performance (before and after taxes) isn't necessarily a
sign of how it will do in the future, it can be valuable for an investor to
know.


The bar chart shows how the performance of the fund's Class A shares has varied
from year to year, which may give some idea of risk. The bar chart does not
reflect sales loads; if it did, total returns would be lower than those shown.
The table on the following page shows how fund performance compares to relevant
index performance (which, unlike fund performance, does not reflect fees or
expenses). The table includes the effects of maximum sales loads on fund
performance. The performance of the fund and the index information varies over
time. All figures assume reinvestment of dividends and distributions (in the
case of after-tax returns, reinvested net of assumed tax rates).


The table shows returns for Class A shares on a before-tax and after-tax basis.
After-tax returns are shown for Class A only and will vary for Classes B and C.
After-tax returns are estimates calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown in the table. After-tax returns shown
are not relevant for investors who hold their shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

The inception date for Class A shares was December 29, 2000. In the bar chart,
the performance figures for Class A for periods prior to that date are based on
the historical performance of the fund's original share class (Class S),
adjusted to reflect the higher gross total annual operating expenses of Class
A.

In the table, the performance figures for each share class prior to its
inception are based on the historical performance of the fund's original share
class (Class S), adjusted to reflect both the higher gross total annual
operating expenses of Classes A, B or C and the current applicable sales
charges of Classes A, B or C. Class S shares are offered in a different
prospectus.

DWS LifeCompass Retirement Fund

ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - CLASS A (Results do not reflect
sales loads; if they did, total returns would be lower than those shown.)




<TABLE>
<S>       <C>       <C>       <C>        <C>       <C>        <C>       <C>       <C>       <C>
 5.34      2.55      2.83      -3.17      5.94     13.27       7.42      4.43      9.10     4.42
1998      1999      2000      2001       2002      2003       2004      2005      2006      2007
</TABLE>







<TABLE>
<CAPTION>
2008 TOTAL RETURN AS OF SEPTEMBER 30: -11.68%
<S>                                           <C>
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 7.55%, Q2 2003                  WORST QUARTER: -5.66%, Q3 2002
</TABLE>




10 | DWS LifeCompass Retirement Fund
<PAGE>


AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007




<TABLE>
<CAPTION>
                                               1 YEAR       5 YEARS      10 YEARS
<S>                                          <C>           <C>          <C>
 CLASS A
   Return before Taxes                           -1.59         6.41        3.28
   Return after Taxes on Distributions           -2.78         5.35        1.83
   Return after Taxes on Distributions
   and Sale of Fund Shares                      -0.92*         4.81        1.86*
 CLASS B (Return before Taxes)                  0.64           6.73        3.13
 CLASS C (Return before Taxes)                  3.74           6.89        3.14
 RUSSELL 1000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         5.77          13.43        6.20
 RUSSELL 2000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         -1.57         16.25        7.08
 BARCLAYS CAPITAL INTERMEDIATE U.S.
 AGGREGATE INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         7.02           4.22        5.83
 CREDIT SUISSE HIGH YIELD INDEX
 (reflects no deductions for fees,
 expenses or taxes)                             2.65          10.97        6.10
 MERRILL LYNCH 3-MONTH US TREASURY
 BILL INDEX (reflects no deductions for
 fees, expenses or taxes)                       5.03           3.07        3.77
 MORGAN STANLEY CAPITAL
 INTERNATIONAL (MSCI) EUROPE,
 AUSTRALASIA AND THE FAR EAST (EAFE)
 INDEX (reflects no deductions for fees,
 expenses or taxes)                            11.17          21.59        8.66
</TABLE>




 *   Return after Taxes on Distributions and Sale of Fund Shares is higher than
     Return after Taxes on Distributions for the same period due to a capital
     loss occurring upon redemption resulting in an assumed tax deduction for
     the shareholder.

 Total returns would have been lower if the advisor had not reduced the
 expenses of certain of the underlying funds.

 RUSSELL 1000 (Reg. TM) INDEX is an unmanaged price-only index of the 1,000
 largest capitalized companies that are domiciled in the US and whose common
 stocks are traded.


 RUSSELL 2000 (Reg. TM) INDEX is an unmanaged capitalization-weighted measure
 of approximately 2,000 small US stocks.


 BARCLAYS CAPITAL INTERMEDIATE U.S. AGGREGATE INDEX (name changed from Lehman
 Brothers Intermediate U.S. Aggregate Index effective November 3, 2008) is an
 unmanaged index that covers the US investment-grade fixed-rate bond market,
 including government and credit securities, agency mortgage securities,
 asset-backed securities and commercial mortgage-backed securities.



                                           DWS LifeCompass Retirement Fund  | 11
<PAGE>


 CREDIT SUISSE HIGH YIELD INDEX is an unmanaged trader-priced portfolio,
 constructed to mirror the global high-yield debt market.


 MERRILL LYNCH 3-MONTH US TREASURY BILL INDEX is an unmanaged index capturing
 the performance of a single issue maturing closest to, but not exceeding,
 three months from the re-balancing date.


 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND THE FAR EAST
 (MSCI EAFE (Reg. TM)) INDEX is an unmanaged index that tracks international
 stock performance in the 21 developed markets of Europe, Australasia and the
 Far East.



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

Current performance may be higher or lower than the performance data quoted
above. For more recent performance information, call your financial advisor or
(800) 621-1048 or visit our Web site at www.dws-investments.com.



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

Return information assumes that fund shares were sold at the end of the period.


RETURN AFTER TAXES ON DISTRIBUTIONS reflects taxes only on the fund's
distributions and not on a shareholder's gain or loss from selling fund shares.


RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES reflects taxes on
both the fund's distributions and a shareholder's gain or loss from selling
fund shares.



12 | DWS LifeCompass Retirement Fund
<PAGE>

HOW MUCH INVESTORS PAY


This table describes the fees and expenses that you may pay if you buy and hold
fund shares. The fund's shareholders directly bear the fees and expenses of the
fund, subject to any contractual obligation that the Advisor has to waive fees
or reimburse expenses to maintain the fund's operating expenses at a specified
level (see "Total Annual Operating Expenses" in the table below). The fund will
indirectly bear its proportionate share of fees and expenses incurred by the
underlying DWS funds and exchange-traded funds in which the fund is invested
(see "Acquired Funds (Underlying Funds) Fees and Expenses" in the table below).
This information doesn't include any fees that may be charged by your financial
advisor.




<TABLE>
<CAPTION>
FEE TABLE                                        CLASS A         CLASS B       CLASS C
<S>                                         <C>                 <C>          <C>
 SHAREHOLDER FEES, paid directly from your investment
___________________________________________________________________________________________
 Maximum Sales Charge (Load) Imposed
 on Purchases (as % of offering price)             5.75%1         None          None
 Maximum Contingent Deferred Sales
 Charge (Load) (as % of redemption
 proceeds)                                       None2             4.00%         1.00%
 ANNUAL OPERATING EXPENSES, deducted from fund assets
___________________________________________________________________________________________
 Management Fee3                                  0.00  %          0.00%         0.00%
 Distribution/Service (12b-1) Fee                 0.23             1.00          1.00
 Other Expenses4                                  0.46             0.42          0.38
 Acquired Funds (Underlying Funds) Fees
 and Expenses5                                    0.61             0.61          0.61
 TOTAL ANNUAL OPERATING EXPENSES6                 1.30             2.03          1.99
</TABLE>



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


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



3   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

4   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.



5   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.


                                           DWS LifeCompass Retirement Fund  | 13
<PAGE>


6   Through September 30, 2009, the Advisor has contractually agreed to waive
all or a portion of its fees and reimburse or pay operating expenses of the
fund to the extent necessary to maintain the fund's total operating expenses at
0.52%, 1.27% and 1.27% for Class A, Class B and Class C shares, respectively,
excluding certain expenses such as extraordinary expenses, taxes, brokerage,
interest and indirect fees and expenses of acquired funds (underlying funds).
Although there can be no assurance that the current waiver/expense
reimbursement arrangement will be maintained beyond September 30, 2009, the
Advisor has committed to review the continuance of waiver/expense reimbursement
arrangement by September 30, 2009.

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




<TABLE>
<CAPTION>
EXAMPLE                1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                   <C>         <C>          <C>          <C>
 EXPENSES, assuming you sold your shares at the end of each period
_________________________________________________________________________
 Class A shares         $700         $963       $1,247       $2,053
 Class B shares*         606          937        1,293        1,999
 Class C shares          302          624        1,073        2,317
 EXPENSES, assuming you kept your shares
_________________________________________________________________________
 Class A shares         $700         $963       $1,247       $2,053
 Class B shares*         206          637        1,093        1,999
 Class C shares          202          624        1,073        2,317
</TABLE>




*   Reflects conversion of Class B to Class A shares, which pay lower fees.
   Conversion occurs six years after purchase.


14 | DWS LifeCompass Retirement Fund
<PAGE>



<TABLE>
<S>                            <C>        <C>        <C>
                                Class A    Class B    Class C
  ticker symbol                 SPDAX      SPDBX      SPDCX
    fund number                 481        681        781
    DWS LIFECOMPASS 2015 FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks to achieve as high total return as is consistent
            with its asset allocation until the target year. As the fund
            approaches its target year, the fund will decrease its emphasis on
            growth of capital and increase its emphasis on current income. The
            fund is designed for investors seeking to meet their respective
            investment goals, such as retirement, around the year 2015. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the economic exposure to a particular
            market or sector is not available through a DWS fund.

            The fund has a target asset allocation, which the managers use as a
            reference point in setting the fund's actual asset allocation (see
            sidebar). The target asset allocation for the fund will change over
            time based on the number of years remaining until the target year,
            becoming more conservative as the fund approaches the target year.
            As the target year approaches, the fund's target asset allocation
            will approach that of the DWS LifeCompass Retirement Fund (the
            "Retirement Fund"). Once the fund's actual asset allocation is
            similar to that of the Retirement Fund, the fund may be combined
            with the Retirement Fund or another DWS fund offered at the time.

            The fund's target asset allocation may differ from the fund's actual
            asset allocation. The managers periodically review the actual asset
            allocation and may adjust it based on the target investment horizon,
            current or expected market conditions or to manage risk. In making
            their asset allocation decisions, the managers use a proprietary mix
            of quantitative and qualitative inputs to arrive at a view for the
            securities markets and segments of those markets. These inputs
            include, but are not limited to, return forecasts for asset classes,
            target investments horizon and investment guidelines. Based on the
            desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's current target asset allocation is approximately:

- 60% Equity funds; and
- 40% Fixed Income funds.

                                                 DWS LifeCompass 2015 Fund  | 15
<PAGE>

            In order to mitigate the risks associated with a particular fund or
            manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



16 | DWS LifeCompass 2015 Fund
<PAGE>

            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.

            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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


                                                 DWS LifeCompass 2015 Fund  | 17
<PAGE>


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



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


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


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

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


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

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

18 | DWS LifeCompass 2015 Fund
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.



                                                 DWS LifeCompass 2015 Fund  | 19
<PAGE>


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

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

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

            Other factors that could affect performance include:



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



20 | DWS LifeCompass 2015 Fund
<PAGE>

THE FUND'S PERFORMANCE HISTORY

While a fund's past performance (before and after taxes) isn't necessarily a
sign of how it will do in the future, it can be valuable for an investor to
know.


The bar chart shows how the performance of the fund's Class A shares has varied
from year to year, which may give some idea of risk. The bar chart does not
reflect sales loads; if it did, total returns would be lower than those shown.
The table on the following page shows how fund performance compares to relevant
index performance (which, unlike fund performance, does not reflect fees or
expenses). The table includes the effects of maximum sales loads on fund
performance. The performance of the fund and the index information varies over
time. All figures assume reinvestment of dividends and distributions (in the
case of after-tax returns, reinvested net of assumed tax rates).


The table shows returns for Class A shares on a before-tax and after-tax basis.
After-tax returns are shown for Class A only and will vary for Classes B and C.
After-tax returns are estimates calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown in the table. After-tax returns shown
are not relevant for investors who hold their shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

The inception date for Class A shares was December 29, 2000. In the bar chart,
the performance figures for Class A for periods prior to that date are based on
the historical performance of the fund's original share class (Class S),
adjusted to reflect the higher gross total annual operating expenses of Class
A.

In the table, the performance figures for each share class prior to its
inception are based on the historical performance of the fund's original share
class (Class S), adjusted to reflect both the higher gross total annual
operating expenses of Classes A, B or C and the current applicable sales
charges of Classes A, B or C. Class S shares are offered in a different
prospectus.

DWS LifeCompass 2015 Fund

ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - CLASS A (Results do not reflect
sales loads; if they did, total returns would be lower than those shown.)




<TABLE>
<S>       <C>        <C>        <C>        <C>         <C>        <C>       <C>       <C>        <C>
7.34      16.34       -2.88      -9.28      -12.18     18.77       8.79      5.10     11.11      4.22
1998      1999       2000       2001        2002       2003       2004      2005      2006       2007
</TABLE>







<TABLE>
<CAPTION>
2008 TOTAL RETURN AS OF SEPTEMBER 30: -15.55%
<S>                                           <C>
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 12.46%, Q4 1999                 WORST QUARTER: -10.32%, Q3 1998
</TABLE>




                                                 DWS LifeCompass 2015 Fund  | 21
<PAGE>


AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007




<TABLE>
<CAPTION>
                                               1 YEAR       5 YEARS      10 YEARS
<S>                                          <C>           <C>          <C>
 CLASS A
   Return before Taxes                           -1.77         8.19        3.66
   Return after Taxes on Distributions           -2.78         7.34        2.32
   Return after Taxes on Distributions
   and Sale of Fund Shares                      -0.98*         6.54        2.37*
 CLASS B (Return before Taxes)                  0.40           8.52        3.51
 CLASS C (Return before Taxes)                  3.42           8.70        3.52
 RUSSELL 1000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         5.77          13.43        6.20
 BARCLAYS CAPITAL U.S. AGGREGATE
 INDEX (reflects no deductions for fees,
 expenses or taxes)                             6.97           4.42        5.97
 RUSSELL 2000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         -1.57         16.25        7.08
 MORGAN STANLEY CAPITAL
 INTERNATIONAL (MSCI) EUROPE,
 AUSTRALASIA AND THE FAR EAST (EAFE)
 INDEX (reflects no deductions for fees,
 expenses or taxes)                            11.17          21.59        8.66
 CREDIT SUISSE HIGH YIELD INDEX
 (reflects no deductions for fees,
 expenses or taxes)                             2.65          10.97        6.10
 MERRILL LYNCH 3-MONTH US TREASURY
 BILL INDEX (reflects no deductions for
 fees, expenses or taxes)                       5.03           3.07        3.77
</TABLE>




 *   Return after Taxes on Distributions and Sale of Fund Shares is higher than
     Return after Taxes on Distributions for the same period due to a capital
     loss occurring upon redemption resulting in an assumed tax deduction for
     the shareholder.

 Total returns would have been lower if the advisor had not reduced the
 expenses of certain of the underlying funds.


 RUSSELL 1000 (Reg. TM) INDEX is an unmanaged price-only index of the 1,000
 largest capitalized companies that are domiciled in the US and whose common
 stocks are traded.


 BARCLAYS CAPITAL U.S. AGGREGATE INDEX (name changed from Lehman Brothers U.S.
 Aggregate Index effective November 3, 2008) is an unmanaged market
 value-weighted measure of Treasury issues, agency issues, corporate bond
 issues and mortgage securities.


 RUSSELL 2000 (Reg. TM) INDEX is an unmanaged capitalization-weighted measure
 of approximately 2,000 small US stocks.


 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND THE FAR EAST
 (MSCI EAFE (Reg. TM)) INDEX is an unmanaged index that tracks international
 stock performance in the 21 developed markets of Europe, Australasia and the
 Far East.



22 | DWS LifeCompass 2015 Fund
<PAGE>


 CREDIT SUISSE HIGH YIELD INDEX is an unmanaged trader-priced portfolio,
 constructed to mirror the global high-yield debt market.


 MERRILL LYNCH 3-MONTH US TREASURY BILL INDEX is an unmanaged index capturing
 the performance of a single issue maturing closest to, but not exceeding,
 three months from the re-balancing date.


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

Current performance may be higher or lower than the performance data quoted
above. For more recent performance information, call your financial advisor or
(800) 621-1048 or visit our Web site at www.dws-investments.com.



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

Return information assumes that fund shares were sold at the end of the period.


RETURN AFTER TAXES ON DISTRIBUTIONS reflects taxes only on the fund's
distributions and not on a shareholder's gain or loss from selling fund shares.


RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES reflects taxes on
both the fund's distributions and a shareholder's gain or loss from selling
fund shares.



                                                 DWS LifeCompass 2015 Fund  | 23
<PAGE>

HOW MUCH INVESTORS PAY


This table describes the fees and expenses that you may pay if you buy and hold
fund shares. The fund's shareholders directly bear the fees and expenses of the
fund, subject to any contractual obligation that the Advisor has to waive fees
or reimburse expenses to maintain the fund's operating expenses at a specified
level (see "Total Annual Operating Expenses" in the table below). The fund will
indirectly bear its proportionate share of fees and expenses incurred by the
underlying DWS funds and exchange-traded funds in which the fund is invested
(see "Acquired Funds (Underlying Funds) Fees and Expenses" in the table below).
This information doesn't include any fees that may be charged by your financial
advisor.




<TABLE>
<CAPTION>
FEE TABLE                                        CLASS A         CLASS B       CLASS C
<S>                                         <C>                 <C>          <C>
 SHAREHOLDER FEES, paid directly from your investment
___________________________________________________________________________________________
 Maximum Sales Charge (Load) Imposed
 on Purchases (as % of offering price)             5.75%1         None          None
 Maximum Contingent Deferred Sales
 Charge (Load) (as % of redemption
 proceeds)                                       None2             4.00%         1.00%
 ANNUAL OPERATING EXPENSES, deducted from fund assets
___________________________________________________________________________________________
 Management Fee3                                  0.00  %          0.00%         0.00%
 Distribution/Service (12b-1) Fee                 0.24             1.00          1.00
 Other Expenses4                                  0.40             0.39          0.33
 Acquired Funds (Underlying Funds) Fees
 and Expenses5                                    0.61             0.61          0.61
 TOTAL ANNUAL OPERATING EXPENSES6                 1.25             2.00          1.94
</TABLE>



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


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



3   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

4   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.



5   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.



24 | DWS LifeCompass 2015 Fund
<PAGE>


6   Through September 30, 2009, the Advisor has contractually agreed to waive
all or a portion of its fees and reimburse or pay operating expenses of the
fund to the extent necessary to maintain the fund's total operating expenses at
0.48%, 1.23% and 1.23% for Class A, Class B and Class C shares, respectively,
excluding certain expenses such as extraordinary expenses, taxes, brokerage,
interest and indirect fees and expenses of acquired funds (underlying funds).
Although there can be no assurance that the current waiver/expense
reimbursement arrangement will be maintained beyond September 30, 2009, the
Advisor has committed to review the continuance of waiver/expense reimbursement
arrangement by September 30, 2009.

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




<TABLE>
<CAPTION>
EXAMPLE                1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                   <C>         <C>          <C>          <C>
 EXPENSES, assuming you sold your shares at the end of each period
_________________________________________________________________________
 Class A shares         $695         $949       $1,222       $1,999
 Class B shares*         603          927        1,278        1,956
 Class C shares          297          609        1,047        2,264
 EXPENSES, assuming you kept your shares
_________________________________________________________________________
 Class A shares         $695         $949       $1,222       $1,999
 Class B shares*         203          627        1,078        1,956
 Class C shares          197          609        1,047        2,264
</TABLE>




*   Reflects conversion of Class B to Class A shares, which pay lower fees.
   Conversion occurs six years after purchase.


                                                 DWS LifeCompass 2015 Fund  | 25
<PAGE>



<TABLE>
<S>                            <C>        <C>        <C>
                                Class A    Class B    Class C
  ticker symbol                 SUPAX      SUPBX      SUPCX
    fund number                 482        682        782
    DWS LIFECOMPASS 2020 FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks to achieve as high total return as is consistent
            with its asset allocation until the target year. As the fund
            approaches its target year, the fund will decrease its emphasis on
            growth of capital and increase its emphasis on current income. The
            fund is designed for investors seeking to meet their respective
            investment goals, such as retirement, around the year 2020. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the desired economic exposure to a
            particular market or sector is not available through a DWS fund.

            The fund has a target asset allocation, which the managers use as a
            reference point in setting the fund's actual asset allocation (see
            sidebar). The target asset allocation for the fund will change over
            time based on the number of years remaining until the target year,
            becoming more conservative as the fund approaches the target year.
            As the target year approaches, the fund's target asset allocation
            will approach that of the Retirement Fund. Once the fund's actual
            asset allocation is similar to that of the Retirement Fund, the
            fund may be combined with the Retirement Fund or another DWS fund
            offered at the time.

            The fund's target asset allocation may differ from the fund's actual
            asset allocation. The managers periodically review the actual asset
            allocation and may adjust it based on the target investment horizon,
            current or expected market conditions or to manage risk. In making
            their asset allocation decisions, the managers use a proprietary mix
            of quantitative and qualitative inputs to arrive at a view for the
            securities markets and segments of those markets. These inputs
            include, but are not limited to, return forecasts for asset classes,
            target investment horizon and investment guidelines. Based on the
            desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's current target asset allocation is approximately:

- 70% Equity funds; and
- 30% Fixed Income funds.


26 | DWS LifeCompass 2020 Fund
<PAGE>

            In order to mitigate the risks associated with a particular fund or
            manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



                                                 DWS LifeCompass 2020 Fund  | 27
<PAGE>

            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.

            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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


28 | DWS LifeCompass 2020 Fund
<PAGE>


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



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


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


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

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


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

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

                                                 DWS LifeCompass 2020 Fund  | 29
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.



30 | DWS LifeCompass 2020 Fund
<PAGE>


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

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

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

            Other factors that could affect performance include:



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



                                                 DWS LifeCompass 2020 Fund  | 31
<PAGE>

THE FUND'S PERFORMANCE HISTORY

While a fund's past performance (before and after taxes) isn't necessarily a
sign of how it will do in the future, it can be valuable for an investor to
know.


The bar chart shows how the performance of the fund's Class A shares has varied
from year to year, which may give some idea of risk. The bar chart does not
reflect sales loads; if it did, total returns would be lower than those shown.
The table on the following page shows how fund performance compares to relevant
index performance (which, unlike fund performance, does not reflect fees or
expenses). The table includes the effects of maximum sales loads on fund
performance. The performance of the fund and the index information varies over
time. All figures assume reinvestment of dividends and distributions (in the
case of after-tax returns, reinvested net of assumed tax rates).


The table shows returns for Class A shares on a before-tax and after-tax basis.
After-tax returns are shown for Class A only and will vary for Classes B and C.
After-tax returns are estimates calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown in the table. After-tax returns shown
are not relevant for investors who hold their shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

The inception date for Class A shares was December 29, 2000. In the bar chart,
the performance figures for Class A for periods prior to that date are based on
the historical performance of the fund's original share class (Class S),
adjusted to reflect the higher gross total annual operating expenses of Class
A.

In the table, the performance figures for each share class prior to its
inception are based on the historical performance of the fund's original share
class (Class S), adjusted to reflect both the higher gross total annual
operating expenses of Classes A, B or C and the current applicable sales
charges of Classes A, B or C. Class S shares are offered in a different
prospectus.

DWS LifeCompass 2020 Fund

ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - CLASS A (Results do not reflect
sales loads; if they did, total returns would be lower than those shown.)




<TABLE>
<S>       <C>        <C>        <C>         <C>         <C>        <C>        <C>       <C>        <C>
 9.30     34.87       -6.53      -13.57      -18.96     25.39      10.06       5.84     13.30      4.41
1998      1999       2000        2001        2002       2003       2004       2005      2006       2007
</TABLE>







<TABLE>
<CAPTION>
2008 TOTAL RETURN AS OF SEPTEMBER 30: -17.20%
<S>                                           <C>
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 21.73%, Q4 1999                 WORST QUARTER: -15.45%, Q3 2002
</TABLE>




32 | DWS LifeCompass 2020 Fund
<PAGE>


AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007




<TABLE>
<CAPTION>
                                               1 YEAR       5 YEARS      10 YEARS
<S>                                          <C>           <C>          <C>
 CLASS A
   Return before Taxes                           -1.60        10.24         4.63
   Return after Taxes on Distributions           -2.58         9.61         3.61
   Return after Taxes on Distributions
   and Sale of Fund Shares                      -0.79*         8.52         3.48
 CLASS B (Return before Taxes)                  0.70          10.59         4.47
 CLASS C (Return before Taxes)                  3.66          10.73         4.47
 RUSSELL 1000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         5.77          13.43         6.20
 BARCLAYS CAPITAL U.S. AGGREGATE
 INDEX (reflects no deductions for fees,
 expenses or taxes)                             6.97           4.42         5.97
 RUSSELL 2000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         -1.57         16.25         7.08
 MORGAN STANLEY CAPITAL
 INTERNATIONAL (MSCI) EUROPE,
 AUSTRALASIA AND THE FAR EAST (EAFE)
 INDEX (reflects no deductions for fees,
 expenses or taxes)                            11.17          21.59         8.66
 CREDIT SUISSE HIGH YIELD INDEX
 (reflects no deductions for fees,
 expenses or taxes)                             2.65          10.97         6.10
 MERRILL LYNCH 3-MONTH US TREASURY
 BILL INDEX (reflects no deductions for
 fees, expenses or taxes)                       5.03           3.07         3.77
</TABLE>




 *   Return after Taxes on Distributions and Sale of Fund Shares is higher than
     Return after Taxes on Distributions for the same period due to capital
     loss occurring upon redemption resulting in an assumed tax deduction for
     the shareholder.

 Total returns would have been lower if the advisor had not reduced the
 expenses of certain of the underlying funds.


 RUSSELL 1000 (Reg. TM) INDEX is an unmanaged price-only index of the 1,000
 largest capitalized companies that are domiciled in the US and whose common
 stocks are traded.


 BARCLAYS CAPITAL U.S. AGGREGATE INDEX (name changed from Lehman Brothers U.S.
 Aggregate Index effective November 3, 2008) is an unmanaged market
 value-weighted measure of Treasury issues, agency issues, corporate bond
 issues and mortgage securities.


 RUSSELL 2000 (Reg. TM) INDEX is an unmanaged capitalization-weighted measure
 of approximately 2,000 small US stocks.


 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND THE FAR EAST
 (MSCI EAFE (Reg. TM)) INDEX is an unmanaged index that tracks international
 stock performance in the 21 developed markets of Europe, Australasia and the
 Far East.



                                                 DWS LifeCompass 2020 Fund  | 33
<PAGE>


 CREDIT SUISSE HIGH YIELD INDEX is an unmanaged trader-priced portfolio,
 constructed to mirror the global high-yield debt market.


 MERRILL LYNCH 3-MONTH US TREASURY BILL INDEX is an unmanaged index capturing
 the performance of a single issue maturing closest to, but not exceeding,
 three months from the re-balancing date.


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

Current performance may be higher or lower than the performance data quoted
above. For more recent performance information, call your financial advisor or
(800) 621-1048 or visit our Web site at www.dws-investments.com.



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

Return information assumes that fund shares were sold at the end of the period.


RETURN AFTER TAXES ON DISTRIBUTIONS reflects taxes only on the fund's
distributions and not on a shareholder's gain or loss from selling fund shares.


RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES reflects taxes on
both the fund's distributions and a shareholder's gain or loss from selling
fund shares.



34 | DWS LifeCompass 2020 Fund
<PAGE>

HOW MUCH INVESTORS PAY


This table describes the fees and expenses that you may pay if you buy and hold
fund shares. The fund's shareholders directly bear the fees and expenses of the
fund, subject to any contractual obligation that the Advisor has to waive fees
or reimburse expenses to maintain the fund's operating expenses at a specified
level (see "Total Annual Operating Expenses" in the table below). The fund will
indirectly bear its proportionate share of fees and expenses incurred by the
underlying DWS funds and exchange-traded funds in which the fund is invested
(see "Acquired Funds (Underlying Funds) Fees and Expenses" in the table below).
This information doesn't include any fees that may be charged by your financial
advisor.




<TABLE>
<CAPTION>
FEE TABLE                                        CLASS A         CLASS B       CLASS C
<S>                                         <C>                 <C>          <C>
 SHAREHOLDER FEES, paid directly from your investment
___________________________________________________________________________________________
 Maximum Sales Charge (Load) Imposed
 on Purchases (as % of offering price)             5.75%1         None          None
 Maximum Contingent Deferred Sales
 Charge (Load) (as % of redemption
 proceeds)                                       None2             4.00%         1.00%
 ANNUAL OPERATING EXPENSES, deducted from fund assets
___________________________________________________________________________________________
 Management Fee3                                  0.00  %          0.00%         0.00%
 Distribution/Service (12b-1) Fee                 0.24             1.00          1.00
 Other Expenses4                                  0.42             0.42          0.38
 Acquired Funds (Underlying Funds) Fees
 and Expenses5                                    0.61             0.61          0.61
 TOTAL ANNUAL OPERATING EXPENSES6                 1.27             2.03          1.99
</TABLE>



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


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



3   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

4   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%



5   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.



                                                 DWS LifeCompass 2020 Fund  | 35
<PAGE>


6   Through September 30, 2009, the Advisor has contractually agreed to waive
all or a portion of its fees and reimburse or pay operating expenses of the
fund to the extent necessary to maintain the fund's total operating expenses at
0.49%, 1.24% and 1.24% for Class A, Class B and Class C shares, respectively,
excluding certain expenses such as extraordinary expenses, taxes, brokerage,
interest and indirect fees and expenses of acquired funds (underlying funds).
Although there can be no assurance that the current waiver/expense
reimbursement arrangement will be maintained beyond September 30, 2009, the
Advisor has committed to review the continuance of waiver/expense reimbursement
arrangement by September 30, 2009.

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




<TABLE>
<CAPTION>
EXAMPLE                1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                   <C>         <C>          <C>          <C>
 EXPENSES, assuming you sold your shares at the end of each period
_________________________________________________________________________
 Class A shares         $697         $955       $1,232       $2,021
 Class B shares*         606          937        1,293        1,984
 Class C shares          302          624        1,073        2,317
 EXPENSES, assuming you kept your shares
_________________________________________________________________________
 Class A shares         $697         $955       $1,232       $2,021
 Class B shares*         206          637        1,093        1,984
 Class C shares          202          624        1,073        2,317
</TABLE>




*   Reflects conversion of Class B to Class A shares, which pay lower fees.
   Conversion occurs six years after purchase.


36 | DWS LifeCompass 2020 Fund
<PAGE>



<TABLE>
<S>                            <C>        <C>        <C>
                                Class A    Class B    Class C
  ticker symbol                 PLUSX      PLSBX      PLSCX
    fund number                 1084       1284       1384
    DWS LIFECOMPASS 2030 FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks to achieve as high total return as is consistent
            with its asset allocation until the target year. As the fund
            approaches its target year, the fund will decrease its emphasis on
            growth of capital and increase its emphasis on current income. The
            fund is designed for investors seeking to meet their respective
            investment goals, such as retirement, around the year 2030. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the desired economic exposure to a
            particular market or sector is not available through a DWS fund.

            The fund has a target asset allocation, which the managers use as a
            reference point in setting the fund's actual asset allocation (see
            sidebar). The target asset allocation for the fund will change over
            time based on the number of years remaining until the target year,
            becoming more conservative as the fund approaches the target year.
            As the target year approaches, the fund's target asset allocation
            will approach that of the Retirement Fund. Once the fund's actual
            asset allocation is similar to that of the Retirement Fund, the
            fund may be combined with the Retirement Fund or another DWS fund
            offered at the time.

            The fund's target asset allocation may differ from the fund's actual
            asset allocation. The managers periodically review the actual asset
            allocation and may adjust it based on the target investment horizon,
            current or expected market conditions or to manage risk. In making
            their asset allocation decisions, the managers use a proprietary mix
            of quantitative and qualitative inputs to arrive at a view for the
            securities markets and segments of those markets. These inputs
            include, but are not limited to, return forecasts for asset classes,
            target investment horizon and investment guidelines. Based on the
            desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's current target asset allocation is approximately:

- 90% Equity funds; and
- 10% Fixed Income funds.



                                                 DWS LifeCompass 2030 Fund  | 37
<PAGE>

            In order to mitigate the risks associated with a particular fund or
            manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



38 | DWS LifeCompass 2030 Fund
<PAGE>

            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.

            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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


                                                 DWS LifeCompass 2030 Fund  | 39
<PAGE>


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



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


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


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

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


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

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

40 | DWS LifeCompass 2030 Fund
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.



                                                 DWS LifeCompass 2030 Fund  | 41
<PAGE>


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

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

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

            Other factors that could affect performance include:



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



42 | DWS LifeCompass 2030 Fund
<PAGE>

THE FUND'S PERFORMANCE HISTORY

While a fund's past performance (before and after taxes) isn't necessarily a
sign of how it will do in the future, it can be valuable for an investor to
know.


The bar chart shows how the performance of the fund's Class A shares has varied
from year to year, which may give some idea of risk. The bar chart does not
reflect sales loads; if it did, total returns would be lower than those shown.
The table on the following page shows how fund performance compares to relevant
index performance (which, unlike fund performance, does not reflect fees or
expenses). The table includes the effects of maximum sales loads on fund
performance. The performance of the fund and the index information varies over
time. All figures assume reinvestment of dividends and distributions (in the
case of after-tax returns, reinvested net of assumed tax rates).


The table shows returns for Class A shares on a before-tax and after-tax basis.
After-tax returns are shown for Class A only and will vary for Classes B and C.
After-tax returns are estimates calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown in the table. After-tax returns shown
are not relevant for investors who hold their shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

The inception date for Class A, B and C shares was November 1, 2004.

DWS LifeCompass 2030 Fund

ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - CLASS A (Results do not reflect
sales loads; if they did, total returns would be lower than those shown.)




<TABLE>
<S>       <C>        <C>
 6.68     15.94      3.99
2005      2006       2007
</TABLE>







<TABLE>
<CAPTION>
2008 TOTAL RETURN AS OF SEPTEMBER 30: -20.24%
<S>                                           <C>
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 7.25%, Q4 2006                  WORST QUARTER: -3.12%, Q4 2007
</TABLE>




                                                 DWS LifeCompass 2030 Fund  | 43
<PAGE>


AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007




<TABLE>
<CAPTION>
                                                1 YEAR        SINCE INCEPTION*
<S>                                          <C>             <C>
 CLASS A
   Return before Taxes                            -1.99              8.19
   Return after Taxes on Distributions            -3.29              6.86
   Return after Taxes on Distributions
   and Sale of Fund Shares                       -0.19**             6.54
 CLASS B (Return before Taxes)                   0.28                8.87
 CLASS C (Return before Taxes)                   3.19                9.40
 RUSSELL 1000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                          5.77                8.49
 BARCLAYS CAPITAL U.S. AGGREGATE
 INDEX (reflects no deductions for fees,
 expenses or taxes)                              6.97                3.34
 RUSSELL 2000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                          -1.57               7.61
 MORGAN STANLEY CAPITAL
 INTERNATIONAL (MSCI) EUROPE,
 AUSTRALASIA AND THE FAR EAST (EAFE)
 INDEX (reflects no deductions for fees,
 expenses or taxes)                             11.17               14.67
 CREDIT SUISSE HIGH YIELD INDEX
 (reflects no deductions for fees,
 expenses or taxes)                              2.65                6.13
 MERRILL LYNCH 3-MONTH US TREASURY
 BILL INDEX (reflects no deductions for
 fees, expenses or taxes)                        5.03                3.16
</TABLE>



     *   Fund inception: 11/1/04. Index comparisons begin 10/31/04.



 **   Return after Taxes on Distributions and Sale of Fund Shares is higher
     than Return after Taxes on Distributions for the same period due to a
     capital loss occurring upon redemption resulting in an assumed tax
     deduction for the shareholder.

 Total returns would have been lower if the advisor had not reduced the
 expenses of certain of the underlying funds.


 RUSSELL 1000 (Reg. TM) INDEX is an unmanaged price-only index of the 1,000
 largest capitalized companies that are domiciled in the US and whose common
 stocks are traded.


 BARCLAYS CAPITAL U.S. AGGREGATE INDEX (name changed from Lehman Brothers U.S.
 Aggregate Index effective November 3, 2008) is an unmanaged market
 value-weighted measure of Treasury issues, agency issues, corporate bond
 issues and mortgage securities.


 RUSSELL 2000 (Reg. TM) INDEX is an unmanaged capitalization-weighted measure
 of approximately 2,000 small US stocks.


44 | DWS LifeCompass 2030 Fund
<PAGE>


 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND THE FAR EAST
 (MSCI EAFE (Reg. TM)) INDEX is an unmanaged index that tracks international
 stock performance in the 21 developed markets of Europe, Australasia and the
 Far East.

 CREDIT SUISSE HIGH YIELD INDEX is an unmanaged trader-priced portfolio,
 constructed to mirror the global high-yield debt market.


 MERRILL LYNCH 3-MONTH US TREASURY BILL INDEX is an unmanaged index capturing
 the performance of a single issue maturing closest to, but not exceeding,
 three months from the re-balancing date.


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

Current performance may be higher or lower than the performance data quoted
above. For more recent performance information, call your financial advisor or
(800) 621-1048 or visit our Web site at www.dws-investments.com.



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

Return information assumes that fund shares were sold at the end of the period.


RETURN AFTER TAXES ON DISTRIBUTIONS reflects taxes only on the fund's
distributions and not on a shareholder's gain or loss from selling fund shares.


RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES reflects taxes on
both the fund's distributions and a shareholder's gain or loss from selling
fund shares.



                                                 DWS LifeCompass 2030 Fund  | 45
<PAGE>

HOW MUCH INVESTORS PAY


This table describes the fees and expenses that you may pay if you buy and hold
fund shares. The fund's shareholders directly bear the fees and expenses of the
fund, subject to any contractual obligation that the Advisor has to waive fees
or reimburse expenses to maintain the fund's operating expenses at a specified
level (see "Net Annual Fund and Acquired Funds (Underlying Funds) Operating
Expenses" in the table below). The fund will indirectly bear its proportionate
share of fees and expenses incurred by the underlying DWS funds and
exchange-traded funds in which the fund is invested (see "Acquired Funds
(Underlying Funds) Fees and Expenses" in the table below). This information
doesn't include any fees that may be charged by your financial advisor.




<TABLE>
<CAPTION>
FEE TABLE                                        CLASS A         CLASS B       CLASS C
<S>                                         <C>                 <C>          <C>
 SHAREHOLDER FEES, paid directly from your investment
___________________________________________________________________________________________
 Maximum Sales Charge (Load) Imposed
 on Purchases (as % of offering price)             5.75%1         None          None
 Maximum Contingent Deferred Sales
 Charge (Load) (as % of redemption
 proceeds)                                       None2             4.00%         1.00%
 ANNUAL OPERATING EXPENSES, deducted from fund assets
___________________________________________________________________________________________
 Management Fee3                                  0.00  %          0.00%         0.00%
 Distribution/Service (12b-1) Fee                 0.24             1.00          1.00
 Other Expenses4                                  0.75             0.80          0.74
 Acquired Funds (Underlying Funds) Fees
 and Expenses5                                    0.65             0.65          0.65
 TOTAL ANNUAL OPERATING EXPENSES                  1.64             2.45          2.39
 Less Expense Waiver/Reimbursement6               0.54             0.60          0.54
 NET ANNUAL FUND AND ACQUIRED FUNDS
 (UNDERLYING FUNDS) OPERATING
 EXPENSES6                                        1.10             1.85          1.85
</TABLE>



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


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



3   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

4   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.



5   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.



46 | DWS LifeCompass 2030 Fund
<PAGE>


6   Through November 30, 2009, the Advisor has contractually agreed to waive
all or a portion of its fees and reimburse or pay operating expenses of the
fund to the extent necessary to maintain the fund's total operating expenses at
0.45%, 1.20% and 1.20% for Class A, Class B and Class C shares, respectively,
excluding certain expenses such as extraordinary expenses, taxes, brokerage,
interest and indirect fees and expenses of acquired funds (underlying funds).


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



<TABLE>
<CAPTION>
EXAMPLE                1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                   <C>         <C>          <C>          <C>
 EXPENSES, assuming you sold your shares at the end of each period
_________________________________________________________________________
 Class A shares         $681       $1,013       $1,368       $2,364
 Class B shares*         588        1,006        1,452        2,355
 Class C shares          288          694        1,227        2,685
 EXPENSES, assuming you kept your shares
_________________________________________________________________________
 Class A shares         $681       $1,013       $1,368       $2,364
 Class B shares*         188          706        1,252        2,355
 Class C shares          188          694        1,227        2,685
</TABLE>




*   Reflects conversion of Class B to Class A shares, which pay lower fees.
   Conversion occurs six years after purchase.


                                                 DWS LifeCompass 2030 Fund  | 47
<PAGE>



<TABLE>
<S>                            <C>        <C>
                                Class A    Class C
  ticker symbol                 TGTAX      TGTCX
    fund number                 457        757
    DWS LIFECOMPASS 2040 FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks to achieve as high total return as is consistent
            with its asset allocation until the target year. As the fund
            approaches its target year, the fund will decrease its emphasis on
            growth of capital and increase its emphasis on current income. The
            fund is designed for investors seeking to meet their respective
            investment goals, such as retirement, around the year 2040. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the desired economic exposure to a
            particular market or sector is not available through a DWS fund.

            The fund has a target asset allocation, which the managers use as a
            reference point in setting the fund's actual asset allocation (see
            sidebar). The target asset allocation for the fund will change over
            time based on the number of years remaining until the target year,
            becoming more conservative as the fund approaches the target year.
            As the target year approaches, the fund's target asset allocation
            will approach that of the Retirement Fund. Once the fund's actual
            asset allocation is similar to that of the Retirement Fund, the
            fund may be combined with the Retirement Fund or another DWS fund
            offered at the time.

            The fund's target asset allocation may differ from the fund's actual
            asset allocation. The managers periodically review the actual asset
            allocation and may adjust it based on the target investment horizon,
            current or expected market conditions or to manage risk. In making
            their asset allocation decisions, the managers use a proprietary mix
            of quantitative and qualitative inputs to arrive at a view for the
            securities markets and segments of those markets. These inputs
            include, but are not limited to, return forecasts for asset classes,
            target investment horizon and investment guidelines. Based on the
            desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's current target asset allocation is approximately:

- 95% Equity funds; and
- 5% Fixed Income funds.




48 | DWS LifeCompass 2040 Fund
<PAGE>

            In order to mitigate the risks associated with a particular fund or
            manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



                                                 DWS LifeCompass 2040 Fund  | 49
<PAGE>

            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.

            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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


50 | DWS LifeCompass 2040 Fund
<PAGE>


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



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


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


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

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


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

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


                                                 DWS LifeCompass 2040 Fund  | 51
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.



52 | DWS LifeCompass 2040 Fund
<PAGE>


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

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

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

            Other factors that could affect performance include:



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



                                                 DWS LifeCompass 2040 Fund  | 53
<PAGE>

            THE FUND'S PERFORMANCE HISTORY


            Since the fund commenced operations on November 15, 2007,
            performance information is not available for a full calendar year.



54 | DWS LifeCompass 2040 Fund
<PAGE>

HOW MUCH INVESTORS PAY


This table describes the fees and expenses that you may pay if you buy and hold
fund shares. The fund's shareholders directly bear the fees and expenses of the
fund, subject to any contractual obligation that the Advisor has to waive fees
or reimburse expenses to maintain the fund's operating expenses at a specified
level (see "Net Annual Fund and Acquired Funds (Underlying Funds) Operating
Expenses" in the table below). The fund will indirectly bear its proportionate
share of fees and expenses incurred by the underlying DWS funds and
exchange-traded funds in which the fund is invested (see "Acquired Funds
(Underlying Funds) Fees and Expenses" in the table below). This information
doesn't include any fees that may be charged by your financial advisor.




<TABLE>
<CAPTION>
FEE TABLE                                           CLASS A             CLASS C
<S>                                         <C>                       <C>
 SHAREHOLDER FEES, paid directly from your investment
____________________________________________________________________________________
 Maximum Sales Charge (Load) Imposed
 on Purchases (as % of offering price)                5.75%1             None
 Maximum Contingent Deferred Sales
 Charge (Load) (as % of redemption
 proceeds)                                          None2                 1.00%
 ANNUAL OPERATING EXPENSES, deducted from fund assets
____________________________________________________________________________________
 Management Fee3                                     0.00  %              0.00%
 Distribution/Service (12b-1) Fees                   0.20                 0.97
 Other Expenses4                                     4.61                 4.57
 Acquired Funds (Underlying Funds) Fees
 and Expenses5                                       0.67                 0.67
 TOTAL ANNUAL OPERATING EXPENSES                     5.48                 6.21
 Less Expense Waiver/Reimbursement6                  4.32                 4.30
 NET ANNUAL FUND AND ACQUIRED FUNDS
 (UNDERLYING FUNDS) OPERATING
 EXPENSES6                                           1.16                 1.91
</TABLE>



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


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



3   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

4   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.


                                                 DWS LifeCompass 2040 Fund  | 55

<PAGE>


5   The amount indicated is based on the indirect net expenses associated with
the fund's investment in the underlying funds for the fiscal year ended August
31, 2008.

6   Through November 30, 2009, the Advisor has contractually agreed to waive
   all or a portion of its fees and reimburse or pay operating expenses to the
   extent necessary to maintain the fund's total operating expenses at 0.49%
   and 1.24% for Class A and Class C shares, respectively, excluding certain
   expenses such as extraordinary expenses, taxes, brokerage, interest, and
   indirect fees and expenses of acquired funds (underlying funds).


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



<TABLE>
<CAPTION>
EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                  <C>         <C>          <C>          <C>
 EXPENSES, assuming you sold your shares at the end of each period
_______________________________________________________
 Class A shares        $686       $1,754       $2,811       $5,410
 Class C shares         294        1,459        2,693        5,651
 EXPENSES, assuming you kept your shares
_______________________________________________________    _______
 Class A shares        $686       $1,754       $2,811       $5,410
 Class C shares         194        1,459        2,693        5,651
</TABLE>




56 | DWS LifeCompass 2040 Fund
<PAGE>

OTHER POLICIES AND SECONDARY RISKS

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

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


           -  Each fund (or the underlying funds) may trade actively. This
              could raise transaction costs (thus lowering return) and could
              mean distributions to shareholders will be taxed at higher
              federal income tax rates.



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



           Secondary risks of the underlying funds

           The investment risks below are risks of certain of the underlying
           funds; by investing in the underlying funds the fund is also exposed
           to these risks. In the sections below, the term "fund" refers to one
           or more of the underlying funds. For more information on the risks
           of the underlying funds, see each underlying fund's prospectus.


           GROWTH INVESTING RISK. Since growth stocks usually reinvest a large
           portion of earnings in their own businesses, they may lack the
           dividends associated with value stocks that might otherwise cushion
           their decline in a falling market. Earnings disappointments in
           growth stocks often result in sharp price declines because investors
           buy these stocks for their potential superior earnings growth.
           Growth stocks may also be out of favor for certain periods in
           relation to value stocks.

           VALUE INVESTING RISK. At times, "value" investing may perform better
           than or worse than other investment styles and the overall market.
           If portfolio management overestimates the value or return potential
           of one or more securities, the fund may underperform the general
           equity market. Value stocks may also be out of favor for certain
           periods in relation to growth stocks.



                                        Other Policies and Secondary Risks  | 57
<PAGE>


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



           For more information

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

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


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

           A complete list of each fund's portfolio holdings as of the
           month-end is posted on www.dws-investments.com on or about the 15th
           day of the following month. More frequent posting of portfolio
           holdings information may be made from time to time on
           www.dws-investments.com. The posted portfolio holdings information
           is available by fund and generally remains accessible at least until
           the date on which a fund files its Form N-CSR or N-Q with the
           Securities and Exchange Commission for the period that includes the
           date as of which the posted information is current. Each fund's
           Statement of Additional Information includes a description of a
           fund's policies and procedures with respect to the disclosure of a
           fund's portfolio holdings.



58 | Other Policies and Secondary Risks
<PAGE>

WHO MANAGES AND OVERSEES THE FUNDS


           The investment advisor

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


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


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

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


           MANAGEMENT FEE. The Advisor does not receive any advisory fee for
           managing each fund but does receive fees as investment advisor to
           each underlying DWS fund.


           The Advisor and its affiliates earn fees at varying rates for
           providing services to the underlying DWS funds. The Advisor may
           therefore have a conflict of interest in selecting the underlying
           DWS funds and in determining whether to invest in an ETF, from which
           it will not receive any fees. However, the Advisor is a fiduciary to
           each fund and is required to act in each fund's best interest.


                                        Who Manages and Oversees the Funds  | 59
<PAGE>


           A discussion regarding the basis for the Board's renewal of each
           fund's investment management agreement is contained in the most
           recent shareholder reports for the semi-annual period ended February
           28 (see "Shareholder reports" on the back cover).

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



60 | Who Manages and Oversees the Funds
<PAGE>

Portfolio management

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

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

Robert Wang
Managing Director of Deutsche Asset
Management and Portfolio Manager of the funds.
- Joined Deutsche Asset Management in 1995 as portfolio manager for asset
   allocation after 13 years of experience of trading fixed income, foreign
   exchange and derivative products at J.P. Morgan.
- Global Head of Quantitative Strategies Portfolio Management: New York.
- Joined the funds in 2002.
- BS, The Wharton School, University of Pennsylvania.

Inna Okounkova
Director of Deutsche Asset Management and Portfolio Manager of the funds.
- Joined Deutsche Asset Management in 1999 as a quantitative analyst, becoming
   an associate portfolio manager in 2001.
- Lead Portfolio Manager for Asset
     Allocation Strategies: New York.
- Joined the funds in 2002.
- MS, Moscow State University; MBA,
   University of Chicago -  Graduate School of Business.

Each fund's Statement of Additional Information provides additional information
about the portfolio managers' investments in a fund, a description of their
compensation structure and information regarding other accounts they manage.


                                        Who Manages and Oversees the Funds  | 61
<PAGE>

FINANCIAL HIGHLIGHTS


The financial highlights are designed to help you understand recent financial
performance. The figures in the first part of each table are for a single
share. The total return figures represent the percentage that an investor in a
fund would have earned (or lost), assuming all dividends and distributions were
reinvested. This information has been audited by PricewaterhouseCoopers LLP,
independent registered public accounting firm, whose report, along with each
fund's financial statements, is included in each fund's annual report (see
"Shareholder reports" on the back cover).




62 | Financial Highlights
<PAGE>

DWS LifeCompass Retirement Fund - Class A



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                  2008            2007            2006            2005            2004
<S>                                 <C>             <C>             <C>             <C>             <C>
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                             $  12.51        $  12.16        $  11.83        $  11.17       $  10.69
--------------------------------      --------        --------        --------        --------       --------
Income (loss) from
investment operations:
  Net investment income a                  .40             .38             .33             .28            .29
________________________________      ________        ________        ________        ________       ________
  Net realized and unrealized
  gain (loss)                           (  .98)            .57             .33             .72            .52
--------------------------------      --------        --------        --------        --------       --------
  TOTAL FROM INVESTMENT
  OPERATIONS                            (  .58)            .95             .66            1.00            .81
________________________________      ________        ________        ________        ________       ________
Less distributions from:
  Net investment income                 (  .44)         (  .60)         (  .33)         (  .34)        (  .33)
________________________________      ________        ________        ________        ________       ________
Redemption fees                            .00*            .00*            .00*            .00*             -
--------------------------------      --------        --------        --------        --------       --------
NET ASSET VALUE, END OF
PERIOD                                $  11.49        $  12.51        $  12.16        $  11.83       $  11.17
--------------------------------      --------        --------        --------        --------       --------
Total Return (%)b,c,d                   ( 4.76)           7.90            5.66            9.04           7.61
--------------------------------      --------        --------        --------        --------       --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                                34              47              41              36             17
________________________________      ________        ________        ________        ________       ________
Ratio of expenses before
expense reductions (%)                  .69f            .63f            .88f            .77f           .57e
________________________________      ________        ________        ________        ________       ________
Ratio of expenses after
expense reductions (%)                  .56f            .62f            .61f            .55f           .39e
________________________________      ________        ________        ________        ________       ________
Ratio of net investment
income (%)                                3.24            3.04            2.74            2.42           2.58
________________________________      ________        ________        ________        ________       ________
Portfolio turnover rate (%)                 48              21              69              55             56
--------------------------------      --------        --------        --------        --------       --------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

                                                      Financial Highlights  | 63
<PAGE>

DWS LifeCompass Retirement Fund - Class B



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                   2008             2007             2006             2005            2004
<S>                                 <C>              <C>              <C>              <C>              <C>
SELECTED PER SHARE DATA
-----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                           $ 12.52            $  12.16         $  11.83         $  11.17        $  10.70
--------------------------------    ----------         --------         --------         --------        --------
Income (loss) from
investment operations:
  Net investment income a              .30                  .29              .24              .20             .20
________________________________    __________         ________         ________         ________        ________
  Net realized and unrealized
  gain (loss)                       (  .97)                 .57              .33              .71             .51
--------------------------------    ----------         --------         --------         --------        --------
  TOTAL FROM INVESTMENT
  OPERATIONS                        (  .67)                 .86              .57              .91             .71
________________________________    __________         ________         ________         ________        ________
Less distributions from:
  Net investment income             (  .36)              (  .50)          (  .24)          (  .25)         (  .24)
________________________________    __________         ________         ________         ________        ________
Redemption fees                        .00*                 .00*             .00*             .00*              -
--------------------------------    ----------         --------         --------         --------        --------
NET ASSET VALUE, END OF
PERIOD                              $ 11.49            $  12.52         $  12.16         $  11.83        $  11.17
--------------------------------    ----------         --------         --------         --------        --------
Total Return (%)b,c,d               ( 5.46)                7.16             4.87             8.24            6.69
--------------------------------    ----------         --------         --------         --------        --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                             6                    8                8                8               6
________________________________    __________         ________         ________         ________        ________
Ratio of expenses before
expense reductions (%)                  1.42f            1.34f            1.65f            1.60f           1.26e
________________________________    __________         ________         ________         ________        ________
Ratio of expenses after
expense reductions (%)              1.31 f               1.34f            1.36f            1.30f           1.14e
________________________________    ___________        ________         ________         ________        ________
Ratio of net investment
income (%)                            2.49                 2.32             1.99             1.67            1.83
________________________________    __________         ________         ________         ________        ________
Portfolio turnover rate (%)             48                   21               69               55              56
--------------------------------    ----------         --------         --------         --------        --------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

64 | Financial Highlights
<PAGE>

DWS LifeCompass Retirement Fund - Class C



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                   2008             2007             2006             2005            2004
<S>                                 <C>              <C>              <C>              <C>              <C>
SELECTED PER SHARE DATA
-----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                             $  12.52         $  12.16         $  11.82         $  11.16        $  10.69
--------------------------------      --------         --------         --------         --------        --------
Income (loss) from
investment operations:
  Net investment income a                  .31              .30              .24              .19             .20
________________________________      ________         ________         ________         ________        ________
  Net realized and unrealized
  gain (loss)                           (  .98)             .56              .34              .72             .51
--------------------------------      --------         --------         --------         --------        --------
  TOTAL FROM INVESTMENT
  OPERATIONS                            (  .67)             .86              .58              .91             .71
________________________________      ________         ________         ________         ________        ________
Less distributions from:
  Net investment income                 (  .36)          (  .50)          (  .24)          (  .25)         (  .24)
________________________________      ________         ________         ________         ________        ________
Redemption fees                            .00*             .00*             .00*             .00*              -
--------------------------------      --------         --------         --------         --------        --------
NET ASSET VALUE, END OF
PERIOD                                $  11.49         $  12.52         $  12.16         $  11.82        $  11.16
--------------------------------      --------         --------         --------         --------        --------
Total Return (%)b,c,d                   ( 5.43)            7.26             4.87             8.27            6.69
--------------------------------      --------         --------         --------         --------        --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                                13               14               12                9               4
________________________________      ________         ________         ________         ________        ________
Ratio of expenses before
expense reductions (%)                  1.38f            1.34f            1.45f            1.39f           1.21e
________________________________      ________         ________         ________         ________        ________
Ratio of expenses after
expense reductions (%)                  1.29f            1.29f            1.36f            1.30f           1.14e
________________________________      ________         ________         ________         ________        ________
Ratio of net investment
income (%)                                2.51             2.37             1.99             1.67            1.82
________________________________      ________         ________         ________         ________        ________
Portfolio turnover rate (%)                 48               21               69               55              56
--------------------------------      --------         --------         --------         --------        --------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

                                                      Financial Highlights  | 65
<PAGE>

DWS LifeCompass 2015 Fund - Class A



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                  2008            2007            2006            2005           2004
<S>                                 <C>             <C>             <C>             <C>             <C>
SELECTED PER SHARE DATA
------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                             $  12.47        $  11.98        $  11.55        $  10.63       $  9.91
--------------------------------      --------        --------        --------        --------       -------
Income (loss) from
investment operations:
  Net investment income a                  .29             .29             .25             .21           .22
________________________________      ________        ________        ________        ________       _______
  Net realized and unrealized
  gain (loss)                           ( 1.20)            .86             .50             .95           .70
--------------------------------      --------        --------        --------        --------       -------
  TOTAL FROM INVESTMENT
  OPERATIONS                            (  .91)           1.15             .75            1.16           .92
________________________________      ________        ________        ________        ________       _______
Less distributions from:
  Net investment income                 (  .44)         (  .66)         (  .32)         (  .24)       (  .20)
________________________________      ________        ________        ________        ________       _______
Redemption fees                            .00*            .00*            .00*            .00*            -
--------------------------------      --------        --------        --------        --------       -------
NET ASSET VALUE, END OF
PERIOD                                $  11.12        $  12.47        $  11.98        $  11.55       $ 10.63
--------------------------------      --------        --------        --------        --------       -------
Total Return (%)b,c,d                   ( 7.39)           9.78            6.59           10.95          9.34
--------------------------------      --------        --------        --------        --------       -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                                97             131             104             113           .56
________________________________      ________        ________        ________        ________       _______
Ratio of expenses before
expense reductions (%)                  .64f            .61f            .80f            .77f           .54e
________________________________      ________        ________        ________        ________       _______
Ratio of expenses after
expense reductions (%)                  .51f            .57f            .61f            .55f           .38e
________________________________      ________        ________        ________        ________       _______
Ratio of net investment
income (%)                                2.37            2.28            2.14            1.84          2.12
________________________________      ________        ________        ________        ________       _______
Portfolio turnover rate (%)                .29              21              52              35            37
--------------------------------      --------        --------        --------        --------       -------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

66 | Financial Highlights
<PAGE>

DWS LifeCompass 2015 Fund - Class B



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                   2008             2007             2006             2005            2004
<S>                                 <C>              <C>              <C>              <C>              <C>
SELECTED PER SHARE DATA
-----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                             $  12.47         $  11.98         $  11.54         $  10.63         $  9.91
--------------------------------      --------         --------         --------         --------         -------
Income (loss) from
investment operations:
  Net investment income a                  .19              .19              .16              .12             .14
________________________________      ________         ________         ________         ________         _______
  Net realized and unrealized
  gain (loss)                           ( 1.19)             .86              .51              .95             .70
--------------------------------      --------         --------         --------         --------         -------
  TOTAL FROM INVESTMENT
  OPERATIONS                            ( 1.00)            1.05              .67             1.07             .84
________________________________      ________         ________         ________         ________         _______
Less distributions from:
  Net investment income                 (  .36)          (  .56)          (  .23)          (  .16)         (  .12)
________________________________      ________         ________         ________         ________         _______
Redemption fees                            .00*             .00*             .00*             .00*              -
--------------------------------      --------         --------         --------         --------         -------
NET ASSET VALUE, END OF
PERIOD                                $  11.11         $  12.47         $  11.98         $  11.54         $ 10.63
--------------------------------      --------         --------         --------         --------         -------
Total Return (%)b,c,d                   ( 8.06)            8.94             5.78            10.17            8.49
--------------------------------      --------         --------         --------         --------         -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                                17               24               24               23              13
________________________________      ________         ________         ________         ________         _______
Ratio of expenses before
expense reductions (%)                  1.39f            1.37f            1.42f            1.35f           1.21e
________________________________      ________         ________         ________         ________         _______
Ratio of expenses after
expense reductions (%)                  1.26f            1.34f            1.37f            1.30f           1.12e
________________________________      ________         ________         ________         ________         _______
Ratio of net investment
income (%)                                1.62             1.51             1.38             1.09            1.37
________________________________      ________         ________         ________         ________         _______
Portfolio turnover rate (%)                 29               21               52               35              37
--------------------------------      --------         --------         --------         --------         -------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

                                                      Financial Highlights  | 67
<PAGE>

DWS LifeCompass 2015 Fund - Class C



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                  2008             2007             2006             2005            2004
<S>                                 <C>             <C>              <C>              <C>              <C>
SELECTED PER SHARE DATA
----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                             $ 12.47         $  11.97         $  11.54         $  10.62         $  9.90
--------------------------------      -------         --------         --------         --------         -------
Income (loss) from
investment operations:
  Net investment income a                 .20              .20              .16              .13             .14
________________________________      _______         ________         ________         ________         _______
  Net realized and unrealized
  gain (loss)                          ( 1.20)             .86              .50              .95             .70
--------------------------------      -------         --------         --------         --------         -------
  TOTAL FROM INVESTMENT
  OPERATIONS                           ( 1.00)            1.06              .66             1.08             .84
________________________________      _______         ________         ________         ________         _______
Less distributions from:
  Net investment income                (  .37)          (  .56)          (  .23)          (  .16)         (  .12)
________________________________      _______         ________         ________         ________         _______
Redemption fees                           .00*             .00*             .00*             .00*              -
--------------------------------      -------         --------         --------         --------         -------
NET ASSET VALUE, END OF
PERIOD                                $ 11.10         $  12.47         $  11.97         $  11.54         $ 10.62
--------------------------------      -------         --------         --------         --------         -------
Total Return (%)b,d                    ( 8.12)c         8.96c            5.82c             10.28          8.50c
--------------------------------      -------         --------         --------         --------         -------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                               28               37               34               27               9
________________________________      _______         ________         ________         ________         _______
Ratio of expenses before
expense reductions (%)                 1.33f            1.31f            1.35f            1.26f           1.18e
________________________________      _______         ________         ________         ________         _______
Ratio of expenses after
expense reductions (%)                 1.25f            1.30f            1.34f            1.26f           1.13e
________________________________      _______         ________         ________         ________         _______
Ratio of net investment
income (%)                               1.63             1.55             1.41             1.13            1.36
________________________________      _______         ________         ________         ________         _______
Portfolio turnover rate (%)                29               21               52               35              37
--------------------------------      -------         --------         --------         --------         -------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.

*   Amount is less than $.005


68 | Financial Highlights
<PAGE>

DWS LifeCompass 2020 Fund - Class A



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                2008            2007            2006            2005            2004
<S>                               <C>             <C>             <C>             <C>             <C>
SELECTED PER SHARE DATA
-----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                           $  15.47        $  14.29        $  13.49        $  12.14       $  11.08
------------------------------      --------        --------        --------        --------       --------
Income (loss) from
investment operations:
  Net investment income a                .29             .26             .23             .19            .17
______________________________      ________        ________        ________        ________       ________
  Net realized and unrealized
  gain (loss)                         ( 1.55)           1.35             .84            1.35           1.07
------------------------------      --------        --------        --------        --------       --------
  TOTAL FROM INVESTMENT
  OPERATIONS                          ( 1.26)           1.61            1.07            1.54           1.24
______________________________      ________        ________        ________        ________       ________
Less distributions from:
  Net investment income               (  .55)         (  .43)         (  .27)         (  .19)        (  .18)
______________________________      ________        ________        ________        ________       ________
Redemption fees                          .00*            .00*            .00*            .00*             -
------------------------------      --------        --------        --------        --------       --------
NET ASSET VALUE, END OF
PERIOD                              $  13.66        $  15.47        $  14.29        $  13.49       $  12.14
------------------------------      --------        --------        --------        --------       --------
Total Return (%)b,c,d                 ( 8.48)          11.33            8.06           12.76          11.19
------------------------------      --------        --------        --------        --------       --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------------------------
Net assets, end of period ($
millions)                                 85             100              86              74             39
______________________________      ________        ________        ________        ________       ________
Ratio of expenses before
expense reductions (%)                .66f            .67f            .76f            .74f           .46e
______________________________      ________        ________        ________        ________       ________
Ratio of expenses after
expense reductions (%)                .52f            .62f            .61f            .55f           .39e
______________________________      ________        ________        ________        ________       ________
Ratio of net investment
income (%)                              1.96            1.70            1.59            1.46           1.40
______________________________      ________        ________        ________        ________       ________
Portfolio turnover rate (%)               31              22              59              31             43
------------------------------      --------        --------        --------        --------       --------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

                                                      Financial Highlights  | 69
<PAGE>

DWS LifeCompass 2020 Fund - Class B



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                 2008             2007             2006             2005            2004
<S>                               <C>              <C>              <C>              <C>              <C>
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------            -
NET ASSET VALUE, BEGINNING
OF PERIOD                           $  15.32         $  14.15         $  13.35         $  12.02        $  10.97
------------------------------      --------         --------         --------         --------        --------
Income (loss) from
investment operations:
  Net investment income a                .18              .15              .12              .09             .08
______________________________      ________         ________         ________         ________        ________
  Net realized and unrealized
  gain (loss)                         ( 1.54)            1.33              .85             1.33            1.06
------------------------------      --------         --------         --------         --------        --------
  TOTAL FROM INVESTMENT
  OPERATIONS                          ( 1.36)            1.48              .97             1.42            1.14
______________________________      ________         ________         ________         ________        ________
Less distributions from:
  Net investment income               (  .43)          (  .31)          (  .17)          (  .09)         (  .09)
______________________________      ________         ________         ________         ________        ________
Redemption fees                          .00*             .00*             .00*             .00*              -
------------------------------      --------         --------         --------         --------        --------
NET ASSET VALUE, END OF
PERIOD                              $  13.53         $  15.32         $  14.15         $  13.35        $  12.02
------------------------------      --------         --------         --------         --------        --------
Total Return (%)b,c,d                 ( 9.15)           10.49             7.31            11.86           10.36
------------------------------      --------         --------         --------         --------        --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($
millions)                                 22               28               29               26              14
______________________________      ________         ________         ________         ________        ________
Ratio of expenses before
expense reductions (%)                1.42f            1.40f            1.46f            1.46f           1.23e
______________________________      ________         ________         ________         ________        ________
Ratio of expenses after
expense reductions (%)                1.28f            1.35f            1.36f            1.30f           1.13e
______________________________      ________         ________         ________         ________        ________
Ratio of net investment
income (%)                              1.20              .97              .84              .71             .66
______________________________      ________         ________         ________         ________        ________
Portfolio turnover rate (%)               31               22               59               31              43
------------------------------      --------         --------         --------         --------        --------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

70 | Financial Highlights
<PAGE>

DWS LifeCompass 2020 Fund - Class C



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                 2008             2007             2006             2005            2004
<S>                               <C>              <C>              <C>              <C>              <C>
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                           $  15.32         $  14.15         $  13.35         $  12.02        $  10.97
------------------------------      --------         --------         --------         --------        --------
Income (loss) from
investment operations:
  Net investment income a                .18              .15              .12              .09             .08
______________________________      ________         ________         ________         ________        ________
  Net realized and unrealized
  gain (loss)                         ( 1.52)            1.33              .85             1.33            1.05
------------------------------      --------         --------         --------         --------        --------
  TOTAL FROM INVESTMENT
  OPERATIONS                          ( 1.34)            1.48              .97             1.42            1.13
______________________________      ________         ________         ________         ________        ________
Less distributions from:
  Net investment income               (  .44)          (  .31)          (  .17)          (  .09)         (  .08)
______________________________      ________         ________         ________         ________        ________
Redemption fees                          .00*             .00*             .00*             .00*              -
------------------------------      --------         --------         --------         --------        --------
NET ASSET VALUE, END OF
PERIOD                              $  13.54         $  15.32         $  14.15         $  13.35        $  12.02
------------------------------      --------         --------         --------         --------        --------
Total Return (%)b,c,d                 ( 9.05)           10.49             7.30            11.86           10.34
------------------------------      --------         --------         --------         --------        --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($
millions)                                 30               40               36               28               9
______________________________      ________         ________         ________         ________        ________
Ratio of expenses before
expense reductions (%)                1.38f            1.37f            1.41f            1.39f           1.21e
______________________________      ________         ________         ________         ________        ________
Ratio of expenses after
expense reductions (%)                1.27f            1.32f            1.36f            1.30f           1.15e
______________________________      ________         ________         ________         ________        ________
Ratio of net investment
income (%)                              1.21             1.00              .84              .71             .65
______________________________      ________         ________         ________         ________        ________
Portfolio turnover rate (%)               31               22               59               31              43
------------------------------      --------         --------         --------         --------        --------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return does not reflect the effect of any sales charge.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

                                                      Financial Highlights  | 71
<PAGE>

DWS LifeCompass 2030 Fund - Class A



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                           2008           2007           2006           2005 a
<S>                                         <C>            <C>            <C>            <C>
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD          $  12.27       $  11.50       $  10.82       $  10.00
-------------------------------------------   --------       --------       --------       --------
Income (loss) from investment operations:
  Net investment income b                          .14            .10            .08            .04
___________________________________________   ________       ________       ________       ________
  Net realized and unrealized gain (loss)       ( 1.32)          1.39            .93            .88
-------------------------------------------   --------       --------       --------       --------
  TOTAL FROM INVESTMENT OPERATIONS              ( 1.18)          1.49           1.01            .92
___________________________________________   ________       ________       ________       ________
Less distributions from:
  Net investment income                         (  .38)        (  .29)        (  .23)        (  .10)
___________________________________________   ________       ________       ________       ________
  Net realized gains                            (  .45)        (  .43)        (  .10)             -
-------------------------------------------   --------       --------       --------       --------
  TOTAL DISTRIBUTIONS                           (  .83)        (  .72)        (  .33)        (  .10)
___________________________________________   ________       ________       ________       ________
Redemption fees                                    .00***         .00***         .00***         .00***
-------------------------------------------   --------       --------       --------       --------
NET ASSET VALUE, END OF PERIOD                $  10.26       $  12.27       $  11.50       $  10.82
-------------------------------------------   --------       --------       --------       --------
Total Return (%)c,d,e                           (10.40)         13.17           9.52           9.24**
-------------------------------------------   --------       --------       --------       --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions)              23             21             14              7
___________________________________________   ________       ________       ________       ________
Ratio of expenses before expense
reductions (%)f                                    .99           1.00           1.60           3.41*
___________________________________________   ________       ________       ________       ________
Ratio of expenses after expense
reductions (%)f                                    .47            .55            .58            .55*
___________________________________________   ________       ________       ________       ________
Ratio of net investment income (%)                1.27            .88            .77            .46*
___________________________________________   ________       ________       ________       ________
Portfolio turnover rate (%)                         30             20             63             28*
-------------------------------------------   --------       --------       --------       --------
</TABLE>



a   For the period from November 1, 2004 (commencement of sales of Class A
   shares) to August 31, 2005.

b   Based on average shares outstanding during the period.

c   Total return does not reflect the effect of any sales charge.

d   Total return would have been lower had certain expenses not been reduced.


e   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Annualized

**   Not annualized

***   Amount is less than $.005.

72 | Financial Highlights
<PAGE>

DWS LifeCompass 2030 Fund - Class B



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                           2008           2007           2006           2005 a
<S>                                         <C>            <C>            <C>            <C>
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD          $  12.21       $  11.45       $  10.78       $  10.00
-------------------------------------------   --------       --------       --------       --------
Income (loss) from investment
operations:
  Net investment income b                          .06            .01            .00***      (  .02)
___________________________________________   ________       ________       ________       ________
  Net realized and unrealized gain (loss)       ( 1.33)          1.37            .92            .89
-------------------------------------------   --------       --------       --------       --------
  TOTAL FROM INVESTMENT OPERATIONS              ( 1.27)          1.38            .92            .87
___________________________________________   ________       ________       ________       ________
Less distributions from:
  Net investment income                         (  .28)        (  .19)        (  .15)        (  .09)
___________________________________________   ________       ________       ________       ________
  Net realized gains                            (  .45)        (  .43)        (  .10)             -
-------------------------------------------   --------       --------       --------       --------
  TOTAL DISTRIBUTIONS                           (  .73)        (  .62)        (  .25)        (  .09)
___________________________________________   ________       ________       ________       ________
Redemption fees                                    .00***         .00***         .00***         .00***
-------------------------------------------   --------       --------       --------       --------
NET ASSET VALUE, END OF PERIOD                $  10.21       $  12.21       $  11.45       $  10.78
-------------------------------------------   --------       --------       --------       --------
Total Return (%)c,d,e                           (11.09)         12.26           8.61           8.70**
-------------------------------------------   --------       --------       --------       --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------------------------
Net assets, end of period ($ millions)               3              4              3              2
___________________________________________   ________       ________       ________       ________
Ratio of expenses before expense
reductions (%)f                                   1.80           1.81           2.38           4.22*
___________________________________________   ________       ________       ________       ________
Ratio of expenses after expense
reductions (%)f                                   1.22           1.30           1.33           1.30*
___________________________________________   ________       ________       ________       ________
Ratio of net investment income (%)                 .51            .13            .02         (  .29)*
___________________________________________   ________       ________       ________       ________
Portfolio turnover rate (%)                         30             20             63             28*
-------------------------------------------   --------       --------       --------       --------
</TABLE>



a   For the period from November 1, 2004 (commencement of sales of Class B
   shares) to August 31, 2005.

b   Based on average shares outstanding during the period.

c   Total return does not reflect the effect of any sales charge.

d   Total return would have been lower had certain expenses not been reduced.


e   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Annualized

**   Not annualized

***   Amount is less than $.005.

                                                      Financial Highlights  | 73
<PAGE>

DWS LifeCompass 2030 Fund - Class C



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                           2008           2007           2006           2005 a
<S>                                         <C>            <C>            <C>            <C>
SELECTED PER SHARE DATA
----------------------------------------------------------------------------------------          -
NET ASSET VALUE, BEGINNING OF PERIOD          $  12.21       $  11.44       $  10.77       $  10.00
-------------------------------------------   --------       --------       --------       --------
Income (loss) from investment
operations:
  Net investment income b                          .06            .01            .00***      (  .02)
___________________________________________   ________       ________       ________       ________
  Net realized and unrealized gain (loss)       ( 1.33)          1.38            .92            .88
-------------------------------------------   --------       --------       --------       --------
  TOTAL FROM INVESTMENT OPERATIONS              ( 1.27)          1.39            .92            .86
___________________________________________   ________       ________       ________       ________
Less distributions from:
  Net investment income                         (  .28)        (  .19)        (  .15)        (  .09)
___________________________________________   ________       ________       ________       ________
  Net realized gains                            (  .45)        (  .43)        (  .10)             -
-------------------------------------------   --------       --------       --------       --------
  TOTAL DISTRIBUTIONS                           (  .73)        (  .62)        (  .25)        (  .09)
___________________________________________   ________       ________       ________       ________
Redemption fees                                    .00***         .00***         .00***         .00***
-------------------------------------------   --------       --------       --------       --------
NET ASSET VALUE, END OF PERIOD                $  10.21       $  12.21       $  11.44       $  10.77
-------------------------------------------   --------       --------       --------       --------
Total Return (%)c,d,e                           (11.09)         12.35           8.62           8.60**
-------------------------------------------   --------       --------       --------       --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------   --------
Net assets, end of period ($ millions)               8             11              7              4
___________________________________________   ________       ________       ________       ________
Ratio of expenses before expense
reductions (%)f                                   1.74           1.74           2.33           4.12*
___________________________________________   ________       ________       ________       ________
Ratio of expenses after expense
reductions (%)f                                   1.23           1.30           1.33           1.30*
___________________________________________   ________       ________       ________       ________
Ratio of net investment income (%)                 .51            .13            .02         (  .29)*
___________________________________________   ________       ________       ________       ________
Portfolio turnover rate (%)                         30             20             63             28*
-------------------------------------------   --------       --------       --------       --------
</TABLE>



a   For the period from November 1, 2004 (commencement of sales of Class C
   shares) to August 31, 2005.

b   Based on average shares outstanding during the period.

c   Total return does not reflect the effect of any sales charge.

d   Total return would have been lower had certain expenses not been reduced.


e   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Annualized

**   Not annualized

***   Amount is less than $.005.

74 | Financial Highlights
<PAGE>


DWS LifeCompass 2040 Fund - Class A




<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,                                      2008 a
<S>                                                   <C>
SELECTED PER SHARE DATA
------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD                    $  10.00
--------------------------------------------------      --------
Income (loss) from investment operations:
  Net investment income b                                    .06
__________________________________________________      ________
  Net realized and unrealized gain (loss)                 (  .96)
--------------------------------------------------      --------
  TOTAL FROM INVESTMENT OPERATIONS                        (  .90)
__________________________________________________      ________
Less distributions from:
  Net investment income                                   (  .33)
--------------------------------------------------      --------
  NET ASSET VALUE, END OF PERIOD                        $   8.77
__________________________________________________      ________
  Total Return (%)c,d,e                                   ( 9.24)**
--------------------------------------------------      --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------
Net assets, end of period ($ millions)                         2
__________________________________________________      ________
Ratio of expenses before expense reductions (%)f            7.14*
__________________________________________________      ________
Ratio of expenses after expense reductions (%)f              .49*
__________________________________________________      ________
Ratio of net investment income (%)                           .86*
__________________________________________________      ________
Portfolio turnover rate (%)                                   17**
--------------------------------------------------      --------
</TABLE>




a   For the period from November 15, 2007 (commencement of operations) to
   August 31, 2008.

b   Based on average shares outstanding during the period.

c   Total return does not reflect the effect of any sales charge.

d   Total return would have been lower had certain expenses not been reduced.

e   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.

f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.

*   Annualized

**   Not annualized


                                                      Financial Highlights  | 75
<PAGE>


DWS LifeCompass 2040 Fund - Class C




<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,                                      2008 a
<S>                                                   <C>
SELECTED PER SHARE DATA
------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD                    $  10.00
--------------------------------------------------      --------
Income (loss) from investment operations:
  Net investment income b                                    .01
__________________________________________________      ________
  Net realized and unrealized gain (loss)                 (  .96)
--------------------------------------------------      --------
  TOTAL FROM INVESTMENT OPERATIONS                        (  .95)
__________________________________________________      ________
Less distributions from:
  Net investment income                                   (  .32)
__________________________________________________      ________
NET ASSET VALUE, END OF PERIOD                          $   8.73
--------------------------------------------------      --------
Total Return (%)c,d,e                                     ( 9.54)**
--------------------------------------------------      --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------
Net assets, end of period ($ millions)                       .3
__________________________________________________      ________
Ratio of expenses before expense reductions (%)f            7.87*
__________________________________________________      ________
Ratio of expenses after expense reductions (%)f             1.24*
__________________________________________________      ________
Ratio of net investment income (%)                           .11*
__________________________________________________      ________
Portfolio turnover rate (%)                                   17**
--------------------------------------------------      --------
</TABLE>




a   For the period from November 15, 2007 (commencement of operations) to
   August 31, 2008.

b   Based on average shares outstanding during the period.

c   Total return does not reflect the effect of any sales charge.

d   Total return would have been lower had certain expenses not been reduced.

e   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.

f   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.

*   Annualized

**   Not annualized


76 | Financial Highlights
<PAGE>

HOW TO INVEST IN THE FUNDS

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

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

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


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


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

<PAGE>

CHOOSING A SHARE CLASS


We describe each share class in detail on the following pages. But first, you
may want to look at the table below, which gives you a brief description and
comparison of the main features of each class. You should consult with your
financial advisor to determine which class of shares is appropriate for you.




<TABLE>
<CAPTION>
 CLASSES AND FEATURES                         POINTS TO HELP YOU COMPARE
<S>                                          <C>
 CLASS A
 -  Sales charge of up to 5.75% charged       -  Some investors may be able to reduce
  when you buy shares                        or eliminate their sales charge; see
                                             "Class A shares"
 -  In most cases, no charge when you
  sell shares                                -  Total annual expenses are lower than
                                             those for Class B or Class C
 -  Up to 0.25% annual shareholder
  servicing fee
 CLASS B
 -  No sales charge when you buy shares       -  The deferred sales charge rate falls to
                                             zero after six years
 -  Deferred sales charge declining from
  4.00%, charged when you sell shares        -  Shares automatically convert to
  you bought within the last six years       Class A after six years, which means
                                             lower annual expenses going forward
 -  0.75% annual distribution fee and up
  to 0.25% annual shareholder servicing
  fee
 CLASS C
 -  No sales charge when you buy shares       -  The deferred sales charge rate for one
                                             year is lower for Class C shares than
 -  Deferred sales charge of 1.00%,
                                             Class B shares, but your shares never
  charged when you sell shares you
                                             convert to Class A, so annual expenses
  bought within the last year
                                             remain higher
 -  0.75% annual distribution fee and up
  to 0.25% annual shareholder servicing
  fee
</TABLE>




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




78 | Choosing a Share Class
<PAGE>


           Class A shares


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

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

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


<TABLE>
<CAPTION>
                              FRONT-END SALES          FRONT-END SALES
                                CHARGE AS %          CHARGE AS % OF YOUR
YOUR INVESTMENT            OF OFFERING PRICE 1,2        NET INVESTMENT 2
<S>                       <C>                       <C>
  Up to $50,000                5.75%                     6.10%
$    50,000-$99,999            4.50                      4.71
$  100,000-$249,999            3.50                      3.63
$  250,000-$499,999            2.60                      2.67
$  500,000-$999,999            2.00                      2.04
  $1 million or more            see below                see below
</TABLE>


           1   The offering price includes the sales charge.

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


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


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


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

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

                                                    Choosing a Share Class  | 79
<PAGE>

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

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

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


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

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



80 | Choosing a Share Class
<PAGE>

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

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

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


           Class B shares

           Class B shares may make sense for long-term investors who prefer to
           see all of their investment go to work right away and can accept
           somewhat higher annual expenses. Please note, however, that since
           not all DWS funds offer Class B shares, exchange options may be
           limited.

           With Class B shares, you pay no up-front sales charge to a fund.
           Class B shares have a 12b-1 plan, under which a distribution fee of
           0.75% and a shareholder servicing fee of up to 0.25% are deducted
           from class assets each year. This means the annual expenses for
           Class B shares are somewhat higher (and their performance
           correspondingly lower) compared to Class A shares. However, unlike
           Class A shares, your entire investment goes to work immediately.
           After six years, Class B shares automatically convert on a tax-free
           basis to Class A shares, which has the net effect of lowering the
           annual expenses from the seventh year on.


                                                    Choosing a Share Class  | 81
<PAGE>

           Class B shares have a CDSC. This charge declines over the years you
           own shares and disappears completely after six years of ownership.
           But for any shares you sell within those six years, you may be
           charged as follows:


<TABLE>
<CAPTION>
    YEAR AFTER YOU BOUGHT SHARES               CDSC ON SHARES YOU SELL
<S>                                    <C>
  First year                           4.00%
  Second or third year                 3.00
  Fourth or fifth year                 2.00
  Sixth year                           1.00
  Seventh year and later               None (automatic conversion to Class A)
</TABLE>


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


           While Class B shares don't have any front-end sales charge, their
           higher annual expenses mean that over the years you could end up
           paying more than the equivalent of the maximum allowable front-end
           sales charge.


           If you are thinking of making a large purchase in Class B shares or
           if you already own a large amount of Class A shares of a fund or
           other DWS funds, it may be more cost efficient to purchase Class A
           shares instead. Orders to purchase Class B shares of $100,000 or
           more will be declined with the exception of orders received from
           financial representatives acting for clients whose shares are held
           in an omnibus account and certain employer-sponsored employee
           benefit plans.



           Class C shares

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

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


82 | Choosing a Share Class
<PAGE>

           Unlike Class B shares, Class C shares do NOT automatically convert
           to Class A shares after six years, so they continue to have higher
           annual expenses.

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


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


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


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

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


                                                    Choosing a Share Class  | 83
<PAGE>

How to BUY Class A, B and C Shares




<TABLE>
<CAPTION>
 FIRST INVESTMENT                                ADDITIONAL INVESTMENTS
<S>                                             <C>
 $1,000 or more for most accounts                $50 or more for regular accounts and
 $500 or more for IRAs                          IRAs
 $500 or more for an account with an            $50 or more for an account with an
 Automatic Investment Plan                      Automatic Investment Plan
 THROUGH A FINANCIAL ADVISOR
 -  To obtain an application, contact your      -  Contact your advisor using the
  advisor                                       method that's most convenient for you
 BY MAIL OR EXPRESS MAIL (SEE BELOW)
 -  Fill out and sign an application            -  Send a check payable to "DWS
                                                Investments" and an investment slip
 -  Send it to us at the appropriate
  address, along with an investment             -  If you don't have an investment slip,
  check made payable to "DWS                    include a letter with your name,
  Investments"                                  account number, the full name of the
                                                fund and the share class and your
                                                investment instructions
 BY WIRE
 -  Call (800) 621-1048 for instructions        -  Call (800) 621-1048 for instructions
 BY PHONE
 Not available                                  -  Call (800) 621-1048 for instructions
 WITH AN AUTOMATIC INVESTMENT PLAN
 -  Fill in the information on your             -  To set up regular investments from a
  application including a check for the         bank checking account call (800) 621-
  initial investment and a voided check         1048 ($50 minimum)
 USING QuickBuy
 Not available                                  -  Call (800) 621-1048 to make sure
                                                QuickBuy is set up on your account; if
                                                it is, you can request a transfer from
                                                your bank account of any amount
                                                between $50 and $250,000
 ON THE INTERNET
 Not available                                  -  Call (800) 621-1048 to ensure you have
                                                electronic services
                                                -  Register at www.dws-
                                                investments.com or log in if already
                                                registered
                                                -  Follow the instructions for buying
                                                shares with money from your bank
                                                account
</TABLE>



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

REGULAR MAIL:

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


EXPRESS, REGISTERED OR CERTIFIED MAIL:

DWS Investments, 210 West 10th Street, Kansas City, MO 64105-1614


84 | How to Buy Class A, B and C Shares
<PAGE>

How to EXCHANGE or SELL Class A, B and C Shares


<TABLE>
<CAPTION>
 EXCHANGING INTO ANOTHER FUND                    SELLING SHARES
<S>                                             <C>
                                                 Some transactions, including most for
 -  Exchanges into existing accounts:
                                                over $100,000, can only be ordered in
  $50 minimum per fund
                                                writing with a signature guarantee;
 -  Exchanges into new accounts:
                                                please see "Signature Guarantee"
  $1,000 minimum per fund for most
  accounts
  $500 minimum for IRAs
 THROUGH A FINANCIAL ADVISOR
 -  Contact your advisor using the              -  Contact your advisor using the
  method that's most convenient for you         method that's most convenient for you
 BY PHONE                                        BY PHONE OR WIRE
 -  Call (800) 621-1048 for instructions        -  Call (800) 621-1048 for instructions
 BY MAIL OR EXPRESS MAIL
 (see previous page for address)
 Write a letter that includes:                  Write a letter that includes:
 -  the fund, class and account number          -  the fund, class and account number
  you're exchanging out of                      from which you want to sell shares
 -  the dollar amount or number of shares       -  the dollar amount or number of shares
  you want to exchange                          you want to sell
 -  the name and class of the fund you          -  your name(s), signature(s) and
  want to exchange into                         address, as they appear on your
                                                account
 -  your name(s), signature(s) and
  address, as they appear on your               -  a daytime telephone number
  account
 -  a daytime telephone number
 WITH AN AUTOMATIC EXCHANGE PLAN                 WITH AN AUTOMATIC WITHDRAWAL PLAN
 -  To set up regular exchanges from a          -  Call (800) 621-1048 (minimum $50)
  fund account, call (800) 621-1048
 USING QuickSell
 Not available                                  -  Call (800) 621-1048 to make sure
                                                QuickSell is set up on your account; if
                                                it is, you can request a transfer to your
                                                bank account of any amount between
                                                $50 and $250,000
 ON THE INTERNET
 -  Register at www.dws-                        -  Register at www.dws-
  investments.com or log in if already          investments.com or log in if already
  registered                                    registered
 -  Follow the instructions for making on-      -  Follow the instructions for making on-
  line exchanges                                line redemptions
</TABLE>



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


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




                           How to Exchange or Sell Class A, B and C Shares  | 85
<PAGE>

           Financial intermediary support payments


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



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


86 | How to Exchange or Sell Class A, B and C Shares
<PAGE>


           The Advisor, the Distributor and/or their affiliates currently make
           revenue sharing payments from their own assets in connection with
           the sale and/or distribution of DWS Fund shares or the retention
           and/or servicing of investors and DWS Fund shares to financial
           advisors in amounts that generally range from .01% up to .50% of
           assets of each fund serviced and maintained by the financial
           advisor, .05% to .25% of sales of each fund attributable to the
           financial advisor, a flat fee of $13,350 up to $500,000, or any
           combination thereof. These amounts are subject to change at the
           discretion of the Advisor, the Distributor and/or their affiliates.
           Receipt of, or the prospect of receiving, this additional
           compensation may influence your financial advisor's recommendation
           of each fund or of any particular share class of each fund. You
           should review your financial advisor's compensation disclosure
           and/or talk to your financial advisor to obtain more information on
           how this compensation may have influenced your financial advisor's
           recommendation of each fund. Additional information regarding these
           revenue sharing payments is included in each fund's Statement of
           Additional Information, which is available to you on request at no
           charge (see the back cover of this prospectus for more information
           on how to request a copy of the Statement of Additional
           Information).

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


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


                           How to Exchange or Sell Class A, B and C Shares  | 87
<PAGE>

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


POLICIES YOU SHOULD KNOW ABOUT


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


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

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

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


           Policies about transactions

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


88 | Policies You Should Know About
<PAGE>

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

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

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

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

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

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

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


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



                                            Policies You Should Know About  | 89
<PAGE>

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


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


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


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



90 | Policies You Should Know About
<PAGE>


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



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

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


           In certain circumstances where shareholders hold shares of a fund
           through a financial intermediary, the fund may rely upon the
           financial intermediary's policy to deter short-term or excessive
           trading if the Advisor believes that the financial intermediary's
           policy is reasonably designed to detect and deter transactions that
           are not in the best interests of a fund. A financial intermediary's
           policy relating to short-term or excessive trading


                                            Policies You Should Know About  | 91
<PAGE>

           may be more or less restrictive than the DWS Funds' policy, may
           permit certain transactions not permitted by the DWS Funds'
           policies, or prohibit transactions not subject to the DWS Funds'
           policies.


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


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

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


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



92 | Policies You Should Know About
<PAGE>


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


           QUICKBUY AND QUICKSELL let you set up a link between a DWS fund
           account and a bank account. Once this link is in place, you can move
           money between the two with a phone call. You'll need to make sure
           your bank has Automated Clearing House (ACH) services. Transactions
           take two to three days to be completed and there is a $50 minimum
           and a $250,000 maximum. To set up QuickBuy or QuickSell on a new
           account, see the account application; to add it to an existing
           account, call (800) 621-1048.

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

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

           EACH FUND DOES NOT ISSUE SHARE CERTIFICATES. However, if you
           currently have shares in certificated form, you must include the
           share certificates properly endorsed or accompanied by a duly
           executed stock power when exchanging or redeeming shares. You may
           not exchange or redeem shares in certificate form by telephone or
           via the Internet.

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


THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

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


                                            Policies You Should Know About  | 93
<PAGE>


           EACH FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by a check
           drawn on a US bank, a bank or Federal Funds wire transfer or an
           electronic bank transfer. Each fund does not accept third party
           checks. A third party check is a check made payable to one or more
           parties and offered as payment to one or more other parties (e.g., a
           check made payable to you that you offer as payment to someone
           else). Checks should normally be payable to DWS Investments and
           drawn by you or a financial institution on your behalf with your
           name or account number included with the check.


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

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

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

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

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




THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

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

94 | Policies You Should Know About
<PAGE>

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


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


           -  withdrawals related to certain retirement or benefit plans

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

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

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

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


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


           You'll be reimbursed (in the form of fund shares) for any CDSC you
           paid when you sold. Future CDSC calculations will be based on your
           original investment date, rather than your reinstatement date. There
           is also an option that lets investors who sold Class B shares buy
           Class A shares (if available) with no sales charge, although they
           won't be reimbursed for any CDSC they paid. You can only use the
           reinstatement feature once for any given group of shares. To take
           advantage of this feature, contact Shareholder Services or your
           financial advisor.


                                            Policies You Should Know About  | 95
<PAGE>


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


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


           How each fund calculates share price

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


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



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



96 | Policies You Should Know About
<PAGE>


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


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


           Other rights we reserve

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

           -  withdraw or suspend the offering of shares at any time

                                            Policies You Should Know About  | 97
<PAGE>


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


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

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


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

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


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


98 | Policies You Should Know About
<PAGE>

UNDERSTANDING DISTRIBUTIONS AND TAXES


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

           DWS LifeCompass Retirement Fund and DWS LifeCompass 2015 Fund each
           intend to pay dividends and distributions from net investment income
           to their shareholders quarterly, in March, June, September and
           December, and dividends and distributions of net short-term and
           long-term capital gains to their shareholders annually in December.
           DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS
           LifeCompass 2040 Fund each intend to pay dividends and distributions
           annually in December. If necessary, each fund may do so at other
           times as well.

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

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

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



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

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


                                     Understanding Distributions and Taxes  | 99
<PAGE>

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


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



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


           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY A FUND OR AN
           UNDERLYING FUND MAY BE SUBJECT TO FOREIGN WITHHOLDING TAXES. In that
           case, a fund's yield on those securities would generally be
           decreased. Shareholders of the fund generally will not be entitled
           to a credit or deduction with respect to foreign taxes paid by the
           fund or the underlying funds. In addition, any investments in
           foreign securities or foreign currencies may increase or accelerate
           a fund's recognition of ordinary income and may affect the timing or
           amount of the fund's distributions. If you invest in a fund through
           a taxable account, your after-tax return could be negatively
           impacted.


           Investments in certain debt obligations or other securities may
           cause a fund to recognize taxable income in excess of the cash
           generated by them. Thus, a fund could be required at times to
           liquidate other investments in order to satisfy its distribution
           requirements.



100 | Understanding Distributions and Taxes
<PAGE>


           For taxable years beginning before January 1, 2011, distributions to
           individuals and other noncorporate shareholders of investment income
           designated by a fund as derived from qualified dividend income are
           eligible for taxation for federal income tax purposes at the more
           favorable long-term capital gain rates. Qualified dividend income
           generally includes dividends received by a fund from domestic and
           some foreign corporations. It does not include income from
           investments in debt securities  or, generally, from real estate
           investment trusts. In addition, a fund must meet certain holding
           period and other requirements with respect to the dividend-paying
           stocks in its portfolio and the shareholder must meet certain
           holding period and other requirements with respect to a fund's
           shares for the lower tax rates to apply.

           For taxable years beginning before January 1, 2011, the maximum
           federal income tax rate imposed on long-term capital gains
           recognized by individuals and other noncorporate shareholders has
           been temporarily reduced to 15%, in general, with lower rates
           applying to taxpayers in the 10% and 15% rate brackets. For taxable
           years beginning on or after January 1, 2011, the maximum long-term
           capital gain rate is scheduled to return to 20%.


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


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

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



                                    Understanding Distributions and Taxes  | 101
<PAGE>


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


           FUND-OF-FUNDS STRUCTURE. The fund's use of a fund-of-funds structure
           may affect the amount, timing and type of distributions from the
           fund, which may increase the amount of taxes payable by
           shareholders.


           If the fund receives dividends from an underlying fund that
           qualifies as a regulated investment company and the underlying fund
           designates such dividends as qualified dividend income, then the
           fund may in turn designate that portion of its distributions derived
           from those dividends as qualified dividend income as well, provided
           the fund meets the holding period and other requirements with
           respect to shares of the underlying fund.


102 | Understanding Distributions and Taxes
<PAGE>

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



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


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


                                                                 Appendix  | 103
<PAGE>

DWS LifeCompass Retirement Fund - Class A




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               5.75%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.30%             -2.26%       $  9,773.73        $   699.79
   2           10.25%        1.30%              1.35%       $ 10,135.35        $   129.41
   3           15.76%        1.30%              5.10%       $ 10,510.36        $   134.20
   4           21.55%        1.30%              8.99%       $ 10,899.24        $   139.16
   5           27.63%        1.30%             13.03%       $ 11,302.52        $   144.31
   6           34.01%        1.30%             17.21%       $ 11,720.71        $   149.65
   7           40.71%        1.30%             21.54%       $ 12,154.38        $   155.19
   8           47.75%        1.30%             26.04%       $ 12,604.09        $   160.93
   9           55.13%        1.30%             30.70%       $ 13,070.44        $   166.88
  10           62.89%        1.30%             35.54%       $ 13,554.04        $   173.06
  TOTAL                                                                        $ 2,052.58
</TABLE>



DWS LifeCompass Retirement Fund - Class B





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        2.03%              2.97%       $ 10,297.00        $   206.01
   2           10.25%        2.03%              6.03%       $ 10,602.82        $   212.13
   3           15.76%        2.03%              9.18%       $ 10,917.72        $   218.43
   4           21.55%        2.03%             12.42%       $ 11,241.98        $   224.92
   5           27.63%        2.03%             15.76%       $ 11,575.87        $   231.60
   6           34.01%        2.03%             19.20%       $ 11,919.67        $   238.48
   7           40.71%        1.30%             23.61%       $ 12,360.70        $   157.82
   8           47.75%        1.30%             28.18%       $ 12,818.04        $   163.66
   9           55.13%        1.30%             32.92%       $ 13,292.31        $   169.72
  10           62.89%        1.30%             37.84%       $ 13,784.13        $   176.00
  TOTAL                                                                        $ 1,998.77
</TABLE>




104 | Appendix
<PAGE>

DWS LifeCompass Retirement Fund - Class C




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.99%              3.01%       $ 10,301.00        $   201.99
   2           10.25%        1.99%              6.11%       $ 10,611.06        $   208.07
   3           15.76%        1.99%              9.30%       $ 10,930.45        $   214.34
   4           21.55%        1.99%             12.59%       $ 11,259.46        $   220.79
   5           27.63%        1.99%             15.98%       $ 11,598.37        $   227.44
   6           34.01%        1.99%             19.47%       $ 11,947.48        $   234.28
   7           40.71%        1.99%             23.07%       $ 12,307.10        $   241.33
   8           47.75%        1.99%             26.78%       $ 12,677.54        $   248.60
   9           55.13%        1.99%             30.59%       $ 13,059.14        $   256.08
  10           62.89%        1.99%             34.52%       $ 13,452.22        $   263.79
  TOTAL                                                                        $ 2,316.71
</TABLE>



DWS LifeCompass 2015 Fund - Class A





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               5.75%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.25%             -2.22%       $  9,778.44        $   695.02
   2           10.25%        1.25%              1.45%       $ 10,145.13        $   124.52
   3           15.76%        1.25%              5.26%       $ 10,525.57        $   129.19
   4           21.55%        1.25%              9.20%       $ 10,920.28        $   134.04
   5           27.63%        1.25%             13.30%       $ 11,329.79        $   139.06
   6           34.01%        1.25%             17.55%       $ 11,754.66        $   144.28
   7           40.71%        1.25%             21.95%       $ 12,195.46        $   149.69
   8           47.75%        1.25%             26.53%       $ 12,652.79        $   155.30
   9           55.13%        1.25%             31.27%       $ 13,127.27        $   161.13
  10           62.89%        1.25%             36.20%       $ 13,619.54        $   167.17
  TOTAL                                                                        $ 1,999.40
</TABLE>




                                                                 Appendix  | 105
<PAGE>

DWS LifeCompass 2015 Fund - Class B




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        2.00%              3.00%       $ 10,300.00        $   203.00
   2           10.25%        2.00%              6.09%       $ 10,609.00        $   209.09
   3           15.76%        2.00%              9.27%       $ 10,927.27        $   215.36
   4           21.55%        2.00%             12.55%       $ 11,255.09        $   221.82
   5           27.63%        2.00%             15.93%       $ 11,592.74        $   228.48
   6           34.01%        2.00%             19.41%       $ 11,940.52        $   235.33
   7           40.71%        1.25%             23.88%       $ 12,388.29        $   152.06
   8           47.75%        1.25%             28.53%       $ 12,852.85        $   157.76
   9           55.13%        1.25%             33.35%       $ 13,334.84        $   163.67
  10           62.89%        1.25%             38.35%       $ 13,834.89        $   169.81
  TOTAL                                                                        $ 1,956.38
</TABLE>



DWS LifeCompass 2015 Fund - Class C





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.94%              3.06%       $ 10,306.00        $   196.97
   2           10.25%        1.94%              6.21%       $ 10,621.36        $   203.00
   3           15.76%        1.94%              9.46%       $ 10,946.38        $   209.21
   4           21.55%        1.94%             12.81%       $ 11,281.34        $   215.61
   5           27.63%        1.94%             16.27%       $ 11,626.55        $   222.21
   6           34.01%        1.94%             19.82%       $ 11,982.32        $   229.01
   7           40.71%        1.94%             23.49%       $ 12,348.98        $   236.01
   8           47.75%        1.94%             27.27%       $ 12,726.86        $   243.24
   9           55.13%        1.94%             31.16%       $ 13,116.30        $   250.68
  10           62.89%        1.94%             35.18%       $ 13,517.66        $   258.35
  TOTAL                                                                        $ 2,264.29
</TABLE>




106 | Appendix
<PAGE>

DWS LifeCompass 2020 Fund - Class A




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               5.75%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.27%             -2.23%       $  9,776.55        $   696.93
   2           10.25%        1.27%              1.41%       $ 10,141.22        $   126.48
   3           15.76%        1.27%              5.19%       $ 10,519.49        $   131.20
   4           21.55%        1.27%              9.12%       $ 10,911.86        $   136.09
   5           27.63%        1.27%             13.19%       $ 11,318.87        $   141.17
   6           34.01%        1.27%             17.41%       $ 11,741.07        $   146.43
   7           40.71%        1.27%             21.79%       $ 12,179.01        $   151.89
   8           47.75%        1.27%             26.33%       $ 12,633.29        $   157.56
   9           55.13%        1.27%             31.05%       $ 13,104.51        $   163.44
  10           62.89%        1.27%             35.93%       $ 13,593.31        $   169.53
  TOTAL                                                                        $ 2,020.72
</TABLE>



DWS LifeCompass 2020 Fund - Class B





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        2.03%              2.97%       $ 10,297.00        $   206.01
   2           10.25%        2.03%              6.03%       $ 10,602.82        $   212.13
   3           15.76%        2.03%              9.18%       $ 10,917.72        $   218.43
   4           21.55%        2.03%             12.42%       $ 11,241.98        $   224.92
   5           27.63%        2.03%             15.76%       $ 11,575.87        $   231.60
   6           34.01%        2.03%             19.20%       $ 11,919.67        $   238.48
   7           40.71%        1.27%             23.64%       $ 12,364.27        $   154.20
   8           47.75%        1.27%             28.25%       $ 12,825.46        $   159.95
   9           55.13%        1.27%             33.04%       $ 13,303.85        $   165.92
  10           62.89%        1.27%             38.00%       $ 13,800.09        $   172.11
  TOTAL                                                                        $ 1,983.75
</TABLE>




                                                                 Appendix  | 107
<PAGE>

DWS LifeCompass 2020 Fund - Class C




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.99%              3.01%       $ 10,301.00        $   201.99
   2           10.25%        1.99%              6.11%       $ 10,611.06        $   208.07
   3           15.76%        1.99%              9.30%       $ 10,930.45        $   214.34
   4           21.55%        1.99%             12.59%       $ 11,259.46        $   220.79
   5           27.63%        1.99%             15.98%       $ 11,598.37        $   227.44
   6           34.01%        1.99%             19.47%       $ 11,947.48        $   234.28
   7           40.71%        1.99%             23.07%       $ 12,307.10        $   241.33
   8           47.75%        1.99%             26.78%       $ 12,677.54        $   248.60
   9           55.13%        1.99%             30.59%       $ 13,059.14        $   256.08
  10           62.89%        1.99%             34.52%       $ 13,452.22        $   263.79
  TOTAL                                                                        $ 2,316.71
</TABLE>



DWS LifeCompass 2030 Fund - Class A





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               5.75%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.10%             -2.07%       $  9,792.58        $   680.70
   2           10.25%        1.64%              1.22%       $ 10,121.61        $   163.30
   3           15.76%        1.64%              4.62%       $ 10,461.69        $   168.78
   4           21.55%        1.64%              8.13%       $ 10,813.20        $   174.45
   5           27.63%        1.64%             11.77%       $ 11,176.53        $   180.32
   6           34.01%        1.64%             15.52%       $ 11,552.06        $   186.37
   7           40.71%        1.64%             19.40%       $ 11,940.21        $   192.64
   8           47.75%        1.64%             23.41%       $ 12,341.40        $   199.11
   9           55.13%        1.64%             27.56%       $ 12,756.07        $   205.80
  10           62.89%        1.64%             31.85%       $ 13,184.67        $   212.71
  TOTAL                                                                        $ 2,364.18
</TABLE>




108 | Appendix
<PAGE>

DWS LifeCompass 2030 Fund - Class B




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.85%              3.15%       $ 10,315.00        $   187.91
   2           10.25%        2.45%              5.78%       $ 10,578.03        $   255.94
   3           15.76%        2.45%              8.48%       $ 10,847.77        $   262.47
   4           21.55%        2.45%             11.24%       $ 11,124.39        $   269.16
   5           27.63%        2.45%             14.08%       $ 11,408.06        $   276.02
   6           34.01%        2.45%             16.99%       $ 11,698.97        $   283.06
   7           40.71%        1.64%             20.92%       $ 12,092.05        $   195.09
   8           47.75%        1.64%             24.98%       $ 12,498.35        $   201.64
   9           55.13%        1.64%             29.18%       $ 12,918.29        $   208.42
  10           62.89%        1.64%             33.52%       $ 13,352.35        $   215.42
  TOTAL                                                                        $ 2,355.13
</TABLE>



DWS LifeCompass 2030 Fund - Class C





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.85%              3.15%       $ 10,315.00        $   187.91
   2           10.25%        2.39%              5.84%       $ 10,584.22        $   249.75
   3           15.76%        2.39%              8.60%       $ 10,860.47        $   256.26
   4           21.55%        2.39%             11.44%       $ 11,143.93        $   262.95
   5           27.63%        2.39%             14.35%       $ 11,434.78        $   269.82
   6           34.01%        2.39%             17.33%       $ 11,733.23        $   276.86
   7           40.71%        2.39%             20.39%       $ 12,039.47        $   284.08
   8           47.75%        2.39%             23.54%       $ 12,353.70        $   291.50
   9           55.13%        2.39%             26.76%       $ 12,676.13        $   299.11
  10           62.89%        2.39%             30.07%       $ 13,006.98        $   306.91
  TOTAL                                                                        $ 2,685.15
</TABLE>




                                                                 Appendix  | 109
<PAGE>

DWS LifeCompass 2040 Fund - Class A




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               5.75%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.16%             -2.13%         $ 9,786.92       $   686.43
   2           10.25%        5.48%             -2.60%         $ 9,739.94       $   535.04
   3           15.76%        5.48%             -3.07%         $ 9,693.19       $   532.47
   4           21.55%        5.48%             -3.53%         $ 9,646.66       $   529.91
   5           27.63%        5.48%             -4.00%         $ 9,600.36       $   527.37
   6           34.01%        5.48%             -4.46%         $ 9,554.28       $   524.84
   7           40.71%        5.48%             -4.92%         $ 9,508.42       $   522.32
   8           47.75%        5.48%             -5.37%         $ 9,462.78       $   519.81
   9           55.13%        5.48%             -5.83%         $ 9,417.36       $   517.32
  10           62.89%        5.48%             -6.28%         $ 9,372.15       $   514.83
  TOTAL                                                                        $ 5,410.34
</TABLE>



DWS LifeCompass 2040 Fund - Class C





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.91%              3.09%       $ 10,309.00        $   193.95
   2           10.25%        6.21%              1.84%       $ 10,184.26        $   636.32
   3           15.76%        6.21%              0.61%       $ 10,061.03        $   628.62
   4           21.55%        6.21%             -0.61%       $  9,939.29        $   621.01
   5           27.63%        6.21%             -1.81%       $  9,819.03        $   613.50
   6           34.01%        6.21%             -3.00%       $  9,700.22        $   606.07
   7           40.71%        6.21%             -4.17%       $  9,582.84        $   598.74
   8           47.75%        6.21%             -5.33%       $  9,466.89        $   591.49
   9           55.13%        6.21%             -6.48%       $  9,352.34        $   584.34
  10           62.89%        6.21%             -7.61%       $  9,239.18        $   577.27
  TOTAL                                                                        $ 5,651.31
</TABLE>




110 | Appendix
<PAGE>

TO GET MORE INFORMATION

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

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


For a free copy of any of these documents or to request other information about
a fund, call (800) 621-1048, or contact DWS Investments at the address listed
below. Each fund's SAI and shareholder reports are also available through the
DWS Investments Web site at www.dws-investments.com. These documents and other
information about each fund are available from the EDGAR Database on the SEC's
Internet site at www.sec.gov. If you like, you may obtain copies of this
information, after paying a copying fee, by e-mailing a request to
publicinfo@sec.gov or by writing the SEC at the address listed below. You can
also review and copy these documents and other information about each fund,
including each fund's SAI, at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the SEC's Public Reference Room may be
obtained by calling (800) SEC-0330.




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




<TABLE>
<S>                         <C>                                  <C>
SEC FILE NUMBER:
DWS Target Date Series      DWS LifeCompass Retirement Fund      811-8606
DWS Target Date Series            DWS LifeCompass 2015 Fund      811-8606
DWS Target Date Series            DWS LifeCompass 2020 Fund      811-8606
DWS Target Date Series            DWS LifeCompass 2030 Fund      811-8606
DWS Target Date Series            DWS LifeCompass 2040 Fund      811-8606
</TABLE>







(12/01/08) DTDSF-1               [RECYCLE GRAPHIC APPEARS HERE]
                                                                       [Logo]DWS
                                                                      INVESTMENT
                                                             Deutsche Bank Group





<PAGE>



                                DECEMBER 1, 2008








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


                        DWS LIFECOMPASS RETIREMENT FUND


                           DWS LIFECOMPASS 2015 FUND


                           DWS LIFECOMPASS 2020 FUND


                           DWS LIFECOMPASS 2030 FUND



                           DWS LIFECOMPASS 2040 FUND


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


                                                 RESHAPING INVESTING. [DWS Logo]
                                                             Deutsche Bank Group



<PAGE>

CONTENTS





<TABLE>
<S>      <C>
HOW EACH FUND WORKS
  4      DWS LifeCompass
         Retirement Fund
 14      DWS LifeCompass 2015 Fund
 24      DWS LifeCompass 2020 Fund
 34      DWS LifeCompass 2030 Fund
 44      DWS LifeCompass 2040 Fund
 52      Other Policies and Secondary
         Risks
 54      Who Manages and Oversees
         the Funds
 57      Financial Highlights


</TABLE>
<TABLE>
<S>      <C>
HOW TO INVEST IN THE FUNDS
 64      How to Buy Class S Shares
 65      How to Exchange or Sell
         Class S Shares
 68      Policies You Should Know
         About
 78      Understanding Distributions
         and Taxes
 82      Appendix
</TABLE>


<PAGE>

HOW EACH FUND WORKS

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


These funds use an asset allocation strategy, dividing their assets among
different types of investments. All five funds invest in other DWS funds and
non-affiliated investment companies. Each fund is designed for investors with a
particular time horizon or risk profile, and invests in a distinct mix of
funds. Because the underlying funds hold a range of securities, an investment
in a fund may offer exposure to thousands of individual securities.

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

CLASS S shares are generally only available to new investors through fee-based

programs of investment dealers that have special agreements with each fund's
distributor, through certain group retirement plans and through certain
registered investment advisors. These dealers and advisors typically charge
ongoing fees for services they provide.


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


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

<PAGE>



<TABLE>
<S>                                    <C>
                                         Class S
  ticker symbol                          SCPCX
    fund number                          2080
    DWS LIFECOMPASS RETIREMENT FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks current income and, as a secondary objective,
            long-term growth of capital. The fund is designed for investors who
            are already in retirement or who plan to retire or begin
            withdrawing portions of their investments in the near future. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the desired economic exposure to a
            particular market or sector is not available through a DWS fund.

            The fund has a target asset allocation (see sidebar), which the
            managers use as a reference point in setting the fund's actual
            asset allocation. While the actual asset allocation may vary, the
            managers expect over the long term it will average out to be
            similar to the target asset allocation.

            The managers regularly review the actual asset allocation and may
            adjust it based on current or expected market conditions or to
            manage risk. In making their asset allocation decisions, the
            managers use a proprietary mix of quantitative and qualitative
            inputs to arrive at a view for the securities markets and segments
            of those markets. These inputs include, but are not limited to,
            return forecasts for asset classes and investment guidelines. Based
            on the desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.

            In order to mitigate the risks associated with a particular fund
            or manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's target allocation is approximately:

- 35% Equity funds; and
- 65% Fixed Income funds.



4 | DWS LifeCompass Retirement Fund
<PAGE>


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.



                                            DWS LifeCompass Retirement Fund  | 5
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.



6 | DWS LifeCompass Retirement Fund
<PAGE>


            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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

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

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


                                            DWS LifeCompass Retirement Fund  | 7
<PAGE>

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


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

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


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

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


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

            DERIVATIVES RISK. Risks associated with derivatives include the
            risk that the derivative is not well correlated with the security,
            index or currency to which it relates; the risk that derivatives
            may result in losses or missed opportunities; the risk that the
            fund will be unable to sell the derivative because of an illiquid
            secondary market; the risk that a counterparty is unwilling or
            unable to meet its obligation; and the risk that the derivative
            transaction could expose the fund to the effects of leverage, which
            could increase the fund's exposure to the market and magnify
            potential losses. There is no guarantee that derivatives, to the
            extent employed, will have the intended



8 | DWS LifeCompass Retirement Fund
<PAGE>


            effect, and their use could cause lower returns or even losses to
            the fund. The use of derivatives by the fund to hedge risk may
            reduce the opportunity for gain by offsetting the positive effect
            of favorable price movements.

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

            Other factors that could affect performance include:

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



                                            DWS LifeCompass Retirement Fund  | 9
<PAGE>

THE FUND'S PERFORMANCE HISTORY

While a fund's past performance (before and after taxes) isn't necessarily a
sign of how it will do in the future, it can be valuable for an investor to
know.


The bar chart shows how the performance of the fund's Class S shares has varied
from year to year, which may give some idea of risk. The table on the following
page shows how fund performance compares to relevant index performance (which,
unlike fund performance, does not reflect fees or expenses). The performance of
the fund and the index information varies over time. All figures assume
reinvestment of dividends and distributions (in the case of after-tax returns,
reinvested net of assumed tax rates).


The table shows returns for Class S shares on a before-tax and after-tax basis.
After-tax returns are estimates calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown in the table. After-tax returns shown
are not relevant for investors who hold their shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

DWS LifeCompass Retirement Fund

ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - Class S



<TABLE>
<S>       <C>       <C>       <C>        <C>        <C>        <C>       <C>       <C>       <C>
 5.63      2.84      3.09      -2.92      -5.79     13.63       7.70      4.69      9.29     4.68
1998      1999      2000      2001       2002       2003       2004      2005      2006      2007
</TABLE>







<TABLE>
<CAPTION>
2008 TOTAL RETURN AS OF SEPTEMBER 30: -11.52%
<S>                                           <C>
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 7.51%, Q2 2003                  WORST QUARTER: -5.69%, Q3 2002
</TABLE>




10 | DWS LifeCompass Retirement Fund
<PAGE>


AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007




<TABLE>
<CAPTION>
                                              1 YEAR      5 YEARS      10 YEARS
<S>                                          <C>         <C>          <C>
 CLASS S
   Return before Taxes                          4.68         7.95        4.15
   Return after Taxes on Distributions          3.33         6.79        2.62
   Return after Taxes on Distributions
   and Sale of Fund Shares                      3.17         6.23        2.63*
 RUSSELL 1000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         5.77        13.43        6.20
 RUSSELL 2000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                        -1.57        16.25        7.08
 BARCLAYS CAPITAL INTERMEDIATE U.S.
 AGGREGATE INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                        7.02          4.22        5.83
 CREDIT SUISSE HIGH YIELD INDEX
 (reflects no deductions for fees,
 expenses or taxes)                            2.65         10.97        6.10
 MERRILL LYNCH 3-MONTH US TREASURY
 BILL INDEX (reflects no deductions for
 fees, expenses or taxes)                      5.03          3.07        3.77
 MORGAN STANLEY CAPITAL
 INTERNATIONAL (MSCI) EUROPE,
 AUSTRALASIA AND THE FAR EAST (EAFE)
 INDEX (reflects no deductions for fees,
 expenses or taxes)                           11.17         21.59        8.66
</TABLE>




 *   Return after Taxes on Distributions and Sale of Fund Shares is higher than
     Return after Taxes on Distributions for the same period due to a capital
     loss occurring upon redemption resulting in an assumed tax deduction for
     the shareholder.

 Total returns would have been lower if the advisor had not reduced the
 expenses of certain of the underlying funds.

 RUSSELL 1000 (Reg. TM) INDEX is an unmanaged price-only index of the 1,000
 largest capitalized companies that are domiciled in the US and whose common
 stocks are traded.

 RUSSELL 2000 (Reg. TM) INDEX is an unmanaged capitalization-weighted measure
 of approximately 2,000 small US stocks.

 BARCLAYS CAPITAL INTERMEDIATE U.S. AGGREGATE INDEX (name changed from Lehman
 Brothers Intermediate U.S. Aggregate Index effective November 3, 2008) is an
 unmanaged index that covers the US investment-grade fixed-rate bond market,
 including government and credit securities, agency mortgage securities,
 asset-backed securities and commercial mortgage-backed securities.

 CREDIT SUISSE HIGH YIELD INDEX is an unmanaged trader-priced portfolio,
 constructed to mirror the global high-yield debt market.



                                           DWS LifeCompass Retirement Fund  | 11
<PAGE>

 MERRILL LYNCH 3-MONTH US TREASURY BILL INDEX is an unmanaged index capturing
 the performance of a single issue maturing closest to, but not exceeding,
 three months from the re-balancing date.


 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND THE FAR EAST
 (MSCI EAFE (Reg. TM)) INDEX is an unmanaged index that tracks international
 stock performance in the 21 developed markets of Europe, Australasia and the
 Far East.



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

Current performance may be higher or lower than the performance data quoted
above. For more recent performance information, call your financial advisor or
(800) 728-3337 or visit our Web site at www.dws-investments.com.



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

Return information assumes that fund shares were sold at the end of the period.


RETURN AFTER TAXES ON DISTRIBUTIONS reflects taxes only on the fund's
distributions and not on a shareholder's gain or loss from selling fund shares.


RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES reflects taxes on
both the fund's distributions and a shareholder's gain or loss from selling
fund shares.



12 | DWS LifeCompass Retirement Fund
<PAGE>

HOW MUCH INVESTORS PAY


This fund's Class S shares have no sales charges or other shareholder fees. The
fund's shareholders directly bear the fees and expenses of the fund, subject to
any contractual obligation that the Advisor has to waive fees or reimburse
expenses to maintain the fund's operating expenses at a specified level (see
"Total Annual Operating Expenses" in the table below. The fund will indirectly
bear its proportionate share of fees and expenses incurred by the underlying
DWS funds and exchange-traded funds in which the fund is invested (see
"Acquired Funds (Underlying Funds) Fees and Expenses" in the table below). This
information doesn't include any fees that may be charged by your financial
advisor.




<TABLE>
<CAPTION>
FEE TABLE                                             CLASS S
<S>                                         <C>
 SHAREHOLDER FEES, paid directly from your investment
__________________________________________________________________________
 ANNUAL OPERATING EXPENSES, deducted from fund assets
__________________________________________________________________________
 Management Fee 1                                       0.00%
 Distribution/Service (12b-1) Fee                        None
 Other Expenses 2                                       0.44
 Acquired Funds (Underlying Funds) Fees
 and Expenses3                                          0.61
 TOTAL ANNUAL OPERATING EXPENSES4                       1.05
</TABLE>




1   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

2   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.



3   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.

4   Through September 30, 2009, the Advisor has contractually agreed to waive
   all or a portion of its fees and reimburse or pay operating expenses of the
   fund to the extent necessary to maintain the fund's total operating
   expenses at 0.27% for Class S shares, excluding certain expenses such as
   extraordinary expenses, taxes, brokerage, interest and indirect fees and
   expenses of acquired funds (underlying funds). Although there can be no
   assurance that the current waiver/expense reimbursement arrangement will be
   maintained beyond September 30, 2009, the Advisor has committed to review
   the continuance of waiver/expense reimbursement arrangement by September
   30, 2009.

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




<TABLE>
<CAPTION>
EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                  <C>         <C>          <C>          <C>
 Class S shares        $107         $334         $579       $1,283
</TABLE>




                                           DWS LifeCompass Retirement Fund  | 13
<PAGE>



<TABLE>
<S>                              <C>
                                   Class S
  ticker symbol                    SPBAX
    fund number                    2081
    DWS LIFECOMPASS 2015 FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks to achieve as high total return as is consistent
            with its asset allocation until the target year. As the fund
            approaches its target year, the fund will decrease its emphasis on
            growth of capital and increase its emphasis on current income. The
            fund is designed for investors seeking to meet their respective
            investment goals, such as retirement, around the year 2015. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the economic exposure to a particular
            market or sector is not available through a DWS fund.

            The fund has a target asset allocation, which the managers use as a
            reference point in setting the fund's actual asset allocation (see
            sidebar). The target asset allocation for the fund will change over
            time based on the number of years remaining until the target year,
            becoming more conservative as the fund approaches the target year.
            As the target year approaches, the fund's target asset allocation
            will approach that of the DWS LifeCompass Retirement Fund (the
            "Retirement Fund"). Once the fund's actual asset allocation is
            similar to that of the Retirement Fund, the fund may be combined
            with the Retirement Fund or another DWS fund offered at the time.

            The fund's target asset allocation may differ from the fund's actual
            asset allocation. The managers periodically review the actual asset
            allocation and may adjust it based on the target investment horizon,
            current or expected market conditions or to manage risk. In making
            their asset allocation decisions, the managers use a proprietary mix
            of quantitative and qualitative inputs to arrive at a view for the
            securities markets and segments of those markets. These inputs
            include, but are not limited to, return forecasts for asset classes,
            target investments horizon and investment guidelines. Based on the
            desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's current target asset allocation is approximately:

- 60% Equity funds; and
- 40% Fixed Income funds.




14 | DWS LifeCompass 2015 Fund
<PAGE>

            In order to mitigate the risks associated with a particular fund or
            manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



                                                 DWS LifeCompass 2015 Fund  | 15
<PAGE>

            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.

            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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


16 | DWS LifeCompass 2015 Fund
<PAGE>


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



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


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


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

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


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

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

                                                 DWS LifeCompass 2015 Fund  | 17
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.



18 | DWS LifeCompass 2015 Fund
<PAGE>


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

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

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

            Other factors that could affect performance include:



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



                                                 DWS LifeCompass 2015 Fund  | 19
<PAGE>

THE FUND'S PERFORMANCE HISTORY

While a fund's past performance (before and after taxes) isn't necessarily a
sign of how it will do in the future, it can be valuable for an investor to
know.


The bar chart shows how the performance of the fund's Class S shares has varied
from year to year, which may give some idea of risk. The table on the following
page shows how fund performance compares to relevant index performance (which,
unlike fund performance, does not reflect fees or expenses). The performance of
the fund and the index information varies over time. All figures assume
reinvestment of dividends and distributions (in the case of after-tax returns,
reinvested net of assumed tax rates).


The table shows returns for Class S shares on a before-tax and after-tax basis.
After-tax returns are estimates calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown in the table. After-tax returns shown
are not relevant for investors who hold their shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

DWS LifeCompass 2015 Fund

ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - Class S




<TABLE>
<S>       <C>        <C>        <C>        <C>         <C>        <C>       <C>       <C>        <C>
 7.64     16.66       -2.64      -9.14      -11.97     19.06       9.07      5.28     11.50      4.39
1998      1999       2000       2001        2002       2003       2004      2005      2006       2007
</TABLE>







<TABLE>
<CAPTION>
2008 TOTAL RETURN AS OF SEPTEMBER 30: -15.43%
<S>                                           <C>
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 12.53%, Q4 1999                 WORST QUARTER: -10.26%, Q3 1998
</TABLE>




20 | DWS LifeCompass 2015 Fund
<PAGE>


AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007




<TABLE>
<CAPTION>
                                              1 YEAR      5 YEARS      10 YEARS
<S>                                          <C>         <C>          <C>
 CLASS S
   Return before Taxes                          4.39         9.73        4.52
   Return after Taxes on Distributions          3.24         8.80        3.11
   Return after Taxes on Distributions
   and Sale of Fund Shares                      3.05         7.97        3.15*
 RUSSELL 1000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         5.77        13.43        6.20
 BARCLAYS CAPITAL U.S. AGGREGATE
 INDEX (reflects no deductions for fees,
 expenses or taxes)                             6.97         4.42        5.97
 RUSSELL 2000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                        -1.57        16.25        7.08
 MORGAN STANLEY CAPITAL
 INTERNATIONAL (MSCI) EUROPE,
 AUSTRALASIA AND THE FAR EAST (EAFE)
 INDEX (reflects no deductions for fees,
 expenses or taxes)                           11.17         21.59        8.66
 CREDIT SUISSE HIGH YIELD INDEX
 (reflects no deductions for fees,
 expenses or taxes)                            2.65         10.97        6.10
 MERRILL LYNCH 3-MONTH US TREASURY
 BILL INDEX (reflects no deductions for
 fees, expenses or taxes)                      5.03          3.07        3.77
</TABLE>




 *   Return after Taxes on Distributions and Sale of Fund Shares is higher than
     Return after Taxes on Distributions for the same period due to a capital
     loss occurring upon redemption resulting in an assumed tax deduction for
     the shareholder.

 Total returns would have been lower if the advisor had not reduced the
 expenses of certain of the underlying funds.


 RUSSELL 1000 (Reg. TM) INDEX is an unmanaged price-only index of the 1,000
 largest capitalized companies that are domiciled in the US and whose common
 stocks are traded.


 BARCLAYS CAPITAL U.S. AGGREGATE INDEX (name changed from Lehman Brothers U.S.
 Aggregate Index effective November 3, 2008) is an unmanaged market
 value-weighted measure of Treasury issues, agency issues, corporate bond
 issues and mortgage securities.

 RUSSELL 2000 (Reg. TM) INDEX is an unmanaged capitalization-weighted measure
 of approximately 2,000 small US stocks.

 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND THE FAR EAST
 (MSCI EAFE (Reg. TM)) INDEX is an unmanaged index that tracks international
 stock performance in the 21 developed markets of Europe, Australasia and the
 Far East.

 CREDIT SUISSE HIGH YIELD INDEX is an unmanaged trader-priced portfolio,
 constructed to mirror the global high-yield debt market.



                                                 DWS LifeCompass 2015 Fund  | 21
<PAGE>

 MERRILL LYNCH 3-MONTH US TREASURY BILL INDEX is an unmanaged index capturing
 the performance of a single issue maturing closest to, but not exceeding,
 three months from the re-balancing date.


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

Current performance may be higher or lower than the performance data quoted
above. For more recent performance information, call your financial advisor or
(800) 728-3337 or visit our Web site at www.dws-investments.com.



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

Return information assumes that fund shares were sold at the end of the period.


RETURN AFTER TAXES ON DISTRIBUTIONS reflects taxes only on the fund's
distributions and not on a shareholder's gain or loss from selling fund shares.


RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES reflects taxes on
both the fund's distributions and a shareholder's gain or loss from selling
fund shares.



22 | DWS LifeCompass 2015 Fund
<PAGE>

HOW MUCH INVESTORS PAY


This fund's Class S shares have no sales charges or other shareholder fees. The
fund's shareholders directly bear the fees and expenses of the fund, subject to
any contractual obligation that the Advisor has to waive fees or reimburse
expenses to maintain the fund's operating expenses at a specified level (see
"Total Annual Operating Expenses" in the table below). The fund will indirectly
bear its proportionate share of fees and expenses incurred by the underlying
DWS funds and exchange-traded funds in which the fund is invested (see
"Acquired Funds (Underlying Funds) Fees and Expenses" in the table below). This
information doesn't include any fees that may be charged by your financial
advisor.




<TABLE>
<CAPTION>
FEE TABLE                                             CLASS S
<S>                                         <C>
 SHAREHOLDER FEES, paid directly from
 your investment                                       None
________________________________________
 ANNUAL OPERATING EXPENSES, deducted from fund assets
__________________________________________________________________________
 Management Fee 1                                        0.00%
 Distribution/Service (12b-1) Fee                        None
 Other Expenses 2                                        0.41
 Acquired Funds (Underlying Funds) Fees
 and Expenses 3                                          0.61
 TOTAL ANNUAL OPERATING EXPENSES4                        1.02
</TABLE>




1   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

2   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.



3   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.



4   Through September 30, 2009, the Advisor has contractually agreed to waive
   all or a portion of its fees and reimburse or pay operating expenses of the
   fund to the extent necessary to maintain the fund's total operating
   expenses at 0.23% for Class S shares, excluding certain expenses such as
   extraordinary expenses, taxes, brokerage, interest and indirect fees and
   expenses of acquired funds (underlying funds). Although there can be no
   assurance that the current waiver/expense reimbursement arrangement will be
   maintained beyond September 30, 2009, the Advisor has committed to review
   the continuance of waiver/expense reimbursement arrangement by September
   30, 2009.

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




<TABLE>
<CAPTION>
EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                  <C>         <C>          <C>          <C>
 Class S shares        $104         $325         $563       $1,248
</TABLE>




                                                 DWS LifeCompass 2015 Fund  | 23
<PAGE>



<TABLE>
<S>                              <C>
                                   Class S
  ticker symbol                    SPGRX
    fund number                    2082
    DWS LIFECOMPASS 2020 FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks to achieve as high total return as is consistent
            with its asset allocation until the target year. As the fund
            approaches its target year, the fund will decrease its emphasis on
            growth of capital and increase its emphasis on current income. The
            fund is designed for investors seeking to meet their respective
            investment goals, such as retirement, around the year 2020. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the desired economic exposure to a
            particular market or sector is not available through a DWS fund.

            The fund has a target asset allocation, which the managers use as a
            reference point in setting the fund's actual asset allocation (see
            sidebar). The target asset allocation for the fund will change over
            time based on the number of years remaining until the target year,
            becoming more conservative as the fund approaches the target year.
            As the target year approaches, the fund's target asset allocation
            will approach that of the Retirement Fund. Once the fund's actual
            asset allocation is similar to that of the Retirement Fund, the
            fund may be combined with the Retirement Fund or another DWS fund
            offered at the time.

            The fund's target asset allocation may differ from the fund's actual
            asset allocation. The managers periodically review the actual asset
            allocation and may adjust it based on the target investment horizon,
            current or expected market conditions or to manage risk. In making
            their asset allocation decisions, the managers use a proprietary mix
            of quantitative and qualitative inputs to arrive at a view for the
            securities markets and segments of those markets. These inputs
            include, but are not limited to, return forecasts for asset classes,
            target investment horizon and investment guidelines. Based on the
            desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's current target asset allocation is approximately:

- 70% Equity funds; and
- 30% Fixed Income funds.




24 | DWS LifeCompass 2020 Fund
<PAGE>

            In order to mitigate the risks associated with a particular fund or
            manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



                                                 DWS LifeCompass 2020 Fund  | 25
<PAGE>

            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.

            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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


26 | DWS LifeCompass 2020 Fund
<PAGE>


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



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


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


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

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


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

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

                                                 DWS LifeCompass 2020 Fund  | 27
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.



28 | DWS LifeCompass 2020 Fund
<PAGE>


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

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

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

            Other factors that could affect performance include:



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



                                                 DWS LifeCompass 2020 Fund  | 29
<PAGE>

THE FUND'S PERFORMANCE HISTORY

While a fund's past performance (before and after taxes) isn't necessarily a
sign of how it will do in the future, it can be valuable for an investor to
know.


The bar chart shows how the performance of the fund's Class S shares has varied
from year to year, which may give some idea of risk. The table on the following
page shows how fund performance compares to relevant index performance (which,
unlike fund performance, does not reflect fees or expenses). The performance of
the fund and the index information varies over time. All figures assume
reinvestment of dividends and distributions (in the case of after-tax returns,
reinvested net of assumed tax rates).


The table shows returns for Class S shares on a before-tax and after-tax basis.
After-tax returns are estimates calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown in the table. After-tax returns shown
are not relevant for investors who hold their shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

DWS LifeCompass 2020 Fund

ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - Class S




<TABLE>
<S>       <C>        <C>        <C>         <C>         <C>        <C>        <C>       <C>        <C>
 9.60     35.24       -6.29      -13.39      -18.80     25.64      10.33       6.10     13.50      4.68
1998      1999       2000        2001        2002       2003       2004       2005      2006       2007
</TABLE>







<TABLE>
<CAPTION>
2008 TOTAL RETURN AS OF SEPTEMBER 30: -17.00%
<S>                                           <C>
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 21.81%, Q4 1999                 WORST QUARTER: -15.50%, Q3 2002
</TABLE>




30 | DWS LifeCompass 2020 Fund
<PAGE>


AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007




<TABLE>
<CAPTION>
                                              1 YEAR      5 YEARS      10 YEARS
<S>                                          <C>         <C>          <C>
 CLASS S
   Return before Taxes                          4.68        11.81         5.49
   Return after Taxes on Distributions          3.56        11.10         4.43
   Return after Taxes on Distributions
   and Sale of Fund Shares                      3.33        10.00         4.30
 RUSSELL 1000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         5.77        13.43         6.20
 BARCLAYS CAPITAL U.S. AGGREGATE
 INDEX (reflects no deductions for fees,
 expenses or taxes)                             6.97         4.42         5.97
 RUSSELL 2000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                        -1.57        16.25         7.08
 MORGAN STANLEY CAPITAL
 INTERNATIONAL (MSCI) EUROPE,
 AUSTRALASIA AND THE FAR EAST (EAFE)
 INDEX (reflects no deductions for fees,
 expenses or taxes)                           11.17         21.59         8.66
 CREDIT SUISSE HIGH YIELD INDEX
 (reflects no deductions for fees,
 expenses or taxes)                            2.65         10.97         6.10
 MERRILL LYNCH 3-MONTH US TREASURY
 BILL INDEX (reflects no deductions for
 fees, expenses or taxes)                      5.03          3.07         3.77
</TABLE>




 Total returns would have been lower if the advisor had not reduced the
 expenses of certain of the underlying funds.



 RUSSELL 1000 (Reg. TM) INDEX is an unmanaged price-only index of the 1,000
 largest capitalized companies that are domiciled in the US and whose common
 stocks are traded.


 BARCLAYS CAPITAL U.S. AGGREGATE INDEX (name changed from Lehman Brothers U.S.
 Aggregate Index effective November 3, 2008) is an unmanaged market
 value-weighted measure of Treasury issues, agency issues, corporate bond
 issues and mortgage securities.


 RUSSELL 2000 (Reg. TM) INDEX is an unmanaged capitalization-weighted measure
 of approximately 2,000 small US stocks.


 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND THE FAR EAST
 (MSCI EAFE (Reg. TM)) INDEX is an unmanaged index that tracks international
 stock performance in the 21 developed markets of Europe, Australasia and the
 Far East.


 CREDIT SUISSE HIGH YIELD INDEX is an unmanaged trader-priced portfolio,
 constructed to mirror the global high-yield debt market.


                                                 DWS LifeCompass 2020 Fund  | 31
<PAGE>


 MERRILL LYNCH 3-MONTH US TREASURY BILL INDEX is an unmanaged index capturing
 the performance of a single issue maturing closest to, but not exceeding,
 three months from the re-balancing date.



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

Current performance may be higher or lower than the performance data quoted
above. For more recent performance information, call your financial advisor or
(800) 728-3337 or visit our Web site at www.dws-investments.com.



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

Return information assumes that fund shares were sold at the end of the period.


RETURN AFTER TAXES ON DISTRIBUTIONS reflects taxes only on the fund's
distributions and not on a shareholder's gain or loss from selling fund shares.


RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES reflects taxes on
both the fund's distributions and a shareholder's gain or loss from selling
fund shares.



32 | DWS LifeCompass 2020 Fund
<PAGE>

HOW MUCH INVESTORS PAY


This fund's Class S shares have no sales charges or other shareholder fees. The
fund's shareholders directly bear the fees and expenses of the fund, subject to
any contractual obligation that the Advisor has to waive fees or reimburse
expenses to maintain the fund's operating expenses at a specified level (see
"Total Annual Operating Expenses" in the table below). The fund will indirectly
bear its proportionate share of fees and expenses incurred by the underlying
DWS funds and exchange-traded funds in which the fund is invested (see
"Acquired Funds (Underlying Funds) Fee and Expenses" in the table below). This
information doesn't include any fees that may be charged by your financial
advisor.




<TABLE>
<CAPTION>
FEE TABLE                                             CLASS S
<S>                                         <C>
 SHAREHOLDER FEES, paid directly from
 your investment                                       None
________________________________________
 ANNUAL OPERATING EXPENSES, deducted from fund assets
__________________________________________________________________________
 Management Fee 1                                        0.00%
 Distribution/Service (12b-1) Fee                        None
 Other Expenses 2                                        0.45
 Acquired Funds (Underlying Funds) Fees
 and Expenses 3                                          0.61
 TOTAL ANNUAL OPERATING EXPENSES4                        1.06
</TABLE>




1   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

2   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.



3   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.



4   Through September 30, 2009, the Advisor has contractually agreed to waive
   all or a portion of its fees and reimburse or pay operating expenses of the
   fund to the extent necessary to maintain the fund's total operating
   expenses at 0.24% for Class S shares, excluding certain expenses such as
   extraordinary expenses, taxes, brokerage, interest and indirect fees and
   expenses of acquired funds (underlying funds). Although there can be no
   assurance that the current waiver/expense reimbursement arrangement will be
   maintained beyond September 30, 2009, the Advisor has committed to review
   the continuance of waiver/expense reimbursement arrangement by September
   30, 2009.

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




<TABLE>
<CAPTION>
EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                  <C>         <C>          <C>          <C>
 Class S shares        $108         $337         $585       $1,294
</TABLE>




                                                 DWS LifeCompass 2020 Fund  | 33
<PAGE>



<TABLE>
<S>                              <C>
                                   Class S
  ticker symbol                    PPLSX
    fund number                    2084
    DWS LIFECOMPASS 2030 FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks to achieve as high total return as is consistent
            with its asset allocation until the target year. As the fund
            approaches its target year, the fund will decrease its emphasis on
            growth of capital and increase its emphasis on current income. The
            fund is designed for investors seeking to meet their respective
            investment goals, such as retirement, around the year 2030. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the desired economic exposure to a
            particular market or sector is not available through a DWS fund.

            The fund has a target asset allocation, which the managers use as a
            reference point in setting the fund's actual asset allocation (see
            sidebar). The target asset allocation for the fund will change over
            time based on the number of years remaining until the target year,
            becoming more conservative as the fund approaches the target year.
            As the target year approaches, the fund's target asset allocation
            will approach that of the Retirement Fund. Once the fund's actual
            asset allocation is similar to that of the Retirement Fund, the
            fund may be combined with the Retirement Fund or another DWS fund
            offered at the time.

            The fund's target asset allocation may differ from the fund's actual
            asset allocation. The managers periodically review the actual asset
            allocation and may adjust it based on the target investment horizon,
            current or expected market conditions or to manage risk. In making
            their asset allocation decisions, the managers use a proprietary mix
            of quantitative and qualitative inputs to arrive at a view for the
            securities markets and segments of those markets. These inputs
            include, but are not limited to, return forecasts for asset classes,
            target investment horizon and investment guidelines. Based on the
            desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's current target asset allocation is approximately:

- 90% Equity funds; and
- 10% Fixed Income funds.




34 | DWS LifeCompass 2030 Fund
<PAGE>

            In order to mitigate the risks associated with a particular fund or
            manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



                                                 DWS LifeCompass 2030 Fund  | 35
<PAGE>

            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.

            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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


36 | DWS LifeCompass 2030 Fund
<PAGE>


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



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


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


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

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


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

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

                                                 DWS LifeCompass 2030 Fund  | 37
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.



38 | DWS LifeCompass 2030 Fund
<PAGE>


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

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

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

            Other factors that could affect performance include:



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



                                                 DWS LifeCompass 2030 Fund  | 39
<PAGE>

THE FUND'S PERFORMANCE HISTORY

While a fund's past performance (before and after taxes) isn't necessarily a
sign of how it will do in the future, it can be valuable for an investor to
know.


The bar chart shows how the performance of the fund's Class S shares has varied
from year to year, which may give some idea of risk. The table on the following
page shows how fund performance compares to relevant index performance (which,
unlike fund performance, does not reflect fees or expenses). The performance of
the fund and the index information varies over time. All figures assume
reinvestment of dividends and distributions (in the case of after-tax returns,
reinvested net of assumed tax rates).


The table shows returns for Class S shares on a before-tax and after-tax basis.
After-tax returns are estimates calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
state and local taxes. Actual after-tax returns depend on an investor's tax
situation and may differ from those shown in the table. After-tax returns shown
are not relevant for investors who hold their shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

DWS LifeCompass 2030 Fund

ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - Class S




<TABLE>
<S>       <C>        <C>
 6.95     16.14      4.35
2005      2006       2007
</TABLE>







<TABLE>
<CAPTION>
2008 TOTAL RETURN AS OF SEPTEMBER 30: -20.07%
<S>                                           <C>
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 7.24%, Q4 2006                  WORST QUARTER: -3.02%, Q4 2007
</TABLE>




40 | DWS LifeCompass 2030 Fund
<PAGE>


AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007




<TABLE>
<CAPTION>
                                                1 YEAR       SINCE INCEPTION*
<S>                                          <C>            <C>
 CLASS S
   Return before Taxes                            4.35             10.52
   Return after Taxes on Distributions            2.89              9.09
   Return after Taxes on Distributions
   and Sale of Fund Shares                       4.03**             8.52
 RUSSELL 1000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                          5.77               8.49
 BARCLAYS CAPITAL U.S. AGGREGATE
 INDEX (reflects no deductions for fees,
 expenses or taxes)                              6.97               3.34
 RUSSELL 2000 INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                          -1.57              7.61
 MORGAN STANLEY CAPITAL
 INTERNATIONAL (MSCI) EUROPE,
 AUSTRALASIA AND THE FAR EAST (EAFE)
 INDEX (reflects no deductions for fees,
 expenses or taxes)                             11.17              14.67
 CREDIT SUISSE HIGH YIELD INDEX
 (reflects no deductions for fees,
 expenses or taxes)                              2.65               6.13
 MERRILL LYNCH 3-MONTH US TREASURY
 BILL INDEX (reflects no deductions for
 fees, expenses or taxes)                        5.03               3.16
</TABLE>



     *   Fund inception: 11/1/04. Index comparisons begin 10/31/04.



 **   Return after Taxes on Distributions and Sale of Fund Shares is higher
     than Return after Taxes on Distributions for the same period due to a
     capital loss occurring upon redemption resulting in an assumed tax
     deduction for the shareholder.

 Total returns would have been lower if the advisor had not reduced the
 expenses of certain of the underlying funds.


 RUSSELL 1000 (Reg. TM) INDEX is an unmanaged price-only index of the 1,000
 largest capitalized companies that are domiciled in the US and whose common
 stocks are traded.


 BARCLAYS CAPITAL U.S. AGGREGATE INDEX (name changed from Lehman Brothers U.S.
 Aggregate Index effective November 3, 2008) is an unmanaged market
 value-weighted measure of Treasury issues, agency issues, corporate bond
 issues and mortgage securities.


 RUSSELL 2000 (Reg. TM) INDEX is an unmanaged capitalization-weighted measure
 of approximately 2,000 small US stocks.


 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA AND THE FAR EAST
 (MSCI EAFE (Reg. TM)) INDEX is an unmanaged index that tracks international
 stock performance in the 21 developed markets of Europe, Australasia and the
 Far East.



                                                 DWS LifeCompass 2030 Fund  | 41
<PAGE>


 CREDIT SUISSE HIGH YIELD INDEX is an unmanaged trader-priced portfolio,
 constructed to mirror the global high-yield debt market.


 MERRILL LYNCH 3-MONTH US TREASURY BILL INDEX is an unmanaged index capturing
 the performance of a single issue maturing closest to, but not exceeding,
 three months from the re-balancing date.


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

Current performance may be higher or lower than the performance data quoted
above. For more recent performance information, call your financial advisor or
(800) 728-3337 or visit our Web site at www.dws-investments.com.



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

Return information assumes that fund shares were sold at the end of the period.


RETURN AFTER TAXES ON DISTRIBUTIONS reflects taxes only on the fund's
distributions and not on a shareholder's gain or loss from selling fund shares.


RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES reflects taxes on
both the fund's distributions and a shareholder's gain or loss from selling
fund shares.



42 | DWS LifeCompass 2030 Fund
<PAGE>

HOW MUCH INVESTORS PAY


This fund's Class S shares have no sales charges or other shareholder fees. The
fund's shareholders directly bear the fees and expenses of the fund, subject to
any contractual obligation that the Advisor has to waive fees or reimburse
expenses to maintain the fund's operating expenses at a specified level (see
"Net Annual Fund and Acquired Funds (Underlying Funds) Operating Expenses" in
the table below). The fund will indirectly bear its proportionate share of fees
and expenses incurred by the underlying DWS funds and exchange-traded funds in
which the fund is invested (see "Acquired Funds (Underlying Funds) Fees and
Expenses" in the table below). This information doesn't include any fees that
may be charged by your financial advisor.




<TABLE>
<CAPTION>
FEE TABLE                                             CLASS S
<S>                                         <C>
 SHAREHOLDER FEES, paid directly from
 your investment                                       None
________________________________________
 ANNUAL OPERATING EXPENSES, deducted from fund assets
__________________________________________________________________________
 Management Fee 1                                        0.00%
 Distribution/Service (12b-1) Fee                        None
 Other Expenses 2                                        0.77
 Acquired Funds (Underlying Funds) Fees
 and Expenses 3                                          0.65
 TOTAL ANNUAL OPERATING EXPENSES                         1.42
 Less Expense Waiver/Reimbursement 4                     0.57
 NET ANNUAL FUND AND ACQUIRED FUNDS
 (UNDERLYING FUNDS) OPERATING
 EXPENSES 4                                              0.85
</TABLE>




1   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

2   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.



3   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.



4   Through November 30, 2009, the Advisor has contractually agreed to waive
   all or a portion of its fees and reimburse or pay operating expenses of the
   fund to the extent necessary to maintain the fund's total operating
   expenses at 0.20% for Class S shares, excluding certain expenses such as
   extraordinary expenses, taxes, brokerage, interest and indirect fees and
   expenses of acquired funds (underlying funds).


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



<TABLE>
<CAPTION>
EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                  <C>         <C>          <C>          <C>
 Class S shares         $87         $393         $722       $1,653
</TABLE>




                                                 DWS LifeCompass 2030 Fund  | 43
<PAGE>



<TABLE>
<S>                              <C>
                                   Class S
  ticker symbol                    TGTSX
    fund number                    2057
    DWS LIFECOMPASS 2040 FUND


</TABLE>


            THE FUND'S MAIN INVESTMENT STRATEGY

            The fund seeks to achieve as high total return as is consistent
            with its asset allocation until the target year. As the fund
            approaches its target year, the fund will decrease its emphasis on
            growth of capital and increase its emphasis on current income. The
            fund is designed for investors seeking to meet their respective
            investment goals, such as retirement, around the year 2040. The
            fund pursues its investment objective by investing in other DWS
            mutual funds. The fund may also invest in securities of Exchange
            Traded Funds ("ETFs") when the desired economic exposure to a
            particular market or sector is not available through a DWS fund.

            The fund has a target asset allocation, which the managers use as a
            reference point in setting the fund's actual asset allocation (see
            sidebar). The target asset allocation for the fund will change over
            time based on the number of years remaining until the target year,
            becoming more conservative as the fund approaches the target year.
            As the target year approaches, the fund's target asset allocation
            will approach that of the Retirement Fund. Once the fund's actual
            asset allocation is similar to that of the Retirement Fund, the
            fund may be combined with the Retirement Fund or another DWS fund
            offered at the time.

            The fund's target asset allocation may differ from the fund's actual
            asset allocation. The managers periodically review the actual asset
            allocation and may adjust it based on the target investment horizon,
            current or expected market conditions or to manage risk. In making
            their asset allocation decisions, the managers use a proprietary mix
            of quantitative and qualitative inputs to arrive at a view for the
            securities markets and segments of those markets. These inputs
            include, but are not limited to, return forecasts for asset classes,
            target investment horizon and investment guidelines. Based on the
            desired exposure to particular investments and thorough risk
            analysis the managers then decide which funds to use as underlying
            funds and in which proportions.



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund's current target asset allocation is approximately:

- 95% Equity funds; and
- 5% Fixed Income funds.




44 | DWS LifeCompass 2040 Fund
<PAGE>

            In order to mitigate the risks associated with a particular fund or
            manager and increase diversification in the fund, the fund will
            limit its investments in underlying funds so that no more than 40%
            of the overall allocation to equity will be invested in any one
            equity fund.


            The fund's underlying funds use a broad array of investment styles.
            These funds can buy many types of securities, among them common
            stocks of companies of any size, corporate bonds of varying credit
            quality, US government and agency bonds, mortgage- and asset-backed
            securities, money market instruments and others.



            THE MAIN RISKS OF INVESTING IN THE FUND

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

            The fund's allocations among the underlying funds will change over
            time, causing corresponding changes in the portfolio's risk
            profile.


            ASSET ALLOCATION RISK. Although asset allocation among different
            asset categories and investment strategies generally reduces risk
            and exposure to any one category or strategy, the risk remains that
            the Advisor may favor an asset category or investment strategy that
            performs poorly relative to other asset categories or investment
            strategies.

            UNDERLYING FUND INVESTMENT RISK. The fund's investments are
            concentrated in underlying funds, so the fund's investment
            performance is directly related to the performance of the
            underlying funds. To the extent the particular underlying funds in
            which the fund invests underperform their benchmarks and/
            or other funds investing in the same asset class, the fund would
            perform poorly relative to other asset allocation funds. In
            addition, the fund indirectly pays a portion of the expenses
            incurred by the underlying funds. As the underlying funds or the
            fund's allocations among the underlying funds change from time to
            time, or to the extent that the expense ratios of the underlying
            funds change, the weighted average operating expenses borne by the
            fund may increase or decrease.



                                                 DWS LifeCompass 2040 Fund  | 45
<PAGE>

            Investment risks of the underlying funds


            The investment risks below are risks of certain of the underlying
            funds; by investing in the underlying funds the fund is also
            exposed to these risks. In the section below, the term "fund" or
            "underlying fund" refers to one or more of the underlying funds.

            STOCK MARKET RISK. The fund is affected by how the stock market
            performs. To the extent the fund invests in a particular
            capitalization or market sector, the fund's performance may be
            proportionately affected by that segment's general performance.
            When stock prices fall, you should expect the value of your
            investment to fall as well. Because a stock represents ownership in
            its issuer, stock prices can be hurt by poor management, shrinking
            product demand and other business risks. These factors may affect
            single companies as well as groups of companies. In addition,
            movements in financial markets may adversely affect a stock's
            price, regardless of how well the company performs. The market as a
            whole may not favor the types of investments the fund makes, which
            could affect the fund's ability to sell them at an attractive
            price.

            ETF RISK. An ETF is a fund that holds a portfolio of common stocks
            or bonds designed to track the performance of a securities index or
            industry sector. ETFs trade on a securities exchange and their
            shares may, at times, trade at a premium or discount to their net
            asset value ("NAV"). In addition, an ETF may not replicate exactly
            the performance of the index it seeks to track for a number of
            reasons, including transaction costs incurred by the ETF. ETFs
            incur fees and expenses, such as operating expenses, licensing
            fees, trustee fees and marketing expenses, which are borne
            proportionately by ETF shareholders, such as the fund. The fund
            will also incur brokerage costs when purchasing and selling shares
            of ETFs.


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


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


46 | DWS LifeCompass 2040 Fund
<PAGE>


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



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


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


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

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


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

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


                                                 DWS LifeCompass 2040 Fund  | 47
<PAGE>


            BOND MARKET RISK. Bonds could be hurt by rises in market interest
            rates. A rise in interest rates generally means a fall in bond
            prices and, in turn, a fall in the value of your investment. To the
            extent that an underlying fund emphasizes bonds from any given
            industry, it could be hurt if that industry does not do well. Some
            bonds could be paid off earlier than expected, which may hurt the
            performance of an underlying fund; with mortgage- or asset-backed
            securities, any unexpected behavior in interest rates could
            increase the volatility of an underlying fund's share price and
            yield. Corporate bonds could perform less well than other bonds in
            a weak economy.

            CREDIT RISK. A fund purchasing debt securities faces the risk that
            the creditworthiness of an issuer may decline, causing the value of
            the debt securities to decline. In addition, an issuer may not be
            able to make timely payments on the interest and/
            or principal on the debt security it has issued. Because the
            issuers of high-yield debt securities or junk bonds (those rated
            below the fourth highest category) may be in uncertain financial
            health, the prices of their debt securities can be more vulnerable
            to bad economic news or even the expectation of bad news, than
            investment-grade debt securities. In some cases, debt securities,
            particularly high-yield debt securities, may decline in credit
            quality or go into default. Because the fund may invest in
            securities not paying current interest or in securities already in
            default, these risks may be more pronounced.



48 | DWS LifeCompass 2040 Fund
<PAGE>


            UNDERLYING FUND RISK. Certain DWS fund-of-funds are permitted to
            invest in the fund. As a result, the fund may have large inflows or
            outflows of cash from time to time. This could have adverse effects
            on the fund's performance if the fund were required to sell
            securities or invest cash at times when it otherwise would not do
            so. This activity could also accelerate the realization of capital
            gains and increase the fund's transaction costs. The Advisor will
            monitor the impact of these transactions and the fund may
            discontinue such arrangements if they are not deemed to be in the
            best interests of the fund.

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

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

            Other factors that could affect performance include:



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



                                                 DWS LifeCompass 2040 Fund  | 49
<PAGE>

            THE FUND'S PERFORMANCE HISTORY


            Since the fund commenced operations on November 15, 2007,
            performance information is not available for a full calendar year.



50 | DWS LifeCompass 2040 Fund
<PAGE>

HOW MUCH INVESTORS PAY



This fund's Class S shares have no sales charges or other shareholder fees. The
fund's shareholders directly bear the fees and expenses of the fund, subject to
any contractual obligation that the Advisor has to waive fees or reimburse
expenses to maintain the fund's operating expenses at a specified level (see
"Net Annual Fund and Acquired Funds (Underlying Funds) Operating Expenses" in
the table below. The fund will indirectly bear its proportionate share of fees
and expenses incurred by the underlying DWS funds and exchange-traded funds in
which the fund is invested (see "Acquired Funds (Underlying Funds) Fees and
Expenses" in the table below). This information doesn't include any fees that
may be charged by your financial advisor.




<TABLE>
<CAPTION>
FEE TABLE                                             CLASS S
<S>                                         <C>
 SHAREHOLDER FEES, paid directly from
 your investment                                       None
________________________________________
 ANNUAL OPERATING EXPENSES, deducted from fund assets
__________________________________________________________________________
 Management Fee 1                                        0.00%
 Distribution/Service (12b-1) Fees                       None
 Other Expenses 2                                        4.65
 Acquired Funds (Underlying Funds) Fees
 and Expenses 3                                          0.67
 TOTAL ANNUAL OPERATING EXPENSES                         5.32
 Less Expense Waiver/Reimbursement 4                     4.41
 NET ANNUAL FUND AND ACQUIRED FUNDS
 (UNDERLYING FUNDS) OPERATING
 EXPENSES 4                                              0.91
</TABLE>




1   The Advisor does not receive any investment advisory fees for managing the
   fund. The Advisor receives fees as investment advisor to each underlying
   DWS fund.

2   "Other Expenses" include an administrative services fee paid to the Advisor
   in the amount of 0.10%.

3   The amount indicated is based on the indirect net expenses associated with
   the fund's investment in the underlying funds for the fiscal year ended
   August 31, 2008.

4   Through November 30, 2009, the Advisor has contractually agreed to waive
   all or a portion of its fees and reimburse or pay operating expenses to the
   extent necessary to maintain the fund's total operating expenses at 0.24%
   for Class S shares, excluding certain expenses such as extraordinary
   expenses, taxes, brokerage, interest, and indirect fees and expenses of
   acquired funds (underlying funds).


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



<TABLE>
<CAPTION>
EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
<S>                  <C>         <C>          <C>          <C>
 Class S shares         $93       $1,197       $2,294       $5,005
</TABLE>




                                                 DWS LifeCompass 2040 Fund  | 51
<PAGE>

OTHER POLICIES AND SECONDARY RISKS

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

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


           -  Each fund (or the underlying funds) may trade actively. This
              could raise transaction costs (thus lowering return) and could
              mean distributions to shareholders will be taxed at higher
              federal income tax rates.



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



           Secondary risks of the underlying funds

           The investment risks below are risks of certain of the underlying
           funds; by investing in the underlying funds the fund is also exposed
           to these risks. In the sections below, the term "fund" refers to one
           or more of the underlying funds. For more information on the risks
           of the underlying funds, see each underlying fund's prospectus.


           GROWTH INVESTING RISK. Since growth stocks usually reinvest a large
           portion of earnings in their own businesses, they may lack the
           dividends associated with value stocks that might otherwise cushion
           their decline in a falling market. Earnings disappointments in
           growth stocks often result in sharp price declines because investors
           buy these stocks for their potential superior earnings growth.
           Growth stocks may also be out of favor for certain periods in
           relation to value stocks.

           VALUE INVESTING RISK. At times, "value" investing may perform better
           than or worse than other investment styles and the overall market.
           If portfolio management overestimates the value or return potential
           of one or more securities, the fund may underperform the general
           equity market. Value stocks may also be out of favor for certain
           periods in relation to growth stocks.



52 | Other Policies and Secondary Risks
<PAGE>


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



           For more information

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

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


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

           A complete list of each fund's portfolio holdings as of the
           month-end is posted on www.dws-investments.com on or about the 15th
           day of the following month. More frequent posting of portfolio
           holdings information may be made from time to time on
           www.dws-investments.com. The posted portfolio holdings information
           is available by fund and generally remains accessible at least until
           the date on which a fund files its Form N-CSR or N-Q with the
           Securities and Exchange Commission for the period that includes the
           date as of which the posted information is current. Each fund's
           Statement of Additional Information includes a description of a
           fund's policies and procedures with respect to the disclosure of a
           fund's portfolio holdings.



                                        Other Policies and Secondary Risks  | 53
<PAGE>

WHO MANAGES AND OVERSEES THE FUNDS


           The investment advisor

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


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


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

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


           MANAGEMENT FEE. The Advisor does not receive any advisory fee for
           managing each fund but does receive fees as investment advisor to
           each underlying DWS fund.


           The Advisor and its affiliates earn fees at varying rates for
           providing services to the underlying DWS funds. The Advisor may
           therefore have a conflict of interest in selecting the underlying
           DWS funds and in determining whether to invest in an ETF, from which
           it will not receive any fees. However, the Advisor is a fiduciary to
           each fund and is required to act in each fund's best interest.


54 | Who Manages and Oversees the Funds
<PAGE>


           A discussion regarding the basis for the Board's renewal of each
           fund's investment management agreement is contained in the most
           recent shareholder reports for the semi-annual period ended February
           28 (see "Shareholder reports" on the back cover).

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



                                        Who Manages and Oversees the Funds  | 55
<PAGE>

Portfolio management

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

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

Robert Wang
Managing Director of Deutsche Asset
Management and Portfolio Manager of the funds.
- Joined Deutsche Asset Management in 1995 as portfolio manager for asset
  allocation after 13 years of experience of trading fixed income, foreign
  exchange and derivative products at J.P. Morgan.
- Global Head of Quantitative Strategies Portfolio Management: New York.
- Joined the funds in 2002.
- BS, The Wharton School, University of Pennsylvania.

Inna Okounkova
Director of Deutsche Asset Management and Portfolio Manager of the funds.
- Joined Deutsche Asset Management in 1999 as a quantitative analyst, becoming
  an associate portfolio manager in 2001.
- Lead Portfolio Manager for Asset
  Allocation Strategies: New York.
- Joined the funds in 2002.
- MS, Moscow State University; MBA,
  University of Chicago -  Graduate School of Business.

Each fund's Statement of Additional Information provides additional information
about the portfolio managers' investments in a fund, a description of their
compensation structure and information regarding other accounts they manage.


56 | Who Manages and Oversees the Funds
<PAGE>

FINANCIAL HIGHLIGHTS


The financial highlights are designed to help you understand recent financial
performance. The figures in the first part of each table are for a single
share. The total return figures represent the percentage that an investor in a
fund would have earned (or lost), assuming all dividends and distributions were
reinvested. This information has been audited by PricewaterhouseCoopers LLP,
independent registered public accounting firm, whose report, along with each
fund's financial statements, is included in each fund's annual report (see
"Shareholder reports" on the back cover).



                                                      Financial Highlights  | 57
<PAGE>

DWS LifeCompass Retirement Fund - Class S



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                  2008            2007            2006            2005            2004
<S>                                 <C>             <C>             <C>             <C>             <C>
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                             $  12.51        $  12.16        $  11.83        $  11.17       $  10.69
--------------------------------      --------        --------        --------        --------       --------
Income (loss) from
investment operations:
  Net investment income a                  .43             .41             .36             .32            .32
________________________________      ________        ________        ________        ________       ________
  Net realized and unrealized
  gain (loss)                           (  .98)            .57             .33             .71            .51
--------------------------------      --------        --------        --------        --------       --------
  TOTAL FROM INVESTMENT
  OPERATIONS                            (  .55)            .98             .69            1.03            .83
________________________________      ________        ________        ________        ________       ________
Less distributions from:
  Net investment income                 (  .47)         (  .63)         (  .36)         (  .37)        (  .35)
________________________________      ________        ________        ________        ________       ________
Redemption fees                            .00*            .00*            .00*            .00*             -
--------------------------------      --------        --------        --------        --------       --------
NET ASSET VALUE, END OF
PERIOD                                $  11.49        $  12.51        $  12.16        $  11.83       $  11.17
--------------------------------      --------        --------        --------        --------       --------
Total Return (%)b,c                     ( 4.52)           8.18            5.93            9.33           7.86
--------------------------------      --------        --------        --------        --------       --------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                                71              81              80              36             43
________________________________      ________        ________        ________        ________       ________
Ratio of expenses before
expense reductions (%)                  .44e            .48e            .65e            .57e           .23d
________________________________      ________        ________        ________        ________       ________
Ratio of expenses after
expense reductions (%)                  .30e            .37e            .35e            .30e           .13d
________________________________      ________        ________        ________        ________       ________
Ratio of net investment
income (%)                                3.50            3.29            3.00            2.67           2.84
________________________________      ________        ________        ________        ________       ________
Portfolio turnover rate (%)                 48              21              69              55             56
--------------------------------      --------        --------        --------        --------       --------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return would have been lower had certain expenses not been reduced.


c   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



d   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



e   The Fund invests in other Funds, and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.

*   Amount is less than $.005.


58 | Financial Highlights
<PAGE>

DWS LifeCompass 2015 Fund - Class S



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                  2008            2007            2006            2005           2004
<S>                                 <C>             <C>             <C>             <C>             <C>
SELECTED PER SHARE DATA
------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                             $  12.45        $  11.96        $  11.54        $  10.62       $  9.90
--------------------------------      --------        --------        --------        --------       -------
Income (loss) from
investment operations:
  Net investment income a                  .32             .32             .28             .24           .25
________________________________      ________        ________        ________        ________       _______
  Net realized and unrealized
  gain (loss)                           ( 1.19)            .86             .49             .95           .70
--------------------------------      --------        --------        --------        --------       -------
  TOTAL FROM INVESTMENT
  OPERATIONS                            (  .87)           1.18             .77            1.19           .95
________________________________      ________        ________        ________        ________       _______
Less distributions from:
  Net investment income                 (  .47)         (  .69)         (  .35)         (  .27)       (  .23)
________________________________      ________        ________        ________        ________       _______
Redemption fees                            .00*            .00*            .00*            .00*            -
--------------------------------      --------        --------        --------        --------       -------
NET ASSET VALUE, END OF
PERIOD                                $  11.11        $  12.45        $  11.96        $  11.54       $ 10.62
--------------------------------      --------        --------        --------        --------       -------
Total Return (%)b,c                     ( 7.10)           9.97            6.78           11.23          9.70
--------------------------------      --------        --------        --------        --------       -------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                               100             135             142             126           124
________________________________      ________        ________        ________        ________       _______
Ratio of expenses before
expense reductions (%)                  .41e            .40e            .54e            .36e           .23d
________________________________      ________        ________        ________        ________       _______
Ratio of expenses after
expense reductions (%)                  .26e            .35e            .36e            .30e           .12d
________________________________      ________        ________        ________        ________       _______
Ratio of net investment
income (%)                                2.62            2.50            2.39            2.09          2.37
________________________________      ________        ________        ________        ________       _______
Portfolio turnover rate (%)                 29              21              52              35            37
--------------------------------      --------        --------        --------        --------       -------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return would have been lower had certain expenses not been reduced.


c   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



d   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



e   The Fund invests in other Funds, and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.

*   Amount is less than $.005.


                                                      Financial Highlights  | 59
<PAGE>

DWS LifeCompass 2020 Fund - Class S



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                  2008            2007            2006            2005            2004
<S>                                 <C>             <C>             <C>             <C>             <C>
SELECTED PER SHARE DATA
-------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                             $  15.50        $  14.32        $  13.52        $  12.17       $  11.10
--------------------------------      --------        --------        --------        --------       --------
Income (loss) from
investment operations:
  Net investment income a                  .32             .29             .26             .22            .20
________________________________      ________        ________        ________        ________       ________
  Net realized and unrealized
  gain (loss)                           ( 1.54)           1.36             .85            1.36           1.08
--------------------------------      --------        --------        --------        --------       --------
  TOTAL FROM INVESTMENT
  OPERATIONS                            ( 1.22)           1.65            1.11            1.58           1.28
________________________________      ________        ________        ________        ________       ________
Less distributions from:
  Net investment income                 (  .59)         (  .47)         (  .31)         (  .23)        (  .21)
________________________________      ________        ________        ________        ________       ________
Redemption fees                            .00*            .00*            .00*            .00*             -
--------------------------------      --------        --------        --------        --------       --------
NET ASSET VALUE, END OF
PERIOD                                $  13.69        $  15.50        $  14.32        $  13.52       $  12.17
--------------------------------      --------        --------        --------        --------       --------
Total Return (%)b,c                     ( 8.22)          11.60            8.33           13.02          11.50
--------------------------------      --------        --------        --------        --------       --------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                               129             153             154              92             84
________________________________      ________        ________        ________        ________       ________
Ratio of expenses before
expense reductions (%)                  .45e            .48e            .53e            .48e           .25d
________________________________      ________        ________        ________        ________       ________
Ratio of expenses after
expense reductions (%)                  .28e            .37e            .36e            .30e           .12d
________________________________      ________        ________        ________        ________       ________
Ratio of net investment
income (%)                                2.20            1.95            1.84            1.71           1.67
________________________________      ________        ________        ________        ________       ________
Portfolio turnover rate (%)                 31              22              59              31             43
--------------------------------      --------        --------        --------        --------       --------
</TABLE>



a   Based on average shares outstanding during the period.

b   Total return would have been lower had certain expenses not been reduced.


c   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



d   Effective April 1, 2004, the Fund implemented a new expense structure in
   which the Fund directly bears the fees and expenses of the Fund in addition
   to its proportionate share of the fees and expenses incurred by the
   Underlying Funds in which the Fund is invested.



e   The Fund invests in other funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Amount is less than $.005.

60 | Financial Highlights
<PAGE>

DWS LifeCompass 2030 Fund - Class S



<TABLE>
<CAPTION>
YEARS ENDED AUGUST 31,                           2008           2007           2006           2005 a
<S>                                         <C>            <C>            <C>            <C>
SELECTED PER SHARE DATA
----------------------------------------------------------------------------------------          -
NET ASSET VALUE, BEGINNING OF PERIOD          $  12.29       $  11.51       $  10.84       $  10.00
-------------------------------------------   --------       --------       --------       --------
Income (loss) from investment
operations:
  Net investment income b                          .17            .13            .11            .06
___________________________________________   ________       ________       ________       ________
  Net realized and unrealized gain (loss)       ( 1.33)          1.40            .92            .89
-------------------------------------------   --------       --------       --------       --------
  TOTAL FROM INVESTMENT OPERATIONS              ( 1.16)          1.53           1.03            .95
___________________________________________   ________       ________       ________       ________
Less distributions from:
  Net investment income                         (  .41)        (  .32)        (  .26)        (  .11)
___________________________________________   ________       ________       ________       ________
  Net realized gains                            (  .45)        (  .43)        (  .10)             -
-------------------------------------------   --------       --------       --------       --------
  TOTAL DISTRIBUTIONS                           (  .86)        (  .75)        (  .36)        (  .11)
___________________________________________   ________       ________       ________       ________
Redemption fees                                    .00***         .00***         .00***         .00***
-------------------------------------------   --------       --------       --------       --------
NET ASSET VALUE, END OF PERIOD                $  10.27       $  12.29       $  11.51       $  10.84
-------------------------------------------   --------       --------       --------       --------
Total Return (%)c,d                             (10.23)         13.54           9.69           9.49**
-------------------------------------------   --------       --------       --------       --------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------   --------
Net assets, end of period ($ millions)               6              4              3              2
___________________________________________   ________       ________       ________       ________
Ratio of expenses before expense
reductions (%)e                                    .77            .78           1.37           3.22*
___________________________________________   ________       ________       ________       ________
Ratio of expenses after expense
reductions (%)e                                    .21            .30            .33            .30*
___________________________________________   ________       ________       ________       ________
Ratio of net investment income (%)                1.52           1.13           1.02            .71*
___________________________________________   ________       ________       ________       ________
Portfolio turnover rate (%)                         30             20             63             28*
-------------------------------------------   --------       --------       --------       --------
</TABLE>



a   For the period from November 1, 2004 (commencement of sales of Class S
   shares) to August 31, 2005.

b   Based on average shares outstanding during the period.

c   Total return would have been lower had certain expenses not been reduced.


d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.



e   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.


*   Annualized

**   Not annualized

***   Amount is less than $.005.

                                                      Financial Highlights  | 61
<PAGE>


DWS LifeCompass 2040 Fund - Class S




<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,                                      2008 a
<S>                                                   <C>
SELECTED PER SHARE DATA
------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD                    $  10.00
--------------------------------------------------      --------
Income (loss) from investment operations:
  Net investment income b                                    .08
__________________________________________ _______      ________
  Net realized and unrealized gain (loss)                 (  .96)
--------------------------------------------------      --------
  TOTAL FROM INVESTMENT OPERATIONS                        (  .88)
__________________________________________________      ________
Less distributions from:
  Net investment income                                   (  .33)
__________________________________________________      ________
NET ASSET VALUE, END OF PERIOD                          $   8.79
--------------------------------------------------      --------
Total Return (%)c,d                                       ( 9.11)**
--------------------------------------------------      --------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------
Net assets, end of period ($ millions)                         2
__________________________________________________      ________
Ratio of expenses before expense reductions (%)e            6.98*
__________________________________________________      ________
Ratio of expenses after expense reductions (%)e              .24*
__________________________________________________      ________
Ratio of net investment income (%)                          1.11*
__________________________________________________      ________
Portfolio turnover rate (%)                                   17**
--------------------------------------------------      --------
</TABLE>




a   For the period from November 15, 2007 (commencement of operations) to
   August 31, 2008.

b   Based on average shares outstanding during the period.

c   Total return would have been lower had certain expenses not been reduced.

d   Total return would have been lower if the Advisor had not reduced some
   Underlying Funds' expenses.

e   The Fund invests in other Funds and indirectly bears its proportionate
   share of fees and expenses incurred by the Underlying Funds in which the
   Fund is invested. This ratio does not include these indirect fees and
   expenses.

*   Annualized

**   Not annualized


62 | Financial Highlights
<PAGE>


HOW TO INVEST IN THE FUNDS

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

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

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


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

<PAGE>


How to BUY Class S Shares





<TABLE>
<CAPTION>
 FIRST INVESTMENT                              ADDITIONAL INVESTMENTS
<S>                                           <C>
 $2,500 or more for regular accounts           $50 or more for regular accounts and
 $1,000 or more for IRAs and UTMAs/           IRAs
 UGMAs                                        $50 or more for an account with an
 $1,000 or more for an account with an        Automatic Investment Plan
 Automatic Investment Plan
 BY MAIL OR EXPRESS MAIL (SEE BELOW)
                                              Send a DWS Investments investment
 -  Fill out and sign an application
                                              slip or short note that includes:
 -  Send it to us at the appropriate
                                              -  fund and class name
  address, along with an investment
  check made payable to "DWS                  -  account number
  Investments"                                -  check made payable to "DWS
                                              Investments"
 BY WIRE
 -  Call (800) 728-3337 for instructions      -  Call (800) 728-3337 for instructions
 BY PHONE
 Not available                                -  Call (800) 728-3337 for instructions
 WITH AN AUTOMATIC INVESTMENT PLAN
 -  Fill in the information on your           -  To set up regular investments from a
  application including a check for the       bank checking account, call
  initial investment and a voided check       (800) 728-3337 (minimum $50)
 USING QuickBuy
 Not available                                -  Call (800) 728-3337 to make sure
                                              QuickBuy is set up on your account; if
                                              it is, you can request a transfer from
                                              your bank account of any amount
                                              between $50 and $250,000
 ON THE INTERNET
 -  Register at                               -  Call (800) 728-3337 to ensure you have
  www.dws-investments.com or log in if        electronic services
  already registered                          -  Register at www.dws-
 -  Print out a prospectus and a new          investments.com
  account application                         or log in if already registered
 -  Complete and return the application       -  Follow the instructions for buying
  with your check                             shares with money from your bank
                                              account
</TABLE>



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


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

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



64 | How to Buy Class S Shares
<PAGE>


How to EXCHANGE or SELL Class S Shares





<TABLE>
<CAPTION>
 EXCHANGING INTO ANOTHER FUND                    SELLING SHARES
<S>                                             <C>
                                                 Some transactions, including most for
 -  Exchanges into existing accounts:
                                                over $100,000, can only be ordered in
  $50 minimum per fund
                                                writing with a signature guarantee;
 -  Exchanges into new accounts:
                                                please see "Signature Guarantee"
  $2,500 minimum per fund
  $1,000 minimum for IRAs and UTMAs/
  UGMAs
 BY PHONE                                        BY PHONE OR WIRE
 -  Call (800) 728-3337 for instructions        -  Call (800) 728-3337 for instructions
 USING THE AUTOMATED INFORMATION LINE
 -  Call (800) 728-3337 for instructions        -  Call (800) 728-3337 for instructions
 BY MAIL OR EXPRESS MAIL
 (see previous page for address)
 Your instructions should include:              Your instructions should include:
 -  the fund, class and account number          -  the fund, class and account number
  you're exchanging out of                      from which you want to sell shares
 -  the dollar amount or number of shares       -  the dollar amount or number of shares
  you want to exchange                          you want to sell
 -  the name and class of the fund you          -  your name(s), signature(s) and
  want to exchange into                         address, as they appear on your
                                                account
 -  your name(s), signature(s) and
  address, as they appear on your               -  a daytime telephone number
  account
 -  a daytime telephone number
 WITH AN AUTOMATIC EXCHANGE PLAN                 WITH AN AUTOMATIC WITHDRAWAL PLAN
 -  To set up regular exchanges from a          -  To set up regular cash payments from
  fund account, call (800) 728-3337             a DWS fund account, call
                                                (800) 728-3337
 USING QuickSell
 Not available                                  -  Call (800) 728-3337 to make sure
                                                QuickSell is set up on your account; if
                                                it is, you can request a transfer to your
                                                bank account of any amount between
                                                $50 and $250,000
 ON THE INTERNET
 -  Register at www.dws-                        -  Register at www.dws-
  investments.com or log in if already          investments.com or log in if already
  registered                                    registered
 -  Follow the instructions for making on-      -  Follow the instructions for making on-
  line exchanges                                line redemptions
</TABLE>



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


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




                                    How to Sell or Exchange Class S Shares  | 65
<PAGE>

           Financial intermediary support payments


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



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


66 | How to Sell or Exchange Class S Shares
<PAGE>


           The Advisor, the Distributor and/or their affiliates currently make
           revenue sharing payments from their own assets in connection with
           the sale and/or distribution of DWS Fund shares or the retention
           and/or servicing of investors and DWS Fund shares to financial
           advisors in amounts that generally range from .01% up to .50% of
           assets of each fund serviced and maintained by the financial
           advisor, .05% to .25% of sales of each fund attributable to the
           financial advisor, a flat fee of $13,350 up to $500,000, or any
           combination thereof. These amounts are subject to change at the
           discretion of the Advisor, the Distributor and/or their affiliates.
           Receipt of, or the prospect of receiving, this additional
           compensation may influence your financial advisor's recommendation
           of each fund or of any particular share class of each fund. You
           should review your financial advisor's compensation disclosure
           and/or talk to your financial advisor to obtain more information on
           how this compensation may have influenced your financial advisor's
           recommendation of each fund. Additional information regarding these
           revenue sharing payments is included in each fund's Statement of
           Additional Information, which is available to you on request at no
           charge (see the back cover of this prospectus for more information
           on how to request a copy of the Statement of Additional
           Information).

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


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


                                    How to Sell or Exchange Class S Shares  | 67
<PAGE>

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


POLICIES YOU SHOULD KNOW ABOUT


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


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

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

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


           Policies about transactions


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




THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

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



68 | Policies You Should Know About
<PAGE>

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

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

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

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

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

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

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


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



                                            Policies You Should Know About  | 69
<PAGE>

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


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

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


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


70 | Policies You Should Know About
<PAGE>


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

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



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



                                            Policies You Should Know About  | 71
<PAGE>


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


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


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


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

           There is no assurance that these policies and procedures will be
           effective in limiting short-term and excessive trading in all cases.
           For example, the Advisor may not be able to effectively monitor,
           detect or limit short-term or excessive trading by underlying
           shareholders that occurs through omnibus accounts maintained by
           broker-dealers or other financial intermediaries. The Advisor


72 | Policies You Should Know About
<PAGE>

           reviews trading activity at the omnibus level to detect short-term
           or excessive trading. If the Advisor has reason to suspect that
           short-term or excessive trading is occurring at the omnibus level,
           the Advisor will contact the financial intermediary to request
           underlying shareholder level activity. Depending on the amount of
           fund shares held in such omnibus accounts (which may represent most
           of a fund's shares) short-term and/or excessive trading of fund
           shares could adversely affect long-term shareholders in a fund. If
           short-term or excessive trading is identified, the Advisor will take
           appropriate action.


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

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

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


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

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



THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

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


                                            Policies You Should Know About  | 73
<PAGE>

           EACH FUND DOES NOT ISSUE SHARE CERTIFICATES. However, if you
           currently have shares in certificated form, you must include the
           share certificates properly endorsed or accompanied by a duly
           executed stock power when exchanging or redeeming shares. You may
           not exchange or redeem shares in certificate form by telephone or
           via the Internet.

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


           EACH FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by a check
           drawn on a US bank, a bank or Federal Funds wire transfer or an
           electronic bank transfer. Each fund does not accept third party
           checks. A third party check is a check made payable to one or more
           parties and offered as payment to one or more other parties (e.g., a
           check made payable to you that you offer as payment to someone
           else). Checks should normally be payable to DWS Investments and
           drawn by you or a financial institution on your behalf with your
           name or account number included with the check.


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

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

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


THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

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


74 | Policies You Should Know About
<PAGE>


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


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


           How each fund calculates share price

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


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



           The price at which you buy and sell shares is based on the NAV per
           share next calculated after the order is received by the transfer
           agent.

           WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN
           INDEPENDENT PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE.
           However, we may use methods approved by a fund's Board, such as a
           fair valuation model, which are intended to reflect fair value when
           pricing service information or market



                                            Policies You Should Know About  | 75
<PAGE>

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


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



           Other rights we reserve

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

           -  withdraw or suspend the offering of shares at any time


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


76 | Policies You Should Know About
<PAGE>

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

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


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

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


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


UNDERSTANDING DISTRIBUTIONS AND TAXES


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






THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

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



                                     Understanding Distributions and Taxes  | 77
<PAGE>


           DWS LifeCompass Retirement Fund and DWS LifeCompass 2015 Fund each
           intend to pay dividends and distributions from net investment income
           to their shareholders quarterly, in March, June, September and
           December, and dividends and distributions of net short-term and
           long-term capital gains to their shareholders annually in December.
           DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS
           LifeCompass 2040 Fund each intend to pay dividends and distributions
           annually in December. If necessary, each fund may do so at other
           times as well.

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

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

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


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


78 | Understanding Distributions and Taxes
<PAGE>


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



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



           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY A FUND OR AN
           UNDERLYING FUND MAY BE SUBJECT TO FOREIGN WITHHOLDING TAXES. In that
           case, a fund's yield on those securities would generally be
           decreased. Shareholders of the fund generally will not be entitled
           to a credit or deduction with respect to foreign taxes paid by the
           fund or the underlying funds. In addition, any investments in
           foreign securities or foreign currencies may increase or accelerate
           a fund's recognition of ordinary income and may affect the timing or
           amount of the fund's distributions. If you invest in a fund through
           a taxable account, your after-tax return could be negatively
           impacted.

           Investments in certain debt obligations or other securities may
           cause a fund to recognize taxable income in excess of the cash
           generated by them. Thus, a fund could be required at times to
           liquidate other investments in order to satisfy its distribution
           requirements.

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



                                     Understanding Distributions and Taxes  | 79
<PAGE>


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

           For taxable years beginning before January 1, 2011, the maximum
           federal income tax rate imposed on long-term capital gains
           recognized by individuals and other noncorporate shareholders has
           been temporarily reduced to 15%, in general, with lower rates
           applying to taxpayers in the 10% and 15% rate brackets. For taxable
           years beginning on or after January 1, 2011, the maximum long-term
           capital gain rate is scheduled to return to 20%.


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


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

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

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


           FUND-OF-FUNDS STRUCTURE. The fund's use of a fund-of-funds structure
           may affect the amount, timing and type of distributions from the
           fund, which may increase the amount of taxes payable by
           shareholders.



80 | Understanding Distributions and Taxes
<PAGE>

           If the fund receives dividends from an underlying fund that
           qualifies as a regulated investment company and the underlying fund
           designates such dividends as qualified dividend income, then the
           fund may in turn designate that portion of its distributions derived
           from those dividends as qualified dividend income as well, provided
           the fund meets the holding period and other requirements with
           respect to shares of the underlying fund.


                                     Understanding Distributions and Taxes  | 81
<PAGE>

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



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


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


82 | Appendix
<PAGE>

DWS LifeCompass Retirement Fund - Class S




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.05%              3.95%       $ 10,395.00        $   107.07
   2           10.25%        1.05%              8.06%       $ 10,805.60        $   111.30
   3           15.76%        1.05%             12.32%       $ 11,232.42        $   115.70
   4           21.55%        1.05%             16.76%       $ 11,676.10        $   120.27
   5           27.63%        1.05%             21.37%       $ 12,137.31        $   125.02
   6           34.01%        1.05%             26.17%       $ 12,616.73        $   129.96
   7           40.71%        1.05%             31.15%       $ 13,115.10        $   135.09
   8           47.75%        1.05%             36.33%       $ 13,633.14        $   140.43
   9           55.13%        1.05%             41.72%       $ 14,171.65        $   145.98
  10           62.89%        1.05%             47.31%       $ 14,731.43        $   151.74
  TOTAL                                                                        $ 1,282.56
</TABLE>



DWS LifeCompass 2015 Fund - Class S





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER        ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND         FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.02%              3.98%       $ 10,398.00        $   104.03
   2           10.25%        1.02%              8.12%       $ 10,811.84        $   108.17
   3           15.76%        1.02%             12.42%       $ 11,242.15        $   112.48
   4           21.55%        1.02%             16.90%       $ 11,689.59        $   116.95
   5           27.63%        1.02%             21.55%       $ 12,154.83        $   121.61
   6           34.01%        1.02%             26.39%       $ 12,638.60        $   126.45
   7           40.71%        1.02%             31.42%       $ 13,141.61        $   131.48
   8           47.75%        1.02%             36.65%       $ 13,664.65        $   136.71
   9           55.13%        1.02%             42.09%       $ 14,208.50        $   142.15
  10           62.89%        1.02%             47.74%       $ 14,774.00        $   147.81
  TOTAL                                                                        $ 1,247.84
</TABLE>




                                                                  Appendix  | 83
<PAGE>

DWS LifeCompass 2020 Fund - Class S




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                 ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                      OF RETURN:
               0.00%                   $10,000                            5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER      ANNUAL FEES
              FEES AND        EXPENSE        FEES AND           FEES AND            AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES         EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        1.06%              3.94%       $ 10,394.00        $   108.09
   2           10.25%        1.06%              8.04%       $ 10,803.52        $   112.35
   3           15.76%        1.06%             12.29%       $ 11,229.18        $   116.77
   4           21.55%        1.06%             16.72%       $ 11,671.61        $   121.37
   5           27.63%        1.06%             21.31%       $ 12,131.47        $   126.16
   6           34.01%        1.06%             26.09%       $ 12,609.45        $   131.13
   7           40.71%        1.06%             31.06%       $ 13,106.27        $   136.29
   8           47.75%        1.06%             36.23%       $ 13,622.65        $   141.66
   9           55.13%        1.06%             41.59%       $ 14,159.39        $   147.24
  10           62.89%        1.06%             47.17%       $ 14,717.27        $   153.05
  TOTAL                                                                        $ 1,294.11
</TABLE>



DWS LifeCompass 2030 Fund - Class S





<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                  ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                       OF RETURN:
               0.00%                   $10,000                             5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER         ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND          FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES          EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        0.85%              4.15%       $ 10,415.00        $    86.76
   2           10.25%        1.42%              7.88%       $ 10,787.86        $   150.54
   3           15.76%        1.42%             11.74%       $ 11,174.06        $   155.93
   4           21.55%        1.42%             15.74%       $ 11,574.09        $   161.51
   5           27.63%        1.42%             19.88%       $ 11,988.45        $   167.29
   6           34.01%        1.42%             24.18%       $ 12,417.63        $   173.28
   7           40.71%        1.42%             28.62%       $ 12,862.18        $   179.49
   8           47.75%        1.42%             33.23%       $ 13,322.65        $   185.91
   9           55.13%        1.42%             38.00%       $ 13,799.60        $   192.57
  10           62.89%        1.42%             42.94%       $ 14,293.63        $   199.46
  TOTAL                                                                        $ 1,652.74
</TABLE>




84 | Appendix
<PAGE>

DWS LifeCompass 2040 Fund - Class S




<TABLE>
<CAPTION>
              MAXIMUM           INITIAL HYPOTHETICAL                  ASSUMED RATE
           SALES CHARGE:             INVESTMENT:                       OF RETURN:
               0.00%                   $10,000                             5%
                                                              HYPOTHETICAL
             CUMULATIVE        ANNUAL       CUMULATIVE          YEAR-END
           RETURN BEFORE        FUND       RETURN AFTER      BALANCE AFTER         ANNUAL
              FEES AND        EXPENSE        FEES AND           FEES AND          FEES AND
YEAR          EXPENSES         RATIOS        EXPENSES           EXPENSES          EXPENSES
<S>       <C>                <C>          <C>               <C>                <C>
   1            5.00%        0.91%              4.09%       $ 10,409.00        $    92.86
   2           10.25%        5.32%              3.76%       $ 10,375.69        $   552.87
   3           15.76%        5.32%              3.42%       $ 10,342.49        $   551.10
   4           21.55%        5.32%              3.09%       $ 10,309.39        $   549.34
   5           27.63%        5.32%              2.76%       $ 10,276.40        $   547.58
   6           34.01%        5.32%              2.44%       $ 10,243.52        $   545.83
   7           40.71%        5.32%              2.11%       $ 10,210.74        $   544.08
   8           47.75%        5.32%              1.78%       $ 10,178.06        $   542.34
   9           55.13%        5.32%              1.45%       $ 10,145.50        $   540.61
  10           62.89%        5.32%              1.13%       $ 10,113.03        $   538.88
  TOTAL                                                                        $ 5,005.49
</TABLE>




                                                                  Appendix  | 85
<PAGE>

TO GET MORE INFORMATION

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

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


For a free copy of any of these documents or to request other information about
a fund, call (800) 728-3337, or contact DWS Investments at the address listed
below. Each fund's SAI and shareholder reports are also available through the
DWS Investments Web site at www.dws-investments.com. These documents and other
information about each fund are available from the EDGAR Database on the SEC's
Internet site at www.sec.gov. If you like, you may obtain copies of this
information, after paying a copying fee, by e-mailing a request to
publicinfo@sec.gov or by writing the SEC at the address listed below. You can
also review and copy these documents and other information about each fund,
including each fund's SAI, at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the SEC's Public Reference Room may be
obtained by calling (800) SEC-0330.




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




<TABLE>
<S>                         <C>                                  <C>
SEC FILE NUMBER:
DWS Target Date Series      DWS LifeCompass Retirement Fund      811-8606
DWS Target Date Series            DWS LifeCompass 2015 Fund      811-8606
DWS Target Date Series            DWS LifeCompass 2020 Fund      811-8606
DWS Target Date Series            DWS LifeCompass 2030 Fund      811-8606
DWS Target Date Series            DWS LifeCompass 2040 Fund      811-8606
</TABLE>







(12/01/08) 80/81/82/84-2    [RECYCLE GRAPHIC APPEARS HERE]
                                                                       [Logo]DWS
                                                                      INVESTMENT
                                                             Deutsche Bank Group


<PAGE>


                             DWS TARGET DATE SERIES






                         DWS LifeCompass Retirement Fund

                          Class A, Class B and Class C

                            DWS LifeCompass 2015 Fund

                          Class A, Class B and Class C

                            DWS LifeCompass 2020 Fund

                          Class A, Class B and Class C

                            DWS LifeCompass 2030 Fund

                          Class A, Class B and Class C

                            DWS LifeCompass 2040 Fund
                               Class A and Class C



                       STATEMENT OF ADDITIONAL INFORMATION


                                December 1, 2008

This combined Statement of Additional Information ("SAI") is not a prospectus
and should be read in conjunction with the combined prospectus (the
"Prospectus") dated December 1, 2008, for Class A, Class B and Class C shares
(the "Shares"), as amended from time to time, for DWS LifeCompass Retirement
Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030
Fund and DWS LifeCompass 2040 Fund (each a "Fund" and collectively the "Funds"),
each a series of DWS Target Date Series (the "Trust"), copies of which may be
obtained without charge by contacting DWS Investments Distributors, Inc., 222
South Riverside Plaza, Chicago, Illinois 60606, or calling (800) 621-1148, or
from the firm from which this SAI was obtained and are available along with
other materials on the Securities and Exchange Commission's ("SEC") Internet Web
site (http://www.sec.gov).

Portions of the Annual Report to Shareholders of each Fund, dated August 31,
2008, are incorporated herein by reference and are deemed to be part of this SAI
as specified herein. A copy of each Fund's Annual Report may be obtained without
charge by calling the Fund at the toll-free number (800) 621-1048.

This SAI is incorporated by reference into the Prospectus for each applicable
class of shares of the Funds.


                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                  Page
                                                                                  ----

<S>                                                                                <C>
INVESTMENT RESTRICTIONS.............................................................1

INVESTMENT POLICIES AND TECHNIQUES FOR THE FUNDS....................................2


INVESTMENT POLICIES AND TECHNIQUES OF THE UNDERLYING DWS FUNDS.....................14
   Portfolio Holdings .............................................................66

MANAGEMENT OF THE FUNDS............................................................68
   Investment Advisor..............................................................68

FUND SERVICE PROVIDERS.............................................................93
   Administrator...................................................................93
   Principal Underwriter...........................................................94
   Custodian......................................................................100
   Transfer Agent and Shareholder Service Agent...................................100
   Legal Counsel..................................................................102
   Independent Registered Public Accounting Firm and Reports to Shareholders......102

PORTFOLIO TRANSACTIONS............................................................102

PURCHASE OR REDEMPTION OF SHARES..................................................107

DIVIDENDS.........................................................................127

TAXES.............................................................................128

NET ASSET VALUE...................................................................138

TRUSTEES AND OFFICERS.............................................................138

TRUST ORGANIZATION................................................................163

PROXY VOTING GUIDELINES...........................................................165

FINANCIAL STATEMENTS..............................................................166

ADDITIONAL INFORMATION............................................................166

APPENDIX A -- PROXY VOTING GUIDELINES.............................................169

APPENDIX B -- RATINGS OF INVESTMENTS..............................................193
</TABLE>




                             INVESTMENT RESTRICTIONS

Except as otherwise indicated, each Fund's investment objective and policies are
not fundamental and may be changed without a vote of shareholders. There can be
no assurance that a Fund's objective will be met.

Any investment restrictions herein which involve a maximum percentage of
securities or assets shall not be considered to be violated unless an excess
over the percentage occurs immediately after, and is caused by, an acquisition
or encumbrance of securities or assets of, or borrowings by, a Fund.


Each Fund has elected to be classified as a diversified series of an open-end
investment management company. A diversified fund may not, with respect to 75%
of total assets, invest more than 5% of total assets in the securities of a
single issuer (other than US government securities or securities of investment
companies) or invest in more than 10% of the outstanding voting securities of
such issuer.

Fundamental Restrictions


As a matter of fundamental policy, each Fund may not:

(1)      borrow money, except as permitted under the Investment Company Act of
         1940 (the "1940 Act"), as amended, and as interpreted or modified by
         regulatory authority having jurisdiction, from time to time;

(2)      issue senior securities, except as permitted under the 1940 Act, as
         amended, and as interpreted or modified by regulatory authority having
         jurisdiction, from time to time;

(3)      engage in the business of underwriting securities issued by others,
         except to the extent that a Fund may be deemed to be an underwriter in
         connection with the disposition of portfolio securities;

(4)      concentrate its investments in a particular industry, as that term is
         used in the 1940 Act, as amended, and as interpreted or modified by
         regulatory authority having jurisdiction, from time to time; except
         that each Fund may concentrate in an Underlying DWS Fund. However, each
         underlying DWS Fund in which each Fund will invest may concentrate its
         investments in a particular industry;

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

(6)      purchase or sell commodities, except as permitted by the 1940 Act, as
         amended, and as interpreted or modified by the regulatory authority
         having jurisdiction, from time to time; or

(7)      make loans except as permitted under the 1940 Act, as amended, and as
         interpreted or modified by regulatory authority having jurisdiction,
         from time to time.

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


Non-Fundamental Restrictions


The Trustees of the Trust have voluntarily adopted certain policies and
restrictions, which are observed in the conduct of each Fund's affairs. These
represent intentions of the Trustees based upon current circumstances. Such
non-fundamental policies may be changed or amended by the Trustees of the Trust
without prior notice to or approval of shareholders.

As a matter of non-fundamental policy, each Fund currently does not intend to:

(a)      invest in companies for the purpose of exercising management or
         control;

(b)      borrow money in an amount greater than 5% of its total assets except
         (i) for temporary or emergency purposes and (ii) by engaging in reverse
         repurchase agreements, dollar rolls, or other investments or
         transactions described in a Fund's registration statement which may be
         deemed to be borrowings;

The Funds will not purchase illiquid securities, including time deposits and
repurchase agreements maturing in more than seven days if, as a result thereof,
more than 10% of a Fund's net assets valued at the time of the transaction would
be invested in such securities.

To meet federal tax requirements for qualification as a regulated investment
company, each Fund must limit its investments so that at the close of each
quarter of its taxable year (1) no more than 25% of its total assets are
invested in the securities (other than US Government securities or securities of
a regulated investment company) of (a) a single issuer or two or more issuers
which the Fund controls and which are engaged in the same, similar or related
trades or businesses, or (b) in the securities of one or more qualified publicly
traded partnerships (as discussed in "Taxes" below), and (2) at least 50% of its
total assets is represented by cash, government securities, securities of other
regulated investment companies, and other securities of any issuer that does not
represent more than 5% of the Fund's assets or more than 10% of the issuer's
outstanding voting securities.

                INVESTMENT POLICIES AND TECHNIQUES FOR THE FUNDS

General Investment Objectives and Policies

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

The Funds are professionally managed portfolios which allocate their investments
among select funds in the DWS Family of Funds (the "Underlying DWS Funds") and
securities of non-affiliated investment companies (e.g., Exchange Traded Funds).
Descriptions in this Statement of Additional Information of a particular
investment practice or technique in which the Underlying DWS Funds may engage
(such as short selling, hedging, etc.) or a financial instrument which the
Underlying DWS Funds may purchase (such as options, etc.) are meant to describe
the spectrum of investments that the Advisor in its discretion, might, but is
not required to, use in managing a fund's assets. The Advisor may, in its
discretion, at any time employ such practice, technique or instrument for one or
more funds, but not for all funds advised by it. Furthermore, it is possible
that certain types of financial instruments or investment techniques described
herein may not be available, permissible, economically feasible or effective for
their intended purposes in all markets. Certain practices, techniques, or
instruments may not be principal activities of a fund, but, to the extent
employed, could from time to time have a material impact on a fund's
performance. It is possible that certain investment practices and techniques
described below may not be permissible for a Fund based on its investment
restrictions, as described herein, and in the Fund's applicable Prospectus.

The Funds may each borrow money for temporary, emergency or other purposes,
including investment leverage purposes, as determined by the Trustees. The 1940
Act requires borrowings to have 300% asset coverage. The Funds may each also
enter into reverse repurchase agreements.

Exchange Traded Funds. In addition to investing in DWS Funds, the Funds may
invest in Exchange Traded Funds ("ETFs") up to the maximum amount allowable
under the 1940 Act, when the desired economic exposure to a particular market or
sector is not available through a DWS Fund. ETFs are typically open-end
investment companies, unit investment trusts or depositary receipts, listed on a
stock exchange. The Funds might do so as a way of gaining exposure to the
segment of the equity or fixed-income markets represented by the ETFs'
portfolio. Each Fund will indirectly bear its proportionate share of any
management or other fees by an ETF in which it invests.

For example, a Fund may invest in a variety of ETFs which seek to track the
composition and performance of specific indexes or a specific portion of an
index. These index-based investments hold substantially all of their assets in
securities representing their specific index. Accordingly, the main risk of
investing in index-based investments is the same as investing in a portfolio of
equity securities comprising the index. The market prices of index-based
investments will fluctuate in accordance with both changes in the market value
of their underlying portfolio securities and due to supply and demand for the
instruments on the exchanges on which they are traded (which may result in their
trading at a discount or premium to their NAVs). Index-based investments may not
replicate exactly the performance of their specified index because of
transaction costs and because of the temporary unavailability of certain
component securities of the index. In addition, an index-based investment
tracking a specific sector may be adversely affected by the performance of that
specific sector or group of industries on which it is based.

Examples of index-based ETFs include:

SPDRs(R): SPDRs, an acronym for "Standard & Poor's Depositary Receipts," are
based on the S&P 500 Composite Stock Price Index. They are issued by the SPDR
Trust, a unit investment trust that holds shares of substantially all the
companies in the S&P 500 Index in substantially the same weighting and seeks to
closely track the price performance and dividend yield of the Index.

MidCap SPDRs(R): MidCap SPDRs are based on the S&P MidCap 400 Index. They are
issued by the MidCap SPDR Trust, a unit investment trust that holds a portfolio
of securities consisting of substantially all of the common stocks in the S&P
MidCap 400 Index in substantially the same weighting and seeks to closely track
the price performance and dividend yield of the Index.

Select Sector SPDRs(R): Select Sector SPDRs are based on a particular sector or
group of industries that are represented by a specified Select Sector Index
within the Standard & Poor's Composite Stock Price Index. They are issued by The
Select Sector SPDR Trust, an open-end management investment company with nine
portfolios that each seeks to closely track the price performance and dividend
yield of a particular Select Sector Index.

DIAMONDS(SM): DIAMONDS are based on the Dow Jones Industrial Average(SM). They
are issued by the DIAMONDS Trust, a unit investment trust that holds a portfolio
of all the component common stocks of the Dow Jones Industrial Average and seeks
to closely track the price performance and dividend yield of the Dow.

Nasdaq-100 Shares: Nasdaq-100 Shares are based on the Nasdaq 100 Index. They are
issued by the Nasdaq-100 Trust, a unit investment trust that holds a portfolio
consisting of substantially all of the securities, in substantially the same
weighting, as the component stocks of the Nasdaq-100 Index and seeks to closely
track the price performance and dividend yield of the Index.

In addition, each Fund may allocate cash balances for cash management purposes
or as part of its investment strategy among affiliated funds including money
market funds, short-term bond funds and Cash Management QP Trust or one or more
affiliated entities as described below.


Investment of Uninvested Cash Balances. The Funds may each have cash balances
that have not been invested in portfolio securities, as appropriate, or in the
underlying portfolios ("Uninvested Cash"). Uninvested Cash may result from a
variety of sources, including dividends or interest received from investments,
reserves held for investment strategy purposes, liquidation of investment
securities to meet anticipated redemptions and dividend payments, and new cash
received from investors. In addition, the Funds may invest a portion of their
assets in money market securities or other short term obligations as part of
their investment strategy. Pursuant to an Exemptive Order issued by the SEC,
each Fund may use Uninvested Cash to purchase shares of affiliated funds
including money market funds, short-term bond funds and Cash Management QP Trust
or one or more future entities for which DIMA acts as trustee or investment
advisor that operate as cash management investment vehicles and that are
excluded from the definition of investment company pursuant to Section 3(c)(1)
or 3(c)(7) of the 1940 Act (collectively, the "Central Funds") in excess of the
limitations of Section 12(d)(1) of the 1940 Act. Investment by each Fund in
shares of the Central Funds will be in accordance with Fund's investment
policies and restrictions as set forth in its registration statement.


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

Each Fund will invest Uninvested Cash in Central Funds only to the extent that
each Fund's aggregate direct investment in the Central Funds does not exceed 25%
of its total assets in shares of the Central Funds, which would not include
investments in the Central Funds that may be made by underlying portfolios in
which the Funds invest. Purchase and sales of shares of Central Funds are made
at net asset value.



The Underlying DWS Funds

Each Fund will purchase or sell shares in the Underlying DWS Funds to: (a)
accommodate purchases and sales of the Fund's shares, (b) change the percentages
of the Fund's assets invested in each of the Underlying DWS Funds in response to
changing market conditions, and (c) maintain or modify the allocation of the
Fund's assets in accordance with the Fund's target date.

The managers will allocate Fund assets among Underlying DWS Funds based on the
Fund's target investment horizon, current or expected market conditions or to
manage risk. The Underlying DWS Funds have been selected to represent a broad
spectrum of investment options for the Funds.

Risk Factors of Underlying DWS Funds


In pursuing their investment objectives, each of the Underlying DWS Funds is
permitted to engage in investment strategies in a wide range of investment
techniques. The Underlying DWS Funds' risks are determined by the nature of the
securities held and the portfolio management strategies used by the Advisor.
Further information about the Underlying DWS Funds is contained in the
prospectuses and statements of additional information of such funds. Because
each Fund invests in certain of the Underlying DWS Funds, shareholders of each
Fund will be affected by the portfolio management strategies and investment
policies of the Underlying DWS Funds in direct proportion to the amount of
assets the Fund allocates to each Underlying DWS Fund.


The following are the Underlying DWS Funds in which the Funds may invest.


DWS Blue Chip Fund. The fund seeks growth of capital and of income. Under normal
circumstances, the fund invests at least 80% of net assets, plus the amount of
any borrowings for investment purposes, in common stocks of large US companies
that are similar in size to the companies in the S&P 500 Index and that the
portfolio managers consider to be "blue chip" companies. Blue chip companies are
large, well-known companies that typically have an established earnings and
dividends history, easy access to credit, solid positions in their industry and
strong management.

DWS Capital Growth Fund. The fund seeks to provide long-term growth of capital.
The fund normally invests at least 65% of total assets in equities, mainly
common stocks of US companies. Although the fund can invest in companies of any
size, it generally focuses on established companies that are similar in size to
the companies in the Standard & Poor's 500 Composite Stock Price Index (the "S&P
500 Index") or the Russell 1000(R) Growth Index. Although the fund may invest in
companies of any size, the fund intends to invest primarily in companies whose
market capitalizations fall within the range of the S&P 500 Index or the Russell
1000(R) Growth Index.

DWS Commodity Securities Fund. The fund's investment objective is capital
appreciation. The fund seeks to achieve its investment objective by focusing on
commodity-related securities and equity-related securities, including
commodity-related structured notes and similar instruments, that the advisor
believes are undervalued but have favorable prospects for appreciation.

DWS Disciplined Market Neutral Fund. The fund seeks capital appreciation
independent of stock market direction. It pursues its objective by investing,
under normal circumstances, in long and short positions of common stock of large
US companies. The managers buy, or take, long positions in common stock that the
managers believe are undervalued and sell, or take, short positions in common
stock that the managers believe are overvalued.

DWS Disciplined Long/Short Growth Fund. The fund seeks capital appreciation. The
fund intends to hold approximately 80%-130% of its net assets in long positions
in stocks that the portfolio managers believe will outperform the market and
approximately 0%-30% of its net assets in short positions in stocks that the
portfolio managers believe will underperform the market. In addition, the fund
intends to borrow up to 30% of its net assets for investment purposes.

DWS Disciplined Long/Short Value Fund. The fund seeks capital appreciation. The
fund intends to hold approximately 80%-130% of its net assets in long positions
in stocks that the portfolio managers believe will outperform the market and
approximately 0%-30% of its net assets in short positions in stocks that the
portfolio managers believe will underperform the market. In addition, the fund
intends to borrow up to 30% of its net assets for investment purposes.

DWS Emerging Markets Equity Fund. The fund seeks long-term growth of capital.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in emerging market
equities (equities traded mainly in emerging markets or issued by companies that
are organized in emerging markets or have more than half of their business
there). The fund invests primarily in common stocks. The fund may invest up to
20% of net assets in equities from the US or other developed markets. The fund
may also invest up to 20% of net assets in US or emerging market debt securities
when portfolio management believes these securities may perform at least as well
as equities.

DWS Emerging Markets Fixed Income Fund. The fund seeks to provide high current
income and, secondarily, long-term capital appreciation. Under normal
circumstances, the fund invests at least 80% of net assets, plus the amount of
any borrowings for investment purposes, in high yield bonds (also known as "junk
bonds") and other debt securities issued by governments and corporations in
emerging market countries (i.e., the issuer is traded mainly in an emerging
market, is organized under the laws of an emerging market country or is a
company with more than half of its business in emerging markets) or the return
on which is derived primarily from emerging markets. To help manage risk, the
fund invests at least 50% of total assets in US dollar-denominated securities.
The fund also does not invest more than 40% of total assets in any one country.
The fund may invest up to 20% of net assets in debt securities from developed
markets and up to 20% of net assets in US debt securities including those that
are rated below investment-grade.


DWS Equity 500 Index Fund. The fund seeks to replicate, as closely as possible,
before the deduction of expenses, the performance of the Standard & Poor's 500
Composite Stock Price Index (the "S&P 500 Index"), which emphasizes stocks of
large US companies. The fund invests for capital appreciation, not income; any
dividend and interest income is incidental to the pursuit of its objective. The
fund is a feeder fund in a master/feeder fund arrangement. The fund pursues its
investment objective by investing all of its assets in a master portfolio, DWS
Equity 500 Index Portfolio, with the same investment objective as the fund.
Under normal circumstances, the fund through DWS Equity 500 Index Portfolio
intends to invest at least 80% of its assets, determined at the time of
purchase, in stocks of companies included in the S&P 500 Index and in derivative
instruments, such as futures contracts and options, that provide exposure to the
stocks of companies in the S&P 500 Index.




DWS Communications Fund. The fund seeks to maximize total return. Under normal
circumstances, the fund will invest at least 80% of its net assets, plus the
amount of any borrowings for investment purposes (measured at the time of
investment), in securities of companies in the communications field. The fund
normally focuses on the securities of US and foreign companies that are engaged
in the research, development, manufacture or sale of communications services,
technology, equipment or products.

DWS Core Fixed Income Fund. The fund seeks to maximize total return consistent
with preservation of capital and prudent investment management, by investing for
both current income and capital appreciation. Under normal circumstances, the
fund invests at least 80% of its assets, determined at the time of purchase, in
fixed income securities. Fixed income securities include those of the US
Treasury, as well as US government agencies and instrumentalities, corporate,
mortgage-backed and asset-backed securities, taxable municipal and tax-exempt
municipal bonds and liquid Rule 144A securities.

DWS Floating Rate Plus Fund. The fund seeks to provide high current income. The
fund invests, under normal circumstances, at least 80% of its total assets in
adjustable rate loans that have a senior right to payment ("Senior Loans") and
other floating rate debt securities. The fund may acquire senior loans of
borrowers engaged in any industry, but will invest no more than 25% of its total
assets in senior loans of borrowers and securities of issuers in any one
industry. Under normal market conditions, up to 20% of the fund's total assets
may be held in cash and other investments, including, but not limited to,
fixed-rate debt obligations, short- to medium-term notes, high-yield securities,
equity securities, hybrid and synthetic loans, collateralized loan obligations,
and asset backed securities.

DWS Global Thematic Fund. The fund seeks long-term growth of capital. The fund
invests at least 65% of its total assets in US and foreign equities (equities
issued by US and foreign-based companies). Most of the fund's equities are
common stocks. Although the fund can invest in companies of any size and from
any country, it invests mainly in common stocks of established companies in
countries with developed economies.

DWS Global Bond Fund. The fund seeks total return, with an emphasis on current
income; capital appreciation is a secondary goal. Under normal circumstances,
the fund invests at least 80% of net assets, plus the amount of any borrowings
for investment purposes, in bonds of issuers from around the world, including
the United States. The fund can buy many types of income-producing securities,
among them US and foreign government bonds, corporate bonds and mortgage- and
asset-backed securities.

DWS Global Opportunities Fund. The fund seeks above-average capital appreciation
over the long term. The fund invests at least 65% of total assets in common
stocks and other equities of small companies throughout the world (companies
with market values similar to the smallest 20% of the Citigroup Broad Market
Index). While the fund may invest in securities in any country, it generally
focuses on countries with developed economies (including the US). As of December
31, 2007, companies in which the fund invests typically have a market
capitalization of between $500 million and $5 billion at the time of purchase.
As part of the investment process (and low turnover strategy) the fund may own
stocks even though they exceed the market capitalization level. The fund may
invest up to 35% of total assets in common stocks and other equities of large
companies or in debt securities (of which 5% of net assets may be junk bonds,
i.e., grade BB/Ba and below).

DWS GNMA Fund. The fund seeks to produce a high level of income. It does this by
investing, under normal circumstances, at least 80% of net assets, plus the
amount of any borrowings for investment purposes, in "Ginnie Maes," which are
mortgage-backed securities that are issued or guaranteed by the Government
National Mortgage Association (GNMA). The balance of the fund's assets, among
other permitted investments, may be invested in securities issued by the US
government, its agencies or instrumentalities. These securities may not be
guaranteed by the US Treasury or backed by the full faith and credit of the US
government. The fund may also hold up to 10% of its total net assets in
uninvested cash, cash equivalents (such as money market securities), repurchase
agreements or shares of money market funds or short-term bond funds, which
investments may not be issued or guaranteed by the US government, its agencies
or instrumentalities.

DWS Gold & Precious Metals Fund. The fund seeks maximum return (principal change
and income). The fund invests at least 80% of net assets, plus the amount of any
borrowings for investment purposes, in common stocks and other equities of US
and foreign companies engaged in activities related to gold, silver, platinum or
other precious metals, and in gold coin and bullion directly. These companies
may be involved in activities such as exploration, mining, fabrication,
processing and distribution. While the fund invest mainly in common stocks, it
may invest up to 20% of net assets in high-quality debt securities of companies
in precious metals and minerals operations, and debt securities whose return is
linked to precious metals prices.

DWS Europe Equity Fund. The fund seeks long-term growth of capital. Under normal
circumstances, the fund invests at least 80% of its total assets in European
common stocks and other equities (equities that are traded mainly on European
markets or are issued by companies organized under the laws of Europe or do more
than half of their business there). Although the fund may invest in equities of
any size or European country, it tends to focus on common stocks of
multinational companies in industrialized Western and Southern European
countries such as France, Italy, Germany, the Netherlands and the United
Kingdom. The fund may invest up to 20% of its total assets in European debt
securities, including junk bonds (i.e., grade BB and below).


DWS Growth & Income Fund. The fund seeks long-term growth of capital, current
income and growth of income. The fund invests at least 65% of total assets in
equities, mainly common stocks. Although the fund can invest in companies of any
size and from any country, it invests primarily in large US companies.


DWS Health Care Fund. The fund seeks long-term growth of capital by investing,
under normal circumstances, at least 80% of total assets, plus the amount of any
borrowings for investment purposes, in common stocks of companies in the health
care sector. For purposes of the fund's 80% investment policy, to be considered
part of the health care sector, companies must commit at least half of their
assets to, or derive at least half of their revenues or net income from, that
sector. The industries in the health care sector include pharmaceuticals,
biotechnology, medical products and supplies, and health care services. The
companies may be of any size. The fund will invest primarily in securities of US
companies, but may invest in foreign companies as well. While the fund invests
mainly in common stocks, it may also invest up to 20% of total assets in US
Treasury and agency debt obligations.

DWS High Income Fund. The fund seeks the highest level of current income
obtainable from a diversified portfolio of fixed income securities which the
fund's portfolio manager considers consistent with reasonable risk. As a
secondary objective, the fund will seek capital gain where consistent with its
primary objective. Under normal circumstances, this fund generally invests at
least 65% of net assets, plus the amount of any borrowings for investment
purposes, in junk bonds, which are those rated below the fourth highest credit
rating category (i.e., grade BB/Ba and below). Compared to investment-grade
bonds, junk bonds may pay higher yields, have higher volatility and higher risk
of default on payments of interest or principal. The fund may invest up to 50%
of total assets in bonds denominated in US dollars or foreign currencies from
foreign issuers.


DWS High Income Plus Fund. The fund seeks high current income and, as a
secondary objective, capital appreciation. Under normal conditions, the fund
invests at least 65% of its total assets in US dollar-denominated, domestic and
foreign below investment grade fixed income securities (junk bonds), including
those whose issuers are located in countries with new or emerging securities
markets. The fund considers an emerging securities market to be one where the
sovereign debt issued by the government in local currency terms is rated below
investment grade. The fund's investments in fixed income securities may be of
any credit quality and may include securities not paying interest currently and
securities in default. The fund may invest up to 25% of its total assets in
non-US dollar denominated, below investment-grade fixed income securities. The
fund may invest up to 35% of its total assets in cash or money market
instruments in order to maintain liquidity, or in the event that the portfolio
manager determines that securities meeting the fund's investment objectives are
not readily available for purchase. The fund may also purchase securities on a
when-issued basis and engage in short sales.


DWS Dreman High Return Equity Fund. The fund seeks to achieve a high rate of
total return. Under normal circumstances, the fund invests at least 80% of net
assets, plus the amount of any borrowings for investment purposes, in equity
securities (mainly common stocks). The fund focuses on stocks of large US
companies that are similar in size to the companies in the S&P 500 Index and
that the portfolio managers believe are undervalued. The fund intends to invest
primarily in companies whose market capitalizations fall within the range of the
S&P 500 Index.

DWS Core Plus Income Fund. The fund seeks to maximize total return consistent
with preservation of capital and prudent investment management, by investing for
both current income and capital appreciation. The fund primarily invests in US
dollar-denominated fixed income securities, including corporate bonds, US
government and agency bonds and mortgage- and asset-backed securities. A
significant portion of the fund's assets may also be allocated among foreign
investment grade fixed income securities, high yield bonds of US and foreign
issuers (including high yield bonds of issuers in countries with new or emerging
securities markets), or, to maintain liquidity, in cash or money market
instruments.


DWS Inflation Protected Plus Fund. The fund seeks to provide maximum
inflation-adjusted return, consistent with preservation of capital. Under normal
circumstances, the fund will invest at least 80% of its net assets, plus any
borrowings for investment purposes, in inflation-indexed bonds of varying
maturities issued by the US government, non-US governments, their agencies or
instrumentalities, and corporations and derivatives related to these securities.
The fund may invest the remaining portion of its assets in other types of
fixed-income securities, cash or cash equivalents. In an attempt to enhance
return, the fund also employs a global asset allocation strategy, which invests
in instruments across domestic and international fixed-income and currency
markets.

DWS International Fund. The fund seeks long-term growth of capital by investing
at least 65% of its total assets in foreign equities (equities issued by
foreign-based companies and listed on foreign exchanges). Although the fund can
invest in companies of any size and from any country, it invests mainly in
common stocks of established companies in countries with developed economies
(other than the United States).


DWS International Select Equity Fund. The fund seeks capital appreciation. Under
normal circumstances, the fund invests at least 80% of its assets, determined at
the time of purchase, in equity securities and other securities with equity
characteristics. Although the fund can invest in companies of any size and from
any country, it invests mainly in common stocks of established companies located
in countries with, or tied economically to, developed economies (other than the
United States). At least 50% of the fund's assets will be invested in securities
that are represented in the Morgan Stanley Capital International Europe,
Australia and Ear East Index (MSCI EAFE(R) Index). The fund may also invest up
to 20% of its assets in cash equivalents, US investment-grade fixed-income
securities, and US stocks and other equities. Typically, the fund will not hold
more than 35% of its net assets in securities of emerging markets issuers.

DWS International Value Opportunities Fund. The fund seeks long-term capital
appreciation, with current income as a secondary objective. Under normal
circumstances, the fund invests at least 80% of its assets, determined at the
time of purchase, in the stocks and other securities with equity characteristics
of companies in developed countries outside the United States. Almost all the
companies in which the fund invests are based in the developed foreign countries
that make up the Morgan Stanley Capital International Europe, Australia and Ear
East Index (MSCI EAFE(R) Index). The fund may also invest up to 20% of its
assets in cash equivalents, US investment-grade fixed-income securities, and US
stocks and other equities.

DWS Japan Equity Fund. The fund seeks high capital appreciation. Under normal
circumstances, the fund seeks to achieve its objective by investing at least 80%
of its assets, measured at the time a security is purchased, in Japanese equity
securities (securities issued by companies organized under the laws of Japan or
their affiliates, or by a company that derives more than half of its revenues
from Japan). The fund invests primarily in common stocks of companies of any
size, including up to 30% of net assets in smaller companies that are traded
over-the-counter.

DWS Large Cap Value Fund. The fund seeks long-term capital appreciation, with
current income as a secondary objective. Under normal circumstances, the fund
invests at least 80% of net assets, plus the amount of any borrowings for
investment purposes, in common stocks and other equity securities of large US
companies that are similar in size to the companies in the Russell 1000(R) Value
Index and that the portfolio managers believe are undervalued. These are
typically companies that have been sound historically, but are temporarily out
of favor. The fund intends to invest primarily in companies whose market
capitalizations fall within the range of the Russell 1000(R) Value Index.

DWS Large Company Growth Fund. The fund seeks long-term growth of capital by
investing, under normal circumstances, at least 80% of its net assets, plus the
amount of any borrowings for investment purposes, in large US companies that are
similar in size to the companies in the Russell 1000(R) Growth Index. The fund
intends to invest primarily in companies whose market capitalizations fall
within the range of the Russell 1000(R) Growth Index.

DWS Latin America Equity Fund. The fund seeks long-term capital appreciation.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in Latin American common
stocks and other equities (equities that are traded mainly on Latin American
markets, issued or guaranteed by a Latin American government or issued by a
company organized under the laws of a Latin American country or any company with
more than half of its business in Latin America).

DWS Micro Cap Fund. The fund seeks capital appreciation. Under normal
circumstances, the fund invests at least 80% of its assets, determined at the
time of purchase, in stocks and other securities with equity characteristics of
US micro capitalization companies. For the purposes of this 80% limitation, the
micro capitalization equity universe is defined as the bottom 5% of the total
domestic equity market capitalization (at the time of initial investment) using
a minimum market capitalization of $10 million.

DWS Mid Cap Growth Fund. The fund seeks long-term capital growth. Under normal
circumstances, the fund invests at least 80% of its assets, determined at the
time of purchase, in companies with market caps within the market capitalization
range of the Russell Mid Cap Growth Index or securities with equity
characteristics that provide exposure to those companies.

DWS Money Market Prime Series -- DWS Cash Investment Trust. The fund seeks
maximum current income to the extent consistent with stability of principal. The
fund pursues its goal by investing exclusively in high quality, short-term
securities, as well as repurchase agreements that are backed by high-quality
securities. The fund will invest more than 25% of its total assets in the
obligations of banks and other financial institutions. The fund may invest up to
10% of its total assets in other money market mutual funds in accordance with
applicable regulations.

DWS Money Market Series -- Institutional Shares. The fund is a feeder fund that
invests substantially all of its assets in a master portfolio, the Cash
Management Portfolio, which will invest directly in securities and other
instruments. The fund's goal is to seek a high level of current income
consistent with liquidity and the preservation of capital. The fund, through the
Portfolio, seeks to achieve its goal by investing in high quality short-term
money market instruments.

DWS RREEF Global Real Estate Securities Fund. The fund's investment objective is
to seek total return through a combination of current income and long-term
capital appreciation. The fund seeks to achieve this objective by investing
primarily in publicly listed real estate investment trusts (REITs) and real
estate operating companies on a global basis. Under normal circumstances, the
fund will invest at least 80% of its net assets, plus the amount of any
borrowing for investment purposes (calculated at the time of any investment), in
the equity securities of REITs and real estate operating companies listed on
recognized stock exchanges around the world. A security will be considered part
of the fund's investment universe if the issuer of such security has a market
capitalization of at least $50 million and, in the opinion of the portfolio
managers, at least 50% of its revenues or 50% of the market value of its assets
at the time its securities are purchased by the fund are attributed to the
ownership, construction, management or sale of real estate and it is listed on a
recognized public foreign or domestic stock exchange or traded over the counter.

DWS RREEF Real Estate Securities Fund. The fund's investment objective is
long-term capital appreciation and current income. The fund invests primarily in
real estate securities. Under normal circumstances, the fund will invest at
least 80% of its net assets, plus the amount of any borrowing for investment
purposes (calculated at the time of any investment), in equity securities of
real estate investment trusts ("REITs") and real estate companies. A company is
considered to be a real estate company if, in the opinion of the portfolio
managers, at least 50% of its revenues or 50% of the market value of its assets
at the time its securities are purchased by the fund are attributed to the
ownership, construction, management or sale of real estate.


DWS S&P 500 Index Fund. The fund seeks to provide investment results that,
before expenses, correspond to the total return of common stocks publicly traded
in the United States, as represented by the Standard & Poor's 500 Composite
Stock Price Index (S&P 500 Index). The fund invests for capital appreciation,
not income; any dividend and interest income is incidental to the pursuit of its
objective. The fund is a feeder fund in a master/feeder fund arrangement. The
fund pursues its investment objective by investing substantially all of its
assets in a master portfolio, DWS Equity 500 Index Portfolio, which has the same
investment objective and is subject to the same investment risks as the fund.
Under normal circumstances, the fund through DWS Equity 500 Index Portfolio
intends to invest at least 80% of its assets, determined at the time of
purchase, in stocks of companies included in the S&P 500 Index and in derivative
instruments, such as futures contracts and options, that provide exposure to the
stocks of companies in the S&P 500 Index.


DWS Enhanced S&P 500 Index Fund. Effective December 15, 2008, the fund will be
renamed DWS S&P 500 Plus Fund. The fund seeks long-term growth and income by
investing at least 80% of total assets in common stocks of companies that are
included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500
Index). The fund intends to invest primarily in companies whose market
capitalizations fall within the range of the S&P 500 Index. Effective January 1,
2009, the fund will add a global tactical asset allocation overlay strategy
known as iGAP (integrated Global Alpha Platform) that seeks to provide enhanced
returns.

DWS Short Duration Fund. The fund seeks to maximize total return consistent with
preservation of capital and prudent investment management, by investing for both
current income and capital appreciation. Under normal circumstances, the fund
invests at least 80% of its assets, determined at the time of purchase, in fixed
income securities. The fund invests in US and foreign government bonds,
corporate, mortgage-backed and asset-backed securities, taxable municipal and
tax-exempt municipal bonds. The fund invests primarily in investment-grade
short-term fixed income securities rated within the top four credit rating
categories. In addition, the fund may invest up to 10% of total assets in
securities of US and foreign issuers that are below investment grade (otherwise
known as junk bonds). The fund may invest up to 10% of total assets in US dollar
or foreign currency denominated bonds of issuers located in countries with new
or emerging securities markets. The fund may hold up to 20% of its total assets
in cash or money market instruments in order to maintain liquidity, or in the
event the portfolio managers determine that securities meeting the fund's
investment objective are not otherwise readily available for purchase.

DWS Short Duration Plus Fund. The fund's investment objective is to provide high
income while also seeking to maintain a high degree of stability of
shareholders' capital. The fund invests in securities of varying maturities and
normally seeks to maintain an average portfolio duration of no longer than three
years. The fund invests, under normal market conditions, at least 65% of its
total assets in fixed income securities rated, at the time of purchase, within
the top four long-term rating categories by a nationally recognized statistical
rating organization (a "NRSRO") (or, if unrated, determined by the fund's
investment advisor to be of similar quality) The fund may invest up to 10% of
its assets in US dollar-denominated, domestic and foreign below investment-grade
fixed income securities (junk bonds) rated in the fifth and sixth long-term
rating categories by a NRSRO (or, if unrated, determined by the fund's
investment advisor to be of similar quality), including those whose issuers are
located in countries with new or emerging securities markets. The fund can
invest up to 15% of its net assets in illiquid securities. In an attempt to
enhance return, the fund also employs a global allocation strategy, which
invests in instruments across domestic and international fixed income and
currency markets.

DWS Small Cap Growth Fund. The fund seeks long-term capital growth. Under normal
circumstances, the fund invests at least 80% of its assets, determined at the
time of purchase, in stocks and other securities with equity characteristics of
US smaller capitalization companies. For purposes of this 80% investment
limitation, the small capitalization equity universe is defined as the bottom
20% of the total domestic equity market capitalization (at the time of initial
investment), using a minimum market capitalization of $10 million.

DWS Small Cap Core Fund. The fund seeks to provide long-term capital growth.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in common stocks of small
US companies with potential for above-average long-term capital growth. These
companies are similar in size to the companies in the Russell 2000(R) Index. The
fund intends to invest in companies whose market capitalizations fall within the
range of the Russell 2000(R) Index.





DWS Dreman Concentrated Value Fund. The fund's investment objective is long-term
growth of capital. The fund seeks to achieve its objective by investing
primarily in the common stocks of large companies that the portfolio managers
believe are undervalued, but have favorable prospects for appreciation. The fund
is classified as a non-diversified portfolio and normally invests in a core
position of common stocks (normally 20 to 25 stocks) that represent the
portfolio managers' best ideas.

DWS Dreman Mid Cap Value Fund. The fund seeks long-term capital appreciation.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in common stocks of
mid-cap companies that the portfolio managers believe are undervalued, but have
favorable prospects for appreciation. The fund defines mid-cap companies as
companies that have a market capitalization similar to that of the Russell
Midcap Value Index with a market capitalization which usually ranges from $1
billion to $20 billion.

DWS Dreman Small Cap Value Fund. The fund seeks long-term capital appreciation.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in undervalued common
stocks of small US companies, which the fund defines as companies that are
similar in market value to those in the Russell 2000(R) Index. The fund intends
to invest primarily in companies whose market capitalizations fall within the
range of the Russell 2000(R) Index.

DWS Technology Fund. The fund seeks growth of capital. Under normal
circumstances, the fund invests at least 80% of net assets, plus the amount of
any borrowings for investment purposes, in common stocks of companies in the
technology sector. For purposes of the fund's 80% investment policy, companies
in the technology sector must commit at least half of their assets to the
technology sector or derive at least half of their revenues or net income from
that sector. Examples of industries within the technology sector are
semiconductors, software, telecom equipment, computer/hardware, IT services, the
Internet and health technology. The fund may invest in companies of any size..

DWS U.S. Bond Index Fund. The fund seeks to replicate, as closely as possible,
before the deduction of expenses, the performance of the Barclays Capital U.S.
Aggregate Index, which emphasizes government mortgage-backed securities and
corporate investment grade debt securities. The fund will pursue its objective
by investing primarily in the debt securities of the companies included in the
Barclays Capital U.S. Aggregate Index and derivative instruments, such as
futures contracts and options, that provide exposure to the securities in the
Barclays Capital U.S. Aggregate Index.

DWS RREEF Global Infrastructure Fund. The fund seeks total return from both
capital appreciation and current income through investment in a global portfolio
of securities of infrastructure-related companies. Under normal circumstances,
the fund invests at least 80% of its net assets in the securities of US and
non-US infrastructure-related companies. The fund considers a company to be an
infrastructure-related company if at least 50% of its non-cash assets are
infrastructure assets or 50% of its gross income or net profits are derived,
directly or indirectly, from the ownership, management, construction, operation,
utilization or financing of infrastructure assets. Under normal circumstances,
the fund invests principally in equity securities, though the fund may also
invest in fixed-income securities without limitation. Under normal
circumstances, the majority of the fund's assets are invested in securities of
issuers organized or located outside the US or doing a substantial amount of
business outside the US.


         INVESTMENT POLICIES AND TECHNIQUES OF THE UNDERLYING DWS FUNDS

The Underlying Funds may engage in certain practices not described herein.


Adjustable Rate Mortgages-Interest Rate Indices. DWS U.S. Bond Index Fund may
invest in adjustable rate mortgages which may be adjusted on the basis of one of
several indices. The One Year Treasury Index is the figure derived from the
average weekly quoted yield on US Treasury securities adjusted to a constant
maturity of one year. The Cost of Funds Index reflects the monthly weighted
average cost of funds of savings and loan associations and savings banks whose
home offices are located in Arizona, California and Nevada (the "FHLB Eleventh
District") that are member institutions of the Federal Home Loan Bank of San
Francisco (the "FHLB of San Francisco"), as computed from statistics tabulated
and published by the FHLB of San Francisco. The FHLB of San Francisco normally
announces the Cost of Funds Index on the last working day of the month following
the month in which the cost of funds was incurred.

A number of factors affect the performance of the Cost of Funds Index and may
cause the Cost of Funds Index to move in a manner different from indices based
upon specific interest rates, such as the One Year Treasury Index.

Because of the various origination dates and maturities of the liabilities of
members of the FHLB Eleventh District upon which the Cost of Funds Index is
based, among other things, at any time the Cost of Funds Index may not reflect
the average prevailing market interest rates on new liabilities of similar
maturities. There can be no assurance that the Cost of Funds Index will
necessarily move in the same direction or at the same rate as prevailing
interest rates, since as longer term deposits or borrowings mature and are
renewed at market interest rates, the Cost of Funds Index will rise or fall
depending upon the differential between the prior and the new rates on such
deposits and borrowings. In addition, dislocations in the thrift industry in
recent years have caused and may continue to cause the cost of funds of thrift
institutions to change for reasons unrelated to changes in general interest rate
levels. Furthermore, any movement in the Cost of Funds Index as compared to
other indices based upon specific interest rates may be affected by changes
instituted by the FHLB of San Francisco in the method used to calculate the Cost
of Funds Index. To the extent that the Cost of Funds Index may reflect interest
changes on a more delayed basis than other indices, in a period of rising
interest rates, any increase may produce a higher yield later than would be
produced by such other indices, and in a period of declining interest rates, the
Cost of Funds Index may remain higher than other market interest rates which may
result in a higher level of principal prepayments on mortgage loans which adjust
in accordance with the Cost of Funds Index than mortgage loans which adjust in
accordance with other indices.

LIBOR, the London InterBank Offered Rate, is the interest rate that the most
creditworthy international banks dealing in US dollar-denominated deposits and
loans charge each other for large dollar-denominated loans. LIBOR is also
usually the base rate for large dollar-denominated loans in the international
market. LIBOR is generally quoted for loans having rate adjustments at one,
three, six or twelve month intervals.


Adjustable Rate Securities. The interest rates paid on the adjustable rate
securities in which a fund invests generally are readjusted at intervals of one
year or less to an increment over some predetermined interest rate index. There
are three main categories of indices: those based on US Treasury securities,
those derived from a calculated measure such as a cost of funds index and those
based on a moving average of mortgage rates. Commonly used indices include the
one-year, three-year and five-year constant maturity Treasury rates, the
three-month Treasury bill rate, the 180-day Treasury bill rate, rates on
longer-term Treasury securities, the 11th District Federal Home Loan Bank Cost
of Funds, the National Median Cost of Funds, the one-month, three-month,
six-month or one-year London Interbank Offered Rate ("LIBOR"), the prime rate of
a specific bank or commercial paper rates. Some indices, such as the one-year
constant maturity Treasury rate, closely mirror changes in market interest rate
levels. Others, such as the 11th District Home Loan Bank Cost of Funds index,
tend to lag behind changes in market rate levels and tend to be somewhat less
volatile.

The Mortgage-Backed Securities either issued or guaranteed by GNMA, FHLMC or
FNMA ("Certificates") are called pass-through Certificates because a pro rata
share of both regular interest and principal payments (less GNMA's, FHLMC's or
FNMA's fees and any applicable loan servicing fees), as well as unscheduled
early prepayments on the underlying mortgage pool, are passed through monthly to
the holder of the Certificate (i.e., a fund). The principal and interest on GNMA
securities are guaranteed by GNMA and backed by the full faith and credit of the
US Government. FNMA guarantees full and timely payment of all interest and
principal, while FHLMC guarantees timely payment of interest and ultimate
collection of principal. Mortgage-Backed Securities from FNMA and FHLMC are not
backed by the full faith and credit of the United States; however, they are
generally considered to offer minimal credit risks. The yields provided by these
Mortgage-Backed Securities have historically exceeded the yields on other types
of US Government Securities with comparable maturities in large measure due to
the prepayment risk discussed below.

If prepayments of principal are made on the underlying mortgages during periods
of rising interest rates, a fund generally will be able to reinvest such amounts
in securities with a higher current rate of return. However, a fund will not
benefit from increases in interest rates to the extent that interest rates rise
to the point where they cause the current coupon of adjustable rate mortgages
held as investments by a fund to exceed the maximum allowable annual or lifetime
reset limits (or "cap rates") for a particular mortgage. Also, a fund's net
asset value could vary to the extent that current yields on Mortgage-Backed
Securities are different than market yields during interim periods between
coupon reset dates.

During periods of declining interest rates, of course, the coupon rates may
readjust downward, resulting in lower yields to a fund. Further, because of this
feature, the value of adjustable rate mortgages is unlikely to rise during
periods of declining interest rates to the same extent as fixed-rate
instruments. As with other Mortgage-Backed Securities, interest rate declines
may result in accelerated prepayment of mortgages, and the proceeds from such
prepayments must be reinvested at lower prevailing interest rates.

One additional difference between adjustable rate mortgages and fixed rate
mortgages is that for certain types of adjustable rate mortgage securities, the
rate of amortization of principal, as well as interest payments, can and does
change in accordance with movements in a specified, published interest rate
index. The amount of interest due to an adjustable rate mortgage security holder
is calculated by adding a specified additional amount, the "margin," to the
index, subject to limitations or "caps" on the maximum and minimum interest that
is charged to the mortgagor during the life of the mortgage or to maximum and
minimum changes to that interest rate during a given period.

Advance Refunded Bonds. DWS Floating Rate Plus Fund may purchase Municipal
Securities that are subsequently refunded by the issuance and delivery of a new
issue of bonds prior to the date on which the outstanding issue of bonds can be
redeemed or paid. The proceeds from the new issue of bonds are typically placed
in an escrow fund consisting of US Government obligations that are used to pay
the interest, principal and call premium on the issue being refunded. The Fund
may also purchase Municipal Securities that have been refunded prior to purchase
by a fund.

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

Asset-Indexed Securities. A fund may purchase asset-indexed securities which are
debt securities usually issued by companies in precious metals related
businesses such as mining, the principal amount, redemption terms, or interest
rates of which are related to the market price of a specified precious metal. A
fund will only enter into transactions in publicly traded asset-indexed
securities. Market prices of asset-indexed securities will relate primarily to
changes in the market prices of the precious metals to which the securities are
indexed rather than to changes in market rates of interest. However, there may
not be a perfect correlation between the price movements of the asset-indexed
securities and the underlying precious metals. Asset-indexed securities
typically bear interest or pay dividends at below market rates (and in certain
cases at nominal rates). A fund may purchase asset-indexed securities to the
extent permitted by law.


Asset Segregation. Certain investment transactions expose the fund to an
obligation to make future payments to third parties. Examples of these types of
transactions, include, but are not limited to, reverse repurchase agreements,
short sales, dollar rolls, when-issued, delayed-delivery or forward commitment
transactions and certain derivatives such as swaps, futures, forwards, and
options. To the extent that the fund engages in such transactions, the fund will
(to the extent required by applicable law) either (1) segregate cash or liquid
assets in the prescribed amount or (2) otherwise "cover" its future obligations
under the transaction, such as by holding an offsetting investment. If the fund
segregates sufficient cash or other liquid assets or otherwise "covers" its
obligations under such transactions, the fund will not consider the transactions
to be borrowings for purposes of its investment restrictions or "senior
securities" under the Investment Company Act of 1940, as amended (the "1940
Act"), and therefore, such transactions will not be subject to the 300% asset
coverage requirement under the 1940 Act otherwise applicable to borrowings by
the fund.

In some cases (e.g., with respect to futures and forwards that are contractually
required to "cash-settle"), the fund will segregate cash or other liquid assets
with respect to the amount of the daily net (marked-to-market) obligation
arising from the transaction, rather than the notional amount of the underlying
contract. By segregating assets in an amount equal to the net obligation rather
than the notional amount, the fund will have the ability to employ leverage to a
greater extent than if it set aside cash or other liquid assets equal to the
notional amount of the contract, which may increase the risk associated with
such transactions.

The fund may utilize methods of segregating assets or otherwise "covering"
transactions that are currently or in the future permitted under the 1940 Act,
the rules and regulations thereunder, or orders issued by the SEC thereunder.
For these purposes, interpretations and guidance provided by the SEC staff may
be taken into account when deemed appropriate by the fund.

Assets used as segregation or cover cannot be sold while the position in the
corresponding transaction is open, unless they are replaced with other
appropriate assets. As a result, the commitment of a large portion of a fund's
assets for segregation and cover purposes could impede portfolio management or
the fund's ability to meet redemption requests or other current obligations.

Segregating assets or otherwise "covering" for these purposes does not
necessarily limit the percentage of the assets of the fund that may be at risk
with respect to certain derivative transactions.


Auction Rate Securities. Auction rate securities in which a fund may invest
consist of auction rate municipal securities and auction rate preferred
securities issued by closed-end investment companies that invest primarily in
municipal securities. Provided that the auction mechanism is successful, auction
rate securities usually permit the holder to sell the securities in an auction
at par value at specified intervals. The dividend is reset by "Dutch" auction in
which bids are made by broker-dealers and other institutions for a certain
amount of securities at a specified minimum yield. The dividend rate set by the
auction is the lowest interest or dividend rate that covers all securities
offered for sale. While this process is designed to permit auction rate
securities to be traded at par value, there is the risk that an auction will
fail due to insufficient demand for the securities. Dividends on auction rate
preferred securities issued by a closed-end fund may be designated as exempt
from federal income tax to the extent they are attributable to tax-exempt
interest income earned by a fund on the securities in its portfolio and
distributed to holders of the preferred securities, provided that the preferred
securities are treated as equity securities for federal income tax purposes and
the closed-end fund complies with certain requirements under the Internal
Revenue Code of 1986, as amended (the "Code"). A fund's investments in auction
rate preferred securities of closed-end funds are subject to limitations on
investments in other US registered investment companies, which limitations are
prescribed by the 1940 Act. These limitations include prohibitions against
acquiring more than 3% of the voting securities of any other such investment
company, and investing more than 5% of a fund's assets in securities of any one
such investment company or more than 10% of its assets in securities of all such
investment companies.

Bank and Savings and Loan Obligations. These obligations include negotiable
certificates of deposit, bankers' acceptances, deposit notes, fixed time
deposits or other short-term bank obligations. Certificates of deposit are
negotiable certificates evidencing the obligations of a bank to repay funds
deposited with it for a specified period of time. A fund may invest in
certificates of deposit of large domestic banks and their foreign branches,
large US regulated subsidiaries of large foreign banks (i.e., banks which at the
time of their most recent annual financial statements show total assets in
excess of $1 billion), and of smaller banks as described below. Although a fund
recognizes that the size of a bank is important, this fact alone is not
necessarily indicative of its creditworthiness. Investment in certificates of
deposit issued by foreign branches of domestic banks involves investment risks
that are different in some respects from those associated with investment in
certificates of deposit issued by domestic branches of domestic banks, including
the possible imposition of withholding taxes on interest income, the possible
adoption of foreign governmental restrictions which might adversely affect the
payment of principal and interest on such certificates of deposit, or other
adverse political or economic developments. In addition, it might be more
difficult to obtain and enforce a judgment against a foreign branch of a
domestic bank.

A fund may also invest in certificates of deposit issued by banks and savings
and loan institutions which had, at the time of their most recent annual
financial statements, total assets of less than $1 billion, provided that (i)
the principal amounts of such certificates of deposit are insured by an agency
of the US Government, (ii) at no time will a fund hold more than $100,000
principal amount of certificates of deposit of any one such bank, and (iii) at
the time of acquisition, no more than 10% of a fund's assets (taken at current
value) are invested in certificates of deposit of such banks having total assets
not in excess of $1 billion.

Banker's acceptances are credit instruments evidencing the obligations of a bank
to pay a draft drawn on it by a customer. These instruments reflect the
obligation both of the bank and of the drawer to pay the face amount of the
instrument upon maturity.

Time deposits are non-negotiable deposits maintained in a banking institution
for a specified period of time at a stated interest rate. Time deposits which
may be held by a fund will not benefit from insurance from the Bank Insurance
Fund or the Savings Association Insurance Fund administered by the Federal
Deposit Insurance Corporation. Fixed time deposits may be withdrawn on demand by
the investor, but may be subject to early withdrawal penalties that vary with
market conditions and the remaining maturity of the obligation. Fixed time
deposits subject to withdrawal penalties maturing in more than seven calendar
days are subject to a fund's limitation on investments in illiquid securities.

Bank Loans. Bank loans are typically senior debt obligations of borrowers
(issuers) and as such, are considered to hold a senior position in the capital
structure of the borrower. These may include loans which hold the most senior
position, that hold an equal ranking with other senior debt, or loans that are,
in the judgment of the Advisor, in the category of senior debt of the borrower.
This capital structure position generally gives the holders of these loans a
priority claim on some or all of the borrower's assets in the event of a
default. In most cases, these loans are either partially or fully collateralized
by the assets of a corporation, partnership, limited liability company or other
business entity, or by cash flow that the Advisor believes has a market value at
the time of acquisition that equals or exceeds the principal amount of the loan.
These loans are often issued in connection with recapitalizations, acquisitions,
leveraged buy-outs and refinancings. It is important to note that Moody's and
S&P may rate bank loans higher than high yield bonds of the same issuer to
reflect their more senior position. The fund may invest in both fixed- and
floating-rate loans. In addition, bank loans can trade either as an "assignment"
or "participation." When the Fund buys an assignment, it is essentially becoming
a party to the bank agreement. The vast majority of all trades are assignments
and would therefore generally represent the preponderance of bank loans held by
the Fund. In certain cases, the Fund may buy bank loans on a participation
basis, if for example, the Fund did not want to become party to the bank
agreement. However, in all cases, the Fund will not purchase bank loans where
Deutsche Bank, or an affiliate, serves as an agent bank.

Participations and assignments involve credit risk, interest rate risk,
liquidity risk, and the risk of being a lender. If the Fund purchases a
participation, it may only be able to enforce its rights through the lender, and
may assume the credit risk of both the lender and the borrower.

Investments in loans through direct assignment of a financial institution's
interests with respect to a loan may involve additional risks. For example, if a
loan is foreclosed, the purchaser could become part owner of any collateral, and
would bear the costs and liabilities associated with owning and disposing of the
collateral. In addition, it is at least conceivable that under emerging legal
theories of lender liability, a purchaser could be held liable as a co-lender.

In the case of loans administered by a bank or other financial institution that
acts as agent for all holders, if assets held by the agent for the benefit of a
purchaser are determined to be subject to the claims of the agent's general
creditors, the purchaser might incur certain costs and delays in realizing
payment on the loan or loan participation and could suffer a loss of principal
or interest.

In the case of loan participations where a bank or other lending institution
serves as financial intermediary between a fund and the borrower, if the
participation does not shift to the fund the direct debtor-creditor relationship
with the borrower, SEC interpretations require the fund, in some circumstances,
to treat both the lending bank or other lending institution and the borrower as
issuers for purposes of the fund's investment policies. Treating a financial
intermediary as an issuer of indebtedness may restrict a fund's ability to
invest in indebtedness related to a single financial intermediary, or a group of
intermediaries engaged in the same industry, even if the underlying borrowers
represent many different companies and industries.

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

DWS Disciplined Long/Short Growth Fund, DWS Disciplined Long/Short Value Fund
and DWS Floating Rate Plus Fund may each borrow money from banks for investment
purposes to the extent permitted by the 1940 Act. This practice is known as
leverage. Currently, under the 1940 Act, the funds may borrow up to one-third of
their total assets (including the amount borrowed) provided that it maintains
continuous asset coverage of 300% with respect to such borrowings and sells
(within three days) sufficient portfolio holdings to restore such coverage if it
should decline to less than 300% due to market fluctuations or otherwise, even
if disadvantageous from an investment standpoint. The funds may borrow through
other means to the extent permitted by the 1940 Act. In addition to borrowing
for leverage purposes, the funds also may borrow money to meet redemptions in
order to avoid forced, unplanned sales of portfolio securities or for other
temporary or emergency purposes. This allows the funds greater flexibility to
buy and sell portfolio securities for investment or tax considerations, rather
than for cash flow considerations.

The use of borrowing by the funds involves special risk considerations that may
not be associated with other funds having similar policies. Because
substantially all of the funds' assets fluctuate in value, whereas the interest
obligation resulting from a borrowing may be fixed by the terms of the fund's
agreement with its lender, the net asset value per share of the funds will tend
to increase more when its portfolio securities increase in value and decrease
more when its portfolio securities decrease in value than would otherwise be the
case if the funds did not borrow funds. In addition, interest costs on
borrowings may fluctuate with changing market rates of interest and may
partially offset or exceed the return earned on borrowed funds. Under adverse
market conditions, the funds might have to sell portfolio securities to meet
interest or principal payments at a time when fundamental investment
considerations would not favor such sales. The interest that the funds must pay
on borrowed money, together with any additional fees to establish and maintain a
borrowing facility, are additional costs that will reduce or eliminate any net
investment income and may also offset any potential capital gains. Unless
appreciation and income, if any, on assets acquired with borrowed funds exceed
the costs of borrowing, the use of leverage will diminish the investment
performance of the funds compared with what it would have been without leverage.

Brady Bonds. Brady Bonds are securities created through the exchange of existing
commercial bank loans to public and private entities in certain emerging markets
for new bonds in connection with debt restructurings under a debt
restructuring-plan introduced by former US Secretary of the Treasury, Nicholas
F. Brady (the "Brady Plan"). Brady Plan debt restructurings have been
implemented in Argentina, Brazil, Bulgaria, Costa Rica, the Dominican Republic,
Ecuador, Jordan, Mexico, Nigeria, the Philippines, Poland and Uruguay. Brady
Bonds have been issued fairly recently, and for that reason do not have a long
payment history. Brady Bonds may be collateralized or uncollateralized, are
issued in various currencies (but primarily the dollar) and are actively traded
in over-the-counter secondary markets. Dollar-denominated, collateralized Brady
Bonds, which may be fixed-rate bonds or floating-rate bonds, are generally
collateralized in full as to principal by US Treasury zero coupon bonds having
the same maturity as the bonds. Interest payments on these Brady Bonds generally
are collateralized by cash or securities in an amount that, in the case of fixed
rate bonds, is equal to at least one year of rolling interest payments or, in
the case of floating rate bonds, initially is equal to at least one year's
rolling interest payments based on the applicable interest rate at that time and
is adjusted at regular intervals thereafter. Brady Bonds are often viewed as
having three or four valuation components: the collateralized repayment of
principal at final maturity; the collateralized interest payments; the
uncollateralized interest payments; and any uncollateralized repayment of
principal at maturity (these uncollateralized amounts constitute the "residual
risk"). In light of the residual risk of Brady Bonds and the history of defaults
of countries issuing Brady Bonds, with respect to commercial bank loans by
public and private entities, investments in Brady Bonds may be viewed as
speculative. Approximately $152 billion in Brady Bonds have been issued in
Africa, Asia, Eastern Europe, Latin America and the Middle East, with over 90%
of these Brady Bonds being denominated in US dollars.

Certificates of Deposit and Bankers' Acceptances. Certificates of deposit are
receipts issued by a depository institution in exchange for the deposit of
funds. The issuer agrees to pay the amount deposited plus interest to the bearer
of the receipt on the date specified on the certificate. The certificate usually
can be traded in the secondary market prior to maturity. Bankers' acceptances
typically arise from short-term credit arrangements designed to enable
businesses to obtain funds to finance commercial transactions. Generally, an
acceptance is a time draft drawn on a bank by an exporter or an importer to
obtain a stated amount of funds to pay for specific merchandise. The draft is
then "accepted" by a bank that, in effect, unconditionally guarantees to pay the
face value of the instrument on its maturity date. The acceptance may then be
held by the accepting bank as an earning asset or it may be sold in the
secondary market at the going rate of discount for a specific maturity. Although
maturities for acceptances can be as long as 270 days, most acceptances have
maturities of six months or less.

Collateralized Mortgage Obligations ("CMOs"). CMOs are hybrids between
mortgage-backed bonds and mortgage pass-through securities. Similar to a bond,
interest and prepaid principal are paid, in most cases, semiannually. CMOs may
be collateralized by whole mortgage loans but are more typically collateralized
by portfolios of mortgage pass-through securities guaranteed by GNMA, FHLMC, or
Fannie Mae, and their income streams.

CMOs are structured into multiple classes, each bearing a different stated
maturity. Actual maturity and average life will depend upon the prepayment
experience of the collateral. CMOs provide for a modified form of call
protection through a de facto breakdown of the underlying pool of mortgages
according to how quickly the loans are repaid. Monthly payment of principal
received from the pool of underlying mortgages, including prepayments, is first
returned to investors holding the shortest maturity class. Investors holding the
longer maturity classes receive principal only after the first class has been
retired. An investor is partially guarded against a sooner than desired return
of principal because of the sequential payments. The prices of certain CMOs,
depending on their structure and the rate of prepayments, can be volatile. Some
CMOs may also not be as liquid as other securities.

In a typical CMO transaction, a corporation issues multiple series (e.g., A, B,
C, Z) of CMO bonds ("Bonds"). Proceeds of the Bond offering are used to purchase
mortgages or mortgage pass-through certificates ("Collateral"). The Collateral
is pledged to a third party trustee as security for the Bonds. Principal and
interest payments from the Collateral are used to pay principal on the Bonds in
the order A, B, C, Z. The Series A, B, and C Bonds all bear current interest.
Interest on the Series Z Bond is accrued and added to principal and a like
amount is paid as principal on the Series A, B, or C Bond currently being paid
off. When the Series A, B, and C Bonds are paid in full, interest and principal
on the Series Z Bond begins to be paid currently. With some CMOs, the issuer
serves as a conduit to allow loan originators (primarily builders or savings and
loan associations) to borrow against their loan portfolios.

The principal risk of CMOs results from the rate of prepayments on underlying
mortgages serving as collateral and from the structure of the deal. An increase
or decrease in prepayment rates will affect the yield, average life and price of
CMOs.

Commercial Paper. Subject to its investment objectives and policies, a fund may
invest in commercial paper issued by major corporations under the 1933 Act in
reliance on the exemption from registration afforded by Section 3(a)(3) thereof.
Such commercial paper may be issued only to finance current transactions and
must mature in nine months or less. Trading of such commercial paper is
conducted primarily by institutional investors through investment dealers, and
individual investor participation in the commercial paper market is very
limited. A fund also may invest in commercial paper issued in reliance on the
so-called "private placement" exemption from registration afforded by Section
4(2) of the 1933 Act ("Section 4(2) paper"). Section 4(2) paper is restricted as
to disposition under the federal securities laws, and generally is sold to
institutional investors such as a fund who agree that they are purchasing the
paper for investment and not with a view to public distribution. Any resale by
the purchaser must be in an exempt transaction. Section 4(2) paper normally is
resold to other institutional investors like a fund through or with the
assistance of the issuer or investment dealers who make a market in the Section
4(2) paper, thus providing liquidity. The Advisor considers the legally
restricted but readily saleable Section 4(2) paper to be liquid; however,
pursuant to procedures approved by a fund's Board, if a particular investment in
Section 4(2) paper is not determined to be liquid, that investment will be
included within the limitation of a fund on illiquid securities. The Advisor
monitors the liquidity of its investments in Section 4(2) paper on a continuing
basis.

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

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

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

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

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

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

Correlation of Gold and Gold Securities. The underlying fund's advisor believes
that the value of the securities of firms that deal in gold will correspond
generally, over time, with the prices of the underlying metal. At any given
time, however, changes in the price of gold may not strongly correlate with
changes in the value of securities related to gold, which are expected to
constitute the principal part of a fund's assets. In fact, there may be periods
in which the price of gold stocks and gold will move in different directions.
The reason for this potential disparity is that political and economic factors,
including behavior of the stock market, may have differing impacts on gold
versus gold stocks.

Corporate Obligations. Investment in corporate debt obligations involves credit
and interest rate risk. The value of fixed-income investments will fluctuate
with changes in interest rates and bond market conditions, tending to rise as
interest rates decline and to decline as interest rates rise. Corporate debt
obligations generally offer less current yield than securities of lower quality,
but lower-quality securities generally have less liquidity, greater credit and
market risk, and as a result, more price volatility. Longer-term bonds are,
however, generally more volatile than bonds with shorter maturities.

Custodial Receipts. Custodial receipts are interests in separately traded
interest and principal component parts of US Government securities that are
issued by banks or brokerage firms and are created by depositing US Government
securities into a special account at a custodian bank. The custodian holds the
interest and principal payments for the benefit of the registered owners of the
certificates or receipts. The custodian arranges for the issuance of the
certificates or receipts evidencing ownership and maintains the register.
Custodial receipts include Treasury Receipts ("TRs"), Treasury Investment Growth
Receipts ("TIGRs"), and Certificates of Accrual on Treasury Securities ("CATS").
TIGRs and CATS are interests in private proprietary accounts while TRs and
STRIPS (see "US Government Securities" above) are interests in accounts
sponsored by the US Treasury. Receipts are sold as zero coupon securities; for
more information, see "Zero Coupon Securities."

The Fund may acquire US Government securities and their unmatured interest
coupons that have been separated ("stripped") by their holder, typically a
custodian bank or investment brokerage firm. Having separated the interest
coupons from the underlying principal of the US Government securities, the
holder will resell the stripped securities in custodial receipt programs with a
number of different names, including TIGRs and CATS. The stripped coupons are
sold separately from the underlying principal, which is usually sold at a deep
discount because the buyer receives only the right to receive a future fixed
payment on the security and does not receive any rights to periodic interest
(cash) payments. The underlying US Treasury bonds and notes themselves are
generally held in book-entry form at a Federal Reserve Bank. Counsel to the
underwriters of these certificates or other evidences of ownership of US
Treasury securities have stated that, in their opinion, purchasers of the
stripped securities most likely will be deemed the beneficial holders of the
underlying US Government securities for federal tax and securities purposes. In
the case of CATS and TIGRS, the Internal Revenue Service (the "IRS") has reached
this conclusion for the purpose of applying the tax diversification requirements
applicable to regulated investment companies such as the Fund. CATS and TIGRS
are not considered US Government securities by the staff of the SEC. Further,
the IRS conclusion noted above is contained only in a general counsel
memorandum, which is an internal document of no precedential value or binding
effect, and a private letter ruling, which also may not be relied upon by the
Fund. The Trust is not aware of any binding legislative, judicial or
administrative authority on this issue.

Depositary Receipts. A fund may invest in sponsored or unsponsored American
Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"), Global
Depositary Receipts ("GDRs"), International Depositary Receipts ("IDRs") and
other types of Depositary Receipts (which, together with ADRs, GDRs and IDRs are
hereinafter referred to as "Depositary Receipts"). Depositary receipts provide
indirect investment in securities of foreign issuers. Prices of unsponsored
Depositary Receipts may be more volatile than if they were sponsored by the
issuer of the underlying securities. Depositary Receipts may not necessarily be
denominated in the same currency as the underlying securities into which they
may be converted. In addition, the issuers of the stock of unsponsored
Depositary Receipts are not obligated to disclose material information in the
United States and, therefore, there may not be a correlation between such
information and the market value of the Depositary Receipts. ADRs are Depositary
Receipts which are bought and sold in the United States and are typically issued
by a US bank or trust company which evidence ownership of underlying securities
by a foreign corporation. GDRs, IDRs and other types of Depositary Receipts are
typically issued by foreign banks or trust companies, although they may also be
issued by United States banks or trust companies, and evidence ownership of
underlying securities issued by either a foreign or a United States corporation.
Generally, Depositary Receipts in registered form are designed for use in the
United States securities markets and Depositary Receipts in bearer form are
designed for use in securities markets outside the United States. For purposes
of a fund's investment policies, a fund's investments in ADRs, GDRs and other
types of Depositary Receipts will be deemed to be investments in the underlying
securities. Depositary Receipts, including those denominated in US dollars will
be subject to foreign currency exchange rate risk. However, by investing in US
dollar-denominated ADRs rather than directly in foreign issuers' stock, a fund
avoids currency risks during the settlement period. In general, there is a
large, liquid market in the United States for most ADRs. However, certain
Depositary Receipts may not be listed on an exchange and therefore may be
illiquid securities.

Direct Debt Instruments. DWS Floating Rate Plus Fund may invest in direct debt
instruments. Direct debt instruments are interests in amounts owed by a
corporate, governmental or other borrower to lenders (direct loans), to
suppliers of goods or services (trade claims or other receivables) or to other
parties.

When the fund participates in a direct loan it will be lending money directly to
an issuer. Direct loans generally do not have an underwriter or agent bank, but
instead, are negotiated between a company's management team and a lender or
group of lenders. Direct loans typically offer better security and structural
terms than other types of high yield securities. Direct debt obligations are
often the most senior-obligations in an issuer's capital structure or are
well-collateralized so that overall risk is lessened.

Trade claims are unsecured rights of payment arising from obligations other than
borrowed funds. Trade claims include vendor claims and other receivables that
are adequately documented and available for purchase from high yield
broker-dealers. Trade claims typically may sell at a discount. In addition to
the risks otherwise associated with low-quality obligations, trade claims have
other risks, including the possibility that the amount of the claim may be
disputed by the obligor. Trade claims normally would be considered illiquid and
pricing can be volatile.

Direct debt instruments involve a risk of loss in case of default or insolvency
of the borrower. The fund will rely primarily upon the creditworthiness of the
borrower and/or the collateral for payment of interest and repayment of
principal. The value of the fund's investments may be adversely affected if
scheduled interest or principal payments are not made. Because most direct loans
will be secured, there will be a smaller risk of loss with direct loans than
with an investment in unsecured high yield bonds or trade claims. Indebtedness
of borrowers whose creditworthiness is poor involves substantially greater risks
and may be highly speculative. Borrowers that are in bankruptcy or restructuring
may never pay off their indebtedness or may pay only a small fraction of the
amount owed. Investments in direct debt instruments also involve interest rate
risk and liquidity risk. However, interest rate risk is lessened by the
generally short-term nature of direct debt instruments and their interest rate
structure, which typically floats. To the extent the direct debt instruments in
which the fund invests are considered illiquid, the lack of a liquid secondary
market (1) will have an adverse impact on the value of such instruments, (2)
will have an adverse impact on the fund's ability to dispose of them when
necessary to meet the fund's liquidity needs or in response to a specific
economic event, such as a decline in creditworthiness of the issuer, and (3) may
make it more difficult for the fund to assign a value of these instruments for
purposes of valuing the fund's portfolio and calculating its net asset value. In
order to lessen liquidity risk, the fund anticipates investing primarily in
direct debt instruments that are quoted and traded in the high yield market and
will not invest in these instruments if it would cause more than 15% of the
fund's net assets to be illiquid. Trade claims may also present a tax risk to
the fund.

The fund will not invest in trade claims if it effects the fund's qualification
as a regulated investment company under Subchapter M of the Internal Revenue
Code.

Dollar Roll Transactions. Dollar roll transactions consist of the sale by a fund
to a bank or broker/dealer (the "counterparty") of GNMA certificates or other
mortgage-backed securities together with a commitment to purchase from the
counterparty similar, but not identical, securities at a future date, at the
same price. The counterparty receives all principal and interest payments,
including prepayments, made on the security while it is the holder. A fund
receives a fee from the counterparty as consideration for entering into the
commitment to purchase. Dollar rolls may be renewed over a period of several
months with a different purchase and repurchase price fixed and a cash
settlement made at each renewal without physical delivery of securities.
Moreover, the transaction may be preceded by a firm commitment agreement
pursuant to which a fund agrees to buy a security on a future date.

A fund will segregate cash, US Government securities or other liquid assets in
an amount sufficient to meet their purchase obligations under the transactions.

Dollar rolls may be treated for purposes of the 1940 Act, as borrowings of a
fund because they involve the sale of a security coupled with an agreement to
repurchase. A dollar roll involves costs to a fund. For example, while a fund
receives a fee as consideration for agreeing to repurchase the security, a fund
forgoes the right to receive all principal and interest payments while the
counterparty holds the security. These payments to the counterparty may exceed
the fee received by a fund, thereby effectively charging a fund interest on its
borrowing. Further, although a fund can estimate the amount of expected
principal prepayment over the term of the dollar roll, a variation in the actual
amount of prepayment could increase or decrease the cost of a fund's borrowing.

The entry into dollar rolls involves potential risks of loss that are different
from those related to the securities underlying the transactions. For example,
if the counterparty becomes insolvent, a fund's right to purchase from the
counterparty might be restricted. Additionally, the value of such securities may
change adversely before a fund is able to purchase them. Similarly, a fund may
be required to purchase securities in connection with a dollar roll at a higher
price than may otherwise be available on the open market. Since, as noted above,
the counterparty is required to deliver a similar, but not identical security to
a fund, the security that a fund is required to buy under the dollar roll may be
worth less than an identical security. Finally, there can be no assurance that a
fund's use of the cash that it receives from a dollar roll will provide a return
that exceeds borrowing costs.

Equities as a result of workouts. A fund may hold equity securities received in
an exchange or workout of distressed lower-rated debt securities. A distressed
security is a security that is in default or in risk of being in default.


Eurodollar Instruments. A fund may make investments in Eurodollar instruments
for hedging purposes or to enhance potential gain. Eurodollar instruments are US
dollar-denominated futures contracts or options thereon which are linked to the
London Interbank Offered Rate ("LIBOR"), although foreign currency-denominated
instruments are available from time to time. Eurodollar futures contracts enable
purchasers to obtain a fixed rate for the lending of funds and sellers to obtain
a fixed rate for borrowings. A fund might use Eurodollar futures contracts and
options thereon to hedge against changes in LIBOR, to which many interest rate
swaps and fixed income instruments are linked.




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


Fixed Income Security Risk. Fixed income securities generally expose a fund to
five types of risk: (1) interest rate risk (the potential for fluctuations in
bond prices due to changing interest rates); (2) income risk (the potential for
a decline in the fund's income due to falling market interest rates); (3) credit
risk (the possibility that a bond issuer will fail to make timely payments of
either interest or principal to the fund); (4) prepayment risk or call risk (the
likelihood that, during periods of falling interest rates, securities with high
stated interest rates will be prepaid, or "called" prior to maturity, requiring
the fund to invest the proceeds at generally lower interest rates); and (5)
extension risk (the likelihood that as interest rates increase, slower than
expected principal payments may extend the average life of fixed income
securities, which will have the effect of locking in a below-market interest
rate, increasing the security's duration and reducing the value of the
security).


Foreign Currencies. Because investments in foreign securities will usually
involve currencies of foreign countries, and because a fund may hold foreign
currencies and forward foreign currency exchange contracts ("forward
contracts"), futures contracts, options on futures contracts on foreign
currencies and other currency-related instruments, the value of the assets of a
fund as measured in US dollars may be affected favorably or unfavorably by
changes in foreign currency exchange rates and exchange control regulations, and
a fund may incur costs in connection with conversions between various
currencies.

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

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

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

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

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

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

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

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

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

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

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

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

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

Foreign Securities. Investments in foreign securities involves certain special
considerations, including those set forth below, which are not typically
associated with investing in US securities and which may favorably or
unfavorably affect a fund's performance. As foreign companies are not generally
subject to uniform accounting, auditing and financial reporting standards,
practices and requirements comparable to those applicable to domestic companies,
there may be less publicly available information about a foreign company than
about a domestic company. Many foreign stock markets, while growing in volume of
trading activity, have substantially less volume than the New York Stock
Exchange, Inc. (the "Exchange"), and securities of some foreign companies are
less liquid and more volatile than securities of domestic companies. Similarly,
volume and liquidity in most foreign bond markets is less than in the US and at
times, volatility of price can be greater than in the US. Further, foreign
markets have different clearance and settlement procedures and in certain
markets there have been times when settlements have been unable to keep pace
with the volume of securities transactions, making it difficult to conduct such
transactions. Delays in settlement could result in temporary periods when assets
of a fund are uninvested and no return is earned thereon. The inability of a
fund to make intended security purchases due to settlement problems could cause
a fund to miss attractive investment opportunities. Inability to dispose of
portfolio securities due to settlement problems either could result in losses to
a fund due to subsequent declines in value of the portfolio security or, if a
fund has entered into a contract to sell the security, could result in a
possible liability to the purchaser. Payment for securities without delivery may
be required in certain foreign markets. Fixed commissions on some foreign stock
exchanges are generally higher than negotiated commissions on US exchanges,
although a fund will endeavor to achieve the most favorable net results on its
portfolio transactions. Further, a fund may encounter difficulties or be unable
to pursue legal remedies and obtain judgments in foreign courts. There is
generally less government supervision and regulation of business and industry
practices, stock exchanges, brokers and listed companies than in the US. It may
be more difficult for a fund's agents to keep currently informed about corporate
actions such as stock dividends or other matters which may affect the prices of
portfolio securities. Communications between the US and foreign countries may be
less reliable than within the US, thus increasing the risk of delayed
settlements of portfolio transactions or loss of certificates for portfolio
securities. In addition, with respect to certain foreign countries, there is the
possibility of expropriation or confiscatory taxation, political or social
instability, or diplomatic developments which could affect US investments in
those countries. Moreover, individual foreign economies may differ favorably or
unfavorably from the US economy in such respects as growth of gross national
product, rate of inflation, capital reinvestment, resource self-sufficiency and
balance of payments position. The management of a fund seeks to mitigate the
risks associated with the foregoing considerations through diversification and
continuous professional management.

Gold or Precious Metals Custody. Gold and other precious metals held by or on
behalf of a fund may be held on either an allocated or an unallocated basis
inside or outside the US. Placing gold or precious metals in an allocated
custody account gives the fund a direct interest in specified gold bars or
precious metals, whereas an unallocated deposit does not and instead gives the
Fund a right only to compel the counterparty to deliver a specific amount of
gold or precious metals, as applicable. Consequently, a fund could experience a
loss if the counterparty to an unallocated deposit arrangement becomes bankrupt
or fails to deliver the gold or precious metals as requested. An allocated gold
or precious metals custody account also involves the risk that the gold or
precious metals will be stolen or damaged while in transit. Both allocated and
unallocated arrangements require a fund as seller to deliver, either by book
entry or physically, the gold or precious metals sold in advance of the receipt
of payment.

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

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

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

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

Prices for high-yield may be affected by legislative and regulatory
developments. Also, Congress has from time to time considered legislation which
would restrict or eliminate the corporate tax deduction for interest payments in
these securities and regulate corporate restructurings. Such legislation may
significantly depress the prices of outstanding securities of this type.

A portion of the high-yield acquired by a fund will be purchased upon issuance,
which may involve special risks because the securities so acquired are new
issues. In such instances a fund may be a substantial purchaser of the issue and
therefore have the opportunity to participate in structuring the terms of the
offering. Although this may enable a fund to seek to protect itself against
certain of such risks, the considerations discussed herein would nevertheless
remain applicable.

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

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

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

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

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


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

Impact of Sub-Prime Mortgage Market. A fund may invest in mortgage-backed,
asset-backed and other fixed-income securities whose value and liquidity may be
adversely affected by the critical downturn in the sub-prime mortgage lending
market in the US. Sub-prime loans, which have higher interest rates, are made to
borrowers with low credit ratings or other factors that increase the risk of
default. Concerns about widespread defaults on sub-prime loans have also created
heightened volatility and turmoil in the general credit markets. As a result, a
fund's investments in certain fixed-income securities may decline in value,
their market value may be more difficult to determine, and a fund may have more
difficulty disposing of them.


Indexed Securities. A fund may invest in indexed securities, the value of which
is linked to currencies, interest rates, commodities, indices or other financial
indicators ("reference instruments"). Most indexed securities have maturities of
three years or less.

Indexed securities differ from other types of debt securities in which a fund
may invest in several respects. First, the interest rate or, unlike other debt
securities, the principal amount payable at maturity of an indexed security may
vary based on changes in one or more specified reference instruments, such as an
interest rate compared with a fixed interest rate or the currency exchange rates
between two currencies (neither of which need be the currency in which the
instrument is denominated). The reference instrument need not be related to the
terms of the indexed security. For example, the principal amount of a US dollar
denominated indexed security may vary based on the exchange rate of two foreign
currencies. An indexed security may be positively or negatively indexed; that
is, its value may increase or decrease if the value of the reference instrument
increases. Further, the change in the principal amount payable or the interest
rate of an indexed security may be a multiple of the percentage change (positive
or negative) in the value of the underlying reference instrument(s).

Investment in indexed securities involves certain risks. In addition to the
credit risk of the security's issuer and the normal risks of price changes in
response to changes in interest rates, the principal amount of indexed
securities may decrease as a result of changes in the value of reference
instruments. Further, in the case of certain indexed securities in which the
interest rate is linked to a reference instrument, the interest rate may be
reduced to zero, and any further declines in the value of the security may then
reduce the principal amount payable on maturity. Finally, indexed securities may
be more volatile than the reference instruments underlying the indexed
securities.

Inflation-Indexed Instruments. A fund may purchase inflation-indexed securities
issued by the US Treasury, US government agencies and instrumentalities other
than the US Treasury, and entities other than the US Treasury or US government
agencies and instrumentalities.

Inflation-indexed bonds are fixed income securities or other instruments whose
principal value is periodically adjusted according to the rate of inflation. Two
structures are common. The US Treasury and some other issuers use a structure
that accrues inflation on either a current or lagged basis into the principal
value of the bond. Most other issuers pay out the price index accruals as part
of a semi-annual coupon.

Inflation-indexed securities issued by the US Treasury have maturities of five,
ten or thirty years, although it is possible that securities with other
maturities will be issued in the future. The US Treasury securities pay interest
on a semi-annual basis, equal to a fixed percentage of the inflation-adjusted
principal amount. For example, if a Fund purchased an inflation-indexed bond
with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%
semi-annually), and calculated inflation over the first six months was 1%, the
mid-year value of the bond would be $1,010 and the first semi-annual interest
payment would be $15.15 ($1,010 times 1.5%). If calculated inflation during the
second half of the year resulted in the whole year's inflation equaling 3%, the
end of year value of the bond would be $1,030 and the second semi-annual
interest payment would be $15.45 ($1,030 times 1.5%).

If the periodic adjustment rate measuring inflation falls, the principal value
of inflation-indexed bonds will be adjusted downward, and, consequently, the
interest payable on these securities (calculated with respect to a smaller
principal amount) will be reduced. Repayment of the original bond principal on
maturity (as adjusted for inflation) is guaranteed in the case of US Treasury
inflation-indexed bonds, even during a period of deflation. However, the current
market value of the bonds is not guaranteed and will fluctuate. A fund may also
invest in other inflation related bonds that may or may not provide a similar
guarantee. If a guarantee of principal is not provided, the adjusted principal
value of the bond repaid at maturity may be less than the original principal. In
addition, if a fund purchases inflation-indexed bonds offered by foreign
issuers, the rate of inflation measured by the foreign inflation index may not
be correlated to the rate of inflation in the US.

The value of inflation-indexed bonds is expected to change in response to
changes in real interest rates. Real interest rates, in turn, are tied to the
relationship between nominal interest rates and the rate of inflation.
Therefore, if inflation were to rise at a faster rate than nominal interest
rates, real interest rates might decline, leading to an increase in value of
inflation-indexed bonds. In contrast, if nominal interest rates increased at a
faster rate than inflation, real interest rates might rise, leading to a
decrease in value of inflation-indexed bonds. There can be no assurance,
however, that the value of inflation-indexed bonds will be directly correlated
to changes in interest rates.

While these securities are expected to be protected from long-term inflationary
trends, short-term increases in inflation may lead to a decline in value. If
interest rates rise due to reasons other than inflation (for example, due to
changes in currency exchange rates), investors in these securities may not be
protected to the extent that the increase is not reflected in the bond's
inflation measure.

In general, the measure used to determine the periodic adjustment of US
inflation-indexed bonds is the Consumer Price Index for Urban Consumers
("CPI-U"), which is calculated monthly by the US Bureau of Labor Statistics. The
CPI-U is a measurement of changes in the cost of living, made up of components
such as housing, food, transportation and energy. The inflation adjustment to
the securities references this index with a three month lag. Inflation-indexed
bonds issued by a foreign government are generally adjusted to reflect a
comparable inflation index calculate by the applicable government. There can be
no assurance that the CPI-U or any foreign inflation index will accurately
measure the real rate of inflation in the prices of goods and services.
Moreover, there can be no assurance that the rate of inflation in a foreign
country will be correlated to the rate of inflation in the US. Finally, income
distributions of a fund are likely to fluctuate more than those of a
conventional bond fund.

The taxation of inflation-indexed US Treasury securities is similar to the
taxation of conventional bonds. Both interest payments and the difference
between original principal and the inflation-adjusted principal will be treated
as interest income subject to taxation. Interest payments are taxable when
received or accrued. The inflation adjustment to the principal is subject to tax
in the year the adjustment is made, not at maturity of the security when the
cash from the repayment of principal is received. If an upward adjustment has
been made (which typically should happen), investors in non-tax-deferred
accounts will pay taxes on this amount currently. Decreases in the indexed
principal can be deducted only from current or previous interest payments
reported as income.

Inflation-indexed US Treasury securities therefore have a potential cash flow
mismatch to an investor, because investors must pay taxes on the
inflation-adjusted principal before the repayment of principal is received. It
is possible that, particularly for high income tax bracket investors,
inflation-indexed US Treasury securities would not generate enough income in a
given year to cover the tax liability they could create. This is similar to the
current tax treatment for zero-coupon bonds and other discount securities. If
inflation-indexed US Treasury securities are sold prior to maturity, capital
losses or gains are realized in the same manner as traditional bonds.

Inflation-indexed securities are designed to offer a return linked to inflation,
thereby protecting future purchasing power of the money invested in them.
However, inflation-indexed securities provide this protected return only if held
to maturity. In addition, inflation-indexed securities may not trade at par
value. Real interest rates (the market rate of interest less the anticipated
rate of inflation) change over time as a result of many factors, such as what
investors are demanding as a true value for money. When real rates do change,
inflation-indexed securities prices will be more sensitive to these changes than
conventional bonds, because these securities were sold originally based upon a
real interest rate that is no longer prevailing. Should market expectations for
real interest rates rise, the price of inflation-indexed securities and the
share price of a Fund may fall. Investors in the fund should be prepared to
accept not only this share price volatility but also the possible adverse tax
consequences it may cause.

An investment in securities featuring inflation-adjusted principal and/or
interest involves factors not associated with more traditional fixed-principal
securities. Such factors include the possibility that the inflation index may be
subject to significant changes, that changes in the index may or may not
correlate to changes in interest rates generally or changes in other indices, or
that the resulting interest may be greater or less than that payable on other
securities of similar maturities. In the event of sustained deflation, it is
possible that the amount of semiannual interest payments, the inflation-adjusted
principal of the security and the value of the stripped components, will
decrease. If any of these possibilities are realized, a Fund's net asset value
could be negatively affected.

Interfund Borrowing and Lending Program. Each fund has received exemptive relief
from the Securities and Exchange Commission (the "SEC"), which permits the funds
to participate in an interfund-lending program among certain investment
companies advised by the Advisor. The interfund-lending program allows the
participating funds to borrow money from and loan money to each other for
temporary or emergency purposes. The program is subject to a number of
conditions designed to ensure fair and equitable treatment of all participating
funds, including the following: (1) no fund may borrow money through the program
unless it receives a more favorable interest rate than a rate approximating the
lowest interest rate at which bank loans would be available to any of the
participating funds under a loan agreement; and (2) no fund may lend money
through the program unless it receives a more favorable return than that
available from an investment in repurchase agreements and, to the extent
applicable, money market cash sweep arrangements. In addition, a fund may
participate in the program only if and to the extent that such participation is
consistent with a fund's investment objectives and policies (for instance, money
market funds would normally participate only as lenders and tax exempt funds
only as borrowers). Interfund loans and borrowings may extend overnight, but
could have a maximum duration of seven days. Loans may be called on one day's
notice. A fund may have to borrow from a bank at a higher interest rate if an
interfund loan is called or not renewed. Any delay in repayment to a lending
fund could result in a lost investment opportunity or additional costs. The
program is subject to the oversight and periodic review of the Boards of the
participating funds. To the extent the funds are actually engaged in borrowing
through the interfund lending program, such borrowings will comply with each
fund's non-fundamental policies.

Inverse Floaters. A fund may invest in inverse floaters. Inverse floaters are
debt instruments with a floating rate of interest that bears an inverse
relationship to changes in short-term market interest rates. Investments in this
type of security involve special risks as compared to investments in, for
example, a fixed rate municipal security. A fund could lose money and its NAV
could decline if movements in interest rates are incorrectly anticipated.
Moreover, the markets for securities of this type may be less developed and may
have less liquidity than the markets for more traditional municipal securities.

Investing in Emerging Markets. A fund's investments in foreign securities may be
in developed countries or in countries considered by a fund's advisor to have
developing or "emerging" markets, which involves exposure to economic structures
that are generally less diverse and mature than in the United States, and to
political systems that may be less stable. A developing or emerging market
country can be considered to be a country that is in the initial stages of its
industrialization cycle. Currently, emerging markets generally include every
country in the world other than the United States, Canada, Japan, Australia, New
Zealand, Hong Kong, Singapore and most Western European countries. Currently,
investing in many emerging markets may not be desirable or feasible because of
the lack of adequate custody arrangements for a fund's assets, overly burdensome
repatriation and similar restrictions, the lack of organized and liquid
securities markets, unacceptable political risks or other reasons. As
opportunities to invest in securities in emerging markets develop, a fund may
expand and further broaden the group of emerging markets in which it invests. In
the past, markets of developing or emerging market countries have been more
volatile than the markets of developed countries; however, such markets often
have provided higher rates of return to investors. The advisor believes that
these characteristics may be expected to continue in the future.

Most emerging securities markets have substantially less volume and are subject
to less governmental supervision than US securities markets. Securities of many
issuers in emerging markets may be less liquid and more volatile than securities
of comparable domestic issuers. In addition, there is less regulation of
securities exchanges, securities dealers, and listed and unlisted companies in
emerging markets than in the US.

Emerging markets also have different clearance and settlement procedures, and in
certain markets there have been times when settlements have not kept pace with
the volume of securities transactions. Delays in settlement could result in
temporary periods when a portion of the assets of a fund is uninvested and no
return is earned thereon. The inability of a fund to make intended security
purchases due to settlement problems could cause a fund to miss attractive
investment opportunities. Inability to dispose of portfolio securities due to
settlement problems could result either in losses to a fund due to subsequent
declines in value of the portfolio security or, if a fund has entered into a
contract to sell the security, could result in possible liability to the
purchaser. Costs associated with transactions in foreign securities are
generally higher than costs associated with transactions in US securities. Such
transactions also involve additional costs for the purchase or sale of foreign
currency.

Certain emerging markets require prior governmental approval of investments by
foreign persons, limit the amount of investment by foreign persons in a
particular company, limit the investment by foreign persons only to a specific
class of securities of a company that may have less advantageous rights than the
classes available for purchase by domiciliaries of the countries and/or impose
additional taxes on foreign investors. Certain emerging markets may also
restrict investment opportunities in issuers in industries deemed important to
national interest.

Certain emerging markets may require governmental approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign
investors. In addition, if a deterioration occurs in an emerging market's
balance of payments or for other reasons, a country could impose temporary
restrictions on foreign capital remittances. A fund could be adversely affected
by delays in, or a refusal to grant, any required governmental approval for
repatriation of capital, as well as by the application to a fund of any
restrictions on investments.

In the course of investment in emerging markets, a fund will be exposed to the
direct or indirect consequences of political, social and economic changes in one
or more emerging markets. While a fund will manage its assets in a manner that
will seek to minimize the exposure to such risks, there can be no assurance that
adverse political, social or economic changes will not cause a fund to suffer a
loss of value in respect of the securities in a fund's portfolio.

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

Volume and liquidity in most foreign markets are less than in the US, and
securities of many foreign companies are less liquid and more volatile than
securities of comparable US companies. Fixed commissions on foreign securities
exchanges are generally higher than negotiated commissions on US exchanges,
although a fund endeavors to achieve the most favorable net results on its
portfolio transactions. There is generally less government supervision and
regulation of business and industry practices, securities exchanges, brokers,
dealers and listed companies than in the US Mail service between the US and
foreign countries may be slower or less reliable than within the US, thus
increasing the risk of delayed settlements of portfolio transactions or loss of
certificates for certificated portfolio securities. In addition, with respect to
certain emerging markets, there is the possibility of expropriation or
confiscatory taxation, political or social instability, or diplomatic
developments which could affect a fund's investments in those countries.
Moreover, individual emerging market economies may differ favorably or
unfavorably from the US economy in such respects as growth of gross national
product, rate of inflation, capital reinvestment, resource self-sufficiency and
balance of payments position.

A fund may have limited legal recourse in the event of a default with respect to
certain debt obligations it holds. If the issuer of a fixed-income security
owned by a fund defaults, a fund may incur additional expenses to seek recovery.
Debt obligations issued by emerging market country governments differ from debt
obligations of private entities; remedies from defaults on debt obligations
issued by emerging market governments, unlike those on private debt, must be
pursued in the courts of the defaulting party itself. A fund's ability to
enforce its rights against private issuers may be limited. The ability to attach
assets to enforce a judgment may be limited. Legal recourse is therefore
somewhat diminished. Bankruptcy, moratorium and other similar laws applicable to
private issuers of debt obligations may be substantially different from those of
other countries. The political context, expressed as an emerging market
governmental issuer's willingness to meet the terms of the debt obligation, for
example, is of considerable importance. In addition, no assurance can be given
that the holders of commercial bank debt may not contest payments to the holders
of debt obligations in the event of default under commercial bank loan
agreements.

Income from securities held by a fund could be reduced by a withholding tax at
the source or other taxes imposed by the emerging market countries in which a
fund makes its investments. A fund's net asset value may also be affected by
changes in the rates or methods of taxation applicable to a fund or to entities
in which a fund has invested. The Advisor will consider the cost of any taxes in
determining whether to acquire any particular investments, but can provide no
assurance that the taxes will not be subject to change.

Many emerging markets have experienced substantial, and, in some periods,
extremely high rates of inflation for many years. Inflation and rapid
fluctuations in inflation rates have had and may continue to have adverse
effects on the economies and securities markets of certain emerging market
countries. In an attempt to control inflation, wage and price controls have been
imposed in certain countries. Of these countries, some, in recent years, have
begun to control inflation through prudent economic policies.

Emerging market governmental issuers are among the largest debtors to commercial
banks, foreign governments, international financial organizations and other
financial institutions. Certain emerging market governmental issuers have not
been able to make payments of interest on or principal of debt obligations as
those payments have come due. Obligations arising from past restructuring
agreements may affect the economic performance and political and social
stability of those issuers.

Governments of many emerging market countries have exercised and continue to
exercise substantial influence over many aspects of the private sector through
the ownership or control of many companies, including some of the largest in any
given country. As a result, government actions in the future could have a
significant effect on economic conditions in emerging markets, which in turn,
may adversely affect companies in the private sector, general market conditions
and prices and yields of certain of the securities in a fund's portfolio.
Expropriation, confiscatory taxation, nationalization, political, economic or
social instability or other similar developments have occurred frequently over
the history of certain emerging markets and could adversely affect a fund's
assets should these conditions recur.

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

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

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

Investment Company Securities. A fund may acquire securities of other investment
companies to the extent consistent with its investment objective and the
limitations of the 1940 Act. A fund will indirectly bear its proportionate share
of any management fees and other expenses paid by such other investment
companies.

For example, a fund may invest in a variety of investment companies which seek
to track the composition and performance of specific indexes or a specific
portion of an index. These index-based investments hold substantially all of
their assets in securities representing their specific index. Accordingly, the
main risk of investing in index-based investments is the same as investing in a
portfolio of equity securities comprising the index. The market prices of
index-based investments will fluctuate in accordance with both changes in the
market value of their underlying portfolio securities and due to supply and
demand for the instruments on the exchanges on which they are traded (which may
result in their trading at a discount or premium to their NAVs). Index-based
investments may not replicate exactly the performance of their specified index
because of transaction costs and because of the temporary unavailability of
certain component securities of the index. In addition, an index-based
investment tracking a specific sector may be adversely affected by the
performance of that specific sector or group of industries on which it is based.

Investment-Grade Bonds. When the Advisor believes that it is appropriate to do
so in order to achieve a fund's objectives, a fund may purchase
"investment-grade" bonds, which are those rated Aaa, Aa, A or Baa by Moody's or
AAA, AA, A or BBB by S&P or, if unrated, judged to be of equivalent quality as
determined by the Advisor. Moody's considers bonds it rates Baa to have
speculative elements as well as investment-grade characteristics. To the extent
that a fund invests in higher-grade securities, a fund will not be able to avail
itself of opportunities for higher income which may be available at lower
grades.

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

IPO Risk. Securities issued through an initial public offering (IPO) can
experience an immediate drop in value if the demand for the securities does not
continue to support the offering price. Information about the issuers of IPO
securities is also difficult to acquire since they are new to the market and may
not have lengthy operating histories. The fund may engage in short-term trading
in connection with its IPO investments, which could produce higher trading costs
and adverse tax consequences. The number of securities issued in an IPO is
limited, so it is likely that IPO securities will represent a smaller component
of a fund's portfolio as the fund's assets increase (and thus have a more
limited effect on the fund's performance).


Lending of Portfolio Securities. A fund may lend its investment securities to
approved institutional borrowers who need to borrow securities in order to
complete certain transactions, such as covering short sales, avoiding failures
to deliver securities or completing arbitrage operations. By lending its
investment securities, the fund attempts to increase its net investment income
through the receipt of interest on the loan. Any gain or loss in the market
price of the securities loaned that might occur during the term of the loan
would belong to the fund. A fund may lend its investment securities so long as
the terms, structure and the aggregate amount of such loans are not inconsistent
with the 1940 Act or the rules and regulations or interpretations of the SEC
thereunder, which currently require, among other things, that (a) the borrower
pledge and maintain with the fund collateral consisting of liquid, unencumbered
assets having a value at all times not less than 100% of the value of the
securities loaned, (b) the borrower add to such collateral whenever the price of
the securities loaned rises (i.e., the borrower "marks to the market" on a daily
basis), (c) the loan be made subject to termination by the fund at any time, and
(d) the fund receives reasonable interest on the loan (which may include the
fund investing any cash collateral in interest bearing short-term investments),
and distributions on the loaned securities and any increase in their market
value. The fund will bear any losses incurred from the investment of the
collateral it receives. There may be risks of delay in recovery of the
securities or even loss of rights in the collateral should the borrower of the
securities fail financially. However, loans will be made only to borrowers
selected by the fund's delegate after a commercially reasonable review of
relevant facts and circumstances, including the creditworthiness of the
borrower.

A fund may pay negotiated fees in connection with loaned securities, pursuant to
written contracts. In addition, voting rights may pass with the loaned
securities, but if a material event occurs affecting an investment on loan, the
loan must be called and the securities voted. Pursuant to an exemptive order
granted by the SEC, cash collateral received by the fund may be invested in a
money market fund managed by the Advisor (or one of its affiliates).




Letters of Credit. Municipal obligations, including certificates of
participation, commercial paper and other short-term obligations, may be backed
by an irrevocable letter of credit of a bank which assumes the obligation for
payment of principal and interest in the event of default by the issuer. Only
banks which, in the opinion of the Advisor, are of investment quality comparable
to other permitted investments of a fund may be used for letter of credit backed
investments.

Loan Participations and Assignments. A fund may invest in fixed- and
floating-rate loans ("Loans") arranged through private negotiations between an
issuer of emerging market debt instruments and one or more financial
institutions ("Lenders"). A fund's investments in Loans are expected in most
instances to be in the form of participations in Loans ("Participations") and
assignments of portions of Loans ("Assignments") from third parties.
Participations typically will result in a fund having a contractual relationship
only with the Lender and not with the borrower. A fund will have the right to
receive payments of principal, interest and any fees to which it is entitled
only from the Lender selling the Participation and only upon receipt by the
Lender of the payments from the borrower. In connection with purchasing
Participations, a fund generally will have no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the Loan, nor any
rights of set-off against the borrower, and a fund may not directly benefit from
any collateral supporting the Loan in which it has purchased the Participation.
As a result, a fund will assume the credit risk of both the borrower and the
Lender that is selling the Participation. In the event of the insolvency of the
Lender selling a Participation, a fund may be treated as a general creditor of
the Lender and may not benefit from any set-off between the Lender and the
borrower. A fund will acquire Participations only if the Lender interpositioned
between a fund and the borrower is determined by the Advisor to be creditworthy.

When a fund purchases Assignments from Lenders, it will acquire direct rights
against the borrower on the Loan. Because Assignments are arranged through
private negotiations between potential assignees and potential assignors,
however, the rights and obligations acquired by a fund as the purchaser of an
Assignment may differ from, and may be more limited than, those held by the
assigning Lender.

A fund may have difficulty disposing of Assignments and Participations. Because
no liquid market for these obligations typically exists, a fund anticipates that
these obligations could be sold only to a limited number of institutional
investors. The lack of a liquid secondary market will have an adverse effect on
a fund's ability to dispose of particular Assignments or Participations when
necessary to meet a fund's liquidity needs or in response to a specific economic
event, such as a deterioration in the creditworthiness of the borrower. The lack
of a liquid secondary market for Assignments and Participations may also make it
more difficult for a fund to assign a value to those securities for purposes of
valuing a fund's portfolio and calculating its net asset value.

Maintenance of $1.00 Net Asset Value, Credit Quality and Portfolio Maturity.
Pursuant to Rule 2a-7 of the 1940 Act, money market funds effect sales,
redemptions and repurchases at the net asset value per share, normally $1.00. In
fulfillment of their responsibilities under that Rule, a fund's Board has
approved policies established by a fund's Advisor reasonably calculated to
prevent a fund's net asset value per share from deviating from $1.00 except
under unusual or extraordinary circumstances and a fund's Board will
periodically review the Advisor's operations under such policies at regularly
scheduled Board meetings. Those policies include a weekly monitoring by the
Advisor of unrealized gains and losses in a fund's portfolio, and when
necessary, in an effort to avoid deviation, taking corrective action, such as
adjusting the maturity of the portfolio, or, if possible, realizing gains or
losses to offset in part unrealized losses or gains. The result of those
policies may be that the yield on shares of a fund will be lower than would be
the case if the policies were not in effect. Such policies also provide for
certain action to be taken with respect to portfolio securities which experience
a downgrade in rating or suffer a default.

Securities eligible for investment by a fund are those securities which are
generally rated (or issued by an issuer with comparable securities rated) in the
highest short-term rating category by at least two rating services (or by one
rating service, if no other rating agency has issued a rating with respect to
that security). These securities are known as "first tier securities."
Securities generally rated (or issued by an issuer with comparable securities
rated) in the top two categories by at least two rating agencies (or one, if
only one rating agency has rated the security) which do not qualify as first
tier securities are known as "second tier securities." To ensure diversity of a
fund's investments, a fund will not invest more than 5% of its total assets in
the securities of a single issuer, other than the US Government. A fund may,
however, invest more than 5% of its total assets in the first tier securities of
a single issuer for a period of up to three business days after purchase,
although a fund may not make more than one such investment at any time during
such period. A fund may not invest more than 5% of its total assets in
securities which were second tier securities when acquired by a fund. Further, a
fund may not invest more than the greater of (1) 1% of its total assets, or (2)
one million dollars, in the securities of a single issuer which were second tier
securities when acquired by a fund.

The assets of a fund consist entirely of cash items and investments having a
stated maturity date of 397 calendar days or less from the date of purchase
(including investment in repurchase agreements, in which case maturity is
measured by the repurchase date, without respect to the maturity of the
obligation). The term "Government securities," as used herein, means securities
issued or guaranteed as to principal or interest by the US Government, its
agencies or instrumentalities. The portfolio of a fund will be managed so that
the average maturity of all instruments (on a dollar-weighted basis) will be 90
days or less. The average maturity of a fund will vary according to the
management's appraisal of money market conditions. A fund will invest only in
securities determined by or under the direction of the Board to be of high
quality with minimal credit risks.

Micro-Cap Company Risk. While, historically, micro-capitalization company stocks
have outperformed the stocks of large companies, the former have customarily
involved more investment risk as well. There can be no assurance that this will
continue to be true in the future. Micro-capitalization companies may have
limited product lines, markets or financial resources; may lack management depth
or experience; and may be more vulnerable to adverse general market or economic
developments than large companies. The prices of micro-capitalization company
securities are often more volatile than prices associated with large company
issues, and can display abrupt or erratic movements at times, due to limited
trading volumes and less publicly available information.

Also, because micro-capitalization companies normally have fewer shares
outstanding and these shares trade less frequently than large companies, it may
be more difficult for a fund to buy and sell significant amounts of such shares
without an unfavorable impact on prevailing market prices.

Some of the companies in which a fund may invest may distribute, sell or produce
products which have recently been brought to market and may be dependent on key
personnel. The securities of micro-capitalization companies are often traded
over-the-counter and may not be traded in the volumes typical on a national
securities exchange. Consequently, in order to sell this type of holding, a fund
may need to discount the securities from recent prices or dispose of the
securities over a long period of time.

Mining and Exploration. The business of gold mining by its nature involves
significant risks and hazards, including environmental hazards, industrial
accidents, labor disputes, discharge of toxic chemicals, fire, drought, flooding
and natural acts. The occurrence of any of these hazards can delay production,
increase production costs and result in liability to the operator of the mines.
A mining operation may become subject to liability for pollution or other
hazards against which it has not insured or cannot insure, including those in
respect of past mining activities for which it was not responsible.


Exploration for gold and other precious metals is speculative in nature,
involves many risks and frequently is unsuccessful. There can be no assurance
that any mineralisation discovered will result in an increase in the proven and
probable reserves of a mining operation. If reserves are developed, it can take
a number of years from the initial phases of drilling and identification of
mineralisation until production is possible, during which time the economic
feasibility of production may change. Substantial expenditures are required to
establish ore reserves properties and to construct mining and processing
facilities. As a result of these uncertainties, no assurance can be given that
the exploration programs undertaken by a particular mining operation will
actually result in any new commercial mining.


Mortgage-Backed Securities and Mortgage Pass-Through Securities. Mortgage-backed
securities are interests in pools of mortgage loans, including mortgage loans
made by savings and loan institutions, mortgage bankers, commercial banks and
others. Pools of mortgage loans are assembled as securities for sale to
investors by various governmental, government-related and private organizations
as further described below. Underlying mortgages may be of a variety of types,
including adjustable rate, conventional 30-year, graduated payment and 15-year.

A decline in interest rates may lead to a faster rate of repayment of the
underlying mortgages, and may expose a fund to a lower rate of return upon
reinvestment. To the extent that such mortgage-backed securities are held by a
fund, the prepayment right will tend to limit to some degree the increase in net
asset value of a fund because the value of the mortgage-backed securities held
by a fund may not appreciate as rapidly as the price of non-callable debt
securities. Mortgage-backed securities are subject to the risk of prepayment and
the risk that the underlying loans will not be repaid. Because principal may be
prepaid at any time, mortgage-backed securities may involve significantly
greater price and yield volatility than traditional debt securities.

When interest rates rise, mortgage prepayment rates tend to decline, thus
lengthening the life of a mortgage-related security and increasing the price
volatility of that security, affecting the price volatility of a fund's shares.

Interests in pools of mortgage-backed securities differ from other forms of debt
securities, which normally provide for periodic payment of interest in fixed
amounts with principal payments at maturity or specified call dates. Instead,
these securities provide a monthly payment which consists of both interest and
principal payments. In effect, these payments are a "pass-through" of the
monthly payments made by the individual borrowers on their mortgage loans, net
of any fees paid to the issuer or guarantor of such securities. Additional
payments are caused by repayments of principal resulting from the sale of the
underlying property, refinancing or foreclosure, net of fees or costs which may
be incurred. Some mortgage-related securities (such as securities issued by the
Government National Mortgage Association ("GNMA")) are described as "modified
pass-through." These securities entitle the holder to receive all interest and
principal payments owed on the mortgage pool, net of certain fees, at the
scheduled payment dates regardless of whether or not the mortgagor actually
makes the payment.

The principal governmental guarantor of mortgage-related securities is GNMA.
GNMA is a wholly owned US Government corporation within the Department of
Housing and Urban Development. GNMA is authorized to guarantee, with the full
faith and credit of the US Government, the timely payment of principal and
interest on securities issued by institutions approved by GNMA (such as savings
and loan institutions, commercial banks and mortgage bankers) and backed by
pools of FHA-insured or VA-guaranteed mortgages. These guarantees, however, do
not apply to the market value or yield of mortgage-backed securities or to the
value of fund shares. Also, GNMA securities often are purchased at a premium
over the maturity value of the underlying mortgages. This premium is not
guaranteed and will be lost if prepayment occurs.

Government-related guarantors (i.e., not backed by the full faith and credit of
the US Government) include Fannie Mae and the Federal Home Loan Mortgage
Corporation ("FHLMC"). Fannie Mae is a government-sponsored corporation owned
entirely by private stockholders. It is subject to general regulation by the
Secretary of Housing and Urban Development. Fannie Mae purchases conventional
(i.e., not insured or guaranteed by any government agency) mortgages from a list
of approved seller/servicers which include state and federally chartered savings
and loan associations, mutual savings banks, commercial banks and credit unions
and mortgage bankers. Pass-through securities issued by Fannie Mae are
guaranteed as to timely payment of principal and interest by Fannie Mae but are
not backed by the full faith and credit of the US Government.

FHLMC is a corporate instrumentality of the US Government and was created by
Congress in 1970 for the purpose of increasing the availability of mortgage
credit for residential housing. Its stock is owned by the twelve Federal Home
Loan Banks. FHLMC issues Participation Certificates ("PCs") which represent
interests in conventional mortgages from FHLMC's national portfolio. FHLMC
guarantees the timely payment of interest and ultimate collection of principal,
but PCs are not backed by the full faith and credit of the US Government.


Mortgage-backed securities may be issued or guaranteed by GNMA, FNMA (also known
as Fannie Mae) and FHLMC (also known as Freddie Mac), but also may be issued or
guaranteed by other issuers, including private companies. GNMA is a
government-owned corporation that is an agency of the U.S. Department of Housing
and Urban Development. It guarantees, with the full faith and credit of the
United States, full and timely payment of all monthly principal and interest on
its mortgage-backed securities. Until recently, FNMA and FHLMC were
government-sponsored corporations owned entirely by private stockholders. Both
issue mortgage-related securities that contain guarantees as to timely payment
of interest and principal but that are not backed by the full faith and credit
of the U.S. government. The value of the companies' securities fell sharply in
2008 due to concerns that the firms did not have sufficient capital to offset
losses. In mid-2008, the U.S. Treasury was authorized to increase the size of
home loans that FNMA and FHLMC could purchase in certain residential areas and,
until 2009, to lend FNMA and FHLMC emergency funds and to purchase the
companies' stock. More recently, in September 2008, the U.S. Treasury announced
that FNMA and FHLMC had been placed in conservatorship by the Federal Housing
Finance Agency ("FHFA"), a newly created independent regulator. In addition to
placing the companies in conservatorship, the U.S. Treasury announced three
additional steps that it intended to take with respect to FNMA and FHLMC. First,
the U.S. Treasury has entered into preferred stock purchase agreements ("PSPAs")
under which, if the FHFA determines that FNMA's or FHLMC's liabilities have
exceeded its assets under generally accepted accounting principles, the U.S.
Treasury will contribute cash capital to the company in an amount equal to the
difference between liabilities and assets. The PSPAs are designed to provide
protection to the senior and subordinated debt and the mortgage-backed
securities issued by FNMA and FHLMC. Second, the U.S. Treasury established a new
secured lending credit facility that is available to FNMA and FHLMC until
December 2009. Third, the U.S. Treasury initiated a temporary program to
purchase FNMA and FHLMC mortgage-backed securities, which is expected to
continue until December 2009. No assurance can be given that the U.S. Treasury
initiatives discussed above with respect to the debt and mortgage-backed
securities issued by FNMA and FHLMC will be successful.


Commercial banks, savings and loan institutions, private mortgage insurance
companies, mortgage bankers and other secondary market issuers also create
pass-through pools of conventional mortgage loans. Such issuers may, in
addition, be the originators and/or servicers of the underlying mortgage loans
as well as the guarantors of the mortgage-related securities. Pools created by
such non-governmental issuers generally offer a higher rate of interest than
government and government-related pools because there are no direct or indirect
government or agency guarantees of payments. However, timely payment of interest
and principal of these pools may be supported by various forms of insurance or
guarantees, including individual loan, title, pool and hazard insurance and
letters of credit. The insurance and guarantees are issued by governmental
entities, private insurers and the mortgage poolers. Such insurance and
guarantees and the creditworthiness of the issuers thereof will be considered in
determining whether a mortgage-related security meets a fund's investment
quality standards. There can be no assurance that the private insurers or
guarantors can meet their obligations under the insurance policies or guarantee
arrangements. A fund may buy mortgage-related securities without insurance or
guarantees, if through an examination of the loan experience and practices of
the originators/servicers and poolers, the underlying fund's advisor determines
that the securities meet a fund's quality standards. Although the market for
such securities is becoming increasingly liquid, securities issued by certain
private organizations may not be readily marketable.

Mortgage Dollar Rolls. A fund may enter into mortgage "dollar rolls" in which a
fund sells securities for delivery in the current month and simultaneously
contracts to repurchase substantially similar, but not identical (same type,
coupon and maturity), securities on a specified future date. During the roll
period, a fund forgoes principal and interest paid on the securities. A fund is
compensated by the difference between the current sales price and the lower
forward price for the future purchase (often referred to as the "drop") or fee
income and by the interest earned on the cash proceeds of the initial sale. A
"covered roll" is a specific type of dollar roll for which there is an
offsetting cash position or a cash equivalent security position which matures on
or before the forward settlement date of the dollar roll transaction. A fund may
enter into both covered and uncovered rolls. At the time a Fund enters into a
dollar roll transaction, it will segregate with an approved custodian cash or
liquid securities having a value not less than the repurchase price (including
accrued interest) and will subsequently monitor the segregated assets to ensure
that its value is maintained.


Municipal Securities. A fund may invest to a limited extent in municipal
securities. Municipal securities consist of bonds, notes and other instruments
issued by or on behalf of states, territories and possessions of the US
(including the District of Columbia) and their political subdivisions, agencies
or instrumentalities, the interest on which is exempt from regular US federal
income tax (i.e., excluded from gross income for US federal income tax purposes
but not necessarily exempt from the federal alternative minimum tax or from
state and local taxes). Municipal securities may also be issued on a taxable
basis (i.e., the interest on such securities is not exempt from regular US
federal income tax).


Municipal securities are often issued to obtain funds for various public
purposes, including the construction of a wide range of public facilities such
as bridges, highways, housing, hospitals, mass transportation, schools, streets
and water and sewer works. Other public purposes for which municipal securities
may be issued include refunding outstanding obligations, obtaining funds for
general operating expenses, and obtaining funds to lend to other public
institutions and facilities. Municipal securities also include "private
activity" or industrial development bonds, which are issued by or on behalf of
public authorities to provide financing aid to acquire sites or construct or
equip facilities within a municipality for privately or publicly owned
corporations.

The two principal classifications of municipal securities are "general
obligations" and "revenue obligations". General obligations are secured by the
issuer's pledge of its full faith and credit for the payment of principal and
interest although the characteristics and enforcement of general obligations may
vary according to the law applicable to the particular issuer. Revenue
obligations, which include, but are not limited to, private activity bonds,
resource recovery bonds, certificates of participation and certain municipal
notes, are not backed by the credit and taxing authority of the issuer and are
payable solely from the revenues derived from a particular facility or class of
facilities or, in some cases, from the proceeds of a special excise or other
specific revenue source. Nevertheless, the obligations of the issuer may also be
backed by a letter of credit, guarantee or insurance. General obligations and
revenue obligations may be issued in a variety of forms, including commercial
paper, fixed, variable and floating rate securities, tender option bonds,
auction rate bonds and capital appreciation bonds.

In addition to general obligations and revenue obligations, there are a variety
of hybrid and special types of municipal securities. There are also numerous
differences in the credit backing of municipal securities both within and
between these two principal classifications.

For the purpose of applying a fund's investment restrictions, the identification
of the issuer of a municipal security which is not a general obligation is made
by the Advisor based on the characteristics of the municipal security, the most
important of which is the source of funds for the payment of principal and
interest on such securities.

One or a small number of institutional investors such as a fund may purchase an
entire issue of municipal securities. Thus, the issue may not be said to be
publicly offered. Unlike some securities that are not publicly offered, a
secondary market exists for many municipal securities that were not publicly
offered initially and such securities can be readily marketable.

The obligations of an issuer to pay the principal of and interest on a municipal
security are subject to the provisions of bankruptcy, insolvency and other laws
affecting the rights and remedies of creditors, such as the Federal Bankruptcy
Act, and laws, if any, that may be enacted by Congress or state legislatures
extending the time for payment of principal or interest or imposing other
constraints upon the enforcement of such obligations. There is also the
possibility that, because of litigation or other conditions, the power or
ability of the issuer to pay when due principal of or interest on a municipal
security may be materially affected.

Municipal Leases, Certificates of Participation and other Participation
Interests. A municipal lease is an obligation in the form of a lease or
installment purchase contract that is issued by a state or local government to
acquire equipment and facilities. Income from such obligations is generally
exempt from state and local taxes in the state of issuance (as well as regular
federal income tax). Municipal leases frequently involve special risks not
normally associated with general obligation or revenue bonds. Leases and
installment purchase or conditional sale contracts (which normally provide for
title to the leased asset to pass eventually to the governmental issuer) have
evolved as a means for governmental issuers to acquire property and equipment
without meeting the constitutional and statutory requirements for the issuance
of debt. The debt issuance limitations are deemed to be inapplicable because of
the inclusion in many leases or contracts of `non-appropriation' clauses that
relieve the governmental issuer of any obligation to make future payments under
the lease or contract unless money is appropriated for such purpose by the
appropriate legislative body on a yearly or other periodic basis. Thus, a fund's
investment in municipal leases will be subject to the special risk that the
governmental issuer may not appropriate funds for lease payments.

In addition, such leases or contracts may be subject to the temporary abatement
of payments in the event the issuer is prevented from maintaining occupancy of
the leased premises or utilizing the leased equipment. Although the obligations
may be secured by the leased equipment or facilities, the disposition of the
property in the event of nonappropriation or foreclosure might prove difficult,
time consuming and costly, and result in an unsatisfactory or delayed recoupment
of a fund's original investment.

Certificates of participation represent undivided interests in municipal leases,
installment purchase contracts or other instruments. The certificates are
typically issued by a trust or other entity that has received an assignment of
the payments to be made by the state or political subdivision under such leases
or installment purchase contracts.

Certain municipal lease obligations and certificates of participation may be
deemed illiquid for the purpose of a fund's limitations on investments in
illiquid securities. Other municipal lease obligations and certificates of
participation acquired by a fund may be determined by the Advisor, pursuant to
guidelines adopted by the Trustees of the Trust, to be liquid securities for the
purpose of a fund's limitation on investments in illiquid securities. In
determining the liquidity of municipal lease obligations and certificates of
participation, the Advisor will consider a variety of factors including: (1) the
willingness of dealers to bid for the security; (2) the number of dealers
willing to purchase or sell the obligation and the number of other potential
buyers; (3) the frequency of trades or quotes for the obligation; and (4) the
nature of the marketplace trades. In addition, the Advisor will consider factors
unique to particular lease obligations and certificates of participation
affecting the marketability thereof. These include the general creditworthiness
of the issuer, the importance to the issuer of the property covered by the lease
and the likelihood that the marketability of the obligation will be maintained
throughout the time the obligation is held by a fund. A fund may not invest more
than 5% of its net assets in municipal leases.

A fund may purchase participations in municipal securities held by a commercial
bank or other financial institution. Such participations provide a fund with the
right to a pro rata undivided interest in the underlying municipal securities.
In addition, such participations generally provide a fund with the right to
demand payment, on not more than seven days notice, of all or any part of a
fund's participation interest in the underlying municipal security, plus accrued
interest.

Municipal Notes. Municipal securities in the form of notes generally are used to
provide for short-term capital needs, in anticipation of an issuer's receipt of
other revenues or financing, and typically have maturities of up to three years.
Such instruments may include Tax Anticipation Notes, Revenue Anticipation Notes,
Bond Anticipation Notes, Tax and Revenue Anticipation Notes and Construction
Loan Notes. Tax Anticipation Notes are issued to finance the working capital
needs of governments. Generally, they are issued in anticipation of various tax
revenues, such as income, sales, property, use and business taxes, and are
payable from these specific future taxes. Revenue Anticipation Notes are issued
in expectation of receipt of other kinds of revenue, such as federal revenues
available under federal revenue sharing programs. Bond Anticipation Notes are
issued to provide interim financing until long-term bond financing can be
arranged. In most cases, the long-term bonds then provide the funds needed for
repayment of the notes. Tax and Revenue Anticipation Notes combine the funding
sources of both Tax Anticipation Notes and Revenue Anticipation Notes.
Construction Loan Notes are sold to provide construction financing. These notes
are secured by mortgage notes insured by the Federal Housing Authority; however,
the proceeds from the insurance may be less than the economic equivalent of the
payment of principal and interest on the mortgage note if there has been a
default. The obligations of an issuer of municipal notes are generally secured
by the anticipated revenues from taxes, grants or bond financing. An investment
in such instruments, however, presents a risk that the anticipated revenues will
not be received or that such revenues will be insufficient to satisfy the
issuer's payment obligations under the notes or that refinancing will be
otherwise unavailable.


Non-diversification. A fund may be classified as a non-diversified management
investment company under the 1940 Act, which means that the fund is not limited
by the 1940 Act in the proportion of its assets that it may invest in the
obligations of a single issuer. The investment of a large percentage of the
fund's assets in the securities of a small number of issuers may cause the
fund's share price to fluctuate more than that of a diversified fund.

Obligations of Banks and Other Financial Institutions. A fund may invest in US
dollar-denominated fixed rate or variable rate obligations of US or foreign
financial institutions, including banks. Obligations of domestic and foreign
financial institutions in which the fund may invest include (but are not limited
to) certificates of deposit, bankers' acceptances, bank time deposits,
commercial paper, and other US dollar-denominated instruments issued or
supported by the credit of US or foreign financial institutions, including
banks.

For purposes of a fund's investment policies with respect to bank obligations,
the assets of a bank will be deemed to include the assets of its domestic and
foreign branches. Obligations of foreign branches of US banks and foreign banks
may be general obligations of the parent bank in addition to the issuing bank or
may be limited by the terms of a specific obligation and by government
regulation. The fund may invest in obligations of foreign banks or foreign
branches of US banks, which include banks located in the United Kingdom, Grand
Cayman Island, Nassau, Japan and Canada.

Investments in these obligations may entail risks that are different from those
of investments in obligations of US domestic banks because of differences in
political, regulatory and economic systems and conditions. These risks include
future political and economic developments, currency blockage, the possible
imposition of withholding taxes on interest payments, possible seizure or
nationalization of foreign deposits, difficulty or inability of pursuing legal
remedies and obtaining judgments in foreign courts, possible establishment of
exchange controls or the adoption of other foreign governmental restrictions
that might affect adversely the payment of principal and interest on bank
obligations. Foreign branches of US banks and foreign banks may also be subject
to less stringent reserve requirements and to different accounting, auditing,
reporting and record keeping standards than those applicable to domestic
branches of US banks.


Other Asset-Backed Securities. The securitization techniques used to develop
mortgage-backed securities are now being applied to a broad range of assets.
Through the use of trusts and special purpose corporations, various types of
assets, including automobile loans, computer leases and credit card receivables,
are being securitized in pass-through structures similar to mortgage
pass-through structures or in a structure similar to the CMO structure. In
general, the collateral supporting these securities is of shorter maturity than
mortgage loans and is less likely to experience substantial prepayments with
interest rate fluctuations.

Several types of asset-backed securities have already been offered to investors,
including Certificates of Automobile Receivables(SM) ("CARS(SM)"). CARS(SM)
represent undivided fractional interests in a trust whose assets consist of a
pool of motor vehicle retail installment sales contracts and security interests
in the vehicles securing the contracts. Payments of principal and interest on
 are passed through monthly to certificate holders, and are guaranteed up
to certain amounts and for a certain time period by a letter of credit issued by
a financial institution unaffiliated with the trustee or originator of the
trust. An investor's return on CARS(SM) may be affected by early prepayment of
principal on the underlying vehicle sales contracts. If the letter of credit is
exhausted, the trust may be prevented from realizing the full amount due on a
sales contract because of state law requirements and restrictions relating to
foreclosure sales of vehicles and the obtaining of deficiency judgments
following such sales or because of depreciation, damage or loss of a vehicle,
the application of federal and state bankruptcy and insolvency laws, or other
factors. As a result, certificate holders may experience delays in payments or
losses if the letter of credit is exhausted.

Asset-backed securities present certain risks that are not presented by
mortgage-backed securities. Primarily, these securities may not have the benefit
of any security interest in the related assets. Credit card receivables are
generally unsecured and the debtors are entitled to the protection of a number
of state and federal consumer credit laws, many of which give such debtors the
right to set off certain amounts owed on the credit cards, thereby reducing the
balance due. There is the possibility that recoveries on repossessed collateral
may not, in some cases, be available to support payments on these securities.

Asset-backed securities are often backed by a pool of assets representing the
obligations of a number of different parties. To lessen the effect of failures
by obligors on underlying assets to make payments, the securities may contain
elements of credit support which fall into two categories: (i) liquidity
protection, and (ii) protection against losses resulting from ultimate default
by an obligor on the underlying assets. Liquidity protection refers to the
provision of advances, generally by the entity administering the pool of assets,
to ensure that the receipt of payments on the underlying pool occurs in a timely
fashion. Protection against losses results from payment of the insurance
obligations on at least a portion of the assets in the pool. This protection may
be provided through guarantees, policies or letters of credit obtained by the
issuer or sponsor from third parties, through various means of structuring the
transaction or through a combination of such approaches. A fund will not pay any
additional or separate fees for credit support. The degree of credit support
provided for each issue is generally based on historical information respecting
the level of credit risk associated with the underlying assets. Delinquency or
loss in excess of that anticipated or failure of the credit support could
adversely affect the return on an investment in such a security.

A fund may also invest in residual interests in asset-backed securities. In the
case of asset-backed securities issued in a pass-through structure, the cash
flow generated by the underlying assets is applied to make required payments on
the securities and to pay related administrative expenses. The residual in an
asset-backed security pass-through structure represents the interest in any
excess cash flow remaining after making the foregoing payments. The amount of
residual cash flow resulting from a particular issue of asset-backed securities
will depend on, among other things, the characteristics of the underlying
assets, the coupon rates on the securities, prevailing interest rates, the
amount of administrative expenses and the actual prepayment experience on the
underlying assets. Asset-backed security residuals not registered under the 1933
Act may be subject to certain restrictions on transferability. In addition,
there may be no liquid market for such securities.

The availability of asset-backed securities may be affected by legislative or
regulatory developments. It is possible that such developments may require a
fund to dispose of any then-existing holdings of such securities.

Participation Interests. A fund may purchase from financial institutions
participation interests in securities in which the fund may invest. A
participation interest gives a fund an undivided interest in the security in the
proportion that the fund's participation interest bears to the principal amount
of the security. These instruments may have fixed, floating or variable interest
rates. If the participation interest is unrated, or has been given a rating
below that which is permissible for purchase by a fund, the participation
interest will be backed by an irrevocable letter of credit or guarantee of a
bank, or the payment obligation otherwise will be collateralized by US
Government securities, or, in the case of unrated participation interest,
determined by the underlying fund's advisor to be of comparable quality to those
instruments in which a fund may invest. For certain participation interests, a
fund will have the right to demand payment, on not more than seven days' notice,
for all or any part of a fund's participation interests in the security, plus
accrued interest. As to these instruments, the fund generally intends to
exercise its right to demand payment only upon a default under the terms of the
security.

Pre-Refunded Municipal Securities. The principal of and interest on municipal
securities that have been pre-refunded are no longer paid from the original
revenue source for the securities. Instead, after pre-refunding the source of
such payments of the principal of and interest on these securities are typically
paid from an escrow fund consisting of obligations issued or guaranteed by the
US Government. The assets in the escrow fund are derived from the proceeds of
refunding bonds issued by the same issuer as the pre-refunded municipal
securities. Issuers of municipal securities use this advance refunding technique
to obtain more favorable terms with respect to securities that are not yet
subject to call or redemption by the issuer. For example, advance refunding
enables an issuer to refinance debt at lower market interest rates, restructure
debt to improve cash flow or eliminate restrictive covenants in the indenture or
other governing instrument for the pre-refunded municipal securities. However,
except for a change in the revenue source from which principal and interest
payments are made, the pre-refunded municipal securities remain outstanding on
their original terms until they mature or are redeemed by the issuer.
Pre-refunded municipal securities are usually purchased at a price which
represents a premium over their face value.

Private Activity Bonds. Certain types of municipal securities, generally
referred to as industrial development bonds (and referred to under current tax
law as private activity bonds), are issued by or on behalf of public authorities
to obtain funds for privately-operated housing facilities, airport, mass transit
or port facilities, sewage disposal, solid waste disposal or hazardous waste
treatment or disposal facilities and certain local facilities for water supply,
gas or electricity. Other types of industrial development bonds, the proceeds of
which are used for the construction, equipment, repair or improvement of
privately operated industrial or commercial facilities, may constitute municipal
securities, although the current federal tax laws place substantial limitations
on the size of such issues. The interest from certain private activity bonds
owned by a fund (including a fund's distributions attributable to such interest)
may be a preference item for purposes of the alternative minimum tax.

Privatized Enterprises. Investments in foreign securities may include securities
issued by enterprises that have undergone or are currently undergoing
privatization. The governments of certain foreign countries have, to varying
degrees, embarked on privatization programs contemplating the sale of all or
part of their interests in state enterprises. A fund's investments in the
securities of privatized enterprises may include privately negotiated
investments in a government or state-owned or controlled company or enterprise
that has not yet conducted an initial equity offering, investments in the
initial offering of equity securities of a state enterprise or former state
enterprise and investments in the securities of a state enterprise following its
initial equity offering.

In certain jurisdictions, the ability of foreign entities, such as a fund, to
participate in privatizations may be limited by local law, or the price or terms
on which a fund may be able to participate may be less advantageous than for
local investors. Moreover, there can be no assurance that governments that have
embarked on privatization programs will continue to divest their ownership of
state enterprises, that proposed privatizations will be successful or that
governments will not re-nationalize enterprises that have been privatized.

In the case of the enterprises in which a fund may invest, large blocks of the
stock of those enterprises may be held by a small group of stockholders, even
after the initial equity offerings by those enterprises. The sale of some
portion or all of those blocks could have an adverse effect on the price of the
stock of any such enterprise.

Prior to making an initial equity offering, most state enterprises or former
state enterprises go through an internal reorganization or management. Such
reorganizations are made in an attempt to better enable these enterprises to
compete in the private sector. However, certain reorganizations could result in
a management team that does not function as well as an enterprise's prior
management and may have a negative effect on such enterprise. In addition, the
privatization of an enterprise by its government may occur over a number of
years, with the government continuing to hold a controlling position in the
enterprise even after the initial equity offering for the enterprise.

Prior to privatization, most of the state enterprises in which a fund may invest
enjoy the protection of and receive preferential treatment from the respective
sovereigns that own or control them. After making an initial equity offering,
these enterprises may no longer have such protection or receive such
preferential treatment and may become subject to market competition from which
they were previously protected. Some of these enterprises may not be able to
operate effectively in a competitive market and may suffer losses or experience
bankruptcy due to such competition.

Precious Metals. DWS Gold & Precious Metals Fund "concentrates" (for the
purposes of the 1940 Act) its assets in securities related to gold and gold
bullion and coins, which means that as a matter of fundamental policy, at all
times, the fund invests at least 25% of total assets in securities related to
gold and in gold directly. As a result, the fund may be subject to greater
market fluctuation than a fund which has securities representing a broader range
of investment alternatives. In addition, when market conditions warrant, the
fund reserves the freedom to concentrate its assets in securities related to
other precious metals and in those metals directly. The fund may invest up to
25% of its assets in wholly-owned subsidiaries of the corporation which invest
in gold, silver, platinum and palladium bullion and in gold and silver coins.
The subsidiaries will incur expenses for the storage and insurance of precious
metals purchased. However, the subsidiaries may realize capital gains from the
sale of metals and may pay distributions to the fund from such gains. Currently,
Scudder Precious Metals, Inc. is the Corporation's only subsidiary. Investments
in precious metals and in precious metals-related securities and companies
involve a relatively high degree of risk. Prices of gold and other precious
metals can be influenced by a variety of global economic, financial and
political factors and may fluctuate markedly over short periods of time. Among
other things, precious metals values can be affected by changes in inflation,
investment speculation, metal sales by governments or central banks, changes in
industrial and commercial demand, and any governmental restrictions on private
ownership of gold or other precious metals.

Real Estate Investment Trusts ("REITs"). REITs are sometimes informally
characterized as equity REITs, mortgage REITs and hybrid REITs. Investment in
REITs may subject a fund to risks associated with the direct ownership of real
estate, such as decreases in real estate values, overbuilding, increased
competition and other risks related to local or general economic conditions,
increases in operating costs and property taxes, changes in zoning laws,
casualty or condemnation losses, possible environmental liabilities, regulatory
limitations on rent and fluctuations in rental income. Equity REITs generally
experience these risks directly through fee or leasehold interests, whereas
mortgage REITs generally experience these risks indirectly through mortgage
interests, unless the mortgage REIT forecloses on the underlying real estate.
Changes in interest rates may also affect the value of a fund's investment in
REITs. For instance, during periods of declining interest rates, certain
mortgage REITs may hold mortgages that the mortgagors elect to prepay, which
prepayment may diminish the yield on securities issued by those REITs.


Certain REITs have relatively small market capitalizations, which may tend to
increase the volatility of the market price of their securities. Furthermore,
REITs are dependent upon specialized management skills, have limited
diversification and are, therefore, subject to risks inherent in operating and
financing a limited number of projects. REITs are also subject to heavy cash
flow dependency, defaults by borrowers and the possibility of failing to qualify
for tax-free pass-through of income under the Code, and to maintain exemption
from the registration requirements of the 1940 Act. By investing in REITs
indirectly through the fund, a shareholder will bear not only his or her
proportionate share of the expenses of a fund, but also, indirectly, similar
expenses of the REITs. In addition, REITs depend generally on their ability to
generate cash flow to make distributions to shareholders.


Repurchase Agreements. A fund may invest in repurchase agreements pursuant to
its investment guidelines. In a repurchase agreement, a fund acquires ownership
of a security and simultaneously commits to resell that security to the seller,
typically a bank or broker/dealer.

A repurchase agreement provides a means for a fund to earn income on funds for
periods as short as overnight. It is an arrangement under which the purchaser
(i.e., a fund) acquires a security ("Obligation") and the seller agrees, at the
time of sale, to repurchase the Obligation at a specified time and price.
Securities subject to a repurchase agreement are held in a segregated account
and the value of such securities is kept at least equal to the repurchase price
on a daily basis. The repurchase price may be higher than the purchase price,
the difference being income to a fund, or the purchase and repurchase prices may
be the same, with interest at a stated rate due to a fund together with the
repurchase price upon repurchase. In either case, the income to a fund is
unrelated to the interest rate on the Obligation itself. Obligations will be
held by the custodian or in the Federal Reserve Book Entry System.

It is not clear whether a court would consider the Obligation purchased by a
fund subject to a repurchase agreement as being owned by a fund or as being
collateral for a loan by a fund to the seller. In the event of the commencement
of bankruptcy or insolvency proceedings with respect to the seller of the
Obligation before repurchase of the Obligation under a repurchase agreement, a
fund may encounter delay and incur costs before being able to sell the security.
Delays may involve loss of interest or decline in price of the Obligation. If
the court characterizes the transaction as a loan and a fund has not perfected a
security interest in the Obligation, a fund may be required to return the
Obligation to the seller's estate and be treated as an unsecured creditor of the
seller. As an unsecured creditor, a fund would be at risk of losing some or all
of the principal and income involved in the transaction. As with any unsecured
debt Obligation purchased for a fund, the Advisor seeks to reduce the risk of
loss through repurchase agreements by analyzing the creditworthiness of the
obligor, in this case the seller of the Obligation. Apart from the risk of
bankruptcy or insolvency proceedings, there is also the risk that the seller may
fail to repurchase the Obligation, in which case a fund may incur a loss if the
proceeds to a fund of the sale to a third party are less than the repurchase
price. However, if the market value (including interest) of the Obligation
subject to the repurchase agreement becomes less than the repurchase price
(including interest), a fund will direct the seller of the Obligation to deliver
additional securities so that the market value (including interest) of all
securities subject to the repurchase agreement will equal or exceed the
repurchase price.

Repurchase Commitments. A fund may enter into repurchase commitments with any
party deemed creditworthy by a fund's advisor, including foreign banks and
broker/dealers, if the transaction is entered into for investment purposes and
the counterparty's creditworthiness is at least equal to that of issuers of
securities which a fund may purchase. Such transactions may not provide a fund
with collateral marked-to-market during the term of the commitment.

Reverse Repurchase Agreements. A fund may enter into "reverse repurchase
agreements," which are repurchase agreements in which a fund, as the seller of
the securities, agrees to repurchase such securities at an agreed time and
price. A fund maintains a segregated account in connection with outstanding
reverse repurchase agreements. A fund will enter into reverse repurchase
agreements only when the advisor believes that the interest income to be earned
from the investment of the proceeds of the transaction will be greater than the
interest expense of the transaction. Such transactions may increase fluctuations
in the market value of fund assets and its yield and may be viewed as a form of
leverage.

Securities Backed by Guarantees. A fund may invest in securities backed by
guarantees from banks, insurance companies and other financial institutions. A
money market fund's ability to maintain a stable share price may depend upon
such guarantees, which are not supported by federal deposit insurance.
Consequently, changes in the credit quality of these institutions could have an
adverse impact on securities they have guaranteed or backed, which could cause
losses to a fund and affect its share price.

Securities with Put Rights. A fund may enter into put transactions with respect
to obligations held in its portfolio with broker/dealers pursuant to a rule
under the 1940 Act, and with commercial banks.

The right of a fund to exercise a put is unconditional and unqualified. A put is
not transferable by a fund, although a fund may sell the underlying securities
to a third party at any time. If necessary and advisable, a fund may pay for
certain puts either separately in cash or by paying a higher price for portfolio
securities that are acquired subject to such a put (thus reducing the yield to
maturity otherwise available for the same securities). A fund expects, however,
that puts generally will be available without the payment of any direct or
indirect consideration.

A fund may enter into puts only with banks or broker/dealers that, in the
opinion of the advisor, present minimal credit risks. The ability of a fund to
exercise a put will depend on the ability of the bank or broker/dealer to pay
for the underlying securities at the time the put is exercised. In the event
that a bank or broker/dealer should default on its obligation to repurchase an
underlying security, a fund might be unable to recover all or a portion of any
loss sustained from having to sell the security elsewhere.

A fund intends to enter into puts solely to maintain liquidity and does not
intend to exercise its rights thereunder for trading purposes. The puts will
only be for periods of substantially less than the life of the underlying
security. The acquisition of a put will not affect the valuation by a fund of
the underlying security. The actual put will be valued at zero in determining
net asset value of a fund. Where a fund pays directly or indirectly for a put,
its cost will be reflected in realized gain or loss when the put is exercised or
expires. If the value of the underlying security increases, the potential for
unrealized or realized gain is reduced by the cost of the put. The maturity of
an obligation purchased by a fund will not be considered shortened by any put to
which such obligation is subject.

Senior Loans. DWS Floating Rate Plus Fund may invest in Senior Loans. Senior
Loans are direct obligations of corporations or other business entities and are
generally arranged by banks or other commercial lending institutions and made
generally to finance internal growth, mergers, acquisitions, stock repurchases
and leveraged buyouts. Senior Loans may include restrictive covenants which must
be maintained by the borrower. Such covenants, in addition to the timely payment
of interest and principal, may include mandatory prepayment provisions arising
from free cash flow, restrictions on dividend payments and usually state that a
borrower must maintain specific minimum financial ratios as well as establishing
limits on total debt. A breach of covenant, which is not waived by the agent, is
normally an event of acceleration, i.e., the agent has the right to call the
outstanding Senior Loan. In addition, loan covenants may include mandatory
prepayment provisions stemming from free cash flow. Free cash flow is cash that
is in excess of capital expenditures plus debt service requirements of principal
and interest. The free cash flow shall be applied to prepay the Senior Loan in
an order of maturity described in the loan documents. Under certain interests in
Senior Loans, the fund may have an obligation to make additional loans upon
demand by the borrower. The fund intends to reserve against such contingent
obligations by segregating sufficient assets in high quality short-term liquid
investments or borrowing to cover such obligations.

The fund's investment in Senior Loans may take the form of purchase of an
assignment or a portion of a Senior Loan from a third party ("assignment") or
acquiring a participation in a Senior Loan ("participation"). The fund may pay a
fee or forego a portion of interest payments to the lender selling a
participation or assignment under the terms of such participation or assignment.
When the fund is a purchaser of an assignment, it typically succeeds to all the
rights and obligations under the loan agreement of the assigning lender and
becomes a lender under the loan agreement with the same rights and obligations
as the assigning lender. Assignments are, however, arranged through private
negotiations between potential assignees and potential assignors, and the rights
and obligations acquired by the purchaser of an assignment may be more limited
than those held by the assigning lender. The fund may also invest in
participations in Senior Loans. With respect to any given Senior Loan, the
rights of the fund when it acquires a participation may be more limited than the
rights of the original lenders or of investors who acquire an assignment.
Participations may entail certain risks relating to the creditworthiness of the
parties from which the participations are obtained.

In a typical interest in a Senior Loan, the agent administers the loan and has
the right to monitor the collateral. The agent is also required to segregate the
principal and interest payments received from the borrower and to hold these
payments for the benefit of the lenders. The fund normally looks to the agent to
collect and distribute principal of and interest on a Senior Loan. Furthermore,
the fund looks to the agent to use normal credit remedies, such as to foreclose
on collateral; monitor credit loan covenants; and notify the lenders of any
adverse changes in the borrower's financial condition or declarations of
insolvency. In the event of a default by the borrower, it is possible, though
unlikely, that the fund could receive a portion of the borrower's collateral. If
the fund receives collateral other than cash, such collateral will be liquidated
and the cash received from such liquidation will be available for investment as
part of the fund's portfolio. At times the fund may also negotiate with the
agent regarding the agent's exercise of credit remedies under a Senior Loan. The
agent is compensated for these services by the borrower as is set forth in the
loan agreement. Such compensation may take the form of a fee or other amount
paid upon the making of the Senior Loan and/or an ongoing fee or other amount.

The loan agreement in connection with Senior Loans sets forth the standard of
care to be exercised by the agents on behalf of the lenders and usually provides
for the termination of the agent's agency status in the event that it fails to
act properly, becomes insolvent, enters FDIC receivership, or if not FDIC
insured, enters into bankruptcy or if the agent resigns. In the event an agent
is unable to perform its obligations as agent, another lender would generally
serve in that capacity.

The fund believes that the principal credit risk associated with acquiring
Senior Loans from another lender is the credit risk associated with the borrower
of the underlying Senior Loan. The fund may incur additional credit risk,
however, when the fund acquires a participation in a Senior Loan from another
lender because the fund must assume the risk of insolvency or bankruptcy of the
other lender from which the Senior Loan was acquired. However, in acquiring
Senior Loans, the fund conducts an analysis and evaluation of the financial
condition of each such lender. The fund has taken the following measures in an
effort to reduce such risks. The fund will only acquire participations in Senior
Loans if the lender selling the participation, and any other persons
interpositioned between the fund and the lender, at the time of investment has
outstanding debt or deposit obligations rated investment grade (BBB or A-3 or
higher by Standards & Poor's Ratings Group ("S&P") or Baa or P-3 or higher by
Moody's Investors Service ("Moody's")) or determined by the Advisor to be of
comparable quality. Long-term debt rated BBB by S&P is regarded by S&P as having
adequate capacity to pay interest and repay principal and debt rated Baa by
Moody's is regarded by Moody's as a medium grade obligation, i.e., it is neither
highly protected nor poorly secured. Commercial paper rated A-1 by S&P indicates
that the degree of safety regarding timely payment is considered by S&P to be
either overwhelming or very strong and issues of commercial paper rated Prime-1
by Moody's are considered by Moody's to have a superior ability for repayment of
senior short-term debt obligations.

Senior Loans, unlike certain bonds, usually do not have call protection. This
means that interests comprising the Fund's portfolio, while having a stated one
to ten-year term, may be prepaid, often without penalty. The fund generally
holds Senior Loans to maturity unless it has become necessary to sell them to
adjust the fund's portfolio in accordance with the Advisor's view of current or
expected economic or specific industry or borrower conditions.

Senior Loans frequently require full or partial prepayment of a loan when there
are asset sales or a securities issuance. Prepayments on Senior Loans may also
be made by the borrower at its election. The rate of such prepayments may be
affected by, among other things, general business and economic conditions, as
well as the financial status of the borrower. Prepayment would cause the actual
duration of a Senior Loan to be shorter than its stated maturity. Prepayment may
be deferred by the fund. This should, however, allow the Fund to reinvest in a
new loan and recognize as income any unamortized loan fees. This may result in a
new facility fee payable to the Fund.

Because interest rates paid on these Senior Loans periodically fluctuate with
the market, it is expected that the prepayment and a subsequent purchase of a
new Senior Loan by the fund will not have a material adverse impact on the yield
of the portfolio. See "Portfolio Transactions."

Under a Senior Loan, the borrower generally must pledge as collateral assets
which may include one or more of the following: cash; accounts receivable;
inventory; property, plant and equipment; both common and preferred stock in its
subsidiaries; trademarks, copyrights, patent rights; and franchise value. The
fund may also receive guarantees as a form of collateral. In some instances, a
Senior Loan may be secured only by stock in a borrower or its affiliates. The
fund may also invest in Senior Loans not secured by any collateral. The market
value of the assets serving as collateral (if any) will, at the time of
investment, in the opinion of the Advisor, equal or exceed the principal amount
of the Senior Loan. The valuations of these assets may be performed by an
independent appraisal. If the agent becomes aware that the value of the
collateral has declined, the agent may take action as it deemed necessary for
the protection of its own interests and the interests of the other lenders,
including, for example, giving the borrower an opportunity to provide additional
collateral or accelerating the loan. There is no assurance, however, that the
borrower would provide additional collateral or that the liquidation of the
existing collateral would satisfy the borrower's obligation in the event of
nonpayment of scheduled interest or principal, or that such collateral could be
readily liquidated.

The fund may be required to pay and may receive various fees and commissions in
the process of purchasing, selling and holding Senior Loans. The fee component
may include any, or a combination of, the following elements: arrangement fees,
non-use fees, facility fees, letter of credit fees and ticking fees. Arrangement
fees are paid at the commencement of a loan as compensation for the initiation
of the transaction. A non-use fee is paid based upon the amount committed but
not used under the loan. Facility fees are on-going annual fees paid in
connection with a loan. Letter of credit fees are paid if a loan involves a
letter of credit. Ticking fees are paid from the initial commitment indication
until loan closing if for an extended period. The amount of fees is negotiated
at the time of transaction.

If legislation or state or federal regulators impose additional requirements or
restrictions on the ability of financial institutions to make loans that are
considered highly leveraged transactions, the availability of Senior Loans for
investment by the fund may be adversely affected. In addition, such requirements
or restrictions could reduce or eliminate sources of financing for certain
borrowers. This would increase the risk of default. If legislation or federal or
state regulators require financial institutions to dispose of Senior Loans that
are considered highly leveraged transactions or subject such Senior Loans to
increased regulatory scrutiny, financial institutions may determine to sell such
Senior Loans. Such sales could result in prices that, in the opinion of the
Advisor, do not represent fair value. If the fund attempts to sell a Senior Loan
at a time when a financial institution is engaging in such a sale, the price the
fund could get for the Senior Loan may be adversely affected.


Short Sales. When a fund takes a long position, it purchases a stock outright.
When DWS Disciplined Market Neutral Fund, DWS Disciplined Long/Short Growth
Fund, DWS Disciplined Long/Short Value Fund or DWS RREEF Global Real Estate
Securities Fund takes a short position, it sells at the current market price a
stock it does not own but has borrowed in anticipation that the market price of
the stock will decline. To complete, or close out, the short sale transaction, a
fund buys the same stock in the market and returns it to the lender. The price
at such time may be more or less than the price at which the security was sold
by a fund. Until the security is replaced, a fund is required to pay the lender
amounts equal to any dividends or interest, which accrue during the period of
the loan. To borrow the security, a fund may also be required to pay a premium,
which would increase the cost of the security sold. The proceeds of the short
sale will be retained by the broker, to the extent necessary to meet the margin
requirements, until the short position is closed out. A fund makes money when
the market price of the borrowed stock goes down and a fund is able to replace
it for less than it earned by selling it short. Alternatively if the price of
the stock goes up after the short sale and before the short position is closed,
a fund will lose money because it will have to pay more to replace the borrowed
stock than it received when it sold the stock short.


A fund may not always be able to close out a short position at a particular time
or at an acceptable price. A lender may request that the borrowed securities be
returned to it on short notice, and a fund may have to buy the borrowed
securities at an unfavorable price. If this occurs at a time that other short
sellers of the same security also want to close out their positions, a "short
squeeze" can occur. A short squeeze occurs when demand is greater than supply
for the stock sold short. A short squeeze makes it more likely that a fund will
have to cover its short sale at an unfavorable price. If that happens, a fund
will lose some or all of the potential profit from, or even incur a loss as a
result of, the short sale.

Until a fund closes its short position or replaces the borrowed security, a fund
will designate liquid assets it owns (other than the short sales proceeds) as
segregated assets to the books of the broker and/or its custodian in an amount
equal to its obligation to purchase the securities sold short, as required by
the 1940 Act. The amount segregated in this manner will be increased or
decreased each business day equal to the change in market value of a fund's
obligation to purchase the security sold short. If the lending broker requires a
fund to deposit additional collateral (in addition to the short sales proceeds
that the broker holds during the period of the short sale), which may be as much
as 50% of the value of the securities sold short, the amount of the additional
collateral may be deducted in determining the amount of cash or liquid assets a
fund is required to segregate to cover the short sale obligation pursuant to the
1940 Act. The amount segregated must be unencumbered by any other obligation or
claim than the obligation that is being covered. Each fund believes that short
sale obligations that are covered, either by an offsetting asset or right
(acquiring the security sold short or having an option to purchase the security
sold short at exercise price that covers the obligation), or by a fund's
segregated asset procedures (or a combination thereof), are not senior
securities under the 1940 Act and are not subject to a fund's borrowing
restrictions. This requirement to segregate assets limits a fund's leveraging of
its investments and the related risk of losses from leveraging. A fund also is
required to pay the lender of the security any dividends or interest that
accrues on a borrowed security during the period of the loan. Depending on the
arrangements made with the broker or custodian, a fund may or may not receive
any payments (including interest) on collateral it has deposited with the
broker.

Short sales involve the risk that a fund will incur a loss by subsequently
buying a security at a higher price than the price at which a fund previously
sold the security short. Any loss will be increased by the amount of
compensation, interest or dividends, and transaction costs a fund must pay to a
lender of the security. In addition, because a fund's loss on a short sale stems
from increases in the value of the security sold short, the extent of such loss,
like the price of the security sold short, is theoretically unlimited. By
contrast, a fund's loss on a long position arises from decreases in the value of
the security held by a fund and therefore is limited by the fact that a
security's value cannot drop below zero.

The use of short sales, in effect, leverages a fund's portfolio, which could
increase a fund's exposure to the market, magnify losses and increase the
volatility of returns.

Although a fund's share price may increase if the securities in its long
portfolio increase in value more than the securities underlying its short
positions, a fund's share price may decrease if the securities underlying its
short positions increase in value more than the securities in its long
portfolio.

While the Advisor has extensive experience managing mutual funds and
institutional accounts, it has not previously managed a long/short strategy.
Although the Adviser believes that its stock selection strategy will be
effective in selecting short positions, there is no assurance that the Adviser
will be successful in applying this approach to a long/short strategy.

Short Sales Against the Box. A fund may make short sales of common stocks if, at
all times when a short position is open, a fund owns the stock or owns preferred
stocks or debt securities convertible or exchangeable, without payment of
further consideration, into the shares of common stock sold short. Short sales
of this kind are referred to as short sales "against the box." The broker/dealer
that executes a short sale generally invests cash proceeds of the sale until
they are paid to a fund. Arrangements may be made with the broker/dealer to
obtain a portion of the interest earned by the broker on the investment of short
sale proceeds. A fund will segregate the common stock or convertible or
exchangeable preferred stock or debt securities in a special account with the
custodian. Uncertainty regarding the tax effects of short sales of appreciated
investments may limit the extent to which a fund may enter into short sales
against the box.

Small Companies. The advisor believes that many small companies may have sales
and earnings growth rates which exceed those of larger companies, and that such
growth rates may in turn be reflected in more rapid share price appreciation
over time. However, investing in smaller company stocks involves greater risk
than is customarily associated with investing in larger, more established
companies. For example, smaller companies can have limited product lines,
markets, or financial and managerial resources. Smaller companies may also be
dependent on one or a few key persons, and may be more susceptible to losses and
risks of bankruptcy. Also, the securities of smaller companies may be thinly
traded (and therefore have to be sold at a discount from current market prices
or sold in small lots over an extended period of time). Transaction costs in
smaller company stocks may be higher than those of larger companies.

Sovereign Debt. Investment in sovereign debt can involve a high degree of risk.
The governmental entity that controls the repayment of sovereign debt may not be
able or willing to repay the principal and/or interest when due in accordance
with the terms of such debt. A governmental entity's willingness or ability to
repay principal and interest due in a timely manner may be affected by, among
other factors, its cash flow situation, the extent of its foreign reserves, the
availability of sufficient foreign exchange on the date a payment is due, the
relative size of the debt service burden to the economy as a whole, the
governmental entity's policy toward the International Monetary Fund, and the
political constraints to which a governmental entity may be subject.
Governmental entities may also be dependent on expected disbursements from
foreign governments, multilateral agencies and others abroad to reduce principal
and interest arrearages on their debt. The commitment on the part of these
governments, agencies and others to make such disbursements may be conditioned
on a governmental entity's implementation of economic reforms and/or economic
performance and the timely service of such debtor's obligations. Failure to
implement such reforms, achieve such levels of economic performance or repay
principal or interest when due may result in the cancellation of such third
parties commitments to lend funds to the governmental entity, which may further
impair such debtor's ability or willingness to service its debts in a timely
manner. Consequently, governmental entities may default on their sovereign debt.
Holders of sovereign debt may be requested to participate in the rescheduling of
such debt and to extend further loans to governmental entities. There is no
bankruptcy proceeding by which sovereign debt on which governmental entities
have defaulted may be collected in whole or in part.

Stand-by Commitments. A stand-by commitment is a right acquired by a fund, when
it purchases a municipal obligation from a broker, dealer or other financial
institution ("seller"), to sell up to the same principal amount of such
securities back to the seller, at a fund's option, at a specified price.
Stand-by commitments are also known as "puts." The exercise by a fund of a
stand-by commitment is subject to the ability of the other party to fulfill its
contractual commitment.

Stand-by commitments acquired by a fund will have the following features: (1)
they will be in writing and will be physically held by a fund's custodian; (2) a
fund's right to exercise them will be unconditional and unqualified; (3) they
will be entered into only with sellers which in the Advisor's opinion present a
minimal risk of default; (4) although stand-by commitments will not be
transferable, municipal obligations purchased subject to such commitments may be
sold to a third party at any time, even though the commitment is outstanding;
and (5) their exercise price will be (i) a fund's acquisition cost (excluding
any accrued interest which a fund paid on their acquisition), less any amortized
market premium or plus any amortized original issue discount during the period a
fund owned the securities, plus (ii) all interest accrued on the securities
since the last interest payment date.

A fund expects that stand-by commitments generally will be available without the
payment of any direct or indirect consideration. However, if necessary or
advisable, a fund will pay for stand-by commitments, either separately in cash
or by paying a higher price for portfolio securities which are acquired subject
to the commitments.

It is difficult to evaluate the likelihood of use or the potential benefit of a
stand-by commitment. Therefore, it is expected that the Advisor will determine
that stand-by commitments ordinarily have a "fair value" of zero, regardless of
whether any direct or indirect consideration was paid. However, if the market
price of the security subject to the stand-by commitment is less than the
exercise price of the stand-by commitment, such security will ordinarily be
valued at such exercise price. Where a fund has paid for a stand-by commitment,
its cost will be reflected as unrealized depreciation for the period during
which the commitment is held.




Stripped Mortgage-Backed Securities. DWS U.S. Bond Index Fund may purchase
stripped mortgage-backed securities ("SMBS"), which are derivative multi-class
mortgage securities. The market value of the class consisting entirely of
principal payments generally is unusually volatile in response to changes in
interest rates. The yields on a class of SMBS that receives all or most of the
interest from the mortgaged assets are generally higher than prevailing market
yields on other mortgage-backed securities because their cash flow patterns are
more volatile and there is a greater risk that the initial investment will not
be fully recouped. See "Illiquid Securities."

In accordance with a requirement imposed by the staff of the Securities and
Exchange Commission (the "SEC"), the portfolio management team will consider
privately issued fixed rate interest only ("IO") and principal only ("PO") to be
illiquid securities for purposes of the Fund's limitation on investments in
illiquid securities. Unless the portfolio management team determines that a
particular government-issued fixed rate IO or PO is liquid, it will also
consider these IOs and POs to be illiquid.


Supranational Entities. Supranational entities are international organizations
designated or supported by governmental entities to promote economic
reconstruction or development and international banking institutions and related
government agencies. Examples include the International Bank for Reconstruction
and Development (the World Bank), the European Coal and Steel Community, The
Asian Development Bank and the InterAmerican Development Bank. Obligations of
supranational entities are backed by the guarantee of one or more foreign
governmental parties which sponsor the entity.

Synthetic Investments. In certain circumstances, a fund may wish to obtain the
price performance of a security without actually purchasing the security in
circumstances where, for example, the security is illiquid, or is unavailable
for direct investment or available only on less attractive terms. In such
circumstances, a fund may invest in synthetic or derivative alternative
investments ("Synthetic Investments") that are based upon or otherwise relate to
the economic performance of the underlying securities. Synthetic Investments may
include swap transactions, notes or units with variable redemption amounts, and
other similar instruments and contracts. Synthetic Investments typically do not
represent beneficial ownership of the underlying security, usually are not
collateralized or otherwise secured by the counterparty and may or may not have
any credit enhancements attached to them. Accordingly, Synthetic Investments
involve exposure not only to the creditworthiness of the issuer of the
underlying security, changes in exchange rates and future governmental actions
taken by the jurisdiction in which the underlying security is issued, but also
to the creditworthiness and legal standing of the counterparties involved. In
addition, Synthetic Investments typically are illiquid.

Tax-Exempt Commercial Paper. Issues of tax-exempt commercial paper typically
represent short-term, unsecured, negotiable promissory notes. These obligations
are issued by state and local governments and their agencies to finance working
capital needs of municipalities or to provide interim construction financing and
are paid from general revenues of municipalities or are refinanced with
long-term debt. In most cases, tax-exempt commercial paper is backed by letters
of credit, lending agreements, note repurchase agreements or other credit
facility agreements offered by banks or other institutions.

TBA Purchase Commitments. A fund may enter into TBA purchase commitments to
purchase securities for a fixed price at a future date, typically not exceeding
45 days. TBA purchase commitments may be considered securities in themselves,
and involve a risk of loss if the value of the security to be purchased declines
prior to settlement date, which risk is in addition to the risk of decline in
the value of a fund's other assets. Unsettled TBA purchase commitments are
valued at the current market value of the underlying securities.

Tender Option Bonds. A tender option bond is a municipal security (generally
held pursuant to a custodial arrangement) having a relatively long maturity and
bearing interest at a fixed rate substantially higher than prevailing short-term
tax-exempt rates. The bond is typically issued in conjunction with the agreement
of a third party, such as a bank, broker-dealer or other financial institution,
pursuant to which such institution grants the security holders the option, at
periodic intervals, to tender their securities to the institution and receive
the face value thereof.

As consideration for providing the option, the financial institution receives
periodic fees equal to the difference between the bond's fixed coupon rate and
the rate, as determined by a remarketing or similar agent at or near the
commencement of such period, that would cause the securities, coupled with the
tender option, to trade at par on the date of such determination. Thus, after
payment of this fee, the security holder effectively holds a demand obligation
that bears interest at the prevailing short-term tax-exempt rate.

However, an institution will not be obligated to accept tendered bonds in the
event of certain defaults or a significant downgrade in the credit rating
assigned to the issuer of the bond. The liquidity of a tender option bond is a
function of the credit quality of both the bond issuer and the financial
institution providing liquidity. Tender option bonds are deemed to be liquid
unless, in the opinion of the Advisor, the credit quality of the bond issuer and
the financial institution is deemed, in light of a fund's credit quality
requirements, to be inadequate. A fund intends to invest only in tender option
bonds the interest on which will, in the opinion of bond counsel, counsel for
the issuer of interests therein or counsel selected by the Advisor, be exempt
from regular federal income tax. However, because there can be no assurance that
the IRS will agree with such counsel's opinion in any particular case, there is
a risk that a fund will not be considered the owner of such tender option bonds
and thus will not be entitled to treat such interest as exempt from such tax.
Additionally, the federal income tax treatment of certain other aspects of these
investments, including the proper tax treatment of tender option bonds and the
associated fees, in relation to various regulated investment company tax
provisions is unclear. A fund intends to manage its portfolio in a manner
designed to eliminate or minimize any adverse impact from the tax rules
applicable to these investments.

Third Party Puts. A fund may purchase long-term fixed rate bonds that have been
coupled with an option granted by a third party financial institution allowing a
fund at specified intervals to tender (or "put") the bonds to the institution
and receive the face value thereof (plus accrued interest). These third party
puts are available in several different forms, may be represented by custodial
receipts or trust certificates and may be combined with other features such as
interest rate swaps. A fund receives a short-term rate of interest (which is
periodically reset), and the interest rate differential between that rate and
the fixed rate on the bond is retained by the financial institution. The
financial institution granting the option does not provide credit enhancement,
and in the event that there is a default in the payment of principal or
interest, or downgrading of a bond or a loss of the bond's tax-exempt status,
the put option will terminate automatically, the risk to a fund will be that of
holding such a long-term bond and the weighted average maturity of a fund's
portfolio would be adversely affected.

These bonds coupled with puts may present the same tax issues as are associated
with Stand-By Commitments. As with any Stand-By Commitments acquired by a fund,
a fund intends to take the position that it is the owner of any municipal
obligation acquired subject to a third-party put, and that tax-exempt interest
earned with respect to such municipal obligations will be tax-exempt in its
hands. There is no assurance that the IRS will agree with such position in any
particular case. Additionally, the federal income tax treatment of certain other
aspects of these investments, including the treatment of tender fees and swap
payments, in relation to various regulated investment company tax provisions is
unclear. However, the advisor seeks to manage a fund's portfolio in a manner
designed to minimize any adverse impact from these investments.

Trust Preferred Securities. A fund may invest in Trust Preferred Securities,
which are hybrid instruments issued by a special purpose trust (the "Special
Trust"), the entire equity interest of which is owned by a single issuer. The
proceeds of the issuance to the Fund of Trust Preferred Securities are typically
used to purchase a junior subordinated debenture, and distributions from the
Special Trust are funded by the payments of principal and interest on the
subordinated debenture.

If payments on the underlying junior subordinated debentures held by the Special
Trust are deferred by the debenture issuer, the debentures would be treated as
original issue discount ("OID") obligations for the remainder of their term. As
a result, holders of Trust Preferred Securities, such as a fund, would be
required to accrue daily for Federal income tax purposes their share of the
stated interest and the de minimis OID on the debentures (regardless of whether
a fund receives any cash distributions from the Special Trust), and the value of
Trust Preferred Securities would likely be negatively affected. Interest
payments on the underlying junior subordinated debentures typically may only be
deferred if dividends are suspended on both common and preferred stock of the
issuer. The underlying junior subordinated debentures generally rank slightly
higher in terms of payment priority than both common and preferred securities of
the issuer, but rank below other subordinated debentures and debt securities.
Trust Preferred Securities may be subject to mandatory prepayment under certain
circumstances. The market values of Trust Preferred Securities may be more
volatile than those of conventional debt securities. Trust Preferred Securities
may be issued in reliance on Rule 144A under the 1933 Act, and, unless and until
registered, are restricted securities; there can be no assurance as to the
liquidity of Trust Preferred Securities and the ability of holders of Trust
Preferred Securities, such as a fund, to sell their holdings.

US Government Securities. There are two broad categories of US
Government-related debt instruments: (a) direct obligations of the US Treasury,
and (b) securities issued or guaranteed by US Government agencies.

Examples of direct obligations of the US Treasury are Treasury Bills, Notes,
Bonds and other debt securities issued by the US Treasury. These instruments are
backed by the "full faith and credit" of the United States. They differ
primarily in interest rates, the length of maturities and the dates of issuance.
Treasury bills have original maturities of one year or less. Treasury notes have
original maturities of one to ten years and Treasury bonds generally have
original maturities of greater than ten years.

Some agency securities are backed by the full faith and credit of the United
States (such as Maritime Administration Title XI Ship Financing Bonds and Agency
for International Development Housing Guarantee Program Bonds) and others are
backed only by the rights of the issuer to borrow from the US Treasury (such as
Federal Home Loan Bank Bonds and Federal National Mortgage Association Bonds),
while still others, such as the securities of the Federal Farm Credit Bank, are
supported only by the credit of the issuer. With respect to securities supported
only by the credit of the issuing agency or by an additional line of credit with
the US Treasury, there is no guarantee that the US Government will provide
support to such agencies and such securities may involve risk of loss of
principal and interest.

US Government Securities may include "zero coupon" securities that have been
stripped by the US Government of their unmatured interest coupons and
collateralized obligations issued or guaranteed by a US Government agency or
instrumentality.

Interest rates on US Government obligations may be fixed or variable. Interest
rates on variable rate obligations are adjusted at regular intervals, at least
annually, according to a formula reflecting then current specified standard
rates, such as 91-day US Treasury bill rates. These adjustments generally tend
to reduce fluctuations in the market value of the securities.

The government guarantee of the US Government Securities in a fund's portfolio
does not guarantee the net asset value of the shares of a fund. There are market
risks inherent in all investments in securities and the value of an investment
in a fund will fluctuate over time. Normally, the value of investments in US
Government Securities varies inversely with changes in interest rates. For
example, as interest rates rise the value of investments in US Government
Securities will tend to decline, and as interest rates fall the value of a
fund's investments will tend to increase. In addition, the potential for
appreciation in the event of a decline in interest rates may be limited or
negated by increased principal prepayments with respect to certain
Mortgage-Backed Securities, such as GNMA Certificates. Prepayments of high
interest rate Mortgage-Backed Securities during times of declining interest
rates will tend to lower the return of a fund and may even result in losses to a
fund if some securities were acquired at a premium. Moreover, during periods of
rising interest rates, prepayments of Mortgage-Backed Securities may decline,
resulting in the extension of a fund's average portfolio maturity. As a result,
a fund's portfolio may experience greater volatility during periods of rising
interest rates than under normal market conditions.

Variable and Floating Rate Instruments. A fund may invest in variable or
floating rate instruments and variable rate demand instruments, including
variable amount master demand notes. These instruments will normally involve
industrial development or revenue bonds that provide that the rate of interest
is set as a specific percentage of a designated base rate (such as the prime
rate) at a major commercial bank. In addition, the interest rate on these
securities may be reset daily, weekly or on some other reset period and may have
a floor or ceiling on interest rate changes. When holding such an instrument, a
Fund can demand payment of the obligation at all times or at stipulated dates on
short notice (not to exceed 30 days) at par plus accrued interest.

Debt instruments purchased by a fund may be structured to have variable or
floating interest rates. These instruments may include variable amount master
demand notes that permit the indebtedness to vary in addition to providing for
periodic adjustments in the interest rates. The Advisor will consider the
earning power, cash flows and other liquidity ratios of the issuers and
guarantors of such instruments and, if the instrument is subject to a demand
feature, will continuously monitor their financial ability to meet payment on
demand. Where necessary to ensure that a variable or floating rate instrument is
equivalent to the quality standards applicable to a fund's fixed income
investments, the issuer's obligation to pay the principal of the instrument will
be backed by an unconditional bank letter or line of credit, guarantee or
commitment to lend. Any bank providing such a bank letter, line of credit,
guarantee or loan commitment will meet a fund's investment quality standards
relating to investments in bank obligations. The Advisor will also continuously
monitor the creditworthiness of issuers of such instruments to determine whether
a fund should continue to hold the investments.

The absence of an active secondary market for certain variable and floating rate
notes could make it difficult to dispose of the instruments, and a fund could
suffer a loss if the issuer defaults or during periods in which a fund is not
entitled to exercise its demand rights.

Variable and floating rate instruments held by a fund will be subject to a
fund's limitation on investments in illiquid securities when a reliable trading
market for the instruments does not exist and the fund may not demand payment of
the principal amount of such instruments within seven days.

Warrants. The holder of a warrant has the right, until the warrant expires, to
purchase a given number of shares of a particular issuer at a specified price.
Such investments can provide a greater potential for profit or loss than an
equivalent investment in the underlying security. Prices of warrants do not
necessarily move, however, in tandem with the prices of the underlying
securities and are, therefore, considered speculative investments. Warrants pay
no dividends and confer no rights other than a purchase option. Thus, if a
warrant held by a fund were not exercised by the date of its expiration, a fund
would lose the entire purchase price of the warrant.

When-Issued Securities. A fund may from time to time purchase equity and debt
securities on a "when-issued," "delayed delivery" or "forward delivery" basis.
The price of such securities, which may be expressed in yield terms, is fixed at
the time the commitment to purchase is made, but delivery and payment for the
securities takes place at a later date. During the period between purchase and
settlement, no payment is made by a fund to the issuer and no interest accrues
to a fund. When a fund purchases such securities, it immediately assumes the
risks of ownership, including the risk of price fluctuation. Failure to deliver
a security purchased on this basis may result in a loss or missed opportunity to
make an alternative investment.

To the extent that assets of a fund are held in cash pending the settlement of a
purchase of securities, a fund would earn no income. While such securities may
be sold prior to the settlement date, a fund intends to purchase them with the
purpose of actually acquiring them unless a sale appears desirable for
investment reasons. At the time a fund makes the commitment to purchase a
security on this basis, it will record the transaction and reflect the value of
the security in determining its net asset value. The market value of the
securities may be more or less than the purchase price.


Yankee Bonds. DWS U.S. Bond Index Fund may invest in Yankee bonds. Yankee Bonds
are US dollar-denominated bonds sold in the US by non-US issuers. As compared
with bonds issued in the US, such bond issues normally carry an interest rate
but are less actively traded. Investing in the securities of foreign companies
involves more risks than investing in securities of US companies. Their value is
subject to economic and political developments in the countries where the
companies operate and to changes in foreign currency values. Values may also be
affected by foreign tax laws, changes in foreign economic or monetary policies,
exchange control regulations and regulations involving prohibitions on the
repatriation of foreign currencies. In many foreign countries, there is less
publicly available information about foreign issuers, and there is less
government regulation and supervision of foreign stock exchanges, brokers and
listed companies. Also in many foreign countries, companies are not subject to
uniform accounting, auditing, and financial reporting standards comparable to
those applicable to domestic issuers. Security trading practices and custody
arrangements abroad may offer less protection to the fund's investments and
there may be difficulty in enforcing legal rights outside the United States.
Settlement of transactions in some foreign markets may be delayed or may be less
frequent than in the United States which could affect the liquidity of the
fund's portfolio. Additionally, in some foreign countries, there is the
possibility of expropriation or confiscatory taxation, limitations on the
removal of securities, property, or other fund assets, political or social
instability or diplomatic developments which could affect investments in foreign
securities. In addition, the relative performance of various countries' fixed
income markets historically has reflected wide variations relating to the unique
characteristics of each country's economy. Year-to-year fluctuations in certain
markets have been significant, and negative returns have been experienced in
various markets from time to time.


Zero Coupon Securities. A fund may invest in zero coupon securities, which pay
no cash income and are sold at substantial discounts from their value at
maturity. When held to maturity, their entire income, which consists of
accretion of discount, comes from the difference between the issue price and
their value at maturity. Zero coupon securities are subject to greater market
value fluctuations from changing interest rates than debt obligations of
comparable maturities which make current distributions of interest (cash). Zero
coupon securities which are convertible into common stock offer the opportunity
for capital appreciation as increases (or decreases) in market value of such
securities closely follow the movements in the market value of the underlying
common stock. Zero coupon convertible securities generally are expected to be
less volatile than the underlying common stocks as they usually are issued with
maturities of 15 years or less and are issued with options and/or redemption
features exercisable by the holder of the obligation entitling the holder to
redeem the obligation and receive a defined cash payment.

Zero coupon securities include municipal securities, securities issued directly
by the US Treasury, and US Treasury bonds or notes and their unmatured interest
coupons and receipts for their underlying principal ("coupons") which have been
separated by their holder, typically a custodian bank or investment brokerage
firm, from the underlying principal (the "corpus") of the US Treasury security.
A number of securities firms and banks have stripped the interest coupons and
receipts and then resold them in custodial receipt programs with a number of
different names, including Treasury Income Growth Receipts ("TIGRS(TM)") and
Certificate of Accrual on Treasuries ("CATS(TM)"). The underlying US Treasury
bonds and notes themselves are held in book-entry form at the Federal Reserve
Bank or, in the case of bearer securities (i.e., unregistered securities which
are owned ostensibly by the bearer or holder thereof), in trust on behalf of the
owners thereof. Counsel to the underwriters of these certificates or other
evidences of ownership of the US Treasury securities have stated that, for
federal tax and securities purposes, in their opinion purchasers of such
certificates, such as a fund, most likely will be deemed the beneficial holder
of the underlying US Government securities. A fund intends to adhere to the
current SEC staff position that privately stripped obligations should not be
considered US Government securities for the purpose of determining if a fund is
"diversified" under the 1940 Act.

The US Treasury has facilitated transfers of ownership of zero coupon securities
by accounting separately for the beneficial ownership of particular interest
coupon and corpus payments on Treasury securities through the Federal Reserve
book-entry record-keeping system. The Federal Reserve program, as established by
the Treasury Department, is known as "STRIPS" or "Separate Trading of Registered
Interest and Principal of Securities." Under the STRIPS program, a fund will be
able to have its beneficial ownership of zero coupon securities recorded
directly in the book-entry record-keeping system in lieu of having to hold
certificates or other evidences of ownership of the underlying US Treasury
securities.

When US Treasury obligations have been stripped of their unmatured interest
coupons by the holder, the principal or corpus is sold at a deep discount
because the buyer receives only the right to receive a future fixed payment on
the security and does not receive any rights to periodic interest (cash)
payments. Once stripped or separated, the corpus and coupons may be sold
separately. Typically, the coupons are sold separately or grouped with other
coupons with like maturity dates and sold bundled in such form. Purchasers of
stripped obligations acquire, in effect, discount obligations that are
economically identical to the zero coupon securities that the Treasury sells.

Strategic Transactions and Derivatives

A fund may, but is not required to, utilize various other investment strategies
as described below for a variety of purposes, such as hedging various market
risks, managing the effective maturity or duration of the fixed-income
securities in a fund's portfolio or enhancing potential gain. These strategies
may be executed through the use of derivative contracts.

In the course of pursuing these investment strategies, a fund may purchase and
sell exchange-listed and over-the-counter put and call options on securities,
equity and fixed-income indices and other instruments, purchase and sell futures
contracts and options thereon, enter into various transactions such as swaps,
caps, floors, collars, currency forward contracts, currency futures contracts,
currency swaps or options on currencies, or currency futures and various other
currency transactions (collectively, all the above are called "Strategic
Transactions"). In addition, certain Strategic Transactions may also include
additional techniques, instruments or strategies that are permitted as
regulatory changes occur. Strategic Transactions may be used without limit
(subject to certain limits imposed by the 1940 Act) to attempt to protect
against possible changes in the market value of securities held in or to be
purchased for a fund's portfolio resulting from securities markets or currency
exchange rate fluctuations, to protect a fund's unrealized gains in the value of
its portfolio securities, to facilitate the sale of such securities for
investment purposes, to manage the effective maturity or duration of a fund's
portfolio, to establish a position in the derivatives markets as a substitute
for purchasing or selling particular securities or for any other purpose
permitted by applicable law. Some Strategic Transactions may also be used to
enhance potential gain. Any or all of these investment techniques may be used at
any time and in any combination, and there is no particular strategy that
dictates the use of one technique rather than another, as use of any Strategic
Transaction is a function of numerous variables including market conditions. The
ability of a fund to utilize these Strategic Transactions successfully will
depend on the Advisor's ability to predict pertinent market movements, which
cannot be assured. Strategic Transactions will not be used to alter fundamental
investment purposes and characteristics of a fund.

Strategic Transactions, including derivative contracts, have risks associated
with them including possible default by the other party to the transaction,
illiquidity and, to the extent the Advisor's view as to certain market movements
is incorrect, the risk that the use of such Strategic Transactions could result
in losses greater than if they had not been used. Use of put and call options
may result in losses to a fund, force the sale or purchase of portfolio
securities at inopportune times or for prices higher than (in the case of put
options) or lower than (in the case of call options) current market values,
limit the amount of appreciation a fund can realize on its investments or cause
a fund to hold a security it might otherwise sell. The use of currency
transactions can result in a fund incurring losses as a result of a number of
factors including the imposition of exchange controls, suspension of
settlements, or the inability to deliver or receive a specified currency. The
use of options and futures transactions entails certain other risks. In
particular, the variable degree of correlation between price movements of
futures contracts and price movements in the related portfolio position of a
fund creates the possibility that losses on the hedging instrument may be
greater than gains in the value of a fund's position. In addition, futures and
options markets may not be liquid in all circumstances and certain
over-the-counter options may have no markets. As a result, in certain markets, a
fund might not be able to close out a transaction without incurring substantial
losses, if at all. Although the use of futures and options transactions for
hedging should tend to minimize the risk of loss due to a decline in the value
of the hedged position, at the same time they tend to limit any potential gain
which might result from an increase in value of such position. Other Strategic
Transactions, such as forward contracts and swaps, are also subject to similar
risks. Losses resulting from the use of Strategic Transactions would reduce net
asset value, and possibly income, and such losses can be greater than if the
Strategic Transactions had not been utilized.

Combined Transactions. A fund may enter into multiple transactions, including
multiple options transactions, multiple futures transactions, multiple currency
transactions (including forward currency contracts) and multiple interest rate
transactions and any combination of futures, options, currency and interest rate
transactions ("component" transactions), instead of a single Strategic
Transaction, as part of a single or combined strategy when, in the opinion of
the advisor, it is in the best interests of a fund to do so. A combined
transaction will usually contain elements of risk that are present in each of
its component transactions. Although combined transactions are normally entered
into based on the advisor's judgment that the combined strategies will reduce
risk or otherwise more effectively achieve the desired portfolio management
goal, it is possible that the combination will instead increase such risks or
hinder achievement of the portfolio management objective.

Commodities-Linked Derivative Instruments. A fund intends to invest in
commodities-linked derivative instruments, in particular in structured notes.
The value of a commodities-linked derivative instrument typically is based on
the price movements of a physical commodity, a commodity futures contract or
commodity index, or some other readily measurable economic variable dependent
upon changes in the value of commodities or the commodities markets. A fund
invests in commodities-linked derivative investments that are hybrid instruments
excluded from regulation under the Commodity Exchange Act and the rules
thereunder, so that a fund will not be considered a "commodity pool." A fund may
invest up to 40% of its total assets in qualifying hybrid instruments.
Additionally, from time to time the fund may invest in other hybrid instruments
that do not qualify for exemption from regulation under the Commodity Exchange
Act.

A fund will invest in derivative debt instruments with principal and/or coupon
payments linked to the value of commodities, commodity futures contracts, or the
performance of commodity indices. These are "commodities-linked" or
"index-linked" notes. They are sometimes referred to as "structured notes"
because the terms of the debt instrument may be structured by the issuer of the
note and the purchaser of the note, such as a fund. These notes may be issued by
banks, brokerage firms, insurance companies and other corporations.

The values of these notes will rise and fall in response to changes in the
underlying commodity or related index or investment. These notes expose a fund
economically to movements in commodity prices, but a particular note is
primarily a debt obligation. These notes also are subject to credit and interest
rate risks that in general affect the value of debt securities. Therefore, at
the maturity of the note, a fund may receive more or less principal than it
originally invested. A fund might receive interest payments on the note that are
more or less than the stated coupon interest rate payments. To try to reduce
this risk, a fund does not expect to invest more than 40% of its total assets in
structured notes under whose terms the potential loss, either at redemption or
maturity, exceeds 50% of the face value of the notes. That amount is calculated
at the time of investment.

The structured notes a fund enters into are expected to involve leverage,
meaning that the value of the instrument will be calculated as a multiple of the
upward or downward price movement of the underlying index. The prices of
commodity-linked instruments may move in different directions than investments
in traditional equity and debt securities in periods of rising inflation. Of
course, there can be no guarantee that a fund's commodity-linked investments
would not be correlated with traditional financial assets under any particular
market conditions.

Commodity-linked structured notes may be issued by US and foreign banks,
brokerage firms, insurance companies and other corporations. These notes are
debt securities of the issuer and so, in addition to fluctuating in response to
changes in the underlying commodity index, will be subject to credit and
interest rate risks that typically affect debt securities.

The commodity-linked instruments a fund invests in may be wholly principal
protected, partially principal protected or offer no principal protection. With
a wholly principal protected instrument, a fund will receive at maturity the
greater of the par value of the note or the increase in value of the underlying
index. Partially protected instruments may suffer some loss of principal up to a
specified limit if the underlying index declines in value during the term of the
instrument. For instruments without principal protection, there is a risk that
the instrument could lose all of its value if the index declines sufficiently.
The Advisor's decision on whether and to what extent to use principal protection
depends in part on the cost of the protection. In addition, the ability of a
fund to take advantage of any protection feature depends on the creditworthiness
of the issuer of the instrument.

Although a fund itself will not be leveraged, some of the commodity-linked
instruments the fund may hold will involve leverage. The fund will not invest in
an instrument if, at the time of purchase, (1) that instrument's "leverage
ratio" exceeds 300% of the price increase (or decrease) in the underlying index
or (2) the fund's "portfolio leverage ratio" exceeds 150%. What this means is
that for an instrument with a "leverage factor" of 300%, a 1% gain (or loss) in
the underlying index would result in a 3% gain (or loss) in the value of the
instrument. "Portfolio leverage ratio" is defined as the average (mean) leverage
ratio of all instruments in a fund's portfolio, weighted by the market values of
such instruments or, in the case of futures contracts, their notional value.

Derivative strategies and the writing of uncovered (or so-called "naked")
options are speculative and may hurt a Fund's performance. A fund may attempt to
hedge its investments in order to mitigate risk, but it is not required to do
so. The benefits to be derived from the fund's derivatives and options strategy
are dependent upon the Advisor's ability to discern pricing inefficiencies and
predict trends in the commodities and other markets, which decisions could prove
to be inaccurate. This requires different skills and techniques than predicting
changes in the price of individual stocks or fixed-income securities, and there
can be no assurance that the use of this strategy will be successful.


General Characteristics of Options. Put options and call options typically have
similar structural characteristics and operational mechanics regardless of the
underlying instrument on which they are purchased or sold. Thus, the following
general discussion relates to each of the particular types of options discussed
in greater detail below. In addition, many Strategic Transactions involving
options require segregation of a fund's assets in special accounts, as described
in the section entitled "Asset Segregation."

A put option gives the purchaser of the option, upon payment of a premium, the
right to sell, and the writer the obligation to buy, the underlying security,
commodity, index, currency or other instrument at the exercise price. For
instance, a fund's purchase of a put option on a security might be designed to
protect its holdings in the underlying instrument (or, in some cases, a similar
instrument) against a substantial decline in the market value by giving a fund
the right to sell such instrument at the option exercise price. A call option,
upon payment of a premium, gives the purchaser of the option the right to buy,
and the seller the obligation to sell, the underlying instrument at the exercise
price. A fund's purchase of a call option on a security, financial future,
index, currency or other instrument might be intended to protect a fund against
an increase in the price of the underlying instrument that it intends to
purchase in the future by fixing the price at which it may purchase such
instrument. An American style put or call option may be exercised at any time
during the option period while a European style put or call option may be
exercised only upon expiration or during a fixed period prior thereto. A fund is
authorized to purchase and sell exchange listed options and over-the-counter
options ("OTC options"). Exchange listed options are issued by a regulated
intermediary such as the Options Clearing Corporation ("OCC"), which guarantees
the performance of the obligations of the parties to such options. The
discussion below uses the OCC as an example, but is also applicable to other
financial intermediaries.

With certain exceptions, OCC issued and exchange listed options generally settle
by physical delivery of the underlying security or currency, although in the
future cash settlement may become available. Index options and Eurodollar
instruments are cash settled for the net amount, if any, by which the option is
"in-the-money" (i.e., where the value of the underlying instrument exceeds, in
the case of a call option, or is less than, in the case of a put option, the
exercise price of the option) at the time the option is exercised. Frequently,
rather than taking or making delivery of the underlying instrument through the
process of exercising the option, listed options are closed by entering into
offsetting purchase or sale transactions that do not result in ownership of the
new option.

A fund's ability to close out its position as a purchaser or seller of an OCC or
exchange listed put or call option is dependent, in part, upon the liquidity of
the option market. Among the possible reasons for the absence of a liquid option
market on an exchange are: (i) insufficient trading interest in certain options;
(ii) restrictions on transactions imposed by an exchange; (iii) trading halts,
suspensions or other restrictions imposed with respect to particular classes or
series of options or underlying securities including reaching daily price
limits; (iv) interruption of the normal operations of the OCC or an exchange;
(v) inadequacy of the facilities of an exchange or OCC to handle current trading
volume; or (vi) a decision by one or more exchanges to discontinue the trading
of options (or a particular class or series of options), in which event the
relevant market for that option on that exchange would cease to exist, although
outstanding options on that exchange would generally continue to be exercisable
in accordance with their terms.

The hours of trading for listed options may not coincide with the hours during
which the underlying financial instruments are traded. To the extent that the
option markets close before the markets for the underlying financial
instruments, significant price and rate movements can take place in the
underlying markets that may not be reflected in the option markets.

OTC options are purchased from or sold to securities dealers, financial
institutions or other parties ("Counterparties") through direct bilateral
agreement with the Counterparty. In contrast to exchange listed options, which
generally have standardized terms and performance mechanics, all the terms of an
OTC option, including such terms as method of settlement, term, exercise price,
premium, guarantees and security, are set by negotiation of the parties. A fund
expects generally to enter into OTC options that have cash settlement
provisions, although it is not required to do so.

Unless the parties provide for it, there is no central clearing or guaranty
function in an OTC option. As a result, if the Counterparty fails to make or
take delivery of the security, currency or other instrument underlying an OTC
option it has entered into with a fund or fails to make a cash settlement
payment due in accordance with the terms of that option, a fund will lose any
premium it paid for the option as well as any anticipated benefit of the
transaction. Accordingly, the Advisor must assess the creditworthiness of each
such Counterparty or any guarantor or credit enhancement of the Counterparty's
credit to determine the likelihood that the terms of the OTC option will be
satisfied. A fund will engage in OTC option transactions only with US government
securities dealers recognized by the Federal Reserve Bank of New York as
"primary dealers" or broker/dealers, domestic or foreign banks or other
financial institutions which have received (or the guarantors of the obligation
of which have received) a short-term credit rating of A-1 from S&P or P-1 from
Moody's or an equivalent rating from any other nationally recognized statistical
rating organization ("NRSRO") or, in the case of OTC currency transactions, are
determined to be of equivalent credit quality by the Advisor. The staff of the
SEC currently takes the position that OTC options purchased by a fund, and
portfolio securities "covering" the amount of a fund's obligation pursuant to an
OTC option sold by it (the cost of any sell-back plus the in-the-money amount,
if any) are illiquid, and are subject to a fund's limitation on investing no
more than 15% of its net assets in illiquid securities.

If a fund sells a call option, the premium that it receives may serve as a
partial hedge, to the extent of the option premium, against a decrease in the
value of the underlying securities or instruments in its portfolio or will
increase a fund's income. The sale of put options can also provide income.

A fund may purchase and sell call options on securities including, but not
limited to, US Treasury and agency securities, mortgage-backed securities,
foreign sovereign debt, corporate debt securities, equity securities (including
convertible securities), Eurodollar instruments that are traded on US and
foreign securities exchanges and in the over-the-counter markets, and on
securities indices, currencies and futures contracts, and for DWS Massachusetts
Tax-Free Fund, municipal obligations. All calls sold by a fund must be "covered"
(i.e., a fund must own the securities or futures contract subject to the call)
or must meet the asset segregation requirements described below as long as the
call is outstanding. Even though a fund will receive the option premium to help
protect it against loss, a call sold by a fund exposes a fund during the term of
the option to possible loss of opportunity to realize appreciation in the market
price of the underlying security or instrument and may require a fund to hold a
security or instrument which it might otherwise have sold.

A fund may purchase and sell put options on securities including, but not
limited to, US Treasury and agency securities, mortgage-backed securities,
foreign sovereign debt, corporate debt securities, equity securities (including
convertible securities), Eurodollar instruments (whether or not it holds the
above securities in its portfolio), and on securities indices, currencies and
futures contracts other than futures on individual corporate debt and individual
equity securities and for DWS Massachusetts Tax-Free Fund, municipal
obligations. Except for DWS Technology Fund, a fund will not sell put options
if, as a result, more than 50% of a fund's total assets would be required to be
segregated to cover its potential obligations under such put options other than
those with respect to futures and options thereon. In selling put options, there
is a risk that a fund may be required to buy the underlying security at a
disadvantageous price above the market price.




General Characteristics of Futures. A fund may enter into futures contracts or
purchase or sell put and call options on such futures as hedges against
anticipated interest rate, currency or equity market changes, and for duration
management, risk management and return enhancement purposes. Futures are
generally bought and sold on the commodities exchanges where they are listed
with payment of initial and variation margin as described below. The sale of a
futures contract creates a firm obligation by the seller, to deliver to the
buyer the specific type of financial instrument called for in the contract at a
specific future time for a specified price (or, with respect to certain
instruments, such as index futures and Eurodollar instruments, the net cash
amount) and a firm obligation by the buyer to deliver the specified price.
Options on futures contracts are similar to options on securities except that an
option on a futures contract gives the purchaser the right in return for the
premium paid to assume a position in a futures contract and obligates the seller
to deliver such position.

A fund's use of futures and options thereon will in all cases be consistent with
applicable regulatory requirements and in particular the rules and regulations
of the Commodity Futures Trading Commission and will be entered into for bona
fide hedging, risk management (including duration management) or other portfolio
and return enhancement management purposes. Typically, maintaining a futures
contract or selling an option thereon requires a fund to deposit with a
financial intermediary as security for its obligations an amount of cash or
other specified assets (initial margin) which initially is typically 1% to 10%
of the face amount of the contract (but may be higher in some circumstances).
Additional cash or assets (variation margin) may be required to be deposited
thereafter on a daily basis as the mark to market value of the contract
fluctuates. The purchase of an option on financial futures involves payment of a
premium for the option without any further obligation on the part of a fund. If
a fund exercises an option on a futures contract it will be obligated to post
initial margin (and potential subsequent variation margin) for the resulting
futures position just as it would for any position. Futures contracts and
options thereon are generally settled by entering into an offsetting transaction
but there can be no assurance that the position can be offset prior to
settlement at an advantageous price, nor that delivery will occur.

A fund will not enter into a futures contract or related option (except for
closing transactions) if, immediately thereafter, the sum of the amount of its
initial margin and premiums on open futures contracts and options thereon would
exceed 5% of a fund's total assets (taken at current value); however, in the
case of an option that is in-the-money at the time of the purchase, the
in-the-money amount may be excluded in calculating the 5% limitation. The
segregation requirements with respect to futures contracts and options thereon
are described below.

Hedging Strategies. A fund may use certain strategies designed to adjust the
overall risk of its investment portfolio. These "hedging" strategies involve
derivative contracts, including (but not limited to) US Treasury and Eurodollar
futures contracts and exchange-traded put and call options on such futures
contracts. New financial products and risk management techniques continue to be
developed and may be used if consistent with a fund's investment objective and
policies. Among other purposes, these hedging strategies may be used to
effectively maintain desired portfolio duration or to protect against market
risk should a fund change its investments among different types of fixed income
securities.

A fund might not use any hedging strategies, and there can be no assurance that
any strategy used will succeed. If the Advisor is incorrect in its judgment on
market values, interest rates or other economic factors in using a hedging
strategy, a fund may have lower net income and a net loss on the investment.
Each of these strategies involves certain risks, which include:

o        the fact that the skills needed to use hedging instruments are
         different from those needed to select securities for a fund;

o        the possibility of imperfect correlation, or even no correlation,
         between the price movements of hedging instruments and price movements
         of the securities or currencies being hedged;

o        possible constraints placed on a fund's ability to purchase or sell
         portfolio investments at advantageous times due to the need for a fund
         to maintain "cover" or to segregate securities; and

o        the possibility that a fund will be unable to close out or liquidate
         its hedged position.

A hedge is designed to offset a loss in a portfolio position with a gain in the
hedged position; at the same time, however, a properly correlated hedge will
result in a gain in the portfolio position being offset by a loss in the hedged
position. As a result, the use of options, futures and currency exchange
transactions for hedging purposes could limit any potential gain from an
increase in the value of the position hedged. With respect to futures contracts,
since the value of portfolio securities will far exceed the value of the futures
contracts sold by a Fund, an increase in the value of the futures contracts
could only mitigate, but not totally offset, the decline in the value of a
Fund's assets.

To the extent that a fund engages in the strategies described above, a fund may
experience losses greater than if these strategies had not been utilized. In
addition to the risks described above, these instruments may be illiquid and/or
subject to trading limits, and a fund may be unable to close out a position
without incurring substantial losses, if at all. A fund is also subject to the
risk of default by a counterparty to an off-exchange transaction.

Options on Securities Indices and Other Financial Indices. A fund also may
purchase and sell call and put options on securities indices and other financial
indices and in so doing can achieve many of the same objectives it would achieve
through the sale or purchase of options on individual securities or other
instruments. Options on securities indices and other financial indices are
similar to options on a security or other instrument except that, rather than
settling by physical delivery of the underlying instrument, they settle by cash
settlement, i.e., an option on an index gives the holder the right to receive,
upon exercise of the option, an amount of cash if the closing level of the index
upon which the option is based exceeds, in the case of a call, or is less than,
in the case of a put, the exercise price of the option (except if, in the case
of an OTC option, physical delivery is specified). This amount of cash is equal
to the excess of the closing price of the index over the exercise price of the
option, which also may be multiplied by a formula value. The seller of the
option is obligated, in return for the premium received, to make delivery of
this amount. The gain or loss on an option on an index depends on price
movements in the instruments making up the market, market segment, industry or
other composite on which the underlying index is based, rather than price
movements in individual securities, as is the case with respect to options on
securities.

Currency Transactions. A fund may engage in currency transactions with
Counterparties primarily in order to hedge, or manage the risk of the value of
portfolio holdings denominated in particular currencies against fluctuations in
relative value. Currency transactions include forward currency contracts,
exchange listed currency futures, exchange listed and OTC options on currencies,
and currency swaps. A forward currency contract involves a privately negotiated
obligation to purchase or sell (with delivery generally required) a specific
currency at a future date, which may be any fixed number of days from the date
of the contract agreed upon by the parties, at a price set at the time of the
contract. A currency swap is an agreement to exchange cash flows based on the
notional difference among two or more currencies and operates similarly to an
interest rate swap, which is described below. A fund may enter into currency
transactions with Counterparties which have received (or the guarantors of the
obligations which have received) a credit rating of A-1 or P-1 by S&P or
Moody's, respectively, or that have an equivalent rating from a NRSRO or (except
for OTC currency options) are determined to be of equivalent credit quality by
the underlying fund's advisor.

A fund's dealings in forward currency contracts and other currency transactions
such as futures, options, options on futures and swaps generally will be limited
to hedging involving either specific transactions or portfolio positions except
as described below. Transaction hedging is entering into a currency transaction
with respect to specific assets or liabilities of a fund, which will generally
arise in connection with the purchase or sale of its portfolio securities or the
receipt of income therefrom. Position hedging is entering into a currency
transaction with respect to portfolio security positions denominated or
generally quoted in that currency.

A fund generally will not enter into a transaction to hedge currency exposure to
an extent greater, after netting all transactions intended wholly or partially
to offset other transactions, than the aggregate market value (at the time of
entering into the transaction) of the securities held in its portfolio that are
denominated or generally quoted in or currently convertible into such currency,
other than with respect to proxy hedging or cross hedging as described below, as
applicable.

A fund may also cross-hedge currencies by entering into transactions to purchase
or sell one or more currencies that are expected to decline in value relative to
other currencies to which a fund has or in which a fund expects to have
portfolio exposure.

To reduce the effect of currency fluctuations on the value of existing or
anticipated holdings of portfolio securities, a fund may also engage in proxy
hedging. Proxy hedging is often used when the currency to which the fund's
portfolio is exposed is difficult to hedge or to hedge against the dollar. Proxy
hedging entails entering into a commitment or option to sell a currency whose
changes in value are generally considered to be correlated to a currency or
currencies in which some or all of a fund's portfolio securities are or are
expected to be denominated, in exchange for US dollars. Currency hedging
involves some of the same risks and considerations as other transactions with
similar instruments. Currency transactions can result in losses to a fund if the
currency being hedged fluctuates in value to a degree or in a direction that is
not anticipated. Further, there is the risk that the perceived correlation
between various currencies may not be present or may not be present during the
particular time that a fund is engaging in proxy hedging. If a fund enters into
a currency hedging transaction, a fund will comply with the asset segregation
requirements described below.

Risks of Currency Transactions. Currency transactions are subject to risks
different from those of other portfolio transactions. Because currency control
is of great importance to the issuing governments and influences economic
planning and policy, purchases and sales of currency and related instruments can
be negatively affected by government exchange controls, blockages, and
manipulations or exchange restrictions imposed by governments. These can result
in losses to a fund if it is unable to deliver or receive currency or funds in
settlement of obligations and could also cause hedges it has entered into to be
rendered useless, resulting in full currency exposure as well as incurring
transaction costs. Buyers and sellers of currency futures are subject to the
same risks that apply to the use of futures generally. Further, settlement of a
currency futures contract for the purchase of most currencies must occur at a
bank based in the issuing nation. Trading options on currency futures is
relatively new, and the ability to establish and close out positions on such
options is subject to the maintenance of a liquid market which may not always be
available. Currency exchange rates may fluctuate based on factors extrinsic to
that country's economy.

Eurodollar Instruments. A fund may make investments in Eurodollar instruments.
Eurodollar instruments are US dollar-denominated futures contracts or options
thereon which are linked to the London Interbank Offered Rate ("LIBOR"),
although foreign currency-denominated instruments are available from time to
time. Eurodollar futures contracts enable purchasers to obtain a fixed rate for
the lending of funds and sellers to obtain a fixed rate for borrowings. A fund
might use Eurodollar futures contracts and options thereon to hedge against
changes in LIBOR, to which many interest rate swaps and fixed income instruments
are linked.

Risks of Strategic Transactions Outside the US. When conducted outside the US,
Strategic Transactions may not be regulated as rigorously as in the US, may not
involve a clearing mechanism and related guarantees, and are subject to the risk
of governmental actions affecting trading in, or the prices of, foreign
securities, currencies and other instruments. The value of such positions also
could be adversely affected by: (i) other complex foreign political, legal and
economic factors, (ii) lesser availability than in the US of data on which to
make trading decisions, (iii) delays in a fund's ability to act upon economic
events occurring in foreign markets during non-business hours in the US, (iv)
the imposition of different exercise and settlement terms and procedures and
margin requirements than in the US, and (v) lower trading volume and liquidity.

Swaps, Caps, Floors and Collars. Among the Strategic Transactions into which a
fund may enter are interest rate, currency, index and other swaps and the
purchase or sale of related caps, floors and collars. A fund expects to enter
into these transactions primarily to preserve a return or spread on a particular
investment or portion of its portfolio, to protect against currency
fluctuations, as a duration management technique, to protect against any
increase in the price of securities a fund anticipates purchasing at a later
date or to enhance returns. A fund will not sell interest rate caps or floors
where it does not own securities or other instruments providing the income
stream a fund may be obligated to pay. Interest rate swaps involve the exchange
by a fund with another party of their respective commitments to pay or receive
interest, e.g., an exchange of floating rate payments for fixed rate payments
with respect to a notional amount of principal. A currency swap is an agreement
to exchange cash flows on a notional amount of two or more currencies based on
the relative value differential among them and an index swap is an agreement to
swap cash flows on a notional amount based on changes in the values of the
reference indices. The purchase of a cap entitles the purchaser to receive
payments on a notional principal amount from the party selling such cap to the
extent that a specified index exceeds a predetermined interest rate or amount.
The purchase of a floor entitles the purchaser to receive payments on a notional
principal amount from the party selling such floor to the extent that a
specified index falls below a predetermined interest rate or amount. A collar is
a combination of a cap and a floor that preserves a certain return within a
predetermined range of interest rates or values.

Swaps will be entered in on a net basis, i.e., the two payment streams are
netted out in a cash settlement on the payment date or dates specified in the
instrument, with each fund receiving or paying, as the case may be, only the net
amount of the two payments. Each fund will not enter into any swap, cap, floor
or collar transaction unless, at the time of entering into such transaction, the
unsecured long-term debt of the Counterparty, combined with any credit
enhancements, is rated at least A by S&P or Moody's or has an equivalent rating
from another NRSRO or is determined to be of equivalent credit quality by the
Advisor. If there is a default by the Counterparty, each fund may have
contractual remedies pursuant to the agreements related to the transaction. The
swap market has grown substantially in recent years with a large number of banks
and investment banking firms acting both as principals and as agents utilizing
standardized swap documentation. As a result, the swap market has become
relatively liquid. Caps, floors and collars are more recent innovations for
which standardized documentation has not yet been fully developed and,
accordingly, they are less liquid than swaps.

A credit default swap is a contract between a buyer and a seller of protection
against a pre-defined credit event. The buyer of protection pays the seller a
fixed regular fee provided that no event of default on an underlying reference
obligation has occurred. If an event of default occurs, the seller must pay the
buyer the full notional value, or "par value," of the reference obligation in
exchange for the reference obligation. Credit default swaps are used as a means
of "buying" credit protection, i.e., attempting to mitigate the risk of default
or credit quality deterioration in some portion of a fund's holdings, or
"selling" credit protection, i.e., attempting to gain exposure to an underlying
issuer's credit quality characteristics without directly investing in that
issuer. Where a fund is a seller of credit protection, it effectively adds
leverage to its portfolio because, in addition to its total net assets, a fund
would be subject to investment exposure on the notional amount of the swap. A
fund will only sell credit protection with respect to securities in which it
would be authorized to invest directly. A fund currently considers credit
default swaps to be illiquid and treats the market value of the contract as
illiquid for purposes of determining compliance with a fund's restrictions on
investing in illiquid securities.

If a fund is a buyer of a credit default swap and no event of default occurs, a
fund will lose its investment and recover nothing. However, if a fund is a buyer
and an event of default occurs, a fund will receive the full notional value of
the reference obligation that may have little or no value. As a seller, the fund
receives a fixed rate of income through the term of the contract (typically
between six months and three years), provided that there is no default event. If
an event of default occurs, the seller must pay the buyer the full notional
value of the reference obligation. Credit default swaps involve greater risks
than if the fund had invested in the reference obligation directly.

A fund may use credit default swaps to gain exposure to particular issuers or
particular markets through investments in portfolios of credit default swaps,
such as Dow Jones CDX.NA.HY certificates. By investing in certificates
representing interests in a basket of credit default swaps, the fund is taking
credit risk with respect to an entity or group of entities and providing credit
protection to the swap counterparties. For example, the CDX EM is a tradable
basket of 19 credit default swaps on country credits which seeks to replicate
the returns on the indices of a broad group of emerging markets countries. The
credits are a subset of the countries represented by the JPMorgan Emerging
Markets Bond Index Global Diversified. By purchasing interests in CDX EM, the
fund is gaining emerging markets exposure through a single investment. Unlike
other types of credit default swaps which are generally considered illiquid,
credit default swap certificates generally can be sold within seven days and are
not subject to the fund's restrictions on investing in illiquid securities.


Spreadlocks. DWS U.S. Bond Index Fund may enter into spreadlocks. A spreadlock
is a form of swap contract that involves an exchange of a one-time cash payment
based on a specific financial index between the fund and another party. A
spreadlock allows an interest rate swap user to lock in the forward differential
between the interest rate swap rate and the yield of the government bond
underlying the swap. Essentially, a spreadlock allows the investor to buy or
sell the spread forward by entering into a forward contract on the swap spread
(i.e., the spread between the government yield and the swap rate (or yield)) for
a given maturity. The price of a spreadlock is determined by the yield spread
between a forward starting fixed/floating swap and a forward transaction in a
government bond. The value of the swap is adjusted daily and the change in value
is recorded as unrealized appreciation or depreciation until the agreement
matures, at which time the cash payment, based on the value of the swap on the
maturity date, is exchanged between the two parties.




Global Asset Allocation Strategy ("GAA Strategy"). In connection with the GAA
Strategy and in addition to the securities described above, a fund may invest in
indexed securities, futures contracts on securities indices, securities
representing securities of foreign issuers (e.g., ADRs, GDRs and EDRs), options
on stocks, options on futures contracts, foreign currency exchange transactions
and options on foreign currencies. These are discussed below, to the extent not
already described above.

Indexed Securities. The indexed securities in which a fund may invest include
debt securities whose value at maturity is determined by reference to the
relative prices of various currencies or to the price of a stock index. The
value of such securities depends on the price of foreign currencies, securities
indices or other financial values or statistics. These securities may be
positively or negatively indexed; that is, their value may increase or decrease
if the underlying instrument appreciates.

Securities Representing Securities of Foreign Issuers. A fund's investments in
the securities of foreign issuers may be made directly or in the form of ADRs,
GDRs, also referred to as International Depositary Receipts or "IDRs", EDRs or
other similar securities representing securities of foreign issuers. These
securities may not necessarily be denominated in the same currency as the
securities they represent, and while designed for use as alternatives to the
purchase of the underlying securities in their national markets and currencies,
are subject to the same risks as the foreign securities to which they relate.

ADRs are receipts, typically issued by a US bank or trust company, which
evidence ownership of underlying securities issued by a foreign corporation.
EDRs, which are sometimes referred to as Continental Depository Receipts
("CDRs"), are receipts issued in Europe, and GDRs or IDRs are issued outside the
United States. EDRs (CDRs) and GDRs (IDRs) are typically issued by non-US banks
and trust companies and evidence ownership of either foreign or domestic
securities. Generally, ADRs in registered form are designed for use in US
securities markets, and EDRs (CDRs) and GDRs (IDRs) in bearer form are designed
for use in European and non-US securities markets, respectively. For purposes of
a fund's investment policies, depository receipts generally are deemed to have
the same classification as the underlying securities they represent. Thus, a
depository receipt representing ownership of common stock will be treated as
common stock.

ADRs are publicly traded on exchanges or over-the-counter in the United States
and are issued through "sponsored" or "unsponsored" arrangements. In a sponsored
ADR arrangement, the foreign issuer assumes the obligation to pay some or all of
the depository's transaction fees, whereas under an unsponsored arrangement, the
foreign issuer assumes no obligations and the depository's transaction fees are
paid directly by the ADR holders. In addition, less information is available in
the United States about an unsponsored ADR than about a sponsored ADR.

Investments in foreign securities incur higher costs than investments in US
securities, including higher costs in making securities transactions as well as
foreign government taxes which may reduce the investment return of A fund. In
addition, foreign investments may include risks associated with currency
exchange rates, less complete information about additional companies, less
market liquidity and political instability.


Portfolio Holdings

In addition to the public disclosure of Fund portfolio holdings through required
Securities and Exchange Commission ("SEC") quarterly filings, a Fund may make
its portfolio holdings information publicly available on the DWS Funds' Web site
as described in each Fund's prospectus. Each Fund does not disseminate
non-public information about portfolio holdings except in accordance with
policies and procedures adopted by each Fund.

Each Fund's procedures permit non-public portfolio holdings information to be
shared with Deutsche Asset Management and its affiliates (collectively "DeAM"),
subadvisors, if any, custodians, independent registered public accounting firms,
attorneys, officers and trustees/directors and each of their respective
affiliates and advisers who require access to this information to fulfill their
duties to each Fund and are subject to the duties of confidentiality, including
the duty not to trade on non-public information, imposed by law or contract, or
by each Fund's procedures. This non-public information may also be disclosed,
subject to the requirements described below, to certain third parties, such as
securities lending agents, financial printers, proxy voting firms, mutual fund
analysts and rating and tracking agencies, or to shareholders in connection with
in-kind redemptions (collectively, "Authorized Third Parties").

Prior to any disclosure of each Fund's non-public portfolio holdings information
to Authorized Third Parties, a person authorized by each Fund's Trustees must
make a good faith determination in light of the facts then known that a Fund has
a legitimate business purpose for providing the information, that the disclosure
is in the best interest of each Fund, and that the recipient assents or
otherwise has a duty to keep the information confidential and to not trade based
on the information received while the information remains non-public. No
compensation is received by each Fund or DeAM for disclosing non-public holdings
information. Periodic reports regarding these procedures will be provided to
each Fund's Trustees.

Portfolio holdings information distributed by the trading desks of DeAM or a
subadvisor for the purpose of facilitating efficient trading of such securities
and receipt of relevant research is not subject to the foregoing requirements.
Non-public portfolio holding information does not include portfolio
characteristics (other than holdings or subsets of holdings) about each Fund and
information derived therefrom, including, but not limited to, how each Fund's
investments are divided among various sectors, industries, countries, value and
growth stocks, bonds, currencies and cash, types of bonds, bond maturities,
duration, bond coupons and bond credit quality ratings so long as the identify
of each Fund's holdings could not be derived from such information.




Registered investment companies that are subadvised by DeAM may be subject to
different portfolio holdings disclosure policies, and neither DeAM nor a Fund's
Trustees exercise control over such policies. In addition, separate account
clients of DeAM have access to their portfolio holdings and are not subject to a
fund's portfolio holdings disclosure policy. The portfolio holdings of some of
the funds subadvised by DeAM and some of the separate accounts managed by DeAM
may substantially overlap with the portfolio holdings of a Fund.

DeAM also manages certain unregistered commingled trusts and creates model
portfolios, the portfolio holdings of which may substantially overlap with the
portfolio holdings of a Fund. To the extent that investors in these commingled
trusts or recipients of model portfolio holdings information may receive
portfolio holdings information of their trust or of a model portfolio on a
different basis from that on which fund portfolio holdings information is made
public, DeAM has implemented procedures reasonably designed to encourage such
investors and recipients to keep such information confidential, and to prevent
those investors from trading on the basis of non-public holdings information.

There is no assurance that a Fund's policies and procedures with respect to the
disclosure of portfolio holdings information will protect a Fund from the
potential misuse of portfolio holdings information by those in possession of
that information.

                             MANAGEMENT OF THE FUNDS

Investment Advisor

Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is
part of Deutsche Asset Management ("DeAM"), is the investment advisor for each
Fund, with headquarters at 345 Park Avenue, New York, New York 10154. Under the
supervision of the Board of Trustees of the Trust, DIMA makes each Fund's
investment decisions, buys and sells securities for the Funds and conducts
research that leads to these purchase and sale decisions. The Advisor manages
each Fund's daily investment and business affairs subject to the policies
established by the Trust's Board of Trustees. The Funds' Advisor is also
responsible for selecting brokers and dealers and for negotiating brokerage
commissions and dealer charges. The Advisor's duties are described in more
detail below. DIMA and its predecessors have more than 80 years of experience
managing mutual funds. DIMA provides a full range of investment advisory
services to institutional and retail clients.


DeAM is the marketing name in the US for the asset management activities of
Deutsche Bank AG, DIMA, Deutsche Bank Trust Company Americas and DWS Trust
Company. DeAM is a global asset management organization that offers a wide range
of investing expertise and resources, including hundreds of portfolio managers
and analysts and an office network that reaches the world's major investment
centers. This well-resourced global investment platform brings together a wide
variety of experience and investment insight, across industries, regions, asset
classes and investing styles. DIMA is an indirect, wholly owned subsidiary of
Deutsche Bank AG. Deutsche Bank AG is a major global banking institution that is
engaged in a wide range of financial services, including investment management,
mutual fund, retail, private and commercial banking, investment banking and
insurance. DWS Investments is part of Deutsche Bank's Asset Management division
and, within the US, represents the retail asset management activities of
Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment
Management Americas Inc. and DWS Trust Company.


The Advisor provides investment counsel for many individuals and institutions,
including insurance companies, industrial corporations, and financial and
banking organizations, as well as providing investment advice to open- and
closed-end SEC registered funds.

In certain cases, the investments for a Fund are managed by the same individuals
who manage one or more other mutual funds advised by the Advisor that have
similar names, objectives and investment styles. You should be aware that a Fund
is likely to differ from these other mutual funds in size, cash flow pattern and
tax matters. Accordingly, the holdings and performance of a Fund can be expected
to vary from those of these other mutual funds.

Certain investments may be appropriate for a Fund and also for other clients
advised by the Advisor. Investment decisions for a Fund and other clients are
made with a view to achieving their respective investment objectives and after
consideration of such factors as their current holdings, availability of cash
for investment and the size of their investments generally. Frequently, a
particular security may be bought or sold for only one client or in different
amounts and at different times for more than one but less than all clients.
Likewise, a particular security may be bought for one or more clients when one
or more other clients are selling the security. In addition, purchases or sales
of the same security may be made for two or more clients on the same day. In
such event, such transactions will be allocated among the clients in a manner
believed by the Advisor to be equitable to each. In some cases, this procedure
could have an adverse effect on the price or amount of the securities purchased
or sold by a Fund. Purchase and sale orders for a Fund may be combined with
those of other clients of the Advisor in the interest of achieving the most
favorable net results to a Fund.


Investment Management Agreement


Pursuant to the investment management agreement (the "Agreement"), the Advisor
provides continuing investment management of the assets of the Funds. In
addition to the investment management of the assets of the Funds, the Advisor
determines the investments to be made for each Fund, including what portion of
its assets remain uninvested in cash or cash equivalents, and with whom the
orders for investments are placed, consistent with each Fund's policies as
stated in its Prospectuses and SAIs, or as adopted by each Fund's Board. The
Advisor will also monitor, to the extent not monitored by the Funds'
administrator or other agent, each Fund's compliance with its investment and tax
guidelines and other compliance policies. The Advisor provides investment
counsel for many individuals and institutions, including insurance companies,
industrial corporations, and financial and banking organizations, as well as
providing investment advice to open- and closed-end SEC registered funds.

The Advisor provides assistance to the Funds' Board in valuing the securities
and other instruments held by each Fund, to the extent reasonably required by
valuation policies and procedures that may be adopted by a Fund.

Pursuant to the Agreement, (unless otherwise provided in the agreement or as
determined by the Funds' Board and to the extent permitted by applicable law),
the Advisor pays the compensation and expenses of all the Board members,
officers, and executive employees of the Funds, including each Fund's share of
payroll taxes, who are affiliated persons of the Advisor.

The Agreement provides that each Fund is generally responsible for expenses that
include: fees payable to the Advisor; outside legal, accounting or auditing
expenses, including with respect to expenses related to negotiation, acquisition
or distribution of portfolio investments; maintenance of books and records that
are maintained by the Funds, the Funds' custodian, or other agents of the Funds;
taxes and governmental fees; fees and expenses of the Funds' accounting agent,
custodian, sub-custodians, depositories, transfer agents, dividend reimbursing
agents and registrars; payment for portfolio pricing or valuation services to
pricing agents, accountants, bankers and other specialists, if any; brokerage
commissions or other costs of acquiring or disposing of any portfolio securities
or other instruments of the Funds; and litigation expenses and other
extraordinary expenses not incurred in the ordinary course of the Funds'
business.

The Agreement allows the Advisor to delegate any of its duties under the
Agreement to a subadvisor, subject to a majority vote of the Board of the Funds,
including a majority of the Board who are not interested persons of the Funds,
and, if required by applicable law, subject to a majority vote of each Fund's
shareholders.

The Agreement provides that the Advisor shall not be liable for any error of
judgment or mistake of law or for any loss suffered by the Funds in connection
with matters to which the agreement relates, except a loss resulting from
willful malfeasance, bad faith or gross negligence on the part of the Advisor in
the performance of its duties or from reckless disregard by the Advisor of its
obligations and duties under the agreement. The Agreement may be terminated at
any time, without payment of penalty, by either party or by vote of a majority
of the outstanding voting securities of a Fund on 60 days' written notice.


The Agreement for each Fund will continue in effect from year to year only if
its continuance is approved annually by the vote of a majority of those Trustees
who are not parties to such Agreements or interested persons of the Advisor or
the Fund, cast in person at a meeting called for the purpose of voting on such
approval, and either by a vote of the Board or of a majority of the outstanding
voting securities of the respective Fund.

The Funds do not directly bear any management fees, although the Funds directly
bear other Fund fees and expenses. In addition, shareholders of the Funds
indirectly bear their pro rata share of the cost of operating the Underlying DWS
Funds in which the Funds invest in their capacity as a shareholder of the
Underlying DWS Funds and any ETFs in which the Funds invest.





Through September 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass Retirement Fund to the extent necessary to maintain the fund's total
operating expenses at 0.52%, 1.27% and 1.27% for Class A, Class B and Class C
shares, respectively, excluding certain expenses such as extraordinary expenses,
taxes, brokerage, interest and indirect fees and expenses of acquired funds
(underlying funds). Although there can be no assurance that the current
waiver/expense reimbursement arrangement will be maintained beyond September 30,
2009, the Advisor has committed to review the continuance of waiver/expense
reimbursement arrangement by September 30, 2009.





Through September 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass 2015 Fund to the extent necessary to maintain the fund's total
operating expenses at 0.48%, 1.23% and 1.23% for Class A, Class B and Class C
shares, respectively, excluding certain expenses such as extraordinary expenses,
taxes, brokerage, interest and indirect fees and expenses of acquired funds
(underlying funds). Although there can be no assurance that the current
waiver/expense reimbursement arrangement will be maintained beyond September 30,
2009, the Advisor has committed to review the continuance of waiver/expense
reimbursement arrangement by September 30, 2009.





Through September 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass 2020 Fund to the extent necessary to maintain the fund's total
operating expenses at 0.49%, 1.24% and 1.24% for Class A, Class B and Class C
shares, respectively, excluding certain expenses such as extraordinary expenses,
taxes, brokerage, interest and indirect fees and expenses of acquired funds
(underlying funds). Although there can be no assurance that the current
waiver/expense reimbursement arrangement will be maintained beyond September 30,
2009, the Advisor has committed to review the continuance of waiver/expense
reimbursement arrangement by September 30, 2009.





Through November 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass 2030 Fund to the extent necessary to maintain the fund's total
operating expenses at 0.45%, 1.20% and 1.20% for Class A, Class B and Class C
shares, respectively, excluding certain expenses such as extraordinary expenses,
taxes, brokerage, interest and indirect fees and expenses of acquired funds
(underlying funds).

Through November 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass 2040 Fund to the extent necessary to maintain the fund's total
operating expenses at 0.49% and 1.24% for Class A and Class C shares,
respectively, excluding certain expenses such as extraordinary expenses, taxes,
brokerage, interest, and indirect fees and expenses of acquired funds
(underlying funds).

In addition, the Board and shareholders have approved a subadvisor approval
policy for the Funds (the "Subadvisor Approval Policy"). The Subadvisor Approval
Policy permits the Advisor, subject to the approval of the Board, including a
majority of its independent board members, to appoint and replace subadvisors
and to amend sub-advisory contracts without obtaining shareholder approval.
Under the Subadvisor Approval Policy, the Board, including its independent board
members, will continue to evaluate and approve all new sub-advisory contracts
between the Advisor and any subadvisor, as well as all changes to any existing
subadvisory contract. The Funds cannot implement the Subadvisor Approval Policy
without the SEC either adopting revisions to current rules (as it proposed to do
in October 2003) or granting the Funds exemptive relief from existing rules. The
Funds and the Advisor would be subject to certain conditions imposed by the SEC
(and certain conditions that may be imposed in the future within either
exemptive relief or a rule) to ensure that the interests of the Funds and its
shareholders are adequately protected whenever the Advisor acts under the
Subadvisor Approval Policy, including any shareholder notice requirements.


The Advisor may enter into arrangements with affiliates and third party service
providers to perform various administrative, back-office and other services
relating to client accounts. Such service providers may be located in the US or
in non-US jurisdictions.


Pursuant to DeAM procedures approved by the Boards on behalf of the DWS funds,
proof of claim forms are routinely filed on behalf of the DWS funds by a third
party service provider, with certain limited exceptions. The Boards of the DWS
funds receive periodic reports regarding the implementation of these procedures.

Compensation of Portfolio Managers

Portfolio managers are eligible for total compensation comprised of base salary
and discretionary incentive compensation.

Base Salary - Base salary generally represents a smaller percentage of portfolio
managers' total compensation than discretionary incentive compensation. Base
salary is linked to job function, responsibilities and financial services
industry peer comparison through the use of extensive market data surveys.

Discretionary Incentive Compensation - Generally, discretionary incentive
compensation comprises a greater proportion of total compensation as a portfolio
manager's seniority and compensation levels increase. Discretionary incentive
compensation is determined based on an analysis of a number of factors,
including among other things, the performance of Deutsche Bank, the performance
of the Asset Management division, and the employee's individual contribution. In
evaluating individual contribution, management will consider a combination of
quantitative and qualitative factors. A portion of the portfolio manager's
discretionary incentive compensation may be delivered in long-term equity
programs (usually in the form of Deutsche Bank equity) (the "Equity Plan"). Top
performing portfolio managers may earn discretionary incentive compensation that
is a multiple of their base salary.

o        The quantitative analysis of a portfolio manager's individual
         performance is based on, among other factors, performance of all of the
         accounts managed by the portfolio manager (which includes the fund and
         any other accounts managed by the portfolio manager) over a one-,
         three-, and five-year period relative to the appropriate Morningstar
         and Lipper peer group universes and/or benchmark index(es) with respect
         to each account. Additionally, the portfolio manager's
         retail/institutional asset mix is weighted, as appropriate for
         evaluation purposes. Generally the benchmark index used is a benchmark
         index set forth in the fund's prospectus to which the fund's
         performance is compared. Additional or different appropriate peer group
         or benchmark indices may also be used. Primary weight is given to
         pre-tax portfolio performance over three-year and five-year time
         periods (adjusted as appropriate if the portfolio manager has served
         for less than five years) with lesser consideration given to portfolio
         performance over a one-year period. The increase or decrease in a
         fund's assets due to the purchase or sale of fund shares is not
         considered a material factor.

o        The qualitative analysis of a portfolio manager's individual
         performance is based on, among other things, the results of an annual
         management and internal peer review process, and management's
         assessment of overall portfolio manager contributions to investor
         relations, the investment process and overall performance (distinct
         from fund and other account performance). Other factors, including
         contributions made to the investment team, as well as adherence to
         Compliance Policies and Procedures, Risk Management procedures, the
         firm's Code of Ethics and "living the values" of the Advisor are also
         factors.

The quantitative analysis of a portfolio manager's performance is given more
weight in determining discretionary incentive compensation than the qualitative
portion.

Certain portfolio managers may also participate in the Equity Plan. The amount
of equity awarded under the long-term equity programs is generally based on the
individual's total compensation package and may comprise from 0% to 30% of the
total compensation award. As discretionary incentive compensation increases, the
percentage of compensation awarded in Deutsche Bank equity also increases.
Portfolio managers may receive a portion of their equity compensation in the
form of shares in the proprietary mutual funds that they manage or support.

Fund Ownership of Portfolio Managers

The following table shows the dollar range of shares owned beneficially and of
record by each member of each Fund's portfolio management team in each Fund as
well as in all DWS Funds as a group (i.e., those funds advised by Deutsche Asset
Management or its affiliates), including investments by their immediate family
members sharing the same household and amounts invested through retirement and
deferred compensation plans. This information is provided as of the Fund's most
recent fiscal year end.

<TABLE>
<CAPTION>
                           DWS
                       LifeCompass        DWS             DWS                                 DWS         Dollar Range of
Name of Portfolio       Retirement    LifeCompass     LifeCompass     DWS LifeCompass     LifeCompass      All DWS Fund
Manager                   Fund         2015 Fund       2020 Fund         2030 Fund         2040 Fund       Shares Owned
-------                   ----         ---------       ---------         ---------         ---------       ------------

<S>                    <C>  <C>       <C>  <C>       <C>  <C>        <C>       <C>       <C>  <C>       <C>        <C>
Inna Okounkova         $1 - $10,000   $1 - $10,000   $1 - $10,000    $10,001 - $50,000   $1 - $10,000   $100,001 - $500,000
Robert Wang            $1 - $10,000   $1 - $10,000   $1 - $10,000      $1 - $10,000      $1 - $10,000   $100,001 - $500,000
</TABLE>

Conflicts of Interest

In addition to managing the assets of each Fund, each Fund's portfolio managers
may have responsibility for managing other client accounts of the Advisor or its
affiliates. The tables below show, for each portfolio manager, the number and
asset size of (1) SEC registered investment companies (or series thereof) other
than the Fund, (2) pooled investment vehicles that are not registered investment
companies and (3) other accounts (e.g., accounts managed for individuals or
organizations) managed by each portfolio manager. Total assets attributed to
each portfolio manager in the tables below include total assets of each account
managed by them, although the manager may only manage a portion of such
account's assets. The tables also show the number of performance based fee
accounts, as well as the total assets of the accounts for which the advisory fee
is based on the performance of the account. This information is provided as of
the Fund's most recent fiscal year end.

DWS LifeCompass Retirement Fund

Other SEC Registered Investment Companies Managed:

<TABLE>
<CAPTION>
                                       Number of        Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts       Total Assets of
                                      Investment          Investment               with            Performance-Based
Name of Portfolio Manager             Companies           Companies        Performance-Based Fee     Fee Accounts
-------------------------             ---------           ---------        ---------------------     ------------

<S>                                       <C>             <C>                        <C>                  <C>
Inna Okounkova                            14              $3,737,483,246             0                    $0
Robert Wang                               41             $15,298,152,679             0                    $0

DWS LifeCompass 2015 Fund

Other SEC Registered Investment Companies Managed:

                                       Number of        Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts       Total Assets of
                                      Investment          Investment               with            Performance-Based
Name of Portfolio Manager              Companies          Companies         Performance-Based Fee    Fee Accounts
-------------------------              ---------          ---------         ---------------------    ------------

Inna Okounkova                            14              $3,617,427,160             0                    $0
Robert Wang                               41             $15,178,096,593             0                    $0

DWS LifeCompass 2020 Fund

Other SEC Registered Investment Companies Managed:

                                       Number of        Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts       Total Assets of
                                      Investment          Investment               with            Performance-Based
Name of Portfolio Manager              Companies           Companies       Performance-Based Fee     Fee Accounts
-------------------------              ---------           ---------       ---------------------     ------------

Inna Okounkova                            14              $3,595,993,570             0                    $0
Robert Wang                               41             $15,156,663,003             0                    $0

DWS LifeCompass 2030 Fund

Other SEC Registered Investment Companies Managed:

                                       Number of        Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts       Total Assets of
                                      Investment          Investment               with            Performance-Based
Name of Portfolio Manager              Companies           Companies       Performance-Based Fee     Fee Accounts
-------------------------              ---------           ---------       ---------------------     ------------

Inna Okounkova                            14               $3,821,245,574            0                    $0
Robert Wang                               41              $15,381,915,007            0                    $0

DWS LifeCompass 2040 Fund

Other SEC Registered Investment Companies Managed:

                                      Number of         Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts       Total Assets of
                                      Investment          Investment               with           Performance-Based
Name of Portfolio Manager             Companies            Companies       Performance-Based Fee     Fee Accounts
-------------------------             ---------            ---------       ---------------------     ------------

Inna Okounkova                             14           $3,856,772,612                0                   $0
Robert Wang                                41          $15,417,442,045                0                   $0

DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020
Fund, DWS LifeCompass 2030 Fund, DWS LifeCompass 2040 Fund

Other Pooled Investment Vehicles Managed:

                                      Number of                              Number of Pooled
                                       Pooled           Total Assets of      Investment Vehicle    Total Assets of
                                     Investment        Pooled Investment       Accounts with      Performance-Based
Name of Portfolio Manager             Vehicles              Vehicles       Performance-Based Fee     Fee Accounts
-------------------------             --------              --------       ---------------------     ------------


Inna Okounkova                              4             $87,692,463                   0                      $0
Robert Wang                                33            $898,187,238                   1            $114,496,869

DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020
Fund, DWS LifeCompass 2030 Fund, DWS LifeCompass 2040 Fund

Other Accounts Managed:

                                                                              Number of Other
                                                          Total Assets         Accounts with        Total Assets of
                                     Number of               of Other          Performance-Based       Performance-
Name of Portfolio Manager         Other Accounts             Accounts                Fee           Based Fee Accounts
-------------------------         --------------             --------                ---           ------------------

Inna Okounkova                              0                       $0                 0                     $0
Robert Wang                                49           $9,307,042,043                 8           $242,658,503
</TABLE>

In addition to the accounts above, an investment professional may manage
accounts in a personal capacity that may include holdings that are similar to,
or the same as, those of the Funds. The Advisor has in place a Code of Ethics
that is designed to address conflicts of interest and that, among other things,
imposes restrictions on the ability of portfolio managers and other "access
persons" to invest in securities that may be recommended or traded in the Funds
and other client accounts.

Real, potential or apparent conflicts of interest may arise when a portfolio
manager has day-to-day portfolio management responsibilities with respect to
more than one fund or account, including the following:

o        Certain investments may be appropriate for each Fund and also for other
         clients advised by the Advisor, including other client accounts managed
         by each Fund's portfolio management team. Investment decisions for each
         Fund and other clients are made with a view to achieving their
         respective investment objectives and after consideration of such
         factors as their current holdings, availability of cash for investment
         and the size of their investments generally. A particular security may
         be bought or sold for only one client or in different amounts and at
         different times for more than one but less than all clients. Likewise,
         because clients of the Advisor may have differing investment
         strategies, a particular security may be bought for one or more clients
         when one or more other clients are selling the security. The investment
         results achieved for each Fund may differ from the results achieved for
         other clients of the Advisor. In addition, purchases or sales of the
         same security may be made for two or more clients on the same day. In
         such event, such transactions will be allocated among the clients in a
         manner believed by the Advisor to be most equitable to each client,
         generally utilizing a pro rata allocation methodology. In some cases,
         the allocation procedure could potentially have an adverse effect or
         positive effect on the price or amount of the securities purchased or
         sold by each Fund. Purchase and sale orders for each Fund may be
         combined with those of other clients of the Advisor in the interest of
         achieving the most favorable net results to each Fund and the other
         clients.

o        To the extent that a portfolio manager has responsibilities for
         managing multiple client accounts, a portfolio manager will need to
         divide time and attention among relevant accounts. The Advisor attempts
         to minimize these conflicts by aligning its portfolio management teams
         by investment strategy and by employing similar investment models
         across multiple client accounts.

o        In some cases, an apparent conflict may arise where the Advisor has an
         incentive, such as a performance-based fee, in managing one account and
         not with respect to other accounts it manages. The Advisor will not
         determine allocations based on whether it receives a performance-based
         fee from the client. Additionally, the Advisor has in place supervisory
         oversight processes to periodically monitor performance deviations for
         accounts with like strategies.

o        The Advisor and its affiliates and the investment team of each Funds
         may manage other mutual funds and separate accounts on a long-short
         basis. The simultaneous management of long and short portfolios creates
         potential conflicts of interest including the risk that short sale
         activity could adversely affect the market value of the long
         positions(and vice versa), the risk arising from sequential orders in
         long and short positions, and the risks associated with receiving
         opposing orders at the same time. The Advisor has adopted procedures
         that it believes are reasonably designed to mitigate these potential
         conflicts of interest. Included in these procedures are specific
         guidelines developed to ensure fair and equitable treatment for all
         clients whose accounts are managed by each Fund's portfolio management
         team. The Advisor and the portfolio management team have established
         monitoring procedures, a protocol for supervisory reviews, as well as
         compliance oversight to ensure that potential conflicts of interest
         relating to this type of activity are properly addressed.

The Advisor is owned by Deutsche Bank AG, a multi-national financial services
company. Therefore, the Advisor is affiliated with a variety of entities that
provide, and/or engage in commercial banking, insurance, brokerage, investment
banking, financial advisory, broker-dealer activities (including sales and
trading), hedge funds, real estate and private equity investing, in addition to
the provision of investment management services to institutional and individual
investors. Since Deutsche Bank AG, its affiliates, directors, officers and
employees (the "Firm") are engaged in businesses and have interests other than
managing asset management accounts, such other activities involve real,
potential or apparent conflicts of interest. These interests and activities
include potential advisory, transactional and financial activities and other
interests in securities and companies that may be directly or indirectly
purchased or sold by the Firm for its clients' advisory accounts. These are
considerations of which advisory clients should be aware and which may cause
conflicts that could be to the disadvantage of the Advisor's advisory clients.
The Advisor has instituted business and compliance policies, procedures and
disclosures that are designed to identify, monitor and mitigate conflicts of
interest and, as appropriate, to report them to the Fund's Board.




Fees and Expenses of Underlying DWS Funds

As noted above, the Funds will bear their pro rata share of the Underlying DWS
Funds' fees and expenses. In addition, certain Underlying DWS Funds impose a fee
upon the redemption or exchange of shares held for less than one year. The fees,
which amount to 2% of the net asset value of the shares being redeemed or
exchanged, are assessed and retained by the Underlying DWS Funds for the benefit
of the remaining shareholders. The fee is intended to encourage long-term
investment in the Underlying DWS Fund. The fee is not a deferred sales charge,
is not a commission paid to the Advisor or its subsidiary and does not benefit
the Advisor in any way. Each such Underlying DWS Fund reserves the right to
modify the terms of or terminate this fee at any time. As a shareholder of such
Underlying DWS Funds, the Funds will be subject to such fees. Under normal
market conditions, the Funds will seek to avoid taking action that would result
in the imposition of such a fee. However, in the event that a fee is incurred,
the net assets of the Fund would be reduced by the amount of such fees that are
assessed and retained by the Underlying DWS Funds for the benefit of their
shareholders.

The management fees and total operating expenses of the Underlying DWS Funds
during their most recent fiscal year as reflected in the funds' currently
effective prospectuses are described in the following table. Reimbursement and
or waiver arrangements applicable to certain Underlying DWS Funds caused the net
fees and/or expenses for those funds to be lower than the values below.

<TABLE>
<CAPTION>
                                                                          Management        Total         Net
Name of Fund                                        Fiscal Year End        Fees (%)        Expenses     Expenses
------------                                        ---------------        --------        --------     --------


<S>                                                      <C>                 <C>              <C>             <C>
DWS Blue Chip Fund                                       10/31               0.57             0.67            N/A
DWS Capital Growth Fund(1)                                9/30              0.56+             0.74            N/A
DWS Commodity Securities Fund(2)                          6/30               0.95             1.22            N/A
DWS Disciplined Market Neutral Fund(3)                    8/31              1.35+             3.36            2.69
DWS Disciplined Long/Short Growth Fund(4)                 4/30               1.00             3.87            2.33
DWS Disciplined Long/Short Value Fund(5)                  4/30               1.00             3.42            2.30
DWS Emerging Markets Equity Fund(6)                      10/31               1.01             1.44            N/A
DWS Emerging Markets Fixed Income Fund(7)                10/31               0.67             1.05            N/A
DWS Equity 500 Index Fund(8)                             12/31               0.05             0.26            N/A
DWS Communications Fund(9)                               12/31               0.90             1.10            N/A
DWS Core Fixed Income Fund(10)                           10/31               0.40             0.59            N/A
DWS Floating Rate Plus Fund(11)                           5/31               0.65             1.19            0.95
DWS Global Thematic Fund(12)                              8/31               0.84             1.04            N/A
DWS Global Bond Fund(13)                                 10/31               0.62             1.22            1.01
DWS Global Opportunities Fund(14)                        10/31               0.99             1.24            N/A
DWS GNMA Fund                                             9/30              0.42+             0.58            N/A
DWS Gold & Precious Metals Fund(15)                      10/31               0.87             1.16            N/A
DWS Europe Equity Fund(16)                               10/31               0.65             0.87            N/A
DWS Growth & Income Fund(17)                             12/31              0.45+             0.50            N/A
DWS Health Care Fund                                      5/31               0.77             1.04            N/A
DWS High Income Fund                                      9/30               0.54             0.65            N/A
DWS High Income Plus Fund(18)(19)                        10/31               0.50             0.78            0.66
DWS Dreman Concentrated Value Fund(20)                   10/31               0.80             1.23            1.06
DWS Dreman Mid Cap Value Fund(21)                        10/31               0.75             1.22            1.00
DWS Dreman High Return Equity Fund(22)                   11/30               0.67             0.79            N/A
DWS Core Plus Income Fund(23)                             1/31               0.45             0.63            N/A
DWS Inflation Protected Plus Fund(24)                     9/30              0.50+             1.29            0.65
DWS International Fund(25)                                8/31              0.67*             0.78            N/A
DWS International Select Equity Fund(26)                 10/31               0.70             1.04            N/A
DWS International Value Opportunities Fund(27)            8/31              0.90+             3.26            1.36
DWS Japan Equity Fund                                     8/31              0.95+             1.37            N/A
DWS Large Cap Value Fund(28)                             11/30               0.42             0.58            N/A
DWS Large Company Growth Fund                             7/31              0.71+             0.83            N/A
DWS Latin America Equity Fund                            10/31               1.11             1.45            N/A
DWS Micro Cap Fund(29)(30)                                9/30              1.35+             1.71            1.52
DWS Mid Cap Growth Fund(31)                               9/30              0.72+             1.03            1.00
DWS Money Market Prime Series - DWS Cash                  7/31               0.26             0.56            N/A
Investment Trust(32)(33)
DWS Money Market Series --  Institutional                 12/31              0.13**            0.27            0.15
Shares(34)(35)(36)
DWS RREEF Global Real Estate Securities Fund(37)         12/31               1.00             1.30            1.26
DWS RREEF Real Estate Securities Fund                    12/31               0.38             0.57            N/A
DWS S&P 500 Index Fund(38)                               12/31               0.05             0.48            0.43
DWS Enhanced S&P 500 Index Fund(39)(40)                   2/28               0.42             1.00            N/A
DWS Short Duration Fund(41)(42)                          10/31               0.40             0.82            0.67
DWS Short Duration Plus Fund(43)                          9/30               0.37             0.52            N/A
DWS Small Cap Growth Fund(44)                             9/30              0.75+             0.91            N/A
DWS Small Cap Core Fund                                   9/30              0.77+             1.15            N/A
DWS Dreman Small Cap Value Fund                          11/30               0.71             0.87            N/A
DWS Technology Fund                                      10/31               0.56             0.72            N/A
DWS U.S. Bond Index Fund(45)(46)                         12/31               0.15             0.40            0.32
DWS RREEF Global Infrastructure Fund(47)                 12/31               0.90             1.41            1.25
</TABLE>

+        Includes 0.10% administration fee.

*        Restated on an annualized basis to reflect fee changes that took effect
         on June 11, 2007. Includes 0.10% administration fee.

**       Effective July 30, 2007 the fund became a feeder fund of Cash
         Management Portfolio. The management fee is paid at the Portfolio
         level. Restated on an annualized basis to reflect fee changes that took
         place on August 1, 2007.

(1)      Through November 30, 2008, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 0.73% for the Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest. Although there can be no assurances that
         the current waiver/expense reimbursement arrangements will be
         maintained beyond November 30, 2008, the Advisor has committed to
         review the continuance of waiver/expense reimbursement arrangements by
         November 30, 2008.

(2)      Through September 30, 2009, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         certain operating expenses of the fund to the extent necessary to
         maintain the fund's total operating expenses at 1.25% for Institutional
         Class shares, excluding certain expenses such as extraordinary
         expenses, taxes, brokerage and interest.

(3)      Through November 30, 2008, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 1.45% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest (estimated at 0.37%), and dividend
         expenses on short sales (estimated at 0.87%).

(4)      Through September 30, 2009, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at ratios no higher than 1.20% for
         Institutional Class shares, excluding certain expenses such as
         extraordinary expenses, taxes, brokerage, interest, leverage expenses
         and dividend expenses on short sales.

(5)      Through September 30, 2009, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at ratios no higher than 1.20% for
         Institutional Class shares, excluding certain expenses such as
         extraordinary expenses, taxes, brokerage, interest, leverage expenses
         and dividend expenses on short sales

(6)      Through September 30, 2008, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 1.71% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(7)      Through September 30, 2008, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 1.13% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest. Although there can be no assurances that
         the current waiver/expense reimbursement arrangement will be maintained
         beyond September 30, 2008, the Advisor has committed to review the
         continuance of waiver/expense reimbursement arrangements by September
         30, 2008.

(8)      The Advisor has voluntarily agreed to waive a portion of its fees and
         reimburse expenses for the fund, including expenses allocated from the
         Portfolio, so that total operating expenses of the fund will not exceed
         0.10% for Institutional Class shares, excluding certain expenses such
         as extraordinary expenses, taxes, brokerage and interest. The Advisor,
         at its discretion, may revise or discontinue this arrangement at any
         time.

(9)      The Advisor has voluntarily agreed to waive all or a portion of its
         fees and reimburse expenses so that the fund's total operating expenses
         will not exceed 1.18% for Institutional Class shares, excluding certain
         expenses, such as extraordinary expenses, taxes, brokerage and
         interest. The Advisor, at its discretion, may revise or discontinue
         this arrangement at any time.


(10)     The Advisor has voluntarily agreed to waive a portion of its fees and
         reimburse expenses so that total operating expenses of the fund will
         not exceed 0.55% for Institutional Class shares, excluding certain
         expenses such as extraordinary expenses, taxes, brokerage and interest
         expenses. The Advisor, at its discretion, may revise or discontinue
         this arrangement at any time.

(11)     Through September 30, 2009, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 0.95% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(12)     Through September 30, 2009, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 1.40% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(13)     Through February 29, 2008, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total annual operating expenses at 1.01% for Class S shares,
         excluding certain expenses such as extraordinary expenses, taxes,
         brokerage and interest.

(14)     Through September 30, 2009, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 1.32% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(15)     Through September 30, 2008, the Advisor has contractually agreed to
         waive all or a portion of its fees and reimburse or pay operating
         expenses of the fund so that total operating expenses will not exceed
         1.23% for Institutional Class shares, excluding certain expenses such
         as extraordinary expenses, taxes, brokerage, interest and expenses of
         acquired funds (underlying funds). Although there can be no assurances
         that the current waiver/expense reimbursement arrangement will be
         maintained beyond September 30, 2008, the Advisor has committed to
         review the continuance of waiver/expense reimbursement arrangements by
         September 30, 2008.

(16)     Through March 13, 2008, the Advisor has contractually agreed to waive
         all or a portion of its management fee and reimburse or pay operating
         expenses of the fund to the extent necessary to maintain the fund's
         total operating expenses at 1.11% for Institutional Class shares,
         excluding certain expenses such as extraordinary expenses, taxes,
         brokerage and interest.

(17)     Through May 1, 2008, the Advisor has contractually agreed to waive all
         or a portion of its management fee and reimburse or pay operating
         expenses of the fund to the extent necessary to maintain the fund's
         total annual operating expenses at 0.58% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(18)     Through May 15, 2008, 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 to the extent necessary to maintain the
         fund's total operating expenses at 0.65% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest expenses.

(19)     Through May 11, 2010, the Advisor has contractually agreed to waive a
         portion of its management fee in the amount of 0.12% of the fund's
         average daily net assets.

(20)     Through February 29, 2008, 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 so that the total operating
         expenses will not exceed 1.06% for Institutional Class shares excluding
         certain expenses such as extraordinary expenses, taxes, brokerage and
         interest.

(21)     Through February 28, 2009, 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 to the extent necessary to
         maintain the fund's total operating expenses at 1.00% excluding certain
         expenses such as extraordinary expenses, taxes, brokerage and interest.

(22)     Through October 20, 2009, 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 to the extent necessary to maintain the
         fund's total operating expenses at 0.83% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(23)     Through September 30, 2008, 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 so that the total operating
         expenses of the fund will not exceed 0.76% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest. Although there can be no assurance that
         the current waiver/expense reimbursement arrangement will be maintained
         beyond September 30, 2008, the Advisor has committed to review the
         continuance of such waiver/expense reimbursement arrangements by
         September 30, 2008.

(24)     Through January 31, 2009, the investment advisor has contractually
         agreed to waive a portion of its fees and reimburse expenses so that
         total annual operating expenses will not exceed 0.65%, excluding
         certain expenses such as extraordinary expenses, taxes, brokerage and
         interest.

(25)     Through November 30, 2010, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 0.88% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(26)     The Advisor has agreed to voluntarily waive a portion of its fees and
         reimburse or pay operating expenses of the fund so that total annual
         operating expenses of the fund will not exceed 0.92% for Institutional
         Class shares, excluding certain expenses such as extraordinary
         expenses, taxes, brokerage and interest. This voluntary waiver or
         reimbursement may be terminated at any time at the option of the
         Advisor.

(27)     Through November 30, 2008, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total annual operating expenses at 1.32% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(28)     Through March 31, 2008, 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 to the extent necessary to maintain the
         fund's total operating expenses at 0.65% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(29)     Through November 30, 2009, the Advisor has contractually agreed to
         waive a portion of its Investment Management Fee in the amount of
         0.305% of the fund's average daily total net assets.

(30)     Through January 31, 2009, the Advisor has contractually agreed to waive
         all or a portion of its fees and reimburse or pay certain operating
         expenses of the fund so that the total operating expense will not
         exceed 1.52% for Institutional Class shares, excluding certain expenses
         such as extraordinary expenses, taxes, brokerage and interest.

(31)     Through January 31, 2009, the Advisor has contractually agreed to waive
         all or a portion of its management fee and reimburse or pay operating
         expenses of the fund to the extent necessary to maintain the fund's
         total operating expenses at 1.00% for Institutional Class shares,
         excluding certain expenses such as extraordinary expenses, taxes,
         brokerage and interest.

(32)     Through September 30, 2008, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total annual operating expenses at 0.67% for Class S shares,
         excluding certain expenses such as extraordinary expenses, taxes,
         brokerage and interest.

(33)     Effective October 1, 2008 through March 9, 2010, the Advisor has
         contractually agreed to waive all or a portion of its management fee
         and reimburse or pay operating expenses of the fund to the extent
         necessary to maintain the fund's total annual operating expenses at
         0.72% for Class S shares, excluding certain expenses such as
         extraordinary expenses, taxes, brokerage and interest.

(34)     The Portfolio's Advisor has contractually agreed through July 29, 2010
         to waive all or a portion of its management fee and reimburse or pay
         certain operating expenses (excluding certain expenses such as
         extraordinary expenses, taxes, brokerage and interest expenses) to the
         extent necessary to maintain the annual expenses of the Portfolio at
         0.15% of the Portfolio's average daily net assets. (A further
         discussion of the relationship between the fund and the Portfolio
         appears in the "Who Manages and Oversees the Fund _ Organizational
         Structure" section of the prospectus.)

(35)     Through July 29, 2010, the Advisor has contractually agreed to waive
         all or a portion of its administrative services fee and reimburse or
         pay operating expenses of the fund to the extent necessary to maintain
         the fund's total operating expenses at 0.15% for Institutional Shares,
         excluding certain expenses such as extraordinary expenses, taxes,
         brokerage and interest expenses.

(36)     Effective February 5, 2008, the Advisor has voluntarily agreed to waive
         0.13% of the fund's total operating expenses. This voluntary waiver or
         reimbursement may be terminated at any time at the option of the
         Advisor.

(37)     Through April 30, 2009, the Advisor has contractually agreed to waive
         all or a portion of its management fee and reimburse or pay operating
         expenses of the fund to the extent necessary to maintain the fund's
         total operating expenses at 1.26% for Institutional Class shares,
         excluding certain expenses such as extraordinary expenses, taxes,
         brokerage and interest.

(38)     Through April 30, 2009, the Advisor has contractually agreed to waive
         all or a portion of its fees and reimburse or pay certain operating
         expenses for the fund, including expenses allocated from the Portfolio,
         so that the fund's total operating expenses will not exceed 0.43% for
         Class S shares, excluding certain expenses such as extraordinary
         expenses, taxes, brokerage and interest.

(39)     Through September 30, 2008, 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 to the extent necessary to
         maintain the fund's total operating expenses at 0.97% for Class S
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(40)     Effective October 1, 2008 through September 30, 2009, the Advisor has
         contractually agreed to waive all or a portion of its management fee
         and reimburse or pay certain operating expenses of the fund to the
         extent necessary to maintain the fund's total operating expenses at a
         ratio no higher than 1.03% for Class S shares, excluding certain
         expenses such as extraordinary expenses, taxes, brokerage and interest
         expenses.

(41)     Through February 28, 2009, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         certain operating expenses so that the total operating expenses of the
         fund will not exceed 0.67% for Institutional Class shares, excluding
         certain expenses such as extraordinary expenses, taxes, brokerage and
         interest expenses.

(42)     The Advisor has voluntarily agreed to waive a portion of its fees and
         reimburse expenses so that total operating expenses of the fund will
         not exceed 0.45% for Institutional Class shares, excluding certain
         expenses such as extraordinary expenses, taxes, brokerage and interest
         expenses. The Advisor, at its discretion, may revise or discontinue
         this arrangement at any time.

(43)     Through September 30, 2007 the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         operating expenses of the fund to the extent necessary to maintain the
         fund's total operating expenses at 0.64% for Institutional Class
         shares, excluding certain expenses such as extraordinary expenses,
         taxes, brokerage and interest.

(44)     Through January 31, 2010, the Advisor has contractually agreed to waive
         all or a portion of its management fee and reimburse or pay operating
         expenses of the fund to the extent necessary to maintain the fund's
         total operating expenses at 1.00% for Institutional Class shares,
         excluding certain expenses such as extraordinary expenses, taxes,
         brokerage and interest.

(45)     Through April 30, 2009, 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 so that the fund's total operating
         expenses will not exceed 0.32% for Institutional Class shares,
         excluding certain expenses such as extraordinary expenses, taxes,
         brokerage and interest.

(46)     The Advisor has voluntarily agreed to waive a portion of its fees and
         reimburse expenses so that total operating expenses of the fund will
         not exceed 0.15% for Institutional Class shares, excluding certain
         expenses such as extraordinary expenses, taxes, brokerage and interest.
         The Advisor, at its discretion, may revise or discontinue this
         arrangement at any time.

(47)     Through September 30, 2009, the Advisor has contractually agreed to
         waive all or a portion of its management fee and reimburse or pay
         certain operating expenses of the fund to the extent necessary to
         maintain the fund's total operating expenses at 1.25% for Institutional
         Class shares, excluding certain expenses such as extraordinary
         expenses, taxes, brokerage and interest.




The Advisor may serve as advisor to other funds with investment objectives and
policies similar to those of a Fund that may have different distribution
arrangements or expenses, which may affect performance.

Codes of Ethics

The Funds, the Advisor and the Funds' principal underwriter have each adopted
codes of ethics under Rule 17j-1 under the 1940 Act. Board members, officers of
the Trust and employees of the Advisor and principal underwriter are permitted
to make personal securities transactions, including transactions in securities
that may be purchased or held by the Funds, subject to requirements and
restrictions set forth in the applicable Code of Ethics. The Advisor's Code of
Ethics contains provisions and requirements designed to identify and address
certain conflicts of interest between personal investment activities and the
interests of the Funds. Among other things, the Advisor's Code of Ethics
prohibits certain types of transactions absent prior approval, imposes time
periods during which personal transactions may not be made in certain
securities, and requires the submission of duplicate broker confirmations and
quarterly reporting of securities transactions. Additional restrictions apply to
portfolio managers, traders, research analysts and others involved in the
investment advisory process. Exceptions to these and other provisions of the
Advisor's Code of Ethics may be granted in particular circumstances after review
by appropriate personnel.


Regulatory Matters and Legal Proceedings

On December 21, 2006, Deutsche Asset Management ("DeAM") settled proceedings
with the Securities and Exchange Commission ("SEC") and the New York Attorney
General on behalf of Deutsche Asset Management, Inc. ("DAMI") and DIMA, the
investment advisors to many of the DWS Investments funds, regarding allegations
of improper trading of fund shares at DeAM and at the legacy Scudder and Kemper
organizations prior to their acquisition by DeAM in April 2002. These regulators
alleged that although the prospectuses for certain funds in the regulators' view
indicated that the funds did not permit market timing, DAMI and DIMA breached
their fiduciary duty to those funds in that their efforts to limit trading
activity in the funds were not effective at certain times. The regulators also
alleged that DAMI and DIMA breached their fiduciary duty to certain funds by
entering into certain market timing arrangements with investors. These trading
arrangements originated in businesses that existed prior to the currently
constituted DeAM organization, which came together as a result of various
mergers of the legacy Scudder, Kemper and Deutsche fund groups, and all of the
arrangements were terminated prior to the start of the regulatory investigations
that began in the summer of 2003. No current DeAM employee approved these
trading arrangements. Under the terms of the settlements, DAMI and DIMA neither
admitted nor denied any wrongdoing.

The terms of the SEC settlement, which identified improper trading in the legacy
Deutsche and Kemper mutual funds only, provide for payment of disgorgement in
the amount of $17.2 million. The terms of the settlement with the New York
Attorney General provide for payment of disgorgement in the amount of $102.3
million, which is inclusive of the amount payable under the SEC settlement, plus
a civil penalty in the amount of $20 million. The total amount payable by DeAM,
approximately $122.3 million, will be distributed to shareholders of the
affected funds in accordance with a distribution plan to be developed by a
distribution consultant. The funds' investment advisors do not believe these
amounts will have a material adverse financial impact on them or materially
affect their ability to perform under their investment management agreements
with the DWS funds. The above-described amounts are not material to Deutsche
Bank, and have already been reserved.

Among the terms of the settled orders, DeAM is subject to certain undertakings
regarding the conduct of its business in the future, including formation of a
Code of Ethics Oversight Committee to oversee all matters relating to issues
arising under the advisors' Code of Ethics; establishment of an Internal
Compliance Controls Committee having overall compliance oversight responsibility
of the advisors; engagement of an Independent Compliance Consultant to conduct a
comprehensive review of the advisors' supervisory compliance and other policies
and procedures designed to prevent and detect breaches of fiduciary duty,
breaches of the Code of Ethics and federal securities law violations by the
advisors and their employees; and commencing in 2008, the advisors shall undergo
a compliance review by an independent third party.

In addition, DeAM is subject to certain further undertakings relating to the
governance of the mutual funds, including that at least 75% of the members of
the Boards of Trustees/Directors overseeing the DWS Funds continue to be
independent of DeAM; the Chairmen of the DWS Funds' Boards of Trustees/Directors
continue to be independent of DeAM; DeAM maintain existing management fee
reductions for certain funds for a period of five years and not increase
management fees for these certain funds during this period; the funds retain a
senior officer (or independent consultants, as applicable) responsible for
assisting in the review of fee arrangements and monitoring compliance by the
funds and the investment advisors with securities laws, fiduciary duties, codes
of ethics and other compliance policies, the expense of which shall be borne by
DeAM; and periodic account statements, fund prospectuses and the mutual funds'
web site contain additional disclosure and/or tools that assist investors in
understanding the fees and costs associated with an investment in the funds and
the impact of fees and expenses on fund returns.

DeAM has also settled proceedings with the Illinois Secretary of State regarding
market timing matters. The terms of the Illinois settlement provide for investor
education contributions totaling approximately $4 million and a payment in the
amount of $2 million to the Securities Audit and Enforcement Fund.

On September 28, 2006, the SEC and the National Association of Securities
Dealers ("NASD") (now known as the Financial Industry Regulatory Authority, or
"FINRA") announced final agreements in which Deutsche Investment Management
Americas Inc. ("DIMA"), Deutsche Asset Management, Inc. ("DAMI") and DWS Scudder
Distributors, Inc. (now known as DWS Investments Distributors, Inc. ("DIDI"))
settled administrative proceedings regarding disclosure of brokerage allocation
practices in connection with sales of the DWS Funds' (now known as the DWS
Investments Funds) shares during 2001-2003. The agreements with the SEC and NASD
are reflected in orders which state, among other things, that DIMA and DAMI
failed to disclose potential conflicts of interest to the funds' Boards and to
shareholders relating to DIDI's use of certain funds' brokerage commissions to
reduce revenue sharing costs to broker-dealer firms with whom it had
arrangements to market and distribute DWS Fund shares. These directed brokerage
practices were discontinued in October 2003.

Under the terms of the settlements, in which DIMA, DAMI and DIDI neither
admitted nor denied any of the regulators' findings, DIMA, DAMI and DIDI agreed
to pay disgorgement, prejudgment interest and civil penalties in the total
amount of $19.3 million. The portion of the settlements distributed to the funds
was approximately $17.8 million and was paid to the funds as prescribed by the
settlement orders based upon the amount of brokerage commissions from each fund
used to satisfy revenue sharing agreements with broker-dealers who sold fund
shares.

As part of the settlements, DIMA, DAMI and DIDI also agreed to implement certain
measures and undertakings relating to revenue sharing payments including making
additional disclosures in the funds' Prospectuses or Statements of Additional
Information, adopting or modifying relevant policies and procedures and
providing regular reporting to the fund Boards.

Additional information announced by DeAM regarding the terms of the settlements
is available at www.dws-investments.com/regulatory_settlements.

The matters alleged in the regulatory settlements described above also serve as
the general basis of a number of private class action lawsuits involving the DWS
funds. These lawsuits name as defendants various persons, including certain DWS
funds, the funds' investment advisors and their affiliates, and certain
individuals, including in some cases fund Trustees/Directors, officers, and
other parties. Each DWS fund's investment advisor has agreed to indemnify the
applicable DWS funds in connection with these lawsuits, or other lawsuits or
regulatory actions that may be filed making similar allegations.

Based on currently available information, the funds' investment advisors believe
the likelihood that the pending lawsuits will have a material adverse financial
impact on a DWS fund is remote and such actions are not likely to materially
affect their ability to perform under their investment management agreements
with the DWS funds.




                             FUND SERVICE PROVIDERS


Administrator

Each Fund has entered into an administrative services agreement with the Advisor
(the "Administrative Services Agreement"), pursuant to which the Advisor
provides administrative services to each Fund including, among others, providing
the Funds with personnel, preparing and making required filings on behalf of the
Funds, maintaining books and records for the Funds, and monitoring the valuation
of Fund securities. For all services provided under the Administrative Services
Agreement, each Fund pays the Advisor a fee, computed daily and paid monthly, of
0.100% of the Funds' average daily net assets.


Under the Administrative Services Agreement, the Advisor is obligated on a
continuous basis to provide such administrative services as the Board of the
Funds reasonably deems necessary for the proper administration of the Funds. The
Advisor provides the Funds with personnel; arranges for the preparation and
filing of each Fund's tax returns; prepares and submits reports and meeting
materials to the Board and the shareholders; prepares and files updates to the
Funds' prospectuses and statements of additional information as well as other
reports required to be filed by the SEC; maintains each Fund's records; provides
the Funds with office space, equipment and services; supervises, negotiates the
contracts of and monitors the performance of third parties contractors; oversees
the tabulation of proxies; monitors the valuation of portfolio securities and
monitors compliance with Board-approved valuation procedures; assists in
establishing the accounting and tax policies of each Fund; assists in the
resolution of accounting issues that may arise with respect to the Funds;
establishes and monitors each Fund's operating expense budgets; reviews and
processes each Fund's bills; assists in determining the amount of dividends and
distributions available to be paid by the Funds, prepares and arranges dividend
notifications and provides information to agents to effect payments thereof;
provides to the Board periodic and special reports; provides assistance with
investor and public relations matters; and monitors the registration of shares
under applicable federal and state law. The Advisor also performs certain fund
accounting services under the Administrative Services Agreement. The
Administrative Services Agreement provides that the Advisor will not be liable
under the Administrative Services Agreement except for willful misfeasance, bad
faith or negligence in the performance of its duties or from the reckless
disregard by it of its duties and obligations thereunder.


Pursuant to an agreement between the Administrator and State Street Bank and
Trust Company, the Administrator has delegated certain administrative functions
to SSB. The costs and expenses of such delegation are borne by the
Administrator, not by the Funds.

For the year ended August 31, 2008, DIMA received $139,294, $285,134 and
$295,606 as compensation for administrative services provided to DWS LifeCompass
Retirement Fund, DWS LifeCompass 2015 Fund and DWS LifeCompass 2020 Fund,
respectively. For the year ended August 31, 2008, DIMA received $41,077 as
compensation for administrative services provided to DWS LifeCompass 2030 Fund,
all of which was waived. For the period November 15, 2007 (commencement of
operations) through August 31, 2008, DIMA received $1882 as compensation for
administrative services provided to DWS LifeCompass 2040 Fund, all of which was
waived.


For the year ended August 31, 2007, DIMA received $145,630, $321,480, $323,731
and $50,000 (of which $50,000 was waived) as compensation for administrative
services provided to DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund,
DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund, respectively.


For the period from June 1, 2006 through August 31, 2006, DIMA received $34,584,
$75,255, $75,059 and $12,500 as compensation for administration services
provided to DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS
LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund, respectively. DIMA waived
$12,500 of administration services fees for DWS LifeCompass 2030 Fund.

Prior to June 1, 2006, DWS Investments Fund Accounting Corporation ("DWS-SFAC"),
Two International Place, Boston, Massachusetts, 02110, a subsidiary of the
Advisor, was responsible for determining net asset value per share and
maintaining the portfolio and general accounting records for the Funds. From
April 1, 2004 through May 31, 2006, each Fund paid DWS-SFAC an annual fee equal
to 0.0250% of the first $150 million of average daily net assets, 0.0075% of
such assets in excess of $150 million and 0.0045% of such assets in excess of $1
billion, plus holding and transaction charges for this service. For the period
from September 1, 2005 through May 31, 2006, the amount charged to the Funds by
DWS-SFAC for accounting services aggregated $26,070, $41,612, $40,543 and
$73,346, respectively, for the DWS LifeCompass Retirement Fund, DWS LifeCompass
2015 Fund, DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund. In addition,
the Advisor waived accounting fees of $73,346 for DWS LifeCompass 2030 Fund.




Principal Underwriter


Pursuant to an Underwriting and Distribution Services Agreement ("Distribution
Agreement"), DWS Investments Distributors, Inc. ("DIDI" or the "Distributor"),
222 South Riverside Plaza, Chicago, Illinois 60606, an affiliate of the Advisor,
is the principal underwriter and distributor for the Class A, Class B and Class
C shares of each Fund and acts as agent of each Fund in the continuous offering
of its shares.

The Distribution Agreement remains in effect from year to year so long as such
continuance is approved for each class at least annually by a vote of the Board
of Trustees of each Fund, including the Trustees who are not interested persons
of each Fund and who have no direct or indirect financial interest in the
Agreement. Each Distribution Agreement automatically terminates in the event of
its assignment and may be terminated for a class at any time without penalty by
each Fund or by DIDI upon 60 days' notice. Termination by each Fund with respect
to a class may be by vote of (i) a majority of the Board members who are not
interested persons of each Fund and who have no direct or indirect financial
interest in the Distribution Agreement, or (ii) a "majority of the outstanding
voting securities" of the class of each Fund, as defined under the 1940 Act. All
material amendments must be approved by the Board of Trustees in the manner
described above with respect to the continuation of the Agreement. The
provisions concerning continuation, amendment and termination of a Distribution
Agreement are on a series by series and class-by-class basis.

DIDI bears all of its expenses of providing services pursuant to the
Distribution Agreement, including the payment of any commissions. The Fund pays
the cost for the prospectus and shareholder reports to be typeset and printed
for existing shareholders, and DIDI, as principal underwriter, pays for the
printing and distribution of copies thereof used in connection with the offering
of shares to prospective investors. DIDI also pays for supplementary sales
literature and advertising costs. As indicated under "Purchase of Shares," DIDI
retains the sales charge upon the purchase of Class A shares and pays or allows
concessions or discounts to firms for the sale of the Funds' shares. DIDI
receives no compensation from the Funds as principal underwriter for Class A
shares. DIDI receives compensation from the Funds as principal underwriter for
Class B and Class C shares.

Shareholder and administrative services are provided to each Fund on behalf of
Class A, Class B and Class C shareholders under a Shareholder Services Agreement
(the "Services Agreement") with DIDI. The Services Agreement continues in effect
from year to year so long as such continuance is approved for the Fund at least
annually by a vote of the Board of the applicable Fund, including the Board
members who are not interested persons of the Fund and who have no direct or
indirect financial interest in the Services Agreement. The Services Agreement
automatically terminates in the event of its assignment and may be terminated at
any time without penalty by the Fund or by DIDI upon 60 days' notice.
Termination with respect to the Class A, B or C shares of a Fund may be by a
vote of (i) the majority of the Board members of the Fund who are not interested
persons of the Fund and who have no direct or indirect financial interest in the
Services Agreement, or (ii) a "majority of the outstanding voting securities" of
the Class A, B or C shares, respectively, as defined under the 1940 Act. The
Services Agreement may not be amended for a class to increase materially the fee
to be paid by the Fund without approval of a majority of the outstanding voting
securities of such class of the Fund, and all material amendments must in any
event be approved by the Board of Trustees in the manner described above with
respect to the continuation of the Services Agreement.

Under the Services Agreement, DIDI may provide or appoint various broker-dealer
firms and other service or administrative firms ("firms") to provide information
and services to investors in a Fund. Typically, DIDI appoints firms that provide
services and facilities for their customers or clients who are investors in a
Fund. Firms appointed by DIDI provide such office space and equipment, telephone
facilities and personnel as is necessary or beneficial for providing information
and services to their clients. Such services and assistance may include, but are
not limited to, establishing and maintaining accounts and records, processing
purchase and redemption transactions, answering routine inquiries regarding a
Fund, providing assistance to clients in changing dividend and investment
options, account designations and addresses and such other administrative
services as may be agreed upon from time to time and permitted by applicable
statute, rule or regulation.

DIDI bears all of its expenses of providing those services pursuant to the
Services Agreement, including the payment of a service fee to firms (as defined
above). As indicated under "Rule 12b-1 Plans," below, DIDI receives compensation
from the Funds for its services under the Services Agreement.


Rule 12b-1 Plans


Each Fund has adopted a plan pursuant to Rule 12b-1 under the 1940 Act (each a
"Rule 12b-1 Plan") that provides for fees payable as an expense of the Class B
shares and Class C shares that are used by DIDI to pay for distribution services
for those classes. Pursuant to each Rule 12b-1 Plan, shareholder and
administrative services are provided to the applicable Fund on behalf of its
Class A, B and C shareholders under each Fund's Services Agreement with DIDI.
Because 12b-1 fees are paid out of Fund assets on an ongoing basis, they will,
over time, increase the cost of an investment and may cost more than other types
of sales charges.


Expenses of the Funds paid in connection with the Rule 12b-1 Plans for each
class of shares include advertising and literature, prospectus printing for
prospective investors, marketing and sales expenses, miscellaneous expenses and
interest expenses. A portion of the marketing and sales and operating expenses
could be considered overhead expenses.


The Rule 12b-1 distribution plans for Class B and Class C shares provide
alternative methods for paying sales charges and may help Funds grow or maintain
asset levels to provide operational efficiencies and economies of scale. Rule
12b-1 service plans provide compensation to DIDI or intermediaries for
post-sales servicing. Since each Distribution Agreement provides for fees
payable as an expense of the Class B shares and the Class C shares that are used
by DIDI to pay for distribution and services for those classes, the agreement is
approved and reviewed separately for the Class B shares and the Class C shares
in accordance with Rule 12b-1 under the 1940 Act, which regulates the manner in
which an investment company may, directly or indirectly, bear the expenses of
distributing its shares. The Distribution Agreement may not be amended to
increase the fee to be paid by a Fund with respect to a class without approval
by a majority of the outstanding voting securities of such class of the Fund.
Similarly, the Services Agreement is approved and reviewed separately for the
Class A shares, Class B shares and Class C shares in accordance with Rule 12b-1.

If a Rule 12b-1 Plan is terminated in accordance with its terms, the obligation
of the applicable Fund to make payments to DIDI pursuant to the Rule 12b-1 Plan
will cease and the Fund will not be required to make any payments not previously
accrued past the termination date. Thus, there is no legal obligation for a Fund
to pay any expenses incurred by DIDI other than fees previously accrued and
payable under a Rule 12b-1 Plan, if for any reason the Rule 12b-1 Plan is
terminated in accordance with its terms. Future fees under the Rule 12b-1 Plan
may or may not be sufficient to cover DIDI for its expenses incurred. On the
other hand, under certain circumstances, DIDI might collect in the aggregate
over certain periods more in fees under the Rule 12b-1 Plan than it has expended
over that same period in providing distribution services for a Fund. In
connection with Class B shares, for example, if shares of a Fund were to
appreciate (resulting in greater asset base against which Rule 12b-1 fees are
charged) and sales of the Fund's shares were to decline (resulting in lower
expenditures by DIDI under the Rule 12b-1 Plan), fees payable could exceed
expenditures. This may also happen over certain periods shorter than the life of
the Rule 12b-1 Plan simply due to the timing of expenses incurred by DIDI that
is not matched to the timing of revenues received. As a result, if DIDI's
expenses are less than the Rule 12b-1 fees, DIDI will retain its full fees and
make a profit.

Distribution Services: Class B and Class C Shares. For its services under the
Distribution Agreement, DIDI receives a fee from each Fund under its Rule 12b-1
Plan, payable monthly, at the annual rate of 0.75% of average daily net assets
of the Fund attributable to its Class. B shares. This fee is accrued daily as an
expense of Class B shares. DIDI also receives any contingent deferred sales
charges paid with respect to Class B shares.

For its services under the Distribution Agreement, DIDI receives a fee from each
Fund under its Rule 12b-1 Plan, payable monthly, at the annual rate of 0.75% of
average daily net assets of the Fund attributable to Class C shares. This fee is
accrued daily as an expense of Class C shares. DIDI currently advances to firms
the first year distribution fee at a rate of 0.75% of the purchase price of
Class C shares. Effective January 1, 2006, DIDI no longer advances the first
year distribution fee to firms for sales of Class C shares to employer sponsored
employee benefit plans using the OmniPlus subaccount record keeping system made
available through ADP, Inc. under an alliance with DIDI and its affiliates. For
periods after the first year, DIDI currently pays firms for sales of Class C
shares a distribution fee, payable quarterly, at an annual rate of 0.75% of net
assets attributable to Class C shares maintained and serviced by the firm. This
fee continues until terminated by DIDI or the applicable Fund. DIDI also
receives any contingent deferred sales charges paid with respect to Class C
shares.

Shareholder Services. For its services under the Services Agreement, DIDI
receives a shareholder services fee from each Fund under a Rule 12b-1 Plan,
payable monthly, at an annual rate of up to 0.25% of the average daily net
assets of Class A, B and C shares of that Fund.

With respect to Class A Shares of a Fund, DIDI pays each firm a service fee,
payable quarterly, at an annual rate of up to 0.25% of the net assets in Fund
accounts that it maintains and services attributable to Class A shares of a
Fund, commencing with the month after investment. With respect to Class B and
Class C shares of a Fund, DIDI currently advances to firms the first-year
service fee at a rate of up to 0.25% of the purchase price of such shares.
Effective January 1, 2006, DIDI no longer advances the first year service fee to
firms for sales of Class C shares to employer sponsored employee benefit plans
using the OmniPlus subaccount record keeping system made available through ADP,
Inc. under an alliance with DIDI and its affiliates. For periods after the first
year, DIDI currently intends to pay firms a service fee at a rate of up to 0.25%
(calculated monthly and paid quarterly) of the net assets attributable to Class
B and Class C shares of a Fund maintained and serviced by the firm. Firms to
which service fees may be paid include affiliates of DIDI. In addition DIDI may,
from time to time, pay certain firms from it own resources additional amounts
for ongoing administrative services and assistance provided to their customers
and clients who are shareholders of a Fund.

DIDI also may provide some of the above services and may retain any portion of
the fee under the Services Agreement not paid to firms to compensate itself for
shareholder or administrative functions performed for a Fund. Currently, the
shareholder services fee payable to DIDI is payable at an annual rate of up to
0.25% of net assets based upon Fund assets in accounts for which a firm provides
administrative services and at the annual rate of 0.15% of net assets based upon
Fund assets in accounts for which there is no firm of record (other than DIDI)
listed on a Fund's records. The effective shareholder services fee rate to be
charged against all assets of each Fund while this procedure is in effect will
depend upon the proportion of Fund assets that is held in accounts for which a
firm of record provides shareholder services. The Board of each Fund, in its
discretion, may approve basing the fee to DIDI at the annual rate of 0.25% on
all Fund assets in the future.

Certain Trustees or officers of the Funds are also Directors or officers of the
Advisor or DIDI, as indicated under "Officers and Trustees."

Expenses of the Funds paid in connection with the Rule 12b-1 Plans for each
class of shares are set forth below. A portion of the marketing and sales and
operating expenses shown below could be considered overhead expenses.


<TABLE>
<CAPTION>
                                        12b-1 Compensation to Underwriter and Firms for the
                                            Twelve-Month Period Ended September 30, 2008
                                            --------------------------------------------
                                            12b-1          12b-1
                                        Distribution    Shareholder     12b-1 Compensation
                                            Fees       Services Fees      Paid to Firms
                                            ----       -------------      -------------



<S>             <C>                                <C>      <C>             <C>
DWS LifeCompass 2015      Class A                  $0       $268,829        $269,644
Fund
                          Class B            $151,850        $50,644         $74,157
                          Class C            $244,796        $82,425        $302,028
DWS LifeCompass 2020      Class A                  $0       $214,627        $211,789
Fund
                          Class B            $186,606        $62,232        $102,946
                          Class C            $262,161        $89,028        $327,055
DWS LifeCompass 2030      Class A                  $0        $51,207         $50,046
Fund
                          Class B             $25,484         $8,203         $20,915
                          Class C             $71,444        $22,899         $85,703
DWS LifeCompass 2040      Class A                  $0         $1,139            $764
Fund
                          Class C              $1,144        $20,418          $1,164
DWS LifeCompass           Class A                  $0        $91,080         $90,791
Retirement Fund
                          Class B             $51,225        $16,959         $21,007
                          Class C            $103,321        $32,882        $123,751



                                                   Other Expenses Paid by Underwriter for the
                                                  Twelve-Month Period Ended September 30, 2008
                                                  --------------------------------------------
                                     Advertising,
                                        Sales,
                                      Literature
                                         and                          Marketing
                                     Promotional     Prospectus       and Sales    Postage and     Imputed
                                      Materials       Printing         Expenses      Mailing       Interest
                                      ---------       --------         --------      -------       --------

DWS LifeCompass 2015      Class A         $112,907         $2,399       $24,241        $23,311            $0
Fund
                          Class B           $4,426           $146          $810           $763       $17,845
                          Class C          $12,020           $359        $2,466         $2,391            $0
DWS LifeCompass 2020      Class A          $83,731         $2,825       $16,081        $15,845            $0
Fund
                          Class B           $6,016           $224        $1,044         $1,013       $19,359
                          Class C          $13,665           $478        $2,782         $2,525            $0
DWS LifeCompass 2030      Class A          $23,679         $1,050        $4,081         $3,343            $0
Fund
                          Class B           $2,420            $59          $465           $482        $3,088
                          Class C           $6,972           $227        $1,207         $1,195            $0
DWS LifeCompass 2040      Class A           $3,132           $202          $386           $263            $0
Fund
                          Class C             $317             $6           $82            $72            $0
DWS LifeCompass           Class A          $40,504           $878        $8,138         $8,063            $0
Retirement Fund
                          Class B           $1,655            $27          $309           $331        $8,676
                          Class C           $8,411           $324        $1,526         $1,392            $0
</TABLE>






Custodian


State Street Bank and Trust Company (the "Custodian" or "SSB"), 225 Franklin
Street, Boston, Massachusetts 02110, as custodian, has custody of all securities
and cash of the Funds. The Custodian attends to the collection of principal and
income, and payment for and collection of proceeds of securities bought and sold
by the Funds. The custodian's fee may be reduced by certain earnings credits in
favor of each Fund.


Transfer Agent and Shareholder Service Agent

DWS Investments Service Company ("DISC" or the "Transfer Agent") 210 West 10th
Street, Kansas City, Missouri, 64105-2005, an affiliate of the Advisor, is the
Funds' transfer agent and dividend paying agent for the Funds' Class A, B and C
Shares.

The Transfer Agent receives an annual service fee for each account of the Fund,
based on the type of account. For open retail accounts, the fee is a flat fee
ranging from $20.00 to $27.50 per account, for open wholesale money funds the
fee is $32.50 per account, while for certain retirement accounts serviced on the
recordkeeping system of ADP, Inc., the fee is a flat fee up to $3.60 per account
(as of 2007, indexed to inflation) plus an asset based fee of up to 0.25% of
average net assets. 1/12th of the annual service charge for each account is
charged and payable to the Transfer Agent each month. A fee is charged for any
account which at any time during the month had a share balance in the Fund.
Smaller fees are also charged for closed accounts for which information must be
retained on the Transfer Agent's system for up to 18 months after closing for
tax reporting purposes.

Certain out-of-pocket expenses incurred by the Transfer Agent, including
expenses of printing and mailing routine fund disclosure documents, costs of
record retention and transaction processing costs are reimbursed by the Fund or
are paid directly by the Fund. Certain additional out-of-pocket expenses,
including costs of computer hardware and software, third party record-keeping
and processing of proxy statements, may only be reimbursed by the Fund with the
prior approval of the Fund's Board.





Effective April 1, 2007, DWS Investments Service Company is the Transfer Agent
for all classes of all DWS funds.

DWS LifeCompass Retirement Fund: For the fiscal year ended August 31, 2006, the
amount charged by DISC aggregated $142,349 (of which $102,514 was waived) for
Class A shares, $29,015 (of which $22,729 was waived) for Class B shares,
$15,606 (of which $9,149 was waived) for Class C shares. For the fiscal year
ended August 31, 2007, the amount charged by DISC aggregated $66,681 (of which
$5,317 was waived) for Class A shares, $6,185 for Class B shares and $10,917 (of
which $6,237 was waived) for Class C shares. For the fiscal year ended August
31, 2008, the amount charged by DISC aggregated $76,678 (of which $52,496 was
waived) for Class A shares, $9,453 (of which $7,817 was waived) for Class B
shares and $11,308 (of which $11,308 was waived) for Class C shares.

DWS LifeCompass 2015 Fund: For the fiscal year ended August 31, 2006, the amount
charged by DISC aggregated $403,301 (of which $199,517 was waived) for Class A
shares, $52,718 (of which $12,169 was waived) for Class B shares, $43,958 (of
which $1,359 was waived) for Class C shares. For the fiscal year ended August
31, 2007, the amount charged by DISC aggregated $210,437 (of which $42,756 was
waived) for Class A shares, $39,304 (of which $8,526 was waived) for Class B
shares and $40,834 (of which $6,019 was waived) for Class C shares. For the
fiscal year ended August 31, 2008, the amount charged by DISC aggregated
$227,521 (of which $141,517 was waived) for Class A shares, $32,523 (of which
$25,845 was waived) for Class B shares and $36,313 (of which $24,468 was waived)
for Class C shares.

DWS LifeCompass 2020 Fund: For the fiscal year ended August 31, 2006, the amount
charged by DISC aggregated $222,493 (of which $115,739 was waived) for Class A
shares, $56,508 (of which $26,728 was waived) for Class B shares, $48,439 (of
which $15,012 was waived) for Class C shares. For the fiscal year ended August
31, 2007, the amount charged by DISC aggregated $208,044 (of which $48,894 was
waived) for Class A shares, $51,119 (of which $17,294 was waived) for Class B
shares and $56,192 (of which $17,223 was waived) for Class C shares. For the
fiscal year ended August 31, 2008, the amount charged by DISC aggregated
$191,499 (of which $124,960 was waived) for Class A shares, $40,993 (of which
$37,330 was waived) for Class B shares and $47,755 (of which $40,080 was waived)
for Class C shares.

DWS LifeCompass 2030 Fund: For the fiscal year ended August 31, 2006, the amount
charged by DISC aggregated $20,169 (of which $18,381 was waived) for Class A
shares, $5,220 (of which $4,314 was waived) for Class B shares, $11,308 (of
which $9,426 was waived) for Class C shares. For the fiscal year ended August
31, 2007, the amount charged by DISC aggregated $30,445 (of which $28,937 was
waived) for Class A shares, $7,457 (of which $7,457 was waived) for Class B
shares and $14,368 (of which $14,368 was waived) for Class C shares. For the
fiscal year ended August 31, 2008, the amount charged by DISC aggregated $38,633
(of which $35,956 was waived) for Class A shares, $7,089 (of which $7,089 was
waived) for Class B shares and $14,829 (of which $14,829 was waived) for Class C
shares.

DWS LifeCompass 2040 Fund: For the period November 15, 2007 (commencement of
operations ) through August 31, 2008, the amount charged by DISC aggregated
$1,060 (of which $126 was waived) for Class A shares and $242 (of which $13 was
waived) for Class C shares.

Pursuant to a sub-transfer agency agreement between DISC and DST Systems, Inc.
("DST"), DISC has delegated certain transfer agent, dividend paying agent and
shareholder servicing agent functions to DST. The costs and expenses of such
delegation are borne by DISC, not by the Funds.




The Funds, or the Advisor (including any affiliate of the Advisor), or both, may
pay unaffiliated third parties for providing recordkeeping and other
administrative services with respect to accounts of participants in retirement
plans or other beneficial owners of Fund shares whose interests are held in an
omnibus account.

Legal Counsel


Ropes & Gray LLP, One International Place, Boston, Massachusetts 02110, serves
as legal counsel to each Fund and as co-counsel to the Independent Trustees.

Vedder Price P.C., 222 North LaSalle Street, Chicago, Illinois 60601, serves as
co-counsel to the Independent Trustees.


Independent Registered Public Accounting Firm and Reports to Shareholders

The financial highlights of each Fund included in the Funds' Prospectus and the
Financial Statements incorporated by reference in this Statement of Additional
Information have been so included or incorporated by reference in reliance on
the report of PricewaterhouseCoopers LLP, 125 High Street, Boston, Massachusetts
02110, an independent registered public accounting firm, given on the authority
of said firm as experts in auditing and accounting. PricewaterhouseCoopers
audits the financial statements of the Funds and provides other audit, tax and
related services. Shareholders will receive annual audited financial statements
and semi-annual unaudited financial statements.

                             PORTFOLIO TRANSACTIONS

Portfolio Transactions of the Underlying DWS Funds

The Advisor is generally responsible for placing the orders for the purchase and
sale of portfolio securities, including the allocation of brokerage. With
respect to those funds for which a sub-investment advisor manages the fund's
investments, references in this section to the "Advisor" should be read to mean
the Sub-Advisor, except as noted below.

The policy of the Advisor in placing orders for the purchase and sale of
securities for the Funds is to seek best execution, taking into account such
factors, among others, as price; commission (where applicable); the
broker-dealer's ability to ensure that securities will be delivered on
settlement date; the willingness of the broker-dealer to commit its capital and
purchase a thinly traded security for its own inventory; whether the
broker-dealer specializes in block orders or large program trades; the
broker-dealer's knowledge of the market and the security; the broker-dealer's
ability to maintain confidentiality; the broker-dealer's ability to provide
access to new issues; the broker-dealer's ability to provide support when
placing a difficult trade; the financial condition of the broker-dealer; and
whether the broker-dealer has the infrastructure and operational capabilities to
execute and settle the trade. The Advisor seeks to evaluate the overall
reasonableness of brokerage commissions with commissions charged on comparable
transactions and compares the brokerage commissions (if any) paid by the Funds
to reported commissions paid by others. The Advisor routinely reviews commission
rates, execution and settlement services performed and makes internal and
external comparisons.

Commission rates on transactions in equity securities on US securities exchanges
are subject to negotiation. Commission rates on transactions in equity
securities on foreign securities exchanges are generally fixed. Purchases and
sales of fixed-income securities and certain over-the-counter securities are
effected on a net basis, without the payment of brokerage commissions.
Transactions in fixed income and certain over-the-counter securities are
generally placed by the Advisor with the principal market makers for these
securities unless the Advisor reasonably believes more favorable results are
available elsewhere. Transactions with dealers serving as market makers reflect
the spread between the bid and asked prices. Purchases of underwritten issues
will include an underwriting fee paid to the underwriter. Money market
instruments are normally purchased in principal transactions directly from the
issuer or from an underwriter or market maker.

It is likely that the broker-dealers selected based on the considerations
described in this section will include firms that also sell shares of the Funds
to their customers. However, the Advisor does not consider sales of shares of
the Funds as a factor in the selection of broker-dealers to execute portfolio
transactions for the Funds and, accordingly, has implemented policies and
procedures reasonably designed to prevent its traders from considering sales of
shares of the Funds as a factor in the selection of broker-dealers to execute
portfolio transactions for the Funds.

The Advisor is permitted by Section 28(e) of the Securities Exchange Act of
1934, as amended ("1934 Act"), when placing portfolio transactions for a Fund,
to cause the Fund to pay brokerage commissions in excess of that which another
broker-dealer might charge for executing the same transaction in order to obtain
research and brokerage services if the Advisor determines that such commissions
are reasonable in relation to the overall services provided. The Advisor may
from time to time, in reliance on Section 28(e) of the 1934 Act, execute
portfolio transactions with broker-dealers that provide research and brokerage
services to the Advisor. Consistent with the Advisor's policy regarding best
execution, where more than one broker is believed to be capable of providing
best execution for a particular trade, the Advisor may take into consideration
the receipt of research and brokerage services in selecting the broker-dealer to
execute the trade. Although certain research and brokerage services from
broker-dealers may be useful to a Fund and to the Advisor, it is the opinion of
the Advisor that such information only supplements its own research effort since
the information must still be analyzed, weighed and reviewed by the Advisor's
staff. To the extent that research and brokerage services of value are received
by the Advisor, the Advisor may avoid expenses that it might otherwise incur.
Research and brokerage services received from a broker-dealer may be useful to
the Advisor and its affiliates in providing investment management services to
all or some of its clients, which includes a Fund. Services received from
broker-dealers that executed securities transactions for a Portfolio will not
necessarily be used by the Advisor specifically to service such Fund.

Research and brokerage services provided by broker-dealers may include, but are
not limited to, information on the economy, industries, groups of securities,
individual companies, statistical information, accounting and tax law
interpretations, political developments, legal developments affecting portfolio
securities, technical market action, pricing and appraisal services, credit
analysis, risk measurement analysis, performance analysis and measurement and
analysis of corporate responsibility issues. Research and brokerage services are
typically received in the form of written or electronic reports, access to
specialized financial publications, telephone contacts and personal meetings
with security analysts, but may also be provided in the form of access to
various computer software, and meetings arranged with corporate and industry
representatives.

The Advisor may also select broker-dealers and obtain from them research and
brokerage services that are used in connection with executing trades provided
that such services are consistent with interpretations under Section 28(e) of
the 1934 Act. Typically, these services take the form of computer software
and/or electronic communication services used by the Advisor to facilitate
trading activity with those broker-dealers.

Research and brokerage services may include products obtained from third parties
if the Advisor determines that such product or service constitutes brokerage and
research as defined in Section 28(e) and interpretations thereunder. Currently,
it is the Advisor's policy that Sub-Advisors may not execute portfolio
transactions on behalf of the Funds to obtain third party research and brokerage
services. The Advisor may, in the future, change this policy. Regardless,
certain Sub-Advisors may, as matter of internal policy, limit or preclude third
party research and brokerage services.

The Advisor may use brokerage commissions to obtain certain brokerage products
or services that have a mixed use (i.e., it also serves a function that does not
relate to the investment decision-making process). In those circumstances, the
Advisor will make a good faith judgment to evaluate the various benefits and
uses to which it intends to put the mixed use product or service and will pay
for that portion of the mixed use product or service that it reasonably believes
does not constitute research and brokerage services with its own resources.

DIMA will monitor regulatory developments and market practice in the use of
client commissions to obtain research and brokerage services and may adjust its
portfolio transactions policies in response thereto.

Investment decisions for each Fund and for other investment accounts managed by
the Advisor are made independently of each other in light of differing
conditions. However, the same investment decision may be made for two or more of
such accounts. In such cases, simultaneous transactions are inevitable. To the
extent permitted by law, the Advisor may aggregate the securities to be sold or
purchased for a Fund with those to be sold or purchased for other accounts in
executing transactions. Purchases or sales are then averaged as to price and
commission and allocated as to amount in a manner deemed equitable to each
account. While in some cases this practice could have a detrimental effect on
the price paid or received by, or on the size of the position obtained or
disposed of for, the Fund, in other cases it is believed that the ability to
engage in volume transactions will be beneficial to the Fund.

DIMA and its affiliates and the Funds' management team manage other mutual funds
and separate accounts, some of which use short sales of securities as a part of
its investment strategy. The simultaneous management of long and short
portfolios creates potential conflicts of interest including the risk that short
sale activity could adversely affect the market value of the long positions (and
vice versa), the risk arising from sequential orders in long and short
positions, and the risks associated with receiving opposing orders at the same
time.

DIMA has adopted procedures that it believes are reasonably designed to mitigate
these potential conflicts of interest. Incorporated in the procedures are
specific guidelines developed to ensure fair and equitable treatment for all
clients. DIMA and the investment team have established monitoring procedures and
a protocol for supervisory reviews, as well as compliance oversight to ensure
that potential conflicts of interest relating to this type of activity are
properly addressed.

Deutsche Bank AG or one of its affiliates (or in the case of a Sub-Advisor, the
Sub-Advisor or one of its affiliates) may act as a broker for the Funds and
receive brokerage commissions or other transaction-related compensation from the
Funds in the purchase and sale of securities, options or futures contracts when,
in the judgment of the Advisor, and in accordance with procedures approved by
the Funds' Boards, the affiliated broker will be able to obtain a price and
execution at least as favorable as those obtained from other qualified brokers
and if, in the transaction, the affiliated broker charges the Funds a rate
consistent with that charged to comparable unaffiliated customers in similar
transactions.

Money market instruments are normally purchased in principal transactions
directly from the issuer or from an underwriter or market maker. There usually
are no brokerage commissions paid by a fund for such purchases. During the last
three fiscal years each fund paid no portfolio brokerage commissions. Purchases
from underwriters will include a commission or concession paid by the issuer to
the underwriter, and purchases from dealers serving as market makers will
include the spread between the bid and asked prices.


During the last three fiscal years, the Funds paid the following amounts in
brokerage commissions:

<TABLE>
<CAPTION>
Fund                                               2008               2007               2006
----                                               ----               ----               ----

<S>                                              <C>                   <C>                <C>
DWS Life Compass Retirement Fund                 $275.26               $0                 $0
DWS LifeCompass 2015 Fund                        $507.99               $0                 $0
DWS LifeCompass 2020 Fund                        $887.14               $0                 $0
DWS LifeCompass 2030 Fund                        $103.60               $0                 $0
DWS LifeCompass 2040 Fund                        $167.91               $0                 $0
</TABLE>


Securities of Regular Broker-Dealers. Each Fund is required to identify any
securities of its "regular brokers or dealers" (as such term is defined in the
1940 Act) that each Fund has acquired during the most recent fiscal year. As of
August 31, 2008, each Fund did not hold securities of its regular brokers or
dealers.


Portfolio Turnover

Portfolio turnover rate is defined by the SEC as the ratio of the lesser of
sales or purchases to the monthly average value of such securities owned during
the year, excluding all securities whose remaining maturities at the time of
acquisition were one year or less.

Higher levels of activity by a fund result in higher transaction costs and may
also result in taxes on realized capital gains to be borne by the fund's
shareholders. Purchases and sales are made whenever necessary, in the Advisor's
discretion, to meet a fund's objective.

Portfolio turnover rates for the two most recent fiscal periods are as follows:

<TABLE>
<CAPTION>
                                                                          FY 2008         FY 2007         FY 2006
                                                                         Portfolio       Portfolio       Portfolio
                                                           Fiscal      Turnover Rate    Turnover Rate     Turnover
Name of Fund                                              Year End        (%) (1)        (%)(1),(2)      Rate (%)(2)
------------                                              --------        -------        ----------      -----------


<S>                                                         <C>             <C>              <C>            <C>
DWS LifeCompass Retirement Fund                             8/31            48               21             69
DWS LifeCompass 2015 Fund                                   8/31            29               21             52
DWS LifeCompass 2020 Fund                                   8/31            31               22             59
DWS LifeCompass 2030 Fund                                   8/31            30               20             63
DWS LifeCompass 2040 Fund                                   8/31          17**(b)          NA(a)           NA(a)
DWS Blue Chip Fund                                          10/31          NA(3)            266             259
DWS Capital Growth Fund                                     9/30           NA(3)             28             15
DWS Commodity Securities Fund                               6/30            145             117             80
DWS Disciplined Market Neutral Fund                         8/31            967          1,009**(c)        NA(c)
DWS Disciplined Long/Short Growth Fund                      4/30            450           229**(d)         NA(d)
DWS Disciplined Long/Short Value Fund                       4/30            485           227**(d)         NA(d)
DWS Large Cap Value Fund                                    11/30          NA(3)             86             76
DWS Emerging Markets Equity Fund                            10/31          NA(3)             98             145
DWS Emerging Markets Fixed Income Fund                      10/31          NA(3)            173             224
DWS Equity 500 Index Fund                                   12/31          NA(3)             5               4
DWS Communications Fund                                     12/31          NA(3)             39             27
DWS Core Fixed Income Fund                                  10/31          NA(3)           185(e)         166(e)
DWS Floating Rate Plus Fund                                 5/31          25**(f)          NA(f)           NA(a)
DWS Global Thematic Fund                                    8/31            202             151             143
DWS Global Bond Fund                                        10/31          NA(3)            237             183
DWS Global Opportunities Fund                               10/31          NA(3)             21             29
DWS GNMA Fund                                               9/30           NA(3)           189(e)          81(e)
DWS Gold & Precious Metals Fund                             10/31          NA(3)             52             69
DWS Europe Equity Fund                                      10/31          NA(3)            105             203
DWS Growth & Income Fund                                    9/30           NA(3)            271             101
DWS Health Care Fund                                        5/31            27               31             56
DWS High Income Fund                                        9/30           NA(3)             66             100
DWS High Income Plus Fund                                   10/31          NA(3)             75             100
DWS Dreman Concentrated Value Fund                          11/30          NA(3)             58             38
DWS Dreman High Return Equity Fund                          11/30          NA(3)             27             32
DWS Dreman Mid Cap Value Fund                               11/30          NA(3)             82             34
DWS Core Plus Income Fund                                   1/31          140(e)           150(e)         184(e)
DWS Inflation Protected Plus Fund                           9/30           NA(3)            167             331
DWS International Fund                                      8/31            133             104             76
DWS International Select Equity Fund                        10/31          NA(3)            119           140(g)
DWS International Value Opportunities Fund                  8/31            197             127           7**(h)
DWS Japan Equity Fund                                       8/31            105             120             105
DWS Large Company Growth Fund                               7/31            43               23             16
DWS Large Cap Value Fund                                    11/30          NA(3)             86             76
DWS Latin America Equity Fund                               10/31          NA(3)             62             70
DWS Micro Cap Fund                                          9/30           NA(3)             73             100
DWS Mid Cap Growth Fund                                     9/30           NA(3)             56             53
DWS Money  Market  Prime  Series - DWS Cash  Investment     7/31             --               --               --
     Trust (4)
DWS Money Market Series -- Institutional Shares (4)          12/31            --               --               --
DWS RREEF Global Real Estate Securities Fund                12/31          NA(3)             71           28**(h)
DWS RREEF Real Estate Securities Fund                       12/31          NA(3)             81             60
DWS S&P 500 Index Fund                                      12/31          NA(3)             5               4
DWS Enhanced S&P 500 Index Fund                             2/28            51               81             85
DWS Short Duration Fund                                     10/31          NA(3)            230             198
DWS Short Duration Plus Fund                                9/30           NA(3)             57           129(i)
DWS Small Cap Growth Fund                                   9/30           NA(3)           64(g)            74
DWS Small Cap Core Fund                                     9/30           NA(3)            202             205
DWS Dreman Small Cap Value Fund                             11/30          NA(3)             60             48
DWS Technology Fund                                         10/31          NA(3)             79             58
DWS U.S. Bond Index Fund                                    12/31          NA(3)           35(e)           25(j)
DWS RREEF Global Infrastructure Fund                        12/31        NA(3)(k)          NA(a)           NA(a)
</TABLE>

(1)      As of each Underlying DWS Fund's most recent fiscal reporting period.

(2)      As of each Underlying DWS Fund's previous fiscal reporting period.

(3)      Fund has not yet filed its fiscal year 2008 financial information,
         therefore information for fiscal year 2007 and 2006 are included.

(4)      DWS Money Market Series -- Institutional Shares is a money market fund
         and by definition does not have a portfolio turnover rate.

**       Not Annualized

(a)      Fund has not commenced operations as of the date.

(b)      Commenced operations on November 15, 2007.

(c)      Commenced operations on October 16, 2006.

(d)      Commenced operations on November 16, 2006.

(e)      The portfolio turnover rates including mortgage dollar roll
         transactions were 381% and 289% for the periods ended September 30,
         2007 and 2006 for DWS GNMA Fund; 150%, 151% and 196% for the years
         ended January 31, 2008, 2007 and 2006 for DWS Core Plus Income Fund;
         194% and 173% for the years ended October 31, 2007 and 2006 for DWS
         Core Fixed Income Fund and 53% for the year ended December 31, 2007 for
         DWS U.S. Bond Index Fund.

(f)      Commenced operations on June 29, 2007.

(g)      Excludes portfolio securities delivered as a result of processing
         redemption in-kind transactions.

(h)      Commenced operations on July 5, 2006.

(i)      On January 13, 2006, the Scudder Limited-Duration Plus Portfolio was
         closed. This ratio includes the purchase and sale of portfolio
         securities of the DWS Short Duration Plus Fund as a stand-alone fund in
         addition to the Scudder Limited-Duration Plus Portfolio.

(j)      On January 13, 2006, the U.S. Bond Index Portfolio was closed. The
         ratio includes the purchase and sale of portfolio securities of the DWS
         U.S. Bond Index Fund as a stand-alone fund in addition to the U.S. Bond
         Index Portfolio.

(k)      Commenced operations on June 25, 2008.


For certain Underlying DWS Funds, the increase in portfolio turnover rates for
the most recent fiscal year was due to the general market conditions and
increased volatility.

                        PURCHASE OR REDEMPTION OF SHARES

General Information

Policies and procedures affecting transactions in Fund shares can be changed at
any time without notice, subject to applicable law. Transactions may be
contingent upon proper completion of application forms and other documents by
shareholders and their receipt by the Fund's agents. Transaction delays in
processing (and changing account features) due to circumstances within or beyond
the control of the Fund and its agents may occur. Shareholders (or their
financial service firms) are responsible for all losses and fees resulting from
bad checks, cancelled orders or the failure to consummate transactions effected
pursuant to instructions reasonably believed to be genuine.

If a distribution check is returned to the Fund, or its agents, as
undeliverable; such distribution will be reinvested in shares of the same Fund
and class at the next determined net asset value after receipt by the Fund, or
its agents, of the returned distribution check.


Orders will be confirmed at a price based on the net asset value (including any
applicable sales charge) of the Fund next determined after receipt in good order
by DIDI of the order accompanied by payment. However, orders received by dealers
or other financial services firms prior to the determination of net asset value
and received in good order by DIDI prior to the determination of net asset value
will be confirmed at a price based on the net asset value next determined after
receipt by DIDI ("trade date").


Certificates. Share certificates will not be issued. Share certificates now in a
shareholder's possession may be sent to the Transfer Agent for cancellation and
book-entry credit to such shareholder's account. Certain telephone and other
procedures require book-entry holdings. Shareholders with outstanding
certificates bear the risk of loss.


Use of Financial Services Firms. Investment dealers and other firms provide
varying arrangements for their clients to purchase and redeem a fund's shares,
including higher minimum investments, and may assess transaction or other fees.
Firms may arrange with their clients for other investment or administrative
services. Such firms may independently establish and charge additional amounts
to their clients for such services. Firms also may hold the Fund's shares in
nominee or street name as agent for and on behalf of their customers. In such
instances, the Fund's Transfer Agent will have no information with respect to or
control over the accounts of specific shareholders. Such shareholders may obtain
access to their accounts and information about their accounts only from their
firm. Certain of these firms may receive compensation from the Fund through the
Shareholder Service Agent for record-keeping and other expenses relating to
these nominee accounts. In addition, certain privileges with respect to the
purchase and redemption of shares or the reinvestment of dividends may not be
available through such firms. Some firms may participate in a program allowing
them access to their clients' accounts for servicing including, without
limitation, transfers of registration and dividend payee changes; and may
perform functions such as generation of confirmation statements and disbursement
of cash dividends. Such firms, including affiliates of DIDI, may receive
compensation from a Fund through the Shareholder Service Agent for these
services.


The Funds have authorized one or more financial service institutions, including
certain members of the Financial Industry Regulatory Authority ("FINRA") other
than the Distributor ("financial institutions"), to accept purchase and
redemption orders for each Fund's shares. Such financial institutions may also
designate other parties, including plan administrator intermediaries, to accept
purchase and redemption orders on each Fund's behalf. Orders for purchases or
redemptions will be deemed to have been received by a Fund when such financial
institutions or, if applicable, their authorized designees accept the orders.
Subject to the terms of the contract between a Fund and the financial
institution, ordinarily orders will be priced at each Fund's net asset value
next computed after acceptance by such financial institution or its authorized
designees and accepted by a Fund. Further, if purchases or redemptions of each
Fund's shares are arranged and settlement is made at an investor's election
through any other authorized financial institution, that financial institution
may, at its discretion, charge a fee for that service. The Board of Trustees and
the Distributor, also a Fund's principal underwriter, each has the right to
limit the amount of purchases by, and to refuse to sell to, any person. The
Trustees and the Distributor may suspend or terminate the offering of shares of
a Fund at any time for any reason.


DIDI has adopted an Incentive Plan (the "Plan") covering wholesalers that are
regional vice presidents ("DWS Investments Wholesalers"). Generally, DWS
Investments Wholesalers market shares of the DWS funds to financial advisors,
who in turn may recommend that investors purchase shares of a DWS fund. The Plan
is an incentive program that combines a monthly incentive component with a
quarterly strategic bonus component. Under the Plan, DWS Investments Wholesalers
will receive a monetary monthly incentive based on the amount of sales generated
from their marketing of the funds, and that incentive will differ depending on
the product category of the fund. Each fund is assigned to one of three product
categories -- "Strategic," "Tactical" or "all other funds" -- taking into
consideration, among other things, the following criteria, where applicable:

o        The Fund's consistency with DWS Investments' branding and long-term
         strategy;

o        The Fund's competitive performance;

o        The Fund's Morningstar rating;

o        The length of time the Fund's Portfolio Managers have managed the
         Fund/Strategy;

o        Market size for the fund category;

o        The Fund's size, including sales and redemptions of the Fund's shares

This information and other factors are presented to a committee comprised of
representatives from various groups within DWS Investments, who review on a
quarterly basis the funds assigned to each product category described above, and
make any changes to those assignments at that time. No one factor, whether
positive or negative, determines a fund's placement in a given category; all
these factors together are considered, and the designation of funds in the
Strategic and Tactical categories represents management's judgment based on the
above criteria. In addition, management may consider a fund's profile over the
course of several review periods before making a change to its category
assignment. These category assignments will be posted quarterly to the DWS
funds' Web site at www.dws-investments.com, approximately one month after the
end of each quarter. DWS Investments Wholesalers receive the highest
compensation for Strategic funds, less for Tactical funds and the lowest for all
other funds. The level of compensation among these categories may differ
significantly.

The prospect of receiving, or the receipt of, additional compensation by a DWS
Investments Wholesaler under the Plan may provide an incentive to favor
marketing the Strategic or Tactical funds over all other funds. The Plan,
however, will not change the price that investors pay for shares of a fund. The
DWS Investments Compliance Department monitors DWS Investments Wholesaler sales
and other activity in an effort to detect unusual activity in the context of the
compensation structure under the Plan. However, investors may wish to take the
Plan and the product category of the fund into account when considering
purchasing a fund or evaluating any recommendations relating to fund shares.




Telephone and Electronic Transaction Procedures. Shareholders have various
telephone, Internet, wire and other electronic privileges available. A Fund or
its agents will not be liable for any losses, expenses or costs arising out of
fraudulent or unauthorized instructions pursuant to these privileges if the Fund
or its agents reasonably believe, based upon reasonable verification procedures,
that the instructions were genuine. Verification procedures include recording
instructions, requiring certain identifying information before acting upon
instructions and sending written confirmations. During periods when it is
difficult to contact the Shareholder Service Agent, it may be difficult to use
telephone, wire and other privileges.


QuickBuy and QuickSell. QuickBuy and QuickSell permits the transfer of money via
the Automated Clearing House System (minimum $50, maximum $250,000) from or to a
shareholder's bank, savings and loan, or credit union account in connection with
an additional purchase or redemption of Fund shares. Shares purchased by check
or through QuickBuy and QuickSell or Direct Deposit may not be redeemed under
this privilege until such shares have been owned for at least 10 calendar days.
QuickBuy and QuickSell cannot be used with passbook savings accounts or for
certain tax-deferred plans.

Dividend Payment Option. Investors may have dividends and distributions
automatically deposited to their predesignated bank account through DWS
Investments' Dividend Payment Option request form. Shareholders whose
predesignated checking account of record is with a member bank of Automated
Clearing House Network (ACH) can have income and capital gain distributions
automatically deposited to their personal bank account usually within three
business days after the Fund pays its distribution. A Dividend Payment Option
request form can be obtained by visiting our Web site at:
www.dws-investments.com or calling (800) 621-1048. Confirmation Statements will
be mailed to shareholders as notification that distributions have been
deposited.





Tax-Sheltered Retirement Plans. The Shareholder Service Agent provides
retirement plan services and documents and DIDI can establish investor accounts
in any of the following types of retirement plans:


o        Traditional, Roth and Education IRAs. This includes Savings Incentive
         Match Plan for Employees of Small Employers ("SIMPLE"), Simplified
         Employee Pension Plan ("SEP") IRA accounts and prototype documents.

o        403(b)(7) Custodial Accounts. This type of plan is available to
         employees of most non-profit organizations.

o        Prototype money purchase pension and profit-sharing plans may be
         adopted by employers.

Brochures describing these plans as well as model defined benefit plans, target
benefit plans, 457 plans, 401(k) plans, simple 401(k) plans and materials for
establishing them are available from the Shareholder Service Agent upon request.
Additional fees and transaction policies and procedures may apply to such plans.
Investors should consult with their own tax advisors before establishing a
retirement plan.

Purchases

The Funds reserve the right to withdraw all or any part of the offering made by
their prospectuses and to reject purchase orders for any reason. Also, from time
to time, a Fund may temporarily suspend the offering of any class of its shares
to new investors. During the period of such suspension, persons who are already
shareholders of such class of such Fund may be permitted to continue to purchase
additional shares of such class and to have dividends reinvested.

To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account. For
more information, please see "Policies You Should Know About" in the fund
prospectus.

A Fund may waive the minimum for purchases by trustees, directors, officers or
employees of the Fund or the Advisor and its affiliates.


Financial Services Firms' Compensation. Banks and other financial services firms
may provide administrative services related to order placement and payment to
facilitate transactions in shares of a Fund for their clients, and DIDI may pay
them a transaction fee up to the level of the discount or commission allowable
or payable to dealers.





In addition to the discounts or commissions described herein and the Prospectus,
DIDI, the Advisor or its affiliates may pay or allow additional discounts,
commissions or promotional incentives, in the form of cash, to firms that sell
shares of a Fund. In some instances, such amounts may be offered only to certain
firms that sell or are expected to sell during specified time periods certain
minimum amounts of shares of the Fund, or other Funds underwritten by DIDI.

Upon notice to all dealers, DIDI may re-allow to dealers up to the full
applicable Class A sales charge during periods and for transactions specified in
such notice and such re-allowances may be based upon attainment of minimum sales
levels. During periods when 90% or more of the sales charge is re-allowed, such
dealers may be deemed to be underwriters as that term is defined in the 1933
Act.

DIDI may at its discretion compensate investment dealers or other financial
services firms in connection with the sale of Class A shares of the Funds in
accordance with the Large Order NAV Purchase Privilege and one of the two
compensation schedules up to the following amounts:

<TABLE>
<CAPTION>
Compensation Schedule #1:                                                        Compensation Schedule #2:
Retail Sales and DWS Flex Plan(1)                                                 DWS Retirement Plans(2)
---------------------------------                                                 -----------------------

Amount of                                   As a Percentage of Net    Amount of Shares      As a Percentage of Net
Shares Sold                                       Asset Value               Sold                 Asset Value
-----------                                       -----------               ----                 -----------

<S>           <C>                                    <C>
$1 million to $3 million                             1.00%
Over $3 million to $50 million                       0.50%             Over $3 million          0.00% - 0.50%
Over $50 million                                     0.25%                    --                       --
</TABLE>

(1)       For purposes of determining the appropriate commission percentage to
          be applied to a particular sale under the foregoing schedule, DIDI
          will consider the cumulative amount invested by the purchaser in a
          Fund and other Funds listed under "Special Features -- Class A Shares
          -- Combined Purchases," including purchases pursuant to the "Combined
          Purchases," "Letter of Intent" and "Cumulative Discount" features
          referred to above.

(2)       Compensation Schedule 2 applies to employer sponsored employee benefit
          plans using the OmniPlus subaccount record keeping system made
          available through ADP, Inc. under an alliance with DIDI and its
          affiliates.





DIDI compensates firms for sales of Class B shares at the time of sale at a
commission rate of up to 3.75% of the amount of Class B shares purchased. DIDI
is compensated by the Fund for services as distributor and principal underwriter
for Class B shares. Except as provided below, for sales of Class C shares, DIDI
advances to firms the first year distribution fee at a rate of 0.75% of the
purchase price of such shares, and, for periods after the first year, DIDI
currently pays firms for sales of Class C shares a distribution fee, payable
quarterly, at an annual rate of 0.75% of net assets attributable to Class C
shares maintained and serviced by the firm. For sales of Class C shares to
employer sponsored employee benefit plans using the OmniPlus subaccount record
keeping system made available through ADP, Inc. under an alliance with DIDI and
its affiliates, DIDI does not advance the first year distribution fee and for
periods after the date of sale, DIDI currently pays firms a distribution fee,
payable quarterly, at an annual rate of 0.75% based on net assets as of the last
business day of the month attributable to Class C shares maintained and serviced
by the firm. DIDI is compensated by the Fund for services as distributor and
principal underwriter for Class C shares.


Revenue Sharing


In light of recent regulatory developments, the Advisor, the Distributor and
their affiliates have undertaken to furnish certain additional information below
regarding the level of payments made by them to selected affiliated and
unaffiliated brokers, dealers, participating insurance companies or other
financial intermediaries ("financial advisors") in connection with the sale
and/or distribution of Fund shares or the retention and/or servicing of
investors and Fund shares ("revenue sharing").

The Advisor, the Distributor and/or their affiliates may pay additional
compensation, out of their own assets and not as an additional charge to each
Fund, to financial advisors in connection with the sale and/or distribution of
Fund shares or the retention and/or servicing of Fund investors and Fund shares.
Such revenue sharing payments are in addition to any distribution or service
fees payable under any Rule 12b-1 or service plan of any fund, any record
keeping/sub-transfer agency/networking fees payable by each Fund (generally
through the Distributor or an affiliate) and/or the Distributor to certain
financial advisors for performing such services and any sales charges,
commissions, non-cash compensation arrangements expressly permitted under
applicable rules of FINRA or other concessions described in the fee table or
elsewhere in the Prospectuses or the SAI as payable to all financial advisors.
For example, the Advisor, the Distributor and/or their affiliates may compensate
financial advisors for providing each Fund with "shelf space" or access to a
third party platform or fund offering list, or other marketing programs
including, without limitation, inclusion of each Fund on preferred or
recommended sales lists, mutual fund "supermarket" platforms and other formal
sales programs; granting the Distributor access to the financial advisor's sales
force; granting the Distributor access to the financial advisor's conferences
and meetings; assistance in training and educating the financial advisor's
personnel; and, obtaining other forms of marketing support. The level of revenue
sharing payments made to financial advisors may be a fixed fee or based upon one
or more of the following factors: gross sales, current assets and/or number of
accounts of each Fund attributable to the financial advisor, the particular fund
or fund type or other measures as agreed to by the Advisor, the Distributor
and/or their affiliates and the financial advisors or any combination thereof.
The amount of these payments is determined at the discretion of the Advisor, the
Distributor and/or their affiliates from time to time, may be substantial, and
may be different for different financial advisors based on, for example, the
nature of the services provided by the financial advisor.

The Advisor, the Distributor and/or their affiliates currently make revenue
sharing payments from their own assets in connection with the sale and/or
distribution of DWS Fund shares, or the retention and/or servicing of investors,
to financial advisors in amounts that generally range from .01% up to .50% of
assets of the Fund serviced and maintained by the financial advisor, .05% to
..25% of sales of the Fund attributable to the financial advisor, a flat fee of
$13,350 up to $500,000, or any combination thereof. These amounts are annual
figures typically paid on a quarterly basis and are subject to change at the
discretion of the Advisor, the Distributor and/or their affiliates. Receipt of,
or the prospect of receiving, this additional compensation, may influence your
financial advisor's recommendation of this Fund or of any particular share class
of the Fund. You should review your financial advisor's compensation disclosure
and/or talk to your financial advisor to obtain more information on how this
compensation may have influenced your financial advisor's recommendation of this
Fund.

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

As of the date hereof, each Fund has been advised that the Advisor, the
Distributor and their affiliates expect that the following firms will receive
revenue sharing payments at different points during the coming year as described
above:

Channel: Broker-Dealers and Financial Advisors
----------------------------------------------
AIG Advisors Group
Ameriprise
Cadaret, Grant & Co. Inc.
Capital Analyst, Incorporated
Citigroup Global Markets, Inc. (dba Smith Barney)
Commonwealth Equity Services, LLP (dba Commonwealth Financial Network)
Deutsche Bank Group
Ensemble Financial Services
First Clearing/Wachovia Securities
Fiserv Trust Company
HD Vest Investment Securities, Inc.
ING Group
John Hancock Distributors LLC
LPL Financial
M.L. Stern & Co.
Meridien Financial Group
Merrill Lynch, Pierce, Fenner & Smith Inc.
Morgan Stanley
Oppenheimer & Co., Inc.
Raymond James & Associates
Raymond James Financial Services
RBC Dain Rauscher, Inc
Securities America, Inc.
UBS Financial Services
Wachovia Securities
Wells Fargo Investments, LLC

Channel: Cash Product Platform
------------------------------
Allegheny Investments LTD
Bank of New York (Hare & Co.)
Bear, Stearns Securities Corp.
Brown Brothers Harriman
Brown Investment Advisory & Trust Company
Cadaret Grant & Co.
Chicago Mercantile Exchange
D.A. Davidson & Company
Deutsche Bank Group
Emmett A. Larkin Company
Fiduciary Trust Co. - International
First Southwest Company
Huntleigh Securities
Lincoln Investment Planning
LPL Financial
Mellon Financial Markets LLC
Penson Financial Services
Pershing Choice Platform
ProFunds Distributors, Inc.
Ridge Clearing & Outsourcing Solutions
Robert W. Baird & Co.
Romano Brothers and Company
SAMCO Capital Markets
Smith Moore & Company
Sungard Institutional Brokerage Inc.
US Bancorp
UBS Financial Services
William Blair & Company

Channel: Third Party Insurance Platforms
----------------------------------------
Allstate Life Insurance Company of New York
Ameritas Life Insurance Group
Annuity Investors Life Insurance Company
Columbus Life Insurance Company
Commonwealth Annuity and Life Insurance Company
Companion Life Insurance Company
Connecticut General Life Insurance Company
Farmers New World Life Insurance Company
Fidelity Security Life Insurance Company
First Allmerica Financial Life Insurance Company
First Great West Life and Annuity Company
Genworth Life Insurance Company of New York
Genworth Life and Annuity Insurance Company
Great West Life and Annuity Insurance Company
Hartford Life Insurance Company
Integrity Life Insurance Company
John Hancock Life Insurance companies
Kemper Investors Life Insurance Company
Lincoln Benefit Life Insurance Company
Lincoln Life & Annuity Company of New York
Lincoln National Life Insurance Company
Massachusetts Mutual Life Insurance Group
MetLife Group
Minnesota Life Insurance Company
National Life Insurance Company
National Integrity Life Insurance Company
Nationwide Group
New York Life Insurance and Annuity Corporation
Phoenix Life Insurance Company
Protective Life Insurance
Provident Mutual Life Insurance
Prudential Insurance Company of America
Sun Life Group
Symetra Life Insurance Company
Transamerica Life Insurance Company
Union Central Life Insurance Company
United of Omaha Life Insurance Company
United Investors Life Insurance Company
Western Southern Life Assurance Company

Any additions, modifications or deletions to the financial advisors identified
above that have occurred since the date hereof are not reflected.

The Advisor, the Distributor or their affiliates may enter into additional
revenue sharing arrangements or change or discontinue existing arrangements with
financial advisors at any time without notice.

The prospect of receiving, or the receipt of additional compensation or
promotional incentives described above by financial advisors may provide such
financial advisors and/or their salespersons with an incentive to favor sales of
shares of the DWS funds or a particular DWS fund over sales of shares of mutual
funds (or non-mutual fund investments) with respect to which the financial
advisor does not receive additional compensation or promotional incentives, or
receives lower levels of additional compensation or promotional incentives.
Similarly, financial advisors may receive different compensation or incentives
that may influence their recommendation of any particular share class of the
Fund or of other funds. These payment arrangements, however, will not change the
price that an investor pays for Fund shares or the amount that the Fund receives
to invest on behalf of an investor and will not increase Fund expenses. You may
wish to take such payment arrangements into account when considering and
evaluating any recommendations relating to Fund shares and you should discuss
this matter with your financial advisor and review your financial advisor's
disclosures.

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




Class A Purchases. The public offering price of Class A shares for purchasers
choosing the initial sales charge alternative is the net asset value plus a
sales charge, as set forth below.

<TABLE>
<CAPTION>
                                                                   Sales Charge
                                                                   ------------
                                                                                         Allowed to Dealers
                                           As a Percentage of    As a Percentage of     as a Percentage of
Amount of Purchase                           Offering Price       Net Asset Value*         Offering Price
------------------                           --------------       ----------------         --------------

<S>       <C>                                      <C>                    <C>                   <C>
Less than $50,000                                  5.75%                  6.10%                 5.20%
$50,000 but less than $100,000                     4.50                   4.71                  4.00
$100,000 but less than $250,000                    3.50                   3.63                  3.00
$250,000 but less than $500,000                    2.60                   2.67                  2.25
$500,000 but less than $1 million                  2.00                   2.04                  1.75
$1 million and over                               0.00**                  0.00**                ***
</TABLE>

*        Rounded to the nearest one-hundredth percent.

**       Redemption of shares may be subject to a contingent deferred sales
         charge as discussed below.


***      Commission is payable by DIDI as discussed below.

Class A Quantity Discounts. An investor or the investor's dealer or other
financial services firm must notify the Shareholder Service Agent or DIDI
whenever a quantity discount or reduced sales charge is applicable to a
purchase. In order to qualify for a lower sales charge, all orders from an
organized group will have to be placed through a single investment dealer or
other firm and identified as originating from a qualifying purchaser.


Combined Purchases. Each Fund's Class A shares may be purchased at the rate
applicable to the sales charge discount bracket attained by combining same day
investments in Class A shares of any DWS Funds that bear a sales charge.


For purposes of the Combined Purchases, Letter of Intent and Cumulative Discount
features described above, employer sponsored employee benefit plans using the
Flex subaccount record keeping system available through ADP, Inc. under an
alliance with DIDI and its affiliates may include: (a) Money Market Funds as
"DWS Funds," (b) all classes of shares of any DWS Fund and (c) the value of any
other plan investments, such as guaranteed investment contracts and employer
stock, maintained on such subaccount record keeping system. Once eligible plan
assets under this provision reach the $1,000,000 threshold, a later decline in
assets below the $1,000,000 threshold will not affect the plan's ability to
continue to purchase Class A shares at net asset value.

Letter of Intent. The reduced sales charges for Class A shares, as shown in the
applicable prospectus, also apply to the aggregate amount of purchases of Class
A shares of DWS Funds that bear a sales charge made by any purchaser within a
24-month period under a written Letter of Intent ("Letter") provided by DIDI.
The Letter, which imposes no obligation to purchase or sell additional Class A
shares, provides for a price adjustment depending upon the actual amount
purchased within such period. The Letter provides that the first purchase
following execution of the Letter must be at least 5% of the amount of the
intended purchase, and that 5% of the amount of the intended purchase normally
will be held in escrow in the form of shares pending completion of the intended
purchase. If the total investments under the Letter are less than the intended
amount and thereby qualify only for a higher sales charge than actually paid,
the appropriate number of escrowed shares are redeemed and the proceeds used
toward satisfaction of the obligation to pay the increased sales charge. The
Letter for an employer-sponsored employee benefit plan maintained on the
subaccount record keeping system available through ADP, Inc. under an alliance
with DIDI and its affiliates may have special provisions regarding payment of
any increased sales charge resulting from a failure to complete the intended
purchase under the Letter. A shareholder may include the value (at the maximum
offering price, which is determined by adding the maximum applicable sales load
charged to the net asset value) of all Class A shares of such DWS Funds held of
record as of the initial purchase date under the Letter as an "accumulation
credit" toward the completion of the Letter, but no price adjustment will be
made on such shares.


Class A Cumulative Discount. Class A shares of a Fund may also be purchased at
the rate applicable to the discount bracket attained by adding to the cost of
shares being purchased, the value of all Class A shares of DWS Funds that bear a
sales charge (computed at the maximum offering price at the time of the purchase
for which the discount is applicable) already owned by the investor or his or
her immediate family member (including the investor's spouse or life partner and
children or stepchildren age 21 or younger).

Class A NAV Sales. Class A shares may be sold at net asset value to:

(a)      a current or former director or trustee of Deutsche or DWS mutual
         funds;

(b)      an employee (including the employee's spouse or life partner and
         children or stepchildren age 21 or younger) of Deutsche Bank or its
         affiliates or of a subadvisor to any fund in the DWS family of funds or
         of a broker-dealer authorized to sell shares of the Fund or service
         agents of the Funds;


(c)      certain professionals who assist in the promotion of DWS mutual funds
         pursuant to personal services contracts with DIDI, for themselves or
         members of their families. DIDI in its discretion may compensate
         financial services firms for sales of Class A shares under this
         privilege at a commission rate of 0.50% of the amount of Class A shares
         purchased;


(d)      any trust, pension, profit-sharing or other benefit plan for only such
         persons listed under the preceding paragraphs (a) and (b);

(e)      persons who purchase such shares through bank trust departments that
         process such trades through an automated, integrated mutual fund
         clearing program provided by a third party clearing firm;


(f)      selected employees (including their spouses or life partners and
         children or stepchildren age 21 or younger) of banks and other
         financial services firms that provide administrative services related
         to order placement and payment to facilitate transactions in shares of
         the Fund for their clients pursuant to an agreement with DIDI or one of
         its affiliates. Only those employees of such banks and other firms who
         as part of their usual duties provide services related to transactions
         in Fund shares qualify;


(g)      unit investment trusts sponsored by Ranson & Associates, Inc. and
         unitholders of unit investment trusts sponsored by Ranson & Associates,
         Inc. or its predecessors through reinvestment programs described in the
         prospectuses of such trusts that have such programs;


(h)      through certain investment advisors registered under the Investment
         Advisers Act of 1940 and other financial services firms acting solely
         as agent for their clients, that adhere to certain standards
         established by DIDI, including a requirement that such shares be sold
         for the benefit of their clients participating in an investment
         advisory program or agency commission program under which such clients
         pay a fee to the investment advisor or other firm for portfolio
         management or agency brokerage services. Such shares are sold for
         investment purposes and on the condition that they will not be resold
         except through redemption or repurchase by the Fund;

(i)      employer sponsored employee benefit plans using the Flex subaccount
         recordkeeping system ("Flex Plans") made available through ADP under an
         alliance with DIDI and its affiliates, established prior to October 1,
         2003, provided that the Flex Plan is a participant-directed plan that
         has not less than 200 eligible employees;


(j)      investors investing $1 million or more, either as a lump sum or through
         the "Combined Purchases," "Letter of Intent" and "Cumulative Discount"
         features referred to above (collectively, the "Large Order NAV Purchase
         Privilege"). The Large Order NAV Purchase Privilege is not available if
         another net asset value purchase privilege is available;

(k)      defined contribution investment only plans with a minimum of $1,000,000
         in plan assets regardless of the amount allocated to the DWS funds;

In addition, Class A shares may be sold at net asset value in connection with:


(l)      the acquisition of the assets of or merger or consolidation with
         another investment company, or to shareholders in connection with the
         investment or reinvestment of income and capital gain dividends, and
         under other circumstances deemed appropriate by DIDI and consistent
         with regulatory requirements; and

(m)      a direct "roll over" of a distribution from a Flex Plan or from
         participants in employer sponsored employee benefit plans maintained on
         the OmniPlus subaccount record keeping system made available through
         ADP, Inc. under an alliance with DIDI and its affiliates into a DWS
         Investments IRA;


(n)      reinvestment of fund dividends and distributions;

(o)      exchanging an investment in Class A shares of another fund in the DWS
         family of funds for an investment in the fund.


Class A shares also may be purchased at net asset value in any amount by members
of the plaintiff class in the proceeding known as Howard and Audrey Tabankin, et
al. v. Kemper Short-Term Global Income Fund, et al., Case No. 93 C 5231 (N.D.
IL). This privilege is generally non-transferable and continues for the lifetime
of individual class members and for a ten-year period for non-individual class
members. To make a purchase at net asset value under this privilege, the
investor must, at the time of purchase, submit a written request that the
purchase be processed at net asset value pursuant to this privilege specifically
identifying the purchaser as a member of the "Tabankin Class." Shares purchased
under this privilege will be maintained in a separate account that includes only
shares purchased under this privilege. For more details concerning this
privilege, class members should refer to the Notice of (i) Proposed Settlement
with Defendants; and (ii) Hearing to Determine Fairness of Proposed Settlement,
dated August 31, 1995, issued in connection with the aforementioned court
proceeding. For sales of Fund shares at net asset value pursuant to this
privilege, DIDI may in its discretion pay investment dealers and other financial
services firms a concession, payable quarterly, at an annual rate of up to 0.25%
of net assets attributable to such shares maintained and serviced by the firm. A
firm becomes eligible for the concession based upon assets in accounts
attributable to shares purchased under this privilege in the month after the
month of purchase and the concession continues until terminated by DIDI. The
privilege of purchasing Class A shares of the Fund at net asset value under this
privilege is not available if another net asset value purchase privilege also
applies.


Class B Purchases. Class B shares of each Fund are offered at net asset value.
No initial sales charge is imposed. Class B shares sold without an initial sales
charge allow the full amount of the investor's purchase payment to be invested
in Class B shares for his or her account. Class B shares have a contingent
deferred sales charge of 4.00% that declines over time (for shares sold within
six years of purchase) and Rule 12b-1 fees, as described in the Funds'
Prospectuses and SAI. Class B shares automatically convert to Class A shares
after six years.

Class C Purchases. Class C shares of each Fund are offered at net asset value.
No initial sales charge is imposed which allows the full amount of the
investor's purchase payment to be invested in Class C shares for his or her
account. Class C shares are subject to a contingent deferred sales charge of
1.00% (for shares sold within one year of purchase) and Rule 12b-1 fees, as
described in the Funds' Prospectuses and SAI.

Multi-Class Suitability


DIDI has established the following procedures regarding the purchase of Class A,
Class B and Class C shares. Orders to purchase Class B shares of $100,000 or
more and orders to purchase Class C shares of $500,000 or more will be declined
with the exception of orders received from financial representatives acting for
clients whose shares are held in an omnibus account and employer-sponsored
employee benefit plans using the subaccount record keeping system ("System")
maintained for DWS Investments-branded plans on record keeping systems made
available through ADP, Inc. under an alliance with DIDI and its affiliate ("DWS
Investments Flex Plans").





The following provisions apply to DWS Investments Flex Plans.

a.       Class B Share DWS Investments Flex Plans. Class B shares have not been
         sold to DWS Investments Flex Plans that were established on the System
         after October 1, 2003. Orders to purchase Class B shares for a DWS
         Investments Flex Plan established on the System prior to October 1,
         2003 that has regularly been purchasing Class B shares will be invested
         instead in Class A shares at net asset value when the combined
         subaccount value in DWS Funds or other eligible assets held by the plan
         is $100,000 or more. This provision will be imposed for the first
         purchase after eligible plan assets reach the $100,000 threshold. A
         later decline in assets below the $100,000 threshold will not affect
         the plan's ability to continue to purchase Class A shares at net asset
         value.

b.       Class C Share DWS Investments Flex Plans. Orders to purchase Class C
         shares for a DWS Investments Flex Plan, regardless of when such plan
         was established on the System, will be invested instead in Class A
         shares at net asset value when the combined subaccount value in DWS
         Funds or other eligible assets held by the plan is $1,000,000 or more.
         This provision will be imposed for the first purchase after eligible
         plan assets reach the $1,000,000 threshold. A later decline in assets
         below the $1,000,000 threshold will not affect the plan's ability to
         continue to purchase Class A shares at net asset value.




The procedures described above do not reflect in any way the suitability of a
particular class of shares for a particular investor and should not be relied
upon as such. A suitability determination must be made by investors with the
assistance of their financial representative.


Automatic Investment Plan. A shareholder may purchase shares of the Fund through
an automatic investment program. With the Direct Deposit Purchase Plan ("Direct
Deposit"), investments are made automatically (minimum $500 and maximum $250,000
for initial investments and a minimum of $50 and maximum $250,000 for subsequent
investments) from the shareholder's account at a bank, savings and loan or
credit union into the shareholder's Fund account. Termination by a shareholder
will become effective within thirty days after the Shareholder Service Agent has
received the request. The Fund may immediately terminate a shareholder's Direct
Deposit in the event that any item is unpaid by the shareholder's financial
institution.





Minimum Subsequent Investment Policies. For current shareholders of Class A, B
or C shares there is a $50 minimum investment requirement for subsequent
investments in the fund. There is no minimum subsequent investment requirement
in Class A shares for investments on behalf of participants in certain fee-based
and wrap programs offered through financial intermediaries approved by the
Advisor.




Payroll Investment Plans. A shareholder may purchase shares through Payroll
Direct Deposit or Government Direct Deposit. Under these programs, all or a
portion of a shareholder's net pay or government check is invested each payment
period. A shareholder may terminate participation in these programs by giving
written notice to the shareholder's employer or government agency, as
appropriate. (A reasonable time to act is required.) The Funds are not
responsible for the efficiency of the employer or government agency making the
payment or any financial institutions transmitting payments.


Expedited Purchase Procedures for Existing Shareholders. Shareholders of other
DWS Funds who have submitted an account application and have certified a tax
identification number, clients having a regular investment counsel account with
the Advisor or its affiliates and members of their immediate families, officers
and employees of the Advisor or of any affiliated organization and their
immediate families, members of FINRA, and banks may open an account by wire by
calling (800) 621-1048 for instructions. The investor must send a duly completed
and signed application to the Fund promptly. A subsequent purchase order may be
placed by established shareholders (except by DWS Investments Individual
Retirement Account (IRA), DWS Simplified Profit Sharing and Money Purchase
Pension Plans, DWS Investments 401(k) and DWS Investments 403(b) Plan holders),
members of FINRA, and banks.




It is our policy to offer purchase privileges to current or former directors or
trustees of the Deutsche or DWS mutual funds, employees, their spouses or life
partners and children or step-children age 21 or younger of Deutsche Bank or its
affiliates or a sub-advisor to any fund in the DWS family of funds or a
broker-dealer authorized to sell shares of the funds. Qualified individuals will
generally be allowed to purchase shares in the class with the lowest expense
ratio, usually the Institutional Class shares. If a fund does not offer
Institutional Class shares, these individuals will be allowed to buy Class A
shares at NAV. The funds also reserve the right to waive the minimum account
balance requirement for employee and director accounts. Fees generally charged
to IRA accounts will be charged to accounts of employees and directors.

Redemptions

A Fund may suspend or postpone redemptions as permitted by section 22(e) of the
Investment Company Act.


A request for repurchase (confirmed redemption) may be communicated by a
shareholder through a financial services firm to DIDI, which firms must promptly
submit orders to be effective.


Redemption requests must be unconditional. Redemption requests (and a stock
power for certificated shares) must be duly endorsed by the account holder. As
specified in the prospectus, signatures may need to be guaranteed by a
commercial bank, trust company, savings and loan association, federal savings
bank, member firm of a national securities exchange or other financial
institution permitted by SEC rule. Additional documentation may be required,
particularly from institutional and fiduciary account holders, such as
corporations, custodians (e.g., under the Uniform Transfers to Minors Act),
executors, administrators, trustees or guardians.

If the proceeds of the redemption (prior to the imposition of any contingent
deferred sales charge) are $100,000 or less and the proceeds are payable to the
shareholder of record at the address of record, normally a telephone request or
a written request by any one account holder without a signature guarantee is
sufficient for redemptions by individual or joint account holders, and trust,
executor and guardian account holders, provided the trustee, executor or
guardian is named in the account registration. Other institutional account
holders may exercise this special privilege of redeeming shares by telephone
request or written request without signature guarantee subject to the same
conditions as individual account holders, provided that this privilege has been
pre-authorized by the institutional account holder by written instruction to the
Shareholder Service Agent with signatures guaranteed. This privilege may not be
used to redeem shares held in certificated form and may not be used if the
shareholder's account has had an address change within 15 days of the redemption
request.

Wires. Delivery of the proceeds of a wire redemption of $250,000 or more may be
delayed by a Fund for up to seven days if the Fund or the Shareholder Service
Agent deems it appropriate under then-current market conditions. The ability to
send wires is limited by the business hours and holidays of the firms involved.
The Funds are not responsible for the efficiency of the federal wire system or
the account holder's financial services firm or bank. The account holder is
responsible for any charges imposed by the account holder's firm or bank. To
change the designated account to receive wire redemption proceeds, send a
written request to the Fund's Shareholder Service Agent with signatures
guaranteed as described above or contact the firm through which the Fund shares
were purchased.

Automatic Withdrawal Plan. The owner of $5,000 or more of a class of a Fund's
shares at the offering price (net asset value plus, in the case of Class A
shares, the initial sales charge) may provide for the payment from the owner's
account of any requested dollar amount to be paid to the owner or a designated
payee monthly, quarterly, semiannually or annually. The $5,000 minimum account
size is not applicable to IRAs. The minimum periodic payment is $50. The maximum
annual rate at which shares, subject to CDSC may be redeemed is 12% of the net
asset value of the account. Shares are redeemed so that the payee should receive
payment approximately the first of the month. Investors using this Plan must
reinvest Fund distributions.

Non-retirement plan shareholders may establish an Automatic Withdrawal Plan (the
"Plan") to receive monthly, quarterly or periodic redemptions from his or her
account for any designated amount of $50 or more. Shareholders may designate
which day they want the automatic withdrawal to be processed. The check amounts
may be based on the redemption of a fixed dollar amount, fixed share amount,
percent of account value or declining balance. The Plan provides for income
dividends and capital gains distributions, if any, to be reinvested in
additional Shares. Shares are then liquidated as necessary to provide for
withdrawal payments. Since the withdrawals are in amounts selected by the
investor and have no relationship to yield or income, payments received cannot
be considered as yield or income on the investment and the resulting
liquidations may deplete or possibly extinguish the initial investment and any
reinvested dividends and capital gains distributions. Requests for increases in
withdrawal amounts or to change the payee must be submitted in writing, signed
exactly as the account is registered, and contain signature guarantee(s). Any
such requests must be received by a Fund's transfer agent ten days prior to the
date of the first automatic withdrawal. An Automatic Withdrawal Plan may be
terminated at any time by the shareholder, the Trust or its agent on written
notice, and will be terminated when all Shares of a Fund under the Plan have
been liquidated or upon receipt by the Trust of notice of death of the
shareholder.

The purchase of Class A shares while participating in a systematic withdrawal
plan will ordinarily be disadvantageous to the investor because the investor
will be paying a sales charge on the purchase of shares at the same time that
the investor is redeeming shares upon which a sales charge may have already been
paid. Therefore, the Fund will not knowingly permit additional investments of
less than $2,000 if the investor is at the same time making systematic
withdrawals.

An Automatic Withdrawal Plan request form can be obtained by calling
1-800-621-1048.

Contingent Deferred Sales Charge (CDSC). The following example will illustrate
the operation of the CDSC. Assume that an investor makes a single purchase of
$10,000 of the Fund's Class B shares and that 16 months later the value of the
shares has grown by $1,000 through reinvested dividends and by an additional
$1,000 of share appreciation to a total of $12,000. If the investor were then to
redeem the entire $12,000 in share value, the CDSC would be payable only with
respect to $10,000 because neither the $1,000 of reinvested dividends nor the
$1,000 of share appreciation is subject to the charge. The charge would be at
the rate of 3.00% ($300) because it was in the second year after the purchase
was made.


The rate of the CDSC is determined by the length of the period of ownership.
Investments are tracked on a monthly basis. The period of ownership for this
purpose begins the first day of the month in which the order for the investment
is received. For example, an investment made in March of the year of investment
will be eligible for the second year's charge if redeemed on or after March of
the following year. In the event no specific order is requested when redeeming
shares subject to a CDSC, the redemption will be made first from shares
representing reinvested dividends and then from the earliest purchase of shares.
DIDI receives any CDSC directly. The charge will not be imposed upon redemption
of reinvested dividends or share appreciation.


The Class A CDSC will be waived in the event of:

(a)      redemptions by a participant-directed qualified retirement plan
         described in Code Section 401(a), a participant-directed non-qualified
         deferred compensation plan described in Code Section 457 or a
         participant-directed qualified retirement plan described in Code
         Section 403(b)(7) which is not sponsored by a K-12 school district;


(b)      redemptions by employer-sponsored employee benefit plans using the
         subaccount record keeping system made available through ADP, Inc. under
         an alliance with DIDI and its affiliates;


(c)      redemption of shares of a shareholder (including a registered joint
         owner) who has died or is disabled (under certain conditions);

(d)      redemption of shares of a shareholder (including a registered joint
         owner) who after purchase of the shares being redeemed becomes totally
         disabled (as evidenced by a determination by the federal Social
         Security Administration);

(e)      redemptions under the Fund's Automatic Withdrawal Plan at a maximum of
         12% per year of the net asset value of the account;


(f)      redemptions of shares whose dealer of record at the time of the
         investment notifies DIDI that the dealer waives the discretionary
         commission applicable to such Large Order NAV Purchase; and


(g)      redemptions for certain loan advances, hardship provisions or returns
         of excess contributions from retirement plans.

The Class B CDSC will be waived for the circumstances set forth in items (c),
(d), (e) and (g) for Class A shares. In addition, this CDSC will be waived:

(h)      for redemptions made pursuant to any IRA systematic withdrawal based on
         the shareholder's life expectancy including, but not limited to,
         substantially equal periodic payments described in Internal Revenue
         Code Section 72(t)(2)(A)(iv) prior to age 59 1/2;


(i)      for redemptions to satisfy required minimum distributions after age 70
         1/2 from an IRA account (with the maximum amount subject to this waiver
         being based only upon the shareholder's DWS Investments IRA accounts);
         and

(j)      in connection with the following redemptions of shares held by employer
         sponsored employee benefit plans maintained on the subaccount record
         keeping system made available through ADP under an alliance with DIDI
         and its affiliates: (1) to satisfy participant loan advances (note that
         loan repayments constitute new purchases for purposes of the CDSC and
         the conversion privilege), (2) in connection with retirement
         distributions (limited at any one time to 12% of the total value of
         plan assets invested in the Fund), (3) in connection with distributions
         qualifying under the hardship provisions of the Internal Revenue Code,
         (4) representing returns of excess contributions to such plans and (5)
         in connection with direct "roll over" distributions from a Flex Plan
         into a DWS Investments IRA under the Class A net asset value purchase
         privilege.


The Class C CDSC will be waived for the circumstances set forth in items (b),
(c), (d), (e) and (g) for Class A shares and for the circumstances set forth in
items (h) and (i) for Class B shares. In addition, this CDSC will be waived for:

(k)      redemption of shares by an employer sponsored employee benefit plan
         that offers funds in addition to DWS Funds and whose dealer of record
         has waived the advance of the first year administrative service and
         distribution fees applicable to such shares and agrees to receive such
         fees quarterly, and

(l)      redemption of shares purchased through a dealer-sponsored asset
         allocation program maintained on an omnibus record-keeping system
         provided the dealer of record had waived the advance of the first year
         administrative services and distribution fees applicable to such shares
         and has agreed to receive such fees quarterly.

In-kind Redemptions. A Fund reserves the right to honor any request for
redemption or repurchase by making payment in whole or in part in readily
marketable securities. These securities will be chosen by the Fund and valued as
they are for purposes of computing the Fund's net asset value. A shareholder may
incur transaction expenses in converting these securities to cash.

Exchanges

Shareholders may request a taxable exchange of their shares for shares of the
corresponding class of other DWS Funds without imposition of a sales charge,
subject to the provisions below. For purposes of calculating any CDSC, amounts
exchanged retain their original cost and purchase date.


Shares of money market funds that were acquired by purchase (not including
shares acquired by dividend reinvestment) are subject to the applicable sales
charge on exchange. Certain series of DWS Target Fund are available on exchange
only during the offering period for such series as described in the applicable
prospectus. Tax Free Money Fund -- Investment Class, NY Tax-Free Money Fund --
Investment Class, Money Market Fund -- Investment Class, Cash Management Fund
Institutional, Cash Reserves Fund Institutional, Cash Reserve Fund, Inc. Prime
Series, Tax-Exempt California Money Market Fund, Cash Account Trust and
Investors Cash Trust are available on exchange but only through a financial
services firm having a services agreement with DIDI. All exchanges among money
funds must meet applicable investor eligibility and investment requirements.
Exchanges may only be made for funds that are available for sale in the
shareholder's state of residence. Currently, Tax-Exempt California Money Market
Fund is available for sale only in California.





Shareholders must obtain prospectuses of the Funds they are exchanging into from
dealers, other firms or DIDI.


Automatic Exchange Plan. The owner of $1,000 or more of any class of shares of a
DWS Fund may authorize the automatic exchange of a specified amount ($50
minimum) of such shares for shares of the same class of another such DWS Fund.
Exchanges will be made automatically until the shareholder or the Fund
terminates the privilege. Exchanges are subject to the terms and conditions
described above.

Multi-Class Conversions. For purposes of conversion to Class A shares, shares
purchased through the reinvestment of dividends and other distributions paid
with respect to Class B shares in a shareholder's Fund account will be converted
to Class A shares on a pro rata basis.

                                    DIVIDENDS




Each Fund intends to follow the practice of distributing substantially all of
its investment company taxable income, which includes any excess of net realized
short-term capital gains over net realized long-term capital losses. Each Fund
may follow the practice of distributing the entire excess of net realized
long-term capital gains over net realized short-term capital losses. However,
each Fund may retain all or part of such gain for reinvestment, after paying the
related federal taxes for which shareholders may then be able to claim a credit
against their federal tax liability. If a Fund does not distribute the amount of
capital gain and/or ordinary income required to be distributed by an excise tax
provision of the Code, a Fund may be subject to that excise tax. In certain
circumstances, a Fund may determine that it is in the interest of shareholders
to distribute less than the required amount.

DWS LifeCompass Retirement Fund and DWS LifeCompass 2015 Fund intend to
distribute dividends from their net investment income excluding net short-term
capital gains on a quarterly basis, in March, June, September and December. DWS
LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund
intend to distribute dividends from their net investment incomes excluding
short-term capital gains annually in December. Each Fund intends to distribute
net realized capital gains after utilization of capital loss carryforwards, if
any, in December to prevent application of a federal excise tax. An additional
distribution may be made, if necessary.


The level of income dividends per share (as a percentage of net asset value)
will be lower for Class B and Class C Shares than for Class A Shares primarily
as a result of the distribution services fee applicable to Class B and Class C
Shares. Distributions of capital gains, if any, will be paid in the same amount
for each class.


Dividends will be reinvested in shares of the same class of a Fund unless
shareholders indicate in writing that they wish to receive them in cash. Each
Fund will reinvest dividend checks (and future dividends) in shares of the same
Fund and class if checks are returned as undeliverable. Dividends and other
distributions of a Fund in the aggregate amount of $10 or less are automatically
reinvested in shares of the Fund unless the shareholder requests in writing that
a check be issued for that particular distribution.

If a shareholder has elected to reinvest any dividends and/or other
distributions, such distributions will be made in shares of that Fund and
confirmations will be mailed to each shareholder. If a shareholder has chosen to
receive cash, a check will be sent. Distributions of investment company taxable
income and net realized capital gains are taxable, whether made in shares of the
Funds or cash.


Each distribution is accompanied by a brief explanation of the form and
character of the distribution. The characterization of distributions on such
correspondence may differ from the characterization for federal tax purposes. In
January of each year each Fund issues to each shareholder a statement of the
federal income tax status of all distributions in the prior calendar year.




Each Fund may at any time vary its foregoing distribution practices and,
therefore, reserves the right from time to time to either distribute or retain
for reinvestment such of its net investment income and its net short-term and
long-term capital gains as its Board determines appropriate under the then
current circumstances. In particular, and without limiting the foregoing, a Fund
may make additional distributions of net investment income or net capital gain
in order to satisfy the minimum distribution requirements contained in the Code.
In any event, each Fund intends to make sufficient distributions of net
investment income and net capital gain to satisfy the minimum distribution
requirements applicable to regulated investment companies under the Code. See
"Taxes" below.


                                      TAXES


The following is intended to be a general summary of certain US federal income
tax consequences of investing in the Funds. It is not intended as a complete
discussion of all such consequences, nor does it purport to deal with all
categories of investors. Investors are therefore advised to consult with their
tax advisors before making an investment in a Fund. The summary is based on the
Code, US Treasury Regulations, and other applicable authority as of the date of
this SAI. These authorities are subject to change by legislative or
administrative action, possibly with retroactive effect.

Taxation of the Funds. Each Fund has elected to be treated as a regulated
investment company ("RIC") under Subchapter M of the Code and has qualified as
such since its inception. Each Fund intends to continue to so qualify in each
taxable year as required under the Code in order to avoid payment of federal
income tax at the Fund level. In order to qualify for the special tax treatment
accorded RICs, each Fund must among other things:


(a)      derive at least 90% of its gross income for each taxable year from (i)
         dividends, interest, payments with respect to certain securities loans,
         and gains from the sale or other disposition of stock, securities or
         foreign currencies, or other income (including but not limited to gains
         from options, futures, or forward contracts) derived with respect to
         its business of investing in such stock, securities, or currencies and
         (ii) net income derived from interests in "qualified publicly traded
         partnerships" (as defined below);


(b)      diversify its holdings so that, at the end of each quarter of the
         Fund's taxable year, (i) at least 50% of the market value of the Fund's
         total assets is represented by cash and cash items, US Government
         securities, securities of other RICs, and other securities limited in
         respect of any one issuer to a value not greater than 5% of the value
         of the Fund's total assets and not more than 10% of the outstanding
         voting securities of such issuer, and (ii) not more than 25% of the
         value of the Fund's total assets is invested (x) in the securities
         (other than those of the US Government or other RICs) of any one issuer
         or of two or more issuers which the Fund controls and which are engaged
         in the same, similar, or related trades or businesses, or (y) in the
         securities of one or more qualified publicly traded partnerships (as
         defined below); and

(c)      distribute with respect to each taxable year at least 90% of the sum of
         its investment company taxable income (as that term is defined in the
         Code without regard to the deduction for dividends paid -- generally,
         taxable ordinary income and the excess, if any, of net short-term
         capital gains over net long-term capital losses) and net tax-exempt
         interest income (if any), for such year.

In general, for purposes of the 90% gross income requirement described in
paragraph (a) above, income derived from a partnership will be treated as
qualifying income only to the extent such income is attributable to items of
income of the partnership which would be qualifying income if realized directly
by the RIC. However, 100% of the net income derived from an interest in a
"qualified publicly traded partnership" (defined as a partnership (x) interests
in which are traded on an established securities market or readily tradable on a
secondary market or the substantial equivalent thereof, (y) that derives at
least 90% of its income from the passive income sources defined in Code section
7704(d), and (z)that derives less than 90% of its income from the qualifying
income described in paragraph (a)(i) above) will be treated as qualifying
income. In addition, although in general the passive loss rules of the Code do
not apply to RICs, such rules do apply to a RIC with respect to items
attributable to an interest in a qualified publicly traded partnership. In the
case of any investment by a Fund in loan participations, the Fund shall treat
both the financial intermediary and the issuer of the underlying loan as an
issuer for the purposes of meeting the diversification requirement described in
paragraph (b) above. Finally, for purposes of paragraph (b) above, the term
"outstanding voting securities of such issuer" will include the equity
securities of a qualified publicly traded partnership.

If the Funds qualify as RICs that are accorded special tax treatment, the Funds
will not be subject to federal income tax on income distributed in a timely
manner to their shareholders in the form of dividends (including Capital Gain
Dividends, as defined below).

As described in "Dividends" above, each Fund intends to distribute at least
annually to shareholders all or substantially all of its investment company
taxable income (computed without regard to the dividends-paid deduction) and may
distribute its net capital gain. Any investment company taxable income retained
by a Fund will be subject to tax at the Fund level at regular corporate rates.
Each Fund may also retain for investment its net capital gain. If a Fund retains
any net capital gain, it will be subject to tax at regular corporate rates on
the amount retained, but may designate the retained amount as undistributed
capital gains, in a notice to its shareholders who (i) will be required to
include in income for federal income tax purposes, as long-term capital gain,
their shares of such undistributed amount, and (ii) will be entitled to credit
their proportionate shares of the tax paid by the Fund on such undistributed
amount against their federal income tax liabilities, if any, and to claim
refunds on a properly-filed US tax return to the extent the credit exceeds such
liabilities. For federal income tax purposes, the tax basis of shares owned by a
shareholder of the Fund will be increased by an amount equal under current law
to the difference between the amount of undistributed capital gains included in
the shareholder's gross income and the tax deemed paid by the shareholder under
clause (ii) of the preceding sentence.

In determining its net capital gain for Capital Gain Dividend (as defined below)
purposes, a RIC generally must treat any net capital loss or any net long-term
capital loss incurred after October 31 as if it had been incurred in the
succeeding year. US Treasury regulations permit a RIC, in determining its
taxable income, to elect to treat all or part of any net capital loss, any net
long-term capital loss or any foreign currency loss incurred after October 31 as
if it had been incurred in the succeeding year.

Each Fund is subject to a 4% nondeductible excise tax on amounts required to be,
but not, distributed under a prescribed formula. The formula requires payment to
shareholders during a calendar year of distributions representing (i) at least
98% of the Fund's taxable ordinary income for the calendar year, (ii) at least
98% of the excess of its capital gains over capital losses realized during the
one-year period ending October 31 of such year, and (iii) amounts that were
neither distributed nor taxed to the Fund during the prior calendar year. For
these purposes, each Fund will be treated as having distributed any amount on
which it has been subject to corporate income tax in the taxable year ending
within the calendar year. A dividend paid to shareholders in January of a year
generally is deemed to have been paid by a Fund on December 31 of the preceding
year, if the dividend was declared and payable to shareholders of record on a
date in October, November or December of that preceding year. Although each
Fund's distribution policies should enable it to avoid excise tax liability,
each Fund may retain (and be subject to Fund level income and/or excise tax on)
a portion of its capital gain or other income if it appears to be in the
interest of the Fund. However, in any event, each Fund intends to comply with
the minimum distribution requirements applicable to RICs under Subchapter M of
the Code as described above.

If for any taxable year a Fund does not qualify for the special federal income
tax treatment that is accorded RICs, all of its taxable income will be subject
to federal income tax at regular corporate rates (without any deduction for
distributions to its shareholders), and all distributions from earnings and
profits, including any distributions of net tax-exempt income (if any) and net
long-term capital gains, will be taxable to shareholders as ordinary income.
Such distributions may be eligible (i) to be treated as "qualified dividend
income," in the case of individual and other non-corporate shareholders, subject
to reduced rates of federal income taxation for taxable years beginning before
January 1, 2011 and (ii) for the dividends received deduction in the case of
corporate shareholders. In addition, the Fund could be required to recognize
unrealized gains, pay substantial taxes and interest and make substantial
distributions before requalifying as a RIC that is accorded special tax
treatment.





Taxation of Fund Distributions. Distributions are taxable whether shareholders
receive them in cash or reinvest them in additional shares through the
reinvestment privilege. All distributions by a Fund result in a reduction in the
net asset value of that Fund's shares. Should a distribution reduce the net
asset value below a shareholder's cost basis, such distribution would
nevertheless be taxable to the shareholder as ordinary income or capital gain as
described above, even though, from an investment standpoint, it may constitute a
partial return of capital. In particular, investors should be careful to
consider the tax implications of buying shares just prior to a distribution. The
price of shares purchased at that time includes the amount of the forthcoming
distribution. Those purchasing just prior to a distribution will receive a
partial return of capital upon the distribution, which will nevertheless be
taxable to them. If a Fund makes a distribution to a shareholder in excess of
its current and accumulated earnings and profits in any taxable year, the excess
distribution will be treated as a return of capital to the extent of such
shareholder's tax basis in its shares, and thereafter as capital gain. A return
of capital is not taxable, but it reduces a shareholder's tax basis in its
shares, thus reducing any loss or increasing any gain on a subsequent taxable
disposition by the shareholder of his or her shares.

For federal income tax purposes, distributions of investment income are
generally taxable as ordinary income. Taxes on distributions of capital gains
are determined by how long a Fund owned (or is deemed to have owned) the
investments that generated them, rather than how long a shareholder has owned
his or her shares. Distributions of net capital gains from the sale of
investments that a Fund owned (or is deemed to have owned) for more than one
year and that are properly designated by the Fund as capital gain dividends
("Capital Gain Dividends") will be taxable as long-term capital gains. Capital
gains distributions may be reduced if Fund capital loss carryforwards are
available. Any capital loss carryforwards to which a Fund is entitled are
disclosed in a Fund's annual and semi-annual reports to shareholders. Long-term
capital gain rates applicable to individuals have been temporarily reduced - in
general, to 15% with lower rates applying to taxpayers in the 10% and 15% rate
brackets - for taxable years beginning before January 1, 2011. Distributions of
gains from the sale of investments that a Fund owned (or is deemed to have
owned) for one year or less will be taxable as ordinary income.

For taxable years beginning before January 1, 2011, distributions of investment
income designated by a Fund as derived from "qualified dividend income" will be
taxed in the hands of individuals at the rates applicable to long-term capital
gain, provided holding period and other requirements are met at both the
shareholder and Fund level.





In order for some portion of the dividends received by a Fund shareholder to be
"qualified dividend income," a Fund must meet holding period and other
requirements with respect to some portion of the dividend paying stocks in its
portfolio and the Fund shareholder must meet holding period and other
requirements with respect to the Fund's shares. A dividend will not be treated
as qualified dividend income (at either the fund or shareholder level) (1) if
the dividend is received with respect to any share of stock held for fewer than
61 days during the 121-day period beginning on the date which is 60 days before
the date on which such share becomes ex-dividend with respect to such dividend
(or, in the case of certain preferred stock, 91 days during the 181-day period
beginning 90 days before such date), (2) to the extent that the recipient is
under an obligation (whether pursuant to a short sale or otherwise) to make
related payments with respect to positions in substantially similar or related
property, (3) if the recipient elects to have the dividend income treated as
investment income for purposes of the limitation on deductibility of investment
interest, or (4) if the dividend is received from a foreign corporation that is
(a) not eligible for the benefits of a comprehensive income tax treaty with the
United States (with the exception of dividends paid on stock of such a foreign
corporation readily tradable on an established securities market in the United
States) or (b) treated as a passive foreign investment company.

In general, distributions of investment income designated by a Fund as derived
from qualified dividend income will be treated as qualified dividend income by a
shareholder taxed as an individual provided the shareholder meets the holding
period and other requirements described above with respect to the Fund's shares.
If the aggregate qualified dividends received by a Fund during any taxable year
are 95% or more of its gross income, then 100% of the Fund's dividends (other
than dividends properly designated as Capital Gain Dividends) will be eligible
to be treated as qualified dividend income. For this purpose, the only gain
included in the term "gross income" is the excess of net short-term capital gain
over net long-term capital loss.

If a Fund receives dividends from an Underlying DWS Fund that qualifies as a RIC
or other RIC, which may include an ETF (each such Underlying DWS Fund and other
RIC in which a Fund may invest, an "Underlying RIC"), and the Underlying RIC
designates such dividends as qualified dividend income, then the Fund is
permitted in turn to designate that portion of its distributions derived from
those dividends as qualified dividend income, provided the Fund meets holding
period and other requirements with respect to shares of the Underlying RIC.





A portion of the income distributions of each Fund attributable to dividends
received from domestic corporations may be eligible for the 70% deduction for
dividends received by corporations. Shareholders will be informed of the portion
of dividends which so qualify. The dividends-received deduction is reduced to
the extent the shares of a Fund with respect to which the dividends are received
are treated as debt-financed under federal income tax law. The
dividends-received deduction is eliminated (i) if either those shares or the
shares of a Fund are deemed to have been held by the Fund or the applicable
corporate shareholder, as the case may be, for less than 46 days during the
91-day period beginning 45 days before the shares become ex-dividend (or, in the
case of certain preferred stock, 91 days during the 181-day period beginning 90
days before such date), or (ii) to the extent that the Fund is under an
obligation (pursuant to a short sale or otherwise) to make related payments with
respect to positions in substantially similar or related property.

If a Fund receives dividends from an Underlying RIC, and the Underlying RIC
designates such dividends as eligible for the dividends-received deduction, then
the Fund is permitted, in turn, to designate a portion of its distributions as
eligible for the dividends-received deduction, provided that the Fund meets the
holding period and other requirements with respect to shares of the Underlying
RIC.

Transaction in the Funds' Shares. The sale, exchange or redemption of shares of
a Fund will generally give rise to a gain or loss. In general, any gain or loss
realized upon a taxable disposition of shares will be treated as long-term
capital gain or loss if the shares have been held (or are treated as being held)
for more than 12 months. Otherwise, the gain or loss on the taxable disposition
of shares of a Fund will be treated as short-term capital gain or loss. However,
any loss realized upon a taxable disposition of shares held (or treated as being
held) for six months or less will be treated as long-term, rather than
short-term, to the extent of any Capital Gain Dividends received (or deemed
received) by the shareholder with respect to the shares. All or a portion of any
loss realized upon a taxable disposition of shares of a Fund will be disallowed
if other substantially identical shares of the Fund are purchased within 30 days
before or after the disposition. In such a case, the basis of the newly
purchased shares will be adjusted to reflect the disallowed loss.

Fund-of-Funds Structure. The use of a fund-of-funds structure could affect the
amount, timing, and character of distributions from a Fund, and, therefore, may
increase the amount of taxes payable by shareholders. Because each Fund intends
to invest all or substantially all of its assets in shares of Underlying RICs,
its distributable income and gains will normally consist primarily of
distributions from the Underlying RICs and gains and losses on the disposition
of shares of Underlying RICs. To the extent that an Underlying RIC realizes net
losses on its investments for a given taxable year, a Fund will not be able to
recognize its shares of those losses (so as to offset distributions of net
income or capital gains from other Underlying RICs) until it disposes of shares
of the Underlying RIC. Moreover, even when a Fund does make such a disposition,
a portion of its loss may be recognized as a long-term capital loss, which will
not be treated as favorably for federal income tax purposes as a short-term
capital loss or an ordinary deduction. In particular, each Fund will not be able
to offset any capital losses from its dispositions of Underlying RIC shares
against its ordinary income (including distributions of any net short-term
capital gains realized by an Underlying RIC).

In addition, in certain circumstances, the "wash sale" rules under Section 1091
of the Code may apply to a Fund's sales of shares of an Underlying RIC that have
generated losses. A wash sale occurs if shares of an Underlying RIC are sold by
a Fund at a loss and the Fund acquires additional shares of that same Underlying
RIC 30 days before or after the date of the sale. The wash-sale rules could
defer losses in the Fund's hands on sales of the Underlying RIC shares (to the
extent such sales are wash sales) for extended (and, in certain cases,
potentially indefinite) periods of time. In addition to the wash sale rules,
certain related-party transaction rules may cause any losses generated by a Fund
on the sale of an Underlying DWS Fund's shares to be deferred (or, in some case,
permanently disallowed) if the Fund and the Underlying DWS Fund are part of the
same "controlled group" (as defined in Section 267(f) of the Code) at the time
the loss is recognized. For instance, for these purposes, the Fund and an
Underlying DWS Fund will be part of the same controlled group if the Fund owns
more than 50% of the total outstanding voting securities of the Underlying DWS
Fund.

As a result of the foregoing rules, and certain other special rules, it is
possible that the amounts of net investment income and net capital gains that a
Fund will be required to distribute to shareholders will be greater than such
amounts would have been had the Fund invested directly in the securities held by
the Underlying RICs, rather than investing in shares of the Underlying RICs. For
similar reasons, the character of distributions from a Fund (e.g., long-term
capital gain, exempt interest, eligibility for dividends-received deduction,
etc.) will not necessarily be the same as it would have been had the Fund
invested directly in the securities held by the Underlying RICs.





Depending on a Fund's percentage ownership in an Underlying RIC both before and
after a redemption of Underlying RIC shares, the Fund's redemption of shares of
such Underlying RIC may cause the Fund to be treated as receiving a dividend
taxable as ordinary income on the full amount of the distribution instead of
receiving capital gain income on the shares of the Underlying RIC. This would be
the case where a Fund holds a significant interest in an Underlying RIC and
redeems only a small portion of such interest. It is possible that such a
dividend would qualify as "qualified dividend income" taxable to individual
shareholders at long-term capital gain rates; otherwise, it would be taxable as
ordinary income.

Securities Lending. To the extent that a Fund makes a distribution of income
received by the Fund in lieu of dividends (a "substitute payment") with respect
to securities on loan pursuant to a securities lending transaction, such income
will not constitute qualified dividend income to individual shareholders and
will not be eligible for the dividends-received deduction for corporate
shareholders.

Taxation of Certain Investments Made By Underlying RICs. Some debt obligations
with a fixed maturity date of more than one year from the date of issuance (and
zero-coupon debt obligations with a fixed maturity date of more than one year
from the date of issuance) that are acquired by an Underlying RIC will be
treated as debt obligations that are issued originally at a discount. Generally,
the amount of the original issue discount ("OID") is treated as interest income
and is included in taxable income over the term of the debt security, even
though payment of that amount is not received until a later time, usually when
the debt security matures. This OID imputed income will comprise a part of the
investment company taxable income of the Underlying RIC, which must be
distributed to shareholders in order to maintain the qualification of the
Underlying RIC as a RIC and to avoid federal income and/or excise tax at the
Underlying RIC level. In addition, payment-in-kind securities will give rise to
income which is required to be distributed and is taxable even though an
Underlying RIC holding the security receives no interest payment in cash on the
security during the year.

Some debt obligations with a fixed maturity date of more than one year from the
date of issuance that are acquired by an Underlying RIC in the secondary market
may be treated as having market discount. Generally, any gain recognized on the
disposition of, and any partial payment of principal on, a debt security having
market discount is treated as ordinary income to the extent the gain, or
principal payment, does not exceed the "accrued market discount" on such debt
security. Market discount generally accrues in equal daily installments. The
Underlying RIC could make one or more of the elections applicable to debt
obligations having market discount, which could affect the character and timing
of recognition of income. See the statement of additional information for the
relevant Underlying RIC for more information.

Some debt obligations with a fixed maturity date of one year or less from the
date of issuance that are acquired by an Underlying RIC may be treated as having
acquisition discount or OID. Generally, an Underlying RIC will be required to
include the acquisition discount or OID in income over the term of the debt
security, even though payment of that amount is not received until a later time,
usually when the debt security matures. An Underlying RIC may make one or more
of the elections applicable to debt obligations having acquisition discount or
OID, which could affect the character and timing of recognition of income.

In addition, if an Underlying RIC invests in high yield original issue discount
obligations issued by corporations (including tax-exempt obligations), a portion
of the OID accruing on the obligation may be treated as taxable dividend income.
In such event, dividends of investment company taxable income received from an
Underlying RIC by its shareholders, including a Fund, to the extent attributable
to such portion of accrued original issue discount, would be taxable. If the
Underlying RIC designates such dividends as eligible for the dividends-received
deduction, then the Fund is permitted, in turn, to designate a portion of its
distributions as eligible for the dividends-received deduction.

If an Underlying RIC holds the foregoing kinds of securities, it may be required
to pay out as an income distribution each year an amount which is greater than
the total amount of cash interest the Underlying RIC actually received. Such
distributions may be made from the cash assets of the Underlying RIC or by
liquidation of portfolio securities, if necessary. An Underlying RIC may realize
gains or losses from such liquidations. In the event an Underlying RIC realizes
net capital gains from such transactions, a Fund investing in such an Underlying
RIC (and, in turn, that Fund's shareholders) may receive a larger capital gain
distribution than it (they) would in the absence of such transactions.

A portion of the interest paid or accrued on certain high yield discount
obligations owned by an Underlying RIC may not (and interest paid on debt
obligations, if any, that are considered for tax purposes to be payable in the
equity of the issuer or a related party will not) be deductible to the issuer.
This may affect the cash flow of the issuer. If a portion of the interest paid
or accrued on certain high yield discount obligations is not deductible, that
portion will be treated as a dividend for purposes of the corporate
dividends-received deduction. In such cases, if the issuer of the high yield
discount obligations is a domestic corporation, dividend payments by an
Underlying RIC may be eligible for the dividends-received deduction to the
extent of the deemed dividend portion of such accrued interest. As described
above, the Fund investing in such Underlying RIC may be permitted in turn to
designate a portion of its distributions as eligible for the dividends-received
deduction.

An Underlying RIC may invest in debt obligations that are in the lowest rating
categories or are unrated, including debt obligations of issuers not currently
paying interest or who are in default. Investments in debt obligations that are
at risk of or in default present special tax issues for an Underlying RIC. Tax
rules are not entirely clear about issues such as whether and to what extent an
Underlying RIC should recognize market discount on a debt obligation and when an
Underlying RIC may cease to accrue interest, OID or market discount, when and to
what extent an Underlying RIC may take deductions for bad debts or worthless
securities and how an Underlying RIC should allocate payments received on
obligations in default between principal and income.

An Underlying RIC's transactions in foreign currencies, foreign
currency-denominated debt obligations and certain foreign currency options,
futures contracts and forward contracts (and similar instruments) may give rise
to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned.

If an Underlying RIC engages in hedging and related transactions, including
hedging transactions in options, foreign currencies, futures contracts,
straddles, or other similar transactions, it generally will be subject to
special tax rules (including constructive sale, mark-to-market, straddle, wash
sale, short sale and other rules), the effect of which may be to accelerate
income to the Underlying RIC, defer losses to the Underlying RIC, cause
adjustments in the holding periods of the Underlying RIC's securities, convert
long-term capital gains into short-term capital gains or convert short-term
capital losses into long-term capital losses. These rules could therefore affect
the amount, timing and character of distributions to a Fund investing in the
Underlying RIC (and, in turn, to that Fund's shareholders).

Foreign withholding or other foreign taxes with respect to income (possibly
including, in some cases, capital gains) on certain foreign securities held by
an Underlying RIC may occur. These taxes may be reduced or eliminated under the
terms of an applicable US income tax treaty. Under current law, a Fund cannot
pass through to its shareholders foreign tax credits borne in respect of foreign
securities income earned by an Underlying RIC. The Funds are permitted to elect
to pass through to their shareholders foreign income taxes it pays only if they
directly hold more than 50% of its assets in foreign stock and securities at the
close of its taxable year. Foreign securities held indirectly through an
Underlying RIC do not contribute to this 50% threshold. As a result, the Funds
will not be eligible to pass through to shareholders their proportionate share
of any foreign taxes paid, with the result that shareholders will not be able to
include in income, and will not be entitled to take any credits or deductions
for such foreign taxes.

Equity investments by an Underlying RIC in certain "passive foreign investment
companies" ("PFICs") could potentially subject the Underlying RIC to a US
federal income tax (including interest charges) on distributions received from
the company or on proceeds received from the disposition of shares in the
company, which tax cannot be eliminated by making distributions to Underlying
RIC shareholders. However, the Underlying RIC could elect to avoid the
imposition of that tax. For example, the Underlying RIC may elect to treat a
PFIC as a "qualified electing fund" (a "QEF election"), in which case the
Underlying RIC would be required to include its share of the company's income
and net capital gains annually, regardless of whether it receives any
distribution from the company. The Underlying RIC could also may make an
election to mark the gains (and to a limited extent losses) in such holdings "to
the market" as though it had sold and repurchased its holdings in those PFICs on
the last day of the Underlying RIC's taxable year. Such gains and losses are
treated as ordinary income and loss. The QEF and mark-to-market elections could
accelerate the recognition of income (without the receipt of cash) and increase
the amount required to be distributed by the Underlying RIC to avoid taxation.
Making either of these elections therefore may require the Underlying RIC to
liquidate other investments (including when it is not advantageous to do so) to
meet its distribution requirement, which also may accelerate the recognition of
gain and affect the Underlying RIC's total return. The Funds will not be
entitled to make such elections with respect to indirect PFIC investments
through Underlying RICs; rather, the Underlying RICs directly investing in PFICs
would decide whether to make such elections. Dividends paid by PFICs will not be
eligible to be treated as "qualified dividend income."





An Underlying RIC may invest in REITs. Investments in REIT equity securities may
result in an Underlying RIC's receipt of cash in excess of the REIT's earnings;
if the Underlying RIC distributes these amounts, these distributions could
constitute a return of capital to the Underlying RIC for federal income tax
purposes. Dividends received by an Underlying RIC from a REIT generally will not
constitute qualified dividend income. In addition, any investments in REIT
equity securities may require an Underlying RIC to accrue and distribute income
not yet received. To generate sufficient cash to make the requisite
distributions, the Underlying RIC may be required to sell securities in its
portfolio (including when it is not advantageous to do so) that it otherwise
would have continued to hold. Dividends received by the Underlying RIC from a
REIT generally will not constitute qualified dividend income.

Excess Inclusion Income. Under a notice issued by the IRS in October 2006 and
Treasury regulations that have yet to be issued but may apply retroactively, a
portion of a Fund's income allocated to the Fund from an Underlying RIC or other
pass-through entity that is attributable to a residual interest in a real estate
mortgage investment conduit ("REMIC") or an equity interest in a taxable
mortgage pool ("TMP) (referred to in the Code as an "excess inclusion") will be
subject to federal income tax in all events. This notice also provides, and the
regulations are expected to provide, that excess inclusion income of a RIC will
be allocated to shareholders of the RIC in proportion to the dividends received
by such shareholders, with the same consequences as if the shareholders held the
related interest directly. As a result, a Fund investing indirectly in such
interests through an Underlying RIC may not be a suitable investment for
charitable remainder trusts, as noted below.

In general, excess inclusion income allocated to Fund shareholders (i) cannot be
offset by net operating losses (subject to a limited exception for certain
thrift institutions), (ii) will constitute unrelated business taxable income
("UBTI") to entities (including a qualified pension plan, an individual
retirement account, a 401(k) plan, a Keogh plan or other tax-exempt entity)
subject to tax on UBTI, thereby potentially requiring such an entity that is
allocated excess inclusion income, and otherwise might not be required to file a
tax return, to file a tax return and pay tax on such income, and (iii) in the
case of a non-US shareholder, will not qualify for any reduction in US federal
withholding tax.

Tax-Exempt Shareholders. Under current law, the Funds serve to "block" (that is,
prevent the attribution to shareholders of) UBTI from being realized by
tax-exempt shareholders. Notwithstanding this "blocking" effect, a tax-exempt
shareholder could realize UBTI by virtue of its investment in a Fund if shares
in the Fund constitute debt-financed property in the hands of the tax-exempt
shareholder within the meaning of Code Section 514(b).

A tax-exempt shareholder may also recognize UBTI if a Fund recognizes "excess
inclusion income" derived from indirect investments in residual interests in
REMICs or equity interests in TMPs through Underlying RICs, if the amount of
such income recognized by the Fund exceeds the Fund's investment company taxable
income (after taking into account deductions for dividends paid by the Fund).
Furthermore, any investment in residual interests of a collateralized mortgage
obligation (a "CMO") that has elected to be treated as a REMIC can create
complex tax consequences, especially if a RIC has state or local governments or
other tax-exempt organizations as shareholders.

In addition, special tax consequences apply to charitable remainder trusts
("CRTs") that invest in RICs that invest directly or indirectly in residual
interests in REMICs or equity interests in TMPs. Under legislation enacted in
December 2006, a CRT (as defined in section 664 of the Code) that realizes any
UBTI for a taxable year must pay an excise tax annually of an amount equal to
such UBTI. Under IRS guidance issued in October 2006, a CRT will not recognize
UBTI as a result of investing in a Fund that directly or indirectly (through an
Underlying RIC) recognizes "excess inclusion income." Rather, if at any time
during any taxable year a CRT (or one of certain other tax-exempt shareholders,
such as the United States, a state or political subdivision, or an agency or
instrumentality thereof, and certain energy cooperatives) is a record holder of
a share in a Fund that directly or indirectly (through an Underlying RIC)
recognizes "excess inclusion income," then the Fund will be subject to a tax on
that portion of its "excess inclusion income" for the taxable year that is
allocable to such shareholders at the highest federal corporate income tax rate.
The extent to which this IRS guidance remains applicable in light of the
December 2006 legislation is unclear. To the extent permitted under the 1940
Act, each Fund may elect to specially allocate any such tax to the applicable
CRT, or other shareholder, and thus reduce such shareholder's distributions for
the year by the amount of the tax that relates to such shareholder's interest in
a Fund. The Funds have not yet determined whether such an election will be made.
CRTs and other tax-exempt investors are urged to consult their tax advisors
concerning the consequences of investing in the Funds.

Backup Withholding. Under the backup withholding provisions of the Code,
redemption proceeds as well as distributions may be subject to federal income
tax withholding for certain individual shareholders, if (i) the shareholder
fails to furnish a Fund with a correct "taxpayer identification number" (TIN),
(ii) the shareholder underreports dividend or interest income, or (iii) the
shareholder has not certified to a Fund that withholding does not apply. The
backup withholding rate is 28% for amounts paid through 2010. This rate will
expire and the backup withholding rate will be 31% for amounts paid after
December 31, 2010, unless Congress enacts tax legislation providing otherwise.

Backup withholding is not an additional tax. Any amounts withheld may be
credited against the shareholder's US federal income tax liability, provided the
appropriate information is furnished to the IRS.

Non-US Shareholders. Distributions properly designated as Capital Gain Dividends
and exempt-interest dividends generally will not be subject to withholding of
federal income tax. In general, dividends other than Capital Gain Dividends and
exempt-interest dividends paid by the Funds to a shareholder that is not a "US
person" within the meaning of the Code (a "foreign person") are subject to
withholding of US federal income tax at a rate of 30% (or lower applicable
treaty rate) even if they are funded by income or gains (such as portfolio
interest, short-term capital gains, or foreign-source dividend and interest
income) that, if paid to a foreign person directly, would not be subject to
withholding. However, effective for taxable years of the Funds beginning before
January 1, 2010, the Funds are not required to withhold any amounts (i) with
respect to distributions (other than distributions to a foreign person (w) that
has not provided a satisfactory statement that the beneficial owner is not a US
person, (x) to the extent that the dividend is attributable to certain interest
on an obligation if the foreign person is the issuer or is a 10% shareholder of
the issuer, (y) that is within certain foreign countries that have inadequate
information exchange with the United States, or (z) to the extent the dividend
is attributable to interest paid by a person that is a related person of the
foreign person and the foreign person is a controlled foreign corporation) from
US-source interest income of types similar to those not subject to US federal
income tax if earned directly by an individual foreign person, to the extent
such distributions are properly designated by the Funds ("interest-related
dividends"), and (ii) with respect to distributions (other than (a)
distributions to an individual foreign person who is present in the United
States for a period or periods aggregating 183 days or more during the year of
the distribution and (b) distributions subject to special rules regarding the
disposition of US real property interests ("USRPIs")) of net short-term capital
gains in excess of net long-term capital losses to the extent such distributions
are properly designated by the Funds ("short-term capital gain dividends").
Depending on the circumstances, the Funds may make designations of
interest-related and/or short-term capital gain dividends with respect to all,
some or none of its potentially eligible dividends and/or treat such dividends,
in whole or in part, as ineligible for these exemptions from withholding. Absent
legislation extending these exemptions for taxable years beginning on or after
January 1, 2010, these special withholding exemptions for interest-related and
short-term capital gain dividends will expire and these dividends generally will
be subject to withholding as described above. It is currently unclear whether
Congress will extend the exemptions for tax years beginning on or after January
1, 2010.

In the case of shares held through an intermediary, the intermediary may
withhold even if the Funds make a designation with respect to a payment. Foreign
persons should contact their intermediaries regarding the application of these
rules to their accounts.

A beneficial holder of shares who is a foreign person is not, in general,
subject to US federal income tax on gains (and is not allowed a deduction for
losses) realized on the sale of shares of the Funds or on Capital Gain Dividends
unless (i) such gain or dividend is effectively connected with the conduct of a
trade or business carried on by such holder within the United States or (ii) in
the case of an individual holder, the holder is present in the United States for
a period or periods aggregating 183 days or more during the year of the sale or
the receipt of the Capital Gain Dividend and certain other conditions are met or
(iii) the shares constitute USRPIs or the Capital Gain Dividends are
attributable to gains from the sale or exchange of USRPIs in accordance with
certain special rules.

Special rules apply to distributions to certain foreign persons from a RIC that
is either a "U.S. real property holding corporation" ("USRPHC") or would be a
USRPHC absent exclusions from USRPI treatment for interests in domestically
controlled REITs and RICs and not-greater-than-5% interests in publicly traded
classes of stock in REITs and RICs. Additionally, special rules apply to the
sale of shares in a RIC that is a USRPHC. Very generally, a USRPHC is a domestic
corporation that holds USRPIs -- USRPIs are defined generally as any interest in
U.S. real property or any equity interest in a USRPHC -- the fair market value
of which equals or exceeds 50% of the sum of the fair market values of the
corporation's USRPIs, interests in real property located outside the United
States and other assets. The Funds generally do not expect that they will be
USRPHCs or would be USRPHCs but for the operation of these exceptions, and thus
do not expect these special tax rules to apply.

In order to qualify for any exemptions from withholding described above or for
lower withholding tax rates under income tax treaties, or to establish an
exemption from backup withholding, the foreign investor must comply with special
certification and filing requirements relating to its non-US status (including,
in general, furnishing an IRS Form W-8BEN or substitute form). Foreign investors
in a Fund should consult their tax advisors in this regard.

If a shareholder is eligible for the benefits of a tax treaty, any effectively
connected income or gain will generally be subject to US federal income tax on a
net basis if it is also attributable to a permanent establishment maintained by
the shareholder in the United States.

A beneficial holder of shares who is a foreign person may be subject to state
and local tax and to the US federal estate tax in addition to the federal tax on
income referred to above.

Tax Shelter Reporting Regulations. Under Treasury regulations, if a shareholder
recognizes a loss with respect to a Fund's shares of $2 million or more for an
individual shareholder or $10 million or more for a corporate shareholder, the
shareholder must file with the IRS a disclosure statement on Form 8886. Direct
shareholders of Fund securities are in many cases excepted from this reporting
requirement, but under current guidance, shareholders of a RIC are not excepted.
Future guidance may extend the current exception from this reporting requirement
to shareholders of most or all RICs. The fact that a loss is reportable under
these regulations does not affect the legal determination of whether the
taxpayer's treatment of the loss is proper. Shareholders should consult their
tax advisors to determine the applicability of these regulations in light of
their individual circumstances.

Other Considerations. Shareholders of a Fund may be subject to state and local
taxes on distributions received from a Fund and on redemptions of a Fund's
shares.

Special tax rules apply to investments though defined contribution plans and
other tax-qualified plans. Shareholders should consult their tax advisor to
determine the suitability of shares of a fund as an investment through such
plans and the precise effect of an investment on their particular tax situation.

The US federal income tax discussion set forth above is for general information
only. Investors are advised to consult their own tax advisors with respect to
their own circumstances regarding the above-referenced federal income taxation
rules and with respect to other federal, state, local or foreign tax
consequences to them of an investment in shares of a Fund.


                                 NET ASSET VALUE

The net asset value of shares of each Fund is computed as of the close of
regular trading on the New York Stock Exchange (the "Exchange") on each day the
Exchange is open for trading (the "Value Time"). The Exchange is scheduled to be
closed on the following holidays: New Year's Day, Dr. Martin Luther King, Jr.
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas, and on the preceding Friday or subsequent Monday
when one of these holidays falls on a Saturday or Sunday, respectively. Net
asset value per share is determined separately for each class of shares by
dividing the value of the total assets of a Fund, less all liabilities
attributable to that class, by the total number of shares of that class
outstanding. The per share net asset value may be lower for certain classes of a
Fund because of higher expenses borne by these classes.

The net asset value of each Underlying DWS Fund is determined based upon the
nature of the securities as set forth in the prospectus and statement of
additional information of such Underlying DWS Fund. Shares of each Underlying
DWS Fund in which a Fund may invest are valued at the net asset value per share
of each Underlying DWS Fund as of the close of regular trading on the Exchange
on each day the Exchange is open for trading. The net asset value per share of
the Underlying DWS Funds will be calculated and reported to a Fund by each
Underlying DWS Fund's accounting agent. Short-term securities with a remaining
maturity of sixty days or less are valued by the amortized cost method.

If market quotations for a portfolio asset are not readily available or the
value of a portfolio asset as determined in accordance with Board approved
procedures does not represent the fair market value of the portfolio asset, the
value of the portfolio asset is taken to be an amount which, in the opinion of
the Fund's Pricing Committee (or, in some cases, the Board's Valuation
Committee), represents fair market value. The value of other portfolio holdings
owned by the Fund is determined in a manner which is intended to fairly reflect
the fair market value of the asset on the valuation date, based on valuation
procedures adopted by the Fund's Board and overseen primarily by the Fund's
Pricing Committee.

                              TRUSTEES AND OFFICERS


The following table presents certain information regarding the Board Members of
the Trust. Each Board Member's year of birth is set forth in parentheses after
his or her name. Unless otherwise noted, (i) each Board Member has engaged in
the principal occupation(s) noted in the table for at least the most recent five
years, although not necessarily in the same capacity, and (ii) the address of
each Board Member that is not an "interested person" (as defined in the 1940
Act) of the Trust or the Advisor (each, an "Independent Board Member") is c/o
Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33904. The term of office for
each Board Member is until the election and qualification of a successor, or
until such Board Member sooner dies, resigns, is removed or as otherwise
provided in the governing documents of the Trust. Because the Funds do not hold
an annual meeting of shareholders, each Board Member will hold office for an
indeterminate period. The Board Members may also serve in similar capacities
with other funds in the DWS fund complex.

Independent Board Members

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
 Name, Year of Birth, Position                                                                   Number of Funds
 with the Trust and Length of     Business Experience and                                        in DWS Fund
 Time Served(1)                   Directorships During the Past 5 Years                          Complex Overseen
--------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                                   <C>
Dawn-Marie Driscoll (1946)        President, Driscoll Associates (consulting firm); Executive           133
Chairperson since 2004,(2) and    Fellow, Center for Business Ethics, Bentley College;
Board Member since 1987           formerly: Partner, Palmer & Dodge (1988-1990); Vice President
                                  of Corporate Affairs and General Counsel, Filene's
                                  (1978-1988); Directorships: Trustee of 8 open-end mutual
                                  funds managed by Sun Capital Advisers, Inc. (since 2007);
                                  Director of ICI Mutual Insurance Company (since 2007);
                                  Advisory Board, Center for Business Ethics, Bentley College;
                                  Trustee, Southwest Florida Community Foundation (charitable
                                  organization); former Directorships: Investment Company
                                  Institute (audit, executive, nominating committees) and
                                  Independent Directors Council (governance, executive
                                  committees)
--------------------------------------------------------------------------------------------------------------------
Paul K. Freeman                   Consultant, World Bank/Inter-American Development Bank;               133
(1950)                            formerly: Project Leader, International Institute for Applied
Vice Chairperson since 2008, and  Systems Analysis (1998-2001); Chief Executive Officer, The
Board Member since 1993           Eric Group, Inc. (environmental insurance) (1986-1998)
--------------------------------------------------------------------------------------------------------------------
John W. Ballantine (1946)         Retired; formerly: Executive Vice President and Chief Risk            133
Board Member since 1999           Management Officer, First Chicago NBD Corporation/The First
                                  National Bank of Chicago (1996-1998); Executive Vice
                                  President and Head of International Banking (1995-1996);
                                  Directorships: Healthways Inc. (provider of disease and care
                                  management services); Portland General Electric (utility
                                  company); Stockwell Capital Investments PLC (private equity);
                                  former Directorships: First Oak Brook Bancshares, Inc. and
                                  Oak Brook Bank
--------------------------------------------------------------------------------------------------------------------
 Henry P. Becton, Jr. (1943)      Vice Chair, WGBH Educational Foundation; Directorships:               133
 Board Member since               Association of Public Television Stations; Becton Dickinson
 1990                             and Company(3) (medical technology company); Belo
                                  Corporation(3) (media company); Boston Museum of Science;
                                  Public Radio International; former Directorships: American
                                  Public Television; Concord Academy; New England Aquarium;
                                  Mass. Corporation for Educational Telecommunications;
                                  Committee for Economic Development; Public Broadcasting
                                  Service
--------------------------------------------------------------------------------------------------------------------
Keith R. Fox (1954)               Managing General Partner, Exeter Capital Partners (a series           133
Board Member since                of private equity funds); Directorships: Progressive Holding
1996                              Corporation (kitchen goods importer and distributor); Natural
                                  History, Inc. (magazine publisher); Box Top Media Inc.
                                  (advertising); The Kennel Shop (retailer)
--------------------------------------------------------------------------------------------------------------------
Kenneth C. Froewiss               Clinical Professor of Finance, NYU Stern School of Business           133
(1945)                            (1997-present); Member, Finance Committee, Association for
Board Member since                Asian Studies (2002-present); Director, Mitsui Sumitomo
2001                              Insurance Group (US) (2004-present); prior thereto, Managing
                                  Director, J.P. Morgan (investment banking firm) (until 1996)
--------------------------------------------------------------------------------------------------------------------
Richard J. Herring                Jacob Safra Professor of International Banking and Professor,         133
(1946)                            Finance Department, The Wharton School, University of
Board Member since                Pennsylvania (since July 1972); Co-Director, Wharton
1990                              Financial Institutions Center (since July 2000); Director,
                                  Japan Equity Fund, Inc. (since September 2007), Thai Capital
                                  Fund, Inc. (since September 2007), Singapore Fund, Inc.
                                  (since September 2007); formerly: Vice Dean and Director,
                                  Wharton Undergraduate Division (July 1995-June 2000);
                                  Director, Lauder Institute of International Management
                                  Studies (July 2000-June 2006)
--------------------------------------------------------------------------------------------------------------------
William McClayton (1944)          Managing Director, Diamond Management & Technology                    133
Board Member since 2004           Consultants, Inc. (global management consulting firm)
                                  (2001-present); Directorship: Board of Managers, YMCA of
                                  Metropolitan Chicago; formerly: Senior Partner, Arthur
                                  Andersen LLP (accounting) (1966-2001); Trustee, Ravinia
                                  Festival
--------------------------------------------------------------------------------------------------------------------
Rebecca W. Rimel                  President and Chief Executive Officer, The Pew Charitable             133
(1951)                            Trusts (charitable organization) (1994 to present); Trustee,
Board Member since                Thomas Jefferson Foundation (charitable organization) (1994
1995                              to present); Trustee, Executive Committee, Philadelphia
                                  Chamber of Commerce (2001 to 2007); Trustee, Pro Publica
                                  (2007-present) (charitable organization); formerly: Executive
                                  Vice President, The Glenmede Trust Company (investment trust
                                  and wealth management) (1983 to 2004); Board Member, Investor
                                  Education (charitable organization) (2004-2005); Director,
                                  Viasys Health Care(3) (January 2007-June 2007)
--------------------------------------------------------------------------------------------------------------------
William N. Searcy, Jr.            Private investor since October 2003; Trustee of 8 open-end            133
(1946)                            mutual funds managed by Sun Capital Advisers, Inc. (since
Board Member since                October 1998); formerly: Pension & Savings Trust Officer,
1993                              Sprint Corporation(3) (telecommunications) (November
                                  1989-September 2003)
--------------------------------------------------------------------------------------------------------------------
Jean Gleason Stromberg            Retired; formerly: Consultant (1997-2001); Director, US               133
(1943)                            Government Accountability Office (1996-1997); Partner,
Board Member since                Fulbright & Jaworski, L.L.P. (law firm) (1978-1996);
1997                              Directorships: The William and Flora Hewlett Foundation;
                                  Service Source, Inc.; former Directorships: Mutual Fund
                                  Directors Forum (2002-2004), American Bar Retirement
                                  Association (funding vehicle for retirement plans) (1987-1990
                                  and 1994-1996)
--------------------------------------------------------------------------------------------------------------------
Robert H. Wadsworth (1940)        President, Robert H. Wadsworth & Associates, Inc. (consulting         136
Board Member since 1999           firm) (1983 to present); Director, The Phoenix Boys Choir
                                  Association
--------------------------------------------------------------------------------------------------------------------

Interested Board Member

--------------------------------------------------------------------------------------------------------------------
 Name, Year of Birth, Position    Business Experience and                                        Number of Funds
 with the Trust and Length of                                                                    in DWS Fund
 Time Served(1)                   Directorships During the Past 5 Years                          Complex Overseen
--------------------------------------------------------------------------------------------------------------------
 Axel Schwarzer(4)                Managing Director(5), Deutsche Asset Management; Head of              133
 (1958)                           Deutsche Asset Management Americas; CEO of DWS Investments;
 Board Member since               formerly: board member of DWS Investments, Germany
 2006                             (1999-2005); Head of Sales and Product Management for the
                                  Retail and Private Banking Division of Deutsche Bank in
                                  Germany (1997-1999); various strategic and operational
                                  positions for Deutsche Bank Germany Retail and Private
                                  Banking Division in the field of investment funds, tax driven
                                  instruments and asset management for corporates (1989-1996)
--------------------------------------------------------------------------------------------------------------------

Officers(6)

--------------------------------------------------------------------------------------------------------------------
 Name, Year of Birth, Position
 with the Trust and Length of     Business Experience and
 Time Served(7)                   Directorships During the Past 5 Years
--------------------------------------------------------------------------------------------------------------------
 Michael G. Clark(8) (1965)       Managing Director(5), Deutsche Asset Management (2006-present); President of
 President, 2006-present          DWS family of funds; Director, ICI Mutual Insurance Company (since
                                  October 2007); formerly: Director of Fund Board Relations (2004-2006) and
                                  Director of Product Development (2000-2004), Merrill Lynch Investment Managers;
                                  Senior Vice President Operations, Merrill Lynch Asset Management (1999-2000)
--------------------------------------------------------------------------------------------------------------------
 John Millette(9) (1962)          Director(5), Deutsche Asset Management
 Vice President and Secretary,
 1999-present
--------------------------------------------------------------------------------------------------------------------
 Paul H. Schubert(8) (1963)       Managing Director(5), Deutsche Asset Management (since July 2004); formerly:
 Chief Financial Officer,         Executive Director, Head of Mutual Fund Services and Treasurer for UBS Family
 2004-present                     of Funds (1998-2004); Vice President and Director of Mutual Fund Finance at UBS
 Treasurer, 2005-present          Global Asset Management (1994-1998)
--------------------------------------------------------------------------------------------------------------------
 Patricia DeFilippis(10) (1963)   Vice President, Deutsche Asset Management (since June 2005); formerly: Counsel,
 Assistant Secretary,             New York Life Investment Management LLC (2003-2005); legal associate, Lord,
 2005-present                     Abbett & Co. LLC (1998-2003)
--------------------------------------------------------------------------------------------------------------------
 Elisa D. Metzger(10)  (1962)     Director(5), Deutsche Asset Management (since September 2005); formerly:
 Assistant Secretary,             Counsel, Morrison and Foerster LLP (1999-2005)
 2005-present
--------------------------------------------------------------------------------------------------------------------
 Caroline Pearson(9) (1962)       Managing Director(5), Deutsche Asset Management
 Assistant Secretary,
 1997-present
--------------------------------------------------------------------------------------------------------------------
 Paul Antosca(9)                  Director(5), Deutsche Asset Management (since 2006); formerly: Vice President,
 (1957)                           The Manufacturers Life Insurance Company (U.S.A.) (1990-2006)
 Assistant Treasurer,
 2007-present
--------------------------------------------------------------------------------------------------------------------
 Jack Clark (9)                   Director(5), Deutsche Asset Management (since 2007); formerly: Vice President,
 (1967)                           State Street Corporation (2002-2007)
 Assistant Treasurer,
 2007-present
--------------------------------------------------------------------------------------------------------------------
 Kathleen Sullivan D'Eramo(9)     Director(5), Deutsche Asset Management
 (1957)
 Assistant Treasurer,
 2003-present
--------------------------------------------------------------------------------------------------------------------
 Diane Kenneally(9)               Director(5), Deutsche Asset Management
 (1966)
 Assistant Treasurer,
 2007-present
--------------------------------------------------------------------------------------------------------------------
 Jason Vazquez(10) (1972)         Vice President, Deutsche Asset Management (since 2006); formerly: AML
 Anti-Money Laundering            Operations Manager for Bear Stearns (2004-2006); Supervising Compliance
 Compliance Officer,              Principal and Operations Manager for AXA Financial (1999-2004)
 2007-present
--------------------------------------------------------------------------------------------------------------------
 Robert Kloby(10) (1962)          Managing Director(5), Deutsche Asset Management (2004-present); formerly: Chief
 Chief Compliance Officer,        Compliance Officer/Chief Risk Officer, Robeco USA (2000-2004); Vice President,
 2006-present                     The Prudential Insurance Company of America (1988-2000); E.F. Hutton and
                                  Company (1984-1988)
--------------------------------------------------------------------------------------------------------------------
 J. Christopher Jackson(10)       Director(5), Deutsche Asset Management (2006-present); formerly: Director,
 (1951)                           Senior Vice President, General Counsel, and Assistant Secretary, Hansberger
 Chief Legal Officer,             Global Investors, Inc. (1996-2006); Director, National Society of Compliance
 2006-present                     Professionals (2002-2005) (2006-2009)
--------------------------------------------------------------------------------------------------------------------
</TABLE>

(1)      The length of time served represents the year in which the Board Member
         joined the board of one or more DWS funds currently overseen by the
         Board.

(2)      Represents the year in which Ms. Driscoll was first appointed
         Chairperson of certain DWS funds.

(3)      A publicly held company with securities registered pursuant to Section
         12 of the Securities Exchange Act of 1934.

(4)      The mailing address of Axel Schwarzer is c/o Deutsche Investment
         Management Americas Inc., 345 Park Avenue, New York, New York 10154.
         Mr. Schwarzer is an interested Board Member by virtue of his positions
         with Deutsche Asset Management. As an interested person, Mr. Schwarzer
         receives no compensation from the Funds.

(5)      Executive title, not a board directorship.

(6)      As a result of their respective positions held with the Advisor, these
         individuals are considered "interested persons" of the Advisor within
         the meaning of the 1940 Act. Interested persons receive no compensation
         from the Funds.

(7)      The length of time served represents the year in which the officer was
         first elected in such capacity for one or more DWS funds.

(8)      Address:  345 Park Avenue, New York, New York 10154.

(9)      Address:  One Beacon Street, Boston, Massachusetts 02108.

(10)     Address:  280 Park Avenue, New York, New York 10017.

Certain officers hold similar positions for other investment companies for which
DIMA or an affiliate serves as the Advisor.

Officer's Role with Principal Underwriter:  DWS Investments Distributors, Inc.

Paul H. Schubert:                  Vice President
Jason Vazquez:                     Vice President and AML Compliance Officer
Caroline Pearson:                  Secretary
Patricia DeFilippis:               Assistant Secretary

Board Members' Responsibilities. The officers of the Trust manage its day-to-day
operations under the direction of the Board. The primary responsibility of the
Board is to represent the interests of the Funds and to provide oversight of the
management of the Funds.

Board Committees. The Board has established the following standing committees:
Audit Committee, Nominating and Governance Committee, Contract Committee, Equity
Oversight Committee, Fixed-Income and Quant Oversight Committee, Marketing and
Shareholder Services Committee, and Operations Committee. For each committee,
the Board has adopted a written charter setting forth each committee's
responsibilities. Each committee was reconstituted effective April 1, 2008.

Audit Committee: The Audit Committee, which consists entirely of Independent
Board Members, assists the Board in fulfilling its responsibility for oversight
of (1) the integrity of the financial statements, (2) the Funds' accounting and
financial reporting policies and procedures, (3) the Funds' compliance with
legal and regulatory requirements related to accounting and financial reporting
and (4) the qualifications, independence and performance of the independent
registered public accounting firm for the Funds. It also approves and recommends
to the Board the appointment, retention or termination of the independent
registered public accounting firm for the Funds, reviews the scope of audit and
internal controls, considers and reports to the Board on matters relating to the
Funds' accounting and financial reporting practices, and performs such other
tasks as the full Board deems necessary or appropriate. The Audit Committee
receives annual representations from the independent registered public
accounting firm as to its independence. The members of the Audit Committee are
William McClayton (Chair), Kenneth C. Froewiss (Vice Chair), John W. Ballantine,
Henry P. Becton, Jr., Keith R. Fox and William N. Searcy, Jr. During the
calendar year 2007, the Audit Committee of the Funds' Board held nine (9)
meetings.

Nominating and Governance Committee: The Nominating and Governance Committee,
which consists entirely of Independent Board Members, recommends individuals for
membership on the Board, nominates officers, Board and committee chairs, vice
chairs and committee members, and oversees the operations of the Board. The
Nominating and Governance Committee also reviews recommendations by shareholders
for candidates for Board positions. Shareholders may recommend candidates for
Board positions by forwarding their correspondence by US mail or courier service
to Dawn-Marie Driscoll, P.O. Box 100176, Cape Coral, FL 33904. The members of
the Nominating and Governance Committee are Henry P. Becton, Jr. (Chair),
Rebecca W. Rimel (Vice Chair), Paul K. Freeman and William McClayton. During the
calendar year 2007, the Nominating/Corporate Governance Committee of the Funds'
Board performed similar functions and held three (3) meetings.

Contract Committee: The Contract Committee, which consists entirely of
Independent Board Members, reviews at least annually, (a) the Funds' financial
arrangements with DIMA and its affiliates, and (b) the Funds' expense ratios.
The members of the Contract Committee are Robert H. Wadsworth (Chair), Keith R.
Fox (Vice Chair), Henry P. Becton, Jr., Richard J. Herring, William McClayton
and Jean Gleason Stromberg.

Equity Oversight Committee: The Equity Oversight Committee reviews the
investment operations of those funds that primarily invest in equity securities
(except for those funds managed by a quantitative investment team). The members
of the Equity Oversight Committee are John W. Ballantine (Chair), William
McClayton (Vice Chair), Henry P. Becton, Jr., Keith R. Fox, Richard J. Herring
and Rebecca W. Rimel. During the calendar year 2007, the Equity Oversight
Committee of the Funds' Board performed similar functions and held six (6)
meetings.

Fixed-Income and Quant Oversight Committee: The Fixed-Income and Quant Oversight
Committee reviews the investment operations of those funds that primarily invest
in fixed-income securities or are managed by a quantitative investment team. The
members of the Fixed-Income and Quant Oversight Committee are William N. Searcy,
Jr. (Chair), Jean Gleason Stromberg (Vice Chair), Dawn-Marie Driscoll, Paul K.
Freeman, Kenneth C. Froewiss and Robert H. Wadsworth. During the calendar year
2007, the Fixed-Income Oversight Committee of the Funds' Board performed similar
functions and held six (6) meetings.

Marketing and Shareholder Services Committee: The Marketing and Shareholder
Services Committee reviews the Funds' marketing program, sales practices and
literature and shareholder services. The members of the Marketing and
Shareholder Services Committee are Richard J. Herring (Chair), Dawn-Marie
Driscoll (Vice Chair), Paul K. Freeman, Rebecca W. Rimel, Jean Gleason Stromberg
and Robert H. Wadsworth. During the calendar year 2007, the
Marketing/Distribution/Shareholder Service Committee of the Funds' Board
performed similar functions and held seven (7) meetings.

The Operations Committee: The Operations Committee reviews the administrative
operations, legal affairs and general compliance matters of the Funds. The
Operations Committee reviews administrative matters related to the operations of
the Funds, policies and procedures relating to portfolio transactions, custody
arrangements, fidelity bond and insurance arrangements, valuation of Fund assets
and securities and such other tasks as the full Board deems necessary or
appropriate. The Operations Committee also oversees the valuation of the Funds'
securities and other assets and determines, as needed, the fair value of Fund
securities or other assets under certain circumstances as described in the
Funds' Valuation Procedures. The Operations Committee has appointed a Valuation
Sub-Committee, which may make determinations of fair value required when the
Operations Committee is not in session. The members of the Operations Committee
are Paul K. Freeman (Chair), Dawn-Marie Driscoll (Vice Chair), John W.
Ballantine, Kenneth C. Froewiss, Rebecca W. Rimel and William N. Searcy, Jr. The
members of the Valuation Sub-Committee are Kenneth C. Froewiss (Chair), John W.
Ballantine, Dawn-Marie Driscoll (Alternate), Paul K. Freeman (Alternate),
Rebecca W. Rimel (Alternate) and William N. Searcy, Jr. (Alternate). During the
calendar year 2007, the Operations Committee and Valuation Committee performed
similar functions and each held nine (9) meetings and six (6) meetings,
respectively.

Ad Hoc Committees. In addition to the standing committees described above, from
time to time the Board may also form ad hoc committees to consider specific
issues.

Remuneration. Each Independent Board Member receives compensation from the Funds
for his or her services, which includes retainer fees and specified amounts for
various committee services and for the Board Chairperson. No additional
compensation is paid to any Independent Board Member for travel time to
meetings, attendance at directors' educational seminars or conferences, service
on industry or association committees, participation as speakers at directors'
conferences or service on special fund industry director task forces or
subcommittees. Independent Board Members do not receive any employee benefits
such as pension or retirement benefits or health insurance from the Funds or any
fund in the DWS fund complex.

Board Members who are officers, directors, employees or stockholders of Deutsche
Asset Management or its affiliates receive no direct compensation from the
Funds, although they are compensated as employees of Deutsche Asset Management,
or its affiliates, and as a result may be deemed to participate in fees paid by
the Funds. The following tables show compensation from the Funds and aggregate
compensation from all of the funds in the DWS fund complex received by each
Independent Board Member during the calendar year 2007. Mr. Schwarzer is an
interested person of the Funds and received no compensation from the Funds or
any fund in the DWS fund complex during the relevant periods.

<TABLE>
<CAPTION>
                                 Aggregate        Aggregate       Aggregate        Aggregate       Aggregate         Total
                                Compensation    Compensation     Compensation     Compensation    Compensation    Compensation
                                  from DWS        from DWS         from DWS         from DWS        from DWS     from Fund and
                                LifeCompass      LifeCompass     LifeCompass      LifeCompass     LifeCompass         DWS
Name of Board Member          Retirement Fund     2015 Fund       2020 Fund        2030 Fund       2040 Fund    Fund Complex(1)
--------------------          ---------------     ---------       ---------        ---------       ---------    ---------------

<S>                                      <C>            <C>               <C>              <C>        <C>            <C>
John W. Ballantine                       $0             $0                $0               $0         $0             $215,000
Henry P. Becton, Jr.(2)                $344           $760              $766              $82         $0             $200,000
Dawn-Marie Driscoll(2)(3)              $432           $955              $962             $104         $0             $253,000
Keith R. Fox((2))                      $347           $766              $772              $83         $0             $203,000
Paul K. Freeman(4)                       $0             $0                $0               $0         $0             $265,000
Kenneth C. Froewiss(2)                 $342           $755              $761              $82         $0             $200,000
Richard J. Herring(2)                  $333           $735              $741              $80         $0             $195,000
William McClayton(5)                     $0             $0                $0               $0         $0             $205,000
Rebecca W. Rimel(2)                    $324           $716              $722              $78         $0             $194,000
William N. Searcy, Jr.(2)              $342           $755              $761              $82         $0             $200,000
Jean Gleason Stromberg(2)              $323           $712              $718              $77         $0             $189,000
Robert H. Wadsworth                      $0             $0                $0               $0         $0             $245,250
</TABLE>

(1)      The DWS fund complex is composed of 138 funds as of December 31, 2007.

(2)      Aggregate compensation includes amounts paid to the Board Members for
         special meetings of ad hoc committees of the Board in connection with
         the consolidation of the DWS fund boards and various funds, meetings
         for considering fund expense simplification initiatives, and
         consideration of issues specific to the Funds' direct shareholders
         (i.e., those shareholders who did not purchase shares through financial
         intermediaries). Such amounts totaled $1,000 for Mr. Becton, $1,000 for
         Ms. Driscoll, $1,000 for Mr. Fox, $1,000 for Mr. Froewiss, $1,000 for
         Dr. Herring, $5,000 for Ms. Rimel, $1,000 for Mr. Searcy and $1,000 for
         Ms. Stromberg. These meeting fees were borne by the Advisor.

(3)      Includes $50,000 in annual retainer fees received by Ms. Driscoll as
         Chairperson of certain DWS funds.

(4)      Includes $25,000 paid to Dr. Freeman for numerous special meetings of
         an ad hoc committee in connection with board consolidation initiatives
         and $50,000 in annual retainer fees received by Dr. Freeman as
         Chairperson of certain DWS funds.

(5)      Does not include $15,000 to be paid to Mr. McClayton in calendar year
         2008 for numerous special meetings of an ad hoc committee of the former
         Chicago Board in connection with board consolidation initiatives.

Dr. Freeman, prior to his service as Independent Board Member, served as a board
member of certain funds in the Deutsche Bank complex ("DB Funds"). In connection
with his resignation and the resignation of certain other board members of the
DB Funds on July 30, 2002 (the "Effective Date"), which was part of a
restructuring of the boards overseeing the DB Funds, Deutsche Asset Management,
Inc. ("DAMI") agreed to recommend, and, if necessary obtain, directors and
officers ("D&O") liability insurance coverage for the prior board members,
including Dr. Freeman, that is at least as equivalent in scope and amount to the
D&O coverage provided to the prior board members for the six-year period
following the Effective Date. In the event that D&O insurance coverage is not
available in the commercial marketplace on commercially reasonable terms from a
conventional third party insurer, DeAM reserved the right to provide
substantially equivalent protection in the form of an indemnity or financial
guarantee from an affiliate of DeAM. The D&O policy in effect prior to the
Effective Date provided aggregate coverage of $25,000,000, subject to a $250,000
per claim deductible.

Board Member Ownership in the Funds

The following table shows the dollar range of equity securities beneficially
owned by each Board Member in the Funds and DWS fund complex as of June 30,
2008.


<TABLE>
<CAPTION>
                                            Dollar Range                                      Dollar Range    Aggregate Dollar
                          Dollar Range of   of Beneficial  Dollar Range of  Dollar Range of   of Beneficial  Range of Ownership
                             Beneficial     Ownership in      Beneficial       Beneficial     Ownership in      in all Funds
                            Ownership in         DWS         Ownership in     Ownership in         DWS        Overseen by Board
                          DWS LifeCompass    LifeCompass   DWS LifeCompass  DWS LifeCompass    LifeCompass    Member in the DWS
Board Member              Retirement Fund     2015 Fund       2020 Fund        2030 Fund        2040 Fund      Fund Complex(2)
------------              ---------------     ---------       ---------        ---------        ---------      ---------------

Independent Board Member:

<S>                           <C>              <C>             <C>                <C>             <C>           <C>
John W. Ballantine              None            None             None             None            None          Over $100,000
Henry P. Becton, Jr.        $1 - $10,000    $1 - $10,000     $1 - $10,000         None            None          Over $100,000
Dawn-Marie Driscoll          $10,001 -        $10,001 -       $10,001 -       $1 - $10,000        None          Over $100,000
                              $50,000          $50,000         $50,000
Keith R. Fox                    None            None             None             None            None          Over $100,000
Paul K. Freeman                 None            None             None             None          $10,001 -       Over $100,000
                                                                                                 $50,000
Kenneth C. Froewiss             None            None             None             None            None          Over $100,000
Richard J. Herring              None            None             None             None            None          Over $100,000
William McClayton               None            None             None             None            None          Over $100,000
Rebecca W. Rimel                None            None             None             None            None          Over $100,000
William N. Searcy, Jr.          None            None             None             None            None          Over $100,000
Jean Gleason Stromberg          None          $10,001 -          None             None            None          Over $100,000
                                               $50,000
Robert H. Wadsworth             None            None             None             None            None          Over $100,000

Interested Board Member:

Axel Schwarzer                  None            None             None             None            None          Over $100,000
</TABLE>

(1)      Securities beneficially owned as defined under the 1934 Act include
         direct and/or indirect ownership of securities where the Board Member's
         economic interest is tied to the securities, employment ownership and
         securities when the Board Member can exert voting power, and when the
         Board Member has authority to sell the securities. The dollar ranges
         are: None, $1-$10,000, $10,001-$50,000, $50,001-$100,000 and over
         $100,000.

Ownership in Securities of the Advisor and Related Companies

As reported to the Funds, the information in the following table reflects
ownership by the Independent Board Members and their immediate family members of
certain securities as of December 31, 2007. Immediate family members can be a
spouse, children residing in the same household including step and adoptive
children, and any dependents. The securities represent ownership in the Advisor
or principal underwriter of the Funds and any persons (other than a registered
investment company) directly or indirectly controlling, controlled by, or under
common control with the Advisor or principal underwriter of the Funds (including
Deutsche Bank AG).

<TABLE>
<CAPTION>
                                                                                   Value of        Percent of
                                   Owner and                                     Securities on     Class on an
Independent                     Relationship to                     Title of     an Aggregate       Aggregate
Board Member                      Board Member         Company        Class          Basis            Basis
------------                      ------------         -------        -----          -----            -----

<S>     <C>    <C>    <C>    <C>    <C>    <C>
John W. Ballantine                                  None
Henry P. Becton, Jr.                                None
Dawn-Marie Driscoll                                 None
Keith R. Fox                                        None
Paul K. Freeman                                     None
Kenneth C. Froewiss                                 None
Richard J. Herring                                  None
William McClayton                                   None
Rebecca W. Rimel                                    None
William N. Searcy, Jr.                              None
Jean Gleason Stromberg                              None
Robert H. Wadsworth                                 None
</TABLE>

Securities Beneficially Owned

As of November 7, 2008, the Board Members and officers of the Trust owned, as a
group, less than 1% of the outstanding shares of each Fund.

To the best of each Fund's knowledge, as of November 7, 2008, no person owned of
record or beneficially 5% or more of any class of the Fund's outstanding shares,
except as noted below.

DWS LifeCompass Retirement Fund

<TABLE>
<CAPTION>
Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

<S>                                                           <C>                           <C>
DWS TRUST COMPANY                                             178,202.02                    6.47% of Class A
FBO TRI-STAR CONSTRUCTION CORP
401(K) PROFIT SHARING PLAN
ATTN ASSET RECON DEPT# XXXXXX
SALEM NH  03079-1143

CITIGROUP GLOBAL MARKETS INC                                   59,669.31                    13.13% of Class B
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY  10001-2402

MORGAN STANLEY & CO.                                           31,272.93                    6.88% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

MLPF&S FOR THE SOLE BENEFIT OF                                135,788.20                    12.74% of Class C
ITS CUSTOMERS
ATTN FUND ADMINISTRATION 9E4S0
JACKSONVILLE FL  32246-6484

MORGAN STANLEY & CO.                                           62,057.93                    5.82% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

DWS TRUST COMPANY TTEE                                        498,771.01                    8.47% of Class S
FBO ARCHDIOCESAN PENSION PLAN
FOR LAY EMPLOYEES
ATTN ASSET RECON
SALEM NH  03079-1143


DWS LifeCompass 2015 Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

MORGAN STANLEY & CO.                                          212,117.21                    14.55% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

CITIGROUP GLOBAL MARKETS INC                                  130,405.64                    8.95% of Class B
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY  10001-2402

WELLS FARGO INVESTMENTS LLC                                    84,076.78                    5.77% of Class B
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN  55402-2323

MLPF&S FOR THE SOLE BENEFIT OF                                288,384.43                    12.38% of Class C
ITS CUSTOMERS
ATTN FUND ADMINISTRATION 97D93
JACKSONVILLE FL  32246-6484

MORGAN STANLEY & CO.                                          216,862.46                    9.31% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

DWS TRUST COMPANY TTEE OF THE                                1,305,574.06                   14.92% of Class S
TIFFANY & CO EE P/S AND
RETIREMENT SAVINGS PLAN
ATTN: ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY                                            1,010,566.53                   11.55% of Class S
DURHAM SCHOOL SERVICES 401(K) & PRO
ATTN ASSET RECON DEPT # XXXXXX
SALEM NH  03079-1143

DWS TRUST COMPANY TTEE                                        570,094.92                    6.52% of Class S
FBO ARCHDIOCESAN PENSION PLAN
FOR LAY EMPLOYEES
ATTN ASSET RECON
SALEM NH  03079-1143


DWS LifeCompass 2020 Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

CITIGROUP GLOBAL MARKETS INC                                  192,455.01                    12.50% of Class B
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY  10001-2402

MORGAN STANLEY & CO.                                          180,370.38                    11.72% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

WELLS FARGO INVESTMENTS LLC                                    92,425.34                    6.00% of Class B
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN  55402-2323

MLPF&S FOR THE SOLE BENEFIT OF                                258,187.34                    12.20% of Class C
ITS CUSTOMERS
ATTN FUND ADMINISTRATION 97D93
JACKSONVILLE FL  32246-6484

CITIGROUP GLOBAL MARKETS INC                                  164,973.56                    7.80% of Class C
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY  10001-2402

MORGAN STANLEY & CO.                                          140,072.17                    6.62% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

DWS TRUST COMPANY TTEE OF THE                                 845,320.69                    9.23% of Class S
TIFFANY & CO EE P/S AND
RETIREMENT SAVINGS PLAN
ATTN: ASSET RECON
SALEM NH  03079-1143


DWS LifeCompass 2030 Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

DWS TRUST COMPANY                                             182,326.23                    8.12% of Class A
FBO CROWLEY AUTOMOTIVE
GROUP 401K PLAN
ATTN SHARE RECON DEPT # XXXXXX
SALEM NH  03079-1143

DWS TRUST COMPANY                                             180,314.67                    8.03% of Class A
FBO DENTAL CARE PARTNERS INC
RETIREMENT SVGS PL A/C XXXXXX
ATTN SHARE RECON DEPT
SALEM NH  03079-1143

WELLS FARGO INVESTMENTS LLC                                   172,087.57                    7.66% of Class A
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN  55402-2323

WELLS FARGO INVESTMENTS LLC                                    15,761.21                    5.85% of Class B
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN  55402-2323

MORGAN STANLEY & CO.                                           15,576.92                    5.78% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

MORGAN STANLEY & CO.                                           75,768.47                    10.35% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

DWS TRUST COMPANY TTEE                                        184,487.17                    28.89% of Class S
FBO ARCHDIOCESAN PENSION PLAN
FOR LAY EMPLOYEES
ATTN ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY TTEE OF THE                                  65,031.94                    10.18% of Class S
UCB INC 401K PFT/SHR/PLN
ATTN SUE NAPOLITANO
ATTN: ASSET RECON
SALEM NH  03079-1143


DWS LifeCompass 2040 Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

DWS TRUST COMPANY                                              73,349.54                    28.82% of Class A
FBO DENTAL CARE PARTNERS INC
RETIREMENT SVGS PL A/C XXXXXX
ATTN SHARE RECON DEPT
SALEM NH  03079-1143

DWS TRUST COMPANY                                              25,716.44                    10.10% of Class A
FBO NATIONAL AIR CARGO 401K PLAN
A/C XXXXXX
ATTN ASSET RECON DEPT
SALEM NH  03079-1143

DWS TRUST COMPANY                                              21,599.75                    8.49% of Class A
FBO HINTZSCHE EMPLOYEES PROFIT
SHARING 401K PL A/C XXXXXX
ATTN SHARE RECON DEPT
SALEM NH  03079-1143

DWS TRUST COMPANY CUST                                         8,959.73                     37.36% of Class C
FOR THE SEP IRA OF
ERIC W SCHULTZ
LEWISTON NY  14092-1950

LPL FINANCIAL SERVICES                                         1,833.15                     7.64% of Class C
A/C XXXX-XXXX
SAN DIEGO CA  92121-1968

LPL FINANCIAL SERVICES                                         1,322.81                     5.52% of Class C
A/C XXXX-XXXX
SAN DIEGO CA  92121-1968

JOHN POHAR & SONS INC                                          1,203.18                     5.02% of Class C
JOHN POHAR
FBO JOHN POHAR & SONS IN
LA SALLE IL  61301-1140

DWS TRUST COMPANY TTEE                                        115,226.29                    42.95% of Class S
FBO ARCHDIOCESAN PENSION PLAN
FOR LAY EMPLOYEES
ATTN ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY TTEE OF THE                                  67,939.26                    25.32% of Class S
UCB INC 401K PFT/SHR/PLN
ATTN SUE NAPOLITANO
ATTN: ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY TTEE OF THE                                  35,265.38                    13.14% of Class S
TIFFANY & CO EE P/S AND
RETIREMENT SAVINGS PLAN
ATTN: ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY TEE                                          27,013.98                    10.07% of Class S
THRIFT PLAN OF LONZA INC
ATTN: ASSET RECON
SALEM NH  03079-1143
</TABLE>





Agreement to Indemnify Independent Trustees for Certain Expenses

In connection with litigation or regulatory action related to possible improper
market timing or other improper trading activity or possible improper marketing
and sales activity in certain DWS Funds (the "Affected Funds"), DIMA has agreed
to indemnify and hold harmless the Affected Funds ("Fund Indemnification
Agreement") against any and all loss, damage, liability and expense, arising
from market timing or marketing and sales matters alleged in any enforcement
actions brought by governmental authorities involving or potentially affecting
the Affected Funds or DIMA ("Enforcement Actions") or that are the basis for
private actions brought by shareholders of the Affected Funds against the
Affected Funds, their directors and officers, DIMA and/or certain other parties
("Private Litigation"), or any proceedings or actions that may be threatened or
commenced in the future by any person (including governmental authorities),
arising from or similar to the matters alleged in the Enforcement Actions or
Private Litigation. In recognition of its undertaking to indemnify the Affected
Funds and in light of the rebuttable presumption generally afforded to
independent directors/trustees of investment companies that they have not
engaged in disabling conduct, DIMA has also agreed, subject to applicable law
and regulation, to indemnify certain (or, with respect to certain Affected
Funds, all) of the Independent Trustees of the Affected Funds, against certain
liabilities the Independent Trustees may incur from the matters alleged in any
Enforcement Actions or Private Litigation or arising from or similar to the
matters alleged in the Enforcement Actions or Private Litigation, and advance
expenses that may be incurred by the Independent Trustees in connection with any
Enforcement Actions or Private Litigation. DIMA is not, however, required to
provide indemnification and advancement of expenses: (1) with respect to any
proceeding or action which the Affected Funds' Board determines that the
Independent Trustees ultimately would not be entitled to indemnification or (2)
for any liability of the Independent Trustees to the Funds or their shareholders
to which the Independent Trustee would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of the
Independent Trustee's duties as a director or trustee of the Affected Funds as
determined in a final adjudication in such action or proceeding. The estimated
amount of any expenses that may be advanced to the Independent Trustees or
indemnity that may be payable under the indemnity agreements is currently
unknown. These agreements by DIMA will survive the termination of the investment
management agreements between DIMA and the Affected Funds.




                               TRUST ORGANIZATION

Organizational Description


The Funds are portfolios of DWS Target Date Series (the "Trust"), a
Massachusetts business trust established under a Declaration of Trust dated June
27, 2006. Effective November 1, 2007, the Trust and its funds: DWS Allocation
Series, DWS Conservative Allocation Fund, DWS Moderate Allocation Fund, DWS
Growth Allocation Fund and DWS Growth Plus Allocation Fund were renamed DWS
Target Date Series, DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund,
DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund, respectively. Prior to
February 6, 2006, DWS Target Date Series was known as Scudder Pathway Series.
The Trust's authorized capital consists of an unlimited number of shares of
beneficial interest of $0.01 par value, all of which are of one class and have
equal rights as to voting, dividends and liquidation. The Trust is comprised of
five separate funds: DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund,
and DWS LifeCompass 2020 Fund, all of which were organized on July 1, 1994; DWS
LifeCompass 2030 Fund which was organized on November 1, 2004 and DWS
LifeCompass 2040 Fund which was organized on November 15, 2007. Each Fund
consists of an unlimited number of shares. Each Fund, except DWS LifeCompass
2040 Fund, is further divided into four classes of shares, Class S, Class A,
Class B and Class C. DWS LifeCompass 2040 Fund is divided into three classes of
shares, Class S, Class A and Class C. The Trustees have the authority to issue
additional funds to the Trust. To the extent that the Funds offer additional
share classes, these classes will be offered in a separate prospectus and have
different fees, requirements and services.


The Trustees have the authority to create additional funds and to designate the
relative rights and preferences as between the different funds. The Trustees
also may authorize the division of shares of a Fund into different classes,
which may bear different expenses. All shares issued and outstanding are fully
paid and non-assessable, transferable, have no pre-emptive or conversion rights
and are redeemable as described in the SAI and in the Fund's prospectus. Each
share has equal rights with each other share of the same class of the Fund as to
voting, dividends, exchanges, conversion features and liquidation. Shareholders
are entitled to one vote for each full share held and fractional votes for
fractional shares held. The Trustees may also terminate any Fund or class by
notice to the shareholders without shareholder approval.

The Trust is a Massachusetts business trust organized under the laws of
Massachusetts and is governed by an Amended and Restated Declaration of Trust
that was approved by shareholders in the second quarter of 2006, as may be
further amended from time to time (the "Declaration of Trust"). All shares
issued and outstanding are fully paid and non-assessable, transferable, have no
pre-emptive or conversion rights (except as may be determined by the Board of
Trustees) and are redeemable as described in the SAI and a Fund's prospectus.
Each share has equal rights with each other share of the same class of the Fund
as to voting, dividends, exchanges, conversion features and liquidation.
Shareholders are entitled to one vote for each full share held and fractional
votes for fractional shares held.

A Fund generally is not required to hold meetings of its shareholders. Under the
Declaration of Trust, however, shareholder meetings will be held in connection
with the following matters to the extent and as provided in the Declaration of
Trust and as required by applicable law: (a) the election or removal of trustees
if a meeting is called for such purpose; (b) the termination of the Trust or a
Fund; (c) an amendment of the Declaration of Trust; (d) to the same extent as
stockholders of Massachusetts business corporation as to whether or not a court
action, proceeding or claims should or should not be brought or maintained
derivatively or as a class action on behalf of the Trust or the Shareholders;
(e) a merger, consolidation or sale of assets; (f) the adoption of an investment
advisory or management contract; (g) the incorporation of the Trust or any
series; (h) any plan adopted pursuant to Rule 12b-1 (or any successor rule)
under the 1940 Act; and (i) such additional matters as may be required by law,
the Declaration of Trust, the By-laws of a Fund, or any registration of a Fund
with the SEC, or as the Trustees may determine to be necessary or desirable.
Shareholders also vote upon changes in fundamental policies or restrictions.

The Declaration of Trust provides that shareholder meeting quorum requirements
shall be established in the Trust's By-laws. The By-laws currently in effect
provide that the presence in person or by proxy of the holders of thirty percent
of the shares entitled to vote at a meeting (or of an individual series or class
if required to vote separately) shall constitute a quorum for the transaction of
business at meetings of shareholders of the Trust.

On any matter submitted to a vote of shareholders, all shares of the Trust
entitled to vote shall, except as otherwise provided in the Trust's By-Laws, be
voted in the aggregate as a single class without regard to series or classes of
shares, except (a) when required by applicable law or when the Trustees shall
have determined that the matter affects one or more series or classes of shares
materially differently, shares shall be voted by individual series or class; and
(b) when the Trustees have determined that the matter affects only the interests
of one or more series or classes, only shareholders of such series or classes
shall be entitled to vote thereon.

The Declaration of Trust provides that the Board of Trustees may, in its
discretion, establish minimum investment amounts for shareholder accounts,
impose fees on accounts that do not exceed a minimum investment amount and
involuntarily redeem shares in any such account in payment of such fees. The
Board of Trustees, in its sole discretion, also may cause the Trust to redeem
all of the shares of the Trust or one or more series or classes held by any
shareholder for any reason, to the extent permissible by the 1940 Act, including
(a) if the shareholder owns shares having an aggregate net asset value of less
than a specified minimum amount, (b) if a particular shareholder's ownership of
shares would disqualify a series from being a regulated investment company, (c)
upon a shareholder's failure to provide sufficient identification to permit the
Trust to verify the shareholder's identity, (d) upon a shareholder's failure to
pay for shares or meet or maintain the qualifications for ownership of a
particular class or series of shares, (e) if the Board of Trustees determines
(or pursuant to policies established by the Board it is determined) that share
ownership by a particular shareholder is not in the best interests of remaining
shareholders, (f) when a Fund is requested or compelled to do so by governmental
authority or applicable law and (g) upon a shareholder's failure to comply with
a request for information with respect to the direct or indirect ownership of
shares of the Trust. The Declaration of Trust also authorizes the Board of
Trustees to terminate a Fund or any class without shareholder approval, and the
Trust may suspend the right of shareholders to require the Trust to redeem
shares to the extent permissible under the 1940 Act.

Upon the termination of the Trust or any series, after paying or adequately
providing for the payment of all liabilities which may include the establishment
of a liquidating trust or similar vehicle, and upon receipt of such releases,
indemnities and refunding agreements as they deem necessary for their
protection, the Trustees may distribute the remaining Trust property or property
of the series, in cash or in kind or partly each, to the shareholders of the
Trust or the series involved, ratably according to the number of shares of the
Trust or such series held by the several shareholders of the Trust or such
series on the date of termination, except to the extent otherwise required or
permitted by the preferences and special or relative rights and privileges of
any classes of shares of a series involved, provided that any distribution to
the shareholders of a particular class of shares shall be made to such
shareholders pro rata in proportion to the number of shares of such class held
by each of them. The composition of any such distribution (e.g., cash,
securities or other assets) shall be determined by the Trust in its sole
discretion, and may be different among shareholders (including differences among
shareholders in the same series or class).

Under Massachusetts law, shareholders of a Massachusetts business trust could,
under certain circumstances, be held personally liable for obligations of a
Fund. The Declaration of Trust, however, disclaims shareholder liability for
acts or obligations of the Fund and requires that notice of such disclaimer be
given in each agreement, obligation, or instrument entered into or executed by
the Fund or the Fund's trustees. Moreover, the Declaration of Trust provides for
indemnification out of Fund property for all losses and expenses of any
shareholder held personally liable for the obligations of the Fund and the Fund
may be covered by insurance which the Trustees consider adequate to cover
foreseeable tort claims. Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability is considered by the Advisor remote and
not material, since it is limited to circumstances in which a disclaimer is
inoperative and the Fund itself is unable to meet its obligations.

                             PROXY VOTING GUIDELINES


The Fund has delegated proxy voting responsibilities to the Advisor, subject to
the Board's general oversight. The Advisor votes proxies pursuant to the proxy
voting policy and guidelines set forth in Appendix A to this SAI).

You may obtain information about how a fund voted proxies related to its
portfolio securities during the 12-month period ended June 30 by visiting the
Securities and Exchange Commission's Web site at www.sec.gov or by visiting our
Web site at: www.dws-investments.com (click on "proxy voting" at the bottom of
the page).




                              FINANCIAL STATEMENTS


The financial statements, including the portfolio of investments, of each Fund,
together with the Report of the Independent Registered Public Accounting Firm,
Financial Highlights and notes to financial statements in the Annual Report to
the Shareholders of the Fund dated August 31, 2008, are incorporated by
reference herein and are deemed to be a part of this combined Statement of
Additional Information.


                             ADDITIONAL INFORMATION

The CUSIP numbers of the classes are:

DWS LifeCompass Retirement Fund

Class A:  23337A608

Class B:  23337A707

Class C:   23337A806

DWS LifeCompass 2015 Fund

Class A:  23337A103

Class B:  23337A202

Class C: 23337A301

DWS LifeCompass 2020 Fund

Class A:  23337A863

Class B:  23337A855

Class C:  23337A848

DWS LifeCompass 2030 Fund

Class A:  23337A814

Class B:  23337A798

Class C:  23337A780

DWS LifeCompass 2040 Fund

Class A:  23337A764

Class C:  23337A756

Each Fund has a fiscal year end of August 31.

This Statement of Additional Information contains the information of DWS Target
Date Series. Each Fund, through its combined prospectus, offers only its own
share classes, yet it is possible that one Fund might become liable for a
misstatement regarding another Fund. The Trustees of each Fund have considered
this, and have approved the use of this Statement of Additional Information.


The Funds' prospectus and this Statement of Additional Information omit certain
information contained in the Registration Statement which the Funds have filed
with the SEC under the Securities Act of 1933 and reference is hereby made to
the Registration Statement for further information with respect to each Fund and
the securities offered hereby. This Registration Statement and its amendments
are available for inspection by the public at the SEC in Washington, D.C.


                                             STATEMENT OF ADDITIONAL INFORMATION

                                                                December 1, 2008



Investment Advisor
DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC.
345 Park Avenue
New York, NY 10154

Administrator
DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC.
345 Park Avenue
New York, NY 10154

Transfer Agent
DWS INVESTMENTS SERVICE COMPANY
222 South Riverside Plaza
Chicago, IL 60606-5808

Custodian
STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
Boston, MA 02110

Distributor
DWS INVESTMENTS DISTRIBUTORS, INC.
222 South Riverside Plaza
Chicago, IL 60606-5808

Independent Registered Public Accounting Firm
PRICEWATERHOUSECOOPERS LLP
125 High Street
Boston, MA 02110

Legal Counsel
ROPES & GRAY LLP
One International Place
Boston, MA 02110

No person has been authorized to give any information or to make any
representations other than those contained in the Fund's prospectuses, its SAI
or the Fund's official sales literature in connection with the offering of the
Fund's shares and, if given or made, such other information or representations
must not be relied on as having been authorized by the Trust. Neither the
prospectuses nor this SAI constitute an offer in any state in which, or to any
person to whom, such offer may not lawfully be made.








                      APPENDIX A -- PROXY VOTING GUIDELINES

       Deutsche Asset Management ("AM") Proxy Voting Policy and Guidelines


I.       INTRODUCTION

AM has adopted and implemented the following policies and procedures, which it
believes are reasonably designed to ensure that proxies are voted in the best
economic interest of clients, in accordance with its fiduciary duties and local
regulation. In addition, AM's proxy policies reflect the fiduciary standards and
responsibilities for ERISA accounts.

The attached guidelines represent a set of global recommendations that were
determined by the Global Proxy Voting Sub-Committee ("the GPVSC"). These
guidelines were developed to provide AM with a comprehensive list of
recommendations that represent how AM will generally vote proxies for its
clients. The recommendations derived from the application of these guidelines
are not intended to influence the various AM legal entities either directly or
indirectly by parent or affiliated companies. In addition, the organizational
structures and documents of the various AM legal entities allows, where
necessary or appropriate, the execution by individual AM subsidiaries of the
proxy voting rights independently of any DB parent or affiliated company. This
applies in particular to non U.S. fund management companies. The individuals
that make proxy voting decisions are also free to act independently, subject to
the normal and customary supervision by the management/boards of these AM legal
entities.


II.      AM'S PROXY VOTING RESPONSIBILITIES

Proxy votes are the property of AM's advisory clients.(1) As such, AM's
authority and responsibility to vote such proxies depend upon its contractual
relationships with its clients. AM has delegated responsibility for effecting
its advisory clients' proxy votes to Institutional Shareholder Services ("ISS"),
an independent third-party proxy voting specialist. ISS votes AM's advisory
clients' proxies in accordance with AM's proxy guidelines or AM's specific
instructions. Where a client has given specific instructions as to how a proxy
should be voted, AM will notify ISS to carry out those instructions. Where no
specific instruction exists, AM will follow the procedures in voting the proxies
set forth in this document. Certain Taft-Hartley clients may direct AM to have
ISS vote their proxies in accordance with Taft Hartley voting Guidelines

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

(1)      For purposes of these Policies and Procedures, "clients" refers to
         persons or entities: for which AM serves as investment adviser or
         sub-adviser; for which AM votes proxies; and that have an economic or
         beneficial ownership interest in the portfolio securities of issuers
         soliciting such proxies.

Clients may in certain instances contract with their custodial agent and notify
AM that they wish to engage in securities lending transactions. In such cases,
it is the responsibility of the custodian to deduct the number of shares that
are on loan so that they do not get voted twice.


III.     POLICIES


1.       Proxy voting activities are conducted in the best economic interest of
         clients

AM has adopted the following policies and procedures to ensure that proxies are
voted in accordance with the best economic interest of its clients, as
determined by AM in good faith after appropriate review.


2.       The Global Proxy Voting Sub-Committee

The Global Proxy Voting Sub-Committee (the "GPVSC") is an internal working group
established by the applicable AM's Investment Risk Oversight Committee pursuant
to a written charter. The GPVSC is responsible for overseeing AM's proxy voting
activities, including:

(i)      adopting, monitoring and updating guidelines, attached as Exhibit A
         (the "Guidelines"), that provide how AM will generally vote proxies
         pertaining to a comprehensive list of common proxy voting matters;

(ii)     voting proxies where (A) the issues are not covered by specific client
         instruction or the Guidelines; (B) the Guidelines specify that the
         issues are to be determined on a case-by-case basis; or (C) where an
         exception to the Guidelines may be in the best economic interest of
         AM's clients; and

(iii)    monitoring the Proxy Vendor Oversight's proxy voting activities (see
         below).

AM's Proxy Vendor Oversight, a function of AM's Operations Group, is responsible
for coordinating with ISS to administer AM's proxy voting process and for voting
proxies in accordance with any specific client instructions or, if there are
none, the Guidelines, and overseeing ISS' proxy responsibilities in this regard.


3.       Availability of Proxy Voting Policies and Procedures and proxy voting
         record

Copies of these Policies and Procedures, as they may be updated from time to
time, are made available to clients as required by law and otherwise at AM's
discretion. Clients may also obtain information on how their proxies were voted
by AM as required by law and otherwise at AM's discretion; however, AM must not
selectively disclose its investment company clients' proxy voting records. The
Proxy Vendor Oversight will make proxy voting reports available to advisory
clients upon request. The investment companies' proxy voting records will be
disclosed to shareholders by means of publicly-available annual filings of each
company's proxy voting record for 12-month periods ended June 30 (see
"Recordkeeping" below), if so required by relevant law.


IV.      PROCEDURES

The key aspects of AM's proxy voting process are as follows:


1.       The GPVSC's Proxy Voting Guidelines

The Guidelines set forth the GPVSC's standard voting positions on a
comprehensive list of common proxy voting matters. The GPVSC has developed, and
continues to update the Guidelines based on consideration of current corporate
governance principles, industry standards, client feedback, and the impact of
the matter on issuers and the value of the investments.

The GPVSC will review the Guidelines as necessary to support the best economic
interests of AM's clients and, in any event, at least annually. The GPVSC will
make changes to the Guidelines, whether as a result of the annual review or
otherwise, taking solely into account the best economic interests of clients.
Before changing the Guidelines, the GPVSC will thoroughly review and evaluate
the proposed change and the reasons therefore, and the GPVSC Chair will ask
GPVSC members whether anyone outside of the AM organization (but within Deutsche
Bank and its affiliates) or any entity that identifies itself as a AM advisory
client has requested or attempted to influence the proposed change and whether
any member has a conflict of interest with respect to the proposed change. If
any such matter is reported to the GPVSC Chair, the Chair will promptly notify
the Conflicts of Interest Management Sub-Committee (see below) and will defer
the approval, if possible. Lastly, the GPVSC will fully document its rationale
for approving any change to the Guidelines.

The Guidelines may reflect a voting position that differs from the actual
practices of the public company(ies) within the Deutsche Bank organization or of
the investment companies for which AM or an affiliate serves as investment
adviser or sponsor. Investment companies, particularly closed-end investment
companies, are different from traditional operating companies. These differences
may call for differences in voting positions on the same matter. Further, the
manner in which AM votes investment company proxies may differ from proposals
for which a AM-advised or sponsored investment company solicits proxies from its
shareholders. As reflected in the Guidelines, proxies solicited by closed-end
(and open-end) investment companies are generally voted in accordance with the
pre-determined guidelines of ISS. See Section IV.3.B.

Funds ("Underlying Funds") in which Topiary Fund Management Fund of Funds (each,
a "Fund") invest, may from time to time seek to revise their investment terms
(i.e. liquidity, fees, etc.) or investment structure. In such event, the
Underlying Funds may require approval/consent from its investors to effect the
relevant changes. Topiary Fund Management has adopted Proxy Voting Procedures
which outline the process for these approvals.


2.       Specific proxy voting decisions made by the GPVSC

The Proxy Vendor Oversight will refer to the GPVSC all proxy proposals (i) that
are not covered by specific client instructions or the Guidelines; or (ii) that,
according to the Guidelines, should be evaluated and voted on a case-by-case
basis.

Additionally, if, the Proxy Vendor Oversight, the GPVSC Chair or any member of
the GPVSC, a portfolio manager, a research analyst or a sub-adviser believes
that voting a particular proxy in accordance with the Guidelines may not be in
the best economic interests of clients, that individual may bring the matter to
the attention of the GPVSC Chair and/or the Proxy Vendor Oversight.(2)

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

(2)      The Proxy Vendor Oversight generally monitors upcoming proxy
         solicitations for heightened attention from the press or the industry
         and for novel or unusual proposals or circumstances, which may prompt
         the Proxy Vendor Oversight to bring the solicitation to the attention
         of the GPVSC Chair. AM portfolio managers, AM research analysts and
         sub-advisers also may bring a particular proxy vote to the attention of
         the GPVSC Chair, as a result of their ongoing monitoring of portfolio
         securities held by advisory clients and/or their review of the periodic
         proxy voting record reports that the GPVSC Chair distributes to AM
         portfolio managers and AM research analysts.

If the Proxy Vendor Oversight refers a proxy proposal to the GPVSC or the GPVSC
determines that voting a particular proxy in accordance with the Guidelines is
not in the best economic interests of clients, the GPVSC will evaluate and vote
the proxy, subject to the procedures below regarding conflicts.

The GPVSC endeavors to hold meetings to decide how to vote particular proxies
sufficiently before the voting deadline so that the procedures below regarding
conflicts can be completed before the GPVSC's voting determination.


3.       Certain proxy votes may not be cast

In some cases, the GPVSC may determine that it is in the best economic interests
of its clients not to vote certain proxies. If the conditions below are met with
regard to a proxy proposal, AM will abstain from voting:

o        Neither the Guidelines nor specific client instructions cover an issue;

o        ISS does not make a recommendation on the issue;

o        The GPVSC cannot convene on the proxy proposal at issue to make a
         determination as to what would be in the client's best interest. (This
         could happen, for example, if the Conflicts of Interest Management
         Sub-committee found that there was a material conflict or if despite
         all best efforts being made, the GPVSC quorum requirement could not be
         met).

In addition, it is AM's policy not to vote proxies of issuers subject to laws of
those jurisdictions that impose restrictions upon selling shares after proxies
are voted, in order to preserve liquidity. In other cases, it may not be
possible to vote certain proxies, despite good faith efforts to do so. For
example, some jurisdictions do not provide adequate notice to shareholders so
that proxies may be voted on a timely basis. Voting rights on securities that
have been loaned to third-parties transfer to those third-parties, with loan
termination often being the only way to attempt to vote proxies on the loaned
securities. Lastly, the GPVSC may determine that the costs to the client(s)
associated with voting a particular proxy or group of proxies outweighs the
economic benefits expected from voting the proxy or group of proxies.

The Proxy Vendor Oversight will coordinate with the GPVSC Chair regarding any
specific proxies and any categories of proxies that will not or cannot be voted.
The reasons for not voting any proxy shall be documented.


4.       Conflict of Interest Procedures

A.       Procedures to Address Conflicts of Interest and Improper Influence
         ------------------------------------------------------------------

Overriding Principle. In the limited circumstances where the GPVSC votes
proxies,(3) the GPVSC will vote those proxies in accordance with what it, in
good faith, determines to be the best economic interests of AM's clients.(4)

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

(3)      As mentioned above, the GPVSC votes proxies (i) where neither a
         specific client instruction nor a Guideline directs how the proxy
         should be voted, (ii) where the Guidelines specify that an issue is to
         be determined on a case by case basis or (iii) where voting in
         accordance with the Guidelines may not be in the best economic
         interests of clients.

(4)      The Proxy Vendor Oversight, who serves as the non-voting secretary of
         the GPVSC, may receive routine calls from proxy solicitors and other
         parties interested in a particular proxy vote. Any contact that
         attempts to exert improper pressure or influence shall be reported to
         the Conflicts of Interest Management Sub-Committee.

Independence of the GPVSC. As a matter of Compliance policy, the GPVSC and the
Proxy Vendor Oversight are structured to be independent from other parts of
Deutsche Bank. Members of the GPVSC and the employee responsible for Proxy
Vendor Oversight are employees of AM. As such, they may not be subject to the
supervision or control of any employees of Deutsche Bank Corporate and
Investment Banking division ("CIB"). Their compensation cannot be based upon
their contribution to any business activity outside of AM without prior approval
of Legal and Compliance. They can have no contact with employees of Deutsche
Bank outside of the Private Client and Asset Management division ("PCAM")
regarding specific clients, business matters or initiatives without the prior
approval of Legal and Compliance. They furthermore may not discuss proxy votes
with any person outside of AM (and within AM only on a need to know basis).

Conflict Review Procedures. There will be a committee (the "Conflicts of
Interest Management Sub-Committee") established within AM that will monitor for
potential material conflicts of interest in connection with proxy proposals that
are to be evaluated by the GPVSC. Promptly upon a determination that a vote
shall be presented to the GPVSC, the GPVSC Chair shall notify the Conflicts of
Interest Management Sub-Committee. The Conflicts of Interest Management
Sub-Committee shall promptly collect and review any information deemed
reasonably appropriate to evaluate, in its reasonable judgment, if AM or any
person participating in the proxy voting process has, or has the appearance of,
a material conflict of interest. For the purposes of this policy, a conflict of
interest shall be considered "material" to the extent that a reasonable person
could expect the conflict to influence, or appear to influence, the GPVSC's
decision on the particular vote at issue. GPVSC should provide the Conflicts of
Interest Management Sub-Committee a reasonable amount of time (no less than 24
hours) to perform all necessary and appropriate reviews. To the extent that a
conflicts review can not be sufficiently completed by the Conflicts of Interest
Management Sub-Committee the proxies will be voted in accordance with the
standard guidelines.

The information considered by the Conflicts of Interest Management Sub-Committee
may include without limitation information regarding (i) AM client
relationships; (ii) any relevant personal conflict known by the Conflicts of
Interest Management Sub-Committee or brought to the attention of that
sub-committee; (iii) and any communications with members of the GPVSC (or anyone
participating or providing information to the GPVSC) and any person outside of
the AM organization (but within Deutsche Bank and its affiliates) or any entity
that identifies itself as a AM advisory client regarding the vote at issue. In
the context of any determination, the Conflicts of Interest Management
Sub-Committee may consult with, and shall be entitled to rely upon, all
applicable outside experts, including legal counsel.

Upon completion of the investigation, the Conflicts of Interest Management
Sub-Committee will document its findings and conclusions. If the Conflicts of
Interest Management Sub-Committee determines that (i) AM has a material conflict
of interest that would prevent it from deciding how to vote the proxies
concerned without further client consent or (ii) certain individuals should be
recused from participating in the proxy vote at issue, the Conflicts of Interest
Management Sub-Committee will so inform the GPVSC chair.

If notified that AM has a material conflict of interest as described above, the
GPVSC chair will obtain instructions as to how the proxies should be voted
either from (i) if time permits, the effected clients, or (ii) in accordance
with the standard guidelines. If notified that certain individuals should be
recused from the proxy vote at issue, the GPVSC Chair shall do so in accordance
with the procedures set forth below.

Note: Any AM employee who becomes aware of a potential, material conflict of
interest in respect of any proxy vote to be made on behalf of clients shall
notify Compliance. Compliance shall call a meeting of the conflict review
committee to evaluate such conflict and determine a recommended course of
action.

Procedures to be followed by the GPVSC. At the beginning of any discussion
regarding how to vote any proxy, the GPVSC Chair (or his or her delegate) will
inquire as to whether any GPVSC member (whether voting or ex officio) or any
person participating in the proxy voting process has a personal conflict of
interest or has actual knowledge of an actual or apparent conflict that has not
been reported to the Conflicts of Interest Management Sub-Committee.

The GPVSC Chair also will inquire of these same parties whether they have actual
knowledge regarding whether any director, officer or employee outside of the AM
organization (but within Deutsche Bank and its affiliates) or any entity that
identifies itself as a AM advisory client, has: (i) requested that AM, the Proxy
Vendor Oversight (or any member thereof) or a GPVSC member vote a particular
proxy in a certain manner; (ii) attempted to influence AM, the Proxy Vendor
Oversight (or any member thereof), a GPVSC member or any other person in
connection with proxy voting activities; or (iii) otherwise communicated with a
GPVSC member or any other person participating or providing information to the
GPVSC regarding the particular proxy vote at issue, and which incident has not
yet been reported to the Conflicts of Interest Management Sub- Committee.

If any such incidents are reported to the GPVSC Chair, the Chair will promptly
notify the Conflicts of Interest Management Sub-Committee and, if possible, will
delay the vote until the Conflicts of Interest Management Sub-Committee can
complete the conflicts report. If a delay is not possible, the Conflicts of
Interest Management Sub-Committee will instruct the GPVSC whether anyone should
be recused from the proxy voting process, or whether AM should vote the proxy in
accordance with the standard guidelines, seek instructions as to how to vote the
proxy at issue from ISS or, if time permits, the effected clients. These
inquiries and discussions will be properly reflected in the GPVSC's minutes.

Duty to Report. Any AM employee, including any GPVSC member (whether voting or
ex officio), that is aware of any actual or apparent conflict of interest
relevant to, or any attempt by any person outside of the AM organization (but
within Deutsche Bank and its affiliates) or any entity that identifies itself as
a AM advisory client to influence, how AM votes its proxies has a duty to
disclose the existence of the situation to the GPVSC Chair (or his or her
designee) and the details of the matter to the Conflicts of Interest Management
Sub-Committee. In the case of any person participating in the deliberations on a
specific vote, such disclosure should be made before engaging in any activities
or participating in any discussion pertaining to that vote.

Recusal of Members. The GPVSC will recuse from participating in a specific proxy
vote any GPVSC members (whether voting or ex officio) and/or any other person
who (i) are personally involved in a material conflict of interest; or (ii) who,
as determined by the Conflicts of Interest Management Sub-Committee, have actual
knowledge of a circumstance or fact that could effect their independent
judgment, in respect of such vote. The GPVSC will also exclude from
consideration the views of any person (whether requested or volunteered) if the
GPVSC or any member thereof knows, or if the Conflicts of Interest Management
Sub-Committee has determined, that such other person has a material conflict of
interest with respect to the particular proxy, or has attempted to influence the
vote in any manner prohibited by these policies.

If, after excluding all relevant GPVSC voting members pursuant to the paragraph
above, there are three or more GPVSC voting members remaining, those remaining
GPVSC members will determine how to vote the proxy in accordance with these
Policies and Procedures. If there are fewer than three GPVSC voting members
remaining, the GPVSC Chair will vote the proxy in accordance with the standard
guidelines, will obtain instructions as to how to have the proxy voted from, if
time permits, the effected clients and otherwise from ISS.

B.       Investment Companies and Affiliated Public Companies
         ----------------------------------------------------

Investment Companies. As reflected in the Guidelines, all proxies solicited by
open-end and closed-end investment companies are voted in accordance with the
pre-determined guidelines of ISS, unless the investment company client directs
AM to vote differently on a specific proxy or specific categories of proxies.
However, regarding investment companies for which AM or an affiliate serves as
investment adviser or principal underwriter, such proxies are voted in the same
proportion as the vote of all other shareholders (i.e., "mirror" or "echo"
voting). Master fund proxies solicited from feeder funds are voted in accordance
with applicable provisions of Section 12 of the Investment Company Act of 1940.

Subject to participation agreements with certain Exchange Traded Funds ("ETF")
issuers that have received exemptive orders from the U.S. Securities and
Exchange Commission allowing investing DWS funds to exceed the limits set forth
in Section 12(d)(1)(A) and (B) of the Investment Company Act of 1940, DeAM will
echo vote proxies for ETFs in which Deutsche Bank holds more than 25% of
outstanding voting shares globally when required to do so by participation
agreements and SEC orders.

Affiliated Public Companies. For proxies solicited by non-investment company
issuers of or within the Deutsche Bank organization, e.g., Deutsche bank itself,
these proxies will be voted in the same proportion as the vote of other
shareholders (i.e., "mirror" or "echo" voting).

Note: With respect to the QP Trust (not registered under the Investment Company
Act of 1940), the Fund is not required to engage in echo voting and the
investment adviser will use these Guidelines, and may determine, with respect to
the QP Trust, to vote contrary to the positions in the Guidelines, consistent
with the Fund's best interest.

C.       Other Procedures That Limit Conflicts of Interest
         -------------------------------------------------

AM and other entities in the Deutsche Bank organization have adopted a number of
policies, procedures and internal controls that are designed to avoid various
conflicts of interest, including those that may arise in connection with proxy
voting, including:

o        Deutsche Bank Americas Restricted Activities Policy. This policy
         provides for, among other things, independence of AM employees from
         CIB, and information barriers between AM and other affiliates.
         Specifically, no AM employee may be subject to the supervision or
         control of any employee of CIB. No AM employee shall have his or her
         compensation based upon his or her contribution to any business
         activity within the Bank outside of the business of AM, without the
         prior approval of Legal or Compliance. Further, no employee of CIB
         shall have any input into the compensation of a AM employee without the
         prior approval of Legal or Compliance. Under the information barriers
         section of this policy, as a general rule, AM employees who are
         associated with the investment process should have no contact with
         employees of Deutsche Bank or its affiliates, outside of PCAM,
         regarding specific clients, business matters, or initiatives. Further,
         under no circumstances should proxy votes be discussed with any
         Deutsche Bank employee outside of AM (and should only be discussed on a
         need-to-know basis within AM).

Other relevant internal policies include the Deutsche Bank Americas Code of
Professional Conduct, the Deutsche Bank Americas Confidential and Inside
Information Policy, the Deutsche Asset Management Code of Ethics, the
Sarbanes-Oxley Senior Officer Code of Ethics, and the Deutsche Bank Group Code
of Conduct. The GPVSC expects that these policies, procedures and internal
controls will greatly reduce the chance that the GPVSC (or, its members) would
be involved in, aware of or influenced by, an actual or apparent conflict of
interest.


V.       RECORDKEEPING

At a minimum, the following types of records must be properly maintained and
readily accessible in order to evidence compliance with this policy.

o        AM will maintain a record of each vote cast by AM that includes among
         other things, company name, meeting date, proposals presented, vote
         cast and shares voted.

o        The Proxy Vendor Oversight maintains records for each of the proxy
         ballots it votes. Specifically, the records include, but are not
         limited to:

         --       The proxy statement (and any additional solicitation
                  materials) and relevant portions of annual statements.
         --       Any additional information considered in the voting process
                  that may be obtained from an issuing company, its agents or
                  proxy research firms.
         --       Analyst worksheets created for stock option plan and share
                  increase analyses.
         --       Proxy Edge print-screen of actual vote election.

o        AM will retain these Policies and Procedures and the Guidelines; will
         maintain records of client requests for proxy voting information; and
         will retain any documents the Proxy Vendor Oversight or the GPVSC
         prepared that were material to making a voting decision or that
         memorialized the basis for a proxy voting decision.

o        The GPVSC also will create and maintain appropriate records documenting
         its compliance with these Policies and Procedures, including records of
         its deliberations and decisions regarding conflicts of interest and
         their resolution.

o        With respect to AM's investment company clients, ISS will create and
         maintain records of each company's proxy voting record for 12-month
         periods ended June 30. AM will compile the following information for
         each matter relating to a portfolio security considered at any
         shareholder meeting held during the period covered by the report and
         with respect to which the company was entitled to vote:

         --       The name of the issuer of the portfolio security;
         --       The exchange ticker symbol of the portfolio security (if
                  symbol is available through reasonably practicable means);
         --       The Council on Uniform Securities Identification Procedures
                  number for the portfolio security (if the number is available
                  through reasonably practicable means);
         --       The shareholder meeting date;
         --       A brief identification of the matter voted on;
         --       Whether the matter was proposed by the issuer or by a security
                  holder;
         --       Whether the company cast its vote on the matter;
         --       How the company cast its vote (e.g., for or against proposal,
                  or abstain; for or withhold regarding election of directors);
                  and
         --       Whether the company cast its vote for or against management.

Note: This list is intended to provide guidance only in terms of the records
that must be maintained in accordance with this policy. In addition, please note
that records must be maintained in accordance with the applicable AM Records
Management Policy.

With respect to electronically stored records, "properly maintained" is defined
as complete, authentic (unalterable) usable and backed-up. At a minimum, records
should be retained for a period of not less than six years (or longer, if
necessary to comply with applicable regulatory requirements), the first three
years in an appropriate AM office.


VI.      THE GPVSC'S OVERSIGHT ROLE

In addition to adopting the Guidelines and making proxy voting decisions on
matters referred to it as set forth above, the GPVSC will monitor the proxy
voting process by reviewing summary proxy information presented by ISS. The
GPVSC will use this review process to determine, among other things, whether any
changes should be made to the Guidelines. This review will take place at least
quarterly and will be documented in the GPVSC's minutes.


                  Attachment A - Global Proxy Voting Guidelines

                                Table of contents

   I     Board Of Directors And Executives

         A        Election Of Directors

         B        Classified Boards Of Directors

         C        Board And Committee Independence

         D        Liability And Indemnification Of Directors

         E        Qualifications Of Directors

         F        Removal Of Directors And Filling Of Vacancies

         G        Proposals To Fix The Size Of The Board

         H        Proposals to Restrict Chief Executive Officer's Service on
                  Multiple Boards

         I        Proposals to Restrict Supervisory Board Members Service on
                  Multiple Boards

         J        Proposals to Establish Audit Committees

   II    Capital Structure

         A        Authorization Of Additional Shares

         B        Authorization Of "Blank Check" Preferred Stock

         C        Stock Splits/Reverse Stock Splits

         D        Dual Class/Supervoting Stock

         E        Large Block Issuance

         F        Recapitalization Into A Single Class Of Stock

         G        Share Repurchases

         H        Reductions In Par Value

   III   Corporate Governance Issues

         A        Confidential Voting

         B        Cumulative Voting

         C        Supermajority Voting Requirements

         D        Shareholder Right To Vote

   IV    Compensation

         A        Establishment of a Remuneration Committee

         B        Executive And Director Stock Option Plans

         C        Employee Stock Option/Purchase Plans

         D        Golden Parachutes

         E        Proposals To Limit Benefits Or Executive Compensation

         F        Option Expensing

         G        Management board election and motion

         H        Remuneration (variable pay)

         I        Long-term incentive plans

         J        Shareholder Proposals Concerning "Pay For Superior
                  Performance"

         K        Executive Compensation Advisory

   V     Anti-Takeover Related Issues

         A        Shareholder Rights Plans ("Poison Pills")

         B        Reincorporation

         C        Fair-Price Proposals

         D        Exemption From State Takeover Laws

         E        Non-Financial Effects Of Takeover Bids

   VI    Mergers & Acquisitions

   VII   Social & Political Issues

         A        Labor & Human Rights

         B        Diversity & Equality

         C        Health & Safety

         D        Government/Military

         E        Tobacco

   VIII  Environmental Issues

   IX    Miscellaneous Items

         A        Ratification Of Auditors

         B        Limitation Of Non-Audit Services Provided By Independent
                  Auditor

         C        Audit Firm Rotation

         D        Transaction Of Other Business

         E        Motions To Adjourn The Meeting

         F        Bundled Proposals

         G        Change Of Company Name

         H        Proposals Related To The Annual Meeting

         I        Reimbursement Of Expenses Incurred From Candidate Nomination

         J        Investment Company Proxies

         K        International Proxy Voting



These Guidelines may reflect a voting position that differs from the actual
practices of the public company (ies) within the Deutsche Bank organization or
of the investment companies for which AM or an affiliate serves as investment
adviser or sponsor.

NOTE: Because of the unique structure and regulatory scheme applicable to
closed-end investment companies, the voting guidelines (particularly those
related to governance issues) generally will be inapplicable to holdings of
closed-end investment companies. As a result, determinations on the appropriate
voting recommendation for closed-end investment company shares will be made on a
case-by-case basis.


I.       Board of Directors and Executives


A.       Election of Directors

Routine: AM Policy is to vote "for" the uncontested election of directors. Votes
for a director in an uncontested election will be withheld in cases where a
director has shown an inability to perform his/her duties in the best interests
of the shareholders.

Proxy contest: In a proxy contest involving election of directors, a
case-by-case voting decision will be made based upon analysis of the issues
involved and the merits of the incumbent and dissident slates of directors. AM
will incorporate the decisions of a third party proxy research vendor,
currently, Institutional Shareholder Services ("ISS") subject to review by the
Proxy Voting Sub-Committee (GPVSC) as set forth in the AM's Proxy Voting
Policies and Procedures.

Rationale: The large majority of corporate directors fulfill their fiduciary
obligation and in most cases support for management's nominees is warranted. As
the issues relevant to a contested election differ in each instance, those cases
must be addressed as they arise.


B.       Classified Boards of Directors

AM policy is to vote against proposals to classify the board and for proposals
to repeal classified boards and elect directors annually.

Rationale: Directors should be held accountable on an annual basis. By
entrenching the incumbent board, a classified board may be used as an
anti-takeover device to the detriment of the shareholders in a hostile take-over
situation.


C.       Board and Committee Independence

AM policy is to vote:

1.       "For" proposals that require that a certain percentage (majority up to
         66 2/3%) of members of a board of directors be comprised of independent
         or unaffiliated directors.

2.       "For" proposals that require all members of a company's compensation,
         audit, nominating, or other similar committees be comprised of
         independent or unaffiliated directors.

3.       "Against" shareholder proposals to require the addition of special
         interest, or constituency, representatives to boards of directors.

4.       "For" separation of the Chairman and CEO positions.

5.       "Against" proposals that require a company to appoint a Chairman who is
         an independent director.

Rationale: Board independence is a cornerstone of effective governance and
accountability. A board that is sufficiently independent from management assures
that shareholders' interests are adequately represented. However, the Chairman
of the board must have sufficient involvement in and experience with the
operations of the company to perform the functions required of that position and
lead the company.

No director qualifies as `independent' unless the board of directors
affirmatively determines that the director has no material relationship with the
listed company (either directly or as a partner, shareholder or officer of an
organization that has a relationship with the company).

Whether a director is in fact not "independent" will depend on the laws and
regulations of the primary market for the security and the exchanges, if any, on
which the security trades.


D.       Liability and Indemnification of Directors

AM policy is to vote "for" management proposals to limit directors' liability
and to broaden the indemnification of directors, unless broader indemnification
or limitations on directors' liability would effect shareholders' interests in
pending litigation.

Rationale: While shareholders want directors and officers to be responsible for
their actions, it is not in the best interests of the shareholders for them to
be to risk averse. If the risk of personal liability is too great, companies may
not be able to find capable directors willing to serve. We support expanding
coverage only for actions taken in good faith and not for serious violations of
fiduciary obligation or negligence.


E.       Qualifications of Directors

AM policy is to follow management's recommended vote on either management or
shareholder proposals that set retirement ages for directors or require specific
levels of stock ownership by directors.

Rationale: As a general rule, the board of directors, and not the shareholders,
is most qualified to establish qualification policies.


F.       Removal of Directors and Filling of Vacancies

AM policy is to vote "against" proposals that include provisions that directors
may be removed only for cause or proposals that include provisions that only
continuing directors may fill board vacancies.

Rationale: Differing state statutes permit removal of directors with or without
cause. Removal of directors for cause usually requires proof of self-dealing,
fraud or misappropriation of corporate assets, limiting shareholders' ability to
remove directors except under extreme circumstances. Removal without cause
requires no such showing.

Allowing only incumbent directors to fill vacancies can serve as an
anti-takeover device, precluding shareholders from filling the board until the
next regular election.


G.       Proposals to Fix the Size of the Board

AM policy is to vote:

1.       "For" proposals to fix the size of the board unless: (a) no specific
         reason for the proposed change is given; or (b) the proposal is part of
         a package of takeover defenses.

2.       "Against" proposals allowing management to fix the size of the board
         without shareholder approval.

Rationale: Absent danger of anti-takeover use, companies should be granted a
reasonable amount of flexibility in fixing the size of its board.


H.       Proposals to Restrict Chief Executive Officer's Service on Multiple
         Boards

AM policy is to vote "For" proposals to restrict a Chief Executive Officer from
serving on more than three outside boards of directors.

Rationale: Chief Executive Officer must have sufficient time to ensure that
shareholders' interests are represented adequately.

Note: A director's service on multiple closed-end fund boards within a fund
complex are treated as service on a single Board for the purpose of the proxy
voting guidelines.


I.       Proposals to Restrict Supervisory Board Members Service on Multiple
         Boards (For FFT Securities)

AM policy is to vote "for" proposals to restrict a Supervisory Board Member from
serving on more than five supervisory boards.

Rationale: We consider a strong, independent and knowledgeable supervisory board
as important counter-balance to executive management to ensure that the
interests of shareholders are fully reflected by the company.

Full information should be disclosed in the annual reports and accounts to allow
all shareholders to judge the success of the supervisory board controlling their
company.

Supervisory Board Member must have sufficient time to ensure that shareholders'
interests are represented adequately.

Note: A director's service on multiple closed-end fund boards within a fund
complex are treated as service on a single Board for the purpose of the proxy
voting guidelines.


J.       Proposals to Establish Audit Committees (For FFT and U.S. Securities)

AM policy is to vote "for" proposals that require the establishment of audit
committees.

Rationale: The audit committee should deal with accounting and risk management
related questions, verifies the independence of the auditor with due regard to
possible conflicts of interest. It also should determine the procedure of the
audit process.


II.      Capital Structure

A.       Authorization of Additional Shares (For U.S. Securities)

AM policy is to vote "for" proposals to increase the authorization of existing
classes of stock that do not exceed a 3:1 ratio of shares authorized to shares
outstanding for a large cap company, and do not exceed a 4:1 ratio of shares
authorized to shares outstanding for a small-midcap company (companies having a
market capitalization under one billion U.S. dollars.).

Rationale: While companies need an adequate number of shares in order to carry
on business, increases requested for general financial flexibility must be
limited to protect shareholders from their potential use as an anti-takeover
device. Requested increases for specifically designated, reasonable business
purposes (stock split, merger, etc.) will be considered in light of those
purposes and the number of shares required.


B.       Authorization of "Blank Check" Preferred Stock (For U.S. Securities)

AM policy is to vote:

1.       "Against" proposals to create blank check preferred stock or to
         increase the number of authorized shares of blank check preferred stock
         unless the company expressly states that the stock will not be used for
         anti-takeover purposes and will not be issued without shareholder
         approval.

2.       "For" proposals mandating shareholder approval of blank check stock
         placement.

Rationale: Shareholders should be permitted to monitor the issuance of classes
of preferred stock in which the board of directors is given unfettered
discretion to set voting, dividend, conversion and other rights for the shares
issued.


C.       Stock Splits/Reverse Stock Splits

AM policy is to vote "for" stock splits if a legitimate business purpose is set
forth and the split is in the shareholders' best interests. A vote is cast "for"
a reverse stock split only if the number of shares authorized is reduced in the
same proportion as the reverse split or if the effective increase in authorized
shares (relative to outstanding shares) complies with the proxy guidelines for
common stock increases (see, Section II.A, above.)

Rationale: Generally, stock splits do not detrimentally effect shareholders.
Reverse stock splits, however, may have the same result as an increase in
authorized shares and should be analyzed accordingly.


D.       Dual Class/Supervoting Stock

AM policy is to vote "against" proposals to create or authorize additional
shares of super-voting stock or stock with unequal voting rights.

Rationale: The "one share, one vote" principal ensures that no shareholder
maintains a voting interest exceeding their equity interest in the company.


E.       Large Block Issuance (For U.S. Securities)

AM policy is to address large block issuances of stock on a case-by-case basis,
incorporating the recommendation of an independent third party proxy research
firm (currently ISS) subject to review by the GPVSC as set forth in AM's Proxy
Policies and Procedures.

Additionally, AM supports proposals requiring shareholder approval of large
block issuances.

Rationale: Stock issuances must be reviewed in light of the business
circumstances leading to the request and the potential impact on shareholder
value.


F.       Recapitalization into a Single Class of Stock

AM policy is to vote "for" recapitalization plans to provide for a single class
of common stock, provided the terms are fair, with no class of stock being
unduly disadvantaged.

Rationale: Consolidation of multiple classes of stock is a business decision
that may be left to the board and/management if there is no adverse effect on
shareholders.


G.       Share Repurchases

AM policy is to vote "for" share repurchase plans provided all shareholders are
able to participate on equal terms.

Rationale: Buybacks are generally considered beneficial to shareholders because
they tend to increase returns to the remaining shareholders.


H.       Reductions in Par Value

AM policy is to vote "for" proposals to reduce par value, provided a legitimate
business purpose is stated (e.g., the reduction of corporate tax
responsibility.)

Rationale: Usually, adjustments to par value are a routine financial decision
with no substantial impact on shareholders.


III.     Corporate Governance Issues


A.       Confidential Voting

AM policy is to vote "for" proposals to provide for confidential voting and
independent tabulation of voting results and to vote "against" proposals to
repeal such provisions.

Rationale: Confidential voting protects the privacy rights of all shareholders.
This is particularly important for employee-shareholders or shareholders with
business or other affiliations with the company, who may be vulnerable to
coercion or retaliation when opposing management. Confidential voting does not
interfere with the ability of corporations to communicate with all shareholders,
nor does it prohibit shareholders from making their views known directly to
management.


B.       Cumulative Voting (For U.S. Securities)

AM policy is to vote "against" shareholder proposals requesting cumulative
voting and "for" management proposals to eliminate it. The protections afforded
shareholders by cumulative voting are not necessary when a company has a history
of good performance and does not have a concentrated ownership interest.
Accordingly, a vote is cast "against" cumulative voting and "for" proposals to
eliminate it if:

a)       The company has a five year return on investment greater than the
         relevant industry index,

b)       All directors and executive officers as a group beneficially own less
         than 10% of the outstanding stock, and

c)       No shareholder (or voting block) beneficially owns 15% or more of the
         company.

Thus, failure of any one of the three criteria results in a vote for cumulative
voting in accordance with the general policy.

Rationale: Cumulative voting is a tool that should be used to ensure that
holders of a significant number of shares may have board representation;
however, the presence of other safeguards may make their use unnecessary.


C.       Supermajority Voting Requirements

AM policy is to vote "against" management proposals to require a supermajority
vote to amend the charter or bylaws and to vote "for" shareholder proposals to
modify or rescind existing supermajority requirements.

*Exception made when company holds a controlling position and seeks to lower
threshold to maintain control and/or make changes to corporate by-laws.

Rationale: Supermajority voting provisions violate the democratic principle that
a simple majority should carry the vote. Setting supermajority requirements may
make it difficult or impossible for shareholders to remove egregious by-law or
charter provisions. Occasionally, a company with a significant insider held
position might attempt to lower a supermajority threshold to make it easier for
management to approve provisions that may be detrimental to shareholders. In
that case, it may not be in the shareholders interests to lower the
supermajority provision.


D.       Shareholder Right to Vote

AM policy is to vote "against" proposals that restrict the right of shareholders
to call special meetings, amend the bylaws, or act by written consent. Policy is
to vote "for" proposals that remove such restrictions.

Rationale: Any reasonable means whereby shareholders can make their views known
to management or effect the governance process should be supported.


IV.      Compensation

Annual Incentive Plans or Bonus Plans are often submitted to shareholders for
approval. These plans typically award cash to executives based on company
performance. Deutsche Bank believes that the responsibility for executive
compensation decisions rest with the board of directors and/or the compensation
committee, and its policy is not to second-guess the board's award of cash
compensation amounts to executives unless a particular award or series of awards
is deemed excessive. If stock options are awarded as part of these bonus or
incentive plans, the provisions must meet Deutsche Bank's criteria regarding
stock option plans, or similar stock-based incentive compensation schemes, as
set forth below.


A.       Establishment of a Remuneration Committee (For FFT Securities)

AM policy is to vote "for" proposals that require the establishment of a
remuneration committee.

Rationale: Corporations should disclose in each annual report or proxy statement
their policies on remuneration. Essential details regarding executive
remuneration including share options, long-term incentive plans and bonuses,
should be disclosed in the annual report, so that investors can judge whether
corporate pay policies and practices meet the standard.

The remuneration committee shall not comprise any board members and should be
sensitive to the wider scene on executive pay. It should ensure that
performance-based elements of executive pay are designed to align the interests
of shareholders.


B.       Executive and Director Stock Option Plans

AM policy is to vote "for" stock option plans that meet the following criteria:

(1)      The resulting dilution of existing shares is less than (a) 15 percent
         of outstanding shares for large capital corporations or (b) 20 percent
         of outstanding shares for small-mid capital companies (companies having
         a market capitalization under one billion U.S. dollars.)

(2)      The transfer of equity resulting from granting options at less than FMV
         is no greater than 3% of the over-all market capitalization of large
         capital corporations, or 5% of market cap for small-mid capital
         companies.

(3)      The plan does not contain express repricing provisions and, in the
         absence of an express statement that options will not be repriced; the
         company does not have a history of repricing options.

(4)      The plan does not grant options on super-voting stock.

AM will support performance-based option proposals as long as a) they do not
mandate that all options granted by the company must be performance based, and
b) only certain high-level executives are subject to receive the performance
based options.

AM will support proposals to eliminate the payment of outside director pensions.

Rationale: Determining the cost to the company and to shareholders of
stock-based incentive plans raises significant issues not encountered with
cash-based compensation plans. These include the potential dilution of existing
shareholders' voting power, the transfer of equity out of the company resulting
from the grant and execution of options at less than FMV and the authority to
reprice or replace underwater options. Our stock option plan analysis model
seeks to allow reasonable levels of flexibility for a company yet still protect
shareholders from the negative impact of excessive stock compensation.
Acknowledging that small mid-capital corporations often rely more heavily on
stock option plans as their main source of executive compensation and may not be
able to compete with their large capital competitors with cash compensation, we
provide slightly more flexibility for those companies.


C.       Employee Stock Option/Purchase Plans

AM policy is to vote for employee stock purchase plans (ESPP's) when the plan
complies with Internal Revenue Code 423, allowing non-management employees to
purchase stock at 85% of FMV.

AM policy is to vote "for" employee stock option plans (ESOPs) provided they
meet the standards for stock option plans in general. However, when computing
dilution and transfer of equity, ESOPs are considered independently from
executive and director option plans.

Rationale: ESOPs and ESPP's encourage rank-and-file employees to acquire an
ownership stake in the companies they work for and have been shown to promote
employee loyalty and improve productivity.


D.       Golden Parachutes

AM policy is to vote "for" proposals to require shareholder approval of golden
parachutes and for proposals that would limit golden parachutes to no more than
three times base compensation. Policy is to vote "against" more restrictive
shareholder proposals to limit golden parachutes.

Rationale: In setting a reasonable limitation, AM considers that an effective
parachute should be less attractive than continued employment and that the IRS
has opined that amounts greater than three times annual salary, are excessive.


E.       Proposals to Limit Benefits or Executive Compensation

AM policy is to vote "against"

1.       Proposals to limit benefits, pensions or compensation and

2.       Proposals that request or require disclosure of executive compensation
         greater than the disclosure required by Securities and Exchange
         Commission (SEC) regulations.

Rationale: Levels of compensation and benefits are generally considered to be
day-to-day operations of the company, and are best left unrestricted by
arbitrary limitations proposed by shareholders.


F.       Option Expensing

AM policy is to support proposals requesting companies to expense stock options.

Rationale: Although companies can choose to expense options voluntarily, the
Financial Accounting Standards Board (FASB) does not yet require it, instead
allowing companies to disclose the theoretical value of options as a footnote.
Because the expensing of stock options lowers earnings, most companies elect not
to do so. Given the fact that options have become an integral component of
compensation and their exercise results in a transfer of shareholder value, AM
agrees that their value should not be ignored and treated as "no cost"
compensation. The expensing of stock options would promote more modest and
appropriate use of stock options in executive compensation plans and present a
more accurate picture of company operational earnings.


G.        Management board election and motion (For FFT Securities)

AM policy is to vote "against":

o        the election of board members with positions on either remuneration or
         audit committees;

o        the election of supervisory board members with too many supervisory
         board mandates;

o        "automatic" election of former board members into the supervisory
         board.

Rationale: Management as an entity, and each of its members, are responsible for
all actions of the company, and are - subject to applicable laws and regulations
- accountable to the shareholders as a whole for their actions.

Sufficient information should be disclosed in the annual company report and
account to allow shareholders to judge the success of the company.


H.       Remuneration (variable pay): (For FFT Securities)

Executive remuneration for Management Board

AM policy is to vote "for" remuneration for Management Board that is transparent
and linked to results.

Rationale: Executive compensation should motivate management and align the
interests of management with the shareholders. The focus should be on criteria
that prevent excessive remuneration; but enable the company to hire and retain
first-class professionals.

Shareholder interests are normally best served when management is remunerated to
optimise long-term returns. Criteria should include suitable measurements like
return on capital employed or economic value added.

Interests should generally also be correctly aligned when management own shares
in the company - even more so if these shares represent a substantial portion of
their own wealth.

Its disclosure shall differentiate between fixed pay, variable (performance
related) pay and long-term incentives, including stock option plans with
valuation ranges as well as pension and any other significant arrangements.

Executive remuneration for Supervisory Board

AM policy is to vote "for" remuneration for Supervisory Board that is at least
50% in fixed form.

Rationale: It would normally be preferable if performance linked compensation
were not based on dividend payments, but linked to suitable result based
parameters. Consulting and procurement services should also be published in the
company report.


I.       Long-term incentive plans (For FFT Securities)

AM policy is to vote "for" long-term incentive plans for members of a management
board that reward for above average company performance.

Rationale: Incentive plans will normally be supported if they:

o        directly align the interests of members of management boards with those
         of shareholders;

o        establish challenging performance criteria to reward only above average
         performance;

o        measure performance by total shareholder return in relation to the
         market or a range of comparable companies;

o        are long-term in nature and encourage long-term ownership of the shares
         once exercised through minimum holding periods;

o        do not allow a repricing of the exercise price in stock option plans.


J.       Shareholder Proposals Concerning "Pay for Superior Performance"

AM policy is to address pay for superior performance proposals on a case-by-case
basis, incorporating the recommendation of an independent third party proxy
research firm (currently ISS) subject to review by the GPVSC as set forth in
AM's Proxy Policies and Procedures.

Rationale: While AM agrees that compensation issues are better left to the
discretion of management, they appreciate the need to monitor for excessive
compensation practices on a case by case basis. If, after a review of the ISS
metrics, AM is comfortable with ISS's applying this calculation and will vote
according to their recommendation.


K.       Executive Compensation Advisory

AM policy is to follow management's recommended vote on shareholder proposals to
propose an advisory resolution seeking to ratify the compensation of the
company's named executive officers (NEOs) on an annual basis.

Rationale: AM believes that controls exist within senior management and
corporate compensation committees, ensuring fair compensation to executives.
This might allow shareholders to require approval for all levels of management's
compensation.


V.       Anti-Takeover Related Issues


A.       Shareholder Rights Plans ("Poison Pills")

AM policy is to vote "for" proposals to require shareholder ratification of
poison pills or that request boards to redeem poison pills, and to vote
"against" the adoption of poison pills if they are submitted for shareholder
ratification.

Rationale: Poison pills are the most prevalent form of corporate takeover
defenses and can be (and usually are) adopted without shareholder review or
consent. The potential cost of poison pills to shareholders during an attempted
takeover outweighs the benefits.


B.       Reincorporation

AM policy is to examine reincorporation proposals on a case-by-case basis. The
voting decision is based on: (1) differences in state law between the existing
state of incorporation and the proposed state of incorporation; and (2)
differences between the existing and the proposed charter/bylaws/articles of
incorporation and their effect on shareholder rights. If changes resulting from
the proposed reincorporation violate the corporate governance principles set
forth in these guidelines, the reincorporation will be deemed contrary to
shareholder's interests and a vote cast "against."

Rationale: Reincorporations can be properly analyzed only by looking at the
advantages and disadvantages to their shareholders. Care must be taken that
anti-takeover protection is not the sole or primary result of a proposed change.


C.       Fair-Price Proposals

AM policy is to vote "for" management fair-price proposals, provided that: (1)
the proposal applies only to two-tier offers; (2) the proposal sets an objective
fair-price test based on the highest price that the acquirer has paid for a
company's shares; (3) the supermajority requirement for bids that fail the
fair-price test is no higher than two-thirds of the outstanding shares; (4) the
proposal contains no other anti-takeover provisions or provisions that restrict
shareholders rights.

A vote is cast for shareholder proposals that would modify or repeal existing
fair-price requirements that do not meet these standards.

Rationale: While fair price provisions may be used as anti-takeover devices, if
adequate provisions are included, they provide some protection to shareholders
who have some say in their application and the ability to reject those
protections if desired.


D.       Exemption from state takeover laws

AM policy is to vote "for" shareholder proposals to opt out of state takeover
laws and to vote "against" management proposals requesting to opt out of state
takeover laws.

Rationale: Control share statutes, enacted at the state level, may harm
long-term share value by entrenching management. They also unfairly deny certain
shares their inherent voting rights.


E.       Non-financial Effects of Takeover Bids

Policy is to vote "against" shareholder proposals to require consideration of
non-financial effects of merger or acquisition proposals.

Rationale: Non-financial effects may often be subjective and are secondary to
AM's stated purpose of acting in its client's best economic interest.


VI.      Mergers & Acquisitions

Evaluation of mergers, acquisitions and other special corporate transactions
(i.e., takeovers, spin-offs, sales of assets, reorganizations, restructurings
and recapitalizations) are performed on a case-by-case basis incorporating
information from an independent proxy research source (currently ISS.)
Additional resources including portfolio management and research analysts may be
considered as set forth in AM's Policies and Procedures.


VII.     Social, Environmental & Political Issues

Social and environmental issues are becoming increasingly important to corporate
success. We incorporate social and environmental considerations into both our
investment decisions and our proxy voting decisions - particularly if the
financial performance of the company could be impacted.

With increasing frequency, shareholder proposals are submitted relating to
social and political responsibility issues. Almost universally, the company
management will recommend a vote "against" these proposals. These types of
proposals cover an extremely wide range of issues. Many of the issues tend to be
controversial and are subject to more than one reasonable, yet opposing, theory
of support. More so than with other types of proxy proposals, social and
political responsibility issues may not have a connection to the economic and
corporate governance principles effecting shareholders' interests. AM's policy
regarding social and political responsibility issues, as with any other issue,
is designed to protect our client shareholders' economic interests.

Occasionally, a distinction is made between a shareholder proposal requesting
direct action on behalf of the board and a request for a report on (or
disclosure of) some information. In order to avoid unduly burdening any company
with reporting requirements, AM's policy is to vote against shareholder
proposals that demand additional disclosure or reporting than is required by the
Securities and Exchange Commission unless it appears there is a legitimate issue
and the company has not adequately addressed shareholders' concerns.


A.       Labor & Human Rights

AM policy is to vote "against" adopting global codes of conduct or workplace
standards exceeding those mandated by law.

Rationale: Additional requirements beyond those mandated by law are deemed
unnecessary and potentially burdensome to companies


B.       Diversity & Equality

1.       AM policy is to vote "against" shareholder proposals to force equal
         employment opportunity, affirmative action or board diversity.

Rationale: Compliance with State and Federal legislation along with information
made available through filings with the EEOC provides sufficient assurance that
companies act responsibly and make information public.

2.       AM policy is also to vote "against" proposals to adopt the Mac Bride
         Principles. The Mac Bride Principles promote fair employment,
         specifically regarding religious discrimination.

Rationale: Compliance with the Fair Employment Act of 1989 makes adoption of the
Mac Bride Principles redundant. Their adoption could potentially lead to charges
of reverse discrimination.


C.       Health & Safety

1.       AM policy is to vote "against" adopting a pharmaceutical price
         restraint policy or reporting pricing policy changes.

Rationale: Pricing is an integral part of business for pharmaceutical companies
and should not be dictated by shareholders (particularly pursuant to an
arbitrary formula.) Disclosing pricing policies may also jeopardize a company's
competitive position in the marketplace.

2.       AM policy is to vote "against" shareholder proposals to control the use
         or labeling of and reporting on genetically engineered products.

Rationale: Additional requirements beyond those mandated by law are deemed
unnecessary and potentially burdensome to companies.


D.       Government/Military

1.       AM policy is to vote against shareholder proposals regarding the
         production or sale of military arms or nuclear or space-based weapons,
         including proposals seeking to dictate a company's interaction with a
         particular foreign country or agency.

Rationale: Generally, management is in a better position to determine what
products or industries a company can and should participate in. Regulation of
the production or distribution of military supplies is, or should be, a matter
of government policy.

2.       AM policy is to vote "against" shareholder proposals regarding
         political contributions and donations.

Rationale: The Board of Directors and Management, not shareholders, should
evaluate and determine the recipients of any contributions made by the company.

3.       AM policy is to vote "against" shareholder proposals regarding
         charitable contributions and donations.

Rationale: The Board of Directors and Management, not shareholders, should
evaluate and determine the recipients of any contributions made by the company.


E.       Tobacco

1.       AM policy is to vote "against" shareholder proposals requesting
         additional standards or reporting requirements for tobacco companies as
         well as "against" requesting companies to report on the intentional
         manipulation of nicotine content.

Rationale: Where a tobacco company's actions meet the requirements of legal and
industry standards, imposing additional burdens may detrimentally effect a
company's ability to compete. The disclosure of nicotine content information
could affect the company's rights in any pending or future litigation.

2.       Shareholder requests to spin-off or restructure tobacco businesses will
         be opposed.

Rationale: These decisions are more appropriately left to the Board and
management, and not to shareholder mandate.


VIII.    Environmental Issues

AM policy is to follow management's recommended vote on CERES Principles or
other similar environmental mandates (e.g., those relating to Greenhouse gas
emissions or the use of nuclear power).

Rationale: Environmental issues are extensively regulated by outside agencies
and compliance with additional requirements often involves significant cost to
companies.


IX.      Miscellaneous Items


A.       Ratification of Auditors

AM policy is to vote "for" a) the management recommended selection of auditors
and b) proposals to require shareholder approval of auditors.

Rationale: Absent evidence that auditors have not performed their duties
adequately, support for management's nomination is warranted.

B.       Limitation of non-audit services provided by independent auditor

AM policy is to support proposals limiting non-audit fees to 50% of the
aggregate annual fees earned by the firm retained as a company's independent
auditor.

Rationale: In the wake of financial reporting problems and alleged audit
failures at a number of companies, AM supports the general principle that
companies should retain separate firms for audit and consulting services to
avoid potential conflicts of interest. However, given the protections afforded
by the recently enacted Sarbanes-Oxley Act of 2002 (which requires Audit
Committee pre-approval for non-audit services and prohibits auditors from
providing specific types of services), and the fact that some non-audit services
are legitimate audit-related services, complete separation of audit and
consulting fees may not be warranted. A reasonable limitation is appropriate to
help ensure auditor independence and it is reasonable to expect that audit fees
exceed non-audit fees.

C.       Audit firm rotation

AM policy is to support proposals seeking audit firm rotation unless the
rotation period sought is less than five years.

Rationale: While the Sarbanes-Oxley Act mandates that the lead audit partner be
switched every five years, AM believes that rotation of the actual audit firm
would provide an even stronger system of checks and balances on the audit
function.

D.       Transaction of Other Business

AM policy is to vote against "transaction of other business" proposals.

Rationale: This is a routine item to allow shareholders to raise other issues
and discuss them at the meeting. As the nature of these issues may not be
disclosed prior to the meeting, we recommend a vote against these proposals.
This protects shareholders voting by proxy (and not physically present at a
meeting) from having action taken at the meeting that they did not receive
proper notification of or sufficient opportunity to consider.

E.       Motions to Adjourn the Meeting

AM Policy is to vote against proposals to adjourn the meeting.

Rationale: Management may seek authority to adjourn the meeting if a favorable
outcome is not secured. Shareholders should already have had enough information
to make a decision. Once votes have been cast, there is no justification for
management to continue spending time and money to press shareholders for
support.

F.       Bundled Proposals

AM policy is to vote against bundled proposals if any bundled issue would
require a vote against it if proposed individually.

Rationale: Shareholders should not be forced to "take the good with the bad" in
cases where the proposals could reasonably have been submitted separately.

G.       Change of Company Name

AM policy is to support management on proposals to change the company name.

Rationale: This is generally considered a business decision for a company.

H.       Proposals Related to the Annual Meeting

AM Policy is to vote in favor of management for proposals related to the conduct
of the annual meeting (meeting time, place, etc.)

Rationale: These are considered routine administrative proposals.

I.       Reimbursement of Expenses Incurred from Candidate Nomination

AM policy is to follow management's recommended vote on shareholder proposals
related to the amending of company bylaws to provide for the reimbursement of
reasonable expenses incurred in connection with nominating one or more
candidates in a contested election of directors to the corporation's board of
directors.

Rationale: Corporations should not be liable for costs associated with
shareholder proposals for directors.

J.       Investment Company Proxies

Proxies solicited by investment companies are voted in accordance with the
recommendations of an independent third party, currently ISS. However, regarding
investment companies for which AM or an affiliate serves as investment adviser
or principal underwriter, such proxies are voted in the same proportion as the
vote of all other shareholders. Proxies solicited by master funds from feeder
funds will be voted in accordance with applicable provisions of Section 12 of
the Investment Company Act of 1940.

Investment companies, particularly closed-end investment companies, are
different from traditional operating companies. These differences may call for
differences in voting positions on the same matter. For example, AM could vote
"for" staggered boards of closed-end investment companies, although AM generally
votes "against" staggered boards for operating companies. Further, the manner in
which AM votes investment company proxies may differ from proposals for which a
AM-advised investment company solicits proxies from its shareholders. As
reflected in the Guidelines, proxies solicited by closed-end (and open-end)
investment companies are voted in accordance with the pre-determined guidelines
of an independent third-party.

Subject to participation agreements with certain Exchange Traded Funds ("ETF")
issuers that have received exemptive orders from the U.S. Securities and
Exchange Commission allowing investing DWS funds to exceed the limits set forth
in Section 12(d)(1)(A) and (B) of the Investment Company Act of 1940, DeAM will
echo vote proxies for ETFs in which Deutsche Bank holds more than 25% of
outstanding voting shares globally when required to do so by participation
agreements and SEC orders.

Note: With respect to the QP Trust (not registered under the Investment Company
Act of 1940), the Fund is not required to engage in echo voting and the
investment adviser will use these Guidelines, and may determine, with respect to
the QP Trust, to vote contrary to the positions in the Guidelines, consistent
with the Fund's best interest.


K.       International Proxy Voting

The above guidelines pertain to issuers organized in the United States, Canada
and Germany. Proxies solicited by other issuers are voted in accordance with
international guidelines or the recommendation of ISS and in accordance with
applicable law and regulation.



                      APPENDIX B -- RATINGS OF INVESTMENTS


Standard & Poor's Corporation Bond Ratings

AAA. Debt rated AAA had the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.

AA. Debt rated AA has a very strong capacity to pay interest and repay principal
and differs from the higher rated issues only in small degree.

A. Debt rated A has a strong capacity to pay interest and repay principal
although it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher rated categories.

BBB. Debt rated BBB is regarded as having an adequate capacity to pay interest
and repay principal. Whereas it normally exhibits adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category than in higher rated categories.

BB, B, CCC, CC and C. Debt rated BB, B, CCC, CC and C is regarded, on balance,
as predominantly speculative with respect to capacity to pay interest and repay
principal in accordance with the terms of the obligation. BB indicates the
lowest degree of speculation and C the highest degree of speculation. While such
debt will likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major risk exposures to adverse conditions.

CI. The rating CI is reserved for income bonds on which no interest is being
paid.

D. Debt rated D is in default, and payment of interest and/or repayment of
principal is in arrears.

Moody's Investors Service, Inc. Bond Ratings

AAA. Bonds which are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as
"gilt-edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Aa. Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high-grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present which make
the long term risks appear somewhat larger than in Aaa securities.

A. Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.

Baa. Bonds which are rated Baa are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Ba. Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.

B. Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.

Caa. Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca. Bonds which are rated Ca represent obligations which are speculative in a
high degree. Such issues are often in default or have other marked shortcomings.

C. Bonds which are rated C are the lowest rated class of bonds and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.

Fitch Long-Term Debt Ratings

AAA. Highest credit quality. "AAA" ratings denote the lowest expectation of
credit risk. They are assigned only in case of exceptionally strong capacity for
timely payment of financial commitments. This capacity is highly unlikely to be
adversely affected by foreseeable events.

AA. Very high credit quality. "AA"` ratings denote a very low expectation of
credit risk. They indicate very strong capacity for timely payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable
events.

A. High credit quality. "A" ratings denote a low expectation of credit risk. The
capacity for timely payment of financial commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to changes in circumstances or in
economic conditions than is the case for higher ratings.

BBB. Good credit quality. "BBB" ratings indicate that there is currently a low
expectation of credit risk. The capacity for timely payment of financial
commitments is considered adequate, but adverse changes in circumstances and in
economic conditions are more likely to impair this capacity. This is the lowest
investment-grade category.

BB. Speculative. "BB" ratings indicate that there is a possibility of credit
risk developing, particularly as the result of adverse economic change over
time; however, business or financial alternatives may be available to allow
financial commitments to be met. Securities rated in this category are not
investment grade.

B. Highly speculative. "B" ratings indicate that significant credit risk is
present, but a limited margin of safety remains. Financial commitments are
currently being met; however, capacity for continued payment is contingent upon
a sustained, favorable business and economic environment.

CCC, CC, C. High default risk. Default is a real possibility. Capacity for
meeting financial commitments is solely reliant upon sustained, favorable
business or economic developments. A "CC" rating indicates that default of some
kind appears probable. "C" ratings signal imminent default.

DDD, DD, D. Default. The ratings of obligations in this category are based on
their prospects for achieving partial or full recovery in a reorganization or
liquidation of the obligor. While expected recovery values are highly
speculative and cannot be estimated with any precision, the following serve as
general guidelines. "DDD" obligations have the highest potential for recovery,
around 90%-100% of outstanding amounts and accrued interest. "DD" indicates
potential recoveries in the range of 50%-90%, and "D" the lowest recovery
potential, i.e., below 50%.

Entities rated in this category have defaulted on some or all of their
obligations. Entities rated "DDD" have the highest prospect for resumption of
performance or continued operation with or without a formal reorganization
process. Entities rated "DD" and "D" are generally undergoing a formal
reorganization or liquidation process; those rated "DD" are likely to satisfy a
higher portion of their outstanding obligations, while entities rated "D" have a
poor prospect for repaying all obligations.

Fitch Short-Term Debt Ratings

F1. Highest credit quality. Indicates the Best capacity for timely payment of
financial commitments; may have an added "+" to denote any exceptionally strong
credit feature.

F2. Good credit quality. A satisfactory capacity for timely payment of financial
commitments, but the margin of safety is not as great as in the case of the
higher ratings.

F3. Fair credit quality. The capacity for timely payment of financial
commitments is adequate; however, near-term adverse changes could result in a
reduction to non-investment grade.

B. Speculative. Minimal capacity for timely payment of financial commitments,
plus vulnerability to near-term adverse changes in financial and economic
conditions.

C. High default risk. Default is a real possibility. Capacity for meeting
financial commitments is solely reliant upon a sustained, favorable business and
economic environment.

D. Default. Denotes actual or imminent payment default.

Commercial Paper Ratings

Commercial paper rated by Standard & Poor's Ratings Services ("S&P") has the
following characteristics: Liquidity ratios are adequate to meet cash
requirements. Long-term senior debt is rated "A" or better. The issuer has
access to at least two additional channels of borrowing. Basic earnings and cash
flow have an upward trend with allowance made for unusual circumstances.
Typically, the issuer's industry is well established and the issuer has a strong
position within the industry. The reliability and quality of management are
unquestioned. Relative strength or weakness of the above factors determine
whether the issuer's commercial paper is rated A-1 or A-2.

The ratings Prime-1 and Prime-2 are the two highest commercial paper ratings
assigned by Moody's Investors Service, Inc. ("Moody's"). Among the factors
considered by it in assigning ratings are the following: (1) evaluation of the
management of the issuer; (2) economic evaluation of the issuer's industry or
industries and an appraisal of speculative-type risks which may be inherent in
certain areas; (3) evaluation of the issuer's products in relation to
competition and customer acceptance; (4) liquidity; (5) amount and quality of
long-term debt; (6) trend of earnings over a period of ten years; (7) financial
strength of a parent company and the relationships which exist with the issuer;
and (8) recognition by the management of obligations which may be present or may
arise as a result of public interest questions and preparations to meet such
obligations. Relative strength or weakness of the above factors determines
whether the issuer's commercial paper is rated Prime-1 or 2.

Municipal Notes

Moody's: The highest ratings for state and municipal short-term obligations are
"MIG 1," "MIG 2," and "MIG 3" (or "VMIG 1," "VMIG 2" and "VMIG 3" in the case of
an issue having a variable rate demand feature). Notes rated "MIG 1" or "VMIG 1"
are judged to be of the "best quality". Notes rated "MIG 2" or "VMIG 2" are of
"high quality," with margins or protection "ample although not as large as in
the preceding group". Notes rated "MIG 3" or "VMIG 3" are of "favorable
quality," with all security elements accounted for but lacking the strength of
the preceding grades.

S&P: The "SP-1" rating reflects a "very strong or strong capacity to pay
principal and interest". Notes issued with "overwhelming safety characteristics"
will be rated "SP-1+". The "SP-2" rating reflects a "satisfactory capacity" to
pay principal and interest.

Fitch: The highest ratings for state and municipal short-term obligations are
"F-1+," "F-1," and "F-2."



<PAGE>

                             DWS TARGET DATE SERIES




                         DWS LifeCompass Retirement Fund

                                     Class S

                            DWS LifeCompass 2015 Fund

                                     Class S

                            DWS LifeCompass 2020 Fund

                                     Class S

                            DWS LifeCompass 2030 Fund

                                     Class S

                            DWS LifeCompass 2040 Fund
                                     Class S









                       STATEMENT OF ADDITIONAL INFORMATION


                                December 1, 2008

This combined Statement of Additional Information ("SAI") is not a prospectus
and should be read in conjunction with the combined prospectus (the
"Prospectus") dated December 1,2008, for Class S shares (the "Shares"), as
amended from time to time, for DWS LifeCompass Retirement Fund, DWS LifeCompass
2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS
LifeCompass 2040 Fund (each a "Fund" and collectively the "Funds"), each a
series of DWS Target Date Series (the "Trust"), copies of which may be obtained
without charge by contacting DWS Investments Distributors, Inc., 222 South
Riverside Plaza, Chicago, Illinois 60606, or calling (800) 621-1148, or from the
firm from which this SAI was obtained and are available along with other
materials on the Securities and Exchange Commission's ("SEC") Internet Web site
(http://www.sec.gov).

Portions of the Annual Report to Shareholders of each Fund, dated August 31,
2008, are incorporated herein by reference and are deemed to be part of this SAI
as specified herein. A copy of each Fund's Annual Report may be obtained without
charge by calling the Fund at the toll-free number (800) 728-3337.

This SAI is incorporated by reference into the Prospectus for Class S shares of
the Funds.



                                TABLE OF CONTENTS
                                                                            Page

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

INVESTMENT POLICIES AND TECHNIQUES FOR THE FUNDS...............................2

INVESTMENT POLICIES AND TECHNIQUES OF THE UNDERLYING DWS FUNDS................14
   Portfolio Holdings ........................................................66

MANAGEMENT OF THE FUNDS.......................................................68
   Investment Advisor.........................................................68

FUND SERVICE PROVIDERS........................................................93
   Administrator..............................................................93
   Underwriter................................................................94
   Custodian..................................................................95
   Transfer Agent and Shareholder Service Agent...............................95
   Legal Counsel..............................................................97
   Independent Registered Public Accounting Firm and Reports to Shareholders..97

PORTFOLIO TRANSACTIONS........................................................97

PURCHASE OR REDEMPTION OF SHARES.............................................102

DIVIDENDS....................................................................117

TAXES........................................................................118

NET ASSET VALUE..............................................................128

TRUSTEES AND OFFICERS........................................................128

TRUST ORGANIZATION...........................................................154

PROXY VOTING GUIDELINES......................................................155

FINANCIAL STATEMENTS.........................................................157

ADDITIONAL INFORMATION.......................................................157

APPENDIX A -- PROXY VOTING GUIDELINES........................................159

APPENDIX B -- RATINGS OF INVESTMENTS.........................................184



                             INVESTMENT RESTRICTIONS

Except as otherwise indicated, each Fund's investment objective and policies are
not fundamental and may be changed without a vote of shareholders. There can be
no assurance that a Fund's objective will be met.

Any investment restrictions herein which involve a maximum percentage of
securities or assets shall not be considered to be violated unless an excess
over the percentage occurs immediately after, and is caused by, an acquisition
or encumbrance of securities or assets of, or borrowings by, a Fund.


Each Fund has elected to be classified as a diversified series of an open-end
investment management company. A diversified fund may not, with respect to 75%
of total assets, invest more than 5% of total assets in the securities of a
single issuer (other than US government securities or securities of investment
companies) or invest in more than 10% of the outstanding voting securities of
such issuer.


Fundamental Restrictions

As a matter of fundamental policy, each Fund may not:
(1)       borrow money, except as permitted under the Investment Company Act of
          1940 (the "1940 Act"), as amended, and as interpreted or modified by
          regulatory authority having jurisdiction, from time to time;

(2)       issue senior securities, except as permitted under the 1940 Act, as
          amended, and as interpreted or modified by regulatory authority having
          jurisdiction, from time to time;

(3)       engage in the business of underwriting securities issued by others,
          except to the extent that a Fund may be deemed to be an underwriter in
          connection with the disposition of portfolio securities;

(4)       concentrate its investments in a particular industry, as that term is
          used in the 1940 Act, as amended, and as interpreted or modified by
          regulatory authority having jurisdiction, from time to time; except
          that each Fund may concentrate in an Underlying DWS Fund. However,
          each Underlying DWS Fund in which each Fund will invest may
          concentrate its investments in a particular industry;

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

(6)       purchase or sell commodities, except as permitted by the 1940 Act, as
          amended, and as interpreted or modified by the regulatory authority
          having jurisdiction, from time to time; or

(7)       make loans except as permitted under the 1940 Act, as amended, and as
          interpreted or modified by regulatory authority having jurisdiction,
          from time to time.

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


Non-Fundamental Restrictions


The Trustees of the Trust have voluntarily adopted certain policies and
restrictions, which are observed in the conduct of each Fund's affairs. These
represent intentions of the Trustees based upon current circumstances. Such
non-fundamental policies may be changed or amended by the Trustees of the Trust
without prior notice to or approval of shareholders.

As a matter of non-fundamental policy, each Fund currently does not intend to:

(a)      invest in companies for the purpose of exercising management or
         control;

(b)      borrow money in an amount greater than 5% of its total assets except
         (i) for temporary or emergency purposes and (ii) by engaging in reverse
         repurchase agreements, dollar rolls, or other investments or
         transactions described in a Fund's registration statement which may be
         deemed to be borrowings;

The Funds will not purchase illiquid securities, including time deposits and
repurchase agreements maturing in more than seven days if, as a result thereof,
more than 10% of a Fund's net assets valued at the time of the transaction would
be invested in such securities.

To meet federal tax requirements for qualification as a regulated investment
company, each Fund must limit its investments so that at the close of each
quarter of its taxable year (1) no more than 25% of its total assets are
invested in the securities (other than US Government securities or securities of
a regulated investment company) of (a) a single issuer or two or more issuers
which the Fund controls and which are engaged in the same, similar or related
trades or businesses, or (b) in the securities of one or more qualified publicly
traded partnerships (as discussed in "Taxes," below), and (2) at least 50% of
its total assets is represented by cash, government securities, securities of
other regulated investment companies, and other securities of any issuer that
does not represent more than 5% of the Fund's assets or more than 10% of the
issuer's outstanding voting securities.

                INVESTMENT POLICIES AND TECHNIQUES FOR THE FUNDS

General Investment Objectives and Policies

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

The Funds are professionally managed portfolios which allocate their investments
among select funds in the DWS Family of Funds (the "Underlying DWS Funds") and
securities of non-affiliated investment companies (e.g., Exchange Traded Funds).
Descriptions in this Statement of Additional Information of a particular
investment practice or technique in which the Underlying DWS Funds may engage
(such as short selling, hedging, etc.) or a financial instrument which the
Underlying DWS Funds may purchase (such as options, etc.) are meant to describe
the spectrum of investments that the Advisor in its discretion, might, but is
not required to, use in managing a fund's assets. The Advisor may, in its
discretion, at any time employ such practice, technique or instrument for one or
more funds, but not for all funds advised by it. Furthermore, it is possible
that certain types of financial instruments or investment techniques described
herein may not be available, permissible, economically feasible or effective for
their intended purposes in all markets. Certain practices, techniques, or
instruments may not be principal activities of a fund, but, to the extent
employed, could from time to time have a material impact on a fund's
performance. It is possible that certain investment practices and techniques
described below may not be permissible for a Fund based on its investment
restrictions, as described herein, and in the Fund's applicable Prospectus.

The Funds may each borrow money for temporary, emergency or other purposes,
including investment leverage purposes, as determined by the Trustees. The 1940
Act requires borrowings to have 300% asset coverage. The Funds may each also
enter into reverse repurchase agreements.

Exchange Traded Funds. In addition to investing in DWS Funds, the Funds may
invest in Exchange Traded Funds ("ETFs") up to the maximum amount allowable
under the 1940 Act, when the desired economic exposure to a particular market or
sector is not available through a DWS Fund. ETFs are typically open-end
investment companies, unit investment trusts or depositary receipts, listed on a
stock exchange. The Funds might do so as a way of gaining exposure to the
segment of the equity or fixed-income markets represented by the ETFs'
portfolio. Each Fund will indirectly bear its proportionate share of any
management or other fees by an ETF in which it invests.

For example, a Fund may invest in a variety of ETFs which seek to track the
composition and performance of specific indexes or a specific portion of an
index. These index-based investments hold substantially all of their assets in
securities representing their specific index. Accordingly, the main risk of
investing in index-based investments is the same as investing in a portfolio of
equity securities comprising the index. The market prices of index-based
investments will fluctuate in accordance with both changes in the market value
of their underlying portfolio securities and due to supply and demand for the
instruments on the exchanges on which they are traded (which may result in their
trading at a discount or premium to their NAVs). Index-based investments may not
replicate exactly the performance of their specified index because of
transaction costs and because of the temporary unavailability of certain
component securities of the index. In addition, an index-based investment
tracking a specific sector may be adversely affected by the performance of that
specific sector or group of industries on which it is based.

Examples of index-based ETFs include:

SPDRs(R): SPDRs, an acronym for "Standard & Poor's Depositary Receipts," are
based on the S&P 500 Composite Stock Price Index. They are issued by the SPDR
Trust, a unit investment trust that holds shares of substantially all the
companies in the S&P 500 Index in substantially the same weighting and seeks to
closely track the price performance and dividend yield of the Index.

MidCap SPDRs(R): MidCap SPDRs are based on the S&P MidCap 400 Index. They are
issued by the MidCap SPDR Trust, a unit investment trust that holds a portfolio
of securities consisting of substantially all of the common stocks in the S&P
MidCap 400 Index in substantially the same weighting and seeks to closely track
the price performance and dividend yield of the Index.

Select Sector SPDRs(R): Select Sector SPDRs are based on a particular sector or
group of industries that are represented by a specified Select Sector Index
within the Standard & Poor's Composite Stock Price Index. They are issued by The
Select Sector SPDR Trust, an open-end management investment company with nine
portfolios that each seeks to closely track the price performance and dividend
yield of a particular Select Sector Index.

DIAMONDS(SM): DIAMONDS are based on the Dow Jones Industrial Average(SM). They
are issued by the DIAMONDS Trust, a unit investment trust that holds a portfolio
of all the component common stocks of the Dow Jones Industrial Average and seeks
to closely track the price performance and dividend yield of the Dow.

Nasdaq-100 Shares: Nasdaq-100 Shares are based on the Nasdaq 100 Index. They are
issued by the Nasdaq-100 Trust, a unit investment trust that holds a portfolio
consisting of substantially all of the securities, in substantially the same
weighting, as the component stocks of the Nasdaq-100 Index and seeks to closely
track the price performance and dividend yield of the Index.

In addition, each Fund may allocate cash balances for cash management purposes
or as part of its investment strategy among affiliated funds including money
market funds, short-term bond funds and Cash Management QP Trust or one or more
affiliated entities as described below.


Investment of Uninvested Cash Balances. The Funds may each have cash balances
that have not been invested in portfolio securities, as appropriate, or in the
underlying portfolios ("Uninvested Cash"). Uninvested Cash may result from a
variety of sources, including dividends or interest received from investments,
reserves held for investment strategy purposes, liquidation of investment
securities to meet anticipated redemptions and dividend payments, and new cash
received from investors. In addition, the Funds may invest a portion of their
assets in money market securities or other short term obligations as part of
their investment strategy. Pursuant to an Exemptive Order issued by the SEC,
each Fund may use Uninvested Cash to purchase shares of affiliated funds
including money market funds, short-term bond funds and Cash Management QP Trust
or one or more future entities for which DIMA acts as trustee or investment
advisor that operate as cash management investment vehicles and that are
excluded from the definition of investment company pursuant to Section 3(c)(1)
or 3(c)(7) of the 1940 Act (collectively, the "Central Funds") in excess of the
limitations of Section 12(d)(1) of the 1940 Act. Investment by each Fund in
shares of the Central Funds will be in accordance with Fund's investment
policies and restrictions as set forth in its registration statement.


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

Each Fund will invest Uninvested Cash in Central Funds only to the extent that
each Fund's aggregate direct investment in the Central Funds does not exceed 25%
of its total assets in shares of the Central Funds, which would not include
investments in the Central Funds that may be made by underlying portfolios in
which the Funds invest. Purchase and sales of shares of Central Funds are made
at net asset value.



The Underlying DWS Funds

Each Fund will purchase or sell shares in the Underlying DWS Funds to: (a)
accommodate purchases and sales of the Fund's shares, (b) change the percentages
of the Fund's assets invested in each of the Underlying DWS Funds in response to
changing market conditions, and (c) maintain or modify the allocation of the
Fund's assets in accordance with the Fund's target date.

The managers will allocate Fund assets among Underlying DWS Funds based on the
Fund's target investment horizon, current or expected market conditions or to
manage risk. The Underlying DWS Funds have been selected to represent a broad
spectrum of investment options for the Funds.

Risk Factors of Underlying DWS Funds


In pursuing their investment objectives, each of the Underlying DWS Funds is
permitted to engage in investment strategies in a wide range of investment
techniques. The Underlying DWS Funds' risks are determined by the nature of the
securities held and the portfolio management strategies used by the Advisor.
Further information about the Underlying DWS Funds is contained in the
prospectuses and statements of additional information of such funds. Because
each Fund invests in certain of the Underlying DWS Funds, shareholders of each
Fund will be affected by the portfolio management strategies and investment
policies of the Underlying DWS Funds in direct proportion to the amount of
assets the Fund allocates to each Underlying DWS Fund.


The following are the Underlying DWS Funds in which the Funds may invest.


DWS Blue Chip Fund. The fund seeks growth of capital and of income. Under normal
circumstances, the fund invests at least 80% of net assets, plus the amount of
any borrowings for investment purposes, in common stocks of large US companies
that are similar in size to the companies in the S&P 500 Index and that the
portfolio managers consider to be "blue chip" companies. Blue chip companies are
large, well-known companies that typically have an established earnings and
dividends history, easy access to credit, solid positions in their industry and
strong management.

DWS Capital Growth Fund. The fund seeks to provide long-term growth of capital.
The fund normally invests at least 65% of total assets in equities, mainly
common stocks of US companies. Although the fund can invest in companies of any
size, it generally focuses on established companies that are similar in size to
the companies in the Standard & Poor's 500 Composite Stock Price Index (the "S&P
500 Index") or the Russell 1000(R) Growth Index. Although the fund may invest in
companies of any size, the fund intends to invest primarily in companies whose
market capitalizations fall within the range of the S&P 500 Index or the Russell
1000(R) Growth Index.

DWS Commodity Securities Fund. The fund's investment objective is capital
appreciation. The fund seeks to achieve its investment objective by focusing on
commodity-related securities and equity-related securities, including
commodity-related structured notes and similar instruments, that the advisor
believes are undervalued but have favorable prospects for appreciation.

DWS Disciplined Market Neutral Fund. The fund seeks capital appreciation
independent of stock market direction. It pursues its objective by investing,
under normal circumstances, in long and short positions of common stock of large
US companies. The managers buy, or take, long positions in common stock that the
managers believe are undervalued and sell, or take, short positions in common
stock that the managers believe are overvalued.

DWS Disciplined Long/Short Growth Fund. The fund seeks capital appreciation. The
fund intends to hold approximately 80%-130% of its net assets in long positions
in stocks that the portfolio managers believe will outperform the market and
approximately 0%-30% of its net assets in short positions in stocks that the
portfolio managers believe will underperform the market. In addition, the fund
intends to borrow up to 30% of its net assets for investment purposes.

DWS Disciplined Long/Short Value Fund. The fund seeks capital appreciation. The
fund intends to hold approximately 80%-130% of its net assets in long positions
in stocks that the portfolio managers believe will outperform the market and
approximately 0%-30% of its net assets in short positions in stocks that the
portfolio managers believe will underperform the market. In addition, the fund
intends to borrow up to 30% of its net assets for investment purposes.

DWS Emerging Markets Equity Fund. The fund seeks long-term growth of capital.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in emerging market
equities (equities traded mainly in emerging markets or issued by companies that
are organized in emerging markets or have more than half of their business
there). The fund invests primarily in common stocks. The fund may invest up to
20% of net assets in equities from the US or other developed markets. The fund
may also invest up to 20% of net assets in US or emerging market debt securities
when portfolio management believes these securities may perform at least as well
as equities.

DWS Emerging Markets Fixed Income Fund. The fund seeks to provide high current
income and, secondarily, long-term capital appreciation. Under normal
circumstances, the fund invests at least 80% of net assets, plus the amount of
any borrowings for investment purposes, in high yield bonds (also known as "junk
bonds") and other debt securities issued by governments and corporations in
emerging market countries (i.e., the issuer is traded mainly in an emerging
market, is organized under the laws of an emerging market country or is a
company with more than half of its business in emerging markets) or the return
on which is derived primarily from emerging markets. To help manage risk, the
fund invests at least 50% of total assets in US dollar-denominated securities.
The fund also does not invest more than 40% of total assets in any one country.
The fund may invest up to 20% of net assets in debt securities from developed
markets and up to 20% of net assets in US debt securities including those that
are rated below investment-grade.


DWS Equity 500 Index Fund. The fund seeks to replicate, as closely as possible,
before the deduction of expenses, the performance of the Standard & Poor's 500
Composite Stock Price Index (the "S&P 500 Index"), which emphasizes stocks of
large US companies. The fund invests for capital appreciation, not income; any
dividend and interest income is incidental to the pursuit of its objective. The
fund is a feeder fund in a master/feeder fund arrangement. The fund pursues its
investment objective by investing all of its assets in a master portfolio, DWS
Equity 500 Index Portfolio, with the same investment objective as the fund.
Under normal circumstances, the fund through DWS Equity 500 Index Portfolio
intends to invest at least 80% of its assets, determined at the time of
purchase, in stocks of companies included in the S&P 500 Index and in derivative
instruments, such as futures contracts and options, that provide exposure to the
stocks of companies in the S&P 500 Index.




DWS Communications Fund. The fund seeks to maximize total return. Under normal
circumstances, the fund will invest at least 80% of its net assets, plus the
amount of any borrowings for investment purposes (measured at the time of
investment), in securities of companies in the communications field. The fund
normally focuses on the securities of US and foreign companies that are engaged
in the research, development, manufacture or sale of communications services,
technology, equipment or products.

DWS Core Fixed Income Fund. The fund seeks to maximize total return consistent
with preservation of capital and prudent investment management, by investing for
both current income and capital appreciation. Under normal circumstances, the
fund invests at least 80% of its assets, determined at the time of purchase, in
fixed income securities. Fixed income securities include those of the US
Treasury, as well as US government agencies and instrumentalities, corporate,
mortgage-backed and asset-backed securities, taxable municipal and tax-exempt
municipal bonds and liquid Rule 144A securities.

DWS Floating Rate Plus Fund. The fund seeks to provide high current income. The
fund invests, under normal circumstances, at least 80% of its total assets in
adjustable rate loans that have a senior right to payment ("Senior Loans") and
other floating rate debt securities. The fund may acquire senior loans of
borrowers engaged in any industry, but will invest no more than 25% of its total
assets in senior loans of borrowers and securities of issuers in any one
industry. Under normal market conditions, up to 20% of the fund's total assets
may be held in cash and other investments, including, but not limited to,
fixed-rate debt obligations, short- to medium-term notes, high-yield securities,
equity securities, hybrid and synthetic loans, collateralized loan obligations,
and asset backed securities.

DWS Global Thematic Fund. The fund seeks long-term growth of capital. The fund
invests at least 65% of its total assets in US and foreign equities (equities
issued by US and foreign-based companies). Most of the fund's equities are
common stocks. Although the fund can invest in companies of any size and from
any country, it invests mainly in common stocks of established companies in
countries with developed economies.

DWS Global Bond Fund. The fund seeks total return, with an emphasis on current
income; capital appreciation is a secondary goal. Under normal circumstances,
the fund invests at least 80% of net assets, plus the amount of any borrowings
for investment purposes, in bonds of issuers from around the world, including
the United States. The fund can buy many types of income-producing securities,
among them US and foreign government bonds, corporate bonds and mortgage- and
asset-backed securities.

DWS Global Opportunities Fund. The fund seeks above-average capital appreciation
over the long term. The fund invests at least 65% of total assets in common
stocks and other equities of small companies throughout the world (companies
with market values similar to the smallest 20% of the Citigroup Broad Market
Index). While the fund may invest in securities in any country, it generally
focuses on countries with developed economies (including the US). As of December
31, 2007, companies in which the fund invests typically have a market
capitalization of between $500 million and $5 billion at the time of purchase.
As part of the investment process (and low turnover strategy) the fund may own
stocks even though they exceed the market capitalization level. The fund may
invest up to 35% of total assets in common stocks and other equities of large
companies or in debt securities (of which 5% of net assets may be junk bonds,
i.e., grade BB/Ba and below).

DWS GNMA Fund. The fund seeks to produce a high level of income. It does this by
investing, under normal circumstances, at least 80% of net assets, plus the
amount of any borrowings for investment purposes, in "Ginnie Maes," which are
mortgage-backed securities that are issued or guaranteed by the Government
National Mortgage Association (GNMA). The balance of the fund's assets, among
other permitted investments, may be invested in securities issued by the US
government, its agencies or instrumentalities. These securities may not be
guaranteed by the US Treasury or backed by the full faith and credit of the US
government. The fund may also hold up to 10% of its total net assets in
uninvested cash, cash equivalents (such as money market securities), repurchase
agreements or shares of money market funds or short-term bond funds, which
investments may not be issued or guaranteed by the US government, its agencies
or instrumentalities.

DWS Gold & Precious Metals Fund. The fund seeks maximum return (principal change
and income). The fund invests at least 80% of net assets, plus the amount of any
borrowings for investment purposes, in common stocks and other equities of US
and foreign companies engaged in activities related to gold, silver, platinum or
other precious metals, and in gold coin and bullion directly. These companies
may be involved in activities such as exploration, mining, fabrication,
processing and distribution. While the fund invest mainly in common stocks, it
may invest up to 20% of net assets in high-quality debt securities of companies
in precious metals and minerals operations, and debt securities whose return is
linked to precious metals prices.

DWS Europe Equity Fund. The fund seeks long-term growth of capital. Under normal
circumstances, the fund invests at least 80% of its total assets in European
common stocks and other equities (equities that are traded mainly on European
markets or are issued by companies organized under the laws of Europe or do more
than half of their business there). Although the fund may invest in equities of
any size or European country, it tends to focus on common stocks of
multinational companies in industrialized Western and Southern European
countries such as France, Italy, Germany, the Netherlands and the United
Kingdom. The fund may invest up to 20% of its total assets in European debt
securities, including junk bonds (i.e., grade BB and below).


DWS Growth & Income Fund. The fund seeks long-term growth of capital, current
income and growth of income. The fund invests at least 65% of total assets in
equities, mainly common stocks. Although the fund can invest in companies of any
size and from any country, it invests primarily in large US companies.


DWS Health Care Fund. The fund seeks long-term growth of capital by investing,
under normal circumstances, at least 80% of total assets, plus the amount of any
borrowings for investment purposes, in common stocks of companies in the health
care sector. For purposes of the fund's 80% investment policy, to be considered
part of the health care sector, companies must commit at least half of their
assets to, or derive at least half of their revenues or net income from, that
sector. The industries in the health care sector include pharmaceuticals,
biotechnology, medical products and supplies, and health care services. The
companies may be of any size. The fund will invest primarily in securities of US
companies, but may invest in foreign companies as well. While the fund invests
mainly in common stocks, it may also invest up to 20% of total assets in US
Treasury and agency debt obligations.

DWS High Income Fund. The fund seeks the highest level of current income
obtainable from a diversified portfolio of fixed income securities which the
fund's portfolio manager considers consistent with reasonable risk. As a
secondary objective, the fund will seek capital gain where consistent with its
primary objective. Under normal circumstances, this fund generally invests at
least 65% of net assets, plus the amount of any borrowings for investment
purposes, in junk bonds, which are those rated below the fourth highest credit
rating category (i.e., grade BB/Ba and below). Compared to investment-grade
bonds, junk bonds may pay higher yields, have higher volatility and higher risk
of default on payments of interest or principal. The fund may invest up to 50%
of total assets in bonds denominated in US dollars or foreign currencies from
foreign issuers.


DWS High Income Plus Fund. The fund seeks high current income and, as a
secondary objective, capital appreciation. Under normal conditions, the fund
invests at least 65% of its total assets in US dollar-denominated, domestic and
foreign below investment grade fixed income securities (junk bonds), including
those whose issuers are located in countries with new or emerging securities
markets. The fund considers an emerging securities market to be one where the
sovereign debt issued by the government in local currency terms is rated below
investment grade. The fund's investments in fixed income securities may be of
any credit quality and may include securities not paying interest currently and
securities in default. The fund may invest up to 25% of its total assets in
non-US dollar denominated, below investment-grade fixed income securities. The
fund may invest up to 35% of its total assets in cash or money market
instruments in order to maintain liquidity, or in the event that the portfolio
manager determines that securities meeting the fund's investment objectives are
not readily available for purchase. The fund may also purchase securities on a
when-issued basis and engage in short sales.


DWS Dreman High Return Equity Fund. The fund seeks to achieve a high rate of
total return. Under normal circumstances, the fund invests at least 80% of net
assets, plus the amount of any borrowings for investment purposes, in equity
securities (mainly common stocks). The fund focuses on stocks of large US
companies that are similar in size to the companies in the S&P 500 Index and
that the portfolio managers believe are undervalued. The fund intends to invest
primarily in companies whose market capitalizations fall within the range of the
S&P 500 Index.

DWS Core Plus Income Fund. The fund seeks to maximize total return consistent
with preservation of capital and prudent investment management, by investing for
both current income and capital appreciation. The fund primarily invests in US
dollar-denominated fixed income securities, including corporate bonds, US
government and agency bonds and mortgage- and asset-backed securities. A
significant portion of the fund's assets may also be allocated among foreign
investment grade fixed income securities, high yield bonds of US and foreign
issuers (including high yield bonds of issuers in countries with new or emerging
securities markets), or, to maintain liquidity, in cash or money market
instruments.


DWS Inflation Protected Plus Fund. The fund seeks to provide maximum
inflation-adjusted return, consistent with preservation of capital. Under normal
circumstances, the fund will invest at least 80% of its net assets, plus any
borrowings for investment purposes, in inflation-indexed bonds of varying
maturities issued by the US government, non-US governments, their agencies or
instrumentalities, and corporations and derivatives related to these securities.
The fund may invest the remaining portion of its assets in other types of
fixed-income securities, cash or cash equivalents. In an attempt to enhance
return, the fund also employs a global asset allocation strategy, which invests
in instruments across domestic and international fixed-income and currency
markets.

DWS International Fund. The fund seeks long-term growth of capital by investing
at least 65% of its total assets in foreign equities (equities issued by
foreign-based companies and listed on foreign exchanges). Although the fund can
invest in companies of any size and from any country, it invests mainly in
common stocks of established companies in countries with developed economies
(other than the United States).


DWS International Select Equity Fund. The fund seeks capital appreciation. Under
normal circumstances, the fund invests at least 80% of its assets, determined at
the time of purchase, in equity securities and other securities with equity
characteristics. Although the fund can invest in companies of any size and from
any country, it invests mainly in common stocks of established companies located
in countries with, or tied economically to, developed economies (other than the
United States). At least 50% of the fund's assets will be invested in securities
that are represented in the Morgan Stanley Capital International Europe,
Australia and Ear East Index (MSCI EAFE(R) Index). The fund may also invest up
to 20% of its assets in cash equivalents, US investment-grade fixed-income
securities, and US stocks and other equities. Typically, the fund will not hold
more than 35% of its net assets in securities of emerging markets issuers.

DWS International Value Opportunities Fund. The fund seeks long-term capital
appreciation, with current income as a secondary objective. Under normal
circumstances, the fund invests at least 80% of its assets, determined at the
time of purchase, in the stocks and other securities with equity characteristics
of companies in developed countries outside the United States. Almost all the
companies in which the fund invests are based in the developed foreign countries
that make up the Morgan Stanley Capital International Europe, Australia and Ear
East Index (MSCI EAFE(R) Index). The fund may also invest up to 20% of its
assets in cash equivalents, US investment-grade fixed-income securities, and US
stocks and other equities.

DWS Japan Equity Fund. The fund seeks high capital appreciation. Under normal
circumstances, the fund seeks to achieve its objective by investing at least 80%
of its assets, measured at the time a security is purchased, in Japanese equity
securities (securities issued by companies organized under the laws of Japan or
their affiliates, or by a company that derives more than half of its revenues
from Japan). The fund invests primarily in common stocks of companies of any
size, including up to 30% of net assets in smaller companies that are traded
over-the-counter.

DWS Large Cap Value Fund. The fund seeks long-term capital appreciation, with
current income as a secondary objective. Under normal circumstances, the fund
invests at least 80% of net assets, plus the amount of any borrowings for
investment purposes, in common stocks and other equity securities of large US
companies that are similar in size to the companies in the Russell 1000(R) Value
Index and that the portfolio managers believe are undervalued. These are
typically companies that have been sound historically but are temporarily out of
favor. The fund intends to invest primarily in companies whose market
capitalizations fall within the range of the Russell 1000(R) Value Index.

DWS Large Company Growth Fund. The fund seeks long-term growth of capital by
investing, under normal circumstances, at least 80% of its net assets, plus the
amount of any borrowings for investment purposes, in large US companies that are
similar in size to the companies in the Russell 1000(R) Growth Index. The fund
intends to invest primarily in companies whose market capitalizations fall
within the range of the Russell 1000(R) Growth Index.

DWS Latin America Equity Fund. The fund seeks long-term capital appreciation.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in Latin American common
stocks and other equities (equities that are traded mainly on Latin American
markets, issued or guaranteed by a Latin American government or issued by a
company organized under the laws of a Latin American country or any company with
more than half of its business in Latin America).

DWS Micro Cap Fund. The fund seeks capital appreciation. Under normal
circumstances, the fund invests at least 80% of its assets, determined at the
time of purchase, in stocks and other securities with equity characteristics of
US micro capitalization companies. For the purposes of this 80% limitation, the
micro capitalization equity universe is defined as the bottom 5% of the total
domestic equity market capitalization (at the time of initial investment) using
a minimum market capitalization of $10 million.

DWS Mid Cap Growth Fund. The fund seeks long-term capital growth. Under normal
circumstances, the fund invests at least 80% of its assets, determined at the
time of purchase, in companies with market caps within the market capitalization
range of the Russell Mid Cap Growth Index or securities with equity
characteristics that provide exposure to those companies.

DWS Money Market Prime Series -- DWS Cash Investment Trust. The fund seeks
maximum current income to the extent consistent with stability of principal. The
fund pursues its goal by investing exclusively in high quality, short-term
securities, as well as repurchase agreements that are backed by high-quality
securities. The fund will invest more than 25% of its total assets in the
obligations of banks and other financial institutions. The fund may invest up to
10% of its total assets in other money market mutual funds in accordance with
applicable regulations.

DWS Money Market Series -- Institutional Shares. The fund is a feeder fund that
invests substantially all of its assets in a master portfolio, the Cash
Management Portfolio, which will invest directly in securities and other
instruments. The fund's goal is to seek a high level of current income
consistent with liquidity and the preservation of capital. The fund, through the
Portfolio, seeks to achieve its goal by investing in high quality short-term
money market instruments.

DWS RREEF Global Real Estate Securities Fund. The fund's investment objective is
to seek total return through a combination of current income and long-term
capital appreciation. The fund seeks to achieve this objective by investing
primarily in publicly listed real estate investment trusts (REITs) and real
estate operating companies on a global basis. Under normal circumstances, the
fund will invest at least 80% of its net assets, plus the amount of any
borrowing for investment purposes (calculated at the time of any investment), in
the equity securities of REITs and real estate operating companies listed on
recognized stock exchanges around the world. A security will be considered part
of the fund's investment universe if the issuer of such security has a market
capitalization of at least $50 million and, in the opinion of the portfolio
managers, at least 50% of its revenues or 50% of the market value of its assets
at the time its securities are purchased by the fund are attributed to the
ownership, construction, management or sale of real estate and it is listed on a
recognized public foreign or domestic stock exchange or traded over the counter.

DWS RREEF Real Estate Securities Fund. The fund's investment objective is
long-term capital appreciation and current income. The fund invests primarily in
real estate securities. Under normal circumstances, the fund will invest at
least 80% of its net assets, plus the amount of any borrowing for investment
purposes (calculated at the time of any investment), in equity securities of
real estate investment trusts ("REITs") and real estate companies. A company is
considered to be a real estate company if, in the opinion of the portfolio
managers, at least 50% of its revenues or 50% of the market value of its assets
at the time its securities are purchased by the fund are attributed to the
ownership, construction, management or sale of real estate.


DWS S&P 500 Index Fund. The fund seeks to provide investment results that,
before expenses, correspond to the total return of common stocks publicly traded
in the United States, as represented by the Standard & Poor's 500 Composite
Stock Price Index (S&P 500 Index). The fund invests for capital appreciation,
not income; any dividend and interest income is incidental to the pursuit of its
objective. The fund is a feeder fund in a master/feeder fund arrangement. The
fund pursues its investment objective by investing substantially all of its
assets in a master portfolio, DWS Equity 500 Index Portfolio, which has the same
investment objective and is subject to the same investment risks as the fund.
Under normal circumstances, the fund through DWS Equity 500 Index Portfolio
intends to invest at least 80% of its assets, determined at the time of
purchase, in stocks of companies included in the S&P 500 Index and in derivative
instruments, such as futures contracts and options, that provide exposure to the
stocks of companies in the S&P 500 Index.


DWS Enhanced S&P 500 Index Fund. Effective December 15, 2008, the fund will be
renamed DWS S&P 500 Plus Fund. The fund seeks long-term growth and income by
investing at least 80% of total assets in common stocks of companies that are
included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500
Index). The fund intends to invest primarily in companies whose market
capitalizations fall within the range of the S&P 500 Index. Effective January 1,
2009, the fund will add a global tactical asset allocation overlay strategy
known as iGAP (integrated Global Alpha Platform) that seeks to provide enhanced
returns.

DWS Short Duration Fund. The fund seeks to maximize total return consistent with
preservation of capital and prudent investment management, by investing for both
current income and capital appreciation. Under normal circumstances, the fund
invests at least 80% of its assets, determined at the time of purchase, in fixed
income securities. The fund invests in US and foreign government bonds,
corporate, mortgage-backed and asset-backed securities, taxable municipal and
tax-exempt municipal bonds. The fund invests primarily in investment-grade
short-term fixed income securities rated within the top four credit rating
categories. In addition, the fund may invest up to 10% of total assets in
securities of US and foreign issuers that are below investment grade (otherwise
known as junk bonds). The fund may invest up to 10% of total assets in US dollar
or foreign currency denominated bonds of issuers located in countries with new
or emerging securities markets. The fund may hold up to 20% of its total assets
in cash or money market instruments in order to maintain liquidity, or in the
event the portfolio managers determine that securities meeting the fund's
investment objective are not otherwise readily available for purchase.

DWS Short Duration Plus Fund. The fund's investment objective is to provide high
income while also seeking to maintain a high degree of stability of
shareholders' capital. The fund invests in securities of varying maturities and
normally seeks to maintain an average portfolio duration of no longer than three
years. The fund invests, under normal market conditions, at least 65% of its
total assets in fixed income securities rated, at the time of purchase, within
the top four long-term rating categories by a nationally recognized statistical
rating organization (a "NRSRO") (or, if unrated, determined by the fund's
investment advisor to be of similar quality) The fund may invest up to 10% of
its assets in US dollar-denominated, domestic and foreign below investment-grade
fixed income securities (junk bonds) rated in the fifth and sixth long-term
rating categories by a NRSRO (or, if unrated, determined by the fund's
investment advisor to be of similar quality), including those whose issuers are
located in countries with new or emerging securities markets. The fund can
invest up to 15% of its net assets in illiquid securities. In an attempt to
enhance return, the fund also employs a global allocation strategy, which
invests in instruments across domestic and international fixed income and
currency markets.

DWS Small Cap Growth Fund. The fund seeks long-term capital growth. Under normal
circumstances, the fund invests at least 80% of its assets, determined at the
time of purchase, in stocks and other securities with equity characteristics of
US smaller capitalization companies. For purposes of this 80% investment
limitation, the small capitalization equity universe is defined as the bottom
20% of the total domestic equity market capitalization (at the time of initial
investment), using a minimum market capitalization of $10 million.

DWS Small Cap Core Fund. The fund seeks to provide long-term capital growth.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in common stocks of small
US companies with potential for above-average long-term capital growth. These
companies are similar in size to the companies in the Russell 2000(R) Index. The
fund intends to invest in companies whose market capitalizations fall within the
range of the Russell 2000(R) Index.





DWS Dreman Concentrated Value Fund. The fund's investment objective is long-term
growth of capital. The fund seeks to achieve its objective by investing
primarily in the common stocks of large companies that the portfolio managers
believe are undervalued, but have favorable prospects for appreciation. The fund
is classified as a non-diversified portfolio and normally invests in a core
position of common stocks (normally 20 to 25 stocks) that represent the
portfolio managers' best ideas.

DWS Dreman Mid Cap Value Fund. The fund seeks long-term capital appreciation.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in common stocks of
mid-cap companies that the portfolio managers believe are undervalued, but have
favorable prospects for appreciation. The fund defines mid-cap companies as
companies that have a market capitalization similar to that of the Russell
Midcap Value Index with a market capitalization which usually ranges from $1
billion to $20 billion.

DWS Dreman Small Cap Value Fund. The fund seeks long-term capital appreciation.
Under normal circumstances, the fund invests at least 80% of net assets, plus
the amount of any borrowings for investment purposes, in undervalued common
stocks of small US companies, which the fund defines as companies that are
similar in market value to those in the Russell 2000(R) Index. The fund intends
to invest primarily in companies whose market capitalizations fall within the
range of the Russell 2000(R) Index.

DWS Technology Fund. The fund seeks growth of capital. Under normal
circumstances, the fund invests at least 80% of net assets, plus the amount of
any borrowings for investment purposes, in common stocks of companies in the
technology sector. For purposes of the fund's 80% investment policy, companies
in the technology sector must commit at least half of their assets to the
technology sector or derive at least half of their revenues or net income from
that sector. Examples of industries within the technology sector are
semiconductors, software, telecom equipment, computer/hardware, IT services, the
Internet and health technology. The fund may invest in companies of any size.

DWS U.S. Bond Index Fund. The fund seeks to replicate, as closely as possible,
before the deduction of expenses, the performance of the Barclays Capital U.S.
Aggregate Index, which emphasizes government mortgage-backed securities and
corporate investment grade debt securities. The fund will pursue its objective
by investing primarily in the debt securities of the companies included in the
Barclays Capital U.S. Aggregate Index and derivative instruments, such as
futures contracts and options, that provide exposure to the securities in the
Barclays Capital U.S. Aggregate Index.

DWS RREEF Global Infrastructure Fund. The fund seeks total return from both
capital appreciation and current income through investment in a global portfolio
of securities of infrastructure-related companies. Under normal circumstances,
the fund invests at least 80% of its net assets in the securities of US and
non-US infrastructure-related companies. The fund considers a company to be an
infrastructure-related company if at least 50% of its non-cash assets are
infrastructure assets or 50% of its gross income or net profits are derived,
directly or indirectly, from the ownership, management, construction, operation,
utilization or financing of infrastructure assets. Under normal circumstances,
the fund invests principally in equity securities, though the fund may also
invest in fixed-income securities without limitation. Under normal
circumstances, the majority of the fund's assets are invested in securities of
issuers organized or located outside the US or doing a substantial amount of
business outside the US.


         INVESTMENT POLICIES AND TECHNIQUES OF THE UNDERLYING DWS FUNDS

The Underlying Funds may engage in certain practices not described herein.


Adjustable Rate Mortgages-Interest Rate Indices. DWS U.S. Bond Index Fund may
invest in adjustable rate mortgages which may be adjusted on the basis of one of
several indices. The One Year Treasury Index is the figure derived from the
average weekly quoted yield on US Treasury securities adjusted to a constant
maturity of one year. The Cost of Funds Index reflects the monthly weighted
average cost of funds of savings and loan associations and savings banks whose
home offices are located in Arizona, California and Nevada (the "FHLB Eleventh
District") that are member institutions of the Federal Home Loan Bank of San
Francisco (the "FHLB of San Francisco"), as computed from statistics tabulated
and published by the FHLB of San Francisco. The FHLB of San Francisco normally
announces the Cost of Funds Index on the last working day of the month following
the month in which the cost of funds was incurred.

A number of factors affect the performance of the Cost of Funds Index and may
cause the Cost of Funds Index to move in a manner different from indices based
upon specific interest rates, such as the One Year Treasury Index.

Because of the various origination dates and maturities of the liabilities of
members of the FHLB Eleventh District upon which the Cost of Funds Index is
based, among other things, at any time the Cost of Funds Index may not reflect
the average prevailing market interest rates on new liabilities of similar
maturities. There can be no assurance that the Cost of Funds Index will
necessarily move in the same direction or at the same rate as prevailing
interest rates, since as longer term deposits or borrowings mature and are
renewed at market interest rates, the Cost of Funds Index will rise or fall
depending upon the differential between the prior and the new rates on such
deposits and borrowings. In addition, dislocations in the thrift industry in
recent years have caused and may continue to cause the cost of funds of thrift
institutions to change for reasons unrelated to changes in general interest rate
levels. Furthermore, any movement in the Cost of Funds Index as compared to
other indices based upon specific interest rates may be affected by changes
instituted by the FHLB of San Francisco in the method used to calculate the Cost
of Funds Index. To the extent that the Cost of Funds Index may reflect interest
changes on a more delayed basis than other indices, in a period of rising
interest rates, any increase may produce a higher yield later than would be
produced by such other indices, and in a period of declining interest rates, the
Cost of Funds Index may remain higher than other market interest rates which may
result in a higher level of principal prepayments on mortgage loans which adjust
in accordance with the Cost of Funds Index than mortgage loans which adjust in
accordance with other indices.

LIBOR, the London InterBank Offered Rate, is the interest rate that the most
creditworthy international banks dealing in US dollar-denominated deposits and
loans charge each other for large dollar-denominated loans. LIBOR is also
usually the base rate for large dollar-denominated loans in the international
market. LIBOR is generally quoted for loans having rate adjustments at one,
three, six or twelve month intervals.


Adjustable Rate Securities. The interest rates paid on the adjustable rate
securities in which a fund invests generally are readjusted at intervals of one
year or less to an increment over some predetermined interest rate index. There
are three main categories of indices: those based on US Treasury securities,
those derived from a calculated measure such as a cost of funds index and those
based on a moving average of mortgage rates. Commonly used indices include the
one-year, three-year and five-year constant maturity Treasury rates, the
three-month Treasury bill rate, the 180-day Treasury bill rate, rates on
longer-term Treasury securities, the 11th District Federal Home Loan Bank Cost
of Funds, the National Median Cost of Funds, the one-month, three-month,
six-month or one-year London Interbank Offered Rate ("LIBOR"), the prime rate of
a specific bank or commercial paper rates. Some indices, such as the one-year
constant maturity Treasury rate, closely mirror changes in market interest rate
levels. Others, such as the 11th District Home Loan Bank Cost of Funds index,
tend to lag behind changes in market rate levels and tend to be somewhat less
volatile.

The Mortgage-Backed Securities either issued or guaranteed by GNMA, FHLMC or
FNMA ("Certificates") are called pass-through Certificates because a pro rata
share of both regular interest and principal payments (less GNMA's, FHLMC's or
FNMA's fees and any applicable loan servicing fees), as well as unscheduled
early prepayments on the underlying mortgage pool, are passed through monthly to
the holder of the Certificate (i.e., a fund). The principal and interest on GNMA
securities are guaranteed by GNMA and backed by the full faith and credit of the
US Government. FNMA guarantees full and timely payment of all interest and
principal, while FHLMC guarantees timely payment of interest and ultimate
collection of principal. Mortgage-Backed Securities from FNMA and FHLMC are not
backed by the full faith and credit of the United States; however, they are
generally considered to offer minimal credit risks. The yields provided by these
Mortgage-Backed Securities have historically exceeded the yields on other types
of US Government Securities with comparable maturities in large measure due to
the prepayment risk discussed below.

If prepayments of principal are made on the underlying mortgages during periods
of rising interest rates, a fund generally will be able to reinvest such amounts
in securities with a higher current rate of return. However, a fund will not
benefit from increases in interest rates to the extent that interest rates rise
to the point where they cause the current coupon of adjustable rate mortgages
held as investments by a fund to exceed the maximum allowable annual or lifetime
reset limits (or "cap rates") for a particular mortgage. Also, a fund's net
asset value could vary to the extent that current yields on Mortgage-Backed
Securities are different than market yields during interim periods between
coupon reset dates.

During periods of declining interest rates, of course, the coupon rates may
readjust downward, resulting in lower yields to a fund. Further, because of this
feature, the value of adjustable rate mortgages is unlikely to rise during
periods of declining interest rates to the same extent as fixed-rate
instruments. As with other Mortgage-Backed Securities, interest rate declines
may result in accelerated prepayment of mortgages, and the proceeds from such
prepayments must be reinvested at lower prevailing interest rates.

One additional difference between adjustable rate mortgages and fixed rate
mortgages is that for certain types of adjustable rate mortgage securities, the
rate of amortization of principal, as well as interest payments, can and does
change in accordance with movements in a specified, published interest rate
index. The amount of interest due to an adjustable rate mortgage security holder
is calculated by adding a specified additional amount, the "margin," to the
index, subject to limitations or "caps" on the maximum and minimum interest that
is charged to the mortgagor during the life of the mortgage or to maximum and
minimum changes to that interest rate during a given period.

Advance Refunded Bonds. DWS Floating Rate Plus Fund may purchase Municipal
Securities that are subsequently refunded by the issuance and delivery of a new
issue of bonds prior to the date on which the outstanding issue of bonds can be
redeemed or paid. The proceeds from the new issue of bonds are typically placed
in an escrow fund consisting of US Government obligations that are used to pay
the interest, principal and call premium on the issue being refunded. The Fund
may also purchase Municipal Securities that have been refunded prior to purchase
by a fund.

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

Asset-Indexed Securities. A fund may purchase asset-indexed securities which are
debt securities usually issued by companies in precious metals related
businesses such as mining, the principal amount, redemption terms, or interest
rates of which are related to the market price of a specified precious metal. A
fund will only enter into transactions in publicly traded asset-indexed
securities. Market prices of asset-indexed securities will relate primarily to
changes in the market prices of the precious metals to which the securities are
indexed rather than to changes in market rates of interest. However, there may
not be a perfect correlation between the price movements of the asset-indexed
securities and the underlying precious metals. Asset-indexed securities
typically bear interest or pay dividends at below market rates (and in certain
cases at nominal rates). A fund may purchase asset-indexed securities to the
extent permitted by law.


Asset Segregation. Certain investment transactions expose the fund to an
obligation to make future payments to third parties. Examples of these types of
transactions, include, but are not limited to, reverse repurchase agreements,
short sales, dollar rolls, when-issued, delayed-delivery or forward commitment
transactions and certain derivatives such as swaps, futures, forwards, and
options. To the extent that the fund engages in such transactions, the fund will
(to the extent required by applicable law) either (1) segregate cash or liquid
assets in the prescribed amount or (2) otherwise "cover" its future obligations
under the transaction, such as by holding an offsetting investment. If the fund
segregates sufficient cash or other liquid assets or otherwise "covers" its
obligations under such transactions, the fund will not consider the transactions
to be borrowings for purposes of its investment restrictions or "senior
securities" under the Investment Company Act of 1940, as amended (the "1940
Act"), and therefore, such transactions will not be subject to the 300% asset
coverage requirement under the 1940 Act otherwise applicable to borrowings by
the fund.

In some cases (e.g., with respect to futures and forwards that are contractually
required to "cash-settle"), the fund will segregate cash or other liquid assets
with respect to the amount of the daily net (marked-to-market) obligation
arising from the transaction, rather than the notional amount of the underlying
contract. By segregating assets in an amount equal to the net obligation rather
than the notional amount, the fund will have the ability to employ leverage to a
greater extent than if it set aside cash or other liquid assets equal to the
notional amount of the contract, which may increase the risk associated with
such transactions.

The fund may utilize methods of segregating assets or otherwise "covering"
transactions that are currently or in the future permitted under the 1940 Act,
the rules and regulations thereunder, or orders issued by the SEC thereunder.
For these purposes, interpretations and guidance provided by the SEC staff may
be taken into account when deemed appropriate by the fund.

Assets used as segregation or cover cannot be sold while the position in the
corresponding transaction is open, unless they are replaced with other
appropriate assets. As a result, the commitment of a large portion of a fund's
assets for segregation and cover purposes could impede portfolio management or
the fund's ability to meet redemption requests or other current obligations.

Segregating assets or otherwise "covering" for these purposes does not
necessarily limit the percentage of the assets of the fund that may be at risk
with respect to certain derivative transactions.


Auction Rate Securities. Auction rate securities in which a fund may invest
consist of auction rate municipal securities and auction rate preferred
securities issued by closed-end investment companies that invest primarily in
municipal securities. Provided that the auction mechanism is successful, auction
rate securities usually permit the holder to sell the securities in an auction
at par value at specified intervals. The dividend is reset by "Dutch" auction in
which bids are made by broker-dealers and other institutions for a certain
amount of securities at a specified minimum yield. The dividend rate set by the
auction is the lowest interest or dividend rate that covers all securities
offered for sale. While this process is designed to permit auction rate
securities to be traded at par value, there is the risk that an auction will
fail due to insufficient demand for the securities. Dividends on auction rate
preferred securities issued by a closed-end fund may be designated as exempt
from federal income tax to the extent they are attributable to tax-exempt
interest income earned by a fund on the securities in its portfolio and
distributed to holders of the preferred securities, provided that the preferred
securities are treated as equity securities for federal income tax purposes and
the closed-end fund complies with certain requirements under the Internal
Revenue Code of 1986, as amended (the "Code"). A fund's investments in auction
rate preferred securities of closed-end funds are subject to limitations on
investments in other US registered investment companies, which limitations are
prescribed by the 1940 Act. These limitations include prohibitions against
acquiring more than 3% of the voting securities of any other such investment
company, and investing more than 5% of a fund's assets in securities of any one
such investment company or more than 10% of its assets in securities of all such
investment companies.

Bank and Savings and Loan Obligations. These obligations include negotiable
certificates of deposit, bankers' acceptances, deposit notes, fixed time
deposits or other short-term bank obligations. Certificates of deposit are
negotiable certificates evidencing the obligations of a bank to repay funds
deposited with it for a specified period of time. A fund may invest in
certificates of deposit of large domestic banks and their foreign branches,
large US regulated subsidiaries of large foreign banks (i.e., banks which at the
time of their most recent annual financial statements show total assets in
excess of $1 billion), and of smaller banks as described below. Although a fund
recognizes that the size of a bank is important, this fact alone is not
necessarily indicative of its creditworthiness. Investment in certificates of
deposit issued by foreign branches of domestic banks involves investment risks
that are different in some respects from those associated with investment in
certificates of deposit issued by domestic branches of domestic banks, including
the possible imposition of withholding taxes on interest income, the possible
adoption of foreign governmental restrictions which might adversely affect the
payment of principal and interest on such certificates of deposit, or other
adverse political or economic developments. In addition, it might be more
difficult to obtain and enforce a judgment against a foreign branch of a
domestic bank.

A fund may also invest in certificates of deposit issued by banks and savings
and loan institutions which had, at the time of their most recent annual
financial statements, total assets of less than $1 billion, provided that (i)
the principal amounts of such certificates of deposit are insured by an agency
of the US Government, (ii) at no time will a fund hold more than $100,000
principal amount of certificates of deposit of any one such bank, and (iii) at
the time of acquisition, no more than 10% of a fund's assets (taken at current
value) are invested in certificates of deposit of such banks having total assets
not in excess of $1 billion.

Banker's acceptances are credit instruments evidencing the obligations of a bank
to pay a draft drawn on it by a customer. These instruments reflect the
obligation both of the bank and of the drawer to pay the face amount of the
instrument upon maturity.

Time deposits are non-negotiable deposits maintained in a banking institution
for a specified period of time at a stated interest rate. Time deposits which
may be held by a fund will not benefit from insurance from the Bank Insurance
Fund or the Savings Association Insurance Fund administered by the Federal
Deposit Insurance Corporation. Fixed time deposits may be withdrawn on demand by
the investor, but may be subject to early withdrawal penalties that vary with
market conditions and the remaining maturity of the obligation. Fixed time
deposits subject to withdrawal penalties maturing in more than seven calendar
days are subject to a fund's limitation on investments in illiquid securities.

Bank Loans. Bank loans are typically senior debt obligations of borrowers
(issuers) and as such, are considered to hold a senior position in the capital
structure of the borrower. These may include loans which hold the most senior
position, that hold an equal ranking with other senior debt, or loans that are,
in the judgment of the Advisor, in the category of senior debt of the borrower.
This capital structure position generally gives the holders of these loans a
priority claim on some or all of the borrower's assets in the event of a
default. In most cases, these loans are either partially or fully collateralized
by the assets of a corporation, partnership, limited liability company or other
business entity, or by cash flow that the Advisor believes has a market value at
the time of acquisition that equals or exceeds the principal amount of the loan.
These loans are often issued in connection with recapitalizations, acquisitions,
leveraged buy-outs and refinancings. It is important to note that Moody's and
S&P may rate bank loans higher than high yield bonds of the same issuer to
reflect their more senior position. The fund may invest in both fixed- and
floating-rate loans. In addition, bank loans can trade either as an "assignment"
or "participation." When the Fund buys an assignment, it is essentially becoming
a party to the bank agreement. The vast majority of all trades are assignments
and would therefore generally represent the preponderance of bank loans held by
the Fund. In certain cases, the Fund may buy bank loans on a participation
basis, if for example, the Fund did not want to become party to the bank
agreement. However, in all cases, the Fund will not purchase bank loans where
Deutsche Bank, or an affiliate, serves as an agent bank.

Participations and assignments involve credit risk, interest rate risk,
liquidity risk, and the risk of being a lender. If the Fund purchases a
participation, it may only be able to enforce its rights through the lender, and
may assume the credit risk of both the lender and the borrower.

Investments in loans through direct assignment of a financial institution's
interests with respect to a loan may involve additional risks. For example, if a
loan is foreclosed, the purchaser could become part owner of any collateral, and
would bear the costs and liabilities associated with owning and disposing of the
collateral. In addition, it is at least conceivable that under emerging legal
theories of lender liability, a purchaser could be held liable as a co-lender.

In the case of loans administered by a bank or other financial institution that
acts as agent for all holders, if assets held by the agent for the benefit of a
purchaser are determined to be subject to the claims of the agent's general
creditors, the purchaser might incur certain costs and delays in realizing
payment on the loan or loan participation and could suffer a loss of principal
or interest.

In the case of loan participations where a bank or other lending institution
serves as financial intermediary between a fund and the borrower, if the
participation does not shift to the fund the direct debtor-creditor relationship
with the borrower, SEC interpretations require the fund, in some circumstances,
to treat both the lending bank or other lending institution and the borrower as
issuers for purposes of the fund's investment policies. Treating a financial
intermediary as an issuer of indebtedness may restrict a fund's ability to
invest in indebtedness related to a single financial intermediary, or a group of
intermediaries engaged in the same industry, even if the underlying borrowers
represent many different companies and industries.

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

DWS Disciplined Long/Short Growth Fund, DWS Disciplined Long/Short Value Fund
and DWS Floating Rate Plus Fund may each borrow money from banks for investment
purposes to the extent permitted by the 1940 Act. This practice is known as
leverage. Currently, under the 1940 Act, the funds may borrow up to one-third of
their total assets (including the amount borrowed) provided that it maintains
continuous asset coverage of 300% with respect to such borrowings and sells
(within three days) sufficient portfolio holdings to restore such coverage if it
should decline to less than 300% due to market fluctuations or otherwise, even
if disadvantageous from an investment standpoint. The funds may borrow through
other means to the extent permitted by the 1940 Act. In addition to borrowing
for leverage purposes, the funds also may borrow money to meet redemptions in
order to avoid forced, unplanned sales of portfolio securities or for other
temporary or emergency purposes. This allows the funds greater flexibility to
buy and sell portfolio securities for investment or tax considerations, rather
than for cash flow considerations.

The use of borrowing by the funds involves special risk considerations that may
not be associated with other funds having similar policies. Because
substantially all of the funds' assets fluctuate in value, whereas the interest
obligation resulting from a borrowing may be fixed by the terms of the fund's
agreement with its lender, the net asset value per share of the funds will tend
to increase more when its portfolio securities increase in value and decrease
more when its portfolio securities decrease in value than would otherwise be the
case if the funds did not borrow funds. In addition, interest costs on
borrowings may fluctuate with changing market rates of interest and may
partially offset or exceed the return earned on borrowed funds. Under adverse
market conditions, the funds might have to sell portfolio securities to meet
interest or principal payments at a time when fundamental investment
considerations would not favor such sales. The interest that the funds must pay
on borrowed money, together with any additional fees to establish and maintain a
borrowing facility, are additional costs that will reduce or eliminate any net
investment income and may also offset any potential capital gains. Unless
appreciation and income, if any, on assets acquired with borrowed funds exceed
the costs of borrowing, the use of leverage will diminish the investment
performance of the funds compared with what it would have been without leverage.

Brady Bonds. Brady Bonds are securities created through the exchange of existing
commercial bank loans to public and private entities in certain emerging markets
for new bonds in connection with debt restructurings under a debt
restructuring-plan introduced by former US Secretary of the Treasury, Nicholas
F. Brady (the "Brady Plan"). Brady Plan debt restructurings have been
implemented in Argentina, Brazil, Bulgaria, Costa Rica, the Dominican Republic,
Ecuador, Jordan, Mexico, Nigeria, the Philippines, Poland and Uruguay. Brady
Bonds have been issued fairly recently, and for that reason do not have a long
payment history. Brady Bonds may be collateralized or uncollateralized, are
issued in various currencies (but primarily the dollar) and are actively traded
in over-the-counter secondary markets. Dollar-denominated, collateralized Brady
Bonds, which may be fixed-rate bonds or floating-rate bonds, are generally
collateralized in full as to principal by US Treasury zero coupon bonds having
the same maturity as the bonds. Interest payments on these Brady Bonds generally
are collateralized by cash or securities in an amount that, in the case of fixed
rate bonds, is equal to at least one year of rolling interest payments or, in
the case of floating rate bonds, initially is equal to at least one year's
rolling interest payments based on the applicable interest rate at that time and
is adjusted at regular intervals thereafter. Brady Bonds are often viewed as
having three or four valuation components: the collateralized repayment of
principal at final maturity; the collateralized interest payments; the
uncollateralized interest payments; and any uncollateralized repayment of
principal at maturity (these uncollateralized amounts constitute the "residual
risk"). In light of the residual risk of Brady Bonds and the history of defaults
of countries issuing Brady Bonds, with respect to commercial bank loans by
public and private entities, investments in Brady Bonds may be viewed as
speculative. Approximately $152 billion in Brady Bonds have been issued in
Africa, Asia, Eastern Europe, Latin America and the Middle East, with over 90%
of these Brady Bonds being denominated in US dollars.

Certificates of Deposit and Bankers' Acceptances. Certificates of deposit are
receipts issued by a depository institution in exchange for the deposit of
funds. The issuer agrees to pay the amount deposited plus interest to the bearer
of the receipt on the date specified on the certificate. The certificate usually
can be traded in the secondary market prior to maturity. Bankers' acceptances
typically arise from short-term credit arrangements designed to enable
businesses to obtain funds to finance commercial transactions. Generally, an
acceptance is a time draft drawn on a bank by an exporter or an importer to
obtain a stated amount of funds to pay for specific merchandise. The draft is
then "accepted" by a bank that, in effect, unconditionally guarantees to pay the
face value of the instrument on its maturity date. The acceptance may then be
held by the accepting bank as an earning asset or it may be sold in the
secondary market at the going rate of discount for a specific maturity. Although
maturities for acceptances can be as long as 270 days, most acceptances have
maturities of six months or less.

Collateralized Mortgage Obligations ("CMOs"). CMOs are hybrids between
mortgage-backed bonds and mortgage pass-through securities. Similar to a bond,
interest and prepaid principal are paid, in most cases, semiannually. CMOs may
be collateralized by whole mortgage loans but are more typically collateralized
by portfolios of mortgage pass-through securities guaranteed by GNMA, FHLMC, or
Fannie Mae, and their income streams.

CMOs are structured into multiple classes, each bearing a different stated
maturity. Actual maturity and average life will depend upon the prepayment
experience of the collateral. CMOs provide for a modified form of call
protection through a de facto breakdown of the underlying pool of mortgages
according to how quickly the loans are repaid. Monthly payment of principal
received from the pool of underlying mortgages, including prepayments, is first
returned to investors holding the shortest maturity class. Investors holding the
longer maturity classes receive principal only after the first class has been
retired. An investor is partially guarded against a sooner than desired return
of principal because of the sequential payments. The prices of certain CMOs,
depending on their structure and the rate of prepayments, can be volatile. Some
CMOs may also not be as liquid as other securities.

In a typical CMO transaction, a corporation issues multiple series (e.g., A, B,
C, Z) of CMO bonds ("Bonds"). Proceeds of the Bond offering are used to purchase
mortgages or mortgage pass-through certificates ("Collateral"). The Collateral
is pledged to a third party trustee as security for the Bonds. Principal and
interest payments from the Collateral are used to pay principal on the Bonds in
the order A, B, C, Z. The Series A, B, and C Bonds all bear current interest.
Interest on the Series Z Bond is accrued and added to principal and a like
amount is paid as principal on the Series A, B, or C Bond currently being paid
off. When the Series A, B, and C Bonds are paid in full, interest and principal
on the Series Z Bond begins to be paid currently. With some CMOs, the issuer
serves as a conduit to allow loan originators (primarily builders or savings and
loan associations) to borrow against their loan portfolios.

The principal risk of CMOs results from the rate of prepayments on underlying
mortgages serving as collateral and from the structure of the deal. An increase
or decrease in prepayment rates will affect the yield, average life and price of
CMOs.

Commercial Paper. Subject to its investment objectives and policies, a fund may
invest in commercial paper issued by major corporations under the 1933 Act in
reliance on the exemption from registration afforded by Section 3(a)(3) thereof.
Such commercial paper may be issued only to finance current transactions and
must mature in nine months or less. Trading of such commercial paper is
conducted primarily by institutional investors through investment dealers, and
individual investor participation in the commercial paper market is very
limited. A fund also may invest in commercial paper issued in reliance on the
so-called "private placement" exemption from registration afforded by Section
4(2) of the 1933 Act ("Section 4(2) paper"). Section 4(2) paper is restricted as
to disposition under the federal securities laws, and generally is sold to
institutional investors such as a fund who agree that they are purchasing the
paper for investment and not with a view to public distribution. Any resale by
the purchaser must be in an exempt transaction. Section 4(2) paper normally is
resold to other institutional investors like a fund through or with the
assistance of the issuer or investment dealers who make a market in the Section
4(2) paper, thus providing liquidity. The Advisor considers the legally
restricted but readily saleable Section 4(2) paper to be liquid; however,
pursuant to procedures approved by a fund's Board, if a particular investment in
Section 4(2) paper is not determined to be liquid, that investment will be
included within the limitation of a fund on illiquid securities. The Advisor
monitors the liquidity of its investments in Section 4(2) paper on a continuing
basis.

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

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

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

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

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

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

Correlation of Gold and Gold Securities. The underlying fund's advisor believes
that the value of the securities of firms that deal in gold will correspond
generally, over time, with the prices of the underlying metal. At any given
time, however, changes in the price of gold may not strongly correlate with
changes in the value of securities related to gold, which are expected to
constitute the principal part of a fund's assets. In fact, there may be periods
in which the price of gold stocks and gold will move in different directions.
The reason for this potential disparity is that political and economic factors,
including behavior of the stock market, may have differing impacts on gold
versus gold stocks.

Corporate Obligations. Investment in corporate debt obligations involves credit
and interest rate risk. The value of fixed-income investments will fluctuate
with changes in interest rates and bond market conditions, tending to rise as
interest rates decline and to decline as interest rates rise. Corporate debt
obligations generally offer less current yield than securities of lower quality,
but lower-quality securities generally have less liquidity, greater credit and
market risk, and as a result, more price volatility. Longer-term bonds are,
however, generally more volatile than bonds with shorter maturities.

Custodial Receipts. Custodial receipts are interests in separately traded
interest and principal component parts of US Government securities that are
issued by banks or brokerage firms and are created by depositing US Government
securities into a special account at a custodian bank. The custodian holds the
interest and principal payments for the benefit of the registered owners of the
certificates or receipts. The custodian arranges for the issuance of the
certificates or receipts evidencing ownership and maintains the register.
Custodial receipts include Treasury Receipts ("TRs"), Treasury Investment Growth
Receipts ("TIGRs"), and Certificates of Accrual on Treasury Securities ("CATS").
TIGRs and CATS are interests in private proprietary accounts while TRs and
STRIPS (see "US Government Securities" above) are interests in accounts
sponsored by the US Treasury. Receipts are sold as zero coupon securities; for
more information, see "Zero Coupon Securities."

The Fund may acquire US Government securities and their unmatured interest
coupons that have been separated ("stripped") by their holder, typically a
custodian bank or investment brokerage firm. Having separated the interest
coupons from the underlying principal of the US Government securities, the
holder will resell the stripped securities in custodial receipt programs with a
number of different names, including TIGRs and CATS. The stripped coupons are
sold separately from the underlying principal, which is usually sold at a deep
discount because the buyer receives only the right to receive a future fixed
payment on the security and does not receive any rights to periodic interest
(cash) payments. The underlying US Treasury bonds and notes themselves are
generally held in book-entry form at a Federal Reserve Bank. Counsel to the
underwriters of these certificates or other evidences of ownership of US
Treasury securities have stated that, in their opinion, purchasers of the
stripped securities most likely will be deemed the beneficial holders of the
underlying US Government securities for federal tax and securities purposes. In
the case of CATS and TIGRS, the Internal Revenue Service (the "IRS") has reached
this conclusion for the purpose of applying the tax diversification requirements
applicable to regulated investment companies such as the Fund. CATS and TIGRS
are not considered US Government securities by the staff of the SEC. Further,
the IRS conclusion noted above is contained only in a general counsel
memorandum, which is an internal document of no precedential value or binding
effect, and a private letter ruling, which also may not be relied upon by the
Fund. The Trust is not aware of any binding legislative, judicial or
administrative authority on this issue.

Depositary Receipts. A fund may invest in sponsored or unsponsored American
Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"), Global
Depositary Receipts ("GDRs"), International Depositary Receipts ("IDRs") and
other types of Depositary Receipts (which, together with ADRs, GDRs and IDRs are
hereinafter referred to as "Depositary Receipts"). Depositary receipts provide
indirect investment in securities of foreign issuers. Prices of unsponsored
Depositary Receipts may be more volatile than if they were sponsored by the
issuer of the underlying securities. Depositary Receipts may not necessarily be
denominated in the same currency as the underlying securities into which they
may be converted. In addition, the issuers of the stock of unsponsored
Depositary Receipts are not obligated to disclose material information in the
United States and, therefore, there may not be a correlation between such
information and the market value of the Depositary Receipts. ADRs are Depositary
Receipts which are bought and sold in the United States and are typically issued
by a US bank or trust company which evidence ownership of underlying securities
by a foreign corporation. GDRs, IDRs and other types of Depositary Receipts are
typically issued by foreign banks or trust companies, although they may also be
issued by United States banks or trust companies, and evidence ownership of
underlying securities issued by either a foreign or a United States corporation.
Generally, Depositary Receipts in registered form are designed for use in the
United States securities markets and Depositary Receipts in bearer form are
designed for use in securities markets outside the United States. For purposes
of a fund's investment policies, a fund's investments in ADRs, GDRs and other
types of Depositary Receipts will be deemed to be investments in the underlying
securities. Depositary Receipts, including those denominated in US dollars will
be subject to foreign currency exchange rate risk. However, by investing in US
dollar-denominated ADRs rather than directly in foreign issuers' stock, a fund
avoids currency risks during the settlement period. In general, there is a
large, liquid market in the United States for most ADRs. However, certain
Depositary Receipts may not be listed on an exchange and therefore may be
illiquid securities.

Direct Debt Instruments. DWS Floating Rate Plus Fund may invest in direct debt
instruments. Direct debt instruments are interests in amounts owed by a
corporate, governmental or other borrower to lenders (direct loans), to
suppliers of goods or services (trade claims or other receivables) or to other
parties.

When the fund participates in a direct loan it will be lending money directly to
an issuer. Direct loans generally do not have an underwriter or agent bank, but
instead, are negotiated between a company's management team and a lender or
group of lenders. Direct loans typically offer better security and structural
terms than other types of high yield securities. Direct debt obligations are
often the most senior-obligations in an issuer's capital structure or are
well-collateralized so that overall risk is lessened.

Trade claims are unsecured rights of payment arising from obligations other than
borrowed funds. Trade claims include vendor claims and other receivables that
are adequately documented and available for purchase from high yield
broker-dealers. Trade claims typically may sell at a discount. In addition to
the risks otherwise associated with low-quality obligations, trade claims have
other risks, including the possibility that the amount of the claim may be
disputed by the obligor. Trade claims normally would be considered illiquid and
pricing can be volatile.

Direct debt instruments involve a risk of loss in case of default or insolvency
of the borrower. The fund will rely primarily upon the creditworthiness of the
borrower and/or the collateral for payment of interest and repayment of
principal. The value of the fund's investments may be adversely affected if
scheduled interest or principal payments are not made. Because most direct loans
will be secured, there will be a smaller risk of loss with direct loans than
with an investment in unsecured high yield bonds or trade claims. Indebtedness
of borrowers whose creditworthiness is poor involves substantially greater risks
and may be highly speculative. Borrowers that are in bankruptcy or restructuring
may never pay off their indebtedness or may pay only a small fraction of the
amount owed. Investments in direct debt instruments also involve interest rate
risk and liquidity risk. However, interest rate risk is lessened by the
generally short-term nature of direct debt instruments and their interest rate
structure, which typically floats. To the extent the direct debt instruments in
which the fund invests are considered illiquid, the lack of a liquid secondary
market (1) will have an adverse impact on the value of such instruments, (2)
will have an adverse impact on the fund's ability to dispose of them when
necessary to meet the fund's liquidity needs or in response to a specific
economic event, such as a decline in creditworthiness of the issuer, and (3) may
make it more difficult for the fund to assign a value of these instruments for
purposes of valuing the fund's portfolio and calculating its net asset value. In
order to lessen liquidity risk, the fund anticipates investing primarily in
direct debt instruments that are quoted and traded in the high yield market and
will not invest in these instruments if it would cause more than 15% of the
fund's net assets to be illiquid. Trade claims may also present a tax risk to
the fund.

The fund will not invest in trade claims if it effects the fund's qualification
as a regulated investment company under Subchapter M of the Internal Revenue
Code.

Dollar Roll Transactions. Dollar roll transactions consist of the sale by a fund
to a bank or broker/dealer (the "counterparty") of GNMA certificates or other
mortgage-backed securities together with a commitment to purchase from the
counterparty similar, but not identical, securities at a future date, at the
same price. The counterparty receives all principal and interest payments,
including prepayments, made on the security while it is the holder. A fund
receives a fee from the counterparty as consideration for entering into the
commitment to purchase. Dollar rolls may be renewed over a period of several
months with a different purchase and repurchase price fixed and a cash
settlement made at each renewal without physical delivery of securities.
Moreover, the transaction may be preceded by a firm commitment agreement
pursuant to which a fund agrees to buy a security on a future date.

A fund will segregate cash, US Government securities or other liquid assets in
an amount sufficient to meet their purchase obligations under the transactions.

Dollar rolls may be treated for purposes of the 1940 Act, as borrowings of a
fund because they involve the sale of a security coupled with an agreement to
repurchase. A dollar roll involves costs to a fund. For example, while a fund
receives a fee as consideration for agreeing to repurchase the security, a fund
forgoes the right to receive all principal and interest payments while the
counterparty holds the security. These payments to the counterparty may exceed
the fee received by a fund, thereby effectively charging a fund interest on its
borrowing. Further, although a fund can estimate the amount of expected
principal prepayment over the term of the dollar roll, a variation in the actual
amount of prepayment could increase or decrease the cost of a fund's borrowing.

The entry into dollar rolls involves potential risks of loss that are different
from those related to the securities underlying the transactions. For example,
if the counterparty becomes insolvent, a fund's right to purchase from the
counterparty might be restricted. Additionally, the value of such securities may
change adversely before a fund is able to purchase them. Similarly, a fund may
be required to purchase securities in connection with a dollar roll at a higher
price than may otherwise be available on the open market. Since, as noted above,
the counterparty is required to deliver a similar, but not identical security to
a fund, the security that a fund is required to buy under the dollar roll may be
worth less than an identical security. Finally, there can be no assurance that a
fund's use of the cash that it receives from a dollar roll will provide a return
that exceeds borrowing costs.

Equities as a result of workouts. A fund may hold equity securities received in
an exchange or workout of distressed lower-rated debt securities. A distressed
security is a security that is in default or in risk of being in default.


Eurodollar Instruments. A fund may make investments in Eurodollar instruments
for hedging purposes or to enhance potential gain. Eurodollar instruments are US
dollar-denominated futures contracts or options thereon which are linked to the
London Interbank Offered Rate ("LIBOR"), although foreign currency-denominated
instruments are available from time to time. Eurodollar futures contracts enable
purchasers to obtain a fixed rate for the lending of funds and sellers to obtain
a fixed rate for borrowings. A fund might use Eurodollar futures contracts and
options thereon to hedge against changes in LIBOR, to which many interest rate
swaps and fixed income instruments are linked.


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


Fixed Income Security Risk. Fixed income securities generally expose a fund to
five types of risk: (1) interest rate risk (the potential for fluctuations in
bond prices due to changing interest rates); (2) income risk (the potential for
a decline in the fund's income due to falling market interest rates); (3) credit
risk (the possibility that a bond issuer will fail to make timely payments of
either interest or principal to the fund); (4) prepayment risk or call risk (the
likelihood that, during periods of falling interest rates, securities with high
stated interest rates will be prepaid, or "called" prior to maturity, requiring
the fund to invest the proceeds at generally lower interest rates); and (5)
extension risk (the likelihood that as interest rates increase, slower than
expected principal payments may extend the average life of fixed income
securities, which will have the effect of locking in a below-market interest
rate, increasing the security's duration and reducing the value of the
security).


Foreign Currencies. Because investments in foreign securities will usually
involve currencies of foreign countries, and because a fund may hold foreign
currencies and forward foreign currency exchange contracts ("forward
contracts"), futures contracts, options on futures contracts on foreign
currencies and other currency-related instruments, the value of the assets of a
fund as measured in US dollars may be affected favorably or unfavorably by
changes in foreign currency exchange rates and exchange control regulations, and
a fund may incur costs in connection with conversions between various
currencies.

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

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

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

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

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

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

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

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

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

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

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

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

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

Foreign Securities. Investments in foreign securities involves certain special
considerations, including those set forth below, which are not typically
associated with investing in US securities and which may favorably or
unfavorably affect a fund's performance. As foreign companies are not generally
subject to uniform accounting, auditing and financial reporting standards,
practices and requirements comparable to those applicable to domestic companies,
there may be less publicly available information about a foreign company than
about a domestic company. Many foreign stock markets, while growing in volume of
trading activity, have substantially less volume than the New York Stock
Exchange, Inc. (the "Exchange"), and securities of some foreign companies are
less liquid and more volatile than securities of domestic companies. Similarly,
volume and liquidity in most foreign bond markets is less than in the US and at
times, volatility of price can be greater than in the US. Further, foreign
markets have different clearance and settlement procedures and in certain
markets there have been times when settlements have been unable to keep pace
with the volume of securities transactions, making it difficult to conduct such
transactions. Delays in settlement could result in temporary periods when assets
of a fund are uninvested and no return is earned thereon. The inability of a
fund to make intended security purchases due to settlement problems could cause
a fund to miss attractive investment opportunities. Inability to dispose of
portfolio securities due to settlement problems either could result in losses to
a fund due to subsequent declines in value of the portfolio security or, if a
fund has entered into a contract to sell the security, could result in a
possible liability to the purchaser. Payment for securities without delivery may
be required in certain foreign markets. Fixed commissions on some foreign stock
exchanges are generally higher than negotiated commissions on US exchanges,
although a fund will endeavor to achieve the most favorable net results on its
portfolio transactions. Further, a fund may encounter difficulties or be unable
to pursue legal remedies and obtain judgments in foreign courts. There is
generally less government supervision and regulation of business and industry
practices, stock exchanges, brokers and listed companies than in the US. It may
be more difficult for a fund's agents to keep currently informed about corporate
actions such as stock dividends or other matters which may affect the prices of
portfolio securities. Communications between the US and foreign countries may be
less reliable than within the US, thus increasing the risk of delayed
settlements of portfolio transactions or loss of certificates for portfolio
securities. In addition, with respect to certain foreign countries, there is the
possibility of expropriation or confiscatory taxation, political or social
instability, or diplomatic developments which could affect US investments in
those countries. Moreover, individual foreign economies may differ favorably or
unfavorably from the US economy in such respects as growth of gross national
product, rate of inflation, capital reinvestment, resource self-sufficiency and
balance of payments position. The management of a fund seeks to mitigate the
risks associated with the foregoing considerations through diversification and
continuous professional management.

Gold or Precious Metals Custody. Gold and other precious metals held by or on
behalf of a fund may be held on either an allocated or an unallocated basis
inside or outside the US. Placing gold or precious metals in an allocated
custody account gives the fund a direct interest in specified gold bars or
precious metals, whereas an unallocated deposit does not and instead gives the
Fund a right only to compel the counterparty to deliver a specific amount of
gold or precious metals, as applicable. Consequently, a fund could experience a
loss if the counterparty to an unallocated deposit arrangement becomes bankrupt
or fails to deliver the gold or precious metals as requested. An allocated gold
or precious metals custody account also involves the risk that the gold or
precious metals will be stolen or damaged while in transit. Both allocated and
unallocated arrangements require a fund as seller to deliver, either by book
entry or physically, the gold or precious metals sold in advance of the receipt
of payment.

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

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

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

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

Prices for high-yield may be affected by legislative and regulatory
developments. Also, Congress has from time to time considered legislation which
would restrict or eliminate the corporate tax deduction for interest payments in
these securities and regulate corporate restructurings. Such legislation may
significantly depress the prices of outstanding securities of this type.

A portion of the high-yield acquired by a fund will be purchased upon issuance,
which may involve special risks because the securities so acquired are new
issues. In such instances a fund may be a substantial purchaser of the issue and
therefore have the opportunity to participate in structuring the terms of the
offering. Although this may enable a fund to seek to protect itself against
certain of such risks, the considerations discussed herein would nevertheless
remain applicable.

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

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

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

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

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


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

Impact of Sub-Prime Mortgage Market. A fund may invest in mortgage-backed,
asset-backed and other fixed-income securities whose value and liquidity may be
adversely affected by the critical downturn in the sub-prime mortgage lending
market in the US. Sub-prime loans, which have higher interest rates, are made to
borrowers with low credit ratings or other factors that increase the risk of
default. Concerns about widespread defaults on sub-prime loans have also created
heightened volatility and turmoil in the general credit markets. As a result, a
fund's investments in certain fixed-income securities may decline in value,
their market value may be more difficult to determine, and a fund may have more
difficulty disposing of them.


Indexed Securities. A fund may invest in indexed securities, the value of which
is linked to currencies, interest rates, commodities, indices or other financial
indicators ("reference instruments"). Most indexed securities have maturities of
three years or less.

Indexed securities differ from other types of debt securities in which a fund
may invest in several respects. First, the interest rate or, unlike other debt
securities, the principal amount payable at maturity of an indexed security may
vary based on changes in one or more specified reference instruments, such as an
interest rate compared with a fixed interest rate or the currency exchange rates
between two currencies (neither of which need be the currency in which the
instrument is denominated). The reference instrument need not be related to the
terms of the indexed security. For example, the principal amount of a US dollar
denominated indexed security may vary based on the exchange rate of two foreign
currencies. An indexed security may be positively or negatively indexed; that
is, its value may increase or decrease if the value of the reference instrument
increases. Further, the change in the principal amount payable or the interest
rate of an indexed security may be a multiple of the percentage change (positive
or negative) in the value of the underlying reference instrument(s).

Investment in indexed securities involves certain risks. In addition to the
credit risk of the security's issuer and the normal risks of price changes in
response to changes in interest rates, the principal amount of indexed
securities may decrease as a result of changes in the value of reference
instruments. Further, in the case of certain indexed securities in which the
interest rate is linked to a reference instrument, the interest rate may be
reduced to zero, and any further declines in the value of the security may then
reduce the principal amount payable on maturity. Finally, indexed securities may
be more volatile than the reference instruments underlying the indexed
securities.

Inflation-Indexed Instruments. A fund may purchase inflation-indexed securities
issued by the US Treasury, US government agencies and instrumentalities other
than the US Treasury, and entities other than the US Treasury or US government
agencies and instrumentalities.

Inflation-indexed bonds are fixed income securities or other instruments whose
principal value is periodically adjusted according to the rate of inflation. Two
structures are common. The US Treasury and some other issuers use a structure
that accrues inflation on either a current or lagged basis into the principal
value of the bond. Most other issuers pay out the price index accruals as part
of a semiannual coupon.

Inflation-indexed securities issued by the US Treasury have maturities of five,
ten or thirty years, although it is possible that securities with other
maturities will be issued in the future. The US Treasury securities pay interest
on a semiannual basis, equal to a fixed percentage of the inflation-adjusted
principal amount. For example, if a Fund purchased an inflation-indexed bond
with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%
semiannually), and calculated inflation over the first six months was 1%, the
mid-year value of the bond would be $1,010 and the first semiannual interest
payment would be $15.15 ($1,010 times 1.5%). If calculated inflation during the
second half of the year resulted in the whole year's inflation equaling 3%, the
end of year value of the bond would be $1,030 and the second semiannual interest
payment would be $15.45 ($1,030 times 1.5%).

If the periodic adjustment rate measuring inflation falls, the principal value
of inflation-indexed bonds will be adjusted downward, and, consequently, the
interest payable on these securities (calculated with respect to a smaller
principal amount) will be reduced. Repayment of the original bond principal on
maturity (as adjusted for inflation) is guaranteed in the case of US Treasury
inflation-indexed bonds, even during a period of deflation. However, the current
market value of the bonds is not guaranteed and will fluctuate. A fund may also
invest in other inflation related bonds that may or may not provide a similar
guarantee. If a guarantee of principal is not provided, the adjusted principal
value of the bond repaid at maturity may be less than the original principal. In
addition, if a fund purchases inflation-indexed bonds offered by foreign
issuers, the rate of inflation measured by the foreign inflation index may not
be correlated to the rate of inflation in the US.

The value of inflation-indexed bonds is expected to change in response to
changes in real interest rates. Real interest rates, in turn, are tied to the
relationship between nominal interest rates and the rate of inflation.
Therefore, if inflation were to rise at a faster rate than nominal interest
rates, real interest rates might decline, leading to an increase in value of
inflation-indexed bonds. In contrast, if nominal interest rates increased at a
faster rate than inflation, real interest rates might rise, leading to a
decrease in value of inflation-indexed bonds. There can be no assurance,
however, that the value of inflation-indexed bonds will be directly correlated
to changes in interest rates.

While these securities are expected to be protected from long-term inflationary
trends, short-term increases in inflation may lead to a decline in value. If
interest rates rise due to reasons other than inflation (for example, due to
changes in currency exchange rates), investors in these securities may not be
protected to the extent that the increase is not reflected in the bond's
inflation measure.

In general, the measure used to determine the periodic adjustment of US
inflation-indexed bonds is the Consumer Price Index for Urban Consumers
("CPI-U"), which is calculated monthly by the US Bureau of Labor Statistics. The
CPI-U is a measurement of changes in the cost of living, made up of components
such as housing, food, transportation and energy. The inflation adjustment to
the securities references this index with a three month lag. Inflation-indexed
bonds issued by a foreign government are generally adjusted to reflect a
comparable inflation index calculate by the applicable government. There can be
no assurance that the CPI-U or any foreign inflation index will accurately
measure the real rate of inflation in the prices of goods and services.
Moreover, there can be no assurance that the rate of inflation in a foreign
country will be correlated to the rate of inflation in the US. Finally, income
distributions of a fund are likely to fluctuate more than those of a
conventional bond fund.

The taxation of inflation-indexed US Treasury securities is similar to the
taxation of conventional bonds. Both interest payments and the difference
between original principal and the inflation-adjusted principal will be treated
as interest income subject to taxation. Interest payments are taxable when
received or accrued. The inflation adjustment to the principal is subject to tax
in the year the adjustment is made, not at maturity of the security when the
cash from the repayment of principal is received. If an upward adjustment has
been made (which typically should happen), investors in non-tax-deferred
accounts will pay taxes on this amount currently. Decreases in the indexed
principal can be deducted only from current or previous interest payments
reported as income.

Inflation-indexed US Treasury securities therefore have a potential cash flow
mismatch to an investor, because investors must pay taxes on the
inflation-adjusted principal before the repayment of principal is received. It
is possible that, particularly for high income tax bracket investors,
inflation-indexed US Treasury securities would not generate enough income in a
given year to cover the tax liability they could create. This is similar to the
current tax treatment for zero-coupon bonds and other discount securities. If
inflation-indexed US Treasury securities are sold prior to maturity, capital
losses or gains are realized in the same manner as traditional bonds.

Inflation-indexed securities are designed to offer a return linked to inflation,
thereby protecting future purchasing power of the money invested in them.
However, inflation-indexed securities provide this protected return only if held
to maturity. In addition, inflation-indexed securities may not trade at par
value. Real interest rates (the market rate of interest less the anticipated
rate of inflation) change over time as a result of many factors, such as what
investors are demanding as a true value for money. When real rates do change,
inflation-indexed securities prices will be more sensitive to these changes than
conventional bonds, because these securities were sold originally based upon a
real interest rate that is no longer prevailing. Should market expectations for
real interest rates rise, the price of inflation-indexed securities and the
share price of a Fund may fall. Investors in the fund should be prepared to
accept not only this share price volatility but also the possible adverse tax
consequences it may cause.

An investment in securities featuring inflation-adjusted principal and/or
interest involves factors not associated with more traditional fixed-principal
securities. Such factors include the possibility that the inflation index may be
subject to significant changes, that changes in the index may or may not
correlate to changes in interest rates generally or changes in other indices, or
that the resulting interest may be greater or less than that payable on other
securities of similar maturities. In the event of sustained deflation, it is
possible that the amount of semiannual interest payments, the inflation-adjusted
principal of the security and the value of the stripped components, will
decrease. If any of these possibilities are realized, a Fund's net asset value
could be negatively affected.

Interfund Borrowing and Lending Program. Each fund has received exemptive relief
from the Securities and Exchange Commission (the "SEC"), which permits the funds
to participate in an interfund-lending program among certain investment
companies advised by the Advisor. The interfund-lending program allows the
participating funds to borrow money from and loan money to each other for
temporary or emergency purposes. The program is subject to a number of
conditions designed to ensure fair and equitable treatment of all participating
funds, including the following: (1) no fund may borrow money through the program
unless it receives a more favorable interest rate than a rate approximating the
lowest interest rate at which bank loans would be available to any of the
participating funds under a loan agreement; and (2) no fund may lend money
through the program unless it receives a more favorable return than that
available from an investment in repurchase agreements and, to the extent
applicable, money market cash sweep arrangements. In addition, a fund may
participate in the program only if and to the extent that such participation is
consistent with a fund's investment objectives and policies (for instance, money
market funds would normally participate only as lenders and tax exempt funds
only as borrowers). Interfund loans and borrowings may extend overnight, but
could have a maximum duration of seven days. Loans may be called on one day's
notice. A fund may have to borrow from a bank at a higher interest rate if an
interfund loan is called or not renewed. Any delay in repayment to a lending
fund could result in a lost investment opportunity or additional costs. The
program is subject to the oversight and periodic review of the Boards of the
participating funds. To the extent the funds are actually engaged in borrowing
through the interfund lending program, such borrowings will comply with each
fund's non-fundamental policies.

Inverse Floaters. A fund may invest in inverse floaters. Inverse floaters are
debt instruments with a floating rate of interest that bears an inverse
relationship to changes in short-term market interest rates. Investments in this
type of security involve special risks as compared to investments in, for
example, a fixed rate municipal security. A fund could lose money and its NAV
could decline if movements in interest rates are incorrectly anticipated.
Moreover, the markets for securities of this type may be less developed and may
have less liquidity than the markets for more traditional municipal securities.

Investing in Emerging Markets. A fund's investments in foreign securities may be
in developed countries or in countries considered by a fund's advisor to have
developing or "emerging" markets, which involves exposure to economic structures
that are generally less diverse and mature than in the United States, and to
political systems that may be less stable. A developing or emerging market
country can be considered to be a country that is in the initial stages of its
industrialization cycle. Currently, emerging markets generally include every
country in the world other than the United States, Canada, Japan, Australia, New
Zealand, Hong Kong, Singapore and most Western European countries. Currently,
investing in many emerging markets may not be desirable or feasible because of
the lack of adequate custody arrangements for a fund's assets, overly burdensome
repatriation and similar restrictions, the lack of organized and liquid
securities markets, unacceptable political risks or other reasons. As
opportunities to invest in securities in emerging markets develop, a fund may
expand and further broaden the group of emerging markets in which it invests. In
the past, markets of developing or emerging market countries have been more
volatile than the markets of developed countries; however, such markets often
have provided higher rates of return to investors. The advisor believes that
these characteristics may be expected to continue in the future.

Most emerging securities markets have substantially less volume and are subject
to less governmental supervision than US securities markets. Securities of many
issuers in emerging markets may be less liquid and more volatile than securities
of comparable domestic issuers. In addition, there is less regulation of
securities exchanges, securities dealers, and listed and unlisted companies in
emerging markets than in the US.

Emerging markets also have different clearance and settlement procedures, and in
certain markets there have been times when settlements have not kept pace with
the volume of securities transactions. Delays in settlement could result in
temporary periods when a portion of the assets of a fund is uninvested and no
return is earned thereon. The inability of a fund to make intended security
purchases due to settlement problems could cause a fund to miss attractive
investment opportunities. Inability to dispose of portfolio securities due to
settlement problems could result either in losses to a fund due to subsequent
declines in value of the portfolio security or, if a fund has entered into a
contract to sell the security, could result in possible liability to the
purchaser. Costs associated with transactions in foreign securities are
generally higher than costs associated with transactions in US securities. Such
transactions also involve additional costs for the purchase or sale of foreign
currency.

Certain emerging markets require prior governmental approval of investments by
foreign persons, limit the amount of investment by foreign persons in a
particular company, limit the investment by foreign persons only to a specific
class of securities of a company that may have less advantageous rights than the
classes available for purchase by domiciliaries of the countries and/or impose
additional taxes on foreign investors. Certain emerging markets may also
restrict investment opportunities in issuers in industries deemed important to
national interest.

Certain emerging markets may require governmental approval for the repatriation
of investment income, capital or the proceeds of sales of securities by foreign
investors. In addition, if a deterioration occurs in an emerging market's
balance of payments or for other reasons, a country could impose temporary
restrictions on foreign capital remittances. A fund could be adversely affected
by delays in, or a refusal to grant, any required governmental approval for
repatriation of capital, as well as by the application to a fund of any
restrictions on investments.

In the course of investment in emerging markets, a fund will be exposed to the
direct or indirect consequences of political, social and economic changes in one
or more emerging markets. While a fund will manage its assets in a manner that
will seek to minimize the exposure to such risks, there can be no assurance that
adverse political, social or economic changes will not cause a fund to suffer a
loss of value in respect of the securities in a fund's portfolio.

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

Volume and liquidity in most foreign markets are less than in the US, and
securities of many foreign companies are less liquid and more volatile than
securities of comparable US companies. Fixed commissions on foreign securities
exchanges are generally higher than negotiated commissions on US exchanges,
although a fund endeavors to achieve the most favorable net results on its
portfolio transactions. There is generally less government supervision and
regulation of business and industry practices, securities exchanges, brokers,
dealers and listed companies than in the US Mail service between the US and
foreign countries may be slower or less reliable than within the US, thus
increasing the risk of delayed settlements of portfolio transactions or loss of
certificates for certificated portfolio securities. In addition, with respect to
certain emerging markets, there is the possibility of expropriation or
confiscatory taxation, political or social instability, or diplomatic
developments which could affect a fund's investments in those countries.
Moreover, individual emerging market economies may differ favorably or
unfavorably from the US economy in such respects as growth of gross national
product, rate of inflation, capital reinvestment, resource self-sufficiency and
balance of payments position.

A fund may have limited legal recourse in the event of a default with respect to
certain debt obligations it holds. If the issuer of a fixed-income security
owned by a fund defaults, a fund may incur additional expenses to seek recovery.
Debt obligations issued by emerging market country governments differ from debt
obligations of private entities; remedies from defaults on debt obligations
issued by emerging market governments, unlike those on private debt, must be
pursued in the courts of the defaulting party itself. A fund's ability to
enforce its rights against private issuers may be limited. The ability to attach
assets to enforce a judgment may be limited. Legal recourse is therefore
somewhat diminished. Bankruptcy, moratorium and other similar laws applicable to
private issuers of debt obligations may be substantially different from those of
other countries. The political context, expressed as an emerging market
governmental issuer's willingness to meet the terms of the debt obligation, for
example, is of considerable importance. In addition, no assurance can be given
that the holders of commercial bank debt may not contest payments to the holders
of debt obligations in the event of default under commercial bank loan
agreements.

Income from securities held by a fund could be reduced by a withholding tax at
the source or other taxes imposed by the emerging market countries in which a
fund makes its investments. A fund's net asset value may also be affected by
changes in the rates or methods of taxation applicable to a fund or to entities
in which a fund has invested. The Advisor will consider the cost of any taxes in
determining whether to acquire any particular investments, but can provide no
assurance that the taxes will not be subject to change.

Many emerging markets have experienced substantial, and, in some periods,
extremely high rates of inflation for many years. Inflation and rapid
fluctuations in inflation rates have had and may continue to have adverse
effects on the economies and securities markets of certain emerging market
countries. In an attempt to control inflation, wage and price controls have been
imposed in certain countries. Of these countries, some, in recent years, have
begun to control inflation through prudent economic policies.

Emerging market governmental issuers are among the largest debtors to commercial
banks, foreign governments, international financial organizations and other
financial institutions. Certain emerging market governmental issuers have not
been able to make payments of interest on or principal of debt obligations as
those payments have come due. Obligations arising from past restructuring
agreements may affect the economic performance and political and social
stability of those issuers.

Governments of many emerging market countries have exercised and continue to
exercise substantial influence over many aspects of the private sector through
the ownership or control of many companies, including some of the largest in any
given country. As a result, government actions in the future could have a
significant effect on economic conditions in emerging markets, which in turn,
may adversely affect companies in the private sector, general market conditions
and prices and yields of certain of the securities in a fund's portfolio.
Expropriation, confiscatory taxation, nationalization, political, economic or
social instability or other similar developments have occurred frequently over
the history of certain emerging markets and could adversely affect a fund's
assets should these conditions recur.

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

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

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

Investment Company Securities. A fund may acquire securities of other investment
companies to the extent consistent with its investment objective and the
limitations of the 1940 Act. A fund will indirectly bear its proportionate share
of any management fees and other expenses paid by such other investment
companies.

For example, a fund may invest in a variety of investment companies which seek
to track the composition and performance of specific indexes or a specific
portion of an index. These index-based investments hold substantially all of
their assets in securities representing their specific index. Accordingly, the
main risk of investing in index-based investments is the same as investing in a
portfolio of equity securities comprising the index. The market prices of
index-based investments will fluctuate in accordance with both changes in the
market value of their underlying portfolio securities and due to supply and
demand for the instruments on the exchanges on which they are traded (which may
result in their trading at a discount or premium to their NAVs). Index-based
investments may not replicate exactly the performance of their specified index
because of transaction costs and because of the temporary unavailability of
certain component securities of the index. In addition, an index-based
investment tracking a specific sector may be adversely affected by the
performance of that specific sector or group of industries on which it is based.

Investment-Grade Bonds. When the Advisor believes that it is appropriate to do
so in order to achieve a fund's objectives, a fund may purchase
"investment-grade" bonds, which are those rated Aaa, Aa, A or Baa by Moody's or
AAA, AA, A or BBB by S&P or, if unrated, judged to be of equivalent quality as
determined by the Advisor. Moody's considers bonds it rates Baa to have
speculative elements as well as investment-grade characteristics. To the extent
that a fund invests in higher-grade securities, a fund will not be able to avail
itself of opportunities for higher income which may be available at lower
grades.

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

IPO Risk. Securities issued through an initial public offering (IPO) can
experience an immediate drop in value if the demand for the securities does not
continue to support the offering price. Information about the issuers of IPO
securities is also difficult to acquire since they are new to the market and may
not have lengthy operating histories. The fund may engage in short-term trading
in connection with its IPO investments, which could produce higher trading costs
and adverse tax consequences. The number of securities issued in an IPO is
limited, so it is likely that IPO securities will represent a smaller component
of a fund's portfolio as the fund's assets increase (and thus have a more
limited effect on the fund's performance).


Lending of Portfolio Securities. A fund may lend its investment securities to
approved institutional borrowers who need to borrow securities in order to
complete certain transactions, such as covering short sales, avoiding failures
to deliver securities or completing arbitrage operations. By lending its
investment securities, the fund attempts to increase its net investment income
through the receipt of interest on the loan. Any gain or loss in the market
price of the securities loaned that might occur during the term of the loan
would belong to the fund. A fund may lend its investment securities so long as
the terms, structure and the aggregate amount of such loans are not inconsistent
with the 1940 Act or the rules and regulations or interpretations of the SEC
thereunder, which currently require, among other things, that (a) the borrower
pledge and maintain with the fund collateral consisting of liquid, unencumbered
assets having a value at all times not less than 100% of the value of the
securities loaned, (b) the borrower add to such collateral whenever the price of
the securities loaned rises (i.e., the borrower "marks to the market" on a daily
basis), (c) the loan be made subject to termination by the fund at any time, and
(d) the fund receives reasonable interest on the loan (which may include the
fund investing any cash collateral in interest bearing short-term investments),
and distributions on the loaned securities and any increase in their market
value. The fund will bear any losses incurred from the investment of the
collateral it receives. There may be risks of delay in recovery of the
securities or even loss of rights in the collateral should the borrower of the
securities fail financially. However, loans will be made only to borrowers
selected by the fund's delegate after a commercially reasonable review of
relevant facts and circumstances, including the creditworthiness of the
borrower.

A fund may pay negotiated fees in connection with loaned securities, pursuant to
written contracts. In addition, voting rights may pass with the loaned
securities, but if a material event occurs affecting an investment on loan, the
loan must be called and the securities voted. Pursuant to an exemptive order
granted by the SEC, cash collateral received by the fund may be invested in a
money market fund managed by the Advisor (or one of its affiliates).




Letters of Credit. Municipal obligations, including certificates of
participation, commercial paper and other short-term obligations, may be backed
by an irrevocable letter of credit of a bank which assumes the obligation for
payment of principal and interest in the event of default by the issuer. Only
banks which, in the opinion of the Advisor, are of investment quality comparable
to other permitted investments of a fund may be used for letter of credit backed
investments.

Loan Participations and Assignments. A fund may invest in fixed- and
floating-rate loans ("Loans") arranged through private negotiations between an
issuer of emerging market debt instruments and one or more financial
institutions ("Lenders"). A fund's investments in Loans are expected in most
instances to be in the form of participations in Loans ("Participations") and
assignments of portions of Loans ("Assignments") from third parties.
Participations typically will result in a fund having a contractual relationship
only with the Lender and not with the borrower. A fund will have the right to
receive payments of principal, interest and any fees to which it is entitled
only from the Lender selling the Participation and only upon receipt by the
Lender of the payments from the borrower. In connection with purchasing
Participations, a fund generally will have no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the Loan, nor any
rights of set-off against the borrower, and a fund may not directly benefit from
any collateral supporting the Loan in which it has purchased the Participation.
As a result, a fund will assume the credit risk of both the borrower and the
Lender that is selling the Participation. In the event of the insolvency of the
Lender selling a Participation, a fund may be treated as a general creditor of
the Lender and may not benefit from any set-off between the Lender and the
borrower. A fund will acquire Participations only if the Lender interpositioned
between a fund and the borrower is determined by the Advisor to be creditworthy.

When a fund purchases Assignments from Lenders, it will acquire direct rights
against the borrower on the Loan. Because Assignments are arranged through
private negotiations between potential assignees and potential assignors,
however, the rights and obligations acquired by a fund as the purchaser of an
Assignment may differ from, and may be more limited than, those held by the
assigning Lender.

A fund may have difficulty disposing of Assignments and Participations. Because
no liquid market for these obligations typically exists, a fund anticipates that
these obligations could be sold only to a limited number of institutional
investors. The lack of a liquid secondary market will have an adverse effect on
a fund's ability to dispose of particular Assignments or Participations when
necessary to meet a fund's liquidity needs or in response to a specific economic
event, such as a deterioration in the creditworthiness of the borrower. The lack
of a liquid secondary market for Assignments and Participations may also make it
more difficult for a fund to assign a value to those securities for purposes of
valuing a fund's portfolio and calculating its net asset value.

Maintenance of $1.00 Net Asset Value, Credit Quality and Portfolio Maturity.
Pursuant to Rule 2a-7 of the 1940 Act, money market funds effect sales,
redemptions and repurchases at the net asset value per share, normally $1.00. In
fulfillment of their responsibilities under that Rule, a fund's Board has
approved policies established by a fund's Advisor reasonably calculated to
prevent a fund's net asset value per share from deviating from $1.00 except
under unusual or extraordinary circumstances and a fund's Board will
periodically review the Advisor's operations under such policies at regularly
scheduled Board meetings. Those policies include a weekly monitoring by the
Advisor of unrealized gains and losses in a fund's portfolio, and when
necessary, in an effort to avoid deviation, taking corrective action, such as
adjusting the maturity of the portfolio, or, if possible, realizing gains or
losses to offset in part unrealized losses or gains. The result of those
policies may be that the yield on shares of a fund will be lower than would be
the case if the policies were not in effect. Such policies also provide for
certain action to be taken with respect to portfolio securities which experience
a downgrade in rating or suffer a default.

Securities eligible for investment by a fund are those securities which are
generally rated (or issued by an issuer with comparable securities rated) in the
highest short-term rating category by at least two rating services (or by one
rating service, if no other rating agency has issued a rating with respect to
that security). These securities are known as "first tier securities."
Securities generally rated (or issued by an issuer with comparable securities
rated) in the top two categories by at least two rating agencies (or one, if
only one rating agency has rated the security) which do not qualify as first
tier securities are known as "second tier securities." To ensure diversity of a
fund's investments, a fund will not invest more than 5% of its total assets in
the securities of a single issuer, other than the US Government. A fund may,
however, invest more than 5% of its total assets in the first tier securities of
a single issuer for a period of up to three business days after purchase,
although a fund may not make more than one such investment at any time during
such period. A fund may not invest more than 5% of its total assets in
securities which were second tier securities when acquired by a fund. Further, a
fund may not invest more than the greater of (1) 1% of its total assets, or (2)
one million dollars, in the securities of a single issuer which were second tier
securities when acquired by a fund.

The assets of a fund consist entirely of cash items and investments having a
stated maturity date of 397 calendar days or less from the date of purchase
(including investment in repurchase agreements, in which case maturity is
measured by the repurchase date, without respect to the maturity of the
obligation). The term "Government securities," as used herein, means securities
issued or guaranteed as to principal or interest by the US Government, its
agencies or instrumentalities. The portfolio of a fund will be managed so that
the average maturity of all instruments (on a dollar-weighted basis) will be 90
days or less. The average maturity of a fund will vary according to the
management's appraisal of money market conditions. A fund will invest only in
securities determined by or under the direction of the Board to be of high
quality with minimal credit risks.

Micro-Cap Company Risk. While, historically, micro-capitalization company stocks
have outperformed the stocks of large companies, the former have customarily
involved more investment risk as well. There can be no assurance that this will
continue to be true in the future. Micro-capitalization companies may have
limited product lines, markets or financial resources; may lack management depth
or experience; and may be more vulnerable to adverse general market or economic
developments than large companies. The prices of micro-capitalization company
securities are often more volatile than prices associated with large company
issues, and can display abrupt or erratic movements at times, due to limited
trading volumes and less publicly available information.

Also, because micro-capitalization companies normally have fewer shares
outstanding and these shares trade less frequently than large companies, it may
be more difficult for a fund to buy and sell significant amounts of such shares
without an unfavorable impact on prevailing market prices.

Some of the companies in which a fund may invest may distribute, sell or produce
products which have recently been brought to market and may be dependent on key
personnel. The securities of micro-capitalization companies are often traded
over-the-counter and may not be traded in the volumes typical on a national
securities exchange. Consequently, in order to sell this type of holding, a fund
may need to discount the securities from recent prices or dispose of the
securities over a long period of time.

Mining and Exploration. The business of gold mining by its nature involves
significant risks and hazards, including environmental hazards, industrial
accidents, labor disputes, discharge of toxic chemicals, fire, drought, flooding
and natural acts. The occurrence of any of these hazards can delay production,
increase production costs and result in liability to the operator of the mines.
A mining operation may become subject to liability for pollution or other
hazards against which it has not insured or cannot insure, including those in
respect of past mining activities for which it was not responsible.

Exploration for gold and other precious metals is speculative in nature,
involves many risks and frequently is unsuccessful. There can be no assurance
that any mineralisation discovered will result in an increase in the proven and
probable reserves of a mining operation. If reserves are developed, it can take
a number of years from the initial phases of drilling and identification of
mineralisation until production is possible, during which time the economic
feasibility of production may change. Substantial expenditures are required to
establish ore reserves properties and to construct mining and processing
facilities. As a result of these uncertainties, no assurance can be given that
the exploration programs undertaken by a particular mining operation will
actually result in any new commercial mining.

Mortgage-Backed Securities and Mortgage Pass-Through Securities. Mortgage-backed
securities are interests in pools of mortgage loans, including mortgage loans
made by savings and loan institutions, mortgage bankers, commercial banks and
others. Pools of mortgage loans are assembled as securities for sale to
investors by various governmental, government-related and private organizations
as further described below. Underlying mortgages may be of a variety of types,
including adjustable rate, conventional 30-year, graduated payment and 15-year.

A decline in interest rates may lead to a faster rate of repayment of the
underlying mortgages, and may expose a fund to a lower rate of return upon
reinvestment. To the extent that such mortgage-backed securities are held by a
fund, the prepayment right will tend to limit to some degree the increase in net
asset value of a fund because the value of the mortgage-backed securities held
by a fund may not appreciate as rapidly as the price of non-callable debt
securities. Mortgage-backed securities are subject to the risk of prepayment and
the risk that the underlying loans will not be repaid. Because principal may be
prepaid at any time, mortgage-backed securities may involve significantly
greater price and yield volatility than traditional debt securities.

When interest rates rise, mortgage prepayment rates tend to decline, thus
lengthening the life of a mortgage-related security and increasing the price
volatility of that security, affecting the price volatility of a fund's shares.

Interests in pools of mortgage-backed securities differ from other forms of debt
securities, which normally provide for periodic payment of interest in fixed
amounts with principal payments at maturity or specified call dates. Instead,
these securities provide a monthly payment which consists of both interest and
principal payments. In effect, these payments are a "pass-through" of the
monthly payments made by the individual borrowers on their mortgage loans, net
of any fees paid to the issuer or guarantor of such securities. Additional
payments are caused by repayments of principal resulting from the sale of the
underlying property, refinancing or foreclosure, net of fees or costs which may
be incurred. Some mortgage-related securities (such as securities issued by the
Government National Mortgage Association ("GNMA")) are described as "modified
pass-through." These securities entitle the holder to receive all interest and
principal payments owed on the mortgage pool, net of certain fees, at the
scheduled payment dates regardless of whether or not the mortgagor actually
makes the payment.

The principal governmental guarantor of mortgage-related securities is GNMA.
GNMA is a wholly owned US Government corporation within the Department of
Housing and Urban Development. GNMA is authorized to guarantee, with the full
faith and credit of the US Government, the timely payment of principal and
interest on securities issued by institutions approved by GNMA (such as savings
and loan institutions, commercial banks and mortgage bankers) and backed by
pools of FHA-insured or VA-guaranteed mortgages. These guarantees, however, do
not apply to the market value or yield of mortgage-backed securities or to the
value of fund shares. Also, GNMA securities often are purchased at a premium
over the maturity value of the underlying mortgages. This premium is not
guaranteed and will be lost if prepayment occurs.

Government-related guarantors (i.e., not backed by the full faith and credit of
the US Government) include Fannie Mae and the Federal Home Loan Mortgage
Corporation ("FHLMC"). Fannie Mae is a government-sponsored corporation owned
entirely by private stockholders. It is subject to general regulation by the
Secretary of Housing and Urban Development. Fannie Mae purchases conventional
(i.e., not insured or guaranteed by any government agency) mortgages from a list
of approved seller/servicers which include state and federally chartered savings
and loan associations, mutual savings banks, commercial banks and credit unions
and mortgage bankers. Pass-through securities issued by Fannie Mae are
guaranteed as to timely payment of principal and interest by Fannie Mae but are
not backed by the full faith and credit of the US Government.

FHLMC is a corporate instrumentality of the US Government and was created by
Congress in 1970 for the purpose of increasing the availability of mortgage
credit for residential housing. Its stock is owned by the twelve Federal Home
Loan Banks. FHLMC issues Participation Certificates ("PCs") which represent
interests in conventional mortgages from FHLMC's national portfolio. FHLMC
guarantees the timely payment of interest and ultimate collection of principal,
but PCs are not backed by the full faith and credit of the US Government.


Mortgage-backed securities may be issued or guaranteed by GNMA, FNMA (also known
as Fannie Mae) and FHLMC (also known as Freddie Mac), but also may be issued or
guaranteed by other issuers, including private companies. GNMA is a
government-owned corporation that is an agency of the U.S. Department of Housing
and Urban Development. It guarantees, with the full faith and credit of the
United States, full and timely payment of all monthly principal and interest on
its mortgage-backed securities. Until recently, FNMA and FHLMC were
government-sponsored corporations owned entirely by private stockholders. Both
issue mortgage-related securities that contain guarantees as to timely payment
of interest and principal but that are not backed by the full faith and credit
of the U.S. government. The value of the companies' securities fell sharply in
2008 due to concerns that the firms did not have sufficient capital to offset
losses. In mid-2008, the U.S. Treasury was authorized to increase the size of
home loans that FNMA and FHLMC could purchase in certain residential areas and,
until 2009, to lend FNMA and FHLMC emergency funds and to purchase the
companies' stock. More recently, in September 2008, the U.S. Treasury announced
that FNMA and FHLMC had been placed in conservatorship by the Federal Housing
Finance Agency ("FHFA"), a newly created independent regulator. In addition to
placing the companies in conservatorship, the U.S. Treasury announced three
additional steps that it intended to take with respect to FNMA and FHLMC. First,
the U.S. Treasury has entered into preferred stock purchase agreements ("PSPAs")
under which, if the FHFA determines that FNMA's or FHLMC's liabilities have
exceeded its assets under generally accepted accounting principles, the U.S.
Treasury will contribute cash capital to the company in an amount equal to the
difference between liabilities and assets. The PSPAs are designed to provide
protection to the senior and subordinated debt and the mortgage-backed
securities issued by FNMA and FHLMC. Second, the U.S. Treasury established a new
secured lending credit facility that is available to FNMA and FHLMC until
December 2009. Third, the U.S. Treasury initiated a temporary program to
purchase FNMA and FHLMC mortgage-backed securities, which is expected to
continue until December 2009. No assurance can be given that the U.S. Treasury
initiatives discussed above with respect to the debt and mortgage-backed
securities issued by FNMA and FHLMC will be successful.


Commercial banks, savings and loan institutions, private mortgage insurance
companies, mortgage bankers and other secondary market issuers also create
pass-through pools of conventional mortgage loans. Such issuers may, in
addition, be the originators and/or servicers of the underlying mortgage loans
as well as the guarantors of the mortgage-related securities. Pools created by
such non-governmental issuers generally offer a higher rate of interest than
government and government-related pools because there are no direct or indirect
government or agency guarantees of payments. However, timely payment of interest
and principal of these pools may be supported by various forms of insurance or
guarantees, including individual loan, title, pool and hazard insurance and
letters of credit. The insurance and guarantees are issued by governmental
entities, private insurers and the mortgage poolers. Such insurance and
guarantees and the creditworthiness of the issuers thereof will be considered in
determining whether a mortgage-related security meets a fund's investment
quality standards. There can be no assurance that the private insurers or
guarantors can meet their obligations under the insurance policies or guarantee
arrangements. A fund may buy mortgage-related securities without insurance or
guarantees, if through an examination of the loan experience and practices of
the originators/servicers and poolers, the underlying fund's advisor determines
that the securities meet a fund's quality standards. Although the market for
such securities is becoming increasingly liquid, securities issued by certain
private organizations may not be readily marketable.

Mortgage Dollar Rolls. A fund may enter into mortgage "dollar rolls" in which a
fund sells securities for delivery in the current month and simultaneously
contracts to repurchase substantially similar, but not identical (same type,
coupon and maturity), securities on a specified future date. During the roll
period, a fund forgoes principal and interest paid on the securities. A fund is
compensated by the difference between the current sales price and the lower
forward price for the future purchase (often referred to as the "drop") or fee
income and by the interest earned on the cash proceeds of the initial sale. A
"covered roll" is a specific type of dollar roll for which there is an
offsetting cash position or a cash equivalent security position which matures on
or before the forward settlement date of the dollar roll transaction. A fund may
enter into both covered and uncovered rolls. At the time a fund enters into a
dollar roll transaction, it will segregate with an approved custodian cash or
liquid securities having a value not less than the repurchase price (including
accrued interest) and will subsequently monitor the segregated assets to ensure
that its value is maintained.


Municipal Securities. A fund may invest to a limited extent in municipal
securities. Municipal securities consist of bonds, notes and other instruments
issued by or on behalf of states, territories and possessions of the US
(including the District of Columbia) and their political subdivisions, agencies
or instrumentalities, the interest on which is exempt from regular US federal
income tax (i.e., excluded from gross income for US federal income tax purposes
but not necessarily exempt from the federal alternative minimum tax or from
state and local taxes). Municipal securities may also be issued on a taxable
basis (i.e., the interest on such securities is not exempt from regular US
federal income tax).


Municipal securities are often issued to obtain funds for various public
purposes, including the construction of a wide range of public facilities such
as bridges, highways, housing, hospitals, mass transportation, schools, streets
and water and sewer works. Other public purposes for which municipal securities
may be issued include refunding outstanding obligations, obtaining funds for
general operating expenses, and obtaining funds to lend to other public
institutions and facilities. Municipal securities also include "private
activity" or industrial development bonds, which are issued by or on behalf of
public authorities to provide financing aid to acquire sites or construct or
equip facilities within a municipality for privately or publicly owned
corporations.

The two principal classifications of municipal securities are "general
obligations" and "revenue obligations". General obligations are secured by the
issuer's pledge of its full faith and credit for the payment of principal and
interest although the characteristics and enforcement of general obligations may
vary according to the law applicable to the particular issuer. Revenue
obligations, which include, but are not limited to, private activity bonds,
resource recovery bonds, certificates of participation and certain municipal
notes, are not backed by the credit and taxing authority of the issuer and are
payable solely from the revenues derived from a particular facility or class of
facilities or, in some cases, from the proceeds of a special excise or other
specific revenue source. Nevertheless, the obligations of the issuer may also be
backed by a letter of credit, guarantee or insurance. General obligations and
revenue obligations may be issued in a variety of forms, including commercial
paper, fixed, variable and floating rate securities, tender option bonds,
auction rate bonds and capital appreciation bonds.

In addition to general obligations and revenue obligations, there are a variety
of hybrid and special types of municipal securities. There are also numerous
differences in the credit backing of municipal securities both within and
between these two principal classifications.

For the purpose of applying a fund's investment restrictions, the identification
of the issuer of a municipal security which is not a general obligation is made
by the Advisor based on the characteristics of the municipal security, the most
important of which is the source of funds for the payment of principal and
interest on such securities.

One or a small number of institutional investors such as a fund may purchase an
entire issue of municipal securities. Thus, the issue may not be said to be
publicly offered. Unlike some securities that are not publicly offered, a
secondary market exists for many municipal securities that were not publicly
offered initially and such securities can be readily marketable.

The obligations of an issuer to pay the principal of and interest on a municipal
security are subject to the provisions of bankruptcy, insolvency and other laws
affecting the rights and remedies of creditors, such as the Federal Bankruptcy
Act, and laws, if any, that may be enacted by Congress or state legislatures
extending the time for payment of principal or interest or imposing other
constraints upon the enforcement of such obligations. There is also the
possibility that, because of litigation or other conditions, the power or
ability of the issuer to pay when due principal of or interest on a municipal
security may be materially affected.

Municipal Leases, Certificates of Participation and other Participation
Interests. A municipal lease is an obligation in the form of a lease or
installment purchase contract that is issued by a state or local government to
acquire equipment and facilities. Income from such obligations is generally
exempt from state and local taxes in the state of issuance (as well as regular
federal income tax). Municipal leases frequently involve special risks not
normally associated with general obligation or revenue bonds. Leases and
installment purchase or conditional sale contracts (which normally provide for
title to the leased asset to pass eventually to the governmental issuer) have
evolved as a means for governmental issuers to acquire property and equipment
without meeting the constitutional and statutory requirements for the issuance
of debt. The debt issuance limitations are deemed to be inapplicable because of
the inclusion in many leases or contracts of `non-appropriation' clauses that
relieve the governmental issuer of any obligation to make future payments under
the lease or contract unless money is appropriated for such purpose by the
appropriate legislative body on a yearly or other periodic basis. Thus, a fund's
investment in municipal leases will be subject to the special risk that the
governmental issuer may not appropriate funds for lease payments.

In addition, such leases or contracts may be subject to the temporary abatement
of payments in the event the issuer is prevented from maintaining occupancy of
the leased premises or utilizing the leased equipment. Although the obligations
may be secured by the leased equipment or facilities, the disposition of the
property in the event of nonappropriation or foreclosure might prove difficult,
time consuming and costly, and result in an unsatisfactory or delayed recoupment
of a fund's original investment.

Certificates of participation represent undivided interests in municipal leases,
installment purchase contracts or other instruments. The certificates are
typically issued by a trust or other entity that has received an assignment of
the payments to be made by the state or political subdivision under such leases
or installment purchase contracts.

Certain municipal lease obligations and certificates of participation may be
deemed illiquid for the purpose of a fund's limitations on investments in
illiquid securities. Other municipal lease obligations and certificates of
participation acquired by a fund may be determined by the Advisor, pursuant to
guidelines adopted by the Trustees of the Trust, to be liquid securities for the
purpose of a fund's limitation on investments in illiquid securities. In
determining the liquidity of municipal lease obligations and certificates of
participation, the Advisor will consider a variety of factors including: (1) the
willingness of dealers to bid for the security; (2) the number of dealers
willing to purchase or sell the obligation and the number of other potential
buyers; (3) the frequency of trades or quotes for the obligation; and (4) the
nature of the marketplace trades. In addition, the Advisor will consider factors
unique to particular lease obligations and certificates of participation
affecting the marketability thereof. These include the general creditworthiness
of the issuer, the importance to the issuer of the property covered by the lease
and the likelihood that the marketability of the obligation will be maintained
throughout the time the obligation is held by a fund. A fund may not invest more
than 5% of its net assets in municipal leases.

A fund may purchase participations in municipal securities held by a commercial
bank or other financial institution. Such participations provide a fund with the
right to a pro rata undivided interest in the underlying municipal securities.
In addition, such participations generally provide a fund with the right to
demand payment, on not more than seven days notice, of all or any part of a
fund's participation interest in the underlying municipal security, plus accrued
interest.

Municipal Notes. Municipal securities in the form of notes generally are used to
provide for short-term capital needs, in anticipation of an issuer's receipt of
other revenues or financing, and typically have maturities of up to three years.
Such instruments may include Tax Anticipation Notes, Revenue Anticipation Notes,
Bond Anticipation Notes, Tax and Revenue Anticipation Notes and Construction
Loan Notes. Tax Anticipation Notes are issued to finance the working capital
needs of governments. Generally, they are issued in anticipation of various tax
revenues, such as income, sales, property, use and business taxes, and are
payable from these specific future taxes. Revenue Anticipation Notes are issued
in expectation of receipt of other kinds of revenue, such as federal revenues
available under federal revenue sharing programs. Bond Anticipation Notes are
issued to provide interim financing until long-term bond financing can be
arranged. In most cases, the long-term bonds then provide the funds needed for
repayment of the notes. Tax and Revenue Anticipation Notes combine the funding
sources of both Tax Anticipation Notes and Revenue Anticipation Notes.
Construction Loan Notes are sold to provide construction financing. These notes
are secured by mortgage notes insured by the Federal Housing Authority; however,
the proceeds from the insurance may be less than the economic equivalent of the
payment of principal and interest on the mortgage note if there has been a
default. The obligations of an issuer of municipal notes are generally secured
by the anticipated revenues from taxes, grants or bond financing. An investment
in such instruments, however, presents a risk that the anticipated revenues will
not be received or that such revenues will be insufficient to satisfy the
issuer's payment obligations under the notes or that refinancing will be
otherwise unavailable.


Non-diversification. A fund may be classified as a non-diversified management
investment company under the 1940 Act, which means that the fund is not limited
by the 1940 Act in the proportion of its assets that it may invest in the
obligations of a single issuer. The investment of a large percentage of the
fund's assets in the securities of a small number of issuers may cause the
fund's share price to fluctuate more than that of a diversified fund.

Obligations of Banks and Other Financial Institutions. A fund may invest in US
dollar-denominated fixed rate or variable rate obligations of US or foreign
financial institutions, including banks. Obligations of domestic and foreign
financial institutions in which the fund may invest include (but are not limited
to) certificates of deposit, bankers' acceptances, bank time deposits,
commercial paper, and other US dollar-denominated instruments issued or
supported by the credit of US or foreign financial institutions, including
banks.

For purposes of a fund's investment policies with respect to bank obligations,
the assets of a bank will be deemed to include the assets of its domestic and
foreign branches. Obligations of foreign branches of US banks and foreign banks
may be general obligations of the parent bank in addition to the issuing bank or
may be limited by the terms of a specific obligation and by government
regulation. The fund may invest in obligations of foreign banks or foreign
branches of US banks, which include banks located in the United Kingdom, Grand
Cayman Island, Nassau, Japan and Canada.

Investments in these obligations may entail risks that are different from those
of investments in obligations of US domestic banks because of differences in
political, regulatory and economic systems and conditions. These risks include
future political and economic developments, currency blockage, the possible
imposition of withholding taxes on interest payments, possible seizure or
nationalization of foreign deposits, difficulty or inability of pursuing legal
remedies and obtaining judgments in foreign courts, possible establishment of
exchange controls or the adoption of other foreign governmental restrictions
that might affect adversely the payment of principal and interest on bank
obligations. Foreign branches of US banks and foreign banks may also be subject
to less stringent reserve requirements and to different accounting, auditing,
reporting and record keeping standards than those applicable to domestic
branches of US banks.


Other Asset-Backed Securities. The securitization techniques used to develop
mortgage-backed securities are now being applied to a broad range of assets.
Through the use of trusts and special purpose corporations, various types of
assets, including automobile loans, computer leases and credit card receivables,
are being securitized in pass-through structures similar to mortgage
pass-through structures or in a structure similar to the CMO structure. In
general, the collateral supporting these securities is of shorter maturity than
mortgage loans and is less likely to experience substantial prepayments with
interest rate fluctuations.

Several types of asset-backed securities have already been offered to investors,
including Certificates of Automobile Receivables(SM) ("CARS(SM)"). CARS(SM)
represent undivided fractional interests in a trust whose assets consist of a
pool of motor vehicle retail installment sales contracts and security interests
in the vehicles securing the contracts. Payments of principal and interest on
CARS(SM) are passed through monthly to certificate holders, and are guaranteed
up to certain amounts and for a certain time period by a letter of credit issued
by a financial institution unaffiliated with the trustee or originator of the
trust. An investor's return on CARS(SM) may be affected by early prepayment of
principal on the underlying vehicle sales contracts. If the letter of credit is
exhausted, the trust may be prevented from realizing the full amount due on a
sales contract because of state law requirements and restrictions relating to
foreclosure sales of vehicles and the obtaining of deficiency judgments
following such sales or because of depreciation, damage or loss of a vehicle,
the application of federal and state bankruptcy and insolvency laws, or other
factors. As a result, certificate holders may experience delays in payments or
losses if the letter of credit is exhausted.

Asset-backed securities present certain risks that are not presented by
mortgage-backed securities. Primarily, these securities may not have the benefit
of any security interest in the related assets. Credit card receivables are
generally unsecured and the debtors are entitled to the protection of a number
of state and federal consumer credit laws, many of which give such debtors the
right to set off certain amounts owed on the credit cards, thereby reducing the
balance due. There is the possibility that recoveries on repossessed collateral
may not, in some cases, be available to support payments on these securities.

Asset-backed securities are often backed by a pool of assets representing the
obligations of a number of different parties. To lessen the effect of failures
by obligors on underlying assets to make payments, the securities may contain
elements of credit support which fall into two categories: (i) liquidity
protection, and (ii) protection against losses resulting from ultimate default
by an obligor on the underlying assets. Liquidity protection refers to the
provision of advances, generally by the entity administering the pool of assets,
to ensure that the receipt of payments on the underlying pool occurs in a timely
fashion. Protection against losses results from payment of the insurance
obligations on at least a portion of the assets in the pool. This protection may
be provided through guarantees, policies or letters of credit obtained by the
issuer or sponsor from third parties, through various means of structuring the
transaction or through a combination of such approaches. A fund will not pay any
additional or separate fees for credit support. The degree of credit support
provided for each issue is generally based on historical information respecting
the level of credit risk associated with the underlying assets. Delinquency or
loss in excess of that anticipated or failure of the credit support could
adversely affect the return on an investment in such a security.

A fund may also invest in residual interests in asset-backed securities. In the
case of asset-backed securities issued in a pass-through structure, the cash
flow generated by the underlying assets is applied to make required payments on
the securities and to pay related administrative expenses. The residual in an
asset-backed security pass-through structure represents the interest in any
excess cash flow remaining after making the foregoing payments. The amount of
residual cash flow resulting from a particular issue of asset-backed securities
will depend on, among other things, the characteristics of the underlying
assets, the coupon rates on the securities, prevailing interest rates, the
amount of administrative expenses and the actual prepayment experience on the
underlying assets. Asset-backed security residuals not registered under the 1933
Act may be subject to certain restrictions on transferability. In addition,
there may be no liquid market for such securities.

The availability of asset-backed securities may be affected by legislative or
regulatory developments. It is possible that such developments may require a
fund to dispose of any then-existing holdings of such securities.

Participation Interests. A fund may purchase from financial institutions
participation interests in securities in which the fund may invest. A
participation interest gives a fund an undivided interest in the security in the
proportion that the fund's participation interest bears to the principal amount
of the security. These instruments may have fixed, floating or variable interest
rates. If the participation interest is unrated, or has been given a rating
below that which is permissible for purchase by a fund, the participation
interest will be backed by an irrevocable letter of credit or guarantee of a
bank, or the payment obligation otherwise will be collateralized by US
Government securities, or, in the case of unrated participation interest,
determined by the underlying fund's advisor to be of comparable quality to those
instruments in which a fund may invest. For certain participation interests, a
fund will have the right to demand payment, on not more than seven days' notice,
for all or any part of a fund's participation interests in the security, plus
accrued interest. As to these instruments, the fund generally intends to
exercise its right to demand payment only upon a default under the terms of the
security.

Pre-Refunded Municipal Securities. The principal of and interest on municipal
securities that have been pre-refunded are no longer paid from the original
revenue source for the securities. Instead, after pre-refunding the source of
such payments of the principal of and interest on these securities are typically
paid from an escrow fund consisting of obligations issued or guaranteed by the
US Government. The assets in the escrow fund are derived from the proceeds of
refunding bonds issued by the same issuer as the pre-refunded municipal
securities. Issuers of municipal securities use this advance refunding technique
to obtain more favorable terms with respect to securities that are not yet
subject to call or redemption by the issuer. For example, advance refunding
enables an issuer to refinance debt at lower market interest rates, restructure
debt to improve cash flow or eliminate restrictive covenants in the indenture or
other governing instrument for the pre-refunded municipal securities. However,
except for a change in the revenue source from which principal and interest
payments are made, the pre-refunded municipal securities remain outstanding on
their original terms until they mature or are redeemed by the issuer.
Pre-refunded municipal securities are usually purchased at a price which
represents a premium over their face value.

Private Activity Bonds. Certain types of municipal securities, generally
referred to as industrial development bonds (and referred to under current tax
law as private activity bonds), are issued by or on behalf of public authorities
to obtain funds for privately-operated housing facilities, airport, mass transit
or port facilities, sewage disposal, solid waste disposal or hazardous waste
treatment or disposal facilities and certain local facilities for water supply,
gas or electricity. Other types of industrial development bonds, the proceeds of
which are used for the construction, equipment, repair or improvement of
privately operated industrial or commercial facilities, may constitute municipal
securities, although the current federal tax laws place substantial limitations
on the size of such issues. The interest from certain private activity bonds
owned by a fund (including a fund's distributions attributable to such interest)
may be a preference item for purposes of the alternative minimum tax.

Privatized Enterprises. Investments in foreign securities may include securities
issued by enterprises that have undergone or are currently undergoing
privatization. The governments of certain foreign countries have, to varying
degrees, embarked on privatization programs contemplating the sale of all or
part of their interests in state enterprises. A fund's investments in the
securities of privatized enterprises may include privately negotiated
investments in a government or state-owned or controlled company or enterprise
that has not yet conducted an initial equity offering, investments in the
initial offering of equity securities of a state enterprise or former state
enterprise and investments in the securities of a state enterprise following its
initial equity offering.

In certain jurisdictions, the ability of foreign entities, such as a fund, to
participate in privatizations may be limited by local law, or the price or terms
on which a fund may be able to participate may be less advantageous than for
local investors. Moreover, there can be no assurance that governments that have
embarked on privatization programs will continue to divest their ownership of
state enterprises, that proposed privatizations will be successful or that
governments will not re-nationalize enterprises that have been privatized.

In the case of the enterprises in which a fund may invest, large blocks of the
stock of those enterprises may be held by a small group of stockholders, even
after the initial equity offerings by those enterprises. The sale of some
portion or all of those blocks could have an adverse effect on the price of the
stock of any such enterprise.

Prior to making an initial equity offering, most state enterprises or former
state enterprises go through an internal reorganization or management. Such
reorganizations are made in an attempt to better enable these enterprises to
compete in the private sector. However, certain reorganizations could result in
a management team that does not function as well as an enterprise's prior
management and may have a negative effect on such enterprise. In addition, the
privatization of an enterprise by its government may occur over a number of
years, with the government continuing to hold a controlling position in the
enterprise even after the initial equity offering for the enterprise.

Prior to privatization, most of the state enterprises in which a fund may invest
enjoy the protection of and receive preferential treatment from the respective
sovereigns that own or control them. After making an initial equity offering,
these enterprises may no longer have such protection or receive such
preferential treatment and may become subject to market competition from which
they were previously protected. Some of these enterprises may not be able to
operate effectively in a competitive market and may suffer losses or experience
bankruptcy due to such competition.

Precious Metals. DWS Gold & Precious Metals Fund "concentrates" (for the
purposes of the 1940 Act) its assets in securities related to gold and gold
bullion and coins, which means that as a matter of fundamental policy, at all
times, the fund invests at least 25% of total assets in securities related to
gold and in gold directly. As a result, the fund may be subject to greater
market fluctuation than a fund which has securities representing a broader range
of investment alternatives. In addition, when market conditions warrant, the
fund reserves the freedom to concentrate its assets in securities related to
other precious metals and in those metals directly. The fund may invest up to
25% of its assets in wholly owned subsidiaries of the corporation which invest
in gold, silver, platinum and palladium bullion and in gold and silver coins.
The subsidiaries will incur expenses for the storage and insurance of precious
metals purchased. However, the subsidiaries may realize capital gains from the
sale of metals and may pay distributions to the fund from such gains. Currently,
Scudder Precious Metals, Inc. is the Corporation's only subsidiary. Investments
in precious metals and in precious metals-related securities and companies
involve a relatively high degree of risk. Prices of gold and other precious
metals can be influenced by a variety of global economic, financial and
political factors and may fluctuate markedly over short periods of time. Among
other things, precious metals values can be affected by changes in inflation,
investment speculation, metal sales by governments or central banks, changes in
industrial and commercial demand, and any governmental restrictions on private
ownership of gold or other precious metals.

Real Estate Investment Trusts ("REITs"). REITs are sometimes informally
characterized as equity REITs, mortgage REITs and hybrid REITs. Investment in
REITs may subject a fund to risks associated with the direct ownership of real
estate, such as decreases in real estate values, overbuilding, increased
competition and other risks related to local or general economic conditions,
increases in operating costs and property taxes, changes in zoning laws,
casualty or condemnation losses, possible environmental liabilities, regulatory
limitations on rent and fluctuations in rental income. Equity REITs generally
experience these risks directly through fee or leasehold interests, whereas
mortgage REITs generally experience these risks indirectly through mortgage
interests, unless the mortgage REIT forecloses on the underlying real estate.
Changes in interest rates may also affect the value of a fund's investment in
REITs. For instance, during periods of declining interest rates, certain
mortgage REITs may hold mortgages that the mortgagors elect to prepay, which
prepayment may diminish the yield on securities issued by those REITs.


Certain REITs have relatively small market capitalizations, which may tend to
increase the volatility of the market price of their securities. Furthermore,
REITs are dependent upon specialized management skills, have limited
diversification and are, therefore, subject to risks inherent in operating and
financing a limited number of projects. REITs are also subject to heavy cash
flow dependency, defaults by borrowers and the possibility of failing to qualify
for tax-free pass-through of income under the Code, and to maintain exemption
from the registration requirements of the 1940 Act. By investing in REITs
indirectly through the fund, a shareholder will bear not only his or her
proportionate share of the expenses of a fund, but also, indirectly, similar
expenses of the REITs. In addition, REITs depend generally on their ability to
generate cash flow to make distributions to shareholders.


Repurchase Agreements. A fund may invest in repurchase agreements pursuant to
its investment guidelines. In a repurchase agreement, a fund acquires ownership
of a security and simultaneously commits to resell that security to the seller,
typically a bank or broker/dealer.

A repurchase agreement provides a means for a fund to earn income on funds for
periods as short as overnight. It is an arrangement under which the purchaser
(i.e., a fund) acquires a security ("Obligation") and the seller agrees, at the
time of sale, to repurchase the Obligation at a specified time and price.
Securities subject to a repurchase agreement are held in a segregated account
and the value of such securities is kept at least equal to the repurchase price
on a daily basis. The repurchase price may be higher than the purchase price,
the difference being income to a fund, or the purchase and repurchase prices may
be the same, with interest at a stated rate due to a fund together with the
repurchase price upon repurchase. In either case, the income to a fund is
unrelated to the interest rate on the Obligation itself. Obligations will be
held by the custodian or in the Federal Reserve Book Entry System.

It is not clear whether a court would consider the Obligation purchased by a
fund subject to a repurchase agreement as being owned by a fund or as being
collateral for a loan by a fund to the seller. In the event of the commencement
of bankruptcy or insolvency proceedings with respect to the seller of the
Obligation before repurchase of the Obligation under a repurchase agreement, a
fund may encounter delay and incur costs before being able to sell the security.
Delays may involve loss of interest or decline in price of the Obligation. If
the court characterizes the transaction as a loan and a fund has not perfected a
security interest in the Obligation, a fund may be required to return the
Obligation to the seller's estate and be treated as an unsecured creditor of the
seller. As an unsecured creditor, a fund would be at risk of losing some or all
of the principal and income involved in the transaction. As with any unsecured
debt Obligation purchased for a fund, the Advisor seeks to reduce the risk of
loss through repurchase agreements by analyzing the creditworthiness of the
obligor, in this case the seller of the Obligation. Apart from the risk of
bankruptcy or insolvency proceedings, there is also the risk that the seller may
fail to repurchase the Obligation, in which case a fund may incur a loss if the
proceeds to a fund of the sale to a third party are less than the repurchase
price. However, if the market value (including interest) of the Obligation
subject to the repurchase agreement becomes less than the repurchase price
(including interest), a fund will direct the seller of the Obligation to deliver
additional securities so that the market value (including interest) of all
securities subject to the repurchase agreement will equal or exceed the
repurchase price.

Repurchase Commitments. A fund may enter into repurchase commitments with any
party deemed creditworthy by a fund's advisor, including foreign banks and
broker/dealers, if the transaction is entered into for investment purposes and
the counterparty's creditworthiness is at least equal to that of issuers of
securities which a fund may purchase. Such transactions may not provide a fund
with collateral marked-to-market during the term of the commitment.

Reverse Repurchase Agreements. A fund may enter into "reverse repurchase
agreements," which are repurchase agreements in which a fund, as the seller of
the securities, agrees to repurchase such securities at an agreed time and
price. A fund maintains a segregated account in connection with outstanding
reverse repurchase agreements. A fund will enter into reverse repurchase
agreements only when the advisor believes that the interest income to be earned
from the investment of the proceeds of the transaction will be greater than the
interest expense of the transaction. Such transactions may increase fluctuations
in the market value of fund assets and its yield and may be viewed as a form of
leverage.

Securities Backed by Guarantees. The funds may invest in securities backed by
guarantees from banks, insurance companies and other financial institutions. A
money market fund's ability to maintain a stable share price may depend upon
such guarantees, which are not supported by federal deposit insurance.
Consequently, changes in the credit quality of these institutions could have an
adverse impact on securities they have guaranteed or backed, which could cause
losses to a fund and affect its share price.

Securities with Put Rights. A fund may enter into put transactions with respect
to obligations held in its portfolio with broker/dealers pursuant to a rule
under the 1940 Act, and with commercial banks.

The right of a fund to exercise a put is unconditional and unqualified. A put is
not transferable by a fund, although a fund may sell the underlying securities
to a third party at any time. If necessary and advisable, a fund may pay for
certain puts either separately in cash or by paying a higher price for portfolio
securities that are acquired subject to such a put (thus reducing the yield to
maturity otherwise available for the same securities). A fund expects, however,
that puts generally will be available without the payment of any direct or
indirect consideration.

A fund may enter into puts only with banks or broker/dealers that, in the
opinion of the advisor, present minimal credit risks. The ability of a fund to
exercise a put will depend on the ability of the bank or broker/dealer to pay
for the underlying securities at the time the put is exercised. In the event
that a bank or broker/dealer should default on its obligation to repurchase an
underlying security, a fund might be unable to recover all or a portion of any
loss sustained from having to sell the security elsewhere.

A fund intends to enter into puts solely to maintain liquidity and does not
intend to exercise its rights thereunder for trading purposes. The puts will
only be for periods of substantially less than the life of the underlying
security. The acquisition of a put will not affect the valuation by a fund of
the underlying security. The actual put will be valued at zero in determining
net asset value of a fund. Where a fund pays directly or indirectly for a put,
its cost will be reflected in realized gain or loss when the put is exercised or
expires. If the value of the underlying security increases, the potential for
unrealized or realized gain is reduced by the cost of the put. The maturity of
an obligation purchased by a fund will not be considered shortened by any put to
which such obligation is subject.

Senior Loans. DWS Floating Rate Plus Fund may invest in Senior Loans. Senior
Loans are direct obligations of corporations or other business entities and are
generally arranged by banks or other commercial lending institutions and made
generally to finance internal growth, mergers, acquisitions, stock repurchases
and leveraged buyouts. Senior Loans may include restrictive covenants which must
be maintained by the borrower. Such covenants, in addition to the timely payment
of interest and principal, may include mandatory prepayment provisions arising
from free cash flow, restrictions on dividend payments and usually state that a
borrower must maintain specific minimum financial ratios as well as establishing
limits on total debt. A breach of covenant, which is not waived by the agent, is
normally an event of acceleration, i.e., the agent has the right to call the
outstanding Senior Loan. In addition, loan covenants may include mandatory
prepayment provisions stemming from free cash flow. Free cash flow is cash that
is in excess of capital expenditures plus debt service requirements of principal
and interest. The free cash flow shall be applied to prepay the Senior Loan in
an order of maturity described in the loan documents. Under certain interests in
Senior Loans, the fund may have an obligation to make additional loans upon
demand by the borrower. The fund intends to reserve against such contingent
obligations by segregating sufficient assets in high quality short-term liquid
investments or borrowing to cover such obligations.

The fund's investment in Senior Loans may take the form of purchase of an
assignment or a portion of a Senior Loan from a third party ("assignment") or
acquiring a participation in a Senior Loan ("participation"). The fund may pay a
fee or forego a portion of interest payments to the lender selling a
participation or assignment under the terms of such participation or assignment.
When the fund is a purchaser of an assignment, it typically succeeds to all the
rights and obligations under the loan agreement of the assigning lender and
becomes a lender under the loan agreement with the same rights and obligations
as the assigning lender. Assignments are, however, arranged through private
negotiations between potential assignees and potential assignors, and the rights
and obligations acquired by the purchaser of an assignment may be more limited
than those held by the assigning lender. The fund may also invest in
participations in Senior Loans. With respect to any given Senior Loan, the
rights of the fund when it acquires a participation may be more limited than the
rights of the original lenders or of investors who acquire an assignment.
Participations may entail certain risks relating to the creditworthiness of the
parties from which the participations are obtained.

In a typical interest in a Senior Loan, the agent administers the loan and has
the right to monitor the collateral. The agent is also required to segregate the
principal and interest payments received from the borrower and to hold these
payments for the benefit of the lenders. The fund normally looks to the agent to
collect and distribute principal of and interest on a Senior Loan. Furthermore,
the fund looks to the agent to use normal credit remedies, such as to foreclose
on collateral; monitor credit loan covenants; and notify the lenders of any
adverse changes in the borrower's financial condition or declarations of
insolvency. In the event of a default by the borrower, it is possible, though
unlikely, that the fund could receive a portion of the borrower's collateral. If
the fund receives collateral other than cash, such collateral will be liquidated
and the cash received from such liquidation will be available for investment as
part of the fund's portfolio. At times the fund may also negotiate with the
agent regarding the agent's exercise of credit remedies under a Senior Loan. The
agent is compensated for these services by the borrower as is set forth in the
loan agreement. Such compensation may take the form of a fee or other amount
paid upon the making of the Senior Loan and/or an ongoing fee or other amount.

The loan agreement in connection with Senior Loans sets forth the standard of
care to be exercised by the agents on behalf of the lenders and usually provides
for the termination of the agent's agency status in the event that it fails to
act properly, becomes insolvent, enters FDIC receivership, or if not FDIC
insured, enters into bankruptcy or if the agent resigns. In the event an agent
is unable to perform its obligations as agent, another lender would generally
serve in that capacity.

The fund believes that the principal credit risk associated with acquiring
Senior Loans from another lender is the credit risk associated with the borrower
of the underlying Senior Loan. The fund may incur additional credit risk,
however, when the fund acquires a participation in a Senior Loan from another
lender because the fund must assume the risk of insolvency or bankruptcy of the
other lender from which the Senior Loan was acquired. However, in acquiring
Senior Loans, the fund conducts an analysis and evaluation of the financial
condition of each such lender. The fund has taken the following measures in an
effort to reduce such risks. The fund will only acquire participations in Senior
Loans if the lender selling the participation, and any other persons
interpositioned between the fund and the lender, at the time of investment has
outstanding debt or deposit obligations rated investment grade (BBB or A-3 or
higher by Standards & Poor's Ratings Group ("S&P") or Baa or P-3 or higher by
Moody's Investors Service ("Moody's")) or determined by the Advisor to be of
comparable quality. Long-term debt rated BBB by S&P is regarded by S&P as having
adequate capacity to pay interest and repay principal and debt rated Baa by
Moody's is regarded by Moody's as a medium grade obligation, i.e., it is neither
highly protected nor poorly secured. Commercial paper rated A-1 by S&P indicates
that the degree of safety regarding timely payment is considered by S&P to be
either overwhelming or very strong and issues of commercial paper rated Prime-1
by Moody's are considered by Moody's to have a superior ability for repayment of
senior short-term debt obligations.

Senior Loans, unlike certain bonds, usually do not have call protection. This
means that interests comprising the fund's portfolio, while having a stated one
to ten-year term, may be prepaid, often without penalty. The fund generally
holds Senior Loans to maturity unless it has become necessary to sell them to
adjust the fund's portfolio in accordance with the Advisor's view of current or
expected economic or specific industry or borrower conditions.

Senior Loans frequently require full or partial prepayment of a loan when there
are asset sales or a securities issuance. Prepayments on Senior Loans may also
be made by the borrower at its election. The rate of such prepayments may be
affected by, among other things, general business and economic conditions, as
well as the financial status of the borrower. Prepayment would cause the actual
duration of a Senior Loan to be shorter than its stated maturity. Prepayment may
be deferred by the fund. This should, however, allow the fund to reinvest in a
new loan and recognize as income any unamortized loan fees. This may result in a
new facility fee payable to the fund.

Because interest rates paid on these Senior Loans periodically fluctuate with
the market, it is expected that the prepayment and a subsequent purchase of a
new Senior Loan by the fund will not have a material adverse impact on the yield
of the portfolio. See "Portfolio Transactions."

Under a Senior Loan, the borrower generally must pledge as collateral assets
which may include one or more of the following: cash; accounts receivable;
inventory; property, plant and equipment; both common and preferred stock in its
subsidiaries; trademarks, copyrights, patent rights; and franchise value. The
fund may also receive guarantees as a form of collateral. In some instances, a
Senior Loan may be secured only by stock in a borrower or its affiliates. The
fund may also invest in Senior Loans not secured by any collateral. The market
value of the assets serving as collateral (if any) will, at the time of
investment, in the opinion of the Advisor, equal or exceed the principal amount
of the Senior Loan. The valuations of these assets may be performed by an
independent appraisal. If the agent becomes aware that the value of the
collateral has declined, the agent may take action as it deemed necessary for
the protection of its own interests and the interests of the other lenders,
including, for example, giving the borrower an opportunity to provide additional
collateral or accelerating the loan. There is no assurance, however, that the
borrower would provide additional collateral or that the liquidation of the
existing collateral would satisfy the borrower's obligation in the event of
nonpayment of scheduled interest or principal, or that such collateral could be
readily liquidated.

The fund may be required to pay and may receive various fees and commissions in
the process of purchasing, selling and holding Senior Loans. The fee component
may include any, or a combination of, the following elements: arrangement fees,
non-use fees, facility fees, letter of credit fees and ticking fees. Arrangement
fees are paid at the commencement of a loan as compensation for the initiation
of the transaction. A non-use fee is paid based upon the amount committed but
not used under the loan. Facility fees are on-going annual fees paid in
connection with a loan. Letter of credit fees are paid if a loan involves a
letter of credit. Ticking fees are paid from the initial commitment indication
until loan closing if for an extended period. The amount of fees is negotiated
at the time of transaction.

If legislation or state or federal regulators impose additional requirements or
restrictions on the ability of financial institutions to make loans that are
considered highly leveraged transactions, the availability of Senior Loans for
investment by the fund may be adversely affected. In addition, such requirements
or restrictions could reduce or eliminate sources of financing for certain
borrowers. This would increase the risk of default. If legislation or federal or
state regulators require financial institutions to dispose of Senior Loans that
are considered highly leveraged transactions or subject such Senior Loans to
increased regulatory scrutiny, financial institutions may determine to sell such
Senior Loans. Such sales could result in prices that, in the opinion of the
Advisor, do not represent fair value. If the fund attempts to sell a Senior Loan
at a time when a financial institution is engaging in such a sale, the price the
fund could get for the Senior Loan may be adversely affected.


Short Sales. When a fund takes a long position, it purchases a stock outright.
When DWS Disciplined Market Neutral Fund, DWS Disciplined Long/Short Growth
Fund, DWS Disciplined Long/Short Value Fund or DWS RREEF Global Real Estate
Securities Fund takes a short position, it sells at the current market price a
stock it does not own but has borrowed in anticipation that the market price of
the stock will decline. To complete, or close out, the short sale transaction, a
fund buys the same stock in the market and returns it to the lender. The price
at such time may be more or less than the price at which the security was sold
by a fund. Until the security is replaced, a fund is required to pay the lender
amounts equal to any dividends or interest, which accrue during the period of
the loan. To borrow the security, a fund may also be required to pay a premium,
which would increase the cost of the security sold. The proceeds of the short
sale will be retained by the broker, to the extent necessary to meet the margin
requirements, until the short position is closed out. A fund makes money when
the market price of the borrowed stock goes down and a fund is able to replace
it for less than it earned by selling it short. Alternatively if the price of
the stock goes up after the short sale and before the short position is closed,
a fund will lose money because it will have to pay more to replace the borrowed
stock than it received when it sold the stock short.


A fund may not always be able to close out a short position at a particular time
or at an acceptable price. A lender may request that the borrowed securities be
returned to it on short notice, and a fund may have to buy the borrowed
securities at an unfavorable price. If this occurs at a time that other short
sellers of the same security also want to close out their positions, a "short
squeeze" can occur. A short squeeze occurs when demand is greater than supply
for the stock sold short. A short squeeze makes it more likely that a fund will
have to cover its short sale at an unfavorable price. If that happens, a fund
will lose some or all of the potential profit from, or even incur a loss as a
result of, the short sale.

Until a fund closes its short position or replaces the borrowed security, a fund
will designate liquid assets it owns (other than the short sales proceeds) as
segregated assets to the books of the broker and/or its custodian in an amount
equal to its obligation to purchase the securities sold short, as required by
the 1940 Act. The amount segregated in this manner will be increased or
decreased each business day equal to the change in market value of a fund's
obligation to purchase the security sold short. If the lending broker requires a
fund to deposit additional collateral (in addition to the short sales proceeds
that the broker holds during the period of the short sale), which may be as much
as 50% of the value of the securities sold short, the amount of the additional
collateral may be deducted in determining the amount of cash or liquid assets a
fund is required to segregate to cover the short sale obligation pursuant to the
1940 Act. The amount segregated must be unencumbered by any other obligation or
claim than the obligation that is being covered. Each fund believes that short
sale obligations that are covered, either by an offsetting asset or right
(acquiring the security sold short or having an option to purchase the security
sold short at exercise price that covers the obligation), or by a fund's
segregated asset procedures (or a combination thereof), are not senior
securities under the 1940 Act and are not subject to a fund's borrowing
restrictions. This requirement to segregate assets limits a fund's leveraging of
its investments and the related risk of losses from leveraging. A fund also is
required to pay the lender of the security any dividends or interest that
accrues on a borrowed security during the period of the loan. Depending on the
arrangements made with the broker or custodian, a fund may or may not receive
any payments (including interest) on collateral it has deposited with the
broker.

Short sales involve the risk that a fund will incur a loss by subsequently
buying a security at a higher price than the price at which a fund previously
sold the security short. Any loss will be increased by the amount of
compensation, interest or dividends, and transaction costs a fund must pay to a
lender of the security. In addition, because a fund's loss on a short sale stems
from increases in the value of the security sold short, the extent of such loss,
like the price of the security sold short, is theoretically unlimited. By
contrast, a fund's loss on a long position arises from decreases in the value of
the security held by a fund and therefore is limited by the fact that a
security's value cannot drop below zero.

The use of short sales, in effect, leverages a fund's portfolio, which could
increase a fund's exposure to the market, magnify losses and increase the
volatility of returns.

Although a fund's share price may increase if the securities in its long
portfolio increase in value more than the securities underlying its short
positions, a fund's share price may decrease if the securities underlying its
short positions increase in value more than the securities in its long
portfolio.

While the Advisor has extensive experience managing mutual funds and
institutional accounts, it has not previously managed a long/short strategy.
Although the Adviser believes that its stock selection strategy will be
effective in selecting short positions, there is no assurance that the Adviser
will be successful in applying this approach to a long/short strategy.

Short Sales Against the Box. A fund may make short sales of common stocks if, at
all times when a short position is open, a fund owns the stock or owns preferred
stocks or debt securities convertible or exchangeable, without payment of
further consideration, into the shares of common stock sold short. Short sales
of this kind are referred to as short sales "against the box." The broker/dealer
that executes a short sale generally invests cash proceeds of the sale until
they are paid to a fund. Arrangements may be made with the broker/dealer to
obtain a portion of the interest earned by the broker on the investment of short
sale proceeds. A fund will segregate the common stock or convertible or
exchangeable preferred stock or debt securities in a special account with the
custodian. Uncertainty regarding the tax effects of short sales of appreciated
investments may limit the extent to which a fund may enter into short sales
against the box.

Small Companies. The Advisor believes that many small companies may have sales
and earnings growth rates which exceed those of larger companies, and that such
growth rates may in turn be reflected in more rapid share price appreciation
over time. However, investing in smaller company stocks involves greater risk
than is customarily associated with investing in larger, more established
companies. For example, smaller companies can have limited product lines,
markets, or financial and managerial resources. Smaller companies may also be
dependent on one or a few key persons, and may be more susceptible to losses and
risks of bankruptcy. Also, the securities of smaller companies may be thinly
traded (and therefore have to be sold at a discount from current market prices
or sold in small lots over an extended period of time). Transaction costs in
smaller company stocks may be higher than those of larger companies.

Sovereign Debt. Investment in sovereign debt can involve a high degree of risk.
The governmental entity that controls the repayment of sovereign debt may not be
able or willing to repay the principal and/or interest when due in accordance
with the terms of such debt. A governmental entity's willingness or ability to
repay principal and interest due in a timely manner may be affected by, among
other factors, its cash flow situation, the extent of its foreign reserves, the
availability of sufficient foreign exchange on the date a payment is due, the
relative size of the debt service burden to the economy as a whole, the
governmental entity's policy toward the International Monetary Fund, and the
political constraints to which a governmental entity may be subject.
Governmental entities may also be dependent on expected disbursements from
foreign governments, multilateral agencies and others abroad to reduce principal
and interest arrearages on their debt. The commitment on the part of these
governments, agencies and others to make such disbursements may be conditioned
on a governmental entity's implementation of economic reforms and/or economic
performance and the timely service of such debtor's obligations. Failure to
implement such reforms, achieve such levels of economic performance or repay
principal or interest when due may result in the cancellation of such third
parties commitments to lend funds to the governmental entity, which may further
impair such debtor's ability or willingness to service its debts in a timely
manner. Consequently, governmental entities may default on their sovereign debt.
Holders of sovereign debt may be requested to participate in the rescheduling of
such debt and to extend further loans to governmental entities. There is no
bankruptcy proceeding by which sovereign debt on which governmental entities
have defaulted may be collected in whole or in part.

Stand-by Commitments. A stand-by commitment is a right acquired by a fund, when
it purchases a municipal obligation from a broker, dealer or other financial
institution ("seller"), to sell up to the same principal amount of such
securities back to the seller, at a fund's option, at a specified price.
Stand-by commitments are also known as "puts." The exercise by a fund of a
stand-by commitment is subject to the ability of the other party to fulfill its
contractual commitment.

Stand-by commitments acquired by a fund will have the following features: (1)
they will be in writing and will be physically held by a fund's custodian; (2) a
fund's right to exercise them will be unconditional and unqualified; (3) they
will be entered into only with sellers which in the Advisor's opinion present a
minimal risk of default; (4) although stand-by commitments will not be
transferable, municipal obligations purchased subject to such commitments may be
sold to a third party at any time, even though the commitment is outstanding;
and (5) their exercise price will be (i) a fund's acquisition cost (excluding
any accrued interest which a fund paid on their acquisition), less any amortized
market premium or plus any amortized original issue discount during the period a
fund owned the securities, plus (ii) all interest accrued on the securities
since the last interest payment date.

A fund expects that stand-by commitments generally will be available without the
payment of any direct or indirect consideration. However, if necessary or
advisable, a fund will pay for stand-by commitments, either separately in cash
or by paying a higher price for portfolio securities which are acquired subject
to the commitments.

It is difficult to evaluate the likelihood of use or the potential benefit of a
stand-by commitment. Therefore, it is expected that the Advisor will determine
that stand-by commitments ordinarily have a "fair value" of zero, regardless of
whether any direct or indirect consideration was paid. However, if the market
price of the security subject to the stand-by commitment is less than the
exercise price of the stand-by commitment, such security will ordinarily be
valued at such exercise price. Where a fund has paid for a stand-by commitment,
its cost will be reflected as unrealized depreciation for the period during
which the commitment is held.




Stripped Mortgage-Backed Securities. DWS U.S. Bond Index Fund may purchase
stripped mortgage-backed securities ("SMBS"), which are derivative multi-class
mortgage securities. The market value of the class consisting entirely of
principal payments generally is unusually volatile in response to changes in
interest rates. The yields on a class of SMBS that receives all or most of the
interest from the mortgaged assets are generally higher than prevailing market
yields on other mortgage-backed securities because their cash flow patterns are
more volatile and there is a greater risk that the initial investment will not
be fully recouped. See "Illiquid Securities."

In accordance with a requirement imposed by the staff of the Securities and
Exchange Commission (the "SEC"), the portfolio management team will consider
privately issued fixed rate interest only ("IO") and principal only ("PO") to be
illiquid securities for purposes of the Fund's limitation on investments in
illiquid securities. Unless the portfolio management team determines that a
particular government-issued fixed rate IO or PO is liquid, it will also
consider these IOs and POs to be illiquid.


Supranational Entities. Supranational entities are international organizations
designated or supported by governmental entities to promote economic
reconstruction or development and international banking institutions and related
government agencies. Examples include the International Bank for Reconstruction
and Development (the World Bank), the European Coal and Steel Community, The
Asian Development Bank and the InterAmerican Development Bank. Obligations of
supranational entities are backed by the guarantee of one or more foreign
governmental parties which sponsor the entity.

Synthetic Investments. In certain circumstances, a fund may wish to obtain the
price performance of a security without actually purchasing the security in
circumstances where, for example, the security is illiquid, or is unavailable
for direct investment or available only on less attractive terms. In such
circumstances, a fund may invest in synthetic or derivative alternative
investments ("Synthetic Investments") that are based upon or otherwise relate to
the economic performance of the underlying securities. Synthetic Investments may
include swap transactions, notes or units with variable redemption amounts, and
other similar instruments and contracts. Synthetic Investments typically do not
represent beneficial ownership of the underlying security, usually are not
collateralized or otherwise secured by the counterparty and may or may not have
any credit enhancements attached to them. Accordingly, Synthetic Investments
involve exposure not only to the creditworthiness of the issuer of the
underlying security, changes in exchange rates and future governmental actions
taken by the jurisdiction in which the underlying security is issued, but also
to the creditworthiness and legal standing of the counterparties involved. In
addition, Synthetic Investments typically are illiquid.

Tax-Exempt Commercial Paper. Issues of tax-exempt commercial paper typically
represent short-term, unsecured, negotiable promissory notes. These obligations
are issued by state and local governments and their agencies to finance working
capital needs of municipalities or to provide interim construction financing and
are paid from general revenues of municipalities or are refinanced with
long-term debt. In most cases, tax-exempt commercial paper is backed by letters
of credit, lending agreements, note repurchase agreements or other credit
facility agreements offered by banks or other institutions.

TBA Purchase Commitments. A fund may enter into TBA purchase commitments to
purchase securities for a fixed price at a future date, typically not exceeding
45 days. TBA purchase commitments may be considered securities in themselves,
and involve a risk of loss if the value of the security to be purchased declines
prior to settlement date, which risk is in addition to the risk of decline in
the value of a fund's other assets. Unsettled TBA purchase commitments are
valued at the current market value of the underlying securities.

Tender Option Bonds. A tender option bond is a municipal security (generally
held pursuant to a custodial arrangement) having a relatively long maturity and
bearing interest at a fixed rate substantially higher than prevailing short-term
tax-exempt rates. The bond is typically issued in conjunction with the agreement
of a third party, such as a bank, broker-dealer or other financial institution,
pursuant to which such institution grants the security holders the option, at
periodic intervals, to tender their securities to the institution and receive
the face value thereof.

As consideration for providing the option, the financial institution receives
periodic fees equal to the difference between the bond's fixed coupon rate and
the rate, as determined by a remarketing or similar agent at or near the
commencement of such period, that would cause the securities, coupled with the
tender option, to trade at par on the date of such determination. Thus, after
payment of this fee, the security holder effectively holds a demand obligation
that bears interest at the prevailing short-term tax-exempt rate.

However, an institution will not be obligated to accept tendered bonds in the
event of certain defaults or a significant downgrade in the credit rating
assigned to the issuer of the bond. The liquidity of a tender option bond is a
function of the credit quality of both the bond issuer and the financial
institution providing liquidity. Tender option bonds are deemed to be liquid
unless, in the opinion of the Advisor, the credit quality of the bond issuer and
the financial institution is deemed, in light of a fund's credit quality
requirements, to be inadequate. A fund intends to invest only in tender option
bonds the interest on which will, in the opinion of bond counsel, counsel for
the issuer of interests therein or counsel selected by the Advisor, be exempt
from regular federal income tax. However, because there can be no assurance that
the IRS will agree with such counsel's opinion in any particular case, there is
a risk that a fund will not be considered the owner of such tender option bonds
and thus will not be entitled to treat such interest as exempt from such tax.
Additionally, the federal income tax treatment of certain other aspects of these
investments, including the proper tax treatment of tender option bonds and the
associated fees, in relation to various regulated investment company tax
provisions is unclear. A fund intends to manage its portfolio in a manner
designed to eliminate or minimize any adverse impact from the tax rules
applicable to these investments.

Third Party Puts. A fund may purchase long-term fixed rate bonds that have been
coupled with an option granted by a third party financial institution allowing a
fund at specified intervals to tender (or "put") the bonds to the institution
and receive the face value thereof (plus accrued interest). These third party
puts are available in several different forms, may be represented by custodial
receipts or trust certificates and may be combined with other features such as
interest rate swaps. A fund receives a short-term rate of interest (which is
periodically reset), and the interest rate differential between that rate and
the fixed rate on the bond is retained by the financial institution. The
financial institution granting the option does not provide credit enhancement,
and in the event that there is a default in the payment of principal or
interest, or downgrading of a bond or a loss of the bond's tax-exempt status,
the put option will terminate automatically, the risk to a fund will be that of
holding such a long-term bond and the weighted average maturity of a fund's
portfolio would be adversely affected.

These bonds coupled with puts may present the same tax issues as are associated
with Stand-By Commitments. As with any Stand-By Commitments acquired by a fund,
a fund intends to take the position that it is the owner of any municipal
obligation acquired subject to a third-party put, and that tax-exempt interest
earned with respect to such municipal obligations will be tax-exempt in its
hands. There is no assurance that the Internal Revenue Service will agree with
such position in any particular case. Additionally, the federal income tax
treatment of certain other aspects of these investments, including the treatment
of tender fees and swap payments, in relation to various regulated investment
company tax provisions is unclear. However, the advisor seeks to manage a fund's
portfolio in a manner designed to minimize any adverse impact from these
investments.

Trust Preferred Securities. A fund may invest in Trust Preferred Securities,
which are hybrid instruments issued by a special purpose trust (the "Special
Trust"), the entire equity interest of which is owned by a single issuer. The
proceeds of the issuance to the Fund of Trust Preferred Securities are typically
used to purchase a junior subordinated debenture, and distributions from the
Special Trust are funded by the payments of principal and interest on the
subordinated debenture.

If payments on the underlying junior subordinated debentures held by the Special
Trust are deferred by the debenture issuer, the debentures would be treated as
original issue discount ("OID") obligations for the remainder of their term. As
a result, holders of Trust Preferred Securities, such as a fund, would be
required to accrue daily for Federal income tax purposes their share of the
stated interest and the de minimis OID on the debentures (regardless of whether
a fund receives any cash distributions from the Special Trust), and the value of
Trust Preferred Securities would likely be negatively affected. Interest
payments on the underlying junior subordinated debentures typically may only be
deferred if dividends are suspended on both common and preferred stock of the
issuer. The underlying junior subordinated debentures generally rank slightly
higher in terms of payment priority than both common and preferred securities of
the issuer, but rank below other subordinated debentures and debt securities.
Trust Preferred Securities may be subject to mandatory prepayment under certain
circumstances. The market values of Trust Preferred Securities may be more
volatile than those of conventional debt securities. Trust Preferred Securities
may be issued in reliance on Rule 144A under the 1933 Act, and, unless and until
registered, are restricted securities; there can be no assurance as to the
liquidity of Trust Preferred Securities and the ability of holders of Trust
Preferred Securities, such as a fund, to sell their holdings.

US Government Securities. There are two broad categories of US
Government-related debt instruments: (a) direct obligations of the US Treasury,
and (b) securities issued or guaranteed by US Government agencies.

Examples of direct obligations of the US Treasury are Treasury Bills, Notes,
Bonds and other debt securities issued by the US Treasury. These instruments are
backed by the "full faith and credit" of the United States. They differ
primarily in interest rates, the length of maturities and the dates of issuance.
Treasury bills have original maturities of one year or less. Treasury notes have
original maturities of one to ten years and Treasury bonds generally have
original maturities of greater than ten years.

Some agency securities are backed by the full faith and credit of the United
States (such as Maritime Administration Title XI Ship Financing Bonds and Agency
for International Development Housing Guarantee Program Bonds) and others are
backed only by the rights of the issuer to borrow from the US Treasury (such as
Federal Home Loan Bank Bonds and Federal National Mortgage Association Bonds),
while still others, such as the securities of the Federal Farm Credit Bank, are
supported only by the credit of the issuer. With respect to securities supported
only by the credit of the issuing agency or by an additional line of credit with
the US Treasury, there is no guarantee that the US Government will provide
support to such agencies and such securities may involve risk of loss of
principal and interest.

US Government Securities may include "zero coupon" securities that have been
stripped by the US Government of their unmatured interest coupons and
collateralized obligations issued or guaranteed by a US Government agency or
instrumentality.

Interest rates on US Government obligations may be fixed or variable. Interest
rates on variable rate obligations are adjusted at regular intervals, at least
annually, according to a formula reflecting then current specified standard
rates, such as 91-day US Treasury bill rates. These adjustments generally tend
to reduce fluctuations in the market value of the securities.

The government guarantee of the US Government Securities in a fund's portfolio
does not guarantee the net asset value of the shares of a fund. There are market
risks inherent in all investments in securities and the value of an investment
in a fund will fluctuate over time. Normally, the value of investments in US
Government Securities varies inversely with changes in interest rates. For
example, as interest rates rise the value of investments in US Government
Securities will tend to decline, and as interest rates fall the value of a
fund's investments will tend to increase. In addition, the potential for
appreciation in the event of a decline in interest rates may be limited or
negated by increased principal prepayments with respect to certain
Mortgage-Backed Securities, such as GNMA Certificates. Prepayments of high
interest rate Mortgage-Backed Securities during times of declining interest
rates will tend to lower the return of a fund and may even result in losses to a
fund if some securities were acquired at a premium. Moreover, during periods of
rising interest rates, prepayments of Mortgage-Backed Securities may decline,
resulting in the extension of a fund's average portfolio maturity. As a result,
a fund's portfolio may experience greater volatility during periods of rising
interest rates than under normal market conditions.

Variable and Floating Rate Instruments. A fund may invest in variable or
floating rate instruments and variable rate demand instruments, including
variable amount master demand notes. These instruments will normally involve
industrial development or revenue bonds that provide that the rate of interest
is set as a specific percentage of a designated base rate (such as the prime
rate) at a major commercial bank. In addition, the interest rate on these
securities may be reset daily, weekly or on some other reset period and may have
a floor or ceiling on interest rate changes. When holding such an instrument, a
fund can demand payment of the obligation at all times or at stipulated dates on
short notice (not to exceed 30 days) at par plus accrued interest.

Debt instruments purchased by a fund may be structured to have variable or
floating interest rates. These instruments may include variable amount master
demand notes that permit the indebtedness to vary in addition to providing for
periodic adjustments in the interest rates. The Advisor will consider the
earning power, cash flows and other liquidity ratios of the issuers and
guarantors of such instruments and, if the instrument is subject to a demand
feature, will continuously monitor their financial ability to meet payment on
demand. Where necessary to ensure that a variable or floating rate instrument is
equivalent to the quality standards applicable to a fund's fixed income
investments, the issuer's obligation to pay the principal of the instrument will
be backed by an unconditional bank letter or line of credit, guarantee or
commitment to lend. Any bank providing such a bank letter, line of credit,
guarantee or loan commitment will meet a fund's investment quality standards
relating to investments in bank obligations. The Advisor will also continuously
monitor the creditworthiness of issuers of such instruments to determine whether
a fund should continue to hold the investments.

The absence of an active secondary market for certain variable and floating rate
notes could make it difficult to dispose of the instruments, and a fund could
suffer a loss if the issuer defaults or during periods in which a fund is not
entitled to exercise its demand rights.

Variable and floating rate instruments held by a fund will be subject to a
fund's limitation on investments in illiquid securities when a reliable trading
market for the instruments does not exist and the fund may not demand payment of
the principal amount of such instruments within seven days.

Warrants. The holder of a warrant has the right, until the warrant expires, to
purchase a given number of shares of a particular issuer at a specified price.
Such investments can provide a greater potential for profit or loss than an
equivalent investment in the underlying security. Prices of warrants do not
necessarily move, however, in tandem with the prices of the underlying
securities and are, therefore, considered speculative investments. Warrants pay
no dividends and confer no rights other than a purchase option. Thus, if a
warrant held by a fund were not exercised by the date of its expiration, a fund
would lose the entire purchase price of the warrant.

When-Issued Securities. A fund may from time to time purchase equity and debt
securities on a "when-issued," "delayed delivery" or "forward delivery" basis.
The price of such securities, which may be expressed in yield terms, is fixed at
the time the commitment to purchase is made, but delivery and payment for the
securities takes place at a later date. During the period between purchase and
settlement, no payment is made by a fund to the issuer and no interest accrues
to a fund. When a fund purchases such securities, it immediately assumes the
risks of ownership, including the risk of price fluctuation. Failure to deliver
a security purchased on this basis may result in a loss or missed opportunity to
make an alternative investment.

To the extent that assets of a fund are held in cash pending the settlement of a
purchase of securities, a fund would earn no income. While such securities may
be sold prior to the settlement date, a fund intends to purchase them with the
purpose of actually acquiring them unless a sale appears desirable for
investment reasons. At the time a fund makes the commitment to purchase a
security on this basis, it will record the transaction and reflect the value of
the security in determining its net asset value. The market value of the
securities may be more or less than the purchase price.


Yankee Bonds. DWS U.S. Bond Index Fund may invest in Yankee bonds. Yankee Bonds
are US dollar-denominated bonds sold in the US by non-US issuers. As compared
with bonds issued in the US, such bond issues normally carry an interest rate
but are less actively traded. Investing in the securities of foreign companies
involves more risks than investing in securities of US companies. Their value is
subject to economic and political developments in the countries where the
companies operate and to changes in foreign currency values. Values may also be
affected by foreign tax laws, changes in foreign economic or monetary policies,
exchange control regulations and regulations involving prohibitions on the
repatriation of foreign currencies. In many foreign countries, there is less
publicly available information about foreign issuers, and there is less
government regulation and supervision of foreign stock exchanges, brokers and
listed companies. Also in many foreign countries, companies are not subject to
uniform accounting, auditing, and financial reporting standards comparable to
those applicable to domestic issuers. Security trading practices and custody
arrangements abroad may offer less protection to the fund's investments and
there may be difficulty in enforcing legal rights outside the United States.
Settlement of transactions in some foreign markets may be delayed or may be less
frequent than in the United States which could affect the liquidity of the
fund's portfolio. Additionally, in some foreign countries, there is the
possibility of expropriation or confiscatory taxation, limitations on the
removal of securities, property, or other fund assets, political or social
instability or diplomatic developments which could affect investments in foreign
securities. In addition, the relative performance of various countries' fixed
income markets historically has reflected wide variations relating to the unique
characteristics of each country's economy. Year-to-year fluctuations in certain
markets have been significant, and negative returns have been experienced in
various markets from time to time.


Zero Coupon Securities. A fund may invest in zero coupon securities, which pay
no cash income and are sold at substantial discounts from their value at
maturity. When held to maturity, their entire income, which consists of
accretion of discount, comes from the difference between the issue price and
their value at maturity. Zero coupon securities are subject to greater market
value fluctuations from changing interest rates than debt obligations of
comparable maturities which make current distributions of interest (cash). Zero
coupon securities which are convertible into common stock offer the opportunity
for capital appreciation as increases (or decreases) in market value of such
securities closely follow the movements in the market value of the underlying
common stock. Zero coupon convertible securities generally are expected to be
less volatile than the underlying common stocks as they usually are issued with
maturities of 15 years or less and are issued with options and/or redemption
features exercisable by the holder of the obligation entitling the holder to
redeem the obligation and receive a defined cash payment.

Zero coupon securities include municipal securities, securities issued directly
by the US Treasury, and US Treasury bonds or notes and their unmatured interest
coupons and receipts for their underlying principal ("coupons") which have been
separated by their holder, typically a custodian bank or investment brokerage
firm, from the underlying principal (the "corpus") of the US Treasury security.
A number of securities firms and banks have stripped the interest coupons and
receipts and then resold them in custodial receipt programs with a number of
different names, including Treasury Income Growth Receipts ("TIGRS(TM)") and
Certificate of Accrual on Treasuries ("CATS(TM)"). The underlying US Treasury
bonds and notes themselves are held in book-entry form at the Federal Reserve
Bank or, in the case of bearer securities (i.e., unregistered securities which
are owned ostensibly by the bearer or holder thereof), in trust on behalf of the
owners thereof. Counsel to the underwriters of these certificates or other
evidences of ownership of the US Treasury securities have stated that, for
federal tax and securities purposes, in their opinion purchasers of such
certificates, such as a fund, most likely will be deemed the beneficial holder
of the underlying US Government securities. A fund intends to adhere to the
current SEC staff position that privately stripped obligations should not be
considered US Government securities for the purpose of determining if a fund is
"diversified" under the 1940 Act.

The US Treasury has facilitated transfers of ownership of zero coupon securities
by accounting separately for the beneficial ownership of particular interest
coupon and corpus payments on Treasury securities through the Federal Reserve
book-entry record-keeping system. The Federal Reserve program, as established by
the Treasury Department, is known as "STRIPS" or "Separate Trading of Registered
Interest and Principal of Securities." Under the STRIPS program, a fund will be
able to have its beneficial ownership of zero coupon securities recorded
directly in the book-entry record-keeping system in lieu of having to hold
certificates or other evidences of ownership of the underlying US Treasury
securities.

When US Treasury obligations have been stripped of their unmatured interest
coupons by the holder, the principal or corpus is sold at a deep discount
because the buyer receives only the right to receive a future fixed payment on
the security and does not receive any rights to periodic interest (cash)
payments. Once stripped or separated, the corpus and coupons may be sold
separately. Typically, the coupons are sold separately or grouped with other
coupons with like maturity dates and sold bundled in such form. Purchasers of
stripped obligations acquire, in effect, discount obligations that are
economically identical to the zero coupon securities that the Treasury sells.

Strategic Transactions and Derivatives

A fund may, but is not required to, utilize various other investment strategies
as described below for a variety of purposes, such as hedging various market
risks, managing the effective maturity or duration of the fixed-income
securities in a fund's portfolio or enhancing potential gain. These strategies
may be executed through the use of derivative contracts.

In the course of pursuing these investment strategies, a fund may purchase and
sell exchange-listed and over-the-counter put and call options on securities,
equity and fixed-income indices and other instruments, purchase and sell futures
contracts and options thereon, enter into various transactions such as swaps,
caps, floors, collars, currency forward contracts, currency futures contracts,
currency swaps or options on currencies, or currency futures and various other
currency transactions (collectively, all the above are called "Strategic
Transactions"). In addition, certain Strategic Transactions may also include
additional techniques, instruments or strategies that are permitted as
regulatory changes occur. Strategic Transactions may be used without limit
(subject to certain limits imposed by the 1940 Act) to attempt to protect
against possible changes in the market value of securities held in or to be
purchased for a fund's portfolio resulting from securities markets or currency
exchange rate fluctuations, to protect a fund's unrealized gains in the value of
its portfolio securities, to facilitate the sale of such securities for
investment purposes, to manage the effective maturity or duration of a fund's
portfolio, to establish a position in the derivatives markets as a substitute
for purchasing or selling particular securities or for any other purpose
permitted by applicable law. Some Strategic Transactions may also be used to
enhance potential gain. Any or all of these investment techniques may be used at
any time and in any combination, and there is no particular strategy that
dictates the use of one technique rather than another, as use of any Strategic
Transaction is a function of numerous variables including market conditions. The
ability of a fund to utilize these Strategic Transactions successfully will
depend on the Advisor's ability to predict pertinent market movements, which
cannot be assured. Strategic Transactions will not be used to alter fundamental
investment purposes and characteristics of a fund.

Strategic Transactions, including derivative contracts, have risks associated
with them including possible default by the other party to the transaction,
illiquidity and, to the extent the Advisor's view as to certain market movements
is incorrect, the risk that the use of such Strategic Transactions could result
in losses greater than if they had not been used. Use of put and call options
may result in losses to a fund, force the sale or purchase of portfolio
securities at inopportune times or for prices higher than (in the case of put
options) or lower than (in the case of call options) current market values,
limit the amount of appreciation a fund can realize on its investments or cause
a fund to hold a security it might otherwise sell. The use of currency
transactions can result in a fund incurring losses as a result of a number of
factors including the imposition of exchange controls, suspension of
settlements, or the inability to deliver or receive a specified currency. The
use of options and futures transactions entails certain other risks. In
particular, the variable degree of correlation between price movements of
futures contracts and price movements in the related portfolio position of a
fund creates the possibility that losses on the hedging instrument may be
greater than gains in the value of a fund's position. In addition, futures and
options markets may not be liquid in all circumstances and certain
over-the-counter options may have no markets. As a result, in certain markets, a
fund might not be able to close out a transaction without incurring substantial
losses, if at all. Although the use of futures and options transactions for
hedging should tend to minimize the risk of loss due to a decline in the value
of the hedged position, at the same time they tend to limit any potential gain
which might result from an increase in value of such position. Other Strategic
Transactions, such as forward contracts and swaps, are also subject to similar
risks. Losses resulting from the use of Strategic Transactions would reduce net
asset value, and possibly income, and such losses can be greater than if the
Strategic Transactions had not been utilized.

Combined Transactions. A fund may enter into multiple transactions, including
multiple options transactions, multiple futures transactions, multiple currency
transactions (including forward currency contracts) and multiple interest rate
transactions and any combination of futures, options, currency and interest rate
transactions ("component" transactions), instead of a single Strategic
Transaction, as part of a single or combined strategy when, in the opinion of
the advisor, it is in the best interests of a fund to do so. A combined
transaction will usually contain elements of risk that are present in each of
its component transactions. Although combined transactions are normally entered
into based on the advisor's judgment that the combined strategies will reduce
risk or otherwise more effectively achieve the desired portfolio management
goal, it is possible that the combination will instead increase such risks or
hinder achievement of the portfolio management objective.

Commodities-Linked Derivative Instruments. A fund intends to invest in
commodities-linked derivative instruments, in particular in structured notes.
The value of a commodities-linked derivative instrument typically is based on
the price movements of a physical commodity, a commodity futures contract or
commodity index, or some other readily measurable economic variable dependent
upon changes in the value of commodities or the commodities markets. A fund
invests in commodities-linked derivative investments that are hybrid instruments
excluded from regulation under the Commodity Exchange Act and the rules
thereunder, so that a fund will not be considered a "commodity pool." A fund may
invest up to 40% of its total assets in qualifying hybrid instruments.
Additionally, from time to time the fund may invest in other hybrid instruments
that do not qualify for exemption from regulation under the Commodity Exchange
Act.

A fund will invest in derivative debt instruments with principal and/or coupon
payments linked to the value of commodities, commodity futures contracts, or the
performance of commodity indices. These are "commodities-linked" or
"index-linked" notes. They are sometimes referred to as "structured notes"
because the terms of the debt instrument may be structured by the issuer of the
note and the purchaser of the note, such as a fund. These notes may be issued by
banks, brokerage firms, insurance companies and other corporations.

The values of these notes will rise and fall in response to changes in the
underlying commodity or related index or investment. These notes expose a fund
economically to movements in commodity prices, but a particular note is
primarily a debt obligation. These notes also are subject to credit and interest
rate risks that in general affect the value of debt securities. Therefore, at
the maturity of the note, a fund may receive more or less principal than it
originally invested. A fund might receive interest payments on the note that are
more or less than the stated coupon interest rate payments. To try to reduce
this risk, a fund does not expect to invest more than 40% of its total assets in
structured notes under whose terms the potential loss, either at redemption or
maturity, exceeds 50% of the face value of the notes. That amount is calculated
at the time of investment.

The structured notes a fund enters into are expected to involve leverage,
meaning that the value of the instrument will be calculated as a multiple of the
upward or downward price movement of the underlying index. The prices of
commodity-linked instruments may move in different directions than investments
in traditional equity and debt securities in periods of rising inflation. Of
course, there can be no guarantee that a fund's commodity-linked investments
would not be correlated with traditional financial assets under any particular
market conditions.

Commodity-linked structured notes may be issued by US and foreign banks,
brokerage firms, insurance companies and other corporations. These notes are
debt securities of the issuer and so, in addition to fluctuating in response to
changes in the underlying commodity index, will be subject to credit and
interest rate risks that typically affect debt securities.

The commodity-linked instruments a fund invests in may be wholly principal
protected, partially principal protected or offer no principal protection. With
a wholly principal protected instrument, a fund will receive at maturity the
greater of the par value of the note or the increase in value of the underlying
index. Partially protected instruments may suffer some loss of principal up to a
specified limit if the underlying index declines in value during the term of the
instrument. For instruments without principal protection, there is a risk that
the instrument could lose all of its value if the index declines sufficiently.
The Advisor's decision on whether and to what extent to use principal protection
depends in part on the cost of the protection. In addition, the ability of a
fund to take advantage of any protection feature depends on the creditworthiness
of the issuer of the instrument.

Although a fund itself will not be leveraged, some of the commodity-linked
instruments the fund may hold will involve leverage. The fund will not invest in
an instrument if, at the time of purchase, (1) that instrument's "leverage
ratio" exceeds 300% of the price increase (or decrease) in the underlying index
or (2) the fund's "portfolio leverage ratio" exceeds 150%. What this means is
that for an instrument with a "leverage factor" of 300%, a 1% gain (or loss) in
the underlying index would result in a 3% gain (or loss) in the value of the
instrument. "Portfolio leverage ratio" is defined as the average (mean) leverage
ratio of all instruments in a fund's portfolio, weighted by the market values of
such instruments or, in the case of futures contracts, their notional value.

Derivative strategies and the writing of uncovered (or so-called "naked")
options are speculative and may hurt a Fund's performance. A fund may attempt to
hedge its investments in order to mitigate risk, but it is not required to do
so. The benefits to be derived from the fund's derivatives and options strategy
are dependent upon the Advisor's ability to discern pricing inefficiencies and
predict trends in the commodities and other markets, which decisions could prove
to be inaccurate. This requires different skills and techniques than predicting
changes in the price of individual stocks or fixed-income securities, and there
can be no assurance that the use of this strategy will be successful.


General Characteristics of Options. Put options and call options typically have
similar structural characteristics and operational mechanics regardless of the
underlying instrument on which they are purchased or sold. Thus, the following
general discussion relates to each of the particular types of options discussed
in greater detail below. In addition, many Strategic Transactions involving
options require segregation of a fund's assets in special accounts, as described
in the section entitled "Asset Segregation."

A put option gives the purchaser of the option, upon payment of a premium, the
right to sell, and the writer the obligation to buy, the underlying security,
commodity, index, currency or other instrument at the exercise price. For
instance, a fund's purchase of a put option on a security might be designed to
protect its holdings in the underlying instrument (or, in some cases, a similar
instrument) against a substantial decline in the market value by giving a fund
the right to sell such instrument at the option exercise price. A call option,
upon payment of a premium, gives the purchaser of the option the right to buy,
and the seller the obligation to sell, the underlying instrument at the exercise
price. A fund's purchase of a call option on a security, financial future,
index, currency or other instrument might be intended to protect a fund against
an increase in the price of the underlying instrument that it intends to
purchase in the future by fixing the price at which it may purchase such
instrument. An American style put or call option may be exercised at any time
during the option period while a European style put or call option may be
exercised only upon expiration or during a fixed period prior thereto. A fund is
authorized to purchase and sell exchange listed options and over-the-counter
options ("OTC options"). Exchange listed options are issued by a regulated
intermediary such as the Options Clearing Corporation ("OCC"), which guarantees
the performance of the obligations of the parties to such options. The
discussion below uses the OCC as an example, but is also applicable to other
financial intermediaries.

With certain exceptions, OCC issued and exchange listed options generally settle
by physical delivery of the underlying security or currency, although in the
future cash settlement may become available. Index options and Eurodollar
instruments are cash settled for the net amount, if any, by which the option is
"in-the-money" (i.e., where the value of the underlying instrument exceeds, in
the case of a call option, or is less than, in the case of a put option, the
exercise price of the option) at the time the option is exercised. Frequently,
rather than taking or making delivery of the underlying instrument through the
process of exercising the option, listed options are closed by entering into
offsetting purchase or sale transactions that do not result in ownership of the
new option.

A fund's ability to close out its position as a purchaser or seller of an OCC or
exchange listed put or call option is dependent, in part, upon the liquidity of
the option market. Among the possible reasons for the absence of a liquid option
market on an exchange are: (i) insufficient trading interest in certain options;
(ii) restrictions on transactions imposed by an exchange; (iii) trading halts,
suspensions or other restrictions imposed with respect to particular classes or
series of options or underlying securities including reaching daily price
limits; (iv) interruption of the normal operations of the OCC or an exchange;
(v) inadequacy of the facilities of an exchange or OCC to handle current trading
volume; or (vi) a decision by one or more exchanges to discontinue the trading
of options (or a particular class or series of options), in which event the
relevant market for that option on that exchange would cease to exist, although
outstanding options on that exchange would generally continue to be exercisable
in accordance with their terms.

The hours of trading for listed options may not coincide with the hours during
which the underlying financial instruments are traded. To the extent that the
option markets close before the markets for the underlying financial
instruments, significant price and rate movements can take place in the
underlying markets that may not be reflected in the option markets.

OTC options are purchased from or sold to securities dealers, financial
institutions or other parties ("Counterparties") through direct bilateral
agreement with the Counterparty. In contrast to exchange listed options, which
generally have standardized terms and performance mechanics, all the terms of an
OTC option, including such terms as method of settlement, term, exercise price,
premium, guarantees and security, are set by negotiation of the parties. A fund
expects generally to enter into OTC options that have cash settlement
provisions, although it is not required to do so.

Unless the parties provide for it, there is no central clearing or guaranty
function in an OTC option. As a result, if the Counterparty fails to make or
take delivery of the security, currency or other instrument underlying an OTC
option it has entered into with a fund or fails to make a cash settlement
payment due in accordance with the terms of that option, a fund will lose any
premium it paid for the option as well as any anticipated benefit of the
transaction. Accordingly, the Advisor must assess the creditworthiness of each
such Counterparty or any guarantor or credit enhancement of the Counterparty's
credit to determine the likelihood that the terms of the OTC option will be
satisfied. A fund will engage in OTC option transactions only with US government
securities dealers recognized by the Federal Reserve Bank of New York as
"primary dealers" or broker/dealers, domestic or foreign banks or other
financial institutions which have received (or the guarantors of the obligation
of which have received) a short-term credit rating of A-1 from S&P or P-1 from
Moody's or an equivalent rating from any other nationally recognized statistical
rating organization ("NRSRO") or, in the case of OTC currency transactions, are
determined to be of equivalent credit quality by the Advisor. The staff of the
SEC currently takes the position that OTC options purchased by a fund, and
portfolio securities "covering" the amount of a fund's obligation pursuant to an
OTC option sold by it (the cost of any sell-back plus the in-the-money amount,
if any) are illiquid, and are subject to a fund's limitation on investing no
more than 15% of its net assets in illiquid securities.

If a fund sells a call option, the premium that it receives may serve as a
partial hedge, to the extent of the option premium, against a decrease in the
value of the underlying securities or instruments in its portfolio or will
increase a fund's income. The sale of put options can also provide income.

A fund may purchase and sell call options on securities including, but not
limited to, US Treasury and agency securities, mortgage-backed securities,
foreign sovereign debt, corporate debt securities, equity securities (including
convertible securities), Eurodollar instruments that are traded on US and
foreign securities exchanges and in the over-the-counter markets, and on
securities indices, currencies and futures contracts, and for DWS Massachusetts
Tax-Free Fund, municipal obligations. All calls sold by a fund must be "covered"
(i.e., a fund must own the securities or futures contract subject to the call)
or must meet the asset segregation requirements described below as long as the
call is outstanding. Even though a fund will receive the option premium to help
protect it against loss, a call sold by a fund exposes a fund during the term of
the option to possible loss of opportunity to realize appreciation in the market
price of the underlying security or instrument and may require a fund to hold a
security or instrument which it might otherwise have sold.

A fund may purchase and sell put options on securities including, but not
limited to, US Treasury and agency securities, mortgage-backed securities,
foreign sovereign debt, corporate debt securities, equity securities (including
convertible securities), Eurodollar instruments (whether or not it holds the
above securities in its portfolio), and on securities indices, currencies and
futures contracts other than futures on individual corporate debt and individual
equity securities and for DWS Massachusetts Tax-Free Fund, municipal
obligations. Except for DWS Technology Fund, a fund will not sell put options
if, as a result, more than 50% of a fund's total assets would be required to be
segregated to cover its potential obligations under such put options other than
those with respect to futures and options thereon. In selling put options, there
is a risk that a fund may be required to buy the underlying security at a
disadvantageous price above the market price.




General Characteristics of Futures. A fund may enter into futures contracts or
purchase or sell put and call options on such futures as hedges against
anticipated interest rate, currency or equity market changes, and for duration
management, risk management and return enhancement purposes. Futures are
generally bought and sold on the commodities exchanges where they are listed
with payment of initial and variation margin as described below. The sale of a
futures contract creates a firm obligation by the seller, to deliver to the
buyer the specific type of financial instrument called for in the contract at a
specific future time for a specified price (or, with respect to certain
instruments, such as index futures and Eurodollar instruments, the net cash
amount) and a firm obligation by the buyer to deliver the specified price.
Options on futures contracts are similar to options on securities except that an
option on a futures contract gives the purchaser the right in return for the
premium paid to assume a position in a futures contract and obligates the seller
to deliver such position.

A fund's use of futures and options thereon will in all cases be consistent with
applicable regulatory requirements and in particular the rules and regulations
of the Commodity Futures Trading Commission and will be entered into for bona
fide hedging, risk management (including duration management) or other portfolio
and return enhancement management purposes. Typically, maintaining a futures
contract or selling an option thereon requires a fund to deposit with a
financial intermediary as security for its obligations an amount of cash or
other specified assets (initial margin) which initially is typically 1% to 10%
of the face amount of the contract (but may be higher in some circumstances).
Additional cash or assets (variation margin) may be required to be deposited
thereafter on a daily basis as the mark to market value of the contract
fluctuates. The purchase of an option on financial futures involves payment of a
premium for the option without any further obligation on the part of a fund. If
a fund exercises an option on a futures contract it will be obligated to post
initial margin (and potential subsequent variation margin) for the resulting
futures position just as it would for any position. Futures contracts and
options thereon are generally settled by entering into an offsetting transaction
but there can be no assurance that the position can be offset prior to
settlement at an advantageous price, nor that delivery will occur.

A fund will not enter into a futures contract or related option (except for
closing transactions) if, immediately thereafter, the sum of the amount of its
initial margin and premiums on open futures contracts and options thereon would
exceed 5% of a fund's total assets (taken at current value); however, in the
case of an option that is in-the-money at the time of the purchase, the
in-the-money amount may be excluded in calculating the 5% limitation. The
segregation requirements with respect to futures contracts and options thereon
are described below.

Hedging Strategies. A fund may use certain strategies designed to adjust the
overall risk of its investment portfolio. These "hedging" strategies involve
derivative contracts, including (but not limited to) US Treasury and Eurodollar
futures contracts and exchange-traded put and call options on such futures
contracts. New financial products and risk management techniques continue to be
developed and may be used if consistent with a fund's investment objective and
policies. Among other purposes, these hedging strategies may be used to
effectively maintain desired portfolio duration or to protect against market
risk should a fund change its investments among different types of fixed income
securities.

A fund might not use any hedging strategies, and there can be no assurance that
any strategy used will succeed. If the Advisor is incorrect in its judgment on
market values, interest rates or other economic factors in using a hedging
strategy, a fund may have lower net income and a net loss on the investment.
Each of these strategies involves certain risks, which include:

o        the fact that the skills needed to use hedging instruments are
         different from those needed to select securities for a fund;

o        the possibility of imperfect correlation, or even no correlation,
         between the price movements of hedging instruments and price movements
         of the securities or currencies being hedged;

o        possible constraints placed on a fund's ability to purchase or sell
         portfolio investments at advantageous times due to the need for a fund
         to maintain "cover" or to segregate securities; and

o        the possibility that a fund will be unable to close out or liquidate
         its hedged position.

A hedge is designed to offset a loss in a portfolio position with a gain in the
hedged position; at the same time, however, a properly correlated hedge will
result in a gain in the portfolio position being offset by a loss in the hedged
position. As a result, the use of options, futures and currency exchange
transactions for hedging purposes could limit any potential gain from an
increase in the value of the position hedged. With respect to futures contracts,
since the value of portfolio securities will far exceed the value of the futures
contracts sold by a fund, an increase in the value of the futures contracts
could only mitigate, but not totally offset, the decline in the value of a
fund's assets.

To the extent that a fund engages in the strategies described above, a fund may
experience losses greater than if these strategies had not been utilized. In
addition to the risks described above, these instruments may be illiquid and/or
subject to trading limits, and a fund may be unable to close out a position
without incurring substantial losses, if at all. A fund is also subject to the
risk of default by a counterparty to an off-exchange transaction.

Options on Securities Indices and Other Financial Indices. A fund also may
purchase and sell call and put options on securities indices and other financial
indices and in so doing can achieve many of the same objectives it would achieve
through the sale or purchase of options on individual securities or other
instruments. Options on securities indices and other financial indices are
similar to options on a security or other instrument except that, rather than
settling by physical delivery of the underlying instrument, they settle by cash
settlement, i.e., an option on an index gives the holder the right to receive,
upon exercise of the option, an amount of cash if the closing level of the index
upon which the option is based exceeds, in the case of a call, or is less than,
in the case of a put, the exercise price of the option (except if, in the case
of an OTC option, physical delivery is specified). This amount of cash is equal
to the excess of the closing price of the index over the exercise price of the
option, which also may be multiplied by a formula value. The seller of the
option is obligated, in return for the premium received, to make delivery of
this amount. The gain or loss on an option on an index depends on price
movements in the instruments making up the market, market segment, industry or
other composite on which the underlying index is based, rather than price
movements in individual securities, as is the case with respect to options on
securities.

Currency Transactions. A fund may engage in currency transactions with
Counterparties primarily in order to hedge, or manage the risk of the value of
portfolio holdings denominated in particular currencies against fluctuations in
relative value. Currency transactions include forward currency contracts,
exchange listed currency futures, exchange listed and OTC options on currencies,
and currency swaps. A forward currency contract involves a privately negotiated
obligation to purchase or sell (with delivery generally required) a specific
currency at a future date, which may be any fixed number of days from the date
of the contract agreed upon by the parties, at a price set at the time of the
contract. A currency swap is an agreement to exchange cash flows based on the
notional difference among two or more currencies and operates similarly to an
interest rate swap, which is described below. A fund may enter into currency
transactions with Counterparties which have received (or the guarantors of the
obligations which have received) a credit rating of A-1 or P-1 by S&P or
Moody's, respectively, or that have an equivalent rating from a NRSRO or (except
for OTC currency options) are determined to be of equivalent credit quality by
the underlying fund's advisor.

A fund's dealings in forward currency contracts and other currency transactions
such as futures, options, options on futures and swaps generally will be limited
to hedging involving either specific transactions or portfolio positions except
as described below. Transaction hedging is entering into a currency transaction
with respect to specific assets or liabilities of a fund, which will generally
arise in connection with the purchase or sale of its portfolio securities or the
receipt of income therefrom. Position hedging is entering into a currency
transaction with respect to portfolio security positions denominated or
generally quoted in that currency.

A fund generally will not enter into a transaction to hedge currency exposure to
an extent greater, after netting all transactions intended wholly or partially
to offset other transactions, than the aggregate market value (at the time of
entering into the transaction) of the securities held in its portfolio that are
denominated or generally quoted in or currently convertible into such currency,
other than with respect to proxy hedging or cross hedging as described below, as
applicable.

A fund may also cross-hedge currencies by entering into transactions to purchase
or sell one or more currencies that are expected to decline in value relative to
other currencies to which a fund has or in which a fund expects to have
portfolio exposure.

To reduce the effect of currency fluctuations on the value of existing or
anticipated holdings of portfolio securities, a fund may also engage in proxy
hedging. Proxy hedging is often used when the currency to which the fund's
portfolio is exposed is difficult to hedge or to hedge against the dollar. Proxy
hedging entails entering into a commitment or option to sell a currency whose
changes in value are generally considered to be correlated to a currency or
currencies in which some or all of a fund's portfolio securities are or are
expected to be denominated, in exchange for US dollars. Currency hedging
involves some of the same risks and considerations as other transactions with
similar instruments. Currency transactions can result in losses to a fund if the
currency being hedged fluctuates in value to a degree or in a direction that is
not anticipated. Further, there is the risk that the perceived correlation
between various currencies may not be present or may not be present during the
particular time that a fund is engaging in proxy hedging. If a fund enters into
a currency hedging transaction, a fund will comply with the asset segregation
requirements described below.

Risks of Currency Transactions. Currency transactions are subject to risks
different from those of other portfolio transactions. Because currency control
is of great importance to the issuing governments and influences economic
planning and policy, purchases and sales of currency and related instruments can
be negatively affected by government exchange controls, blockages, and
manipulations or exchange restrictions imposed by governments. These can result
in losses to a fund if it is unable to deliver or receive currency or funds in
settlement of obligations and could also cause hedges it has entered into to be
rendered useless, resulting in full currency exposure as well as incurring
transaction costs. Buyers and sellers of currency futures are subject to the
same risks that apply to the use of futures generally. Further, settlement of a
currency futures contract for the purchase of most currencies must occur at a
bank based in the issuing nation. Trading options on currency futures is
relatively new, and the ability to establish and close out positions on such
options is subject to the maintenance of a liquid market which may not always be
available. Currency exchange rates may fluctuate based on factors extrinsic to
that country's economy.


Eurodollar Instruments. The Fund may make investments in Eurodollar instruments
for hedging purposes or to enhance potential gain. Eurodollar instruments are US
dollar-denominated futures contracts or options thereon which are linked to the
London Interbank Offered Rate ("LIBOR"), although foreign currency-denominated
instruments are available from time to time. Eurodollar futures contracts enable
purchasers to obtain a fixed rate for the lending of funds and sellers to obtain
a fixed rate for borrowings. The Fund might use Eurodollar futures contracts and
options thereon to hedge against changes in LIBOR, to which many interest rate
swaps and fixed income instruments are linked.




Risks of Strategic Transactions Outside the US. When conducted outside the US,
Strategic Transactions may not be regulated as rigorously as in the US, may not
involve a clearing mechanism and related guarantees, and are subject to the risk
of governmental actions affecting trading in, or the prices of, foreign
securities, currencies and other instruments. The value of such positions also
could be adversely affected by: (i) other complex foreign political, legal and
economic factors, (ii) lesser availability than in the US of data on which to
make trading decisions, (iii) delays in a fund's ability to act upon economic
events occurring in foreign markets during non-business hours in the US, (iv)
the imposition of different exercise and settlement terms and procedures and
margin requirements than in the US, and (v) lower trading volume and liquidity.

Swaps, Caps, Floors and Collars. Among the Strategic Transactions into which a
fund may enter are interest rate, currency, index and other swaps and the
purchase or sale of related caps, floors and collars. A fund expects to enter
into these transactions primarily to preserve a return or spread on a particular
investment or portion of its portfolio, to protect against currency
fluctuations, as a duration management technique, to protect against any
increase in the price of securities a fund anticipates purchasing at a later
date or to enhance returns. A fund will not sell interest rate caps or floors
where it does not own securities or other instruments providing the income
stream a fund may be obligated to pay. Interest rate swaps involve the exchange
by a fund with another party of their respective commitments to pay or receive
interest, e.g., an exchange of floating rate payments for fixed rate payments
with respect to a notional amount of principal. A currency swap is an agreement
to exchange cash flows on a notional amount of two or more currencies based on
the relative value differential among them and an index swap is an agreement to
swap cash flows on a notional amount based on changes in the values of the
reference indices. The purchase of a cap entitles the purchaser to receive
payments on a notional principal amount from the party selling such cap to the
extent that a specified index exceeds a predetermined interest rate or amount.
The purchase of a floor entitles the purchaser to receive payments on a notional
principal amount from the party selling such floor to the extent that a
specified index falls below a predetermined interest rate or amount. A collar is
a combination of a cap and a floor that preserves a certain return within a
predetermined range of interest rates or values.

Swaps will be entered in on a net basis, i.e., the two payment streams are
netted out in a cash settlement on the payment date or dates specified in the
instrument, with each fund receiving or paying, as the case may be, only the net
amount of the two payments. Each fund will not enter into any swap, cap, floor
or collar transaction unless, at the time of entering into such transaction, the
unsecured long-term debt of the Counterparty, combined with any credit
enhancements, is rated at least A by S&P or Moody's or has an equivalent rating
from another NRSRO or is determined to be of equivalent credit quality by the
Advisor. If there is a default by the Counterparty, each fund may have
contractual remedies pursuant to the agreements related to the transaction. The
swap market has grown substantially in recent years with a large number of banks
and investment banking firms acting both as principals and as agents utilizing
standardized swap documentation. As a result, the swap market has become
relatively liquid. Caps, floors and collars are more recent innovations for
which standardized documentation has not yet been fully developed and,
accordingly, they are less liquid than swaps.

A credit default swap is a contract between a buyer and a seller of protection
against a pre-defined credit event. The buyer of protection pays the seller a
fixed regular fee provided that no event of default on an underlying reference
obligation has occurred. If an event of default occurs, the seller must pay the
buyer the full notional value, or "par value," of the reference obligation in
exchange for the reference obligation. Credit default swaps are used as a means
of "buying" credit protection, i.e., attempting to mitigate the risk of default
or credit quality deterioration in some portion of a fund's holdings, or
"selling" credit protection, i.e., attempting to gain exposure to an underlying
issuer's credit quality characteristics without directly investing in that
issuer. Where a fund is a seller of credit protection, it effectively adds
leverage to its portfolio because, in addition to its total net assets, a fund
would be subject to investment exposure on the notional amount of the swap. A
fund will only sell credit protection with respect to securities in which it
would be authorized to invest directly. A fund currently considers credit
default swaps to be illiquid and treats the market value of the contract as
illiquid for purposes of determining compliance with a fund's restrictions on
investing in illiquid securities.

If the fund is a buyer of a credit default swap and no event of default occurs,
the fund will lose its investment and recover nothing. However, if the fund is a
buyer and an event of default occurs, the fund will receive the full notional
value of the reference obligation that may have little or no value. As a seller,
the fund receives a fixed rate of income through the term of the contract
(typically between six months and three years), provided that there is no
default event. If an event of default occurs, the seller must pay the buyer the
full notional value of the reference obligation. Credit default swaps involve
greater risks than if the fund had invested in the reference obligation
directly.

The fund may use credit default swaps to gain exposure to particular issuers or
particular markets through investments in portfolios of credit default swaps,
such as Dow Jones CDX.NA.HY certificates. By investing in certificates
representing interests in a basket of credit default swaps, the fund is taking
credit risk with respect to an entity or group of entities and providing credit
protection to the swap counterparties. For example, the CDX EM is a tradable
basket of 19 credit default swaps on country credits which seeks to replicate
the returns on the indices of a broad group of emerging markets countries. The
credits are a subset of the countries represented by the JPMorgan Emerging
Markets Bond Index Global Diversified. By purchasing interests in CDX EM, the
fund is gaining emerging markets exposure through a single investment. Unlike
other types of credit default swaps which are generally considered illiquid,
credit default swap certificates generally can be sold within seven days and are
not subject to the fund's restrictions on investing in illiquid securities.


Spreadlocks. DWS U.S. Bond Index Fund may enter into spreadlocks. A spreadlock
is a form of swap contract that involves an exchange of a one-time cash payment
based on a specific financial index between the fund and another party. A
spreadlock allows an interest rate swap user to lock in the forward differential
between the interest rate swap rate and the yield of the government bond
underlying the swap. Essentially, a spreadlock allows the investor to buy or
sell the spread forward by entering into a forward contract on the swap spread
(i.e., the spread between the government yield and the swap rate (or yield)) for
a given maturity. The price of a spreadlock is determined by the yield spread
between a forward starting fixed/floating swap and a forward transaction in a
government bond. The value of the swap is adjusted daily and the change in value
is recorded as unrealized appreciation or depreciation until the agreement
matures, at which time the cash payment, based on the value of the swap on the
maturity date, is exchanged between the two parties.




Global Asset Allocation Strategy ("GAA Strategy"). In connection with the GAA
Strategy and in addition to the securities described above, a fund may invest in
indexed securities, futures contracts on securities indices, securities
representing securities of foreign issuers (e.g., ADRs, GDRs and EDRs), options
on stocks, options on futures contracts, foreign currency exchange transactions
and options on foreign currencies. These are discussed below, to the extent not
already described above.

Indexed Securities. The indexed securities in which a fund may invest include
debt securities whose value at maturity is determined by reference to the
relative prices of various currencies or to the price of a stock index. The
value of such securities depends on the price of foreign currencies, securities
indices or other financial values or statistics. These securities may be
positively or negatively indexed; that is, their value may increase or decrease
if the underlying instrument appreciates.

Securities Representing Securities of Foreign Issuers. A fund's investments in
the securities of foreign issuers may be made directly or in the form of ADRs,
GDRs, also referred to as International Depositary Receipts or "IDRs", EDRs or
other similar securities representing securities of foreign issuers. These
securities may not necessarily be denominated in the same currency as the
securities they represent, and while designed for use as alternatives to the
purchase of the underlying securities in their national markets and currencies,
are subject to the same risks as the foreign securities to which they relate.

ADRs are receipts, typically issued by a US bank or trust company, which
evidence ownership of underlying securities issued by a foreign corporation.
EDRs, which are sometimes referred to as Continental Depository Receipts
("CDRs"), are receipts issued in Europe, and GDRs or IDRs are issued outside the
United States. EDRs (CDRs) and GDRs (IDRs) are typically issued by non-US banks
and trust companies and evidence ownership of either foreign or domestic
securities. Generally, ADRs in registered form are designed for use in US
securities markets, and EDRs (CDRs) and GDRs (IDRs) in bearer form are designed
for use in European and non-US securities markets, respectively. For purposes of
a fund's investment policies, depository receipts generally are deemed to have
the same classification as the underlying securities they represent. Thus, a
depository receipt representing ownership of common stock will be treated as
common stock.

ADRs are publicly traded on exchanges or over-the-counter in the United States
and are issued through "sponsored" or "unsponsored" arrangements. In a sponsored
ADR arrangement, the foreign issuer assumes the obligation to pay some or all of
the depository's transaction fees, whereas under an unsponsored arrangement, the
foreign issuer assumes no obligations and the depository's transaction fees are
paid directly by the ADR holders. In addition, less information is available in
the United States about an unsponsored ADR than about a sponsored ADR.

Investments in foreign securities incur higher costs than investments in US
securities, including higher costs in making securities transactions as well as
foreign government taxes which may reduce the investment return of A fund. In
addition, foreign investments may include risks associated with currency
exchange rates, less complete information about additional companies, less
market liquidity and political instability.


Portfolio Holdings

In addition to the public disclosure of Fund portfolio holdings through required
Securities and Exchange Commission ("SEC") quarterly filings, a Fund may make
its portfolio holdings information publicly available on the DWS Funds' Web site
as described in each Fund's prospectus. Each Fund does not disseminate
non-public information about portfolio holdings except in accordance with
policies and procedures adopted by each Fund.

Each Fund's procedures permit non-public portfolio holdings information to be
shared with Deutsche Asset Management and its affiliates (collectively "DeAM"),
subadvisors, if any, custodians, independent registered public accounting firms,
attorneys, officers and trustees/directors and each of their respective
affiliates and advisers who require access to this information to fulfill their
duties to each Fund and are subject to the duties of confidentiality, including
the duty not to trade on non-public information, imposed by law or contract, or
by each Fund's procedures. This non-public information may also be disclosed,
subject to the requirements described below, to certain third parties, such as
securities lending agents, financial printers, proxy voting firms, mutual fund
analysts and rating and tracking agencies, or to shareholders in connection with
in-kind redemptions (collectively, "Authorized Third Parties").

Prior to any disclosure of each Fund's non-public portfolio holdings information
to Authorized Third Parties, a person authorized by each Fund's Trustees must
make a good faith determination in light of the facts then known that a Fund has
a legitimate business purpose for providing the information, that the disclosure
is in the best interest of each Fund, and that the recipient assents or
otherwise has a duty to keep the information confidential and to not trade based
on the information received while the information remains non-public. No
compensation is received by each Fund or DeAM for disclosing non-public holdings
information. Periodic reports regarding these procedures will be provided to
each Fund's Trustees.

Portfolio holdings information distributed by the trading desks of DeAM or a
subadvisor for the purpose of facilitating efficient trading of such securities
and receipt of relevant research is not subject to the foregoing requirements.
Non-public portfolio holding information does not include portfolio
characteristics (other than holdings or subsets of holdings) about each Fund and
information derived therefrom, including, but not limited to, how each Fund's
investments are divided among various sectors, industries, countries, value and
growth stocks, bonds, currencies and cash, types of bonds, bond maturities,
duration, bond coupons and bond credit quality ratings so long as the identify
of each Fund's holdings could not be derived from such information.




Registered investment companies that are subadvised by DeAM may be subject to
different portfolio holdings disclosure policies, and neither DeAM nor a Fund's
Trustees exercise control over such policies. In addition, separate account
clients of DeAM have access to their portfolio holdings and are not subject to a
fund's portfolio holdings disclosure policy. The portfolio holdings of some of
the funds subadvised by DeAM and some of the separate accounts managed by DeAM
may substantially overlap with the portfolio holdings of a Fund.

DeAM also manages certain unregistered commingled trusts and creates model
portfolios, the portfolio holdings of which may substantially overlap with the
portfolio holdings of a Fund. To the extent that investors in these commingled
trusts or recipients of model portfolio holdings information may receive
portfolio holdings information of their trust or of a model portfolio on a
different basis from that on which fund portfolio holdings information is made
public, DeAM has implemented procedures reasonably designed to encourage such
investors and recipients to keep such information confidential, and to prevent
those investors from trading on the basis of non-public holdings information.

There is no assurance that a Fund's policies and procedures with respect to the
disclosure of portfolio holdings information will protect a Fund from the
potential misuse of portfolio holdings information by those in possession of
that information.

                             MANAGEMENT OF THE FUNDS

Investment Advisor

Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is
part of Deutsche Asset Management ("DeAM"), is the investment advisor for each
Fund, with headquarters at 345 Park Avenue, New York, New York 10154. Under the
supervision of the Board of Trustees of the Trust, DIMA makes each Fund's
investment decisions, buys and sells securities for the Funds and conducts
research that leads to these purchase and sale decisions. The Advisor manages
each Fund's daily investment and business affairs subject to the policies
established by the Trust's Board of Trustees. The Funds' Advisor is also
responsible for selecting brokers and dealers and for negotiating brokerage
commissions and dealer charges. The Advisor's duties are described in more
detail below. DIMA and its predecessors have more than 80 years of experience
managing mutual funds. DIMA provides a full range of investment advisory
services to institutional and retail clients.


DeAM is the marketing name in the US for the asset management activities of
Deutsche Bank AG, DIMA, Deutsche Bank Trust Company Americas and DWS Trust
Company. DeAM is a global asset management organization that offers a wide range
of investing expertise and resources, including hundreds of portfolio managers
and analysts and an office network that reaches the world's major investment
centers. This well-resourced global investment platform brings together a wide
variety of experience and investment insight, across industries, regions, asset
classes and investing styles. DIMA is an indirect, wholly owned subsidiary of
Deutsche Bank AG. Deutsche Bank AG is a major global banking institution that is
engaged in a wide range of financial services, including investment management,
mutual fund, retail, private and commercial banking, investment banking and
insurance. DWS Investments is part of Deutsche Bank's Asset Management division
and, within the US, represents the retail asset management activities of
Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment
Management Americas Inc. and DWS Trust Company.


The Advisor provides investment counsel for many individuals and institutions,
including insurance companies, industrial corporations, and financial and
banking organizations, as well as providing investment advice to open- and
closed-end SEC registered funds.

In certain cases, the investments for a Fund are managed by the same individuals
who manage one or more other mutual funds advised by the Advisor that have
similar names, objectives and investment styles. You should be aware that a Fund
is likely to differ from these other mutual funds in size, cash flow pattern and
tax matters. Accordingly, the holdings and performance of a Fund can be expected
to vary from those of these other mutual funds.

Certain investments may be appropriate for a Fund and also for other clients
advised by the Advisor. Investment decisions for a Fund and other clients are
made with a view to achieving their respective investment objectives and after
consideration of such factors as their current holdings, availability of cash
for investment and the size of their investments generally. Frequently, a
particular security may be bought or sold for only one client or in different
amounts and at different times for more than one but less than all clients.
Likewise, a particular security may be bought for one or more clients when one
or more other clients are selling the security. In addition, purchases or sales
of the same security may be made for two or more clients on the same day. In
such event, such transactions will be allocated among the clients in a manner
believed by the Advisor to be equitable to each. In some cases, this procedure
could have an adverse effect on the price or amount of the securities purchased
or sold by a Fund. Purchase and sale orders for a Fund may be combined with
those of other clients of the Advisor in the interest of achieving the most
favorable net results to a Fund.




Investment Management Agreement


Pursuant to the investment management agreement (the "Agreement"), the Advisor
provides continuing investment management of the assets of the Funds. In
addition to the investment management of the assets of the Funds, the Advisor
determines the investments to be made for each Fund, including what portion of
its assets remain uninvested in cash or cash equivalents, and with whom the
orders for investments are placed, consistent with each Fund's policies as
stated in its Prospectuses and SAIs, or as adopted by each Fund's Board. The
Advisor will also monitor, to the extent not monitored by the Funds'
administrator or other agent, each Fund's compliance with its investment and tax
guidelines and other compliance policies. The Advisor provides investment
counsel for many individuals and institutions, including insurance companies,
industrial corporations, and financial and banking organizations, as well as
providing investment advice to open- and closed-end SEC registered funds.

The Advisor provides assistance to the Funds' Board in valuing the securities
and other instruments held by each Fund, to the extent reasonably required by
valuation policies and procedures that may be adopted by a Fund.

Pursuant to the Agreement, (unless otherwise provided in the agreement or as
determined by the Funds' Board and to the extent permitted by applicable law),
the Advisor pays the compensation and expenses of all the Board members,
officers, and executive employees of the Funds, including each Fund's share of
payroll taxes, who are affiliated persons of the Advisor.

The Agreement provides that each Fund is generally responsible for expenses that
include: fees payable to the Advisor; outside legal, accounting or auditing
expenses, including with respect to expenses related to negotiation, acquisition
or distribution of portfolio investments; maintenance of books and records that
are maintained by the Funds, the Funds' custodian, or other agents of the Funds;
taxes and governmental fees; fees and expenses of the Funds' accounting agent,
custodian, sub-custodians, depositories, transfer agents, dividend reimbursing
agents and registrars; payment for portfolio pricing or valuation services to
pricing agents, accountants, bankers and other specialists, if any; brokerage
commissions or other costs of acquiring or disposing of any portfolio securities
or other instruments of the Funds; and litigation expenses and other
extraordinary expenses not incurred in the ordinary course of the Funds'
business.

The Agreement allows the Advisor to delegate any of its duties under the
Agreement to a subadvisor, subject to a majority vote of the Board of the Funds,
including a majority of the Board who are not interested persons of the Funds,
and, if required by applicable law, subject to a majority vote of each Fund's
shareholders.

The Agreement provides that the Advisor shall not be liable for any error of
judgment or mistake of law or for any loss suffered by the Funds in connection
with matters to which the agreement relates, except a loss resulting from
willful malfeasance, bad faith or gross negligence on the part of the Advisor in
the performance of its duties or from reckless disregard by the Advisor of its
obligations and duties under the agreement. The Agreement may be terminated at
any time, without payment of penalty, by either party or by vote of a majority
of the outstanding voting securities of a Fund on 60 days' written notice.


The Agreement for each Fund remains in effect from year to year only if its
continuance is approved annually by the vote of a majority of those Trustees who
are not parties to such Agreements or interested persons of the Advisor or the
Fund, cast in person at a meeting called for the purpose of voting on such
approval, and either by a vote of the Board or of a majority of the outstanding
voting securities of the respective Fund.

The Funds do not directly bear any management fees, although the Funds directly
bear other Fund fees and expenses. In addition, shareholders of the Funds
indirectly bear their pro rata share of the cost of operating the Underlying DWS
Funds in which the Funds invest in their capacity as a shareholder of the
Underlying DWS Funds and any ETFs in which the Funds invest.





Through September 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass Retirement Fund to the extent necessary to maintain the fund's total
operating expenses at 0.27% for Class S shares, excluding certain expenses such
as extraordinary expenses, taxes, brokerage, interest and indirect fees and
expenses of acquired funds (underlying funds). Although there can be no
assurance that the current waiver/expense reimbursement arrangement will be
maintained beyond September 30, 2009, the Advisor has committed to review the
continuance of waiver/expense reimbursement arrangement by September 30, 2009.





Through September 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass 2015 Fund to the extent necessary to maintain the fund's total
operating expenses at 0.23% for Class S shares, excluding certain expenses such
as extraordinary expenses, taxes, brokerage, interest and indirect fees and
expenses of acquired funds (underlying funds). Although there can be no
assurance that the current waiver/expense reimbursement arrangement will be
maintained beyond September 30, 2009, the Advisor has committed to review the
continuance of waiver/expense reimbursement arrangement by September 30, 2009.





Through September 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass 2020 Fund to the extent necessary to maintain the fund's total
operating expenses at 0.24% for Class S shares, excluding certain expenses such
as extraordinary expenses, taxes, brokerage, interest and indirect fees and
expenses of acquired funds (underlying funds). Although there can be no
assurance that the current waiver/expense reimbursement arrangement will be
maintained beyond September 30, 2009, the Advisor has committed to review the
continuance of waiver/expense reimbursement arrangement by September 30, 2009.





Through November 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass 2030 Fund to the extent necessary to maintain the fund's total
operating expenses at 0.20% for Class S shares, excluding certain expenses such
as extraordinary expenses, taxes, brokerage, interest and indirect fees and
expenses of acquired funds (underlying funds).

Through November 30, 2009, the Advisor has contractually agreed to waive all or
a portion of its fees and reimburse or pay operating expenses of the DWS
LifeCompass 2040 Fund to the extent necessary to maintain the fund's total
operating expenses at 0.24% for Class S shares, excluding certain expenses such
as extraordinary expenses, taxes, brokerage, interest, and indirect fees and
expenses of acquired funds (underlying funds).

In addition, the Board and shareholders have approved a subadvisor approval
policy for the Funds (the "Subadvisor Approval Policy"). The Subadvisor Approval
Policy permits the Advisor, subject to the approval of the Board, including a
majority of its independent board members, to appoint and replace subadvisors
and to amend sub-advisory contracts without obtaining shareholder approval.
Under the Subadvisor Approval Policy, the Board, including its independent board
members, will continue to evaluate and approve all new sub-advisory contracts
between the Advisor and any subadvisor, as well as all changes to any existing
subadvisory contract. The Funds cannot implement the Subadvisor Approval Policy
without the SEC either adopting revisions to current rules (as it proposed to do
in October 2003) or granting the Funds exemptive relief from existing rules. The
Funds and the Advisor would be subject to certain conditions imposed by the SEC
(and certain conditions that may be imposed in the future within either
exemptive relief or a rule) to ensure that the interests of the Funds and its
shareholders are adequately protected whenever the Advisor acts under the
Subadvisor Approval Policy, including any shareholder notice requirements.


The Advisor may enter into arrangements with affiliates and third party service
providers to perform various administrative, back-office and other services
relating to client accounts. Such service providers may be located in the US or
in non-US jurisdictions.


Pursuant to DeAM procedures approved by the Boards on behalf of the DWS funds,
proof of claim forms are routinely filed on behalf of the DWS funds by a third
party service provider, with certain limited exceptions. The Boards of the DWS
funds receive periodic reports regarding the implementation of these procedures.


Compensation of Portfolio Managers


Portfolio managers are eligible for total compensation comprised of base salary
and discretionary incentive compensation.

Base Salary - Base salary generally represents a smaller percentage of portfolio
managers' total compensation than discretionary incentive compensation. Base
salary is linked to job function, responsibilities and financial services
industry peer comparison through the use of extensive market data surveys.

Discretionary Incentive Compensation - Generally, discretionary incentive
compensation comprises a greater proportion of total compensation as a portfolio
manager's seniority and compensation levels increase. Discretionary incentive
compensation is determined based on an analysis of a number of factors,
including among other things, the performance of Deutsche Bank, the performance
of the Asset Management division, and the employee's individual contribution. In
evaluating individual contribution, management will consider a combination of
quantitative and qualitative factors. A portion of the portfolio manager's
discretionary incentive compensation may be delivered in long-term equity
programs (usually in the form of Deutsche Bank equity) (the "Equity Plan"). Top
performing portfolio managers may earn discretionary incentive compensation that
is a multiple of their base salary.

o        The quantitative analysis of a portfolio manager's individual
         performance is based on, among other factors, performance of all of the
         accounts managed by the portfolio manager (which includes the fund and
         any other accounts managed by the portfolio manager) over a one-,
         three-, and five-year period relative to the appropriate Morningstar
         and Lipper peer group universes and/or benchmark index(es) with respect
         to each account. Additionally, the portfolio manager's
         retail/institutional asset mix is weighted, as appropriate for
         evaluation purposes. Generally the benchmark index used is a benchmark
         index set forth in the fund's prospectus to which the fund's
         performance is compared. Additional or different appropriate peer group
         or benchmark indices may also be used. Primary weight is given to
         pre-tax portfolio performance over three-year and five-year time
         periods (adjusted as appropriate if the portfolio manager has served
         for less than five years) with lesser consideration given to portfolio
         performance over a one-year period. The increase or decrease in a
         fund's assets due to the purchase or sale of fund shares is not
         considered a material factor.

o        The qualitative analysis of a portfolio manager's individual
         performance is based on, among other things, the results of an annual
         management and internal peer review process, and management's
         assessment of overall portfolio manager contributions to investor
         relations, the investment process and overall performance (distinct
         from fund and other account performance). Other factors, including
         contributions made to the investment team, as well as adherence to
         Compliance Policies and Procedures, Risk Management procedures, the
         firm's Code of Ethics and "living the values" of the Advisor are also
         factors.

The quantitative analysis of a portfolio manager's performance is given more
weight in determining discretionary incentive compensation than the qualitative
portion.

Certain portfolio managers may also participate in the Equity Plan. The amount
of equity awarded under the long-term equity programs is generally based on the
individual's total compensation package and may comprise from 0% to 30% of the
total compensation award. As discretionary incentive compensation increases, the
percentage of compensation awarded in Deutsche Bank equity also increases.
Portfolio managers may receive a portion of their equity compensation in the
form of shares in the proprietary mutual funds that they manage or support.

Fund Ownership of Portfolio Managers

The following table shows the dollar range of shares owned beneficially and of
record by each member of each Fund's portfolio management team in each Fund as
well as in all DWS Funds as a group (i.e., those funds advised by Deutsche Asset
Management or its affiliates), including investments by their immediate family
members sharing the same household and amounts invested through retirement and
deferred compensation plans. This information is provided as of the Fund's most
recent fiscal year end.

<TABLE>
<CAPTION>
                           DWS
                       LifeCompass        DWS             DWS                                 DWS         Dollar Range of
Name of Portfolio       Retirement    LifeCompass     LifeCompass     DWS LifeCompass     LifeCompass      All DWS Fund
Manager                    Fund        2015 Fund       2020 Fund         2030 Fund         2040 Fund       Shares Owned
-------                    ----        ---------       ---------         ---------         ---------       ------------
<S>                        <C>            <C>            <C>                  <C>              <C>             <C>
Inna Okounkova         $1 - $10,000   $1 - $10,000   $1 - $10,000    $10,001 - $50,000   $1 - $10,000   $100,001 - $500,000
Robert Wang            $1 - $10,000   $1 - $10,000   $1 - $10,000      $1 - $10,000      $1 - $10,000   $100,001 - $500,000

Conflicts of Interest

In addition to managing the assets of each Fund, each Fund's portfolio managers
may have responsibility for managing other client accounts of the Advisor or its
affiliates. The tables below show, for each portfolio manager, the number and
asset size of (1) SEC registered investment companies (or series thereof) other
than the Fund, (2) pooled investment vehicles that are not registered investment
companies and (3) other accounts (e.g., accounts managed for individuals or
organizations) managed by each portfolio manager. Total assets attributed to
each portfolio manager in the tables below include total assets of each account
managed by them, although the manager may only manage a portion of such
account's assets. The tables also show the number of performance based fee
accounts, as well as the total assets of the accounts for which the advisory fee
is based on the performance of the account. This information is provided as of
the Fund's most recent fiscal year end.

DWS LifeCompass Retirement Fund

Other SEC Registered Investment Companies Managed:

                                       Number of        Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts       Total Assets of
                                      Investment          Investment               with           Performance-Based
Name of Portfolio Manager              Companies           Companies       Performance-Based Fee     Fee Accounts
-------------------------              ---------           ---------       ---------------------     ------------

Inna Okounkova                            14              $3,737,483,246             0                    $0
Robert Wang                               41             $15,298,152,679             0                    $0



DWS LifeCompass 2015 Fund

Other SEC Registered Investment Companies Managed:

                                       Number of        Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts      Total Assets of
                                      Investment          Investment               with           Performance-Based
Name of Portfolio Manager              Companies           Companies       Performance-Based Fee     Fee Accounts
-------------------------              ---------           ---------       ---------------------     ------------

Inna Okounkova                            14              $3,617,427,160             0                    $0
Robert Wang                               41             $15,178,096,593             0                    $0



DWS LifeCompass 2020 Fund

Other SEC Registered Investment Companies Managed:

                                       Number of        Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts       Total Assets of
                                      Investment          Investment               with           Performance-Based
Name of Portfolio Manager              Companies           Companies       Performance-Based Fee     Fee Accounts
-------------------------              ---------           ---------       ---------------------     ------------

Inna Okounkova                            14              $3,595,993,570             0                    $0
Robert Wang                               41             $15,156,663,003             0                    $0



DWS LifeCompass 2030 Fund

Other SEC Registered Investment Companies Managed:

                                       Number of        Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts        Total Assets of
                                      Investment          Investment               with           Performance-Based
Name of Portfolio Manager             Companies           Companies       Performance-Based Fee     Fee Accounts
-------------------------             ---------           ---------       ---------------------     ------------

Inna Okounkova                            14               $3,821,245,574            0                    $0
Robert Wang                               41              $15,381,915,007            0                    $0



DWS LifeCompass 2040 Fund

Other SEC Registered Investment Companies Managed:

                                       Number of         Total Assets of    Number of Investment
                                      Registered          Registered         Company Accounts      Total Assets of
                                      Investment          Investment               with           Performance-Based
Name of Portfolio Manager             Companies            Companies       Performance-Based Fee     Fee Accounts
-------------------------             ---------            ---------       ---------------------     ------------

Inna Okounkova                             14           $3,856,772,612                0                   $0
Robert Wang                                41          $15,417,442,045                0                   $0



DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020
Fund, DWS LifeCompass 2030 Fund, DWS LifeCompass 2040 Fund

Other Pooled Investment Vehicles Managed:

                                                                              Number of Pooled
                                      Number of                              Investment Vehicle
                                       Pooled          Total Assets of          Accounts with      Total Assets of
                                     Investment       Pooled Investment      Performance-Based    Performance- Based
Name of Portfolio Manager             Vehicles             Vehicles                 Fee              Fee Accounts
-------------------------             --------             --------                 ---              ------------

Inna Okounkova                              4             $87,692,463                   0                      $0
Robert Wang                                33            $898,187,238                   1            $114,496,869

DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020
Fund, DWS LifeCompass 2030 Fund, DWS LifeCompass 2040 Fund

Other Accounts Managed:

                                                                              Number of Other
                                                                               Accounts with      Total Assets of
                                      Number of     Total Assets of Other   Performance-Based      Performance-
Name of Portfolio Manager          Other Accounts          Accounts                 Fee          Based Fee Accounts
-------------------------          --------------          --------                 ---          ------------------

Inna Okounkova                              0                       $0                 0                     $0
Robert Wang                                49           $9,307,042,043                 8           $242,658,503
</TABLE>

In addition to the accounts above, an investment professional may manage
accounts in a personal capacity that may include holdings that are similar to,
or the same as, those of the Funds. The Advisor has in place a Code of Ethics
that is designed to address conflicts of interest and that, among other things,
imposes restrictions on the ability of portfolio managers and other "access
persons" to invest in securities that may be recommended or traded in the Funds
and other client accounts.

Real, potential or apparent conflicts of interest may arise when a portfolio
manager has day-to-day portfolio management responsibilities with respect to
more than one fund or account, including the following:

o        Certain investments may be appropriate for each Fund and also for other
         clients advised by the Advisor, including other client accounts managed
         by each Fund's portfolio management team. Investment decisions for each
         Fund and other clients are made with a view to achieving their
         respective investment objectives and after consideration of such
         factors as their current holdings, availability of cash for investment
         and the size of their investments generally. A particular security may
         be bought or sold for only one client or in different amounts and at
         different times for more than one but less than all clients. Likewise,
         because clients of the Advisor may have differing investment
         strategies, a particular security may be bought for one or more clients
         when one or more other clients are selling the security. The investment
         results achieved for each Fund may differ from the results achieved for
         other clients of the Advisor. In addition, purchases or sales of the
         same security may be made for two or more clients on the same day. In
         such event, such transactions will be allocated among the clients in a
         manner believed by the Advisor to be most equitable to each client,
         generally utilizing a pro rata allocation methodology. In some cases,
         the allocation procedure could potentially have an adverse effect or
         positive effect on the price or amount of the securities purchased or
         sold by each Fund. Purchase and sale orders for each Fund may be
         combined with those of other clients of the Advisor in the interest of
         achieving the most favorable net results to each Fund and the other
         clients.

o        To the extent that a portfolio manager has responsibilities for
         managing multiple client accounts, a portfolio manager will need to
         divide time and attention among relevant accounts. The Advisor attempts
         to minimize these conflicts by aligning its portfolio management teams
         by investment strategy and by employing similar investment models
         across multiple client accounts.

o        In some cases, an apparent conflict may arise where the Advisor has an
         incentive, such as a performance-based fee, in managing one account and
         not with respect to other accounts it manages. The Advisor will not
         determine allocations based on whether it receives a performance-based
         fee from the client. Additionally, the Advisor has in place supervisory
         oversight processes to periodically monitor performance deviations for
         accounts with like strategies.

o        The Advisor and its affiliates and the investment team of each Funds
         may manage other mutual funds and separate accounts on a long-short
         basis. The simultaneous management of long and short portfolios creates
         potential conflicts of interest including the risk that short sale
         activity could adversely affect the market value of the long
         positions(and vice versa), the risk arising from sequential orders in
         long and short positions, and the risks associated with receiving
         opposing orders at the same time. The Advisor has adopted procedures
         that it believes are reasonably designed to mitigate these potential
         conflicts of interest. Included in these procedures are specific
         guidelines developed to ensure fair and equitable treatment for all
         clients whose accounts are managed by each Fund's portfolio management
         team. The Advisor and the portfolio management team have established
         monitoring procedures, a protocol for supervisory reviews, as well as
         compliance oversight to ensure that potential conflicts of interest
         relating to this type of activity are properly addressed.

The Advisor is owned by Deutsche Bank AG, a multi-national financial services
company. Therefore, the Advisor is affiliated with a variety of entities that
provide, and/or engage in commercial banking, insurance, brokerage, investment
banking, financial advisory, broker-dealer activities (including sales and
trading), hedge funds, real estate and private equity investing, in addition to
the provision of investment management services to institutional and individual
investors. Since Deutsche Bank AG, its affiliates, directors, officers and
employees (the "Firm") are engaged in businesses and have interests other than
managing asset management accounts, such other activities involve real,
potential or apparent conflicts of interest. These interests and activities
include potential advisory, transactional and financial activities and other
interests in securities and companies that may be directly or indirectly
purchased or sold by the Firm for its clients' advisory accounts. These are
considerations of which advisory clients should be aware and which may cause
conflicts that could be to the disadvantage of the Advisor's advisory clients.
The Advisor has instituted business and compliance policies, procedures and
disclosures that are designed to identify, monitor and mitigate conflicts of
interest and, as appropriate, to report them to the Fund's Board.




Fees and Expenses of Underlying DWS Funds

As noted above, the Funds will bear their pro rata share of the Underlying DWS
Funds' fees and expenses. In addition, certain Underlying DWS Funds impose a fee
upon the redemption or exchange of shares held for less than one year. The fees,
which amount to 2% of the net asset value of the shares being redeemed or
exchanged, are assessed and retained by the Underlying DWS Funds for the benefit
of the remaining shareholders. The fee is intended to encourage long-term
investment in the Underlying DWS Fund. The fee is not a deferred sales charge,
is not a commission paid to the Advisor or its subsidiary and does not benefit
the Advisor in any way. Each such Underlying DWS Fund reserves the right to
modify the terms of or terminate this fee at any time. As a shareholder of such
Underlying DWS Funds, the Funds will be subject to such fees. Under normal
market conditions, the Funds will seek to avoid taking action that would result
in the imposition of such a fee. However, in the event that a fee is incurred,
the net assets of the Fund would be reduced by the amount of such fees that are
assessed and retained by the Underlying DWS Funds for the benefit of their
shareholders.

The management fees and total operating expenses of the Underlying DWS Funds
during their most recent fiscal year as reflected in the funds' currently
effective prospectuses are described in the following table. Reimbursement and
or waiver arrangements applicable to certain Underlying DWS Funds caused the net
fees and/or expenses for those funds to be lower than the values below.


<TABLE>
<CAPTION>
                                                                          Management
Name of Fund                                        Fiscal Year End        Fees (%)      Total Expenses   Net Expenses
------------                                        ---------------        --------           ---------      ---------
<S>                                                      <C>                 <C>              <C>               <C>
DWS Blue Chip Fund                                       10/31               0.57             0.67            N/A
DWS Capital Growth Fund(1)                                9/30              0.56+             0.74            N/A
DWS Commodity Securities Fund(2)                          6/30               0.95             1.22            N/A
DWS Disciplined Market Neutral Fund(3)                    8/31              1.35+             3.36            2.69
DWS Disciplined Long/Short Growth Fund(4)                 4/30               1.00             3.87            2.33
DWS Disciplined Long/Short Value Fund(5)                  4/30               1.00             3.42            2.30
DWS Emerging Markets Equity Fund(6)                      10/31               1.01             1.44            N/A
DWS Emerging Markets Fixed Income Fund(7)                10/31               0.67             1.05            N/A
DWS Equity 500 Index Fund(8)                             12/31               0.05             0.26            N/A
DWS Communications Fund(9)                               12/31               0.90             1.10            N/A
DWS Core Fixed Income Fund(10)                           10/31               0.40             0.59            N/A
DWS Floating Rate Plus Fund(11)                           5/31               0.65             1.19            0.95
DWS Global Thematic Fund(12)                              8/31               0.84             1.04            N/A
DWS Global Bond Fund(13)                                 10/31               0.62             1.22            1.01
DWS Global Opportunities Fund(14)                        10/31               0.99             1.24            N/A
DWS GNMA Fund                                             9/30              0.42+             0.58            N/A
DWS Gold & Precious Metals Fund(15)                      10/31               0.87             1.16            N/A
DWS Europe Equity Fund(16)                               10/31               0.65             0.87            N/A
DWS Growth & Income Fund(17)                             12/31              0.45+             0.50            N/A
DWS Health Care Fund                                      5/31               0.77             1.04            N/A
DWS High Income Fund                                      9/30               0.54             0.65            N/A
DWS High Income Plus Fund(18)(19)                        10/31               0.50             0.78            0.66
DWS Dreman Concentrated Value Fund(20)                   10/31               0.80             1.23            1.06
DWS Dreman Mid Cap Value Fund(21)                        10/31               0.75             1.22            1.00
DWS Dreman High Return Equity Fund(22)                   11/30               0.67             0.79            N/A
DWS Core Plus Income Fund(23)                             1/31               0.45             0.63            N/A
DWS Inflation Protected Plus Fund(24)                     9/30              0.50+             1.29            0.65
DWS International Fund(25)                                8/31              0.67*             0.78            N/A
DWS International Select Equity Fund(26)                 10/31               0.70             1.04            N/A
DWS International Value Opportunities Fund(27)            8/31              0.90+             3.26            1.36
DWS Japan Equity Fund                                     8/31              0.95+             1.37            N/A
DWS Large Cap Value Fund(28)                             11/30               0.42             0.58            N/A
DWS Large Company Growth Fund                             7/31              0.71+             0.83            N/A
DWS Latin America Equity Fund                            10/31               1.11             1.45            N/A
DWS Micro Cap Fund(29)(30)                                9/30              1.35+             1.71            1.52
DWS Mid Cap Growth Fund(31)                               9/30              0.72+             1.03            1.00
DWS Money Market Prime Series - DWS Cash
Investment Trust(32)(33)                                  7/31               0.26             0.56            N/A
DWS Money Market Series --  Institutional
Shares(34)(35)(36)                                       12/31              0.13**            0.27            0.15
DWS RREEF Global Real Estate Securities Fund(37)         12/31               1.00             1.30            1.26
DWS RREEF Real Estate Securities Fund                    12/31               0.38             0.57            N/A
DWS S&P 500 Index Fund(38)                               12/31               0.05             0.48            0.43
DWS Enhanced S&P 500 Index Fund(39)(40)                   2/28               0.42             1.00            N/A
DWS Short Duration Fund(41)(42)                          10/31               0.40             0.82            0.67
DWS Short Duration Plus Fund(43)                          9/30               0.37             0.52            N/A
DWS Small Cap Growth Fund(44)                             9/30              0.75+             0.91            N/A
DWS Small Cap Core Fund                                   9/30              0.77+             1.15            N/A
DWS Dreman Small Cap Value Fund                          11/30               0.71             0.87            N/A
DWS Technology Fund                                      10/31               0.56             0.72            N/A
DWS U.S. Bond Index Fund45 (46)                          12/31               0.15             0.40            0.32
DWS RREEF Global Infrastructure Fund(47)                 12/31               0.90             1.41            1.25
</TABLE>

+         Includes 0.10% administration fee.

*         Restated on an annualized basis to reflect fee changes that took
          effect on June 11, 2007. Includes 0.10% administration fee.

**        Effective July 30, 2007 the fund became a feeder fund of Cash
          Management Portfolio. The management fee is paid at the Portfolio
          level. Restated on an annualized basis to reflect fee changes that
          took place on August 1, 2007.





(1)       Through November 30, 2008, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 0.73% for the Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest. Although there can be no assurances
          that the current waiver/expense reimbursement arrangements will be
          maintained beyond November 30, 2008, the Advisor has committed to
          review the continuance of waiver/expense reimbursement arrangements by
          November 30, 2008.

(2)       Through September 30, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          certain operating expenses of the fund to the extent necessary to
          maintain the fund's total operating expenses at 1.25% for
          Institutional Class shares, excluding certain expenses such as
          extraordinary expenses, taxes, brokerage and interest.

(3)       Through November 30, 2008, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 1.45% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest (estimated at 0.37%), and dividend
          expenses on short sales (estimated at 0.87%).

(4)       Through September 30, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at ratios no higher than 1.20% for
          Institutional Class shares, excluding certain expenses such as
          extraordinary expenses, taxes, brokerage, interest, leverage expenses
          and dividend expenses on short sales.

(5)       Through September 30, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at ratios no higher than 1.20% for
          Institutional Class shares, excluding certain expenses such as
          extraordinary expenses, taxes, brokerage, interest, leverage expenses
          and dividend expenses on short sales

(6)       Through September 30, 2008, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 1.71% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.

(7)       Through September 30, 2008, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 1.13% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest. Although there can be no assurances
          that the current waiver/expense reimbursement arrangement will be
          maintained beyond September 30, 2008, the Advisor has committed to
          review the continuance of waiver/expense reimbursement arrangements by
          September 30, 2008.





(8)       The Advisor has voluntarily agreed to waive a portion of its fees and
          reimburse expenses for the fund, including expenses allocated from the
          Portfolio, so that total operating expenses of the fund will not
          exceed 0.10% for Institutional Class shares, excluding certain
          expenses such as extraordinary expenses, taxes, brokerage and
          interest. The Advisor, at its discretion, may revise or discontinue
          this arrangement at any time.

(9)       The Advisor has voluntarily agreed to waive all or a portion of its
          fees and reimburse expenses so that the fund's total operating
          expenses will not exceed 1.18% for Institutional Class shares,
          excluding certain expenses, such as extraordinary expenses, taxes,
          brokerage and interest. The Advisor, at its discretion, may revise or
          discontinue this arrangement at any time.





(10)      The Advisor has voluntarily agreed to waive a portion of its fees and
          reimburse expenses so that total operating expenses of the fund will
          not exceed 0.55% for Institutional Class shares, excluding certain
          expenses such as extraordinary expenses, taxes, brokerage and interest
          expenses. The Advisor, at its discretion, may revise or discontinue
          this arrangement at any time.

(11)      Through September 30, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 0.95% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.

(12)      Through September 30, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 1.40% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.

(13)      Through February 29, 2008, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total annual operating expenses at 1.01% for Class S shares,
          excluding certain expenses such as extraordinary expenses, taxes,
          brokerage and interest.

(14)      Through September 30, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 1.32% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.





(15)      Through September 30, 2008, the Advisor has contractually agreed to
          waive all or a portion of its fees and reimburse or pay operating
          expenses of the fund so that total operating expenses will not exceed
          1.23% for Institutional Class shares, excluding certain expenses such
          as extraordinary expenses, taxes, brokerage, interest and expenses of
          acquired funds (underlying funds). Although there can be no assurances
          that the current waiver/expense reimbursement arrangement will be
          maintained beyond September 30, 2008, the Advisor has committed to
          review the continuance of waiver/expense reimbursement arrangements by
          September 30, 2008.

(16)      Through March 13, 2008, the Advisor has contractually agreed to waive
          all or a portion of its management fee and reimburse or pay operating
          expenses of the fund to the extent necessary to maintain the fund's
          total operating expenses at 1.11% for Institutional Class shares,
          excluding certain expenses such as extraordinary expenses, taxes,
          brokerage and interest.

(17)      Through May 1, 2008, the Advisor has contractually agreed to waive all
          or a portion of its management fee and reimburse or pay operating
          expenses of the fund to the extent necessary to maintain the fund's
          total annual operating expenses at 0.58% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.





(18)      Through May 15, 2008, 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 to the extent necessary to maintain the
          fund's total operating expenses at 0.65% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest expenses.

(19)      Through May 11, 2010, the Advisor has contractually agreed to waive a
          portion of its management fee in the amount of 0.12% of the fund's
          average daily net assets.





(20)      Through February 29, 2008, 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 so that the total operating
          expenses will not exceed 1.06% for Institutional Class shares
          excluding certain expenses such as extraordinary expenses, taxes,
          brokerage and interest.

(21)      Through February 28, 2009, 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 to the extent necessary to
          maintain the fund's total operating expenses at 1.00% excluding
          certain expenses such as extraordinary expenses, taxes, brokerage and
          interest.

(22)      Through October 20, 2009, 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 to the extent necessary to
          maintain the fund's total operating expenses at 0.83% for
          Institutional Class shares, excluding certain expenses such as
          extraordinary expenses, taxes, brokerage and interest.

(23)      Through September 30, 2008, 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 so that the total operating
          expenses of the fund will not exceed 0.76% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest. Although there can be no assurance that
          the current waiver/expense reimbursement arrangement will be
          maintained beyond September 30, 2008, the Advisor has committed to
          review the continuance of such waiver/expense reimbursement
          arrangements by September 30, 2008.





(24)      Through January 31, 2009, the investment advisor has contractually
          agreed to waive a portion of its fees and reimburse expenses so that
          total annual operating expenses will not exceed 0.65%, excluding
          certain expenses such as extraordinary expenses, taxes, brokerage and
          interest.

(25)      Through November 30, 2010, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 0.88% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.

(26)      The Advisor has agreed to voluntarily waive a portion of its fees and
          reimburse or pay operating expenses of the fund so that total annual
          operating expenses of the fund will not exceed 0.92% for Institutional
          Class shares, excluding certain expenses such as extraordinary
          expenses, taxes, brokerage and interest. This voluntary waiver or
          reimbursement may be terminated at any time at the option of the
          Advisor.

(27)      Through November 30, 2008, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total annual operating expenses at 1.32% for Institutional
          Class shares, excluding certain expenses such as extraordinary
          expenses, taxes, brokerage and interest.

(28)      Through March 31, 2008, 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 to the extent necessary to maintain the
          fund's total operating expenses at 0.65% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.

(29)      Through November 30, 2009, the Advisor has contractually agreed to
          waive a portion of its Investment Management Fee in the amount of
          0.305% of the fund's average daily total net assets.





(30)      Through January 31, 2009, the Advisor has contractually agreed to
          waive all or a portion of its fees and reimburse or pay certain
          operating expenses of the fund so that the total operating expense
          will not exceed 1.52% for Institutional Class shares, excluding
          certain expenses such as extraordinary expenses, taxes, brokerage and
          interest.

(31)      Through January 31, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 1.00% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.





(32)      Through September 30, 2008, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total annual operating expenses at 0.67% for Class S shares,
          excluding certain expenses such as extraordinary expenses, taxes,
          brokerage and interest.

(33)      Effective October 1, 2008 through March 9, 2010, the Advisor has
          contractually agreed to waive all or a portion of its management fee
          and reimburse or pay operating expenses of the fund to the extent
          necessary to maintain the fund's total annual operating expenses at
          0.72% for Class S shares, excluding certain expenses such as
          extraordinary expenses, taxes, brokerage and interest.

(34)      The Portfolio's Advisor has contractually agreed through July 29, 2010
          to waive all or a portion of its management fee and reimburse or pay
          certain operating expenses (excluding certain expenses such as
          extraordinary expenses, taxes, brokerage and interest expenses) to the
          extent necessary to maintain the annual expenses of the Portfolio at
          0.15% of the Portfolio's average daily net assets. (A further
          discussion of the relationship between the fund and the Portfolio
          appears in the "Who Manages and Oversees the Fund _ Organizational
          Structure" section of the prospectus.)

(35)      Through July 29, 2010, the Advisor has contractually agreed to waive
          all or a portion of its administrative services fee and reimburse or
          pay operating expenses of the fund to the extent necessary to maintain
          the fund's total operating expenses at 0.15% for Institutional Shares,
          excluding certain expenses such as extraordinary expenses, taxes,
          brokerage and interest expenses.

(36)      Effective February 5, 2008, the Advisor has voluntarily agreed to
          waive 0.13% of the fund's total operating expenses. This voluntary
          waiver or reimbursement may be terminated at any time at the option of
          the Advisor.





(37)      Through April 30, 2009, the Advisor has contractually agreed to waive
          all or a portion of its management fee and reimburse or pay operating
          expenses of the fund to the extent necessary to maintain the fund's
          total operating expenses at 1.26% for Institutional Class shares,
          excluding certain expenses such as extraordinary expenses, taxes,
          brokerage and interest.





(38)      Through April 30, 2009, the Advisor has contractually agreed to waive
          all or a portion of its fees and reimburse or pay certain operating
          expenses for the fund, including expenses allocated from the
          Portfolio, so that the fund's total operating expenses will not exceed
          0.43% for Class S shares, excluding certain expenses such as
          extraordinary expenses, taxes, brokerage and interest.

(39)      Through September 30, 2008, 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 to the extent necessary to
          maintain the fund's total operating expenses at 0.97% for Class S
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.

(40)      Effective October 1, 2008 through September 30, 2009, the Advisor has
          contractually agreed to waive all or a portion of its management fee
          and reimburse or pay certain operating expenses of the fund to the
          extent necessary to maintain the fund's total operating expenses at a
          ratio no higher than 1.03% for Class S shares, excluding certain
          expenses such as extraordinary expenses, taxes, brokerage and interest
          expenses.

(41)      Through February 28, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          certain operating expenses so that the total operating expenses of the
          fund will not exceed 0.67% for Institutional Class shares, excluding
          certain expenses such as extraordinary expenses, taxes, brokerage and
          interest expenses.

(42)      The Advisor has voluntarily agreed to waive a portion of its fees and
          reimburse expenses so that total operating expenses of the fund will
          not exceed 0.45% for Institutional Class shares, excluding certain
          expenses such as extraordinary expenses, taxes, brokerage and interest
          expenses. The Advisor, at its discretion, may revise or discontinue
          this arrangement at any time.

(43)      Through September 30, 2007 the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 0.64% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.

(44)      Through January 31, 2010, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          operating expenses of the fund to the extent necessary to maintain the
          fund's total operating expenses at 1.00% for Institutional Class
          shares, excluding certain expenses such as extraordinary expenses,
          taxes, brokerage and interest.

(45)      Through April 30, 2009, 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 so that the fund's total operating
          expenses will not exceed 0.32% for Institutional Class shares,
          excluding certain expenses such as extraordinary expenses, taxes,
          brokerage and interest.

(46)      The Advisor has voluntarily agreed to waive a portion of its fees and
          reimburse expenses so that total operating expenses of the fund will
          not exceed 0.15% for Institutional Class shares, excluding certain
          expenses such as extraordinary expenses, taxes, brokerage and
          interest. The Advisor, at its discretion, may revise or discontinue
          this arrangement at any time.

(47)      Through September 30, 2009, the Advisor has contractually agreed to
          waive all or a portion of its management fee and reimburse or pay
          certain operating expenses of the fund to the extent necessary to
          maintain the fund's total operating expenses at 1.25% for
          Institutional Class shares, excluding certain expenses such as
          extraordinary expenses, taxes, brokerage and interest.




The Advisor may serve as advisor to other funds with investment objectives and
policies similar to those of a Fund that may have different distribution
arrangements or expenses, which may affect performance.

Codes of Ethics

The Funds, the Advisor and the Funds' principal underwriter have each adopted
codes of ethics under Rule 17j-1 under the 1940 Act. Board members, officers of
the Trust and employees of the Advisor and principal underwriter are permitted
to make personal securities transactions, including transactions in securities
that may be purchased or held by the Funds, subject to requirements and
restrictions set forth in the applicable Code of Ethics. The Advisor's Code of
Ethics contains provisions and requirements designed to identify and address
certain conflicts of interest between personal investment activities and the
interests of the Funds. Among other things, the Advisor's Code of Ethics
prohibits certain types of transactions absent prior approval, imposes time
periods during which personal transactions may not be made in certain
securities, and requires the submission of duplicate broker confirmations and
quarterly reporting of securities transactions. Additional restrictions apply to
portfolio managers, traders, research analysts and others involved in the
investment advisory process. Exceptions to these and other provisions of the
Advisor's Code of Ethics may be granted in particular circumstances after review
by appropriate personnel.

Regulatory Matters and Legal Proceedings


On December 21, 2006, Deutsche Asset Management ("DeAM") settled proceedings
with the Securities and Exchange Commission ("SEC") and the New York Attorney
General on behalf of Deutsche Asset Management, Inc. ("DAMI") and DIMA, the
investment advisors to many of the DWS Investments funds, regarding allegations
of improper trading of fund shares at DeAM and at the legacy Scudder and Kemper
organizations prior to their acquisition by DeAM in April 2002. These regulators
alleged that although the prospectuses for certain funds in the regulators' view
indicated that the funds did not permit market timing, DAMI and DIMA breached
their fiduciary duty to those funds in that their efforts to limit trading
activity in the funds were not effective at certain times. The regulators also
alleged that DAMI and DIMA breached their fiduciary duty to certain funds by
entering into certain market timing arrangements with investors. These trading
arrangements originated in businesses that existed prior to the currently
constituted DeAM organization, which came together as a result of various
mergers of the legacy Scudder, Kemper and Deutsche fund groups, and all of the
arrangements were terminated prior to the start of the regulatory investigations
that began in the summer of 2003. No current DeAM employee approved these
trading arrangements. Under the terms of the settlements, DAMI and DIMA neither
admitted nor denied any wrongdoing.

The terms of the SEC settlement, which identified improper trading in the legacy
Deutsche and Kemper mutual funds only, provide for payment of disgorgement in
the amount of $17.2 million. The terms of the settlement with the New York
Attorney General provide for payment of disgorgement in the amount of $102.3
million, which is inclusive of the amount payable under the SEC settlement, plus
a civil penalty in the amount of $20 million. The total amount payable by DeAM,
approximately $122.3 million, will be distributed to shareholders of the
affected funds in accordance with a distribution plan to be developed by a
distribution consultant. The funds' investment advisors do not believe these
amounts will have a material adverse financial impact on them or materially
affect their ability to perform under their investment management agreements
with the DWS funds. The above-described amounts are not material to Deutsche
Bank, and have already been reserved.

Among the terms of the settled orders, DeAM is subject to certain undertakings
regarding the conduct of its business in the future, including formation of a
Code of Ethics Oversight Committee to oversee all matters relating to issues
arising under the advisors' Code of Ethics; establishment of an Internal
Compliance Controls Committee having overall compliance oversight responsibility
of the advisors; engagement of an Independent Compliance Consultant to conduct a
comprehensive review of the advisors' supervisory compliance and other policies
and procedures designed to prevent and detect breaches of fiduciary duty,
breaches of the Code of Ethics and federal securities law violations by the
advisors and their employees; and commencing in 2008, the advisors shall undergo
a compliance review by an independent third party.

In addition, DeAM is subject to certain further undertakings relating to the
governance of the mutual funds, including that at least 75% of the members of
the Boards of Trustees/Directors overseeing the DWS Funds continue to be
independent of DeAM; the Chairmen of the DWS Funds' Boards of Trustees/Directors
continue to be independent of DeAM; DeAM maintain existing management fee
reductions for certain funds for a period of five years and not increase
management fees for these certain funds during this period; the funds retain a
senior officer (or independent consultants, as applicable) responsible for
assisting in the review of fee arrangements and monitoring compliance by the
funds and the investment advisors with securities laws, fiduciary duties, codes
of ethics and other compliance policies, the expense of which shall be borne by
DeAM; and periodic account statements, fund prospectuses and the mutual funds'
web site contain additional disclosure and/or tools that assist investors in
understanding the fees and costs associated with an investment in the funds and
the impact of fees and expenses on fund returns.

DeAM has also settled proceedings with the Illinois Secretary of State regarding
market timing matters. The terms of the Illinois settlement provide for investor
education contributions totaling approximately $4 million and a payment in the
amount of $2 million to the Securities Audit and Enforcement Fund.

On September 28, 2006, the SEC and the National Association of Securities
Dealers ("NASD") (now known as the Financial Industry Regulatory Authority, or
"FINRA") announced final agreements in which Deutsche Investment Management
Americas Inc. ("DIMA"), Deutsche Asset Management, Inc. ("DAMI") and DWS Scudder
Distributors, Inc. (now known as DWS Investments Distributors, Inc. ("DIDI"))
settled administrative proceedings regarding disclosure of brokerage allocation
practices in connection with sales of the DWS Funds' (now known as the DWS
Investments Funds) shares during 2001-2003. The agreements with the SEC and NASD
are reflected in orders which state, among other things, that DIMA and DAMI
failed to disclose potential conflicts of interest to the funds' Boards and to
shareholders relating to DIDI's use of certain funds' brokerage commissions to
reduce revenue sharing costs to broker-dealer firms with whom it had
arrangements to market and distribute DWS Fund shares. These directed brokerage
practices were discontinued in October 2003.

Under the terms of the settlements, in which DIMA, DAMI and DIDI neither
admitted nor denied any of the regulators' findings, DIMA, DAMI and DIDI agreed
to pay disgorgement, prejudgment interest and civil penalties in the total
amount of $19.3 million. The portion of the settlements distributed to the funds
was approximately $17.8 million and was paid to the funds as prescribed by the
settlement orders based upon the amount of brokerage commissions from each fund
used to satisfy revenue sharing agreements with broker-dealers who sold fund
shares.

As part of the settlements, DIMA, DAMI and DIDI also agreed to implement certain
measures and undertakings relating to revenue sharing payments including making
additional disclosures in the funds' Prospectuses or Statements of Additional
Information, adopting or modifying relevant policies and procedures and
providing regular reporting to the fund Boards.

Additional information announced by DeAM regarding the terms of the settlements
is available at www.dws-investments.com/regulatory_settlements.

The matters alleged in the regulatory settlements described above also serve as
the general basis of a number of private class action lawsuits involving the DWS
funds. These lawsuits name as defendants various persons, including certain DWS
funds, the funds' investment advisors and their affiliates, and certain
individuals, including in some cases fund Trustees/Directors, officers, and
other parties. Each DWS fund's investment advisor has agreed to indemnify the
applicable DWS funds in connection with these lawsuits, or other lawsuits or
regulatory actions that may be filed making similar allegations.

Based on currently available information, the funds' investment advisors believe
the likelihood that the pending lawsuits will have a material adverse financial
impact on a DWS fund is remote and such actions are not likely to materially
affect their ability to perform under their investment management agreements
with the DWS funds.




                             FUND SERVICE PROVIDERS


Administrator

Each Fund has entered into an administrative services agreement with the Advisor
(the "Administrative Services Agreement"), pursuant to which the Advisor
provides administrative services to each Fund including, among others, providing
the Funds with personnel, preparing and making required filings on behalf of the
Funds, maintaining books and records for the Funds, and monitoring the valuation
of Fund securities. For all services provided under the Administrative Services
Agreement, each Fund pays the Advisor a fee, computed daily and paid monthly, of
0.100% of the Funds' average daily net assets.


Under the Administrative Services Agreement, the Advisor is obligated on a
continuous basis to provide such administrative services as the Board of the
Funds reasonably deems necessary for the proper administration of the Funds. The
Advisor provides the Funds with personnel; arranges for the preparation and
filing of each Fund's tax returns; prepares and submits reports and meeting
materials to the Board and the shareholders; prepares and files updates to the
Funds' prospectuses and statements of additional information as well as other
reports required to be filed by the SEC; maintains each Fund's records; provides
the Funds with office space, equipment and services; supervises, negotiates the
contracts of and monitors the performance of third parties contractors; oversees
the tabulation of proxies; monitors the valuation of portfolio securities and
monitors compliance with Board-approved valuation procedures; assists in
establishing the accounting and tax policies of each Fund; assists in the
resolution of accounting issues that may arise with respect to the Funds;
establishes and monitors each Fund's operating expense budgets; reviews and
processes each Fund's bills; assists in determining the amount of dividends and
distributions available to be paid by the Funds, prepares and arranges dividend
notifications and provides information to agents to effect payments thereof;
provides to the Board periodic and special reports; provides assistance with
investor and public relations matters; and monitors the registration of shares
under applicable federal and state law. The Advisor also performs certain fund
accounting services under the Administrative Services Agreement. The
Administrative Services Agreement provides that the Advisor will not be liable
under the Administrative Services Agreement except for willful misfeasance, bad
faith or negligence in the performance of its duties or from the reckless
disregard by it of its duties and obligations thereunder.


Pursuant to an agreement between the Administrator and State Street Bank and
Trust Company, the Administrator has delegated certain administrative functions
to SSB. The costs and expenses of such delegation are borne by the
Administrator, not by the Funds.

For the year ended August 31, 2008, DIMA received $139,294, $285,134 and
$295,606 as compensation for administrative services provided to DWS LifeCompass
Retirement Fund, DWS LifeCompass 2015 Fund and DWS LifeCompass 2020 Fund,
respectively. For the year ended August 31, 2008, DIMA received $41,077 as
compensation for administrative services provided to DWS LifeCompass 2030 Fund,
all of which was waived. For the period November 15, 2007 (commencement of
operations) through August 31, 2008, DIMA received $1882 as compensation for
administrative services provided to DWS LifeCompass 2040 Fund, all of which was
waived.


For the year ended August 31, 2007, DIMA received $145,630, $321,480, $323,731
and $50,000 (of which $50,000 was waived) as compensation for administrative
services provided to DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund,
DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund, respectively.


For the period from June 1, 2006 through August 31, 2006, DIMA received $34,584,
$75,255, $75,059 and $12,500 as compensation for administration services
provided to DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS
LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund, respectively. DIMA waived
$12,500 of administration services fees for DWS LifeCompass 2030 Fund.

Prior to June 1, 2006, DWS Investments Fund Accounting Corporation ("DIFA"), Two
International Place, Boston, Massachusetts, 02110, a subsidiary of the Advisor,
was responsible for determining net asset value per share and maintaining the
portfolio and general accounting records for the Funds. From April 1, 2004
through May 31, 2006, each Fund paid DIFA an annual fee equal to 0.0250% of the
first $150 million of average daily net assets, 0.0075% of such assets in excess
of $150 million and 0.0045% of such assets in excess of $1 billion, plus holding
and transaction charges for this service. For the period from September 1, 2005
through May 31, 2006, the amount charged to the Funds by DIFA for accounting
services aggregated $26,070, $41,612, $40,543 and $73,346, respectively, for the
DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020
Fund and DWS LifeCompass 2030 Fund. In addition, the Advisor waived accounting
fees of $73,346 for DWS LifeCompass 2030 Fund.




Underwriter


The Trust, on behalf of the Funds, has an underwriting agreement with DWS
Investments Distributors, Inc., 222 South Riverside Plaza, Chicago, Illinois
60606 ("DIDI" or the "Distributor"), a Massachusetts corporation, which is a
subsidiary of the Advisor, a Delaware corporation. The Trust's underwriting
agreement remains in effect from year to year only if its continuance is
approved annually by a majority of the members of the Board of Trustees who are
not parties to such agreement or Interested Persons of any such party and either
by vote of a majority of the Board of Trustees or a majority of the outstanding
voting securities of each Fund.


Under the underwriting agreement, each Fund is responsible for: the payment of
all fees and expenses in connection with the preparation and filing with the SEC
of its registration statement and prospectus and any amendments and supplements
thereto; the registration and qualification of shares for sale in the various
states, including registering each Fund as a broker or dealer in various states,
as required; the fees and expenses of preparing, printing and mailing
prospectuses annually to existing shareholders (see below for expenses relating
to prospectuses paid by the Distributor); notices, proxy statements, reports or
other communications to shareholders of each Fund; the cost of printing and
mailing confirmations of purchases of shares and any prospectuses accompanying
such confirmations; any issuance taxes and/or any initial transfer taxes; a
portion of shareholder toll-free telephone charges and expenses of shareholder
service representatives; the cost of wiring funds for share purchases and
redemptions (unless paid by the shareholder who initiates the transaction); the
cost of printing and postage of business reply envelopes; and a portion of the
cost of computer terminals used by both the Funds and the Distributor.

The Distributor will pay for printing and distributing prospectuses or reports
prepared for its use in connection with the offering of each Fund's shares to
the public and preparing, printing and mailing any other literature or
advertising in connection with the offering of shares of each Fund to the
public. The Distributor will pay all fees and expenses in connection with its
qualification and registration as a broker or dealer under federal and state
laws, a portion of the cost of toll-free telephone service and expenses of
shareholder service representatives, a portion of the cost of computer
terminals, and expenses of any activity which is primarily intended to result in
the sale of shares issued by each Fund, unless a Rule 12b-1 Plan is in effect
which provides that a Fund shall bear some or all of such expenses.

Note: Although Class S of the Funds does not have a 12b-1 Plan, and the Trustees
have no current intention of adopting one, the Funds will also pay those fees
and expenses permitted to be paid or assumed by the Trust pursuant to a 12b-1
Plan, if any, adopted by the Trust, notwithstanding any other provision to the
contrary in the underwriting agreement.

The Distributor currently offers shares of each Fund on a continuous basis to
investors in all states in which shares of each Fund may from time to time be
registered or where permitted by applicable law. The underwriting agreement
provides that the Distributor accepts orders for shares at net asset value as no
sales commission or load is charged to the investor. The Distributor has made no
firm commitment to acquire shares of each Fund.


Custodian


State Street Bank and Trust Company (the "Custodian" or "SSB"), 225 Franklin
Street, Boston, Massachusetts 02110, as custodian, has custody of all securities
and cash of the Funds. The Custodian attends to the collection of principal and
income, and payment for and collection of proceeds of securities bought and sold
by the Funds. The custodian's fee may be reduced by certain earnings credits in
favor of each Fund.


Transfer Agent and Shareholder Service Agent

DWS Investments Service Company ("DISC" or "Transfer Agent"), 210 West 10th
Street, Kansas City, Missouri 64105-1614, a subsidiary of the Advisor, is the
transfer, shareholder servicing and dividend disbursing agent for the shares of
each Fund. DISC also provides subaccounting and recordkeeping services for
shareholder accounts in certain retirement and employee benefit plans.

The Transfer Agent receives an annual service fee for each account of the Fund,
based on the type of account. For open retail accounts, the fee is a flat fee
ranging from $20.00 to $27.50 per account, for open wholesale money funds the
fee is $32.50 per account, while for certain retirement accounts serviced on the
recordkeeping system of ADP, Inc., the fee is a flat fee up to $3.60 per account
(as of 2007, indexed to inflation) plus an asset based fee of up to 0.25% of
average net assets. 1/12th of the annual service charge for each account is
charged and payable to the Transfer Agent each month. A fee is charged for any
account which at any time during the month had a share balance in the Fund.
Smaller fees are also charged for closed accounts for which information must be
retained on the Transfer Agent's system for up to 18 months after closing for
tax reporting purposes.

Certain out-of-pocket expenses incurred by the Transfer Agent, including
expenses of printing and mailing routine fund disclosure documents, costs of
record retention and transaction processing costs are reimbursed by the Fund or
are paid directly by the Fund. Certain additional out-of-pocket expenses,
including costs of computer hardware and software, third party record-keeping
and processing of proxy statements, may only be reimbursed by the Fund with the
prior approval of the Fund's Board.





Effective April 1, 2007, DWS Investments Service Company is the Transfer Agent
for all classes of all DWS funds. Prior to April 1, 2007, DWS Scudder Service
Corporation ("DWS-SSC") served as Transfer Agent for Class S shares of each
Fund.

DWS LifeCompass Retirement Fund: For the fiscal year ended August 31, 2006, the
amount charged by DWS-SSC aggregated $149,842 (of which $119,014 was waived) for
Class S shares. For the fiscal year ended August 31, 2007, the amount charged by
DISC aggregated $190,474 (of which $90,206 was waived) for Class S shares. For
the fiscal year ended August 31, 2008, the amount charged by DISC aggregated
$134,740 (of which $109,528 was waived) for Class S shares.

DWS LifeCompass 2015 Fund: For the fiscal year ended August 31, 2006, the amount
charged by DWS-SSC aggregated $446,472 (of which $220,438 was waived) for Class
S shares. For the fiscal year ended August 31, 2007, the amount charged by DISC
aggregated $294,143 (of which $69,411 was waived) for Class S shares. For the
fiscal year ended August 31, 2008, the amount charged by DISC aggregated
$244,518 (of which $166,445 was waived) for Class S shares.

DWS LifeCompass 2020 Fund: For the fiscal year ended August 31, 2006, the amount
charged by DWS-SSC aggregated $292,930 (of which $ 169,140 was waived) for Class
S shares. For the fiscal year ended August 31, 2007, the amount charged by DISC
aggregated $429,456 (of which $176,799 was waived) for Class S shares. For the
fiscal year ended August 31, 20087, the amount charged by DISC aggregated
$347,286 (of which $249,172 was waived) for Class S shares.

DWS LifeCompass 2030 Fund: For the fiscal period ended August 31, 2006, the
amount charged by DWS-SSC aggregated $4,931 (all of which was waived) for Class
S shares. For the fiscal year ended August 31, 2007, the amount charged by DISC
aggregated $7,087 (of which $7,087 was waived) for Class S shares. For the
fiscal year ended August 31, 2008, the amount charged by DISC aggregated $11,594
(of which $11,594 was waived) for Class S shares.

DWS LifeCompass 2040 Fund: For the period November 15, 2007 (commencement of
operations) through August 31, 2008, the amount charged by DISC aggregated
$3,386 (of which $1,468 was waived) for Class S shares.

Pursuant to a sub-transfer agency agreement between DISC and DST Systems, Inc.
("DST"), DISC has delegated certain transfer agent, dividend paying agent and
shareholder servicing agent functions to DST. The costs and expenses of such
delegation are borne by DISC, not by the Funds.


The Funds, or the Advisor (including any affiliate of the Advisor), or both, may
pay unaffiliated third parties for providing recordkeeping and other
administrative services with respect to accounts of participants in retirement
plans or other beneficial owners of Fund shares whose interests are held in an
omnibus account.

Legal Counsel


Ropes & Gray LLP, One International Place, Boston, Massachusetts 02110, serves
as legal counsel to each Fund and as co-counsel to the Independent Trustees.

Vedder Price P.C., 222 North LaSalle Street, Chicago, Illinois 60601, serves as
co-counsel to the Independent Trustees.


Independent Registered Public Accounting Firm and Reports to Shareholders

The financial highlights of each Fund included in the Funds' Prospectus and the
Financial Statements incorporated by reference in this Statement of Additional
Information have been so included or incorporated by reference in reliance on
the report of PricewaterhouseCoopers LLP, 125 High Street, Boston, Massachusetts
02110, an independent registered public accounting firm, given on the authority
of said firm as experts in auditing and accounting. PricewaterhouseCoopers
audits the financial statements of the Funds and provides other audit, tax and
related services. Shareholders will receive annual audited financial statements
and semiannual unaudited financial statements.

Retirement Service Provider. DWS Trust Company, an affiliate of the Advisor,
provides subaccounting and recordkeeping services for shareholder accounts in
certain retirement and employee benefit plans invested in the Funds. Annual
service fees are paid by each Fund to DWS Trust Company, 11 Northeastern
Boulevard, Salem, NH 03079 for such accounts. Pursuant to an agreement between
DWS Trust Company and ADP, DWS Trust Company has delegated certain
sub-accounting and recordkeeping functions to ADP. The costs and expenses of
such delegation are borne by DWS Trust Company, not by the Funds.

                             PORTFOLIO TRANSACTIONS

Portfolio Transactions of the Underlying DWS Funds

The Advisor is generally responsible for placing the orders for the purchase and
sale of portfolio securities, including the allocation of brokerage. With
respect to those funds for which a sub-investment advisor manages the fund's
investments, references in this section to the "Advisor" should be read to mean
the Sub-Advisor, except as noted below.

The policy of the Advisor in placing orders for the purchase and sale of
securities for the Funds is to seek best execution, taking into account such
factors, among others, as price; commission (where applicable); the
broker-dealer's ability to ensure that securities will be delivered on
settlement date; the willingness of the broker-dealer to commit its capital and
purchase a thinly traded security for its own inventory; whether the
broker-dealer specializes in block orders or large program trades; the
broker-dealer's knowledge of the market and the security; the broker-dealer's
ability to maintain confidentiality; the broker-dealer's ability to provide
access to new issues; the broker-dealer's ability to provide support when
placing a difficult trade; the financial condition of the broker-dealer; and
whether the broker-dealer has the infrastructure and operational capabilities to
execute and settle the trade. The Advisor seeks to evaluate the overall
reasonableness of brokerage commissions with commissions charged on comparable
transactions and compares the brokerage commissions (if any) paid by the Funds
to reported commissions paid by others. The Advisor routinely reviews commission
rates, execution and settlement services performed and makes internal and
external comparisons.

Commission rates on transactions in equity securities on US securities exchanges
are subject to negotiation. Commission rates on transactions in equity
securities on foreign securities exchanges are generally fixed. Purchases and
sales of fixed-income securities and certain over-the-counter securities are
effected on a net basis, without the payment of brokerage commissions.
Transactions in fixed income and certain over-the-counter securities are
generally placed by the Advisor with the principal market makers for these
securities unless the Advisor reasonably believes more favorable results are
available elsewhere. Transactions with dealers serving as market makers reflect
the spread between the bid and asked prices. Purchases of underwritten issues
will include an underwriting fee paid to the underwriter. Money market
instruments are normally purchased in principal transactions directly from the
issuer or from an underwriter or market maker.

It is likely that the broker-dealers selected based on the considerations
described in this section will include firms that also sell shares of the Funds
to their customers. However, the Advisor does not consider sales of shares of
the Funds as a factor in the selection of broker-dealers to execute portfolio
transactions for the Funds and, accordingly, has implemented policies and
procedures reasonably designed to prevent its traders from considering sales of
shares of the Funds as a factor in the selection of broker-dealers to execute
portfolio transactions for the Funds.

The Advisor is permitted by Section 28(e) of the Securities Exchange Act of
1934, as amended ("1934 Act"), when placing portfolio transactions for a Fund,
to cause the Fund to pay brokerage commissions in excess of that which another
broker-dealer might charge for executing the same transaction in order to obtain
research and brokerage services if the Advisor determines that such commissions
are reasonable in relation to the overall services provided. The Advisor may
from time to time, in reliance on Section 28(e) of the 1934 Act, execute
portfolio transactions with broker-dealers that provide research and brokerage
services to the Advisor. Consistent with the Advisor's policy regarding best
execution, where more than one broker is believed to be capable of providing
best execution for a particular trade, the Advisor may take into consideration
the receipt of research and brokerage services in selecting the broker-dealer to
execute the trade. Although certain research and brokerage services from
broker-dealers may be useful to a Fund and to the Advisor, it is the opinion of
the Advisor that such information only supplements its own research effort since
the information must still be analyzed, weighed and reviewed by the Advisor's
staff. To the extent that research and brokerage services of value are received
by the Advisor, the Advisor may avoid expenses that it might otherwise incur.
Research and brokerage services received from a broker-dealer may be useful to
the Advisor and its affiliates in providing investment management services to
all or some of its clients, which includes a Fund. Services received from
broker-dealers that executed securities transactions for a Portfolio will not
necessarily be used by the Advisor specifically to service such Fund.

Research and brokerage services provided by broker-dealers may include, but are
not limited to, information on the economy, industries, groups of securities,
individual companies, statistical information, accounting and tax law
interpretations, political developments, legal developments affecting portfolio
securities, technical market action, pricing and appraisal services, credit
analysis, risk measurement analysis, performance analysis and measurement and
analysis of corporate responsibility issues. Research and brokerage services are
typically received in the form of written or electronic reports, access to
specialized financial publications, telephone contacts and personal meetings
with security analysts, but may also be provided in the form of access to
various computer software and meetings arranged with corporate and industry
representatives.

The Advisor may also select broker-dealers and obtain from them research and
brokerage services that are used in connection with executing trades provided
that such services are consistent with interpretations under Section 28(e) of
the 1934 Act. Typically, these services take the form of computer software
and/or electronic communication services used by the Advisor to facilitate
trading activity with those broker-dealers.

Research and brokerage services may include products obtained from third parties
if the Advisor determines that such product or service constitutes brokerage and
research as defined in Section 28(e) and interpretations thereunder. Currently,
it is the Advisor's policy that Sub-Advisors may not execute portfolio
transactions on behalf of the Funds to obtain third party research and brokerage
services. The Advisor may, in the future, change this policy. Regardless,
certain Sub-Advisors may, as matter of internal policy, limit or preclude third
party research and brokerage services.

The Advisor may use brokerage commissions to obtain certain brokerage products
or services that have a mixed use (i.e., it also serves a function that does not
relate to the investment decision-making process). In those circumstances, the
Advisor will make a good faith judgment to evaluate the various benefits and
uses to which it intends to put the mixed use product or service and will pay
for that portion of the mixed use product or service that it reasonably believes
does not constitute research and brokerage services with its own resources.

DIMA will monitor regulatory developments and market practice in the use of
client commissions to obtain research and brokerage services and may adjust its
portfolio transactions policies in response thereto.

Investment decisions for each Fund and for other investment accounts managed by
the Advisor are made independently of each other in light of differing
conditions. However, the same investment decision may be made for two or more of
such accounts. In such cases, simultaneous transactions are inevitable. To the
extent permitted by law, the Advisor may aggregate the securities to be sold or
purchased for a Fund with those to be sold or purchased for other accounts in
executing transactions. Purchases or sales are then averaged as to price and
commission and allocated as to amount in a manner deemed equitable to each
account. While in some cases this practice could have a detrimental effect on
the price paid or received by, or on the size of the position obtained or
disposed of for, the Fund, in other cases it is believed that the ability to
engage in volume transactions will be beneficial to the Fund.

DIMA and its affiliates and the Funds' management team manage other mutual funds
and separate accounts, some of which use short sales of securities as a part of
its investment strategy. The simultaneous management of long and short
portfolios creates potential conflicts of interest including the risk that short
sale activity could adversely affect the market value of the long positions (and
vice versa), the risk arising from sequential orders in long and short
positions, and the risks associated with receiving opposing orders at the same
time.

DIMA has adopted procedures that it believes are reasonably designed to mitigate
these potential conflicts of interest. Incorporated in the procedures are
specific guidelines developed to ensure fair and equitable treatment for all
clients. DIMA and the investment team have established monitoring procedures and
a protocol for supervisory reviews, as well as compliance oversight to ensure
that potential conflicts of interest relating to this type of activity are
properly addressed.

Deutsche Bank AG or one of its affiliates (or in the case of a Sub-Advisor, the
Sub-Advisor or one of its affiliates) may act as a broker for the Funds and
receive brokerage commissions or other transaction-related compensation from the
Funds in the purchase and sale of securities, options or futures contracts when,
in the judgment of the Advisor, and in accordance with procedures approved by
the Funds' Boards, the affiliated broker will be able to obtain a price and
execution at least as favorable as those obtained from other qualified brokers
and if, in the transaction, the affiliated broker charges the Funds a rate
consistent with that charged to comparable unaffiliated customers in similar
transactions.

Money market instruments are normally purchased in principal transactions
directly from the issuer or from an underwriter or market maker. There usually
are no brokerage commissions paid by a fund for such purchases. During the last
three fiscal years each fund paid no portfolio brokerage commissions. Purchases
from underwriters will include a commission or concession paid by the issuer to
the underwriter, and purchases from dealers serving as market makers will
include the spread between the bid and asked prices.


During the last three fiscal years, the Funds paid the following amounts in
brokerage commissions:

<TABLE>
<CAPTION>
Fund                                               2008               2007               2006
----                                               ----               ----               ----
<S>                                              <C>                   <C>                <C>
DWS Life Compass Retirement Fund                 $275.26               $0                 $0
DWS LifeCompass 2015 Fund                        $507.99               $0                 $0
DWS LifeCompass 2020 Fund                        $887.14               $0                 $0
DWS LifeCompass 2030 Fund                        $103.60               $0                 $0
DWS LifeCompass 2040 Fund                        $167.91               $0                 $0
</TABLE>

Securities of Regular Broker-Dealers. Each Fund is required to identify any
securities of its "regular brokers or dealers" (as such term is defined in the
1940 Act) that each Fund has acquired during the most recent fiscal year. As of
August 31, 2008, each Fund did not hold securities of its regular brokers or
dealers.


Portfolio Turnover

Portfolio turnover rate is defined by the SEC as the ratio of the lesser of
sales or purchases to the monthly average value of such securities owned during
the year, excluding all securities whose remaining maturities at the time of
acquisition were one year or less.

Higher levels of activity by a fund result in higher transaction costs and may
also result in taxes on realized capital gains to be borne by the fund's
shareholders. Purchases and sales are made whenever necessary, in the Advisor's
discretion, to meet a fund's objective.

Portfolio turnover rates for the two most recent fiscal periods are as follows:


<TABLE>
<CAPTION>
                                                                         FY 2008        FY 2007          FY 2006
                                                                        Portfolio      Portfolio        Portfolio
                                                         Fiscal Year    Turnover     Turnover Rate   Turnover Rate
Name of Fund                                                 End       Rate (%)(1)    (%)(1),(2)        (%)(2)
------------                                                 ---       -----------    ----------        ------
<S>                                                          <C>            <C>            <C>              <C>
DWS LifeCompass Retirement Fund                              8/31           48             21               69
DWS LifeCompass 2015 Fund                                    8/31           29             21               52
DWS LifeCompass 2020 Fund                                    8/31           31             22               59
DWS LifeCompass 2030 Fund                                    8/31           30             20               63
DWS LifeCompass 2040 Fund                                    8/31        17**(b)          NA(a)           NA(a)
DWS Blue Chip Fund                                          10/31         NA(3)            266             259
DWS Capital Growth Fund                                      9/30         NA(3)            28               15
DWS Commodity Securities Fund                                6/30          145             117              80
DWS Disciplined Market Neutral Fund                          8/31          967         1,009**(c)         NA(c)
DWS Disciplined Long/Short Growth Fund                       4/30          450          229**(d)          NA(d)
DWS Disciplined Long/Short Value Fund                        4/30          485          227**(d)          NA(d)
DWS Large Cap Value Fund                                    11/30         NA(3)            86               76
DWS Emerging Markets Equity Fund                            10/31         NA(3)            98              145
DWS Emerging Markets Fixed Income Fund                      10/31         NA(3)            173             224
DWS Equity 500 Index Fund                                   12/31         NA(3)             5               4
DWS Communications Fund                                     12/31         NA(3)            39               27
DWS Core Fixed Income Fund                                  10/31         NA(3)          185(e)           166(e)
DWS Floating Rate Plus Fund                                  5/31        25**(f)          NA(f)           NA(a)
DWS Global Thematic Fund                                     8/31          202             151             143
DWS Global Bond Fund                                        10/31         NA(3)            237             183
DWS Global Opportunities Fund                               10/31         NA(3)            21               29
DWS GNMA Fund                                                9/30         NA(3)          189(e)           81(e)
DWS Gold & Precious Metals Fund                             10/31         NA(3)            52               69
DWS Europe Equity Fund                                      10/31         NA(3)            105             203
DWS Growth & Income Fund                                     9/30         NA(3)            271             101
DWS Health Care Fund                                         5/31           27             31               56
DWS High Income Fund                                         9/30         NA(3)            66              100
DWS High Income Plus Fund                                   10/31         NA(3)            75              100
DWS Dreman Concentrated Value Fund                          11/30         NA(3)            58               38
DWS Dreman High Return Equity Fund                          11/30         NA(3)            27               32
DWS Dreman Mid Cap Value Fund                               11/30         NA(3)            82               34
DWS Core Plus Income Fund                                    1/31         140(e)         150(e)           184(e)
DWS Inflation Protected Plus Fund                            9/30         NA(3)            167             331
DWS International Fund                                       8/31          133             104              76
DWS International Select Equity Fund                        10/31         NA(3)            119            140(g)
DWS International Value Opportunities Fund                   8/31          197             127            7**(h)
DWS Japan Equity Fund                                        8/31          105             120             105
DWS Large Company Growth Fund                                7/31           43             23               16
DWS Large Cap Value Fund                                    11/30         NA(3)            86               76
DWS Latin America Equity Fund                               10/31         NA(3)            62               70
DWS Micro Cap Fund                                           9/30         NA(3)            73              100
DWS Mid Cap Growth Fund                                      9/30         NA(3)            56               53
DWS Money  Market  Prime  Series - DWS Cash  Investment      7/31           --               --               --
     Trust (4)
DWS Money Market Series -- Institutional Shares (4)          12/31           --               --               --
DWS RREEF Global Real Estate Securities Fund                12/31         NA(3)            71            28**(h)
DWS RREEF Real Estate Securities Fund                       12/31         NA(3)            81               60
DWS S&P 500 Index Fund                                      12/31         NA(3)             5               4
DWS Enhanced S&P 500 Index Fund                              2/28           51             81               85
DWS Short Duration Fund                                     10/31         NA(3)            230             198
DWS Short Duration Plus Fund                                 9/30         NA(3)            57             129(i)
DWS Small Cap Growth Fund                                    9/30         NA(3)           64(g)             74
DWS Small Cap Core Fund                                      9/30         NA(3)            202             205
DWS Dreman Small Cap Value Fund                             11/30         NA(3)            60               48
DWS Technology Fund                                         10/31         NA(3)            79               58
DWS U.S. Bond Index Fund                                    12/31         NA(3)           35(e)           25(j)
DWS RREEF Global Infrastructure Fund                        12/31        NA(3)(k)         NA(a)           NA(a)

</TABLE>

(1)      As of each Underlying DWS Fund's most recent fiscal reporting period.

(2)      As of each Underlying DWS Fund's previous fiscal reporting period.


(3)      Fund has not yet filed its fiscal year 2008 financial information,
         therefore information for fiscal year 2007 and 2006 are included.


(4)      DWS Money Market Series -- Institutional Shares is a money market fund
         and by definition does not have a portfolio turnover rate.



**       Not Annualized

(a)      Fund has not commenced operations as of the date.


(b)      Commenced operations on November 15, 2007.

(c)      Commenced operations on October 16, 2006.

(d)      Commenced operations on November 16, 2006.

(e)      The portfolio turnover rates including mortgage dollar roll
         transactions were 381% and 289% for the periods ended September 30,
         2007 and 2006 for DWS GNMA Fund; 150%, 151% and 196% for the years
         ended January 31, 2008, 2007 and 2006 for DWS Core Plus Income Fund;
         194% and 173% for the years ended October 31, 2007 and 2006 for DWS
         Core Fixed Income Fund and 53% for the year ended December 31, 2007 for
         DWS U.S. Bond Index Fund.

(f)      Commenced operations on June 29, 2007.




(g)      Excludes portfolio securities delivered as a result of processing
         redemption in-kind transactions.




(h)      Commenced operations on July 5, 2006.

(i)      On January 13, 2006, the Scudder Limited-Duration Plus Portfolio was
         closed. This ratio includes the purchase and sale of portfolio
         securities of the DWS Short Duration Plus Fund as a stand-alone fund in
         addition to the Scudder Limited-Duration Plus Portfolio.

(j)      On January 13, 2006, the U.S. Bond Index Portfolio was closed. The
         ratio includes the purchase and sale of portfolio securities of the DWS
         U.S. Bond Index Fund as a stand-alone fund in addition to the U.S. Bond
         Index Portfolio.

(k)      Commenced operations on June 25, 2008.


For certain Underlying DWS Funds, the increase in portfolio turnover rates for
the most recent fiscal year was due to the general market conditions and
increased volatility.

                        PURCHASE OR REDEMPTION OF SHARES

General Information

Policies and procedures affecting transactions in Fund shares can be changed at
any time without notice, subject to applicable law. Transactions may be
contingent upon proper completion of application forms and other documents by
shareholders and their receipt by the Fund's agents. Transaction delays in
processing (and changing account features) due to circumstances within or beyond
the control of the Fund and its agents may occur. Shareholders (or their
financial service firms) are responsible for all losses and fees resulting from
bad checks, cancelled orders or the failure to consummate transactions effected
pursuant to instructions reasonably believed to be genuine.

If a distribution check is returned to the Fund, or its agents, as
undeliverable; such distribution will be reinvested in shares of the same Fund
and class at the next determined net asset value after receipt by the Fund, or
its agents, of the returned distribution check.


Orders will be confirmed at a price based on the net asset value of the Fund
next determined after receipt in good order by DIDI of the order accompanied by
payment. However, orders received by dealers or other financial services firms
prior to the determination of net asset value and received in good order by DIDI
prior to the determination of net asset value will be confirmed at a price based
on the net asset value next determined after receipt by DIDI ("trade date").




Certificates. Share certificates will not be issued. Share certificates now in a
shareholder's possession may be sent to the Transfer Agent for cancellation and
book-entry credit to such shareholder's account. Certain telephone and other
procedures require book-entry holdings. Shareholders with outstanding
certificates bear the risk of loss.


Additional Minimum Balance Policies. For fiduciary accounts such as IRAs, and
custodial accounts such as Uniform Gifts to Minor Act and Uniform Transfers to
Minor Act accounts, the minimum balance is $1,000 for Class S. A shareholder may
open an account with at least $1,000 ($500 for fiduciary/custodial accounts), if
an automatic investment plan (AIP) of $50/month is established. DWS Investments
group retirement plans and certain other accounts have similar or lower minimum
share balance requirements.

Shareholders with a combined household account balance in any of the DWS Funds
of $100,000 or more, as well as group retirement and certain other accounts,
will not be subject to an automatic redemption.

Fiduciary (e.g., IRA or Roth IRA) and custodial accounts (e.g., UGMA or UTMA)
with balances below $1,000 are subject to automatic redemption following 60
days' written notice to applicable shareholders.

Use of Financial Services Firms. Investment dealers and other firms provide
varying arrangements for their clients to purchase and redeem a Fund's shares,
including higher minimum investments, and may assess transaction or other fees.
Firms may arrange with their clients for other investment or administrative
services. Such firms may independently establish and charge additional amounts
to their clients for such services. Firms also may hold the Fund's shares in
nominee or street name as agent for and on behalf of their customers. In such
instances, the Fund's Transfer Agent will have no information with respect to or
control over the accounts of specific shareholders. Such shareholders may obtain
access to their accounts and information about their accounts only from their
firm. Certain of these firms may receive compensation from the Fund through the
Shareholder Service Agent for record-keeping and other expenses relating to
these nominee accounts. In addition, certain privileges with respect to the
purchase and redemption of shares or the reinvestment of dividends may not be
available through such firms. Some firms may participate in a program allowing
them access to their clients' accounts for servicing including, without
limitation, transfers of registration and dividend payee changes; and may
perform functions such as generation of confirmation statements and disbursement
of cash dividends. Such firms, including affiliates of DIDI, may receive
compensation from a Fund through the Shareholder Service Agent for these
services.


The Funds have authorized one or more financial service institutions, including
certain members of the Financial Industry Regulatory Authority ("FINRA") other
than the Distributor ("financial institutions"), to accept purchase and
redemption orders for each Fund's shares. Such financial institutions may also
designate other parties, including plan administrator intermediaries, to accept
purchase and redemption orders on each Fund's behalf. Orders for purchases or
redemptions will be deemed to have been received by a Fund when such financial
institutions or, if applicable, their authorized designees accept the orders.
Subject to the terms of the contract between a Fund and the financial
institution, ordinarily orders will be priced at each Fund's net asset value
next computed after acceptance by such financial institution or its authorized
designees and accepted by a Fund. Further, if purchases or redemptions of each
Fund's shares are arranged and settlement is made at an investor's election
through any other authorized financial institution, that financial institution
may, at its discretion, charge a fee for that service. The Board of Trustees and
the Distributor, also a Fund's principal underwriter, each has the right to
limit the amount of purchases by, and to refuse to sell to, any person. The
Trustees and the Distributor may suspend or terminate the offering of shares of
a Fund at any time for any reason.


DIDI has adopted an Incentive Plan (the "Plan") covering wholesalers that are
regional vice presidents ("DWS Investments Wholesalers"). Generally, DWS
Investments Wholesalers market shares of the DWS funds to financial advisors,
who in turn may recommend that investors purchase shares of a DWS fund. The Plan
is an incentive program that combines a monthly incentive component with a
quarterly strategic bonus component. Under the Plan, DWS Investments Wholesalers
will receive a monetary monthly incentive based on the amount of sales generated
from their marketing of the funds, and that incentive will differ depending on
the product category of the fund. Each fund is assigned to one of three product
categories -- "Strategic," "Tactical" or "all other funds" -- taking into
consideration, among other things, the following criteria, where applicable:

o        The Fund's consistency with DWS Investments' branding and long-term
         strategy;
o        The Fund's competitive performance;
o        The Fund's Morningstar rating;
o        The length of time the Fund's Portfolio Managers have managed the
         Fund/Strategy;
o        Market size for the fund category;
o        The Fund's size, including sales and redemptions of the Fund's shares

This information and other factors are presented to a committee comprised of
representatives from various groups within DWS Investments, who review on a
quarterly basis the funds assigned to each product category described above, and
make any changes to those assignments at that time. No one factor, whether
positive or negative, determines a fund's placement in a given category; all
these factors together are considered, and the designation of funds in the
Strategic and Tactical categories represents management's judgment based on the
above criteria. In addition, management may consider a fund's profile over the
course of several review periods before making a change to its category
assignment. These category assignments will be posted quarterly to the DWS
funds' Web site at www.dws-investments.com, approximately one month after the
end of each quarter. DWS Investments Wholesalers receive the highest
compensation for Strategic funds, less for Tactical funds and the lowest for all
other funds. The level of compensation among these categories may differ
significantly.

The prospect of receiving, or the receipt of, additional compensation by a DWS
Investments Wholesaler under the Plan may provide an incentive to favor
marketing the Strategic or Tactical funds over all other funds. The Plan,
however, will not change the price that investors pay for shares of a fund. The
DWS Investments Compliance Department monitors DWS Investments Wholesaler sales
and other activity in an effort to detect unusual activity in the context of the
compensation structure under the Plan. However, investors may wish to take the
Plan and the product category of the fund into account when considering
purchasing a fund or evaluating any recommendations relating to fund shares.




Telephone and Electronic Transaction Procedures. Shareholders have various
telephone, Internet, wire and other electronic privileges available. A Fund or
its agents will not be liable for any losses, expenses or costs arising out of
fraudulent or unauthorized instructions pursuant to these privileges if the Fund
or its agents reasonably believe, based upon reasonable verification procedures,
that the instructions were genuine. Verification procedures include recording
instructions, requiring certain identifying information before acting upon
instructions and sending written confirmations. During periods when it is
difficult to contact the Shareholder Service Agent, it may be difficult to use
telephone, wire and other privileges.

QuickBuy and QuickSell. QuickBuy and QuickSell permits the transfer of money via
the Automated Clearing House System (minimum $50, maximum $250,000) from or to a
shareholder's bank, savings and loan, or credit union account in connection with
an additional purchase or redemption of Fund shares. Shares purchased by check
or through QuickBuy and QuickSell or Direct Deposit may not be redeemed under
this privilege until such shares have been owned for at least 10 calendar days.
QuickBuy and QuickSell cannot be used with passbook savings accounts or for
certain tax-deferred plans.


Dividend Payment Option. Investors may have dividends and distributions
automatically deposited to their predesignated bank account through DWS
Investments' Dividend Payment Option request form. Shareholders whose
predesignated checking account of record is with a member bank of Automated
Clearing House Network (ACH) can have income and capital gain distributions
automatically deposited to their personal bank account usually within three
business days after the Fund pays its distribution. A Dividend Payment Option
request form can be obtained by visiting our Web site at:
www.dws-investments.com or calling 1-800-728-3337. Confirmation Statements will
be mailed to shareholders as notification that distributions have been
deposited.

Tax-Sheltered Retirement Plans. The Shareholder Service Agent provides
retirement plan services and documents and DIDI can establish investor accounts
in any of the following types of retirement plans:


o        Traditional, Roth and Education IRAs. This includes Savings Incentive
         Match Plan for Employees of Small Employers ("SIMPLE"), Simplified
         Employee Pension Plan ("SEP") IRA accounts and prototype documents.

o        403(b)(7) Custodial Accounts. This type of plan is available to
         employees of most non-profit organizations.

o        Prototype money purchase pension and profit-sharing plans may be
         adopted by employers.

Brochures describing these plans as well as model defined benefit plans, target
benefit plans, 457 plans, 401(k) plans, simple 401(k) plans and materials for
establishing them are available from the Shareholder Service Agent upon request.
Additional fees and transaction policies and procedures may apply to such plans.
Investors should consult with their own tax advisors before establishing a
retirement plan.

Purchases

The Funds reserve the right to withdraw all or any part of the offering made by
their prospectuses and to reject purchase orders for any reason. Also, from time
to time, a Fund may temporarily suspend the offering of any class of its shares
to new investors. During the period of such suspension, persons who are already
shareholders of such class of such Fund may be permitted to continue to purchase
additional shares of such class and to have dividends reinvested.

To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account. For
more information, please see "Policies You Should Know About" in the fund
prospectus.

A Fund may waive the minimum for purchases by trustees, directors, officers or
employees of the Fund or the Advisor and its affiliates.

Clients having a regular investment counsel account with the Advisor or its
affiliates and members of their immediate families, officers and employees of
the Advisor or of any affiliated organization and members of their immediate
families, members of FINRA and banks may, if they prefer, subscribe initially
for at least $2,500 for Class S through DWS Investor Services, Inc. by letter,
fax, or telephone.

Class S shares of the Fund will generally not be available to new investors.

Eligible Class S Investors.

Only certain investors are eligible to buy Class S shares, as described in
greater detail below.


A.        The following investors may purchase Class S shares of DWS Funds
          either (i) directly from DWS Investments Distributors, Inc. ("DIDI"),
          the Fund's principal underwriter; or (ii) through an intermediary
          relationship with a financial services firm established with respect
          to the DWS Funds as of December 31, 2004.


          1.      Existing shareholders of Class S shares of any DWS Fund as of
                  December 31, 2004, and household members residing at the same
                  address.

          2.      Shareholders of Class S of any DWS Fund who became Class S
                  shareholders in connection with the consolidation of Class
                  AARP and Class S on July 17, 2006 and household members
                  residing at the same address.

          3.      Shareholders who have owned Class S shares continuously since
                  December 31, 2004 and household members residing at the same
                  address may open new accounts for Class S shares of any DWS
                  Fund.

          4.      Any participant who has owned Class S shares of any DWS Fund
                  through an employee sponsored retirement, employee stock,
                  bonus, pension or profit sharing plan continuously since
                  December 31, 2004 may open a new individual account for Class
                  S shares of any DWS Fund.

          5.      Any participant who owns Class S shares of any DWS Fund
                  through a retirement, employee stock, bonus, pension or profit
                  sharing plan may complete a direct rollover to an IRA account
                  that will hold Class S shares. This applies to individuals who
                  begin their retirement plan investments with a DWS Fund at any
                  time, including after December 31, 2004.

          6.      Officers, Fund Trustees and Directors, and full-time employees
                  and their family members, of the Advisor and its affiliates.


          7.      Class S shares are available to any accounts managed by the
                  Advisor, any advisory products offered by the Advisor or DIDI
                  and to DWS Target Date Series or other fund of funds managed
                  by the Advisor or its affiliates.


          8.      Shareholders of Class S of DWS Emerging Markets Equity Fund
                  who became shareholders of the fund in connection with the
                  fund's acquisition of Scudder New Asia Fund, Inc. on April 17,
                  2006.

          9.      Shareholders of Class S of any DWS Fund who became Class S
                  shareholders in connection with the consolidation of Class M
                  and Class S on August 18, 2006 and household members residing
                  at the same address.

          10.     Shareholders of Class S of any DWS Fund who became Class S
                  shareholders in connection with the renaming or conversion of
                  Investment Class to Class S on October 23, 2006.

B. The following additional investors may purchase Class S shares of DWS Funds.

          1.      Broker-dealers, banks and registered investment advisors
                  ("RIAs") may purchase Class S shares in connection with a
                  comprehensive or "wrap" fee program or other fee based
                  program.

          2.      Any group retirement, employee stock, bonus, pension or
                  profit-sharing plans.

          3.      Persons who purchase shares as part of an investment only
                  placement in a 529 College Savings Plan.

          4.      Persons who purchase shares through a Health Savings Account
                  or a Voluntary Employees' Benefit Association ("VEBA") Trust.


DIDI may, at its discretion, require appropriate documentation that shows an
investor is eligible to purchase Class S shares.


Revenue Sharing


In light of recent regulatory developments, the Advisor, the Distributor and
their affiliates have undertaken to furnish certain additional information below
regarding the level of payments made by them to selected affiliated and
unaffiliated brokers, dealers, participating insurance companies or other
financial intermediaries ("financial advisors") in connection with the sale
and/or distribution of Fund shares or the retention and/or servicing of
investors and Fund shares ("revenue sharing").

The Advisor, the Distributor and/or their affiliates may pay additional
compensation, out of their own assets and not as an additional charge to each
Fund, to financial advisors in connection with the sale and/or distribution of
Fund shares or the retention and/or servicing of Fund investors and Fund shares.
Such revenue sharing payments are in addition to any distribution or service
fees payable under any Rule 12b-1 or service plan of any fund, any record
keeping/sub-transfer agency/networking fees payable by each Fund (generally
through the Distributor or an affiliate) and/or the Distributor to certain
financial advisors for performing such services and any sales charges,
commissions, non-cash compensation arrangements expressly permitted under
applicable rules of FINRA or other concessions described in the fee table or
elsewhere in the Prospectuses or the SAI as payable to all financial advisors.
For example, the Advisor, the Distributor and/or their affiliates may compensate
financial advisors for providing each Fund with "shelf space" or access to a
third party platform or fund offering list, or other marketing programs
including, without limitation, inclusion of each Fund on preferred or
recommended sales lists, mutual fund "supermarket" platforms and other formal
sales programs; granting the Distributor access to the financial advisor's sales
force; granting the Distributor access to the financial advisor's conferences
and meetings; assistance in training and educating the financial advisor's
personnel; and, obtaining other forms of marketing support. The level of revenue
sharing payments made to financial advisors may be a fixed fee or based upon one
or more of the following factors: gross sales, current assets and/or number of
accounts of each Fund attributable to the financial advisor, the particular fund
or fund type or other measures as agreed to by the Advisor, the Distributor
and/or their affiliates and the financial advisors or any combination thereof.
The amount of these payments is determined at the discretion of the Advisor, the
Distributor and/or their affiliates from time to time, may be substantial, and
may be different for different financial advisors based on, for example, the
nature of the services provided by the financial advisor.

The Advisor, the Distributor and/or their affiliates currently make revenue
sharing payments from their own assets in connection with the sale and/or
distribution of DWS Fund shares, or the retention and/or servicing of investors,
to financial advisors in amounts that generally range from .01% up to .50% of
assets of the Fund serviced and maintained by the financial advisor, .05% to
..25% of sales of the Fund attributable to the financial advisor, a flat fee of
$13,350 up to $500,000, or any combination thereof. These amounts are annual
figures typically paid on a quarterly basis and are subject to change at the
discretion of the Advisor, the Distributor and/or their affiliates. Receipt of,
or the prospect of receiving, this additional compensation, may influence your
financial advisor's recommendation of this Fund or of any particular share class
of the Fund. You should review your financial advisor's compensation disclosure
and/or talk to your financial advisor to obtain more information on how this
compensation may have influenced your financial advisor's recommendation of this
Fund.

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

As of the date hereof, each Fund has been advised that the Advisor, the
Distributor and their affiliates expect that the following firms will receive
revenue sharing payments at different points during the coming year as described
above:

Channel: Broker-Dealers and Financial Advisors
----------------------------------------------
AIG Advisors Group
Ameriprise
Cadaret, Grant & Co. Inc.
Capital Analyst, Incorporated
Citigroup Global Markets, Inc. (dba Smith Barney)
Commonwealth Equity Services, LLP (dba Commonwealth Financial Network)
Deutsche Bank Group
Ensemble Financial Services
First Clearing/Wachovia Securities
Fiserv Trust Company
HD Vest Investment Securities, Inc.
ING Group
John Hancock Distributors LLC
LPL Financial
M.L. Stern & Co.
Meridien Financial Group
Merrill Lynch, Pierce, Fenner & Smith Inc.
Morgan Stanley
Oppenheimer & Co., Inc.
Raymond James & Associates
Raymond James Financial Services
RBC Dain Rauscher, Inc
Securities America, Inc.
UBS Financial Services
Wachovia Securities
Wells Fargo Investments, LLC

Channel: Cash Product Platform
------------------------------
Allegheny Investments LTD
Bank of New York (Hare & Co.)
Bear, Stearns Securities Corp.
Brown Brothers Harriman
Brown Investment Advisory & Trust Company
Cadaret Grant & Co.
Chicago Mercantile Exchange
D.A. Davidson & Company
Deutsche Bank Group
Emmett A. Larkin Company
Fiduciary Trust Co. - International
First Southwest Company
Huntleigh Securities
Lincoln Investment Planning
LPL Financial
Mellon Financial Markets LLC
Penson Financial Services
Pershing Choice Platform
ProFunds Distributors, Inc.
Ridge Clearing & Outsourcing Solutions
Robert W. Baird & Co.
Romano Brothers and Company
SAMCO Capital Markets
Smith Moore & Company
Sungard Institutional Brokerage Inc.
US Bancorp
UBS Financial Services
William Blair & Company

Channel: Third Party Insurance Platforms
----------------------------------------
Allstate Life Insurance Company of New York
Ameritas Life Insurance Group
Annuity Investors Life Insurance Company
Columbus Life Insurance Company
Commonwealth Annuity and Life Insurance Company
Companion Life Insurance Company
Connecticut General Life Insurance Company
Farmers New World Life Insurance Company
Fidelity Security Life Insurance Company
First Allmerica Financial Life Insurance Company
First Great West Life and Annuity Company
Genworth Life Insurance Company of New York
Genworth Life and Annuity Insurance Company
Great West Life and Annuity Insurance Company
Hartford Life Insurance Company
Integrity Life Insurance Company
John Hancock Life Insurance companies
Kemper Investors Life Insurance Company
Lincoln Benefit Life Insurance Company
Lincoln Life & Annuity Company of New York
Lincoln National Life Insurance Company
Massachusetts Mutual Life Insurance Group
MetLife Group
Minnesota Life Insurance Company
National Life Insurance Company
National Integrity Life Insurance Company
Nationwide Group
New York Life Insurance and Annuity Corporation
Phoenix Life Insurance Company
Protective Life Insurance
Provident Mutual Life Insurance
Prudential Insurance Company of America
Sun Life Group
Symetra Life Insurance Company
Transamerica Life Insurance Company
Union Central Life Insurance Company
United of Omaha Life Insurance Company
United Investors Life Insurance Company
Western Southern Life Assurance Company

Any additions, modifications or deletions to the financial advisors identified
above that have occurred since the date hereof are not reflected.

The Advisor, the Distributor or their affiliates may enter into additional
revenue sharing arrangements or change or discontinue existing arrangements with
financial advisors at any time without notice.

The prospect of receiving, or the receipt of additional compensation or
promotional incentives described above by financial advisors may provide such
financial advisors and/or their salespersons with an incentive to favor sales of
shares of the DWS funds or a particular DWS fund over sales of shares of mutual
funds (or non-mutual fund investments) with respect to which the financial
advisor does not receive additional compensation or promotional incentives, or
receives lower levels of additional compensation or promotional incentives.
Similarly, financial advisors may receive different compensation or incentives
that may influence their recommendation of any particular share class of the
Fund or of other funds. These payment arrangements, however, will not change the
price that an investor pays for Fund shares or the amount that the Fund receives
to invest on behalf of an investor and will not increase Fund expenses. You may
wish to take such payment arrangements into account when considering and
evaluating any recommendations relating to Fund shares and you should discuss
this matter with your financial advisor and review your financial advisor's
disclosures.

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





Automatic Investment Plan. A shareholder may purchase shares of the Fund through
an automatic investment program. With the Direct Deposit Purchase Plan ("Direct
Deposit"), investments are made automatically (minimum $1,000 and maximum
$250,000 for initial investments and a minimum of $50 and maximum $250,000 for
subsequent investments) from the shareholder's account at a bank, savings and
loan or credit union into the shareholder's Fund account. Termination by a
shareholder will become effective within thirty days after the Shareholder
Service Agent has received the request. The Fund may immediately terminate a
shareholder's Plan in the event that any item is unpaid by the shareholder's
financial institution.





Payroll Investment Plans. A shareholder may purchase shares through Payroll
Direct Deposit or Government Direct Deposit. Under these programs, all or a
portion of a shareholder's net pay or government check is invested each payment
period. A shareholder may terminate participation in these programs by giving
written notice to the shareholder's employer or government agency, as
appropriate. (A reasonable time to act is required.) The Funds are not
responsible for the efficiency of the employer or government agency making the
payment or any financial institutions transmitting payments.


Minimum Subsequent Investment Policies. For current shareholders there is a $50
minimum investment requirement for subsequent investments in the fund. There is
no minimum subsequent investment requirement for investments on behalf of
participants in certain fee-based and wrap programs offered through financial
intermediaries approved by the Advisor.


Expedited Purchase Procedures for Existing Shareholders. Shareholders of other
DWS funds who have submitted an account application and have certified a tax
identification number, clients having a regular investment counsel account with
the Advisor or its affiliates and members of their immediate families, officers
and employees of the Advisor or of any affiliated organization and their
immediate families, members of FINRA, and banks may open an account by wire by
calling (800) 728-3337 for instructions. The investor must send a duly completed
and signed application to the Fund promptly. A subsequent purchase order may be
placed by established shareholders (except by DWS Investments Individual
Retirement Account (IRA), DWS Simplified Profit Sharing and Money Purchase
Pension Plans, DWS Investments 401(k) and DWS Investments 403(b) Plan holders),
members of FINRA, and banks.




It is our policy to offer purchase privileges to current or former directors or
trustees of the Deutsche or DWS mutual funds, employees, their spouses or life
partners and children or step-children age 21 or younger of Deutsche Bank or its
affiliates or a sub-advisor to any fund in the DWS family of funds or a
broker-dealer authorized to sell shares of the funds. Qualified individuals will
generally be allowed to purchase shares in the class with the lowest expense
ratio, usually the Institutional Class shares. If a fund does not offer
Institutional Class shares, these individuals will be allowed to buy Class A
shares at NAV. The funds also reserve the right to waive the minimum account
balance requirement for employee and director accounts. Fees generally charged
to IRA accounts will be charged to accounts of employees and directors.

Redemptions

A Fund may suspend or postpone redemptions as permitted by section 22(e) of the
Investment Company Act.


A request for repurchase (confirmed redemption) may be communicated by a
shareholder through a financial services firm to DIDI, which firms must promptly
submit orders to be effective.


Redemption requests must be unconditional. Redemption requests (and a stock
power for certificated shares) must be duly endorsed by the account holder. As
specified in the prospectus, signatures may need to be guaranteed by a
commercial bank, trust company, savings and loan association, federal savings
bank, member firm of a national securities exchange or other financial
institution permitted by SEC rule. Additional documentation may be required,
particularly from institutional and fiduciary account holders, such as
corporations, custodians (e.g., under the Uniform Transfers to Minors Act),
executors, administrators, trustees or guardians.

If the proceeds of the redemption (prior to the imposition of any contingent
deferred sales charge) are $100,000 or less and the proceeds are payable to the
shareholder of record at the address of record, normally a telephone request or
a written request by any one account holder without a signature guarantee is
sufficient for redemptions by individual or joint account holders, and trust,
executor and guardian account holders, provided the trustee, executor or
guardian is named in the account registration. Other institutional account
holders may exercise this special privilege of redeeming shares by telephone
request or written request without signature guarantee subject to the same
conditions as individual account holders, provided that this privilege has been
pre-authorized by the institutional account holder by written instruction to the
Shareholder Service Agent with signatures guaranteed. This privilege may not be
used to redeem shares held in certificated form and may not be used if the
shareholder's account has had an address change within 15 days of the redemption
request.

Wires. Delivery of the proceeds of a wire redemption of $250,000 or more may be
delayed by a Fund for up to seven days if the Fund or the Shareholder Service
Agent deems it appropriate under then-current market conditions. The ability to
send wires is limited by the business hours and holidays of the firms involved.
The Funds are not responsible for the efficiency of the federal wire system or
the account holder's financial services firm or bank. The account holder is
responsible for any charges imposed by the account holder's firm or bank. To
change the designated account to receive wire redemption proceeds, send a
written request to the Fund's Shareholder Service Agent with signatures
guaranteed as described above or contact the firm through which the Fund shares
were purchased.

Automatic Withdrawal Plan. The owner of $5,000 or more of a class of a Fund's
shares at the offering price (net asset value) may provide for the payment from
the owner's account of any requested dollar amount to be paid to the owner or a
designated payee monthly, quarterly, semiannually or annually. The $5,000
minimum account size is not applicable to IRAs. The minimum periodic payment is
$50. The maximum annual rate at which shares, subject to CDSC may be redeemed is
12% of the net asset value of the account. Shares are redeemed so that the payee
should receive payment approximately the first of the month. Investors using
this Plan must reinvest Fund distributions.

Non-retirement plan shareholders may establish an Automatic Withdrawal Plan (the
"Plan") to receive monthly, quarterly or periodic redemptions from his or her
account for any designated amount of $50 or more. Shareholders may designate
which day they want the automatic withdrawal to be processed. The check amounts
may be based on the redemption of a fixed dollar amount, fixed share amount,
percent of account value or declining balance. The Plan provides for income
dividends and capital gains distributions, if any, to be reinvested in
additional Shares. Shares are then liquidated as necessary to provide for
withdrawal payments. Since the withdrawals are in amounts selected by the
investor and have no relationship to yield or income, payments received cannot
be considered as yield or income on the investment and the resulting
liquidations may deplete or possibly extinguish the initial investment and any
reinvested dividends and capital gains distributions. Requests for increases in
withdrawal amounts or to change the payee must be submitted in writing, signed
exactly as the account is registered, and contain signature guarantee(s). Any
such requests must be received by a Fund's transfer agent ten days prior to the
date of the first automatic withdrawal. An Automatic Withdrawal Plan may be
terminated at any time by the shareholder, the Trust or its agent on written
notice, and will be terminated when all Shares of a Fund under the Plan have
been liquidated or upon receipt by the Trust of notice of death of the
shareholder.

An Automatic Withdrawal Plan request form can be obtained by calling
1-800-728-3337 for Class S.

In-kind Redemptions. A Fund reserves the right to honor any request for
redemption or repurchase by making payment in whole or in part in readily
marketable securities. These securities will be chosen by the Fund and valued as
they are for purposes of computing the Fund's net asset value. A shareholder may
incur transaction expenses in converting these securities to cash.


Checkwriting. All new investors and existing shareholders who apply to State
Street Bank and Trust Company for checks may use them to pay any person,
provided that each check is for at least $100 and not more than $5 million. By
using the checks, the shareholder will receive daily dividend credit on his or
her shares until the check has cleared the banking system. Investors who
purchased shares by check may write checks against those shares only after they
have been on a Fund's book for seven business days. Shareholders who use this
service may also use other redemption procedures. No shareholder may write
checks against certificated shares. A Fund pays the bank charges for this
service. However, each Fund will review the cost of operation periodically and
reserve the right to determine if direct charges to the persons who avail
themselves of this service would be appropriate. Each Fund, DWS Investments
Service Corporation and State Street Bank and Trust Company reserve the right at
any time to suspend or terminate the Checkwriting procedure.


Exchanges

Shareholders may request a taxable exchange of their shares for shares of the
corresponding class of other DWS Funds without imposition of a sales charge,
subject to the provisions below. For purposes of calculating any CDSC, amounts
exchanged retain their original cost and purchase date.


Shares of money market funds that were acquired by purchase (not including
shares acquired by dividend reinvestment) are subject to the applicable sales
charge on exchange. Certain series of DWS Target Fund are available on exchange
only during the offering period for such series as described in the applicable
prospectus. Tax Free Money Fund -- Investment Class, NY Tax-Free Money Fund --
Investment Class, Money Market Fund -- Investment Class, Cash Management Fund
Institutional, Cash Reserves Fund Institutional, Cash Reserve Fund, Inc. Prime
Series, Tax-Exempt California Money Market Fund, Cash Account Trust and
Investors Cash Trust are available on exchange but only through a financial
services firm having a services agreement with DIDI. All exchanges among money
funds must meet applicable investor eligibility and investment requirements.
Exchanges may only be made for funds that are available for sale in the
shareholder's state of residence. Currently, Tax-Exempt California Money Market
Fund is available for sale only in California.





Shareholders must obtain prospectuses of the Funds they are exchanging into from
dealers, other firms or DIDI.


Automatic Exchange Plan. The owner of $1,000 or more of any class of shares of a
DWS Fund may authorize the automatic exchange of a specified amount ($50
minimum) of such shares for shares of the same class of another such DWS Fund.
Exchanges will be made automatically until the shareholder or the Fund
terminates the privilege. Exchanges are subject to the terms and conditions
described above.

                                    DIVIDENDS




Each Fund intends to follow the practice of distributing substantially all of
its investment company taxable income, which includes any excess of net realized
short-term capital gains over net realized long-term capital losses. Each Fund
may follow the practice of distributing the entire excess of net realized
long-term capital gains over net realized short-term capital losses. However,
each Fund may retain all or part of such gain for reinvestment, after paying the
related federal taxes for which shareholders may then be able to claim a credit
against their federal tax liability. If a Fund does not distribute the amount of
capital gain and/or ordinary income required to be distributed by an excise tax
provision of the Code, a Fund may be subject to that excise tax. In certain
circumstances, a Fund may determine that it is in the interest of shareholders
to distribute less than the required amount.

DWS LifeCompass Retirement Fund and DWS LifeCompass 2015 Fund intend to
distribute dividends from their net investment income excluding net short-term
capital gains on a quarterly basis, in March, June, September and December. DWS
LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund
intend to distribute dividends from their net investment incomes excluding
short-term capital gains annually in December. Each Fund intends to distribute
net realized capital gains after utilization of capital loss carryforwards, if
any, in December to prevent application of a federal excise tax. An additional
distribution may be made, if necessary.

Dividends will be reinvested in shares of the same class of a Fund unless
shareholders indicate in writing that they wish to receive them in cash. Each
Fund will reinvest dividend checks (and future dividends) in shares of the same
Fund and class if checks are returned as undeliverable. Dividends and other
distributions of a Fund in the aggregate amount of $10 or less are automatically
reinvested in shares of the Fund unless the shareholder requests in writing that
a check be issued for that particular distribution.

If a shareholder has elected to reinvest any dividends and/or other
distributions, such distributions will be made in shares of that Fund and
confirmations will be mailed to each shareholder. If a shareholder has chosen to
receive cash, a check will be sent. Distributions of investment company taxable
income and net realized capital gains are taxable, whether made in shares of the
Funds or cash.


Each distribution is accompanied by a brief explanation of the form and
character of the distribution. The characterization of distributions on such
correspondence may differ from the characterization for federal tax purposes. In
January of each year each Fund issues to each shareholder a statement of the
federal income tax status of all distributions in the prior calendar year.




Each Fund may at any time vary its foregoing distribution practices and,
therefore, reserves the right from time to time to either distribute or retain
for reinvestment such of its net investment income and its net short-term and
long-term capital gains as its Board determines appropriate under the then
current circumstances. In particular, and without limiting the foregoing, a Fund
may make additional distributions of net investment income or net capital gain
in order to satisfy the minimum distribution requirements contained in the Code.
In any event, each Fund intends to make sufficient distributions of net
investment income and net capital gain to satisfy the minimum distribution
requirements applicable to regulated investment companies under the Code. See
"Taxes" below.


                                      TAXES


The following is intended to be a general summary of certain US federal income
tax consequences of investing in the Funds. It is not intended as a complete
discussion of all such consequences, nor does it purport to deal with all
categories of investors. Investors are therefore advised to consult with their
tax advisors before making an investment in a Fund. The summary is based on the
Code, US Treasury Regulations, and other applicable authority as of the date of
this SAI. These authorities are subject to change by legislative or
administrative action, possibly with retroactive effect.

Taxation of the Funds. Each Fund has elected to be treated as a regulated
investment company ("RIC") under Subchapter M of the Code and has qualified as
such since its inception. Each Fund intends to continue to so qualify in each
taxable year as required under the Code in order to avoid payment of federal
income tax at the Fund level. In order to qualify for the special tax treatment
accorded RICs, each Fund must among other things:


(a)      derive at least 90% of its gross income for each taxable year from (i)
         dividends, interest, payments with respect to certain securities loans,
         and gains from the sale or other disposition of stock, securities or
         foreign currencies, or other income (including but not limited to gains
         from options, futures, or forward contracts) derived with respect to
         its business of investing in such stock, securities, or currencies, and
         (ii) net income derived from interests in "qualified publicly traded
         partnerships" (as defined below);


(b)      diversify its holdings so that, at the end of each quarter of the
         Fund's taxable year, (i) at least 50% of the market value of the Fund's
         total assets is represented by cash and cash items, US Government
         securities, securities of other RICs, and other securities limited in
         respect of any one issuer to a value not greater than 5% of the value
         of the Fund's total assets and not more than 10% of the outstanding
         voting securities of such issuer, and (ii) not more than 25% of the
         value of the Fund's total assets is invested (x) in the securities
         (other than those of the US Government or other RICs) of any one issuer
         or of two or more issuers which the Fund controls and which are engaged
         in the same, similar, or related trades or businesses, or (y) in the
         securities of one or more qualified publicly traded partnerships (as
         defined below); and

(c)      distribute with respect to each taxable year at least 90% of the sum of
         its investment company taxable income (as that term is defined in the
         Code without regard to the deduction for dividends paid -- generally,
         taxable ordinary income and the excess, if any, of net short-term
         capital gains over net long-term capital losses) and net tax-exempt
         interest income (if any), for such year.

In general, for purposes of the 90% gross income requirement described in
paragraph (a) above, income derived from a partnership will be treated as
qualifying income only to the extent such income is attributable to items of
income of the partnership which would be qualifying income if realized directly
by the RIC. However, 100% of the net income derived from an interest in a
"qualified publicly traded partnership" (defined as a partnership (x) interests
in which are traded on an established securities market or readily tradable on a
secondary market or the substantial equivalent thereof, (y) that derives at
least 90% of its income from the passive income sources defined in Code section
7704(d), and (z) that derives less than 90% of its income from the qualifying
income described in paragraph (a)(i) above) will be treated as qualifying
income. In addition, although in general the passive loss rules of the Code do
not apply to RICs, such rules do apply to a RIC with respect to items
attributable to an interest in a qualified publicly traded partnership. In the
case of any investment by a Fund in loan participations, the Fund shall treat
both the financial intermediary and the issuer of the underlying loan as an
issuer for the purposes of meeting the diversification requirement described in
paragraph (b) above. Finally, for purposes of paragraph (b) above, the term
"outstanding voting securities of such issuer" will include the equity
securities of a qualified publicly traded partnership.

If the Funds qualify as RICs that are accorded special tax treatment, the Funds
will not be subject to federal income tax on income distributed in a timely
manner to their shareholders in the form of dividends (including Capital Gain
Dividends, as defined below).

As described in "Dividends" above, each Fund intends to distribute at least
annually to shareholders all or substantially all of its investment company
taxable income (computed without regard to the dividends-paid deduction) and may
distribute its net capital gain. Any investment company taxable income retained
by a Fund will be subject to tax at the Fund level at regular corporate rates.
Each Fund may also retain for investment its net capital gain. If a Fund retains
any net capital gain, it will be subject to tax at regular corporate rates on
the amount retained, but may designate the retained amount as undistributed
capital gains, in a notice to its shareholders who (i) will be required to
include in income for federal income tax purposes, as long-term capital gain,
their shares of such undistributed amount, and (ii) will be entitled to credit
their proportionate shares of the tax paid by the Fund on such undistributed
amount against their federal income tax liabilities, if any, and to claim
refunds on a properly-filed US tax return to the extent the credit exceeds such
liabilities. For federal income tax purposes, the tax basis of shares owned by a
shareholder of the Fund will be increased by an amount equal under current law
to the difference between the amount of undistributed capital gains included in
the shareholder's gross income and the tax deemed paid by the shareholder under
clause (ii) of the preceding sentence.

In determining its net capital gain for Capital Gain Dividend (as defined below)
purposes, a RIC generally must treat any net capital loss or any net long-term
capital loss incurred after October 31 as if it had been incurred in the
succeeding year. US Treasury regulations permit a RIC, in determining its
taxable income, to elect to treat all or part of any net capital loss, any net
long-term capital loss or any foreign currency loss incurred after October 31 as
if it had been incurred in the succeeding year.

Each Fund is subject to a 4% nondeductible excise tax on amounts required to be,
but not, distributed under a prescribed formula. The formula requires payment to
shareholders during a calendar year of distributions representing (i) at least
98% of the Fund's taxable ordinary income for the calendar year, (ii) at least
98% of the excess of its capital gains over capital losses realized during the
one-year period ending October 31 of such year, and (iii) amounts that were
neither distributed nor taxed to the Fund during the prior calendar year. For
these purposes, each Fund will be treated as having distributed any amount on
which it has been subject to corporate income tax in the taxable year ending
within the calendar year. A dividend paid to shareholders in January of a year
generally is deemed to have been paid by a Fund on December 31 of the preceding
year, if the dividend was declared and payable to shareholders of record on a
date in October, November or December of that preceding year. Although each
Fund's distribution policies should enable it to avoid excise tax liability,
each Fund may retain (and be subject to Fund level income and/or excise tax on)
a portion of its capital gain or other income if it appears to be in the
interest of the Fund. However, in any event, each Fund intends to comply with
the minimum distribution requirements applicable to RICs under Subchapter M of
the Code as described above.

If for any taxable year a Fund does not qualify for the special federal income
tax treatment that is accorded RICs, all of its taxable income will be subject
to federal income tax at regular corporate rates (without any deduction for
distributions to its shareholders), and all distributions from earnings and
profits, including any distributions of net tax-exempt income (if any) and net
long-term capital gains, will be taxable to shareholders as ordinary income.
Such distributions may be eligible (i) to be treated as "qualified dividend
income," in the case of individual and other non-corporate shareholders, subject
to reduced rates of federal income taxation for taxable years beginning before
January 1, 2011 and (ii) for the dividends received deduction in the case of
corporate shareholders. In addition, the Fund could be required to recognize
unrealized gains, pay substantial taxes and interest and make substantial
distributions before requalifying as a RIC that is accorded special tax
treatment.





Taxation of Fund Distributions. Distributions are taxable whether shareholders
receive them in cash or reinvest them in additional shares through the
reinvestment privilege. All distributions by a Fund result in a reduction in the
net asset value of that Fund's shares. Should a distribution reduce the net
asset value below a shareholder's cost basis, such distribution would
nevertheless be taxable to the shareholder as ordinary income or capital gain as
described above, even though, from an investment standpoint, it may constitute a
partial return of capital. In particular, investors should be careful to
consider the tax implications of buying shares just prior to a distribution. The
price of shares purchased at that time includes the amount of the forthcoming
distribution. Those purchasing just prior to a distribution will receive a
partial return of capital upon the distribution, which will nevertheless be
taxable to them. If a Fund makes a distribution to a shareholder in excess of
its current and accumulated earnings and profits in any taxable year, the excess
distribution will be treated as a return of capital to the extent of such
shareholder's tax basis in its shares, and thereafter as capital gain. A return
of capital is not taxable, but it reduces a shareholder's tax basis in its
shares, thus reducing any loss or increasing any gain on a subsequent taxable
disposition by the shareholder of his or her shares.

For federal income tax purposes, distributions of investment income are
generally taxable as ordinary income. Taxes on distributions of capital gains
are determined by how long a Fund owned (or is deemed to have owned) the
investments that generated them, rather than how long a shareholder has owned
his or her shares. Distributions of net capital gains from the sale of
investments that a Fund owned (or is deemed to have owned) for more than one
year and that are properly designated by the Fund as capital gain dividends
("Capital Gain Dividends") will be taxable as long-term capital gains. Capital
gains distributions may be reduced if Fund capital loss carryforwards are
available. Any capital loss carryforwards to which a Fund is entitled are
disclosed in a Fund's annual and semi-annual reports to shareholders. Long-term
capital gain rates applicable to individuals have been temporarily reduced - in
general, to 15% with lower rates applying to taxpayers in the 10% and 15% rate
brackets - for taxable years beginning before January 1, 2011. Distributions of
gains from the sale of investments that a Fund owned (or is deemed to have
owned) for one year or less will be taxable as ordinary income.

For taxable years beginning before January 1, 2011, distributions of investment
income designated by a Fund as derived from "qualified dividend income" will be
taxed in the hands of individuals at the rates applicable to long-term capital
gain, provided holding period and other requirements are met at both the
shareholder and Fund level.





In order for some portion of the dividends received by a Fund shareholder to be
"qualified dividend income," a Fund must meet holding period and other
requirements with respect to some portion of the dividend paying stocks in its
portfolio and the Fund shareholder must meet holding period and other
requirements with respect to the Fund's shares. A dividend will not be treated
as qualified dividend income (at either the fund or shareholder level) (1) if
the dividend is received with respect to any share of stock held for fewer than
61 days during the 121-day period beginning on the date which is 60 days before
the date on which such share becomes ex-dividend with respect to such dividend
(or, in the case of certain preferred stock, 91 days during the 181-day period
beginning 90 days before such date), (2) to the extent that the recipient is
under an obligation (whether pursuant to a short sale or otherwise) to make
related payments with respect to positions in substantially similar or related
property, (3) if the recipient elects to have the dividend income treated as
investment income for purposes of the limitation on deductibility of investment
interest, or (4) if the dividend is received from a foreign corporation that is
(a) not eligible for the benefits of a comprehensive income tax treaty with the
United States (with the exception of dividends paid on stock of such a foreign
corporation readily tradable on an established securities market in the United
States) or (b) treated as a passive foreign investment company.

In general, distributions of investment income designated by a Fund as derived
from qualified dividend income will be treated as qualified dividend income by a
shareholder taxed as an individual provided the shareholder meets the holding
period and other requirements described above with respect to the Fund's shares.
If the aggregate qualified dividends received by a Fund during any taxable year
are 95% or more of its gross income, then 100% of the Fund's dividends (other
than dividends properly designated as Capital Gain Dividends) will be eligible
to be treated as qualified dividend income. For this purpose, the only gain
included in the term "gross income" is the excess of net short-term capital gain
over net long-term capital loss.

If a Fund receives dividends from an Underlying DWS Fund that qualifies as a RIC
or other RIC, which may include an ETF (each such Underlying DWS Fund and other
RIC in which a Fund may invest, an "Underlying RIC"), and the Underlying RIC
designates such dividends as qualified dividend income, then the Fund is
permitted in turn to designate that portion of its distributions derived from
those dividends as qualified dividend income, provided the Fund meets holding
period and other requirements with respect to shares of the Underlying RIC.





A portion of the income distributions of each Fund attributable to dividends
received from domestic corporations may be eligible for the 70% deduction for
dividends received by corporations. Shareholders will be informed of the portion
of dividends which so qualify. The dividends-received deduction is reduced to
the extent the shares of a Fund with respect to which the dividends are received
are treated as debt-financed under federal income tax law. The
dividends-received deduction is eliminated (i) if either those shares or the
shares of a Fund are deemed to have been held by the Fund or the applicable
corporate shareholder, as the case may be, for less than 46 days during the
91-day period beginning 45 days before the shares become ex-dividend (or, in the
case of certain preferred stock, 91 days during the 181-day period beginning 90
days before such date), or (ii) to the extent that the Fund is under an
obligation (pursuant to a short sale or otherwise) to make related payments with
respect to positions in substantially similar or related property.

If a Fund receives dividends from an Underlying RIC, and the Underlying RIC
designates such dividends as eligible for the dividends-received deduction, then
the Fund is permitted, in turn, to designate a portion of its distributions as
eligible for the dividends-received deduction, provided that the Fund meets the
holding period and other requirements with respect to shares of the Underlying
RIC.

Transaction in the Funds' Shares. The sale, exchange or redemption of shares of
a Fund will generally give rise to a gain or loss. In general, any gain or loss
realized upon a taxable disposition of shares will be treated as long-term
capital gain or loss if the shares have been held (or are treated as being held)
for more than 12 months. Otherwise, the gain or loss on the taxable disposition
of shares of a Fund will be treated as short-term capital gain or loss. However,
any loss realized upon a taxable disposition of shares held (or treated as being
held) for six months or less will be treated as long-term, rather than
short-term, to the extent of any Capital Gain Dividends received (or deemed
received) by the shareholder with respect to the shares. All or a portion of any
loss realized upon a taxable disposition of shares of a Fund will be disallowed
if other substantially identical shares of the Fund are purchased within 30 days
before or after the disposition. In such a case, the basis of the newly
purchased shares will be adjusted to reflect the disallowed loss.

Fund-of-Funds Structure. The use of a fund-of-funds structure could affect the
amount, timing, and character of distributions from a Fund, and, therefore, may
increase the amount of taxes payable by shareholders. Because each Fund intends
to invest all or substantially all of its assets in shares of Underlying RICs,
its distributable income and gains will normally consist primarily of
distributions from the Underlying RICs and gains and losses on the disposition
of shares of the Underlying RICs. To the extent that an Underlying RIC realizes
net losses on its investments for a given taxable year, a Fund will not be able
to recognize its shares of those losses (so as to offset distributions of net
income or capital gains from other Underlying RICs) until it disposes of shares
of the Underlying RIC. Moreover, even when a Fund does make such a disposition,
a portion of its loss may be recognized as a long-term capital loss, which will
not be treated as favorably for federal income tax purposes as a short-term
capital loss or an ordinary deduction. In particular, each Fund will not be able
to offset any capital losses from its dispositions of the Underlying RIC shares
against its ordinary income (including distributions of any net short-term
capital gains realized by an Underlying RIC).

In addition, in certain circumstances, the "wash sale" rules under Section 1091
of the Code may apply to a Fund's sales of shares of an Underlying RIC that have
generated losses. A wash sale occurs if shares of an Underlying RIC are sold by
a Fund at a loss and the Fund acquires additional shares of that same Underlying
RIC 30 days before or after the date of the sale. The wash-sale rules could
defer losses in the Fund's hands on sales of the Underlying RIC shares (to the
extent such sales are wash sales) for extended (and, in certain cases,
potentially indefinite) periods of time. In addition to the wash sale rules,
certain related-party transaction rules may cause any losses generated by a Fund
on the sale of an Underlying DWS Fund's shares to be deferred (or, in some case,
permanently disallowed) if the Fund and the Underlying DWS Fund are part of the
same "controlled group" (as defined in Section 267(f) of the Code) at the time
the loss is recognized. For instance, for these purposes, the Fund and an
Underlying DWS Fund will be part of the same controlled group if the Fund owns
more than 50% of the total outstanding voting securities of the Underlying DWS
Fund.

As a result of the foregoing rules, and certain other special rules, it is
possible that the amounts of net investment income and net capital gains that a
Fund will be required to distribute to shareholders will be greater than such
amounts would have been had the Fund invested directly in the securities held by
the Underlying RICs, rather than investing in shares of the Underlying RICs. For
similar reasons, the character of distributions from a Fund (e.g., long-term
capital gain, exempt interest, eligibility for dividends-received deduction,
etc.) will not necessarily be the same as it would have been had the Fund
invested directly in the securities held by the Underlying RICs.





Depending on a Fund's percentage ownership in an Underlying RIC both before and
after a redemption of Underlying RIC shares, the Fund's redemption of shares of
such Underlying RIC may cause the Fund to be treated as receiving a dividend
taxable as ordinary income on the full amount of the distribution instead of
receiving capital gain income on the shares of the Underlying RIC. This would be
the case where a Fund holds a significant interest in an Underlying RIC and
redeems only a small portion of such interest. It is possible that such a
dividend would qualify as "qualified dividend income" taxable to individual
shareholders at long-term capital gain rates; otherwise, it would be taxable as
ordinary income.

Securities Lending. To the extent that a Fund makes a distribution of income
received by the Fund in lieu of dividends (a "substitute payment") with respect
to securities on loan pursuant to a securities lending transaction, such income
will not constitute qualified dividend income to individual shareholders and
will not be eligible for the dividends-received deduction for corporate
shareholders.

Taxation of Certain Investments Made By Underlying RICs. Some debt obligations
with a fixed maturity date of more than one year from the date of issuance (and
zero-coupon debt obligations with a fixed maturity date of more than one year
from the date of issuance) that are acquired by an Underlying RIC will be
treated as debt obligations that are issued originally at a discount. Generally,
the amount of the original issue discount ("OID") is treated as interest income
and is included in taxable income over the term of the debt security, even
though payment of that amount is not received until a later time, usually when
the debt security matures. This OID imputed income will comprise a part of the
investment company taxable income of the Underlying RIC, which must be
distributed to shareholders in order to maintain the qualification of the
Underlying RIC as a RIC and to avoid federal income and/or excise tax at the
Underlying RIC level. In addition, payment-in-kind securities will give rise to
income which is required to be distributed and is taxable even though an
Underlying RIC holding the security receives no interest payment in cash on the
security during the year.

Some debt obligations with a fixed maturity date of more than one year from the
date of issuance that are acquired by an Underlying RIC in the secondary market
may be treated as having market discount. Generally, any gain recognized on the
disposition of, and any partial payment of principal on, a debt security having
market discount is treated as ordinary income to the extent the gain, or
principal payment, does not exceed the "accrued market discount" on such debt
security. Market discount generally accrues in equal daily installments. The
Underlying RIC could make one or more of the elections applicable to debt
obligations having market discount, which could affect the character and timing
of recognition of income. See the statement of additional information for the
relevant Underlying RIC for more information.

Some debt obligations with a fixed maturity date of one year or less from the
date of issuance that are acquired by an Underlying RIC may be treated as having
acquisition discount or OID. Generally, an Underlying RIC will be required to
include the acquisition discount or OID in income over the term of the debt
security, even though payment of that amount is not received until a later time,
usually when the debt security matures. An Underlying RIC may make one or more
of the elections applicable to debt obligations having acquisition discount or
OID, which could affect the character and timing of recognition of income.

In addition, if an Underlying RIC invests in high yield original issue discount
obligations issued by corporations (including tax-exempt obligations), a portion
of the OID accruing on the obligation may be treated as taxable dividend income.
In such event, dividends of investment company taxable income received from an
Underlying RIC by its shareholders, including a Fund, to the extent attributable
to such portion of accrued original issue discount, would be taxable. If the
Underlying RIC designates such dividends as eligible for the dividends-received
deduction, then the Fund is permitted, in turn, to designate a portion of its
distributions as eligible for the dividends-received deduction.

If an Underlying RIC holds the foregoing kinds of securities, it may be required
to pay out as an income distribution each year an amount which is greater than
the total amount of cash interest the Underlying RIC actually received. Such
distributions may be made from the cash assets of the Underlying RIC or by
liquidation of portfolio securities, if necessary. An Underlying RIC may realize
gains or losses from such liquidations. In the event an Underlying RIC realizes
net capital gains from such transactions, a Fund investing in such an Underlying
RIC (and, in turn, that Fund's shareholders) may receive a larger capital gain
distribution than it (they) would in the absence of such transactions.

A portion of the interest paid or accrued on certain high yield discount
obligations owned by an Underlying RIC may not (and interest paid on debt
obligations, if any, that are considered for tax purposes to be payable in the
equity of the issuer or a related party will not) be deductible to the issuer.
This may affect the cash flow of the issuer. If a portion of the interest paid
or accrued on certain high yield discount obligations is not deductible, that
portion will be treated as a dividend for purposes of the corporate dividends
received deduction. In such cases, if the issuer of the high yield discount
obligations is a domestic corporation, dividend payments by an Underlying RIC
may be eligible for the dividends received deduction to the extent of the deemed
dividend portion of such accrued interest. As described above, the Fund
investing in such Underlying RIC may be permitted in turn to designate a portion
of its distributions as eligible for the dividends-received deduction.

An Underlying RIC may invest in debt obligations that are in the lowest rating
categories or are unrated, including debt obligations of issuers not currently
paying interest or who are in default. Investments in debt obligations that are
at risk of or in default present special tax issues for an Underlying RIC. Tax
rules are not entirely clear about issues such as whether and to what extent an
Underlying RIC should recognize market discount on a debt obligation and when an
Underlying RIC may cease to accrue interest, OID or market discount, when and to
what extent an Underlying RIC may take deductions for bad debts or worthless
securities and how an Underlying RIC should allocate payments received on
obligations in default between principal and income.

An Underlying RIC's transactions in foreign currencies, foreign
currency-denominated debt obligations and certain foreign currency options,
futures contracts and forward contracts (and similar instruments) may give rise
to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned.

If an Underlying RIC engages in hedging and related transactions, including
hedging transactions in options, foreign currencies, futures contracts,
straddles, or other similar transactions, it generally will be subject to
special tax rules (including constructive sale, mark-to-market, straddle, wash
sale, short sale and other rules), the effect of which may be to accelerate
income to the Underlying RIC, defer losses to the Underlying RIC, cause
adjustments in the holding periods of the Underlying RIC's securities, convert
long-term capital gains into short-term capital gains or convert short-term
capital losses into long-term capital losses. These rules could therefore affect
the amount, timing and character of distributions to a Fund investing in the
Underlying RIC (and, in turn, to that Fund's shareholders).

Foreign withholding or other foreign taxes with respect to income (possibly
including, in some cases, capital gains) on certain foreign securities held by
an Underlying RIC may occur. These taxes may be reduced or eliminated under the
terms of an applicable US income tax treaty. Under current law, a Fund cannot
pass through to its shareholders foreign tax credits borne in respect of foreign
securities income earned by an Underlying RIC. The Funds are permitted to elect
to pass through to their shareholders foreign income taxes it pays only if they
directly hold more than 50% of its assets in foreign stock and securities at the
close of its taxable year. Foreign securities held indirectly through an
Underlying RIC do not contribute to this 50% threshold. As a result, the Funds
will not be eligible to pass through to shareholders their proportionate share
of any foreign taxes paid, with the result that shareholders will not be able to
include in income, and will not be entitled to take any credits or deductions
for such foreign taxes.

Equity investments by an Underlying RIC in certain "passive foreign investment
companies" ("PFICs") could potentially subject the Underlying RIC to a US
federal income tax (including interest charges) on distributions received from
the company or on proceeds received from the disposition of shares in the
company, which tax cannot be eliminated by making distributions to Underlying
RIC shareholders. However, the Underlying RIC could elect to avoid the
imposition of that tax. For example, the Underlying RIC may elect to treat a
PFIC as a "qualified electing fund" (a "QEF election"), in which case the
Underlying RIC would be required to include its share of the company's income
and net capital gains annually, regardless of whether it receives any
distribution from the company. The Underlying RIC could also may make an
election to mark the gains (and to a limited extent losses) in such holdings "to
the market" as though it had sold and repurchased its holdings in those PFICs on
the last day of the Underlying RIC's taxable year. Such gains and losses are
treated as ordinary income and loss. The QEF and mark-to-market elections could
accelerate the recognition of income (without the receipt of cash) and increase
the amount required to be distributed by the Underlying RIC to avoid taxation.
Making either of these elections therefore may require the Underlying RIC to
liquidate other investments (including when it is not advantageous to do so) to
meet its distribution requirement, which also may accelerate the recognition of
gain and affect the Underlying RIC's total return. The Funds will not be
entitled to make such elections with respect to indirect PFIC investments
through Underlying RICs; rather, the Underlying RICs directly investing in PFICs
would decide whether to make such elections. Dividends paid by PFICs will not be
eligible to be treated as "qualified dividend income."





An Underlying RIC may invest in REITs. Investments in REIT equity securities may
result in an Underlying RIC's receipt of cash in excess of the REIT's earnings;
if the Underlying RIC distributes these amounts, these distributions could
constitute a return of capital to the Underlying RIC for federal income tax
purposes. Dividends received by an Underlying RIC from a REIT generally will not
constitute qualified dividend income. In addition, any investments in REIT
equity securities may require an Underlying RIC to accrue and distribute income
not yet received. To generate sufficient cash to make the requisite
distributions, the Underlying RIC may be required to sell securities in its
portfolio (including when it is not advantageous to do so) that it otherwise
would have continued to hold. Dividends received by the Underlying RIC from a
REIT generally will not constitute qualified dividend income.

Excess Inclusion Income. Under a notice issued by the IRS in October 2006 and
Treasury regulations that have yet to be issued but may apply retroactively, a
portion of a Fund's income allocated to the Fund from an Underlying RIC or other
pass-through entity that is attributable to a residual interest in a real estate
mortgage investment conduit ("REMIC") or an equity interest in a taxable
mortgage pool ("TMP) (referred to in the Code as an "excess inclusion") will be
subject to federal income tax in all events. This notice also provides, and the
regulations are expected to provide, that excess inclusion income of a RIC will
be allocated to shareholders of the RIC in proportion to the dividends received
by such shareholders, with the same consequences as if the shareholders held the
related interest directly. As a result, a Fund investing indirectly in such
interests through an Underlying RIC may not be a suitable investment for
charitable remainder trusts, as noted below.

In general, excess inclusion income allocated to Fund shareholders (i) cannot be
offset by net operating losses (subject to a limited exception for certain
thrift institutions), (ii) will constitute unrelated business taxable income
("UBTI") to entities (including a qualified pension plan, an individual
retirement account, a 401(k) plan, a Keogh plan or other tax-exempt entity)
subject to tax on UBTI, thereby potentially requiring such an entity that is
allocated excess inclusion income, and otherwise might not be required to file a
tax return, to file a tax return and pay tax on such income, and (iii) in the
case of a non-US shareholder, will not qualify for any reduction in US federal
withholding tax.

Tax-Exempt Shareholders. Under current law, the Funds serve to "block" (that is,
prevent the attribution to shareholders of) UBTI from being realized by
tax-exempt shareholders. Notwithstanding this "blocking" effect, a tax-exempt
shareholder could realize UBTI by virtue of its investment in a Fund if shares
in the Fund constitute debt-financed property in the hands of the tax-exempt
shareholder within the meaning of Code Section 514(b).

A tax-exempt shareholder may also recognize UBTI if a Fund recognizes "excess
inclusion income" derived from indirect investments in residual interests in
REMICs or equity interests in TMPs through Underlying RICs, if the amount of
such income recognized by the Fund exceeds the Fund's investment company taxable
income (after taking into account deductions for dividends paid by the Fund).
Furthermore, any investment in residual interests of a collateralized mortgage
obligation (a "CMO") that has elected to be treated as a REMIC can create
complex tax consequences, especially if a RIC has state or local governments or
other tax-exempt organizations as shareholders.

In addition, special tax consequences apply to charitable remainder trusts
("CRTs") that invest in RICs that invest directly or indirectly in residual
interests in REMICs or equity interests in TMPs. Under legislation enacted in
December 2006, a CRT (as defined in section 664 of the Code) that realizes any
UBTI for a taxable year must pay an excise tax annually of an amount equal to
such UBTI. Under IRS guidance issued in October 2006, a CRT will not recognize
UBTI as a result of investing in a Fund that directly or indirectly (through an
Underlying RIC) recognizes "excess inclusion income." Rather, if at any time
during any taxable year a CRT (or one of certain other tax-exempt shareholders,
such as the United States, a state or political subdivision, or an agency or
instrumentality thereof, and certain energy cooperatives) is a record holder of
a share in a Fund that directly or indirectly (through an Underlying RIC)
recognizes "excess inclusion income," then the Fund will be subject to a tax on
that portion of its "excess inclusion income" for the taxable year that is
allocable to such shareholders at the highest federal corporate income tax rate.
The extent to which this IRS guidance remains applicable in light of the
December 2006 legislation is unclear. To the extent permitted under the 1940
Act, each Fund may elect to specially allocate any such tax to the applicable
CRT, or other shareholder, and thus reduce such shareholder's distributions for
the year by the amount of the tax that relates to such shareholder's interest in
a Fund. The Funds have not yet determined whether such an election will be made.
CRTs and other tax-exempt investors are urged to consult their tax advisors
concerning the consequences of investing in the Funds.

Backup Withholding. Under the backup withholding provisions of the Code,
redemption proceeds as well as distributions may be subject to federal income
tax withholding for certain individual shareholders, if (i) the shareholder
fails to furnish a Fund with a correct "taxpayer identification number" (TIN),
(ii) the shareholder underreports dividend or interest income, or (iii) the
shareholder has not certified to a Fund that withholding does not apply. The
backup withholding rate is 28% for amounts paid through 2010. This rate will
expire and the backup withholding rate will be 31% for amounts paid after
December 31, 2010, unless Congress enacts tax legislation providing otherwise.

Backup withholding is not an additional tax. Any amounts withheld may be
credited against the shareholder's US federal income tax liability, provided the
appropriate information is furnished to the IRS.

Non-US Shareholders. Distributions properly designated as Capital Gain Dividends
and exempt-interest dividends generally will not be subject to withholding of
federal income tax. In general, dividends other than Capital Gain Dividends and
exempt-interest dividends paid by the Funds to a shareholder that is not a "US
person" within the meaning of the Code (a "foreign person") are subject to
withholding of US federal income tax at a rate of 30% (or lower applicable
treaty rate) even if they are funded by income or gains (such as portfolio
interest, short-term capital gains, or foreign-source dividend and interest
income) that, if paid to a foreign person directly, would not be subject to
withholding. However, effective for taxable years of the Funds beginning before
January 1, 2010, the Funds are not required to withhold any amounts (i) with
respect to distributions (other than distributions to a foreign person (w) that
has not provided a satisfactory statement that the beneficial owner is not a US
person, (x) to the extent that the dividend is attributable to certain interest
on an obligation if the foreign person is the issuer or is a 10% shareholder of
the issuer, (y) that is within certain foreign countries that have inadequate
information exchange with the United States, or (z) to the extent the dividend
is attributable to interest paid by a person that is a related person of the
foreign person and the foreign person is a controlled foreign corporation) from
US-source interest income of types similar to those not subject to US federal
income tax if earned directly by an individual foreign person, to the extent
such distributions are properly designated by the Funds ("interest-related
dividends"), and (ii) with respect to distributions (other than (a)
distributions to an individual foreign person who is present in the United
States for a period or periods aggregating 183 days or more during the year of
the distribution and (b) distributions subject to special rules regarding the
disposition of US real property interests ("USRPIs:)) of net short-term capital
gains in excess of net long-term capital losses to the extent such distributions
are properly designated by the Funds ("short-term capital gain dividends").
Depending on the circumstances, the Funds may make designations of
interest-related and/or short-term capital gain dividends with respect to all,
some or none of its potentially eligible dividends and/or treat such dividends,
in whole or in part, as ineligible for these exemptions from withholding. Absent
legislation extending these exemptions for taxable years beginning on or after
January 1, 2010, these special withholding exemptions for interest-related and
short-term capital gain dividends will expire and these dividends generally will
be subject to withholding as described above. It is currently unclear whether
Congress will extend the exemptions for tax years beginning on or after January
1, 2010.

In the case of shares held through an intermediary, the intermediary may
withhold even if the Funds make a designation with respect to a payment. Foreign
persons should contact their intermediaries regarding the application of these
rules to their accounts.

A beneficial holder of shares who is a foreign person is not, in general,
subject to US federal income tax on gains (and is not allowed a deduction for
losses) realized on the sale of shares of the Funds or on Capital Gain Dividends
unless (i) such gain or dividend is effectively connected with the conduct of a
trade or business carried on by such holder within the United States or (ii) in
the case of an individual holder, the holder is present in the United States for
a period or periods aggregating 183 days or more during the year of the sale or
the receipt of the Capital Gain Dividend and certain other conditions are met or
(iii) the shares constitute USRPIs or the Capital Gain Dividends are
attributable to gains from the sale or exchange of USRPIs in accordance with
certain special rules.

Special rules apply to distributions to certain foreign persons from a RIC that
is either a "U.S. real property holding corporation" ("USRPHC") or would be a
USRPHC absent exclusions from USRPI treatment for interests in domestically
controlled REITs and RICs and not-greater-than-5% interests in publicly traded
classes of stock in REITs and RICs. Additionally, special rules apply to the
sale of shares in a RIC that is a USRPHC. Very generally, a USRPHC is a domestic
corporation that holds USRPIs -- USRPIs are defined generally as any interest in
U.S. real property or any equity interest in a USRPHC -- the fair market value
of which equals or exceeds 50% of the sum of the fair market values of the
corporation's USRPIs, interests in real property located outside the United
States and other assets. The Funds generally do not expect that they will be
USRPHCs or would be USRPHCs but for the operation of these exceptions, and thus
do not expect these special tax rules to apply.

In order to qualify for any exemptions from withholding described above or for
lower withholding tax rates under income tax treaties, or to establish an
exemption from backup withholding, the foreign investor must comply with special
certification and filing requirements relating to its non-US status (including,
in general, furnishing an IRS Form W-8BEN or substitute form). Foreign investors
in a Fund should consult their tax advisors in this regard.

If a shareholder is eligible for the benefits of a tax treaty, any effectively
connected income or gain will generally be subject to US federal income tax on a
net basis if it is also attributable to a permanent establishment maintained by
the shareholder in the United States.

A beneficial holder of shares who is a foreign person may be subject to state
and local tax and to the US federal estate tax in addition to the federal tax on
income referred to above.

Tax Shelter Reporting Regulations. Under Treasury regulations, if a shareholder
recognizes a loss with respect to a Fund's shares of $2 million or more for an
individual shareholder or $10 million or more for a corporate shareholder, the
shareholder must file with the IRS a disclosure statement on Form 8886. Direct
shareholders of Fund securities are in many cases excepted from this reporting
requirement, but under current guidance, shareholders of a RIC are not excepted.
Future guidance may extend the current exception from this reporting requirement
to shareholders of most or all RICs. The fact that a loss is reportable under
these regulations does not affect the legal determination of whether the
taxpayer's treatment of the loss is proper. Shareholders should consult their
tax advisors to determine the applicability of these regulations in light of
their individual circumstances.

Other Considerations. Shareholders of a Fund may be subject to state and local
taxes on distributions received from a Fund and on redemptions of a Fund's
shares.

Special tax rules apply to investments though defined contribution plans and
other tax-qualified plans. Shareholders should consult their tax advisor to
determine the suitability of shares of a fund as an investment through such
plans and the precise effect of an investment on their particular tax situation.

The US federal income tax discussion set forth above is for general information
only. Investors are advised to consult their own tax advisors with respect to
their own circumstances regarding the above-referenced federal income taxation
rules and with respect to other federal, state, local or foreign tax
consequences to them of an investment in shares of a Fund.


                                 NET ASSET VALUE

The net asset value of shares of each Fund is computed as of the close of
regular trading on the New York Stock Exchange (the "Exchange") on each day the
Exchange is open for trading (the "Value Time"). The Exchange is scheduled to be
closed on the following holidays: New Year's Day, Dr. Martin Luther King, Jr.
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas, and on the preceding Friday or subsequent Monday
when one of these holidays falls on a Saturday or Sunday, respectively. Net
asset value per share is determined separately for each class of shares by
dividing the value of the total assets of a Fund, less all liabilities
attributable to that class, by the total number of shares of that class
outstanding. The per share net asset value may be lower for certain classes of a
Fund because of higher expenses borne by these classes.

The net asset value of each Underlying DWS Fund is determined based upon the
nature of the securities as set forth in the prospectus and statement of
additional information of such Underlying DWS Fund. Shares of each Underlying
DWS Fund in which a Fund may invest are valued at the net asset value per share
of each Underlying DWS Fund as of the close of regular trading on the Exchange
on each day the Exchange is open for trading. The net asset value per share of
the Underlying DWS Funds will be calculated and reported to a Fund by each
Underlying DWS Fund's accounting agent. Short-term securities with a remaining
maturity of sixty days or less are valued by the amortized cost method.

If market quotations for a portfolio asset are not readily available or the
value of a portfolio asset as determined in accordance with Board approved
procedures does not represent the fair market value of the portfolio asset, the
value of the portfolio asset is taken to be an amount which, in the opinion of
the Fund's Pricing Committee (or, in some cases, the Board's Valuation
Committee), represents fair market value. The value of other portfolio holdings
owned by the Fund is determined in a manner which is intended to fairly reflect
the fair market value of the asset on the valuation date, based on valuation
procedures adopted by the Fund's Board and overseen primarily by the Fund's
Pricing Committee.

                              TRUSTEES AND OFFICERS


The following table presents certain information regarding the Board Members of
the Trust. Each Board Member's year of birth is set forth in parentheses after
his or her name. Unless otherwise noted, (i) each Board Member has engaged in
the principal occupation(s) noted in the table for at least the most recent five
years, although not necessarily in the same capacity, and (ii) the address of
each Board Member that is not an "interested person" (as defined in the 1940
Act) of the Trust or the Advisor (each, an "Independent Board Member") is c/o
Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33904. The term of office for
each Board Member is until the election and qualification of a successor, or
until such Board Member sooner dies, resigns, is removed or as otherwise
provided in the governing documents of the Trust. Because the Funds do not hold
an annual meeting of shareholders, each Board Member will hold office for an
indeterminate period. The Board Members may also serve in similar capacities
with other funds in the DWS fund complex.

Independent Board Members

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
 Name, Year of Birth, Position                                                                   Number of Funds
 with the Trust and Length of     Business Experience and                                        in DWS Fund
 Time Served(1)                   Directorships During the Past 5 Years                          Complex Overseen
--------------------------------------------------------------------------------------------------------------------
<S>                                <C>                                                                  <C>
Dawn-Marie Driscoll (1946)        President, Driscoll Associates (consulting firm); Executive           133
Chairperson since 2004,(2) and    Fellow, Center for Business Ethics, Bentley College;
Board Member since 1987           formerly: Partner, Palmer & Dodge (1988-1990); Vice President
                                  of Corporate Affairs and General Counsel, Filene's
                                  (1978-1988); Directorships: Trustee of 8 open-end mutual
                                  funds managed by Sun Capital Advisers, Inc. (since 2007);
                                  Director of ICI Mutual Insurance Company (since 2007);
                                  Advisory Board, Center for Business Ethics, Bentley College;
                                  Trustee, Southwest Florida Community Foundation (charitable
                                  organization); former Directorships: Investment Company
                                  Institute (audit, executive, nominating committees) and
                                  Independent Directors Council (governance, executive
                                  committees)
--------------------------------------------------------------------------------------------------------------------
Paul K. Freeman                   Consultant, World Bank/Inter-American Development Bank;               133
(1950)                            formerly: Project Leader, International Institute for Applied
Vice Chairperson since 2008, and  Systems Analysis (1998-2001); Chief Executive Officer, The
Board Member since 1993           Eric Group, Inc. (environmental insurance) (1986-1998)
--------------------------------------------------------------------------------------------------------------------
John W. Ballantine (1946)         Retired; formerly: Executive Vice President and Chief Risk            133
Board Member since 1999           Management Officer, First Chicago NBD Corporation/The First
                                  National Bank of Chicago (1996-1998); Executive Vice
                                  President and Head of International Banking (1995-1996);
                                  Directorships: Healthways Inc. (provider of disease and care
                                  management services); Portland General Electric (utility
                                  company); Stockwell Capital Investments PLC (private equity);
                                  former Directorships: First Oak Brook Bancshares, Inc. and
                                  Oak Brook Bank
--------------------------------------------------------------------------------------------------------------------
 Henry P. Becton, Jr. (1943)      Vice Chair, WGBH Educational Foundation; Directorships:               133
 Board Member since               Association of Public Television Stations; Becton Dickinson
 1990                             and Company(3) (medical technology company); Belo
                                  Corporation(3) (media company); Boston Museum of Science;
                                  Public Radio International; former Directorships: American
                                  Public Television; Concord Academy; New England Aquarium;
                                  Mass. Corporation for Educational Telecommunications;
                                  Committee for Economic Development; Public Broadcasting
                                  Service
--------------------------------------------------------------------------------------------------------------------
Keith R. Fox (1954)               Managing General Partner, Exeter Capital Partners (a series           133
Board Member since                of private equity funds); Directorships: Progressive Holding
1996                              Corporation (kitchen goods importer and distributor); Natural
                                  History, Inc. (magazine publisher); Box Top Media Inc.
                                  (advertising); The Kennel Shop (retailer)
--------------------------------------------------------------------------------------------------------------------
Kenneth C. Froewiss               Clinical Professor of Finance, NYU Stern School of Business           133
(1945)                            (1997-present); Member, Finance Committee, Association for
Board Member since                Asian Studies (2002-present); Director, Mitsui Sumitomo
2001                              Insurance Group (US) (2004-present); prior thereto, Managing
                                  Director, J.P. Morgan (investment banking firm) (until 1996)
--------------------------------------------------------------------------------------------------------------------
Richard J. Herring                Jacob Safra Professor of International Banking and Professor,         133
(1946)                            Finance Department, The Wharton School, University of
Board Member since                Pennsylvania (since July 1972); Co-Director, Wharton
1990                              Financial Institutions Center (since July 2000); Director,
                                  Japan Equity Fund, Inc. (since September 2007), Thai Capital
                                  Fund, Inc. (since September 2007), Singapore Fund, Inc.
                                  (since September 2007); formerly: Vice Dean and Director,
                                  Wharton Undergraduate Division (July 1995-June 2000);
                                  Director, Lauder Institute of International Management
                                  Studies (July 2000-June 2006)
--------------------------------------------------------------------------------------------------------------------
William McClayton (1944)          Managing Director, Diamond Management & Technology                    133
Board Member since 2004           Consultants, Inc. (global management consulting firm)
                                  (2001-present); Directorship: Board of Managers, YMCA of
                                  Metropolitan Chicago; formerly: Senior Partner, Arthur
                                  Andersen LLP (accounting) (1966-2001); Trustee, Ravinia
                                  Festival
--------------------------------------------------------------------------------------------------------------------
Rebecca W. Rimel                  President and Chief Executive Officer, The Pew Charitable             133
(1951)                            Trusts (charitable organization) (1994 to present); Trustee,
Board Member since                Thomas Jefferson Foundation (charitable organization) (1994
1995                              to present); Trustee, Executive Committee, Philadelphia
                                  Chamber of Commerce (2001 to 2007); Trustee, Pro Publica
                                  (2007-present) (charitable organization); formerly: Executive
                                  Vice President, The Glenmede Trust Company (investment trust
                                  and wealth management) (1983 to 2004); Board Member, Investor
                                  Education (charitable organization) (2004-2005); Director,
                                  Viasys Health Care(3) (January 2007-June 2007)
--------------------------------------------------------------------------------------------------------------------
William N. Searcy, Jr.            Private investor since October 2003; Trustee of 8 open-end            133
(1946)                            mutual funds managed by Sun Capital Advisers, Inc. (since
Board Member since                October 1998); formerly: Pension & Savings Trust Officer,
1993                              Sprint Corporation(3) (telecommunications) (November
                                  1989-September 2003)
--------------------------------------------------------------------------------------------------------------------
Jean Gleason Stromberg            Retired; formerly: Consultant (1997-2001); Director, US               133
(1943)                            Government Accountability Office (1996-1997); Partner,
Board Member since                Fulbright & Jaworski, L.L.P. (law firm) (1978-1996);
1997                              Directorships: The William and Flora Hewlett Foundation;
                                  Service Source, Inc.; former Directorships: Mutual Fund
                                  Directors Forum (2002-2004), American Bar Retirement
                                  Association (funding vehicle for retirement plans) (1987-1990
                                  and 1994-1996)
--------------------------------------------------------------------------------------------------------------------
Robert H. Wadsworth (1940)        President, Robert H. Wadsworth & Associates, Inc. (consulting         136
Board Member since 1999           firm) (1983 to present); Director, The Phoenix Boys Choir
                                  Association
--------------------------------------------------------------------------------------------------------------------

Interested Board Member

--------------------------------------------------------------------------------------------------------------------
 Name, Year of Birth, Position                                                                   Number of Funds
 with the Trust and Length of     Business Experience and                                        in DWS Fund
 Time Served(1)                   Directorships During the Past 5 Years                          Complex Overseen
--------------------------------------------------------------------------------------------------------------------
 Axel Schwarzer(4)                Managing Director(5), Deutsche Asset Management; Head of              133
 (1958)                           Deutsche Asset Management Americas; CEO of DWS Investments;
 Board Member since               formerly: board member of DWS Investments, Germany
 2006                             (1999-2005); Head of Sales and Product Management for the
                                  Retail and Private Banking Division of Deutsche Bank in
                                  Germany (1997-1999); various strategic and operational
                                  positions for Deutsche Bank Germany Retail and Private
                                  Banking Division in the field of investment funds, tax driven
                                  instruments and asset management for corporates (1989-1996)
--------------------------------------------------------------------------------------------------------------------

Officers(6)

--------------------------------------------------------------------------------------------------------------------
 Name, Year of Birth, Position
 with the Trust and Length of     Business Experience and
 Time Served(7)                   Directorships During the Past 5 Years
--------------------------------------------------------------------------------------------------------------------
 Michael G. Clark(8) (1965)       Managing Director(5), Deutsche Asset Management (2006-present); President of
 President, 2006-present          DWS family of funds; Director, ICI Mutual Insurance Company (since
                                  October 2007); formerly: Director of Fund Board Relations (2004-2006) and
                                  Director of Product Development (2000-2004), Merrill Lynch Investment Managers;
                                  Senior Vice President Operations, Merrill Lynch Asset Management (1999-2000)
--------------------------------------------------------------------------------------------------------------------
 John Millette(9) (1962)          Director(5), Deutsche Asset Management
 Vice President and Secretary,
 1999-present
--------------------------------------------------------------------------------------------------------------------
 Paul H. Schubert(8) (1963)       Managing Director(5), Deutsche Asset Management (since July 2004); formerly:
 Chief Financial Officer,         Executive Director, Head of Mutual Fund Services and Treasurer for UBS Family
 2004-present                     of Funds (1998-2004); Vice President and Director of Mutual Fund Finance at UBS
 Treasurer, 2005-present          Global Asset Management (1994-1998)
--------------------------------------------------------------------------------------------------------------------
 Patricia DeFilippis(10) (1963)   Vice President, Deutsche Asset Management (since June 2005); formerly: Counsel,
 Assistant Secretary,             New York Life Investment Management LLC (2003-2005); legal associate, Lord,
 2005-present                     Abbett & Co. LLC (1998-2003)
--------------------------------------------------------------------------------------------------------------------
 Elisa D. Metzger(10)  (1962)     Director(5), Deutsche Asset Management (since September 2005); formerly:
 Assistant Secretary,             Counsel, Morrison and Foerster LLP (1999-2005)
 2005-present
--------------------------------------------------------------------------------------------------------------------
 Caroline Pearson(9) (1962)       Managing Director(5), Deutsche Asset Management
 Assistant Secretary,
 1997-present
--------------------------------------------------------------------------------------------------------------------
 Paul Antosca(9)                  Director(5), Deutsche Asset Management (since 2006); formerly: Vice President,
 (1957)                           The Manufacturers Life Insurance Company (U.S.A.) (1990-2006)
 Assistant Treasurer,
 2007-present
--------------------------------------------------------------------------------------------------------------------
 Jack Clark (9)                   Director(5), Deutsche Asset Management (since 2007); formerly: Vice President,
 (1967)                           State Street Corporation (2002-2007)
 Assistant Treasurer,
 2007-present
--------------------------------------------------------------------------------------------------------------------
 Kathleen Sullivan D'Eramo(9)     Director(5), Deutsche Asset Management
 (1957)
 Assistant Treasurer,
 2003-present
--------------------------------------------------------------------------------------------------------------------
 Diane Kenneally(9)               Director(5), Deutsche Asset Management
 (1966)
 Assistant Treasurer,
 2007-present
--------------------------------------------------------------------------------------------------------------------
 Jason Vazquez(10) (1972)         Vice President, Deutsche Asset Management (since 2006); formerly: AML
 Anti-Money Laundering            Operations Manager for Bear Stearns (2004-2006); Supervising Compliance
 Compliance Officer,              Principal and Operations Manager for AXA Financial (1999-2004)
 2007-present
--------------------------------------------------------------------------------------------------------------------
 Robert Kloby(10) (1962)          Managing Director(5), Deutsche Asset Management (2004-present); formerly: Chief
 Chief Compliance Officer,        Compliance Officer/Chief Risk Officer, Robeco USA (2000-2004); Vice President,
 2006-present                     The Prudential Insurance Company of America (1988-2000); E.F. Hutton and
                                  Company (1984-1988)
--------------------------------------------------------------------------------------------------------------------
 J. Christopher Jackson(10)       Director(5), Deutsche Asset Management (2006-present); formerly: Director,
 (1951)                           Senior Vice President, General Counsel, and Assistant Secretary, Hansberger
 Chief Legal Officer,             Global Investors, Inc. (1996-2006); Director, National Society of Compliance
 2006-present                     Professionals (2002-2005) (2006-2009)
--------------------------------------------------------------------------------------------------------------------
</TABLE>

(1)      The length of time served represents the year in which the Board Member
         joined the board of one or more DWS funds currently overseen by the
         Board.

(2)      Represents the year in which Ms. Driscoll was first appointed
         Chairperson of certain DWS funds.

(3)      A publicly held company with securities registered pursuant to Section
         12 of the Securities Exchange Act of 1934.

(4)      The mailing address of Axel Schwarzer is c/o Deutsche Investment
         Management Americas Inc., 345 Park Avenue, New York, New York 10154.
         Mr. Schwarzer is an interested Board Member by virtue of his positions
         with Deutsche Asset Management. As an interested person, Mr. Schwarzer
         receives no compensation from the Funds.

(5)      Executive title, not a board directorship.

(6)      As a result of their respective positions held with the Advisor, these
         individuals are considered "interested persons" of the Advisor within
         the meaning of the 1940 Act. Interested persons receive no compensation
         from the Funds.

(7)      The length of time served represents the year in which the officer was
         first elected in such capacity for one or more DWS funds.

(8)      Address:  345 Park Avenue, New York, New York 10154.

(9)      Address: One Beacon Street, Boston, Massachusetts 02108.

(10)     Address:  280 Park Avenue, New York, New York 10017.

Certain officers hold similar positions for other investment companies for which
DIMA or an affiliate serves as the Advisor.

Officer's Role with Principal Underwriter:  DWS Investments Distributors, Inc.

Paul H. Schubert:                  Vice President
Jason Vazquez:                     Vice President and AML Compliance Officer
Caroline Pearson:                  Secretary
Patricia DeFilippis:               Assistant Secretary

Board Members' Responsibilities. The officers of the Trust manage its day-to-day
operations under the direction of the Board. The primary responsibility of the
Board is to represent the interests of the Funds and to provide oversight of the
management of the Funds.

Board Committees. The Board has established the following standing committees:
Audit Committee, Nominating and Governance Committee, Contract Committee, Equity
Oversight Committee, Fixed-Income and Quant Oversight Committee, Marketing and
Shareholder Services Committee, and Operations Committee. For each committee,
the Board has adopted a written charter setting forth each committee's
responsibilities. Each committee was reconstituted effective April 1, 2008.

Audit Committee: The Audit Committee, which consists entirely of Independent
Board Members, assists the Board in fulfilling its responsibility for oversight
of (1) the integrity of the financial statements, (2) the Funds' accounting and
financial reporting policies and procedures, (3) the Funds' compliance with
legal and regulatory requirements related to accounting and financial reporting
and (4) the qualifications, independence and performance of the independent
registered public accounting firm for the Funds. It also approves and recommends
to the Board the appointment, retention or termination of the independent
registered public accounting firm for the Funds, reviews the scope of audit and
internal controls, considers and reports to the Board on matters relating to the
Funds' accounting and financial reporting practices, and performs such other
tasks as the full Board deems necessary or appropriate. The Audit Committee
receives annual representations from the independent registered public
accounting firm as to its independence. The members of the Audit Committee are
William McClayton (Chair), Kenneth C. Froewiss (Vice Chair), John W. Ballantine,
Henry P. Becton, Jr., Keith R. Fox and William N. Searcy, Jr. During the
calendar year 2007, the Audit Committee of the Funds' Board held nine (9)
meetings.

Nominating and Governance Committee: The Nominating and Governance Committee,
which consists entirely of Independent Board Members, recommends individuals for
membership on the Board, nominates officers, Board and committee chairs, vice
chairs and committee members, and oversees the operations of the Board. The
Nominating and Governance Committee also reviews recommendations by shareholders
for candidates for Board positions. Shareholders may recommend candidates for
Board positions by forwarding their correspondence by US mail or courier service
to Dawn-Marie Driscoll, P.O. Box 100176, Cape Coral, FL 33904. The members of
the Nominating and Governance Committee are Henry P. Becton, Jr. (Chair),
Rebecca W. Rimel (Vice Chair), Paul K. Freeman and William McClayton. During the
calendar year 2007, the Nominating/Corporate Governance Committee of the Funds'
Board performed similar functions and held three (3) meetings.

Contract Committee: The Contract Committee, which consists entirely of
Independent Board Members, reviews at least annually, (a) the Funds' financial
arrangements with DIMA and its affiliates, and (b) the Funds' expense ratios.
The members of the Contract Committee are Robert H. Wadsworth (Chair), Keith R.
Fox (Vice Chair), Henry P. Becton, Jr., Richard J. Herring, William McClayton
and Jean Gleason Stromberg.

Equity Oversight Committee: The Equity Oversight Committee reviews the
investment operations of those funds that primarily invest in equity securities
(except for those funds managed by a quantitative investment team). The members
of the Equity Oversight Committee are John W. Ballantine (Chair), William
McClayton (Vice Chair), Henry P. Becton, Jr., Keith R. Fox, Richard J. Herring
and Rebecca W. Rimel. During the calendar year 2007, the Equity Oversight
Committee of the Funds' Board performed similar functions and held six (6)
meetings.

Fixed-Income and Quant Oversight Committee: The Fixed-Income and Quant Oversight
Committee reviews the investment operations of those funds that primarily invest
in fixed-income securities or are managed by a quantitative investment team. The
members of the Fixed-Income and Quant Oversight Committee are William N. Searcy,
Jr. (Chair), Jean Gleason Stromberg (Vice Chair), Dawn-Marie Driscoll, Paul K.
Freeman, Kenneth C. Froewiss and Robert H. Wadsworth. During the calendar year
2007, the Fixed-Income Oversight Committee of the Funds' Board performed similar
functions and held six (6) meetings.

Marketing and Shareholder Services Committee: The Marketing and Shareholder
Services Committee reviews the Funds' marketing program, sales practices and
literature and shareholder services. The members of the Marketing and
Shareholder Services Committee are Richard J. Herring (Chair), Dawn-Marie
Driscoll (Vice Chair), Paul K. Freeman, Rebecca W. Rimel, Jean Gleason Stromberg
and Robert H. Wadsworth. During the calendar year 2007, the
Marketing/Distribution/Shareholder Service Committee of the Funds' Board
performed similar functions and held seven (7) meetings.

The Operations Committee: The Operations Committee reviews the administrative
operations, legal affairs and general compliance matters of the Funds. The
Operations Committee reviews administrative matters related to the operations of
the Funds, policies and procedures relating to portfolio transactions, custody
arrangements, fidelity bond and insurance arrangements, valuation of Fund assets
and securities and such other tasks as the full Board deems necessary or
appropriate. The Operations Committee also oversees the valuation of the Funds'
securities and other assets and determines, as needed, the fair value of Fund
securities or other assets under certain circumstances as described in the
Funds' Valuation Procedures. The Operations Committee has appointed a Valuation
Sub-Committee, which may make determinations of fair value required when the
Operations Committee is not in session. The members of the Operations Committee
are Paul K. Freeman (Chair), Dawn-Marie Driscoll (Vice Chair), John W.
Ballantine, Kenneth C. Froewiss, Rebecca W. Rimel and William N. Searcy, Jr. The
members of the Valuation Sub-Committee are Kenneth C. Froewiss (Chair), John W.
Ballantine, Dawn-Marie Driscoll (Alternate), Paul K. Freeman (Alternate),
Rebecca W. Rimel (Alternate) and William N. Searcy, Jr. (Alternate). During the
calendar year 2007, the Operations Committee and Valuation Committee performed
similar functions and each held nine (9) meetings and six (6) meetings,
respectively.

Ad Hoc Committees. In addition to the standing committees described above, from
time to time the Board may also form ad hoc committees to consider specific
issues.

Remuneration. Each Independent Board Member receives compensation from the Funds
for his or her services, which includes retainer fees and specified amounts for
various committee services and for the Board Chairperson. No additional
compensation is paid to any Independent Board Member for travel time to
meetings, attendance at directors' educational seminars or conferences, service
on industry or association committees, participation as speakers at directors'
conferences or service on special fund industry director task forces or
subcommittees. Independent Board Members do not receive any employee benefits
such as pension or retirement benefits or health insurance from the Funds or any
fund in the DWS fund complex.

Board Members who are officers, directors, employees or stockholders of Deutsche
Asset Management or its affiliates receive no direct compensation from the
Funds, although they are compensated as employees of Deutsche Asset Management,
or its affiliates, and as a result may be deemed to participate in fees paid by
the Funds. The following tables show compensation from the Funds and aggregate
compensation from all of the funds in the DWS fund complex received by each
Independent Board Member during the calendar year 2007. Mr. Schwarzer is an
interested person of the Funds and received no compensation from the Funds or
any fund in the DWS fund complex during the relevant periods.

<TABLE>
<CAPTION>
                                 Aggregate        Aggregate       Aggregate        Aggregate       Aggregate         Total
                                Compensation    Compensation     Compensation     Compensation    Compensation    Compensation
                                  from DWS        from DWS         from DWS         from DWS        from DWS     from Fund and
                                LifeCompass      LifeCompass     LifeCompass      LifeCompass     LifeCompass         DWS
Name of Board Member          Retirement Fund     2015 Fund       2020 Fund        2030 Fund       2040 Fund    Fund Complex(1)
--------------------                    -----     ---------       ---------        ---------       ---------    ---------------
<S>                                      <C>            <C>               <C>              <C>        <C>            <C>
John W. Ballantine                       $0             $0                $0               $0         $0             $215,000
Henry P. Becton, Jr.(2)                $344           $760              $766              $82         $0             $200,000
Dawn-Marie Driscoll(2)(3)              $432           $955              $962             $104         $0             $253,000
Keith R. Fox(2)                        $347           $766              $772              $83         $0             $203,000
Paul K. Freeman(4)                       $0             $0                $0               $0         $0             $265,000
Kenneth C. Froewiss(2)                 $342           $755              $761              $82         $0             $200,000
Richard J. Herring(2)                  $333           $735              $741              $80         $0             $195,000
William McClayton(5)                     $0             $0                $0               $0         $0             $205,000
Rebecca W. Rimel(2)                    $324           $716              $722              $78         $0             $194,000
William N. Searcy, Jr.(2)              $342           $755              $761              $82         $0             $200,000
Jean Gleason Stromberg(2)              $323           $712              $718              $77         $0             $189,000
Robert H. Wadsworth                      $0             $0                $0               $0         $0             $245,250

(1)      The DWS fund complex is composed of 138 funds as of December 31, 2007.

(2)      Aggregate compensation includes amounts paid to the Board Members for
         special meetings of ad hoc committees of the Board in connection with
         the consolidation of the DWS fund boards and various funds, meetings
         for considering fund expense simplification initiatives, and
         consideration of issues specific to the Funds' direct shareholders
         (i.e., those shareholders who did not purchase shares through financial
         intermediaries). Such amounts totaled $1,000 for Mr. Becton, $1,000 for
         Ms. Driscoll, $1,000 for Mr. Fox, $1,000 for Mr. Froewiss, $1,000 for
         Dr. Herring, $5,000 for Ms. Rimel, $1,000 for Mr. Searcy and $1,000 for
         Ms. Stromberg. These meeting fees were borne by the Advisor.

(3)      Includes $50,000 in annual retainer fees received by Ms. Driscoll as
         Chairperson of certain DWS funds.

(4)      Includes $25,000 paid to Dr. Freeman for numerous special meetings of
         an ad hoc committee in connection with board consolidation initiatives
         and $50,000 in annual retainer fees received by Dr. Freeman as
         Chairperson of certain DWS funds.

(5)      Does not include $15,000 to be paid to Mr. McClayton in calendar year
         2008 for numerous special meetings of an ad hoc committee of the former
         Chicago Board in connection with board consolidation initiatives.

Dr. Freeman, prior to his service as Independent Board Member, served as a board
member of certain funds in the Deutsche Bank complex ("DB Funds"). In connection
with his resignation and the resignation of certain other board members of the
DB Funds on July 30, 2002 (the "Effective Date"), which was part of a
restructuring of the boards overseeing the DB Funds, Deutsche Asset Management,
Inc. ("DAMI") agreed to recommend, and, if necessary obtain, directors and
officers ("D&O") liability insurance coverage for the prior board members,
including Dr. Freeman, that is at least as equivalent in scope and amount to the
D&O coverage provided to the prior board members for the six-year period
following the Effective Date. In the event that D&O insurance coverage is not
available in the commercial marketplace on commercially reasonable terms from a
conventional third party insurer, DeAM reserved the right to provide
substantially equivalent protection in the form of an indemnity or financial
guarantee from an affiliate of DeAM. The D&O policy in effect prior to the
Effective Date provided aggregate coverage of $25,000,000, subject to a $250,000
per claim deductible.

Board Member Ownership in the Funds

The following table shows the dollar range of equity securities beneficially
owned by each Board Member in the Funds and DWS fund complex as of June 30,
2008.


                                            Dollar Range                                      Dollar Range    Aggregate Dollar
                          Dollar Range of   of Beneficial  Dollar Range of  Dollar Range of   of Beneficial  Range of Ownership
                             Beneficial     Ownership in      Beneficial       Beneficial     Ownership in      in all Funds
                            Ownership in         DWS         Ownership in     Ownership in         DWS        Overseen by Board
                          DWS LifeCompass    LifeCompass   DWS LifeCompass  DWS LifeCompass    LifeCompass    Member in the DWS
Board Member              Retirement Fund     2015 Fund       2020 Fund        2030 Fund        2040 Fund      Fund Complex(2)
------------              ---------------     ---------       ---------        ---------        ---------      ---------------

Independent Board Member:
-------------------------

John W. Ballantine              None            None             None             None            None          Over $100,000
Henry P. Becton, Jr.        $1 - $10,000    $1 - $10,000     $1 - $10,000         None            None          Over $100,000
Dawn-Marie Driscoll          $10,001 -        $10,001 -       $10,001 -       $1 - $10,000        None          Over $100,000
                              $50,000          $50,000         $50,000
Keith R. Fox                    None            None             None             None            None          Over $100,000
Paul K. Freeman                 None            None             None             None          $10,001 -       Over $100,000
                                                                                                $50,000
Kenneth C. Froewiss             None            None             None             None            None          Over $100,000
Richard J. Herring              None            None             None             None            None          Over $100,000
William McClayton               None            None             None             None            None          Over $100,000
Rebecca W. Rimel                None            None             None             None            None          Over $100,000
William N. Searcy, Jr.          None            None             None             None            None          Over $100,000
Jean Gleason Stromberg          None          $10,001 -          None             None            None          Over $100,000
                                              $50,000
Robert H. Wadsworth             None            None             None             None            None          Over $100,000


Interested Board Member:
------------------------

Axel Schwarzer                  None            None             None             None            None          Over $100,000

(1)      Securities beneficially owned as defined under the 1934 Act include
         direct and/or indirect ownership of securities where the Board Member's
         economic interest is tied to the securities, employment ownership and
         securities when the Board Member can exert voting power, and when the
         Board Member has authority to sell the securities. The dollar ranges
         are: None, $1-$10,000, $10,001-$50,000, $50,001-$100,000 and over
         $100,000.

Ownership in Securities of the Advisor and Related Companies

As reported to the Funds, the information in the following table reflects
ownership by the Independent Board Members and their immediate family members of
certain securities as of December 31, 2007. Immediate family members can be a
spouse, children residing in the same household including step and adoptive
children, and any dependents. The securities represent ownership in the Advisor
or principal underwriter of the Funds and any persons (other than a registered
investment company) directly or indirectly controlling, controlled by, or under
common control with the Advisor or principal underwriter of the Funds (including
Deutsche Bank AG).

                                                                                   Value of        Percent of
                                   Owner and                                     Securities on     Class on an
Independent                     Relationship to                     Title of     an Aggregate       Aggregate
Board Member                      Board Member         Company        Class          Basis            Basis
------------                      ------------         -------        -----          -----            -----

John W. Ballantine                                  None
Henry P. Becton, Jr.                                None
Dawn-Marie Driscoll                                 None
Keith R. Fox                                        None
Paul K. Freeman                                     None
Kenneth C. Froewiss                                 None
Richard J. Herring                                  None
William McClayton                                   None
Rebecca W. Rimel                                    None
William N. Searcy, Jr.                              None
Jean Gleason Stromberg                              None
Robert H. Wadsworth                                 None

Securities Beneficially Owned

As of November 7, 2008, the Board Members and officers of the Trust owned, as a
group, less than 1% of the outstanding shares of each Fund.

To the best of each Fund's knowledge, as of November 7, 2008, no person owned of
record or beneficially 5% or more of any class of the Fund's outstanding shares,
except as noted below.

DWS LifeCompass Retirement Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

DWS TRUST COMPANY                                             178,202.02                    6.47% of Class A
FBO TRI-STAR CONSTRUCTION CORP
401(K) PROFIT SHARING PLAN
ATTN ASSET RECON DEPT# XXXXXX
SALEM NH  03079-1143

CITIGROUP GLOBAL MARKETS INC                                   59,669.31                    13.13% of Class B
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY  10001-2402

MORGAN STANLEY & CO.                                           31,272.93                    6.88% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

MLPF&S FOR THE SOLE BENEFIT OF                                135,788.20                    12.74% of Class C
ITS CUSTOMERS
ATTN FUND ADMINISTRATION 9E4S0
JACKSONVILLE FL  32246-6484

MORGAN STANLEY & CO.                                           62,057.93                    5.82% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

DWS TRUST COMPANY TTEE                                        498,771.01                    8.47% of Class S
FBO ARCHDIOCESAN PENSION PLAN
FOR LAY EMPLOYEES
ATTN ASSET RECON
SALEM NH  03079-1143


DWS LifeCompass 2015 Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

MORGAN STANLEY & CO.                                          212,117.21                    14.55% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

CITIGROUP GLOBAL MARKETS INC                                  130,405.64                    8.95% of Class B
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY  10001-2402

WELLS FARGO INVESTMENTS LLC                                    84,076.78                    5.77% of Class B
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN  55402-2323

MLPF&S FOR THE SOLE BENEFIT OF                                288,384.43                    12.38% of Class C
ITS CUSTOMERS
ATTN FUND ADMINISTRATION 97D93
JACKSONVILLE FL  32246-6484

MORGAN STANLEY & CO.                                          216,862.46                    9.31% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

DWS TRUST COMPANY TTEE OF THE                                1,305,574.06                   14.92% of Class S
TIFFANY & CO EE P/S AND
RETIREMENT SAVINGS PLAN
ATTN: ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY                                            1,010,566.53                   11.55% of Class S
DURHAM SCHOOL SERVICES 401(K) & PRO
ATTN ASSET RECON DEPT # XXXXXX
SALEM NH  03079-1143

DWS TRUST COMPANY TTEE                                        570,094.92                    6.52% of Class S
FBO ARCHDIOCESAN PENSION PLAN
FOR LAY EMPLOYEES
ATTN ASSET RECON
SALEM NH  03079-1143


DWS LifeCompass 2020 Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

CITIGROUP GLOBAL MARKETS INC                                  192,455.01                    12.50% of Class B
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY  10001-2402

MORGAN STANLEY & CO.                                          180,370.38                    11.72% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

WELLS FARGO INVESTMENTS LLC                                    92,425.34                    6.00% of Class B
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN  55402-2323

MLPF&S FOR THE SOLE BENEFIT OF                                258,187.34                    12.20% of Class C
ITS CUSTOMERS
ATTN FUND ADMINISTRATION 97D93
JACKSONVILLE FL  32246-6484

CITIGROUP GLOBAL MARKETS INC                                  164,973.56                    7.80% of Class C
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY  10001-2402

MORGAN STANLEY & CO.                                          140,072.17                    6.62% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

DWS TRUST COMPANY TTEE OF THE                                 845,320.69                    9.23% of Class S
TIFFANY & CO EE P/S AND
RETIREMENT SAVINGS PLAN
ATTN: ASSET RECON
SALEM NH  03079-1143



DWS LifeCompass 2030 Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

DWS TRUST COMPANY                                             182,326.23                    8.12% of Class A
FBO CROWLEY AUTOMOTIVE
GROUP 401K PLAN
ATTN SHARE RECON DEPT # XXXXXX
SALEM NH  03079-1143

DWS TRUST COMPANY                                             180,314.67                    8.03% of Class A
FBO DENTAL CARE PARTNERS INC
RETIREMENT SVGS PL A/C XXXXXX
ATTN SHARE RECON DEPT
SALEM NH  03079-1143

WELLS FARGO INVESTMENTS LLC                                   172,087.57                    7.66% of Class A
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN  55402-2323

WELLS FARGO INVESTMENTS LLC                                    15,761.21                    5.85% of Class B
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN  55402-2323

MORGAN STANLEY & CO.                                           15,576.92                    5.78% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

MORGAN STANLEY & CO.                                           75,768.47                    10.35% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ  07311

DWS TRUST COMPANY TTEE                                        184,487.17                    28.89% of Class S
FBO ARCHDIOCESAN PENSION PLAN
FOR LAY EMPLOYEES
ATTN ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY TTEE OF THE                                  65,031.94                    10.18% of Class S
UCB INC 401K PFT/SHR/PLN
ATTN SUE NAPOLITANO
ATTN: ASSET RECON
SALEM NH  03079-1143

DWS LifeCompass 2040 Fund

Name and Address of Investor Ownership                          Shares                      % of Total Shares
--------------------------------------                          ------                      -----------------

DWS TRUST COMPANY                                              73,349.54                    28.82% of Class A
FBO DENTAL CARE PARTNERS INC
RETIREMENT SVGS PL A/C XXXXXX
ATTN SHARE RECON DEPT
SALEM NH  03079-1143

DWS TRUST COMPANY                                              25,716.44                    10.10% of Class A
FBO NATIONAL AIR CARGO 401K PLAN
A/C XXXXXX
ATTN ASSET RECON DEPT
SALEM NH  03079-1143

DWS TRUST COMPANY                                              21,599.75                    8.49% of Class A
FBO HINTZSCHE EMPLOYEES PROFIT
SHARING 401K PL A/C XXXXXX
ATTN SHARE RECON DEPT
SALEM NH  03079-1143

DWS TRUST COMPANY CUST                                         8,959.73                     37.36% of Class C
FOR THE SEP IRA OF
ERIC W SCHULTZ
LEWISTON NY  14092-1950

LPL FINANCIAL SERVICES                                         1,833.15                     7.64% of Class C
A/C XXXX-XXXX
SAN DIEGO CA  92121-1968

LPL FINANCIAL SERVICES                                         1,322.81                     5.52% of Class C
A/C XXXX-XXXX
SAN DIEGO CA  92121-1968

JOHN POHAR & SONS INC                                          1,203.18                     5.02% of Class C
JOHN POHAR
FBO JOHN POHAR & SONS IN
LA SALLE IL  61301-1140

DWS TRUST COMPANY TTEE                                        115,226.29                    42.95% of Class S
FBO ARCHDIOCESAN PENSION PLAN
FOR LAY EMPLOYEES
ATTN ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY TTEE OF THE                                  67,939.26                    25.32% of Class S
UCB INC 401K PFT/SHR/PLN
ATTN SUE NAPOLITANO
ATTN: ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY TTEE OF THE                                  35,265.38                    13.14% of Class S
TIFFANY & CO EE P/S AND
RETIREMENT SAVINGS PLAN
ATTN: ASSET RECON
SALEM NH  03079-1143

DWS TRUST COMPANY TEE                                          27,013.98                    10.07% of Class S
THRIFT PLAN OF LONZA INC
ATTN: ASSET RECON
SALEM NH  03079-1143
</TABLE>





Agreement to Indemnify Independent Trustees for Certain Expenses

In connection with litigation or regulatory action related to possible improper
market timing or other improper trading activity or possible improper marketing
and sales activity in certain DWS Funds (the "Affected Funds"), DIMA has agreed
to indemnify and hold harmless the Affected Funds ("Fund Indemnification
Agreement") against any and all loss, damage, liability and expense, arising
from market timing or marketing and sales matters alleged in any enforcement
actions brought by governmental authorities involving or potentially affecting
the Affected Funds or DIMA ("Enforcement Actions") or that are the basis for
private actions brought by shareholders of the Affected Funds against the
Affected Funds, their directors and officers, DIMA and/or certain other parties
("Private Litigation"), or any proceedings or actions that may be threatened or
commenced in the future by any person (including governmental authorities),
arising from or similar to the matters alleged in the Enforcement Actions or
Private Litigation. In recognition of its undertaking to indemnify the Affected
Funds and in light of the rebuttable presumption generally afforded to
independent directors/trustees of investment companies that they have not
engaged in disabling conduct, DIMA has also agreed, subject to applicable law
and regulation, to indemnify certain (or, with respect to certain Affected
Funds, all) of the Independent Trustees of the Affected Funds, against certain
liabilities the Independent Trustees may incur from the matters alleged in any
Enforcement Actions or Private Litigation or arising from or similar to the
matters alleged in the Enforcement Actions or Private Litigation, and advance
expenses that may be incurred by the Independent Trustees in connection with any
Enforcement Actions or Private Litigation. DIMA is not, however, required to
provide indemnification and advancement of expenses: (1) with respect to any
proceeding or action which the Affected Funds' Board determines that the
Independent Trustees ultimately would not be entitled to indemnification or (2)
for any liability of the Independent Trustees to the Funds or their shareholders
to which the Independent Trustee would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of the
Independent Trustee's duties as a director or trustee of the Affected Funds as
determined in a final adjudication in such action or proceeding. The estimated
amount of any expenses that may be advanced to the Independent Trustees or
indemnity that may be payable under the indemnity agreements is currently
unknown. These agreements by DIMA will survive the termination of the investment
management agreements between DIMA and the Affected Funds.




                               TRUST ORGANIZATION

Organizational Description


The Funds are portfolios of DWS Target Date Series (the "Trust"), a
Massachusetts business trust established under a Declaration of Trust dated June
27, 2006. Effective November 1, 2007, the Trust and its funds: DWS Allocation
Series, DWS Conservative Allocation Fund, DWS Moderate Allocation Fund, DWS
Growth Allocation Fund and DWS Growth Plus Allocation Fund were renamed DWS
Target Date Series, DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund,
DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund, respectively. Prior to
February 6, 2006, DWS Target Date Series was known as Scudder Pathway Series.
The Trust's authorized capital consists of an unlimited number of shares of
beneficial interest of $0.01 par value, all of which are of one class and have
equal rights as to voting, dividends and liquidation. The Trust is comprised of
five separate Funds: DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund,
and DWS LifeCompass 2020 Fund, all of which were organized on July 1, 1994; DWS
LifeCompass 2030 Fund which was organized on November 1, 2004 and DWS
LifeCompass 2040 Fund which was organized on November 15, 2007. Each Fund
consists of an unlimited number of shares. Each Fund, except DWS LifeCompass
2040 Fund, is further divided into four classes of shares, Class S, Class A,
Class B and Class C. DWS LifeCompass 2040 Fund is divided into three classes of
shares, Class S, Class A and Class C. The Trustees have the authority to issue
additional funds to the Trust. To the extent that the Funds offer additional
share classes, these classes will be offered in a separate prospectus and have
different fees, requirements and services.


The Trustees have the authority to create additional funds and to designate the
relative rights and preferences as between the different funds. The Trustees
also may authorize the division of shares of a Fund into different classes,
which may bear different expenses. All shares issued and outstanding are fully
paid and non-assessable, transferable, have no pre-emptive or conversion rights
and are redeemable as described in the SAI and in the Fund's prospectus. Each
share has equal rights with each other share of the same class of the Fund as to
voting, dividends, exchanges, conversion features and liquidation. Shareholders
are entitled to one vote for each full share held and fractional votes for
fractional shares held. The Trustees may also terminate any Fund or class by
notice to the shareholders without shareholder approval.

The Trust is a Massachusetts business trust organized under the laws of
Massachusetts and is governed by an Amended and Restated Declaration of Trust
that was approved by shareholders in the second quarter of 2006, as may be
further amended from time to time (the "Declaration of Trust"). All shares
issued and outstanding are fully paid and non-assessable, transferable, have no
pre-emptive or conversion rights (except as may be determined by the Board of
Trustees) and are redeemable as described in the SAI and a Fund's prospectus.
Each share has equal rights with each other share of the same class of the Fund
as to voting, dividends, exchanges, conversion features and liquidation.
Shareholders are entitled to one vote for each full share held and fractional
votes for fractional shares held.

A Fund generally is not required to hold meetings of its shareholders. Under the
Declaration of Trust, however, shareholder meetings will be held in connection
with the following matters to the extent and as provided in the Declaration of
Trust and as required by applicable law: (a) the election or removal of trustees
if a meeting is called for such purpose; (b) the termination of the Trust or a
Fund; (c) an amendment of the Declaration of Trust; (d) to the same extent as
stockholders of Massachusetts business corporation as to whether or not a court
action, proceeding or claims should or should not be brought or maintained
derivatively or as a class action on behalf of the Trust or the Shareholders;
(e) a merger, consolidation or sale of assets; (f) the adoption of an investment
advisory or management contract; (g) the incorporation of the Trust or any
series; (h) any plan adopted pursuant to Rule 12b-1 (or any successor rule)
under the 1940 Act; and (i) such additional matters as may be required by law,
the Declaration of Trust, the By-laws of a Fund, or any registration of a Fund
with the SEC, or as the Trustees may determine to be necessary or desirable.
Shareholders also vote upon changes in fundamental policies or restrictions.

The Declaration of Trust provides that shareholder meeting quorum requirements
shall be established in the Trust's By-laws. The By-laws currently in effect
provide that the presence in person or by proxy of the holders of thirty percent
of the shares entitled to vote at a meeting (or of an individual series or class
if required to vote separately) shall constitute a quorum for the transaction of
business at meetings of shareholders of the Trust.

On any matter submitted to a vote of shareholders, all shares of the Trust
entitled to vote shall, except as otherwise provided in the Trust's By-Laws, be
voted in the aggregate as a single class without regard to series or classes of
shares, except (a) when required by applicable law or when the Trustees shall
have determined that the matter affects one or more series or classes of shares
materially differently, shares shall be voted by individual series or class; and
(b) when the Trustees have determined that the matter affects only the interests
of one or more series or classes, only shareholders of such series or classes
shall be entitled to vote thereon.

The Declaration of Trust provides that the Board of Trustees may, in its
discretion, establish minimum investment amounts for shareholder accounts,
impose fees on accounts that do not exceed a minimum investment amount and
involuntarily redeem shares in any such account in payment of such fees. The
Board of Trustees, in its sole discretion, also may cause the Trust to redeem
all of the shares of the Trust or one or more series or classes held by any
shareholder for any reason, to the extent permissible by the 1940 Act, including
(a) if the shareholder owns shares having an aggregate net asset value of less
than a specified minimum amount, (b) if a particular shareholder's ownership of
shares would disqualify a series from being a regulated investment company, (c)
upon a shareholder's failure to provide sufficient identification to permit the
Trust to verify the shareholder's identity, (d) upon a shareholder's failure to
pay for shares or meet or maintain the qualifications for ownership of a
particular class or series of shares, (e) if the Board of Trustees determines
(or pursuant to policies established by the Board it is determined) that share
ownership by a particular shareholder is not in the best interests of remaining
shareholders, (f) when a Fund is requested or compelled to do so by governmental
authority or applicable law and (g) upon a shareholder's failure to comply with
a request for information with respect to the direct or indirect ownership of
shares of the Trust. The Declaration of Trust also authorizes the Board of
Trustees to terminate a Fund or any class without shareholder approval, and the
Trust may suspend the right of shareholders to require the Trust to redeem
shares to the extent permissible under the 1940 Act.

Upon the termination of the Trust or any series, after paying or adequately
providing for the payment of all liabilities which may include the establishment
of a liquidating trust or similar vehicle, and upon receipt of such releases,
indemnities and refunding agreements as they deem necessary for their
protection, the Trustees may distribute the remaining Trust property or property
of the series, in cash or in kind or partly each, to the shareholders of the
Trust or the series involved, ratably according to the number of shares of the
Trust or such series held by the several shareholders of the Trust or such
series on the date of termination, except to the extent otherwise required or
permitted by the preferences and special or relative rights and privileges of
any classes of shares of a series involved, provided that any distribution to
the shareholders of a particular class of shares shall be made to such
shareholders pro rata in proportion to the number of shares of such class held
by each of them. The composition of any such distribution (e.g., cash,
securities or other assets) shall be determined by the Trust in its sole
discretion, and may be different among shareholders (including differences among
shareholders in the same series or class).

Under Massachusetts law, shareholders of a Massachusetts business trust could,
under certain circumstances, be held personally liable for obligations of a
Fund. The Declaration of Trust, however, disclaims shareholder liability for
acts or obligations of the Fund and requires that notice of such disclaimer be
given in each agreement, obligation, or instrument entered into or executed by
the Fund or the Fund's trustees. Moreover, the Declaration of Trust provides for
indemnification out of Fund property for all losses and expenses of any
shareholder held personally liable for the obligations of the Fund and the Fund
may be covered by insurance which the Trustees consider adequate to cover
foreseeable tort claims. Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability is considered by the Advisor remote and
not material, since it is limited to circumstances in which a disclaimer is
inoperative and the Fund itself is unable to meet its obligations.

                             PROXY VOTING GUIDELINES


The Fund has delegated proxy voting responsibilities to the Advisor, subject to
the Board's general oversight. The Advisor votes proxies pursuant to the proxy
voting policy and guidelines set forth in Appendix A to this SAI).

You may obtain information about how a fund voted proxies related to its
portfolio securities during the 12-month period ended June 30 by visiting the
Securities and Exchange Commission's Web site at www.sec.gov or by visiting our
Web site at: www.dws-investments.com (click on "proxy voting" at the bottom of
the page).




                              FINANCIAL STATEMENTS


The financial statements, including the portfolio of investments, of each Fund,
together with the Report of the Independent Registered Public Accounting Firm,
Financial Highlights and notes to financial statements in the Annual Report to
the Shareholders of the Fund dated August 31, 2008, are incorporated by
reference herein and are deemed to be a part of this combined Statement of
Additional Information.


                             ADDITIONAL INFORMATION

The CUSIP number of the DWS LifeCompass Retirement Fund Class S is 23337A871.

The CUSIP number of the DWS LifeCompass 2015 Fund Class S is 23337A509.

The CUSIP number of the DWS LifeCompass 2020 Fund Class S is 23337A822.

The CUSIP number of the DWS LifeCompass 2030 Fund Class S is 23337A772.

The CUSIP number of the DWS LifeCompass 2040 Fund Class S is 23337A749.

Each Fund has a fiscal year end of August 31.

This Statement of Additional Information contains the information of DWS Target
Date Series. Each Fund, through its combined prospectus, offers only its own
share classes, yet it is possible that one Fund might become liable for a
misstatement regarding another Fund. The Trustees of each Fund have considered
this, and have approved the use of this Statement of Additional Information.


The Funds' prospectus and this Statement of Additional Information omit certain
information contained in the Registration Statement which the Funds have filed
with the SEC under the Securities Act of 1933 and reference is hereby made to
the Registration Statement for further information with respect to each Fund and
the securities offered hereby. This Registration Statement and its amendments
are available for inspection by the public at the SEC in Washington, D.C.


                                                         STATEMENT OF ADDITIONAL
                                                                     INFORMATION

                                                                December 1, 2008



Investment Advisor
DEUTSCHE INVESTMENT
MANAGEMENT AMERICAS INC.
345 Park Avenue
New York, NY 10154

Administrator
DEUTSCHE INVESTMENT
MANAGEMENT AMERICAS INC.
345 Park Avenue
New York, NY 10154

Transfer Agent
DWS INVESTMENTS SERVICE
COMPANY
222 South Riverside Plaza
Chicago, IL 60606-5808

Custodian
STATE STREET BANK AND
TRUST COMPANY
225 Franklin Street
Boston, MA 02110

Distributor
DWS INVESTMENTS
DISTRIBUTORS, INC.
222 South Riverside Plaza
Chicago, IL 60606-5808

Independent Registered
Public Accounting Firm
PRICEWATERHOUSECOOPERS LLP
125 High Street
Boston, MA 02110

Legal Counsel
ROPES & GRAY LLP
One International Place
Boston, MA 02110

No person has been authorized to give any information or to make any
representations other than those contained in the Fund's prospectuses, its SAI
or the Fund's official sales literature in connection with the offering of the
Fund's shares and, if given or made, such other information or representations
must not be relied on as having been authorized by the Trust. Neither the
prospectuses nor this SAI constitute an offer in any state in which, or to any
person to whom, such offer may not lawfully be made.


                      APPENDIX A -- PROXY VOTING GUIDELINES

       Deutsche Asset Management ("AM") Proxy Voting Policy and Guidelines


I.       INTRODUCTION

AM has adopted and implemented the following policies and procedures, which it
believes are reasonably designed to ensure that proxies are voted in the best
economic interest of clients, in accordance with its fiduciary duties and local
regulation. In addition, AM's proxy policies reflect the fiduciary standards and
responsibilities for ERISA accounts.

The attached guidelines represent a set of global recommendations that were
determined by the Global Proxy Voting Sub-Committee ("the GPVSC"). These
guidelines were developed to provide AM with a comprehensive list of
recommendations that represent how AM will generally vote proxies for its
clients. The recommendations derived from the application of these guidelines
are not intended to influence the various AM legal entities either directly or
indirectly by parent or affiliated companies. In addition, the organizational
structures and documents of the various AM legal entities allows, where
necessary or appropriate, the execution by individual AM subsidiaries of the
proxy voting rights independently of any DB parent or affiliated company. This
applies in particular to non U.S. fund management companies. The individuals
that make proxy voting decisions are also free to act independently, subject to
the normal and customary supervision by the management/boards of these AM legal
entities.


II.      AM'S PROXY VOTING RESPONSIBILITIES

Proxy votes are the property of AM's advisory clients.(1) As such, AM's
authority and responsibility to vote such proxies depend upon its contractual
relationships with its clients. AM has delegated responsibility for effecting
its advisory clients' proxy votes to Institutional Shareholder Services ("ISS"),
an independent third-party proxy voting specialist. ISS votes AM's advisory
clients' proxies in accordance with AM's proxy guidelines or AM's specific
instructions. Where a client has given specific instructions as to how a proxy
should be voted, AM will notify ISS to carry out those instructions. Where no
specific instruction exists, AM will follow the procedures in voting the proxies
set forth in this document. Certain Taft-Hartley clients may direct AM to have
ISS vote their proxies in accordance with Taft Hartley voting Guidelines

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

(1)      For purposes of these Policies and Procedures, "clients" refers to
         persons or entities: for which AM serves as investment adviser or
         sub-adviser; for which AM votes proxies; and that have an economic or
         beneficial ownership interest in the portfolio securities of issuers
         soliciting such proxies.

Clients may in certain instances contract with their custodial agent and notify
AM that they wish to engage in securities lending transactions. In such cases,
it is the responsibility of the custodian to deduct the number of shares that
are on loan so that they do not get voted twice.


III.     POLICIES


1.       Proxy voting activities are conducted in the best economic interest of
         clients

AM has adopted the following policies and procedures to ensure that proxies are
voted in accordance with the best economic interest of its clients, as
determined by AM in good faith after appropriate review.


2.       The Global Proxy Voting Sub-Committee

The Global Proxy Voting Sub-Committee (the "GPVSC") is an internal working group
established by the applicable AM's Investment Risk Oversight Committee pursuant
to a written charter. The GPVSC is responsible for overseeing AM's proxy voting
activities, including:

(i)      adopting, monitoring and updating guidelines, attached as Exhibit A
         (the "Guidelines"), that provide how AM will generally vote proxies
         pertaining to a comprehensive list of common proxy voting matters;

(ii)     voting proxies where (A) the issues are not covered by specific client
         instruction or the Guidelines; (B) the Guidelines specify that the
         issues are to be determined on a case-by-case basis; or (C) where an
         exception to the Guidelines may be in the best economic interest of
         AM's clients; and

(iii)    monitoring the Proxy Vendor Oversight's proxy voting activities (see
         below).

AM's Proxy Vendor Oversight, a function of AM's Operations Group, is responsible
for coordinating with ISS to administer AM's proxy voting process and for voting
proxies in accordance with any specific client instructions or, if there are
none, the Guidelines, and overseeing ISS' proxy responsibilities in this regard.


3.       Availability of Proxy Voting Policies and Procedures and proxy voting
         record

Copies of these Policies and Procedures, as they may be updated from time to
time, are made available to clients as required by law and otherwise at AM's
discretion. Clients may also obtain information on how their proxies were voted
by AM as required by law and otherwise at AM's discretion; however, AM must not
selectively disclose its investment company clients' proxy voting records. The
Proxy Vendor Oversight will make proxy voting reports available to advisory
clients upon request. The investment companies' proxy voting records will be
disclosed to shareholders by means of publicly-available annual filings of each
company's proxy voting record for 12-month periods ended June 30 (see
"Recordkeeping" below), if so required by relevant law.


IV.      PROCEDURES

The key aspects of AM's proxy voting process are as follows:


1.       The GPVSC's Proxy Voting Guidelines

The Guidelines set forth the GPVSC's standard voting positions on a
comprehensive list of common proxy voting matters. The GPVSC has developed, and
continues to update the Guidelines based on consideration of current corporate
governance principles, industry standards, client feedback, and the impact of
the matter on issuers and the value of the investments.

The GPVSC will review the Guidelines as necessary to support the best economic
interests of AM's clients and, in any event, at least annually. The GPVSC will
make changes to the Guidelines, whether as a result of the annual review or
otherwise, taking solely into account the best economic interests of clients.
Before changing the Guidelines, the GPVSC will thoroughly review and evaluate
the proposed change and the reasons therefore, and the GPVSC Chair will ask
GPVSC members whether anyone outside of the AM organization (but within Deutsche
Bank and its affiliates) or any entity that identifies itself as a AM advisory
client has requested or attempted to influence the proposed change and whether
any member has a conflict of interest with respect to the proposed change. If
any such matter is reported to the GPVSC Chair, the Chair will promptly notify
the Conflicts of Interest Management Sub-Committee (see below) and will defer
the approval, if possible. Lastly, the GPVSC will fully document its rationale
for approving any change to the Guidelines.

The Guidelines may reflect a voting position that differs from the actual
practices of the public company(ies) within the Deutsche Bank organization or of
the investment companies for which AM or an affiliate serves as investment
adviser or sponsor. Investment companies, particularly closed-end investment
companies, are different from traditional operating companies. These differences
may call for differences in voting positions on the same matter. Further, the
manner in which AM votes investment company proxies may differ from proposals
for which a AM-advised or sponsored investment company solicits proxies from its
shareholders. As reflected in the Guidelines, proxies solicited by closed-end
(and open-end) investment companies are generally voted in accordance with the
pre-determined guidelines of ISS. See Section IV.3.B.

Funds ("Underlying Funds") in which Topiary Fund Management Fund of Funds (each,
a "Fund") invest, may from time to time seek to revise their investment terms
(i.e. liquidity, fees, etc.) or investment structure. In such event, the
Underlying Funds may require approval/consent from its investors to effect the
relevant changes. Topiary Fund Management has adopted Proxy Voting Procedures
which outline the process for these approvals.


2.       Specific proxy voting decisions made by the GPVSC

The Proxy Vendor Oversight will refer to the GPVSC all proxy proposals (i) that
are not covered by specific client instructions or the Guidelines; or (ii) that,
according to the Guidelines, should be evaluated and voted on a case-by-case
basis.

Additionally, if, the Proxy Vendor Oversight, the GPVSC Chair or any member of
the GPVSC, a portfolio manager, a research analyst or a sub-adviser believes
that voting a particular proxy in accordance with the Guidelines may not be in
the best economic interests of clients, that individual may bring the matter to
the attention of the GPVSC Chair and/or the Proxy Vendor Oversight.(2)

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

(2)      The Proxy Vendor Oversight generally monitors upcoming proxy
         solicitations for heightened attention from the press or the industry
         and for novel or unusual proposals or circumstances, which may prompt
         the Proxy Vendor Oversight to bring the solicitation to the attention
         of the GPVSC Chair. AM portfolio managers, AM research analysts and
         sub-advisers also may bring a particular proxy vote to the attention of
         the GPVSC Chair, as a result of their ongoing monitoring of portfolio
         securities held by advisory clients and/or their review of the periodic
         proxy voting record reports that the GPVSC Chair distributes to AM
         portfolio managers and AM research analysts.

If the Proxy Vendor Oversight refers a proxy proposal to the GPVSC or the GPVSC
determines that voting a particular proxy in accordance with the Guidelines is
not in the best economic interests of clients, the GPVSC will evaluate and vote
the proxy, subject to the procedures below regarding conflicts.

The GPVSC endeavors to hold meetings to decide how to vote particular proxies
sufficiently before the voting deadline so that the procedures below regarding
conflicts can be completed before the GPVSC's voting determination.


3.       Certain proxy votes may not be cast

In some cases, the GPVSC may determine that it is in the best economic interests
of its clients not to vote certain proxies. If the conditions below are met with
regard to a proxy proposal, AM will abstain from voting:

o        Neither the Guidelines nor specific client instructions cover an issue;

o        ISS does not make a recommendation on the issue;

o        The GPVSC cannot convene on the proxy proposal at issue to make a
         determination as to what would be in the client's best interest. (This
         could happen, for example, if the Conflicts of Interest Management
         Sub-committee found that there was a material conflict or if despite
         all best efforts being made, the GPVSC quorum requirement could not be
         met).

In addition, it is AM's policy not to vote proxies of issuers subject to laws of
those jurisdictions that impose restrictions upon selling shares after proxies
are voted, in order to preserve liquidity. In other cases, it may not be
possible to vote certain proxies, despite good faith efforts to do so. For
example, some jurisdictions do not provide adequate notice to shareholders so
that proxies may be voted on a timely basis. Voting rights on securities that
have been loaned to third-parties transfer to those third-parties, with loan
termination often being the only way to attempt to vote proxies on the loaned
securities. Lastly, the GPVSC may determine that the costs to the client(s)
associated with voting a particular proxy or group of proxies outweighs the
economic benefits expected from voting the proxy or group of proxies.

The Proxy Vendor Oversight will coordinate with the GPVSC Chair regarding any
specific proxies and any categories of proxies that will not or cannot be voted.
The reasons for not voting any proxy shall be documented.


4.       Conflict of Interest Procedures

A.       Procedures to Address Conflicts of Interest and Improper Influence
         ------------------------------------------------------------------

Overriding Principle. In the limited circumstances where the GPVSC votes
proxies,(3) the GPVSC will vote those proxies in accordance with what it, in
good faith, determines to be the best economic interests of AM's clients.(4)

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

(3)      As mentioned above, the GPVSC votes proxies (i) where neither a
         specific client instruction nor a Guideline directs how the proxy
         should be voted, (ii) where the Guidelines specify that an issue is to
         be determined on a case by case basis or (iii) where voting in
         accordance with the Guidelines may not be in the best economic
         interests of clients.

(4)      The Proxy Vendor Oversight, who serves as the non-voting secretary of
         the GPVSC, may receive routine calls from proxy solicitors and other
         parties interested in a particular proxy vote. Any contact that
         attempts to exert improper pressure or influence shall be reported to
         the Conflicts of Interest Management Sub-Committee.

Independence of the GPVSC. As a matter of Compliance policy, the GPVSC and the
Proxy Vendor Oversight are structured to be independent from other parts of
Deutsche Bank. Members of the GPVSC and the employee responsible for Proxy
Vendor Oversight are employees of AM. As such, they may not be subject to the
supervision or control of any employees of Deutsche Bank Corporate and
Investment Banking division ("CIB"). Their compensation cannot be based upon
their contribution to any business activity outside of AM without prior approval
of Legal and Compliance. They can have no contact with employees of Deutsche
Bank outside of the Private Client and Asset Management division ("PCAM")
regarding specific clients, business matters or initiatives without the prior
approval of Legal and Compliance. They furthermore may not discuss proxy votes
with any person outside of AM (and within AM only on a need to know basis).

Conflict Review Procedures. There will be a committee (the "Conflicts of
Interest Management Sub-Committee") established within AM that will monitor for
potential material conflicts of interest in connection with proxy proposals that
are to be evaluated by the GPVSC. Promptly upon a determination that a vote
shall be presented to the GPVSC, the GPVSC Chair shall notify the Conflicts of
Interest Management Sub-Committee. The Conflicts of Interest Management
Sub-Committee shall promptly collect and review any information deemed
reasonably appropriate to evaluate, in its reasonable judgment, if AM or any
person participating in the proxy voting process has, or has the appearance of,
a material conflict of interest. For the purposes of this policy, a conflict of
interest shall be considered "material" to the extent that a reasonable person
could expect the conflict to influence, or appear to influence, the GPVSC's
decision on the particular vote at issue. GPVSC should provide the Conflicts of
Interest Management Sub-Committee a reasonable amount of time (no less than 24
hours) to perform all necessary and appropriate reviews. To the extent that a
conflicts review can not be sufficiently completed by the Conflicts of Interest
Management Sub-Committee the proxies will be voted in accordance with the
standard guidelines.

The information considered by the Conflicts of Interest Management Sub-Committee
may include without limitation information regarding (i) AM client
relationships; (ii) any relevant personal conflict known by the Conflicts of
Interest Management Sub-Committee or brought to the attention of that
sub-committee; (iii) and any communications with members of the GPVSC (or anyone
participating or providing information to the GPVSC) and any person outside of
the AM organization (but within Deutsche Bank and its affiliates) or any entity
that identifies itself as a AM advisory client regarding the vote at issue. In
the context of any determination, the Conflicts of Interest Management
Sub-Committee may consult with, and shall be entitled to rely upon, all
applicable outside experts, including legal counsel.

Upon completion of the investigation, the Conflicts of Interest Management
Sub-Committee will document its findings and conclusions. If the Conflicts of
Interest Management Sub-Committee determines that (i) AM has a material conflict
of interest that would prevent it from deciding how to vote the proxies
concerned without further client consent or (ii) certain individuals should be
recused from participating in the proxy vote at issue, the Conflicts of Interest
Management Sub-Committee will so inform the GPVSC chair.

If notified that AM has a material conflict of interest as described above, the
GPVSC chair will obtain instructions as to how the proxies should be voted
either from (i) if time permits, the effected clients, or (ii) in accordance
with the standard guidelines. If notified that certain individuals should be
recused from the proxy vote at issue, the GPVSC Chair shall do so in accordance
with the procedures set forth below.

Note: Any AM employee who becomes aware of a potential, material conflict of
interest in respect of any proxy vote to be made on behalf of clients shall
notify Compliance. Compliance shall call a meeting of the conflict review
committee to evaluate such conflict and determine a recommended course of
action.

Procedures to be followed by the GPVSC. At the beginning of any discussion
regarding how to vote any proxy, the GPVSC Chair (or his or her delegate) will
inquire as to whether any GPVSC member (whether voting or ex officio) or any
person participating in the proxy voting process has a personal conflict of
interest or has actual knowledge of an actual or apparent conflict that has not
been reported to the Conflicts of Interest Management Sub-Committee.

The GPVSC Chair also will inquire of these same parties whether they have actual
knowledge regarding whether any director, officer or employee outside of the AM
organization (but within Deutsche Bank and its affiliates) or any entity that
identifies itself as a AM advisory client, has: (i) requested that AM, the Proxy
Vendor Oversight (or any member thereof) or a GPVSC member vote a particular
proxy in a certain manner; (ii) attempted to influence AM, the Proxy Vendor
Oversight (or any member thereof), a GPVSC member or any other person in
connection with proxy voting activities; or (iii) otherwise communicated with a
GPVSC member or any other person participating or providing information to the
GPVSC regarding the particular proxy vote at issue, and which incident has not
yet been reported to the Conflicts of Interest Management Sub- Committee.

If any such incidents are reported to the GPVSC Chair, the Chair will promptly
notify the Conflicts of Interest Management Sub-Committee and, if possible, will
delay the vote until the Conflicts of Interest Management Sub-Committee can
complete the conflicts report. If a delay is not possible, the Conflicts of
Interest Management Sub-Committee will instruct the GPVSC whether anyone should
be recused from the proxy voting process, or whether AM should vote the proxy in
accordance with the standard guidelines, seek instructions as to how to vote the
proxy at issue from ISS or, if time permits, the effected clients. These
inquiries and discussions will be properly reflected in the GPVSC's minutes.

Duty to Report. Any AM employee, including any GPVSC member (whether voting or
ex officio), that is aware of any actual or apparent conflict of interest
relevant to, or any attempt by any person outside of the AM organization (but
within Deutsche Bank and its affiliates) or any entity that identifies itself as
a AM advisory client to influence, how AM votes its proxies has a duty to
disclose the existence of the situation to the GPVSC Chair (or his or her
designee) and the details of the matter to the Conflicts of Interest Management
Sub-Committee. In the case of any person participating in the deliberations on a
specific vote, such disclosure should be made before engaging in any activities
or participating in any discussion pertaining to that vote.

Recusal of Members. The GPVSC will recuse from participating in a specific proxy
vote any GPVSC members (whether voting or ex officio) and/or any other person
who (i) are personally involved in a material conflict of interest; or (ii) who,
as determined by the Conflicts of Interest Management Sub-Committee, have actual
knowledge of a circumstance or fact that could effect their independent
judgment, in respect of such vote. The GPVSC will also exclude from
consideration the views of any person (whether requested or volunteered) if the
GPVSC or any member thereof knows, or if the Conflicts of Interest Management
Sub-Committee has determined, that such other person has a material conflict of
interest with respect to the particular proxy, or has attempted to influence the
vote in any manner prohibited by these policies.

If, after excluding all relevant GPVSC voting members pursuant to the paragraph
above, there are three or more GPVSC voting members remaining, those remaining
GPVSC members will determine how to vote the proxy in accordance with these
Policies and Procedures. If there are fewer than three GPVSC voting members
remaining, the GPVSC Chair will vote the proxy in accordance with the standard
guidelines, will obtain instructions as to how to have the proxy voted from, if
time permits, the effected clients and otherwise from ISS.

B.       Investment Companies and Affiliated Public Companies
         ----------------------------------------------------

Investment Companies. As reflected in the Guidelines, all proxies solicited by
open-end and closed-end investment companies are voted in accordance with the
pre-determined guidelines of ISS, unless the investment company client directs
AM to vote differently on a specific proxy or specific categories of proxies.
However, regarding investment companies for which AM or an affiliate serves as
investment adviser or principal underwriter, such proxies are voted in the same
proportion as the vote of all other shareholders (i.e., "mirror" or "echo"
voting). Master fund proxies solicited from feeder funds are voted in accordance
with applicable provisions of Section 12 of the Investment Company Act of 1940.

Subject to participation agreements with certain Exchange Traded Funds ("ETF")
issuers that have received exemptive orders from the U.S. Securities and
Exchange Commission allowing investing DWS funds to exceed the limits set forth
in Section 12(d)(1)(A) and (B) of the Investment Company Act of 1940, DeAM will
echo vote proxies for ETFs in which Deutsche Bank holds more than 25% of
outstanding voting shares globally when required to do so by participation
agreements and SEC orders.

Affiliated Public Companies. For proxies solicited by non-investment company
issuers of or within the Deutsche Bank organization, e.g., Deutsche bank itself,
these proxies will be voted in the same proportion as the vote of other
shareholders (i.e., "mirror" or "echo" voting).

Note: With respect to the QP Trust (not registered under the Investment Company
Act of 1940), the Fund is not required to engage in echo voting and the
investment adviser will use these Guidelines, and may determine, with respect to
the QP Trust, to vote contrary to the positions in the Guidelines, consistent
with the Fund's best interest.

C.       Other Procedures That Limit Conflicts of Interest
         -------------------------------------------------

AM and other entities in the Deutsche Bank organization have adopted a number of
policies, procedures and internal controls that are designed to avoid various
conflicts of interest, including those that may arise in connection with proxy
voting, including:

o        Deutsche Bank Americas Restricted Activities Policy. This policy
         provides for, among other things, independence of AM employees from
         CIB, and information barriers between AM and other affiliates.
         Specifically, no AM employee may be subject to the supervision or
         control of any employee of CIB. No AM employee shall have his or her
         compensation based upon his or her contribution to any business
         activity within the Bank outside of the business of AM, without the
         prior approval of Legal or Compliance. Further, no employee of CIB
         shall have any input into the compensation of a AM employee without the
         prior approval of Legal or Compliance. Under the information barriers
         section of this policy, as a general rule, AM employees who are
         associated with the investment process should have no contact with
         employees of Deutsche Bank or its affiliates, outside of PCAM,
         regarding specific clients, business matters, or initiatives. Further,
         under no circumstances should proxy votes be discussed with any
         Deutsche Bank employee outside of AM (and should only be discussed on a
         need-to-know basis within AM).

Other relevant internal policies include the Deutsche Bank Americas Code of
Professional Conduct, the Deutsche Bank Americas Confidential and Inside
Information Policy, the Deutsche Asset Management Code of Ethics, the
Sarbanes-Oxley Senior Officer Code of Ethics, and the Deutsche Bank Group Code
of Conduct. The GPVSC expects that these policies, procedures and internal
controls will greatly reduce the chance that the GPVSC (or, its members) would
be involved in, aware of or influenced by, an actual or apparent conflict of
interest.


V.       RECORDKEEPING

At a minimum, the following types of records must be properly maintained and
readily accessible in order to evidence compliance with this policy.

o        AM will maintain a record of each vote cast by AM that includes among
         other things, company name, meeting date, proposals presented, vote
         cast and shares voted.

o        The Proxy Vendor Oversight maintains records for each of the proxy
         ballots it votes. Specifically, the records include, but are not
         limited to:

         --       The proxy statement (and any additional solicitation
                  materials) and relevant portions of annual statements.
         --       Any additional information considered in the voting process
                  that may be obtained from an issuing company, its agents or
                  proxy research firms.
         --       Analyst worksheets created for stock option plan and share
                  increase analyses.
         --       Proxy Edge print-screen of actual vote election.

o        AM will retain these Policies and Procedures and the Guidelines; will
         maintain records of client requests for proxy voting information; and
         will retain any documents the Proxy Vendor Oversight or the GPVSC
         prepared that were material to making a voting decision or that
         memorialized the basis for a proxy voting decision.

o        The GPVSC also will create and maintain appropriate records documenting
         its compliance with these Policies and Procedures, including records of
         its deliberations and decisions regarding conflicts of interest and
         their resolution.

o        With respect to AM's investment company clients, ISS will create and
         maintain records of each company's proxy voting record for 12-month
         periods ended June 30. AM will compile the following information for
         each matter relating to a portfolio security considered at any
         shareholder meeting held during the period covered by the report and
         with respect to which the company was entitled to vote:

         --       The name of the issuer of the portfolio security;
         --       The exchange ticker symbol of the portfolio security (if
                  symbol is available through reasonably practicable means);
         --       The Council on Uniform Securities Identification Procedures
                  number for the portfolio security (if the number is available
                  through reasonably practicable means);
         --       The shareholder meeting date;
         --       A brief identification of the matter voted on;
         --       Whether the matter was proposed by the issuer or by a security
                  holder;
         --       Whether the company cast its vote on the matter;
         --       How the company cast its vote (e.g., for or against proposal,
                  or abstain; for or withhold regarding election of directors);
                  and
         --       Whether the company cast its vote for or against management.

Note: This list is intended to provide guidance only in terms of the records
that must be maintained in accordance with this policy. In addition, please note
that records must be maintained in accordance with the applicable AM Records
Management Policy.

With respect to electronically stored records, "properly maintained" is defined
as complete, authentic (unalterable) usable and backed-up. At a minimum, records
should be retained for a period of not less than six years (or longer, if
necessary to comply with applicable regulatory requirements), the first three
years in an appropriate AM office.


VI.      THE GPVSC'S OVERSIGHT ROLE

In addition to adopting the Guidelines and making proxy voting decisions on
matters referred to it as set forth above, the GPVSC will monitor the proxy
voting process by reviewing summary proxy information presented by ISS. The
GPVSC will use this review process to determine, among other things, whether any
changes should be made to the Guidelines. This review will take place at least
quarterly and will be documented in the GPVSC's minutes.


                  Attachment A - Global Proxy Voting Guidelines

                                Table of contents

   I     Board Of Directors And Executives

         A        Election Of Directors

         B        Classified Boards Of Directors

         C        Board And Committee Independence

         D        Liability And Indemnification Of Directors

         E        Qualifications Of Directors

         F        Removal Of Directors And Filling Of Vacancies

         G        Proposals To Fix The Size Of The Board

         H        Proposals to Restrict Chief Executive Officer's Service on
                  Multiple Boards

         I        Proposals to Restrict Supervisory Board Members Service on
                  Multiple Boards

         J        Proposals to Establish Audit Committees

   II    Capital Structure

         A        Authorization Of Additional Shares

         B        Authorization Of "Blank Check" Preferred Stock

         C        Stock Splits/Reverse Stock Splits

         D        Dual Class/Supervoting Stock

         E        Large Block Issuance

         F        Recapitalization Into A Single Class Of Stock

         G        Share Repurchases

         H        Reductions In Par Value

   III   Corporate Governance Issues

         A        Confidential Voting

         B        Cumulative Voting

         C        Supermajority Voting Requirements

         D        Shareholder Right To Vote

   IV    Compensation

         A        Establishment of a Remuneration Committee

         B        Executive And Director Stock Option Plans

         C        Employee Stock Option/Purchase Plans

         D        Golden Parachutes

         E        Proposals To Limit Benefits Or Executive Compensation

         F        Option Expensing

         G        Management board election and motion

         H        Remuneration (variable pay)

         I        Long-term incentive plans

         J        Shareholder Proposals Concerning "Pay For Superior
                  Performance"

         K        Executive Compensation Advisory

   V     Anti-Takeover Related Issues

         A        Shareholder Rights Plans ("Poison Pills")

         B        Reincorporation

         C        Fair-Price Proposals

         D        Exemption From State Takeover Laws

         E        Non-Financial Effects Of Takeover Bids

   VI    Mergers & Acquisitions

   VII   Social & Political Issues

         A        Labor & Human Rights

         B        Diversity & Equality

         C        Health & Safety

         D        Government/Military

         E        Tobacco

   VIII  Environmental Issues

   IX    Miscellaneous Items

         A        Ratification Of Auditors

         B        Limitation Of Non-Audit Services Provided By Independent
                  Auditor

         C        Audit Firm Rotation

         D        Transaction Of Other Business

         E        Motions To Adjourn The Meeting

         F        Bundled Proposals

         G        Change Of Company Name

         H        Proposals Related To The Annual Meeting

         I        Reimbursement Of Expenses Incurred From Candidate Nomination

         J        Investment Company Proxies

         K        International Proxy Voting



These Guidelines may reflect a voting position that differs from the actual
practices of the public company (ies) within the Deutsche Bank organization or
of the investment companies for which AM or an affiliate serves as investment
adviser or sponsor.

NOTE: Because of the unique structure and regulatory scheme applicable to
closed-end investment companies, the voting guidelines (particularly those
related to governance issues) generally will be inapplicable to holdings of
closed-end investment companies. As a result, determinations on the appropriate
voting recommendation for closed-end investment company shares will be made on a
case-by-case basis.


I.       Board of Directors and Executives


A.       Election of Directors

Routine: AM Policy is to vote "for" the uncontested election of directors. Votes
for a director in an uncontested election will be withheld in cases where a
director has shown an inability to perform his/her duties in the best interests
of the shareholders.

Proxy contest: In a proxy contest involving election of directors, a
case-by-case voting decision will be made based upon analysis of the issues
involved and the merits of the incumbent and dissident slates of directors. AM
will incorporate the decisions of a third party proxy research vendor,
currently, Institutional Shareholder Services ("ISS") subject to review by the
Proxy Voting Sub-Committee (GPVSC) as set forth in the AM's Proxy Voting
Policies and Procedures.

Rationale: The large majority of corporate directors fulfill their fiduciary
obligation and in most cases support for management's nominees is warranted. As
the issues relevant to a contested election differ in each instance, those cases
must be addressed as they arise.


B.       Classified Boards of Directors

AM policy is to vote against proposals to classify the board and for proposals
to repeal classified boards and elect directors annually.

Rationale: Directors should be held accountable on an annual basis. By
entrenching the incumbent board, a classified board may be used as an
anti-takeover device to the detriment of the shareholders in a hostile take-over
situation.


C.       Board and Committee Independence

AM policy is to vote:

1.       "For" proposals that require that a certain percentage (majority up to
         66 2/3%) of members of a board of directors be comprised of independent
         or unaffiliated directors.

2.       "For" proposals that require all members of a company's compensation,
         audit, nominating, or other similar committees be comprised of
         independent or unaffiliated directors.

3.       "Against" shareholder proposals to require the addition of special
         interest, or constituency, representatives to boards of directors.

4.       "For" separation of the Chairman and CEO positions.

5.       "Against" proposals that require a company to appoint a Chairman who is
         an independent director.

Rationale: Board independence is a cornerstone of effective governance and
accountability. A board that is sufficiently independent from management assures
that shareholders' interests are adequately represented. However, the Chairman
of the board must have sufficient involvement in and experience with the
operations of the company to perform the functions required of that position and
lead the company.

No director qualifies as `independent' unless the board of directors
affirmatively determines that the director has no material relationship with the
listed company (either directly or as a partner, shareholder or officer of an
organization that has a relationship with the company).

Whether a director is in fact not "independent" will depend on the laws and
regulations of the primary market for the security and the exchanges, if any, on
which the security trades.


D.       Liability and Indemnification of Directors

AM policy is to vote "for" management proposals to limit directors' liability
and to broaden the indemnification of directors, unless broader indemnification
or limitations on directors' liability would effect shareholders' interests in
pending litigation.

Rationale: While shareholders want directors and officers to be responsible for
their actions, it is not in the best interests of the shareholders for them to
be to risk averse. If the risk of personal liability is too great, companies may
not be able to find capable directors willing to serve. We support expanding
coverage only for actions taken in good faith and not for serious violations of
fiduciary obligation or negligence.


E.       Qualifications of Directors

AM policy is to follow management's recommended vote on either management or
shareholder proposals that set retirement ages for directors or require specific
levels of stock ownership by directors.

Rationale: As a general rule, the board of directors, and not the shareholders,
is most qualified to establish qualification policies.


F.       Removal of Directors and Filling of Vacancies

AM policy is to vote "against" proposals that include provisions that directors
may be removed only for cause or proposals that include provisions that only
continuing directors may fill board vacancies.

Rationale: Differing state statutes permit removal of directors with or without
cause. Removal of directors for cause usually requires proof of self-dealing,
fraud or misappropriation of corporate assets, limiting shareholders' ability to
remove directors except under extreme circumstances. Removal without cause
requires no such showing.

Allowing only incumbent directors to fill vacancies can serve as an
anti-takeover device, precluding shareholders from filling the board until the
next regular election.


G.       Proposals to Fix the Size of the Board

AM policy is to vote:

1.       "For" proposals to fix the size of the board unless: (a) no specific
         reason for the proposed change is given; or (b) the proposal is part of
         a package of takeover defenses.

2.       "Against" proposals allowing management to fix the size of the board
         without shareholder approval.

Rationale: Absent danger of anti-takeover use, companies should be granted a
reasonable amount of flexibility in fixing the size of its board.


H.       Proposals to Restrict Chief Executive Officer's Service on Multiple
         Boards

AM policy is to vote "For" proposals to restrict a Chief Executive Officer from
serving on more than three outside boards of directors.

Rationale: Chief Executive Officer must have sufficient time to ensure that
shareholders' interests are represented adequately.

Note: A director's service on multiple closed-end fund boards within a fund
complex are treated as service on a single Board for the purpose of the proxy
voting guidelines.


I.       Proposals to Restrict Supervisory Board Members Service on Multiple
         Boards (For FFT Securities)

AM policy is to vote "for" proposals to restrict a Supervisory Board Member from
serving on more than five supervisory boards.

Rationale: We consider a strong, independent and knowledgeable supervisory board
as important counter-balance to executive management to ensure that the
interests of shareholders are fully reflected by the company.

Full information should be disclosed in the annual reports and accounts to allow
all shareholders to judge the success of the supervisory board controlling their
company.

Supervisory Board Member must have sufficient time to ensure that shareholders'
interests are represented adequately.

Note: A director's service on multiple closed-end fund boards within a fund
complex are treated as service on a single Board for the purpose of the proxy
voting guidelines.


J.       Proposals to Establish Audit Committees (For FFT and U.S. Securities)

AM policy is to vote "for" proposals that require the establishment of audit
committees.

Rationale: The audit committee should deal with accounting and risk management
related questions, verifies the independence of the auditor with due regard to
possible conflicts of interest. It also should determine the procedure of the
audit process.


II.      Capital Structure

A.       Authorization of Additional Shares (For U.S. Securities)

AM policy is to vote "for" proposals to increase the authorization of existing
classes of stock that do not exceed a 3:1 ratio of shares authorized to shares
outstanding for a large cap company, and do not exceed a 4:1 ratio of shares
authorized to shares outstanding for a small-midcap company (companies having a
market capitalization under one billion U.S. dollars.).

Rationale: While companies need an adequate number of shares in order to carry
on business, increases requested for general financial flexibility must be
limited to protect shareholders from their potential use as an anti-takeover
device. Requested increases for specifically designated, reasonable business
purposes (stock split, merger, etc.) will be considered in light of those
purposes and the number of shares required.


B.       Authorization of "Blank Check" Preferred Stock (For U.S. Securities)

AM policy is to vote:

1.       "Against" proposals to create blank check preferred stock or to
         increase the number of authorized shares of blank check preferred stock
         unless the company expressly states that the stock will not be used for
         anti-takeover purposes and will not be issued without shareholder
         approval.

2.       "For" proposals mandating shareholder approval of blank check stock
         placement.

Rationale: Shareholders should be permitted to monitor the issuance of classes
of preferred stock in which the board of directors is given unfettered
discretion to set voting, dividend, conversion and other rights for the shares
issued.


C.       Stock Splits/Reverse Stock Splits

AM policy is to vote "for" stock splits if a legitimate business purpose is set
forth and the split is in the shareholders' best interests. A vote is cast "for"
a reverse stock split only if the number of shares authorized is reduced in the
same proportion as the reverse split or if the effective increase in authorized
shares (relative to outstanding shares) complies with the proxy guidelines for
common stock increases (see, Section II.A, above.)

Rationale: Generally, stock splits do not detrimentally effect shareholders.
Reverse stock splits, however, may have the same result as an increase in
authorized shares and should be analyzed accordingly.


D.       Dual Class/Supervoting Stock

AM policy is to vote "against" proposals to create or authorize additional
shares of super-voting stock or stock with unequal voting rights.

Rationale: The "one share, one vote" principal ensures that no shareholder
maintains a voting interest exceeding their equity interest in the company.


E.       Large Block Issuance (For U.S. Securities)

AM policy is to address large block issuances of stock on a case-by-case basis,
incorporating the recommendation of an independent third party proxy research
firm (currently ISS) subject to review by the GPVSC as set forth in AM's Proxy
Policies and Procedures.

Additionally, AM supports proposals requiring shareholder approval of large
block issuances.

Rationale: Stock issuances must be reviewed in light of the business
circumstances leading to the request and the potential impact on shareholder
value.


F.       Recapitalization into a Single Class of Stock

AM policy is to vote "for" recapitalization plans to provide for a single class
of common stock, provided the terms are fair, with no class of stock being
unduly disadvantaged.

Rationale: Consolidation of multiple classes of stock is a business decision
that may be left to the board and/management if there is no adverse effect on
shareholders.


G.       Share Repurchases

AM policy is to vote "for" share repurchase plans provided all shareholders are
able to participate on equal terms.

Rationale: Buybacks are generally considered beneficial to shareholders because
they tend to increase returns to the remaining shareholders.


H.       Reductions in Par Value

AM policy is to vote "for" proposals to reduce par value, provided a legitimate
business purpose is stated (e.g., the reduction of corporate tax
responsibility.)

Rationale: Usually, adjustments to par value are a routine financial decision
with no substantial impact on shareholders.


III.     Corporate Governance Issues


A.       Confidential Voting

AM policy is to vote "for" proposals to provide for confidential voting and
independent tabulation of voting results and to vote "against" proposals to
repeal such provisions.

Rationale: Confidential voting protects the privacy rights of all shareholders.
This is particularly important for employee-shareholders or shareholders with
business or other affiliations with the company, who may be vulnerable to
coercion or retaliation when opposing management. Confidential voting does not
interfere with the ability of corporations to communicate with all shareholders,
nor does it prohibit shareholders from making their views known directly to
management.


B.       Cumulative Voting (For U.S. Securities)

AM policy is to vote "against" shareholder proposals requesting cumulative
voting and "for" management proposals to eliminate it. The protections afforded
shareholders by cumulative voting are not necessary when a company has a history
of good performance and does not have a concentrated ownership interest.
Accordingly, a vote is cast "against" cumulative voting and "for" proposals to
eliminate it if:

a)       The company has a five year return on investment greater than the
         relevant industry index,

b)       All directors and executive officers as a group beneficially own less
         than 10% of the outstanding stock, and

c)       No shareholder (or voting block) beneficially owns 15% or more of the
         company.

Thus, failure of any one of the three criteria results in a vote for cumulative
voting in accordance with the general policy.

Rationale: Cumulative voting is a tool that should be used to ensure that
holders of a significant number of shares may have board representation;
however, the presence of other safeguards may make their use unnecessary.


C.       Supermajority Voting Requirements

AM policy is to vote "against" management proposals to require a supermajority
vote to amend the charter or bylaws and to vote "for" shareholder proposals to
modify or rescind existing supermajority requirements.

*Exception made when company holds a controlling position and seeks to lower
threshold to maintain control and/or make changes to corporate by-laws.

Rationale: Supermajority voting provisions violate the democratic principle that
a simple majority should carry the vote. Setting supermajority requirements may
make it difficult or impossible for shareholders to remove egregious by-law or
charter provisions. Occasionally, a company with a significant insider held
position might attempt to lower a supermajority threshold to make it easier for
management to approve provisions that may be detrimental to shareholders. In
that case, it may not be in the shareholders interests to lower the
supermajority provision.


D.       Shareholder Right to Vote

AM policy is to vote "against" proposals that restrict the right of shareholders
to call special meetings, amend the bylaws, or act by written consent. Policy is
to vote "for" proposals that remove such restrictions.

Rationale: Any reasonable means whereby shareholders can make their views known
to management or effect the governance process should be supported.


IV.      Compensation

Annual Incentive Plans or Bonus Plans are often submitted to shareholders for
approval. These plans typically award cash to executives based on company
performance. Deutsche Bank believes that the responsibility for executive
compensation decisions rest with the board of directors and/or the compensation
committee, and its policy is not to second-guess the board's award of cash
compensation amounts to executives unless a particular award or series of awards
is deemed excessive. If stock options are awarded as part of these bonus or
incentive plans, the provisions must meet Deutsche Bank's criteria regarding
stock option plans, or similar stock-based incentive compensation schemes, as
set forth below.


A.       Establishment of a Remuneration Committee (For FFT Securities)

AM policy is to vote "for" proposals that require the establishment of a
remuneration committee.

Rationale: Corporations should disclose in each annual report or proxy statement
their policies on remuneration. Essential details regarding executive
remuneration including share options, long-term incentive plans and bonuses,
should be disclosed in the annual report, so that investors can judge whether
corporate pay policies and practices meet the standard.

The remuneration committee shall not comprise any board members and should be
sensitive to the wider scene on executive pay. It should ensure that
performance-based elements of executive pay are designed to align the interests
of shareholders.


B.       Executive and Director Stock Option Plans

AM policy is to vote "for" stock option plans that meet the following criteria:

(1)      The resulting dilution of existing shares is less than (a) 15 percent
         of outstanding shares for large capital corporations or (b) 20 percent
         of outstanding shares for small-mid capital companies (companies having
         a market capitalization under one billion U.S. dollars.)

(2)      The transfer of equity resulting from granting options at less than FMV
         is no greater than 3% of the over-all market capitalization of large
         capital corporations, or 5% of market cap for small-mid capital
         companies.

(3)      The plan does not contain express repricing provisions and, in the
         absence of an express statement that options will not be repriced; the
         company does not have a history of repricing options.

(4)      The plan does not grant options on super-voting stock.

AM will support performance-based option proposals as long as a) they do not
mandate that all options granted by the company must be performance based, and
b) only certain high-level executives are subject to receive the performance
based options.

AM will support proposals to eliminate the payment of outside director pensions.

Rationale: Determining the cost to the company and to shareholders of
stock-based incentive plans raises significant issues not encountered with
cash-based compensation plans. These include the potential dilution of existing
shareholders' voting power, the transfer of equity out of the company resulting
from the grant and execution of options at less than FMV and the authority to
reprice or replace underwater options. Our stock option plan analysis model
seeks to allow reasonable levels of flexibility for a company yet still protect
shareholders from the negative impact of excessive stock compensation.
Acknowledging that small mid-capital corporations often rely more heavily on
stock option plans as their main source of executive compensation and may not be
able to compete with their large capital competitors with cash compensation, we
provide slightly more flexibility for those companies.


C.       Employee Stock Option/Purchase Plans

AM policy is to vote for employee stock purchase plans (ESPP's) when the plan
complies with Internal Revenue Code 423, allowing non-management employees to
purchase stock at 85% of FMV.

AM policy is to vote "for" employee stock option plans (ESOPs) provided they
meet the standards for stock option plans in general. However, when computing
dilution and transfer of equity, ESOPs are considered independently from
executive and director option plans.

Rationale: ESOPs and ESPP's encourage rank-and-file employees to acquire an
ownership stake in the companies they work for and have been shown to promote
employee loyalty and improve productivity.


D.       Golden Parachutes

AM policy is to vote "for" proposals to require shareholder approval of golden
parachutes and for proposals that would limit golden parachutes to no more than
three times base compensation. Policy is to vote "against" more restrictive
shareholder proposals to limit golden parachutes.

Rationale: In setting a reasonable limitation, AM considers that an effective
parachute should be less attractive than continued employment and that the IRS
has opined that amounts greater than three times annual salary, are excessive.


E.       Proposals to Limit Benefits or Executive Compensation

AM policy is to vote "against"

1.       Proposals to limit benefits, pensions or compensation and

2.       Proposals that request or require disclosure of executive compensation
         greater than the disclosure required by Securities and Exchange
         Commission (SEC) regulations.

Rationale: Levels of compensation and benefits are generally considered to be
day-to-day operations of the company, and are best left unrestricted by
arbitrary limitations proposed by shareholders.


F.       Option Expensing

AM policy is to support proposals requesting companies to expense stock options.

Rationale: Although companies can choose to expense options voluntarily, the
Financial Accounting Standards Board (FASB) does not yet require it, instead
allowing companies to disclose the theoretical value of options as a footnote.
Because the expensing of stock options lowers earnings, most companies elect not
to do so. Given the fact that options have become an integral component of
compensation and their exercise results in a transfer of shareholder value, AM
agrees that their value should not be ignored and treated as "no cost"
compensation. The expensing of stock options would promote more modest and
appropriate use of stock options in executive compensation plans and present a
more accurate picture of company operational earnings.


G.        Management board election and motion (For FFT Securities)

AM policy is to vote "against":

o        the election of board members with positions on either remuneration or
         audit committees;

o        the election of supervisory board members with too many supervisory
         board mandates;

o        "automatic" election of former board members into the supervisory
         board.

Rationale: Management as an entity, and each of its members, are responsible for
all actions of the company, and are - subject to applicable laws and regulations
- accountable to the shareholders as a whole for their actions.

Sufficient information should be disclosed in the annual company report and
account to allow shareholders to judge the success of the company.


H.       Remuneration (variable pay): (For FFT Securities)

Executive remuneration for Management Board

AM policy is to vote "for" remuneration for Management Board that is transparent
and linked to results.

Rationale: Executive compensation should motivate management and align the
interests of management with the shareholders. The focus should be on criteria
that prevent excessive remuneration; but enable the company to hire and retain
first-class professionals.

Shareholder interests are normally best served when management is remunerated to
optimise long-term returns. Criteria should include suitable measurements like
return on capital employed or economic value added.

Interests should generally also be correctly aligned when management own shares
in the company - even more so if these shares represent a substantial portion of
their own wealth.

Its disclosure shall differentiate between fixed pay, variable (performance
related) pay and long-term incentives, including stock option plans with
valuation ranges as well as pension and any other significant arrangements.

Executive remuneration for Supervisory Board

AM policy is to vote "for" remuneration for Supervisory Board that is at least
50% in fixed form.

Rationale: It would normally be preferable if performance linked compensation
were not based on dividend payments, but linked to suitable result based
parameters. Consulting and procurement services should also be published in the
company report.


I.       Long-term incentive plans (For FFT Securities)

AM policy is to vote "for" long-term incentive plans for members of a management
board that reward for above average company performance.

Rationale: Incentive plans will normally be supported if they:

o        directly align the interests of members of management boards with those
         of shareholders;

o        establish challenging performance criteria to reward only above average
         performance;

o        measure performance by total shareholder return in relation to the
         market or a range of comparable companies;

o        are long-term in nature and encourage long-term ownership of the shares
         once exercised through minimum holding periods;

o        do not allow a repricing of the exercise price in stock option plans.


J.       Shareholder Proposals Concerning "Pay for Superior Performance"

AM policy is to address pay for superior performance proposals on a case-by-case
basis, incorporating the recommendation of an independent third party proxy
research firm (currently ISS) subject to review by the GPVSC as set forth in
AM's Proxy Policies and Procedures.

Rationale: While AM agrees that compensation issues are better left to the
discretion of management, they appreciate the need to monitor for excessive
compensation practices on a case by case basis. If, after a review of the ISS
metrics, AM is comfortable with ISS's applying this calculation and will vote
according to their recommendation.


K.       Executive Compensation Advisory

AM policy is to follow management's recommended vote on shareholder proposals to
propose an advisory resolution seeking to ratify the compensation of the
company's named executive officers (NEOs) on an annual basis.

Rationale: AM believes that controls exist within senior management and
corporate compensation committees, ensuring fair compensation to executives.
This might allow shareholders to require approval for all levels of management's
compensation.


V.       Anti-Takeover Related Issues


A.       Shareholder Rights Plans ("Poison Pills")

AM policy is to vote "for" proposals to require shareholder ratification of
poison pills or that request boards to redeem poison pills, and to vote
"against" the adoption of poison pills if they are submitted for shareholder
ratification.

Rationale: Poison pills are the most prevalent form of corporate takeover
defenses and can be (and usually are) adopted without shareholder review or
consent. The potential cost of poison pills to shareholders during an attempted
takeover outweighs the benefits.


B.       Reincorporation

AM policy is to examine reincorporation proposals on a case-by-case basis. The
voting decision is based on: (1) differences in state law between the existing
state of incorporation and the proposed state of incorporation; and (2)
differences between the existing and the proposed charter/bylaws/articles of
incorporation and their effect on shareholder rights. If changes resulting from
the proposed reincorporation violate the corporate governance principles set
forth in these guidelines, the reincorporation will be deemed contrary to
shareholder's interests and a vote cast "against."

Rationale: Reincorporations can be properly analyzed only by looking at the
advantages and disadvantages to their shareholders. Care must be taken that
anti-takeover protection is not the sole or primary result of a proposed change.


C.       Fair-Price Proposals

AM policy is to vote "for" management fair-price proposals, provided that: (1)
the proposal applies only to two-tier offers; (2) the proposal sets an objective
fair-price test based on the highest price that the acquirer has paid for a
company's shares; (3) the supermajority requirement for bids that fail the
fair-price test is no higher than two-thirds of the outstanding shares; (4) the
proposal contains no other anti-takeover provisions or provisions that restrict
shareholders rights.

A vote is cast for shareholder proposals that would modify or repeal existing
fair-price requirements that do not meet these standards.

Rationale: While fair price provisions may be used as anti-takeover devices, if
adequate provisions are included, they provide some protection to shareholders
who have some say in their application and the ability to reject those
protections if desired.


D.       Exemption from state takeover laws

AM policy is to vote "for" shareholder proposals to opt out of state takeover
laws and to vote "against" management proposals requesting to opt out of state
takeover laws.

Rationale: Control share statutes, enacted at the state level, may harm
long-term share value by entrenching management. They also unfairly deny certain
shares their inherent voting rights.


E.       Non-financial Effects of Takeover Bids

Policy is to vote "against" shareholder proposals to require consideration of
non-financial effects of merger or acquisition proposals.

Rationale: Non-financial effects may often be subjective and are secondary to
AM's stated purpose of acting in its client's best economic interest.


VI.      Mergers & Acquisitions

Evaluation of mergers, acquisitions and other special corporate transactions
(i.e., takeovers, spin-offs, sales of assets, reorganizations, restructurings
and recapitalizations) are performed on a case-by-case basis incorporating
information from an independent proxy research source (currently ISS.)
Additional resources including portfolio management and research analysts may be
considered as set forth in AM's Policies and Procedures.


VII.     Social, Environmental & Political Issues

Social and environmental issues are becoming increasingly important to corporate
success. We incorporate social and environmental considerations into both our
investment decisions and our proxy voting decisions - particularly if the
financial performance of the company could be impacted.

With increasing frequency, shareholder proposals are submitted relating to
social and political responsibility issues. Almost universally, the company
management will recommend a vote "against" these proposals. These types of
proposals cover an extremely wide range of issues. Many of the issues tend to be
controversial and are subject to more than one reasonable, yet opposing, theory
of support. More so than with other types of proxy proposals, social and
political responsibility issues may not have a connection to the economic and
corporate governance principles effecting shareholders' interests. AM's policy
regarding social and political responsibility issues, as with any other issue,
is designed to protect our client shareholders' economic interests.

Occasionally, a distinction is made between a shareholder proposal requesting
direct action on behalf of the board and a request for a report on (or
disclosure of) some information. In order to avoid unduly burdening any company
with reporting requirements, AM's policy is to vote against shareholder
proposals that demand additional disclosure or reporting than is required by the
Securities and Exchange Commission unless it appears there is a legitimate issue
and the company has not adequately addressed shareholders' concerns.


A.       Labor & Human Rights

AM policy is to vote "against" adopting global codes of conduct or workplace
standards exceeding those mandated by law.

Rationale: Additional requirements beyond those mandated by law are deemed
unnecessary and potentially burdensome to companies


B.       Diversity & Equality

1.       AM policy is to vote "against" shareholder proposals to force equal
         employment opportunity, affirmative action or board diversity.

Rationale: Compliance with State and Federal legislation along with information
made available through filings with the EEOC provides sufficient assurance that
companies act responsibly and make information public.

2.       AM policy is also to vote "against" proposals to adopt the Mac Bride
         Principles. The Mac Bride Principles promote fair employment,
         specifically regarding religious discrimination.

Rationale: Compliance with the Fair Employment Act of 1989 makes adoption of the
Mac Bride Principles redundant. Their adoption could potentially lead to charges
of reverse discrimination.


C.       Health & Safety

1.       AM policy is to vote "against" adopting a pharmaceutical price
         restraint policy or reporting pricing policy changes.

Rationale: Pricing is an integral part of business for pharmaceutical companies
and should not be dictated by shareholders (particularly pursuant to an
arbitrary formula.) Disclosing pricing policies may also jeopardize a company's
competitive position in the marketplace.

2.       AM policy is to vote "against" shareholder proposals to control the use
         or labeling of and reporting on genetically engineered products.

Rationale: Additional requirements beyond those mandated by law are deemed
unnecessary and potentially burdensome to companies.


D.       Government/Military

1.       AM policy is to vote against shareholder proposals regarding the
         production or sale of military arms or nuclear or space-based weapons,
         including proposals seeking to dictate a company's interaction with a
         particular foreign country or agency.

Rationale: Generally, management is in a better position to determine what
products or industries a company can and should participate in. Regulation of
the production or distribution of military supplies is, or should be, a matter
of government policy.

2.       AM policy is to vote "against" shareholder proposals regarding
         political contributions and donations.

Rationale: The Board of Directors and Management, not shareholders, should
evaluate and determine the recipients of any contributions made by the company.

3.       AM policy is to vote "against" shareholder proposals regarding
         charitable contributions and donations.

Rationale: The Board of Directors and Management, not shareholders, should
evaluate and determine the recipients of any contributions made by the company.


E.       Tobacco

1.       AM policy is to vote "against" shareholder proposals requesting
         additional standards or reporting requirements for tobacco companies as
         well as "against" requesting companies to report on the intentional
         manipulation of nicotine content.

Rationale: Where a tobacco company's actions meet the requirements of legal and
industry standards, imposing additional burdens may detrimentally effect a
company's ability to compete. The disclosure of nicotine content information
could affect the company's rights in any pending or future litigation.

2.       Shareholder requests to spin-off or restructure tobacco businesses will
         be opposed.

Rationale: These decisions are more appropriately left to the Board and
management, and not to shareholder mandate.


VIII.    Environmental Issues

AM policy is to follow management's recommended vote on CERES Principles or
other similar environmental mandates (e.g., those relating to Greenhouse gas
emissions or the use of nuclear power).

Rationale: Environmental issues are extensively regulated by outside agencies
and compliance with additional requirements often involves significant cost to
companies.


IX.      Miscellaneous Items


A.       Ratification of Auditors

AM policy is to vote "for" a) the management recommended selection of auditors
and b) proposals to require shareholder approval of auditors.

Rationale: Absent evidence that auditors have not performed their duties
adequately, support for management's nomination is warranted.

B.       Limitation of non-audit services provided by independent auditor

AM policy is to support proposals limiting non-audit fees to 50% of the
aggregate annual fees earned by the firm retained as a company's independent
auditor.

Rationale: In the wake of financial reporting problems and alleged audit
failures at a number of companies, AM supports the general principle that
companies should retain separate firms for audit and consulting services to
avoid potential conflicts of interest. However, given the protections afforded
by the recently enacted Sarbanes-Oxley Act of 2002 (which requires Audit
Committee pre-approval for non-audit services and prohibits auditors from
providing specific types of services), and the fact that some non-audit services
are legitimate audit-related services, complete separation of audit and
consulting fees may not be warranted. A reasonable limitation is appropriate to
help ensure auditor independence and it is reasonable to expect that audit fees
exceed non-audit fees.

C.       Audit firm rotation

AM policy is to support proposals seeking audit firm rotation unless the
rotation period sought is less than five years.

Rationale: While the Sarbanes-Oxley Act mandates that the lead audit partner be
switched every five years, AM believes that rotation of the actual audit firm
would provide an even stronger system of checks and balances on the audit
function.

D.       Transaction of Other Business

AM policy is to vote against "transaction of other business" proposals.

Rationale: This is a routine item to allow shareholders to raise other issues
and discuss them at the meeting. As the nature of these issues may not be
disclosed prior to the meeting, we recommend a vote against these proposals.
This protects shareholders voting by proxy (and not physically present at a
meeting) from having action taken at the meeting that they did not receive
proper notification of or sufficient opportunity to consider.

E.       Motions to Adjourn the Meeting

AM Policy is to vote against proposals to adjourn the meeting.

Rationale: Management may seek authority to adjourn the meeting if a favorable
outcome is not secured. Shareholders should already have had enough information
to make a decision. Once votes have been cast, there is no justification for
management to continue spending time and money to press shareholders for
support.

F.       Bundled Proposals

AM policy is to vote against bundled proposals if any bundled issue would
require a vote against it if proposed individually.

Rationale: Shareholders should not be forced to "take the good with the bad" in
cases where the proposals could reasonably have been submitted separately.

G.       Change of Company Name

AM policy is to support management on proposals to change the company name.

Rationale: This is generally considered a business decision for a company.

H.       Proposals Related to the Annual Meeting

AM Policy is to vote in favor of management for proposals related to the conduct
of the annual meeting (meeting time, place, etc.)

Rationale: These are considered routine administrative proposals.

I.       Reimbursement of Expenses Incurred from Candidate Nomination

AM policy is to follow management's recommended vote on shareholder proposals
related to the amending of company bylaws to provide for the reimbursement of
reasonable expenses incurred in connection with nominating one or more
candidates in a contested election of directors to the corporation's board of
directors.

Rationale: Corporations should not be liable for costs associated with
shareholder proposals for directors.

J.       Investment Company Proxies

Proxies solicited by investment companies are voted in accordance with the
recommendations of an independent third party, currently ISS. However, regarding
investment companies for which AM or an affiliate serves as investment adviser
or principal underwriter, such proxies are voted in the same proportion as the
vote of all other shareholders. Proxies solicited by master funds from feeder
funds will be voted in accordance with applicable provisions of Section 12 of
the Investment Company Act of 1940.

Investment companies, particularly closed-end investment companies, are
different from traditional operating companies. These differences may call for
differences in voting positions on the same matter. For example, AM could vote
"for" staggered boards of closed-end investment companies, although AM generally
votes "against" staggered boards for operating companies. Further, the manner in
which AM votes investment company proxies may differ from proposals for which a
AM-advised investment company solicits proxies from its shareholders. As
reflected in the Guidelines, proxies solicited by closed-end (and open-end)
investment companies are voted in accordance with the pre-determined guidelines
of an independent third-party.

Subject to participation agreements with certain Exchange Traded Funds ("ETF")
issuers that have received exemptive orders from the U.S. Securities and
Exchange Commission allowing investing DWS funds to exceed the limits set forth
in Section 12(d)(1)(A) and (B) of the Investment Company Act of 1940, DeAM will
echo vote proxies for ETFs in which Deutsche Bank holds more than 25% of
outstanding voting shares globally when required to do so by participation
agreements and SEC orders.

Note: With respect to the QP Trust (not registered under the Investment Company
Act of 1940), the Fund is not required to engage in echo voting and the
investment adviser will use these Guidelines, and may determine, with respect to
the QP Trust, to vote contrary to the positions in the Guidelines, consistent
with the Fund's best interest.


K.       International Proxy Voting

The above guidelines pertain to issuers organized in the United States, Canada
and Germany. Proxies solicited by other issuers are voted in accordance with
international guidelines or the recommendation of ISS and in accordance with
applicable law and regulation.


                      APPENDIX B -- RATINGS OF INVESTMENTS


Standard & Poor's Corporation Bond Ratings

AAA. Debt rated AAA had the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.

AA. Debt rated AA has a very strong capacity to pay interest and repay principal
and differs from the higher rated issues only in small degree.

A. Debt rated A has a strong capacity to pay interest and repay principal
although it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher rated categories.

BBB. Debt rated BBB is regarded as having an adequate capacity to pay interest
and repay principal. Whereas it normally exhibits adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category than in higher rated categories.

BB, B, CCC, CC and C. Debt rated BB, B, CCC, CC and C is regarded, on balance,
as predominantly speculative with respect to capacity to pay interest and repay
principal in accordance with the terms of the obligation. BB indicates the
lowest degree of speculation and C the highest degree of speculation. While such
debt will likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major risk exposures to adverse conditions.

CI. The rating CI is reserved for income bonds on which no interest is being
paid.

D. Debt rated D is in default, and payment of interest and/or repayment of
principal is in arrears.

Moody's Investors Service, Inc. Bond Ratings

AAA. Bonds which are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as
"gilt-edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Aa. Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high-grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present which make
the long term risks appear somewhat larger than in Aaa securities.

A. Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.

Baa. Bonds which are rated Baa are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Ba. Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.

B. Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.

Caa. Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.

Ca. Bonds which are rated Ca represent obligations which are speculative in a
high degree. Such issues are often in default or have other marked shortcomings.

C. Bonds which are rated C are the lowest rated class of bonds and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.

Fitch Long-Term Debt Ratings

AAA. Highest credit quality. "AAA" ratings denote the lowest expectation of
credit risk. They are assigned only in case of exceptionally strong capacity for
timely payment of financial commitments. This capacity is highly unlikely to be
adversely affected by foreseeable events.

AA. Very high credit quality. "AA"` ratings denote a very low expectation of
credit risk. They indicate very strong capacity for timely payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable
events.

A. High credit quality. "A" ratings denote a low expectation of credit risk. The
capacity for timely payment of financial commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to changes in circumstances or in
economic conditions than is the case for higher ratings.

BBB. Good credit quality. "BBB" ratings indicate that there is currently a low
expectation of credit risk. The capacity for timely payment of financial
commitments is considered adequate, but adverse changes in circumstances and in
economic conditions are more likely to impair this capacity. This is the lowest
investment-grade category.

BB. Speculative. "BB" ratings indicate that there is a possibility of credit
risk developing, particularly as the result of adverse economic change over
time; however, business or financial alternatives may be available to allow
financial commitments to be met. Securities rated in this category are not
investment grade.

B. Highly speculative. "B" ratings indicate that significant credit risk is
present, but a limited margin of safety remains. Financial commitments are
currently being met; however, capacity for continued payment is contingent upon
a sustained, favorable business and economic environment.

CCC, CC, C. High default risk. Default is a real possibility. Capacity for
meeting financial commitments is solely reliant upon sustained, favorable
business or economic developments. A "CC" rating indicates that default of some
kind appears probable. "C" ratings signal imminent default.

DDD, DD, D. Default. The ratings of obligations in this category are based on
their prospects for achieving partial or full recovery in a reorganization or
liquidation of the obligor. While expected recovery values are highly
speculative and cannot be estimated with any precision, the following serve as
general guidelines. "DDD" obligations have the highest potential for recovery,
around 90%-100% of outstanding amounts and accrued interest. "DD" indicates
potential recoveries in the range of 50%-90%, and "D" the lowest recovery
potential, i.e., below 50%.

Entities rated in this category have defaulted on some or all of their
obligations. Entities rated "DDD" have the highest prospect for resumption of
performance or continued operation with or without a formal reorganization
process. Entities rated "DD" and "D" are generally undergoing a formal
reorganization or liquidation process; those rated "DD" are likely to satisfy a
higher portion of their outstanding obligations, while entities rated "D" have a
poor prospect for repaying all obligations.

Fitch Short-Term Debt Ratings

F1. Highest credit quality. Indicates the Best capacity for timely payment of
financial commitments; may have an added "+" to denote any exceptionally strong
credit feature.

F2. Good credit quality. A satisfactory capacity for timely payment of financial
commitments, but the margin of safety is not as great as in the case of the
higher ratings.

F3. Fair credit quality. The capacity for timely payment of financial
commitments is adequate; however, near-term adverse changes could result in a
reduction to non-investment grade.

B. Speculative. Minimal capacity for timely payment of financial commitments,
plus vulnerability to near-term adverse changes in financial and economic
conditions.

C. High default risk. Default is a real possibility. Capacity for meeting
financial commitments is solely reliant upon a sustained, favorable business and
economic environment.

D. Default. Denotes actual or imminent payment default.

Commercial Paper Ratings

Commercial paper rated by Standard & Poor's Ratings Services ("S&P") has the
following characteristics: Liquidity ratios are adequate to meet cash
requirements. Long-term senior debt is rated "A" or better. The issuer has
access to at least two additional channels of borrowing. Basic earnings and cash
flow have an upward trend with allowance made for unusual circumstances.
Typically, the issuer's industry is well established and the issuer has a strong
position within the industry. The reliability and quality of management are
unquestioned. Relative strength or weakness of the above factors determine
whether the issuer's commercial paper is rated A-1 or A-2.

The ratings Prime-1 and Prime-2 are the two highest commercial paper ratings
assigned by Moody's Investors Service, Inc. ("Moody's"). Among the factors
considered by it in assigning ratings are the following: (1) evaluation of the
management of the issuer; (2) economic evaluation of the issuer's industry or
industries and an appraisal of speculative-type risks which may be inherent in
certain areas; (3) evaluation of the issuer's products in relation to
competition and customer acceptance; (4) liquidity; (5) amount and quality of
long-term debt; (6) trend of earnings over a period of ten years; (7) financial
strength of a parent company and the relationships which exist with the issuer;
and (8) recognition by the management of obligations which may be present or may
arise as a result of public interest questions and preparations to meet such
obligations. Relative strength or weakness of the above factors determines
whether the issuer's commercial paper is rated Prime-1 or 2.

Municipal Notes

Moody's: The highest ratings for state and municipal short-term obligations are
"MIG 1," "MIG 2," and "MIG 3" (or "VMIG 1," "VMIG 2" and "VMIG 3" in the case of
an issue having a variable rate demand feature). Notes rated "MIG 1" or "VMIG 1"
are judged to be of the "best quality." Notes rated "MIG 2" or "VMIG 2" are of
"high quality," with margins or protection "ample although not as large as in
the preceding group." Notes rated "MIG 3" or "VMIG 3" are of "favorable
quality," with all security elements accounted for but lacking the strength of
the preceding grades.

S&P: The "SP-1" rating reflects a "very strong or strong capacity to pay
principal and interest". Notes issued with "overwhelming safety characteristics"
will be rated "SP-1+." The "SP-2" rating reflects a "satisfactory capacity" to
pay principal and interest.

Fitch: The highest ratings for state and municipal short-term obligations are
"F-1+," "F-1," and "F-2."




<PAGE>

                            PART C. OTHER INFORMATION

<TABLE>
<CAPTION>
Item 23.           Exhibits.
--------           ---------
<S>                   <C>                        <C>
(a)                (a)(1)                 Amended and Restated Declaration of Trust of DWS Target Date Series dated
                                          June 2, 2008 is filed herein.

(b)                (b)(1)                 By-Laws of DWS Target Date Series dated April 1, 2008 is filed herein.

(c)                (c)                    Inapplicable.

(d)                (d)(1)                 Amended and Restated Investment Management Agreement, dated June 1, 2006,
                                          and amended as of November 15, 2007, between the Registrant and Deutsche
                                          Investment Management Americas Inc., is filed herein.

(e)                (e)(1)                 Underwriting and Distribution Services Agreement between the Registrant
                                          and Scudder Distributors Inc., dated April 5, 2002, is incorporated by
                                          reference to Post Effective Amendment No. 14 to the Registration
                                          Statement.

                   (e)(2)                 Underwriting Agreement between the Registrant and Scudder Investor
                                          Services, Inc., dated April 5, 2002, is incorporated by reference to Post
                                          Effective Amendment No. 14 to the Registration Statement.

                   (e)(3)                 Underwriting Agreement between the Registrant and Scudder Distributors,
                                          Inc., dated September 30, 2002, is incorporated by reference to Post
                                          Effective Amendment No. 14 to the Registration Statement.

(f)                (f)                    Inapplicable.

(g)                (g)(1)                 Master Custodian Agreement, dated March 22, 2007, between the Registrant
                                          and State Street Bank and Trust Company is incorporated by reference to
                                          Post Effective Amendment No. 23 to the Registration Statement.

                   (g)(2)                 Form of Master Custodian Agreement, dated November 17, 2008, between the
                                          Registrant and State Street Bank and Trust Company is filed herein.

(h)                (h)(1)                 Special Servicing Agreement between the Registrant, the Underlying
                                          Scudder Funds, Scudder Service Corporation, Scudder Fund Accounting
                                          Corporation, Scudder Trust Company and Scudder, Stevens & Clark, Inc.
                                          dated November 15, 1996, is incorporated by reference to Post-Effective
                                          Amendment No. 1 to the Registration Statement.

                   (h)(2)                 Amendment to Special Servicing Agreement between Registrant and the
                                          Underlying Scudder Funds, Scudder Servicing Corporation, Scudder Fund
                                          Accounting Corporation, Scudder Trust Company and Scudder Stevens & Clark
                                          dated May 15,1997, is incorporated by reference to Post-Effective
                                          Amendment No. 4 to the Registration Statement.

                   (h)(3)                 Shareholder Services Agreement between the Registrant and Scudder
                                          Distributors, Inc., dated April 5, 2002, is incorporated by reference to
                                          Post Effective Amendment No. 14 to the Registration Statement.


                                       2
<PAGE>

                   (h)(4)                 Letter of Indemnity to the Scudder Funds dated October 13, 2004 is
                                          incorporated by reference to Post Effective Amendment No. 20 to the
                                          Registration Statement.

                   (h)(5)                 Letter of Indemnity to the Scudder Funds dated October 13, 2004 is
                                          incorporated by reference to Post Effective Amendment No. 20 to the
                                          Registration Statement.

                   (h)(6)                 Letter of Indemnity to the Independent Trustees dated October 13, 2004 is
                                          incorporated by reference to Post Effective Amendment No. 20 to the
                                          Registration Statement.

                   (h) (7)                Agency Agreement, dated April 1, 2007, between Registrant and DWS Scudder
                                          Investments Service Company is incorporated by reference to Post
                                          Effective Amendment No. 23 to the Registration Statement.

                   (h)(8)                 Form of Mutual Fund Rule 22c-2 Information Sharing Agreement between DWS
                                          Scudder Distributors, Inc. and certain financial intermediaries is filed
                                          herein.

                   (h)(9)                 Amended Administrative Services Agreement, dated June 1, 2006, and
                                          revised as of October 1, 2007, between the Registrant and Deutsche
                                          Investment Management Americas Inc. is filed herein.

                   (h)(10)                Form of Expense Limitation Agreement, dated October 1, 2007, between the
                                          Registrant and Deutsche Investment Management Americas Inc. is filed
                                          herein.

                   (h)(11)                Form of Amended and Restated Administrative Services Agreement, dated
                                          October 1, 2008, between Registrant and Deutsche Investment Management
                                          Americas Inc. is filed herein.

                   (i)(1)                 Opinions and Consent of Counsel on behalf Scudder Pathway Conservative
                                          Portfolio, Scudder Pathway Moderate Portfolio and Scudder Pathway Growth
                                          Portfolio, are incorporated by reference to Post Effective Amendment No.
                                          14 to the Registration Statement.

                   (i)(2)                 Opinion and Consent of Counsel on behalf of Scudder Pathway Growth Plus
                                          Portfolio, are incorporated by reference to Post Effective Amendment No.
                                          21 to the Registration Statement.

                   (i)(3)                 Opinion and Consent of Counsel on behalf of DWS LifeCompass 2040 Fund, is
                                          incorporated by reference to Post-Effective Amendment No. 24 to the
                                          Registration Statement.

                   (j)                    Consent of Independent Registered Public Accounting Firm, is filed herein.

                   (k)                    Inapplicable.

                   (l)                    Inapplicable.


                                       3
<PAGE>

                   (m)(1)                 Rule 12b-1 Plan between the Registrant, on behalf of Moderate Portfolio
                                          (Class A, B and C shares), dated November 13, 2000, is incorporated by
                                          reference to Post-Effective Amendment No. 11 to the Registration
                                          Statement.

                   (m)(2)                 Rule 12b-1 Plan between the Registrant, on behalf of Conservative
                                          Portfolio (Class A, B and C shares), dated November 13, 2000, is
                                          incorporated by reference to Post-Effective Amendment No. 11 to the
                                          Registration Statement.

                   (m)(3)                 Rule 12b-1 Plan between the Registrant, on behalf of Growth Portfolio
                                          (Class A, B and C shares), dated November 13, 2000, is incorporated by
                                          reference to Post-Effective Amendment No. 11 to the Registration
                                          Statement.

                   (m)(4)                 Rule 12b-1 Plan between the Registrant, on behalf of Growth Plus
                                          Portfolio (Class A, B and C shares), dated November 1, 2004 is
                                          incorporated by reference to Post Effective Amendment No. 20 to the
                                          Registration Statement.

                   (m)(5)                 Rule 12b-1 Plan between the Registrant, on behalf of DWS LifeCompass 2040
                                          Fund (Class A and C shares), dated November 15, 2007, is incorporated by
                                          reference to Post-Effective Amendment No. 24 to the Registration
                                          Statement.

                   (n)(1)                 Amended and Restated Plan with respect to Scudder Pathway Series pursuant
                                          to Rule 18f-3 is incorporated by reference to Post Effective Amendment
                                          No. 20 to the Registration Statement.

                   (p)(1)                 Code of Ethics for Deutsche Asset Management US, dated January 1, 2008 is
                                          filed herein.

                   (p)(2)                 Consolidated Fund Code of Ethics (All Funds), dated March 14, 2006 is
                                          incorporated by reference to Post-Effective Amendment No. 21 to the
                                          Registration Statement.
</TABLE>

Item 24.          Persons Controlled by or under Common Control with Registrant.
--------          --------------------------------------------------------------

                  None.

Item 25.          Indemnification.
--------          ----------------

                  Article IV of the  Registrant's  Agreement and  Declaration of
                  Trust (Exhibit (a)(1) hereto,  which is incorporated herein by
                  reference)   provides  in  effect  that  the  Registrant  will
                  indemnify   its   officers   and   trustees    under   certain
                  circumstances.  However,  in accordance with Section 17(h) and
                  17(i) of the Investment Company Act of 1940 and its own terms,
                  said Article of the  Agreement and  Declaration  of Trust does
                  not protect any person against any liability to the Registrant
                  or its  shareholders  to which such Trustee would otherwise be
                  subject by reason of  willful  misfeasance,  bad faith,  gross
                  negligence,  or reckless  disregard of the duties  involved in
                  the conduct of his or her office.


                                       4
<PAGE>

                  The Registrant has purchased  insurance  policies insuring its
                  officers and trustees against certain  liabilities  which such
                  officers   and   trustees  may  incur  while  acting  in  such
                  capacities and providing  reimbursement  to the Registrant for
                  sums  which  it may be  permitted  or  required  to pay to its
                  officers and trustees by way of  indemnification  against such
                  liabilities, subject to certain deductibles.

                  On  April  5,   2002,   Zurich   Scudder   Investments,   Inc.
                  ("Scudder"),  the  investment  adviser,  now known as Deutsche
                  Investment  Management Americas Inc., was acquired by Deutsche
                  Bank  AG,  not   including   certain  U.K.   Operations   (the
                  "Transaction"). In connection with the Trustees' evaluation of
                  the Transaction, Deutsche Bank agreed to indemnify, defend and
                  hold  harmless  Registrant  and  the  trustees  who  were  not
                  "interested  persons" of Scudder,  Deutsche Bank or Registrant
                  (the "Independent Trustees") for and against any liability and
                  claims and  expenses  based upon or arising  from,  whether in
                  whole  or in part,  or  directly  or  indirectly,  any  untrue
                  statement or alleged untrue  statement of a material fact made
                  to the  Independent  Trustees by Deutsche  Bank in  connection
                  with   the   Independent   Trustees'   consideration   of  the
                  Transaction, or any omission or alleged omission of a material
                  fact necessary in order to make  statements  made, in light of
                  the circumstances under which they were made, not misleading.

                  Deutsche  Investment   Management  Americas  Inc.  (hereafter,
                  "DIMA"),  the  investment  advisor,  has  agreed,  subject  to
                  applicable law and regulation,  to indemnify and hold harmless
                  the  Registrant  against  any  loss,  damage,   liability  and
                  expense,  including,  without limitation,  the advancement and
                  payment,  as  incurred,  of  reasonable  fees and  expenses of
                  counsel  (including  counsel to the  Registrant and counsel to
                  the Independent Trustees) and consultants, whether retained by
                  the  Registrant  or  the  Independent   Trustees,   and  other
                  customary  costs and expenses  incurred by the  Registrant  in
                  connection with any litigation or regulatory action related to
                  possible  improper  market  timing or other  improper  trading
                  activity or possible improper  marketing and sales activity in
                  the Registrant ("Private Litigation and Enforcement Actions").
                  In the event that this  indemnification  is unavailable to the
                  Registrant for any reason,  then DIMA has agreed to contribute
                  to the amount paid or payable by the Registrant as a result of
                  any loss,  damage,  liability or expense in such proportion as
                  is  appropriate  to reflect the relative fault of DIMA and the
                  Registrant  with respect to the matters which resulted in such
                  loss,  damage,  liability  or  expense,  as well as any  other
                  relevant equitable considerations;  provided, that if no final
                  determination  is made in such action or  proceeding as to the
                  relative fault of DIMA and the Registrant, then DIMA shall pay
                  the entire amount of such loss, damage, liability or expense.

                  In recognition of its undertaking to indemnify the Registrant,
                  and in light of the rebuttable  presumption generally afforded
                  to non-interested  board members of an investment company that
                  they have not  engaged  in  disabling  conduct,  DIMA has also
                  agreed, subject to applicable law and regulation, to indemnify
                  and hold harmless each of the Independent Trustees against any
                  and all loss, damage, liability and expense, including without
                  limitation  the   advancement   and  payment  as  incurred  of
                  reasonable fees and expenses of counsel and  consultants,  and
                  other customary costs and expenses incurred by the Independent
                  Trustees,  arising  from the  matters  alleged in any  Private
                  Litigation and Enforcement  Actions or matters arising from or
                  similar  in  subject  matter  to the  matters  alleged  in the
                  Private  Litigation  and  Enforcement  Actions  (collectively,
                  "Covered Matters"), including without limitation:

                  1.       all reasonable  legal and other expenses  incurred by
                           the  Independent  Trustees  in  connection  with  the
                           Private Litigation and Enforcement  Actions,  and any
                           actions  that may be  threatened  or commenced in the
                           future  by any  person  (including  any  governmental
                           authority),  arising  from or similar to the  matters
                           alleged in the  Private  Litigation  and  Enforcement
                           Actions,   including  without   limitation   expenses
                           related to the defense  of,  service as a witness in,
                           or monitoring of such proceedings or actions;


                                       5
<PAGE>

                  2.       all  liabilities  and  reasonable   legal  and  other
                           expenses  incurred  by  any  Independent  Trustee  in
                           connection  with  any  judgment  resulting  from,  or
                           settlement of, any such proceeding, action or matter;

                  3.       any  loss or  reasonable  legal  and  other  expenses
                           incurred  by any  Independent  Trustee as a result of
                           the denial of, or dispute about,  any insurance claim
                           under,   or  actual  or   purported   rescission   or
                           termination  of, any policy of insurance  arranged by
                           DIMA (or by a representative  of DIMA acting as such,
                           acting as a  representative  of the  Registrant or of
                           the Independent Trustees or acting otherwise) for the
                           benefit  of the  Independent  Trustee,  to the extent
                           that such denial,  dispute or  rescission is based in
                           whole or in part upon any  alleged  misrepresentation
                           made in the  application for such policy or any other
                           alleged  improper conduct on the part of DIMA, any of
                           its corporate affiliates,  or any of their directors,
                           officers or employees;

                  4.       any  loss or  reasonable  legal  and  other  expenses
                           incurred by any Independent  Trustee,  whether or not
                           such loss or expense is  incurred  with  respect to a
                           Covered Matter,  which is otherwise covered under the
                           terms of any specified  policy of insurance,  but for
                           which  the  Independent  Trustee  is unable to obtain
                           advancement of expenses or indemnification under that
                           policy of insurance,  due to the exhaustion of policy
                           limits  which  is due in  whole or in part to DIMA or
                           any affiliate thereof having received  advancement of
                           expenses or indemnification  under that policy for or
                           with respect to any Covered  Matter;  provided,  that
                           the total  amount that DIMA will be  obligated to pay
                           under this  provision  for all loss or expense  shall
                           not  exceed  the  amount  that  DIMA  and  any of its
                           affiliates  actually  receive  under  that  policy of
                           insurance  for or with respect to any and all Covered
                           Matters; and

                  5.       all  liabilities  and  reasonable   legal  and  other
                           expenses  incurred  by  any  Independent  Trustee  in
                           connection  with any  proceeding or action to enforce
                           his or her rights  under the  agreement,  unless DIMA
                           prevails  on the  merits  of any  such  dispute  in a
                           final, nonappealable court order.

                  DIMA is not  required  to pay  costs or  expenses  or  provide
                  indemnification to or for any individual  Independent  Trustee
                  (i) with respect to any particular  proceeding or action as to
                  which the Board of the  Registrant  has  determined  that such
                  Independent  Trustee  ultimately  would  not  be  entitled  to
                  indemnification   with  respect  thereto,   or  (ii)  for  any
                  liability of the Independent  Trustee to the Registrant or its
                  shareholders to which such Independent Trustee would otherwise
                  be subject by reason of willful misfeasance,  bad faith, gross
                  negligence, or reckless disregard of the Independent Trustee's
                  duties as a Trustee of the Registrant as determined in a final
                  adjudication in such proceeding or action. In addition, to the
                  extent  that  DIMA  has  paid  costs  or  expenses  under  the
                  agreement to any individual  Independent  Trustee with respect
                  to a  particular  proceeding  or action,  and there is a final
                  adjudication  in such  proceeding or action of the Independent
                  Trustee's  liability to the Registrant or its  shareholders by
                  reason of willful misfeasance, bad faith, gross negligence, or
                  reckless  disregard of the Independent  Trustee's  duties as a
                  Trustee  of  the  Registrant,  such  Independent  Trustee  has
                  undertaken to repay such costs or expenses to DIMA.

Item 26.          Business and Other Connections of Investment Advisor
--------          ----------------------------------------------------

                  During the last two fiscal  years,  no  director or officer of
                  Deutsche  Investment  Management Americas Inc., the investment
                  advisor,  has  engaged  in  any  other  business,  profession,
                  vocation or employment of a substantial nature other than that
                  of  the  business  of  investment   management  and,   through
                  affiliates, investment banking.

Item 27.          Principal Underwriters
--------          ----------------------

                  (a)

                                       6
<PAGE>

                  DWS   Investments   Distributors,   Inc.   acts  as  principal
                  underwriter of the  Registrant's  shares and acts as principal
                  underwriter  for  registered  open-end  management  investment
                  companies   other  funds   managed  by   Deutsche   Investment
                  Management Americas Inc.

                  (b)

                  Information  on the officers and directors of DWS  Investments
                  Distributors,  Inc., principal underwriter for the Registrant,
                  is set forth  below.  The  principal  business  address is 222
                  South Riverside Plaza, Chicago, Illinois 60606.

<TABLE>
<CAPTION>
                      (1)                             (2)                                  (3)
          DWS Investments
          Distributors, Inc.
          Name and Principal             Positions and Offices with               Positions and
          Business Address               DWS Investments Distributors, Inc.       Offices with Registrant
          ----------------               ----------------------------------       -----------------------
                <S>                                 <C>                                   <C>
          Philipp Hensler                Director, Chairman of the Board and CEO  None
          345 Park Avenue
          New York, NY 10154

          Michael Colon                  Director and Chief Operating Officer     None
          345 Park Avenue
          New York, NY 10154

          Thomas Winnick                 Director and President                   None
          345 Park Avenue
          New York, NY 10154

          Cliff Goldstein                Chief Financial Officer and Treasurer    None
          100 Plaza One
          Jersey City, NJ 07311

          Robert Froehlich               Vice President                           None
          222 South Riverside Plaza
          Chicago, IL 60606

          Paul Schubert                  Vice President                           Chief Financial Officer
          345 Park Avenue                                                         and Treasurer
          New York, NY 10154

          Mark Perrelli                  Vice President                           None
          345 Park Avenue
          New York, NY 10154

          Donna White                    Chief Compliance Officer                 None
          280 Park Avenue
          New York, NY 10017

          Jason Vazquez                  Vice President and AML Compliance        AML Compliance Officer
          280 Park Avenue                Officer
          New York, NY 10017


                                       7
<PAGE>
                      (1)                             (2)                                  (3)
          DWS Investments
          Distributors, Inc.
          Name and Principal             Positions and Offices with               Positions and
          Business Address               DWS Investments Distributors, Inc.       Offices with Registrant
          ----------------               ----------------------------------       -----------------------

          Caroline Pearson               Secretary                                Assistant Secretary
          One Beacon Street
          Boston, MA 02108

          Philip J. Collora              Assistant Secretary                      None
          222 South Riverside Plaza
          Chicago, IL 60606

          Patricia DeFilippis            Assistant Secretary                      Assistant Secretary
          280 Park Avenue
          New York, NY 10017

          Anjie LaRocca                  Assistant Secretary                      None
          345 Park Avenue
          New York, NY 10154
</TABLE>

         (c) Not applicable.

Item 28.          Location of Accounts and Records.
--------          ---------------------------------

                  Certain  accounts,  books and other  documents  required to be
                  maintained  by  Section  31(a) of the  1940 Act and the  Rules
                  promulgated  thereunder are maintained by Deutsche  Investment
                  Management  Americas Inc., 345 Park Avenue, New York, New York
                  10154;   at  the   offices  of  the   Registrant's   principal
                  underwriter,  DWS  Investments  Distributors,  Inc., 222 South
                  Riverside Plaza, Chicago,  Illinois 60606. Records relating to
                  the duties of the  Registrant's  custodian  are  maintained by
                  State  Street  Bank &  Trust  Company,  225  Franklin  Street,
                  Boston, Massachusetts 02110. Records relating to the duties of
                  the Registrant's transfer agent are maintained DWS Investments
                  Service  Company,  210  West  10th  Street,  Kansas  City,  MO
                  64105-1614,  or at the offices of DST Systems,  Inc., 333 West
                  11th Street,  Kansas City,  Missouri 64105,  the  sub-transfer
                  agent for the Registrant.

Item 29.          Management Services.
--------          --------------------

                  Inapplicable.

Item 30.          Undertakings.
--------          -------------

                  Inapplicable.


                                       8
<PAGE>



                                   SIGNATURES
                                   ----------

         Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this amendment
to its Registration Statement to be signed on its behalf by the undersigned,
thereto duly authorized, in the City of New York and the State of New York on
the 18th day of November 2008.

                                              DWS TARGET DATE SERIES

                                                    By:  /s/ Michael G. Clark
                                                         --------------------
                                                         Michael G. Clark*

         Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment to its Registration Statement has been signed below by
the following persons in the capacities and on the dates indicated:

<TABLE>
<CAPTION>
SIGNATURE                                  TITLE                                        DATE
---------                                  -----                                        ----
<S>                                              <C>                                       <C>
/s/ Michael G. Clark
-------------------------------------
Michael G. Clark*                          President                                    November 18, 2008

/s/Paul H. Schubert
-------------------------------------
Paul H. Schubert                           Chief Financial Officer and Treasurer        November 18, 2008

/s/John W. Ballantine
-------------------------------------
John W. Ballantine*                        Trustee                                      November 18, 2008

/s/Henry P. Becton, Jr.
-------------------------------------
Henry P. Becton, Jr.*                      Trustee                                      November 18, 2008

/s/Dawn-Marie Driscoll
-------------------------------------
Dawn-Marie Driscoll*                       Chairperson and Trustee                      November 18, 2008

/s/Keith R. Fox
-------------------------------------
Keith R. Fox*                              Trustee                                      November 18, 2008

/s/Paul K. Freeman
-------------------------------------
Paul K. Freeman*                           Vice Chairperson and Trustee                 November 18, 2008

/s/Kenneth C. Froewiss
-------------------------------------
Kenneth C. Froewiss*                       Trustee                                      November 18, 2008

/s/Richard J. Herring
-------------------------------------
Richard J. Herring*                        Trustee                                      November 18, 2008

/s/William McClayton
-------------------------------------
William McClayton*                         Trustee                                      November 18, 2008

/s/Rebecca W. Rimel
-------------------------------------
Rebecca W. Rimel*                          Trustee                                      November 18, 2008

/s/William N. Searcy, Jr.
-------------------------------------
William N. Searcy, Jr.*                    Trustee                                      November 18, 2008

<PAGE>
SIGNATURE                                  TITLE                                        DATE
---------                                  -----                                        ----

/s/Jean Gleason Stromberg
-------------------------------------
Jean Gleason Stromberg*                    Trustee                                      November 18, 2008

/s/Robert H. Wadsworth
-------------------------------------
Robert H. Wadsworth*                       Trustee                                      November 18, 2008

/s/Axel Schwarzer
-------------------------------------
Axel Schwarzer*                            Trustee                                      November 18, 2008
</TABLE>

*By:     /s/Caroline Pearson
         ------------------------------
         Caroline Pearson**
         Assistant Secretary

** Attorney-in-fact pursuant to the powers of attorney as filed herein.








                                       2
<PAGE>

<TABLE>
<S>                                     <C>                                     <C>
Cash Account Trust                      DWS International Fund, Inc.            DWS Strategic Government
Cash Management Portfolio               DWS Investment Trust                            Securities Fund
Cash Reserve Fund, Inc.                 DWS Investments VIT Funds               DWS Strategic Income Fund
DWS Advisor Funds                       DWS Investors Funds, Inc.               DWS Strategic Municipal Income
DWS Balanced Fund                       DWS Money Funds                                 Trust
DWS Blue Chip Fund                      DWS Money Market Trust                  DWS Target Date Series
DWS Communications Fund, Inc.           DWS Multi-Market Income Trust           DWS Target Fund
DWS Dreman Value Income Edge            DWS Municipal Income Trust              DWS Tax Free Trust
        Fund, Inc.                      DWS Municipal Trust                     DWS Technology Fund
DWS Equity 500 Index Portfolio          DWS Mutual Funds, Inc.                  DWS Value Builder Fund, Inc.
DWS Equity Partners Fund, Inc.          DWS Portfolio Trust                     DWS Value Equity Trust
DWS Equity Trust                        DWS RREEF Real Esate Fund,              DWS Value Series, Inc.
DWS Global/International Fund,                  Inc.                            DWS Variable Series I
        Inc.                            DWS RREEF Real Estate Fund II,          DWS Variable Series II
DWS Global Commodities Stock                    Inc.                            Investors Cash Trust
        Fund, Inc.                      DWS RREEF World Real Estate &           Tax-Exempt California Money
DWS Global High Income Fund,                    Tactical Fund, Inc.                     Market Fund
        Inc.                            DWS Securities Trust                    The Central Europe & Russian
DWS High Income Series                  DWS State Tax Free Trust                        Fund, Inc.
DWS High Income Trust                   DWS State Tax-Free Income               The European Equity Fund, Inc.
DWS Income Trust                                Series                          The New Germany Fund, Inc.
DWS Institutional Funds                 DWS Strategic Income Trust
</TABLE>

                                 (each a "Fund")

                                Power of Attorney

KNOW ALL PERSONS BY THESE PRESENTS, that the following person, whose signature
appears below, does hereby constitute and appoint John Millette, Thomas Connors
and Caroline Pearson, and each of them, severally, with full powers of
substitution, his true and lawful attorney and agent to execute in his name,
place and stead (in such capacity) any and all amendments to enable the Fund to
comply with the Securities Act of 1933, as amended (the "1933 Act") and/or the
Investment Company Act of 1940, as amended (the "1940 Act"), and any rules,
regulations or requirements of the Securities and Exchange Commission in respect
thereof, in connection with the Fund's Registration Statement pursuant to the
1933 Act and/or the 1940 Act, together with any and all pre- and post-effective
amendments thereto, including specifically, but without limiting the generality
of the foregoing, the power and authority to sign in the name and on behalf of
the undersigned as President of the Fund such Registration Statement and any and
all such pre- and post-effective amendments filed with the Securities and
Exchange Commission under the 1933 Act and/or the 1940 Act, and any other
instruments or documents related thereto, and the undersigned does hereby ratify
and confirm all that each said attorney-in-fact and agent, or may substitute or
substitutes therefor, shall lawfully do or cause to be done by virtue hereof.

SIGNATURE                    TITLE                         DATE
---------                    -----                         ----
                             President                     September 25, 2008
/s/Michael G. Clark
-------------------
Michael G. Clark

<PAGE>

                                 DWS FUNDS BOARD
                                 ---------------

                     CERTIFICATE OF THE ASSISTANT SECRETARY

          I, Caroline Pearson, do hereby certify as follows:

1.       That I am the duly elected Assistant Secretary of the Funds listed on
         the attached Appendix A, (each a "Fund," and each Fund's underlying
         portfolios, if applicable, a "Series");

2.       I further certify that the following is a complete and correct copy of
         resolutions adopted by the members of the Board of Directors/Trustees
         of the Funds at meetings duly called, convened and held on September
         19, 2008, at which a quorum was present and acting throughout, and that
         such resolutions have not been amended and are in full force and
         effect:


                  WHEREAS, the President of the Fund, Michael Clark, desires to
                  execute a Power of Attorney and thereby delegate legal
                  authority to the below-designated individuals to sign
                  Registration Statements, including any amendments, on his
                  behalf:

                  NOW THEREFORE BE IT:

                  RESOLVED, that the following individuals be, and they hereby
                  are, and each of them hereby is, given a Power of Attorney in
                  substantially the form presented to this meeting, with such
                  changes as the officers, with the advice of counsel, shall
                  recommend, to sign the Fund's Registration Statements,
                  including any amendments:

                  Thomas Connors
                  John Millette
                  Caroline Pearson; and

                  FURTHER RESOLVED, that any Registration Statement signed
                  pursuant to such Power of Attorney shall comply with Rule 483
                  (b) of the Securities Act of 1933 as amended, including, but
                  not limited to the inclusion of: (1) a copy of the authorizing
                  Power of Attorney; and (2) a certified copy of the resolutions
                  of the Board authorizing such delegation as Exhibits thereto.

IN WITNESS WHEREOF, I hereunto set my hand this twenty-fourth day of September,
2008.


                                                 /s/Caroline Pearson
                                                 -------------------
                                                 Caroline Pearson
                                                 Assistant Secretary


<PAGE>

                                   APPENDIX A

CASH ACCOUNT TRUST, and its series:
Government & Agency Securities Portfolio
Money Market Portfolio
Tax-Exempt Portfolio

CASH MANAGEMENT PORTFOLIO

CASH RESERVE FUND, INC., and its series:
Prime Series

DWS ADVISOR FUNDS, and its series:
DWS Core Fixed Income Fund
DWS High Income Plus Fund
DWS International Select Equity Fund
DWS Lifecycle Long Range Fund
DWS Micro Cap Fund
DWS Mid Cap Growth Fund
DWS RREEF Real Estate Securities Fund
DWS RREEF Global Real Estate Securities Fund
DWS Short Duration Fund
DWS Short Duration Plus Fund
DWS Short-Term Municipal Bond Fund
DWS Small Cap Growth Fund
NY Tax Free Money Fund
Tax Free Money Fund Investment

DWS BALANCED FUND

DWS BLUE CHIP FUND

DWS COMMUNICATIONS FUND, INC.

DWS DREMAN VALUE INCOME EDGE FUND, INC.

DWS EQUITY 500 INDEX PORTFOLIO

DWS EQUITY PARTNERS FUND, INC.

DWS EQUITY TRUST, and its series:
DWS Alternative Asset Allocation Plus Fund
DWS Core Plus Allocation Fund
DWS Disciplined Long/Short Growth Fund
DWS Disciplined Long/Short Value Fund
DWS Disciplined Market Neutral Fund

DWS GLOBAL COMMODITIES STOCK FUND, INC.

DWS GLOBAL/INTERNATIONAL FUND, INC., and its series:
DWS Emerging Markets Fixed Income Fund
DWS Global Bond Fund
DWS Global Opportunities Fund
DWS Global Thematic Fund
DWS RREEF Global Infrastructure Fund

DWS GLOBAL HIGH INCOME FUND, INC.

DWS HIGH INCOME SERIES
DWS High Income Fund


<PAGE>

DWS HIGH INCOME TRUST

DWS INCOME TRUST, and its series:
DWS GNMA Fund

DWS INSTITUTIONAL FUNDS, and its series:
Cash Management Fund Institutional
Cash Reserves Fund Institutional
Daily Assets Fund Institutional
DWS Commodity Securities Fund
DWS EAFE Equity Index Fund
DWS Equity 500 Index Fund
DWS Inflation Protected Plus Fund
DWS U.S. Bond Index Fund

DWS INTERNATIONAL FUND, INC. , and its series:
DWS Emerging Markets Equity Fund
DWS Europe Equity Fund
DWS International Fund
DWS International Value Opportunities Fund
DWS Latin America Equity Fund

DWS INVESTMENT TRUST, and its series:
DWS Capital Growth Fund
DWS Growth & Income Fund
DWS Large Company Growth Fund
DWS S&P 500 Index Fund
DWS Small Cap Core Fund

DWS INVESTMENTS VIT TRUST, and its series:
DWS Equity 500 Index VIP
DWS Small Cap Index VIP

DWS INVESTORS FUNDS, INC., and its series:
DWS Japan Equity Fund

DWS MONEY FUNDS, and its series:
DWS Money Market Prime Series

DWS MONEY MARKET TRUST, and its series
DWS Money Market Series

DWS MULTI-MARKET INCOME TRUST

DWS MUNICIPAL INCOME TRUST

DWS MUNICIPAL TRUST, and its series:
DWS Strategic High Yield Tax-Free Fund
DWS Managed Municipal Bond Fund

DWS MUTUAL FUNDS, INC., and its series:
DWS Gold & Precious Metals Fund

DWS PORTFOLIO TRUST, and its series:
DWS Core Plus Income Fund
DWS Floating Rate Plus Fund

DWS RREEF REAL ESTATE FUND, INC.


<PAGE>

DWS RREEF REAL ESTATE FUND II, INC.

DWS RREEF WORLD REAL ESTATE & TACTICAL STRATEGIES FUND, INC.

DWS SECURITIES TRUST, and its series:
DWS Climate Change Fund
DWS Health Care Fund

DWS STATE TAX-FREE INCOME SERIES, and its series:
DWS California Tax-Free Income Fund
DWS New York Tax-Free Income Fund

DWS STATE TAX FREE TRUST, and its series:
DWS Massachusetts Tax-Free Fund

DWS STRATEGIC GOVERNMENT SECURITIES FUND

DWS STRATEGIC INCOME TRUST

DWS STRATEGIC INCOME FUND

DWS STRATEGIC MUNICIPAL INCOME TRUST

DWS TARGET DATE SERIES, and its series:
DWS LifeCompass Retirement Fund
DWS LifeCompass 2015 Fund
DWS LifeCompass 2020 Fund
DWS LifeCompass 2030 Fund
DWS LifeCompass 2040 Fund

DWS TARGET FUND, and its series:
DWS Target 2010 Fund
DWS Target 2011 Fund
DWS Target 2012 Fund
DWS Target 2013 Fund
DWS Target 2014 Fund
DWS LifeCompass Income Fund
DWS LifeCompass Protect Fund

DWS TAX FREE TRUST, and its series
DWS Intermediate Tax/AMT Free Fund

DWS TECHNOLOGY FUND

DWS VALUE BUILDER FUND, INC.


DWS VALUE EQUITY TRUST, and its series:
DWS Enhanced S&P 500 Index Fund
DWS Equity Income Fund

DWS VALUE SERIES, INC. and its series:
DWS Dreman Concentrated Value Fund
DWS Dreman High Return Equity Fund
DWS Dreman Mid Cap Value Fund
DWS Dreman Small Cap Value Fund
DWS Large Cap Value Fund


<PAGE>

DWS VARIABLE SERIES I, and its series
DWS Bond VIP
DWS Capital Growth VIP
DWS Global Opportunities VIP
DWS Growth & Income VIP
DWS Health Care VIP
DWS International VIP

DWS VARIABLE SERIES II, and its series
DWS Balanced VIP
DWS Blue Chip VIP
DWS Conservative Allocation VIP
DWS Core Fixed Income VIP
DWS Davis Venture Value VIP
DWS Dreman High Return Equity VIP
DWS Dreman Small Mid Cap Value VIP
DWS Global Thematic VIP
DWS Government & Agency Securities VIP
DWS Growth Allocation VIP
DWS High Income VIP
DWS International Select Equity VIP
DWS Janus Growth & Income VIP
DWS Large Cap Value VIP
DWS Mid Cap Growth VIP
DWS Moderate Allocation VIP
DWS Money Market VIP
DWS Small Cap Growth VIP
DWS Strategic Income VIP
DWS Technology VIP
DWS Turner Mid Cap Growth VIP

INVESTORS CASH TRUST, and its series:
Treasury Portfolio

TAX-EXEMPT CALIFORNIA MONEY MARKET FUND

<PAGE>

                             DWS TARGET DATE SERIES

                                Power of Attorney

KNOW ALL PERSONS BY THESE PRESENTS, that the following persons, whose signatures
appear below, do hereby constitute and appoint Thomas Connors, John Millette and
Caroline  Pearson,  and each of them,  severally,  or if more than one  acts,  a
majority of them,  their true and lawful  attorney and agent to execute in their
name,  place and stead (in such  capacity) any and all  amendments to enable DWS
TARGET DATE SERIES (the "Fund") to comply with the  Securities  Act of 1933,  as
amended (the "1933 Act") and the Investment Company Act of 1940, as amended (the
"1940 Act"),  and any rules,  regulations or  requirements of the Securities and
Exchange   Commission  in  respect  thereof,   in  connection  with  the  Fund's
Registration  Statement on Form N-1A  pursuant to the 1933 Act and the 1940 Act,
together with any and all pre- and post-effective amendments thereto,  including
specifically,  but without  limiting the generality of the foregoing,  the power
and authority to sign in the name and on behalf of the  undersigned as a trustee
of the  Fund  such  Registration  Statement  and  any  and  all  such  pre-  and
post-effective  amendments  filed with the  Securities  and Exchange  Commission
under the 1933 Act and the 1940  Act,  and any other  instruments  or  documents
related  thereto,  and the  undersigned  does hereby ratify and confirm all that
said  attorney-in-fact  and  agent,  or  either of them or their  substitute  or
substitutes, shall lawfully do or cause to be done by virtue hereof.


<TABLE>
<CAPTION>
--------------------------------- ------------------- --------------------------
SIGNATURES                        TITLE               DATE
--------------------------------- ------------------- --------------------------
<S>                               <C>                           <C>
/s/John W. Ballantine
-----------------------------
John W. Ballantine                Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Henry P. Becton, Jr.
-----------------------------
Henry P. Becton, Jr.              Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Dawn-Marie Driscoll
-----------------------------
Dawn-Marie Driscoll               Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Keith R. Fox
-----------------------------
Keith R. Fox                      Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Paul K. Freeman
-----------------------------
Paul K. Freeman                   Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Kenneth C. Froewiss
-----------------------------
Kenneth C. Froewiss               Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Richard J. Herring
-----------------------------
Richard J. Herring                Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/William McClayton
-----------------------------
William McClayton                 Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Rebecca W. Rimel
-----------------------------
Rebecca W. Rimel                  Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/William N. Searcy, Jr.
-----------------------------
William N. Searcy, Jr.            Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Jean Gleason Stromberg
-----------------------------
Jean Gleason Stromberg            Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Robert H. Wadsworth
-----------------------------
Robert H. Wadsworth               Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------

/s/Axel Schwarzer
-----------------------------
Axel Schwarzer                    Trustee             April 1, 2008
--------------------------------- ------------------- --------------------------
</TABLE>
<PAGE>

                                                               File No. 33-86070
                                                               File No. 811-8606


                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



                                    EXHIBITS

                                       TO

                                    FORM N-1A

                         POST-EFFECTIVE AMENDMENT NO. 25
                            TO REGISTRATION STATEMENT

                                      UNDER

                           THE SECURITIES ACT OF 1933

                                       AND

                                AMENDMENT NO. 27
                            TO REGISTRATION STATEMENT

                                      UNDER

                       THE INVESTMENT COMPANY ACT OF 1940



                             DWS TARGET DATE SERIES




                                       9
<PAGE>



                             DWS TARGET DATE SERIES

                                  EXHIBIT INDEX


                                     (a)(1)
                                     (b)(1)
                                     (d)(1)
                                     (g)(2)
                                     (h)(8)
                                     (h)(9)
                                     (h)(10)
                                     (h)(11)
                                       (j)
                                     (p)(1)






                                       10