AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 28, 2009

SECURITIES ACT FILE NO. 333-158137

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-14

REGISTRATION STATEMENT

UNDER

DWS INTERNATIONAL FUND, INC.

(Exact Name of Registrant as Specified in Charter)

345 Park Avenue

New York, NY 10154

(Address of Principal Executive Offices) (Zip Code)

212-454-6778

(Registrant’s Area Code and Telephone Number)

John Millette, Secretary

One Beacon Street

Boston, Massachusetts 02108

(Name and Address of Agent for Service)

With copies to:

Thomas R. Hiller, Esq.

Ropes & Gray

One International Place

Boston, MA 02110

Approximate date of proposed public offering: As soon as practicable after the effective date of this Registration Statement.

TITLE OF SECURITIES BEING REGISTERED: Shares of Beneficial Interest (par value $0.01 per share) of the Registrant.

No filing fee is required because an indefinite number of shares have previously been registered pursuant to Rule 24f-2 under the Investment Company Act of 1940.

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment that specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

Questions & Answers

DWS Japan Equity Fund

Q&A

Q What is happening?

A DWS Investments is proposing to merge DWS Japan Equity Fund into DWS International Value Opportunities Fund.

Q What issue am I being asked to vote on?

A You are being asked to vote on the proposal to merge DWS Japan Equity Fund into DWS International Value Opportunities Fund.

After carefully reviewing the proposal, your fund’s Board has determined that this action is in the best interests of the fund. The Board unanimously recommends that you vote for this proposal.

Q Why has this proposal been made for my fund?

A DWS Investments believes the proposed merger is in the best interests of DWS Japan Equity Fund for several reasons. DWS Investments advised the Board that DWS Japan Equity Fund’s narrow geographic focus presents limited opportunities to attract new investments to the Fund. As a result, DWS Japan Equity Fund is facing the likely prospect, over time, of declining assets and minimal opportunities to reduce costs through economies of scale. In light of the significant decline of asset flows into actively managed country-specific funds such as DWS Japan Equity Fund, DWS Investments has advised the Board that it no longer wishes to manage a Japan-only open-end fund such as DWS Japan Equity Fund. Further, the fund’s subadviser, Deutsche Asset Management (Japan) Limited (“DeAMJ”) plans to terminate its sub-advisory agreement with DWS Japan Equity Fund during the first half of 2009 due to changes in portfolio management personnel in Japan.

LOGO

Q&A continued

Given these considerations, and in order to provide shareholders with a continuity of investment of non-U.S. equity securities within the DWS fund family, DWS Investments believes that a merger into DWS International Value Opportunities Fund is the best alternative for shareholders of DWS Japan Equity Fund. Among other benefits, the merger would result in lower management fees and lower operating expenses for shareholders of DWS Japan Equity Fund.

Although both funds invest in equity securities of companies in developed economies, because DWS International Value Opportunities Fund pursues investment opportunities in a wide range of foreign countries, there are significant differences in the portfolios of DWS Japan Equity Fund and DWS International Value Opportunities Fund. If the merger is approved by shareholders, DWS Investments expects that substantially all of the portfolio assets of DWS Japan Equity Fund will be liquidated after shareholder approval and prior to the merger. Proceeds from the liquidation will be used to acquire securities consistent with DWS International Value Opportunities Fund’s current implementation of its investment objective, policies, restrictions and strategies. The repositioning of DWS Japan Equity Fund prior to the merger will involve transaction costs which will be borne by DWS Japan Equity Fund subject to an expense cap agreed to by Deutsche Investment Management Americas Inc. (“DIMA”), DWS Japan Equity Fund’s investment adviser. Pursuant to the expense cap, DIMA will pay any one-time merger costs, including the transaction costs associated with repositioning DWS Japan Equity Fund’s portfolio, to the extent those costs exceed the estimated cost savings expected to be realized by shareholders of DWS Japan Equity Fund at the time of the merger during the one-year period following the proposed merger. See page [ ] of the enclosed Prospectus/Proxy Statement for more information regarding the costs of the merger and DIMA’s agreement to cap expenses.

Q Will I have to pay taxes as a result of the merger?

A The merger is expected to be a tax-free reorganization for federal income tax purposes and will not take place unless tax counsel provides an opinion to that effect. However, it is expected that DWS Japan Equity Fund will sell substantially all of its portfolio assets

Q&A continued

in connection with the merger, and if the Fund recognizes capital gains in these sales on a net basis, it will distribute to shareholders those gains. You may be subject to tax on any distributions made to you. At this time, DWS Japan Equity Fund does not expect to distribute any such gains to shareholders. If you choose to redeem or exchange your shares before or after the merger, the redemption or exchange likely will generate taxable gain or loss; therefore, you may wish to consult a tax advisor before doing so. Of course, you may also be subject to taxation as a result of the normal operations of your fund whether or not the merger occurs.

Q Upon the merger, will I own the same number of shares?

A The aggregate value of your shares will not change as a result of the merger. However, the number of shares you own will likely change as a result of the merger because your shares will be exchanged at the net asset value per share of DWS Japan Equity Fund, which will probably be different from the net asset value per share of DWS International Value Opportunities Fund.

Q When would the merger take place?

A If approved, the merger would occur on or about July 20, 2009, or as soon as reasonably practicable after shareholder approval is obtained. Shortly after completion of the merger, shareholders whose accounts are affected by the merger will receive a confirmation statement reflecting their new account number and the number of shares owned.

Q How can I vote?

A You can vote in any one of four ways:

ⁿ

Through the Internet, by going to the website listed on your proxy card;

ⁿ

By telephone, with a toll-free call to the number listed on your proxy card;

ⁿ

By mail, by sending the enclosed proxy card, signed and dated, to us in the enclosed envelope; or

Q&A continued

ⁿ

In person, by attending the special meeting.

We encourage you to vote over the Internet or by telephone, following the instructions that appear on your proxy card. Whichever method you choose, please take the time to read the full text of the Prospectus/Proxy Statement before you vote.

Q Will I be able to continue to track my fund’s performance in the newspaper, on the Internet or through the voice response system?

A Yes. You will be able to track your fund’s performance through all these means.

Q Whom should I call for additional information about this Prospectus/Proxy Statement?

A Please call Computershare Fund Services, Inc., your fund’s proxy solicitor, at 1-866-953-5820.

LOGO

DWS JAPAN EQUITY FUND

A Message from the President

, 2009

Dear Shareholder:

I am writing to ask for your vote on an important matter that affects your investment in DWS Japan Equity Fund, a series of DWS Investors Funds, Inc. (“Japan Equity Fund”). While you are, of course, welcome to join us at the Japan Equity Fund shareholders’ meeting, most shareholders cast their vote by filling out and signing the enclosed proxy card, or by voting by telephone or through the Internet.

We are asking for your vote on the following matter:


Proposal:		Approving an Agreement and Plan of Reorganization and the transactions it contemplates, including the transfer of all of the assets of Japan Equity Fund to DWS International Value Opportunities Fund (“International Value Fund”), in exchange for shares of International Value Fund and the assumption by International Value Fund of all the liabilities of Japan Equity Fund, and the distribution of such shares, on a tax-free basis for federal income tax purposes, to the shareholders of Japan Equity Fund in complete liquidation and termination of Japan Equity Fund.

DWS Investments believes the proposed merger is in the best interests of DWS Japan Equity Fund for several reasons. DWS Investments believes that DWS Japan Equity Fund’s narrow geographic focus presents limited opportunities to attract new investments to the Fund. As a result, DWS Japan Equity Fund is facing the likely prospect, over time, of declining assets and minimal opportunities to reduce costs through economies of scale. In light of the significant decline of asset flows into actively managed country-specific funds such as DWS Japan Equity Fund, DWS Investments has advised the Board that it no longer wishes to manage a Japan-only open-end fund such as DWS Japan Equity Fund. Further, the fund’s subadviser, Deutsche Asset Management (Japan) Limited (“DeAMJ”) plans to terminate its sub-advisory agreement with DWS Japan Equity Fund during the first half of 2009 due to changes in portfolio management personnel in Japan. Given these considerations, and in order to provide shareholders with a continuity of investment of non-U.S. equity securities within the DWS fund family, DWS Investments believes that a merger into DWS International Value Opportunities Fund is the best alternative for shareholders of DWS Japan Equity Fund. Among other benefits, the merger would result in lower management fees and lower operating expenses for shareholders of DWS Japan Equity Fund. The Board of Directors of Japan Equity Fund has unanimously approved the proposed merger.

In determining to approve the merger, the Board conducted a thorough review of the potential implications of the merger, and concluded that Japan Equity Fund’s participation in the proposed merger would be in the best interests of Japan Equity Fund

and would not dilute the interests of its existing shareholders. A discussion of the factors the Board considered is included in the attached Prospectus/Proxy Statement. If the merger is approved, the Board expects that the proposed changes will take effect during the third calendar quarter of 2009.

Included in this booklet is information about the upcoming shareholders’ meeting:

•

A Notice of a Special Meeting of Shareholders, which summarizes the issue for which you are being asked to provide voting instructions; and

•

A Prospectus/Proxy Statement, which provides detailed information on International Value Fund, the specific proposal being considered at the shareholders’ meeting, and why the proposal is being made.

Although we would like very much to have each shareholder attend the meeting, we realize this may not be possible. Whether or not you plan to be present, we need your vote. We urge you to review the enclosed materials thoroughly. Once you’ve determined how you would like your interests to be represented, please promptly complete, sign, date and return the enclosed proxy card, vote by telephone or record your voting instructions on the Internet. A postage-paid envelope is enclosed for mailing, and telephone and Internet voting instructions are listed at the top of your proxy card. You may receive more than one proxy card. If so, please vote each one.

I’m sure that you, like most people, lead a busy life and are tempted to put this proxy aside for another day. Please don’t. Your prompt return of the enclosed proxy card (or your voting by telephone or through the Internet) may save the necessity and expense of further solicitations.

Your vote is important to us. We appreciate the time and consideration I am sure you will give to this important matter. If you have questions about the proposal, please call Computershare Fund Services, Inc., Japan Equity Fund’s proxy solicitor, at 1-866-953-5820 or contact your financial advisor. Thank you for your continued support of DWS Investments.

Sincerely yours,

LOGO

Michael Clark

President

DWS Japan Equity Fund

DWS JAPAN EQUITY FUND

NOTICE OF A SPECIAL MEETING OF SHAREHOLDERS

This is the formal agenda for your Fund’s shareholder meeting. It tells you what matter will be voted on and the time and place of the meeting, in the event you choose to attend in person.

To the Shareholders of DWS Japan Equity Fund, a series of DWS Investors Funds, Inc. (“Japan Equity Fund”):

A Special Meeting of Shareholders of Japan Equity Fund will be held June 19, 2009 at 4:00 pm, Eastern time, at the offices of Deutsche Investment Management Americas Inc., 345 Park Avenue, 27th Floor, New York, New York 10154 (the “Meeting”), to consider the following (the “Proposal”):


Proposal:		Approving an Agreement and Plan of Reorganization and the transactions it contemplates, including the transfer of all of the assets of Japan Equity Fund to DWS International Value Opportunities Fund (“International Value Fund”), in exchange for shares of International Value Fund and the assumption by International Value Fund of all the liabilities of Japan Equity Fund, and the distribution of such shares, on a tax-free basis for federal income tax purposes, to the shareholders of Japan Equity Fund in complete liquidation and termination of Japan Equity Fund.

The persons named as proxies will vote in their discretion on any other business that may properly come before the Meeting or any adjournments or postponements thereof.

Holders of record of shares of Japan Equity Fund at the close of business on April 14, 2009 are entitled to vote at the Meeting and at any adjournments or postponements thereof.

The chairman of the Meeting may adjourn the Meeting to a designated time, not more than 120 days after the record date, without notice with respect to the proposal to be considered, whether or not a quorum is present with respect to the proposal. Upon motion of the chairman of the Meeting, the question of adjournment also may be submitted to a vote of the shareholders and, in such a case, the adjournment must be approved by the vote of the holders of a majority of the shares present and entitled to vote with respect to the proposal without further notice. The Board may postpone the Meeting of shareholders prior to the Meeting with notice to the shareholders entitled to vote at, or receive notice of, the Meeting.

By order of the Board of Directors

LOGO

John Millette

Secretary

, 2009

WE URGE YOU TO MARK, SIGN, DATE AND MAIL THE ENCLOSED PROXY IN THE POSTAGE-PAID ENVELOPE PROVIDED OR RECORD YOUR VOTING INSTRUCTIONS BY TELEPHONE OR THROUGH THE INTERNET SO THAT YOU WILL BE REPRESENTED AT THE MEETING.

IF YOU SIMPLY SIGN THE PROXY CARD, IT WILL BE VOTED IN ACCORDANCE WITH THE BOARD’S RECOMMENDATION ON THE PROPOSAL. YOUR PROMPT RETURN OF THE ENCLOSED PROXY CARD (OR YOUR VOTING BY TELEPHONE OR VIA THE INTERNET) MAY SAVE THE NECESSITY AND EXPENSE OF FURTHER SOLICITATIONS.

INSTRUCTIONS FOR SIGNING PROXY CARDS

The following general rules for signing proxy cards may be of assistance to you and avoid the time and expense involved in validating your vote if you fail to sign your proxy card properly.

1. Individual Accounts: Sign your name exactly as it appears in the registration on the proxy card.

2. Joint Accounts: Either party may sign, but the name of the party signing should conform exactly to the name shown in the registration on the proxy card.

3. All Other Accounts: The capacity of the individual signing the proxy card should be indicated unless it is reflected in the form of registration. For example:


Registration		Valid Signature
Corporate Accounts:
(1) ABC Corp.		ABC Corp. John Doe, Treasurer
(2) ABC Corp.		John Doe, Treasurer
(3) ABC Corp. c/o John Doe, Treasurer		John Doe
(4) ABC Corp. Profit Sharing Plan		John Doe, Trustee

Partnership Accounts
(1) The XYZ Partnership		Jane B. Smith, Partner
(2) Smith and Jones, Limited Partnership		Jane B. Smith, General Partner

Trust Accounts
(1) ABC Trust Account		Jane B. Doe, Trustee
(2) Jane B. Doe, Trustee u/t/d 12/28/78		Jane B. Doe

Custodial or Estate Accounts
(1) John B. Smith, Cust. f/b/o John B. Smith Jr. UGMA/UTMA		John B. Smith
(2) Estate of John B. Smith		John B. Smith, Jr., Executor

IMPORTANT INFORMATION

FOR SHAREHOLDERS OF

DWS JAPAN EQUITY FUND

This document contains a Prospectus/Proxy Statement and a proxy card. A proxy card is, in essence, a ballot. When you vote your proxy, it tells us how to vote on your behalf on an important issue relating to your Fund. If you complete and sign the proxy (or tell us how you want to vote by voting by telephone or through the Internet), we’ll vote it exactly as you tell us. If you simply sign the proxy, we’ll vote it in accordance with the Board’s recommendation on page .

We urge you to review the Prospectus/Proxy Statement carefully, and either fill out your proxy card and return it to us by mail, vote by telephone or record your voting instructions through the Internet. Your prompt return of the enclosed proxy card (or your voting by telephone or through the Internet) may save the necessity and expense of further solicitations.

We want to know how you would like to vote and welcome your comments. Please take a few minutes to read these materials and return your proxy to us. If you have any questions, please call Computershare Fund Services, Inc., DWS Japan Equity Fund’s proxy solicitor, at the special toll-free number we have set up for you 1-866-953-5820 or contact your financial advisor.

PROSPECTUS/PROXY STATEMENT

, 2009


Acquisition of the assets of:		By and in exchange for shares of:

DWS Japan Equity Fund, a series of DWS Investors Funds, Inc.		DWS International Value Opportunities Fund, a series of DWS International Fund, Inc.
345 Park Avenue New York, NY 10154 800-621-1048 (Class A, B and C Shares) 800-728-3337 (Class S Shares)		345 Park Avenue New York, NY 10154 800-621-1048 (Class A and C Shares) 800-728-3337 (Class S Shares)

This Prospectus/Proxy Statement is being furnished in connection with the proposed merger of DWS Japan Equity Fund, Inc. (“Japan Equity Fund”) into DWS International Value Opportunities Fund (“International Value Fund”). Japan Equity Fund and International Value Fund are referred to herein collectively as the “Funds,” and each is referred to herein individually as a “Fund.” As a result of the proposed merger, each shareholder of Japan Equity Fund will receive a number of full and fractional shares of the corresponding class of International Value Fund equal in aggregate value as of the Valuation Time (as defined below on page ) to the aggregate value of such shareholder’s Japan Equity Fund shares, with the exception of Class B shareholders of Japan Equity Fund who will receive a number of full and fractional Class A shares of International Value Fund equal in aggregate value as of the Valuation Time to the aggregate value of such shareholder’s Class B shares in Japan Equity Fund.

This Prospectus/Proxy Statement is being mailed on or about , 2009. It explains concisely what you should know before voting on the matter described herein or investing in International Value Fund, an open-end management investment company. Please read it carefully and keep it for future reference.

The securities offered by this Prospectus/Proxy Statement have not been approved or disapproved by the Securities and Exchange Commission (the “SEC”), nor has the SEC passed upon the accuracy or adequacy of this Prospectus/Proxy Statement. Any representation to the contrary is a criminal offense.

The following documents have been filed with the SEC and are incorporated into this Prospectus/Proxy Statement by reference:

(i)

the prospectus of International Value Fund dated December 1, 2008, as supplemented from time to time, for Class A and C shares, a copy of which, if applicable, is included with this Prospectus/Proxy Statement;

(ii)

the prospectus of International Value Fund dated December 1, 2008, as supplemented from time to time, for Class S shares, a copy of which, if applicable, is included with this Prospectus/Proxy Statement;

(iii)

the prospectus of Japan Equity Fund dated December 1, 2008, as supplemented from time to time, for Class A, B and C shares;

(iv)

the prospectus of Japan Equity Fund dated December 1, 2008, as supplemented from time to time, for Class S shares;

(v)

the statement of additional information of Japan Equity Fund dated December 1, 2008, as supplemented from time to time, for Class A, B and C shares;

(vi)

the statement of additional information of Japan Equity Fund dated December 1, 2008, as supplemented from time to time, for Class S shares;

(vii)

the statement of additional information relating to the proposed merger, dated 2009 (the “Merger SAI”); and

(vii)

the audited financial statements and related independent registered public accounting firm’s report for Japan Equity Fund contained in the Annual Report for the fiscal year ended August 31, 2008.

No other parts of Japan Equity Fund’s Annual Report are incorporated by reference herein.

The financial highlights for International Value Fund contained in the Annual Report to shareholders for the fiscal year ended August 31, 2008, are attached to this Prospectus/Proxy Statement as Exhibit B.

Shareholders may get free copies of the Funds’ Annual Reports, Semi-annual Reports, prospectuses, statements of additional information (the “SAIs”) and/or the Merger SAI, request other information about a Fund, or make shareholder inquiries, by contacting their financial advisor or by calling the corresponding Fund at 1-800-621-1048 (1-800-728-3337 for Class S shares).

Like shares of Japan Equity Fund, shares of International Value Fund are not deposits or obligations of, or guaranteed or endorsed by, any financial institution, are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other agency, and involve risk, including the possible loss of the principal amount invested.

This document is designed to give you the information you need to vote on the proposal. Much of the information is required disclosure under rules of the SEC; some of it is technical. If there is anything you don’t understand, please contact Computershare Fund Services, Inc., Japan Equity Fund’s proxy solicitor, at 1-866-953-5820, or contact your financial advisor.

Each Fund is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and in accordance therewith files reports and other information with the SEC. You may review and copy information about the Funds, including the SAIs, at the SEC’s public reference room at 100 F Street, N.E., Washington, D.C. You may call the SEC at 1-202-551-5850 for information about the operation of the public reference room. You may obtain copies of this information, with payment of a duplication fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by writing the Public Reference Branch, Office of Consumer Affairs and Information Services, Securities and Exchange Commission, Washington, D.C. 20549. You may also access reports and other information about the Funds on the EDGAR database on the SEC’s Internet site at http://www.sec.gov.

I. SYNOPSIS

The responses to the questions that follow provide an overview of key points typically of concern to shareholders considering a proposed merger between mutual funds. These responses are qualified in their entirety by the remainder of this Prospectus/Proxy Statement, which you should read carefully because it contains additional information and further details regarding the proposed merger.

What is being proposed?

The Board of Japan Equity Fund is recommending that shareholders approve the transactions contemplated by the Agreement and Plan of Reorganization (as described below in Part IV and the form of which is attached hereto as Exhibit A), which are referred to herein as a merger of Japan Equity Fund into International Value Fund. If approved by shareholders, all of the assets of Japan Equity Fund will be transferred to International Value Fund solely in exchange for the issuance and delivery to Japan Equity Fund of shares of International Value Fund (“Merger Shares”) with an aggregate value equal to the value of Japan Equity Fund’s assets net of liabilities and for the assumption by International Value Fund of all the liabilities of Japan Equity Fund. All Merger Shares delivered to Japan Equity Fund will be delivered at net asset value without a sales load, commission or other similar fee being imposed. Immediately following the transfer, the appropriate class of Merger Shares received by Japan Equity Fund will be distributed pro rata, on a tax-free basis for federal income tax purposes, to its shareholders of record.

What will happen to my shares of Japan Equity Fund as a result of the merger?

Your shares of Japan Equity Fund will, in effect, be exchanged on a federal income tax-free basis for shares of the same class of International Value Fund with an equal aggregate net asset value as of the Valuation Time (as defined below on page ), with the exception that Class B shareholders of Japan Equity Fund will receive Class A shares of International Value Fund with an equal aggregate net asset value as of the Valuation Time.

Why has the Board of Japan Equity Fund recommended that shareholders approve the merger?

DWS Investments advised the Board that it believes that the proposed merger is in the best interests of DWS Japan Equity Fund for several reasons, noting in particular that DWS Japan Equity Fund’s narrow geographic focus presents limited opportunities to attract new investments to the Fund. As a result, DWS Japan Equity Fund is facing the likely prospect, over time, of declining assets and minimal opportunities to reduce costs through economies of scale. In light of the significant decline of asset flows into actively managed country-specific funds such as DWS Japan Equity Fund, DWS Investments has advised the Board that it no longer wishes to manage a Japan-only open-end fund such as DWS Japan Equity Fund. Further, the fund’s subadviser, Deutsche Asset Management (Japan) Limited (“DeAMJ”) plans to terminate its sub-advisory agreement with DWS Japan Equity Fund during the first half of 2009 due to changes in portfolio management personnel in Japan. Given these considerations, and in order to provide shareholders with a continuity of investment of non-U.S. equity securities within the DWS fund

family, DWS Investments believes that a merger into DWS International Value Opportunities Fund is the best alternative for shareholders of DWS Japan Equity Fund. Among other benefits, the merger would result in lower management fees and lower operating expenses for shareholders of DWS Japan Equity Fund. In determining to recommend that shareholders of Japan Equity Fund approve the merger, the Board considered, among others, the following factors:

•

The merger would be a tax-free reorganization for federal income tax purposes and would provide continuity of investment of non-U.S. equity securities within the DWS fund family for shareholders of Japan Equity Fund, including access to DWS Investments’ international equity investment expertise and preservation of shareholders’ exchange rights into other DWS funds;

•

The effective advisory fees paid by the combined fund will be lower at all asset levels as compared to the advisory fees paid by Japan Equity Fund;

•

The estimated total operating expense ratios of Class A, Class C and Class S shares of the combined fund were expected to be equal to or lower than the current total operating expense ratios of the corresponding classes of Japan Equity Fund; and that Deutsche Investment Management Americas Inc. (“DIMA” or “Advisor”) has agreed to merge Class B shares of Japan Equity into Class A of International Value Fund and that the estimated total operating expense ratio of Class A shares of the combined fund was expected to be lower than the total operating expense ratio of Class B shares of Japan Equity Fund; and

•

Similarities and differences between Japan Equity Fund’s and International Value Fund’s investment objectives, policies and restrictions.

The Board has concluded that: (1) the merger is in the best interests of Japan Equity Fund and (2) the interests of the existing shareholders of Japan Equity Fund will not be diluted as a result of the merger. Accordingly, the Board unanimously recommends that shareholders approve the Agreement (as defined on page ) effecting the merger. For a complete discussion of the Board’s considerations please see “Information About the Proposed Merger—Background and Board’s Considerations Relating to the Proposed Merger” below.

What are the investment goals, policies and restrictions of the Funds?

While not identical, the two Funds have similar investment objectives and techniques. Japan Equity Fund seeks high capital appreciation. International Value Fund seeks long-term capital appreciation, with current income as a secondary objective.

Japan Equity Fund normally 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). Japan Equity 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. Japan Equity Fund’s equity investments are mainly common stocks, but may also include preferred stocks and other securities with equity characteristics, such as convertible securities and warrants.

International Value Fund normally 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 International Value Fund invests are based in the developed foreign countries that make up the Morgan Stanley Capital International Europe, Australasia and Far East Index (“MSCI EAFE Index”). International Value Fund may also invest a portion of its assets in companies based in the emerging markets of Latin America, the Middle East, Europe, Asia and Africa if the portfolio managers believe that their return potential more than compensates for the extra risks associated with these markets. Typically, International Value Fund would not hold more than 20% of its net assets in emerging markets. In implementing this overall strategy, International Value Fund may experience a high portfolio turnover rate. International Value Fund’s equity investments are mainly common stocks, but may also include other types of equities such as preferred stocks or convertible securities. International Value 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.

Both Funds are permitted, but not required, to use various types of derivatives (contracts whose value is based on, for example, indices, currencies or securities). Derivatives may be used for hedging and for risk management or for non-hedging purposes to seek to enhance potential gains. Both Funds may use derivatives in circumstances where portfolio management believes they offer an economical means of gaining exposure to a particular asset class or to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the market. In particular, Japan Equity Fund may use futures and options, including sales of covered put and call options. In addition, both Funds may lend their investment securities in an amount up to 33¹/3% of their total assets to approved institutional borrowers. Please also see Part II—Investment Strategies and Risk Factors—below for a more detailed comparison of the Funds’ investment policies and restrictions.

The following table sets forth a summary of the composition of each Fund’s investment portfolio as of February 28, 2009 and DWS Investments’ estimation of the portfolio composition of International Value Fund assuming consummation of the proposed merger.

Portfolio Composition

(as a % of Fund)

Sector Diversification


	Japan Equity Fund		International Value Fund		International Value Fund— Estimated (assuming consummation of merger)⁽¹⁾
Consumer Discretionary	16.0	%	8.0	%	8.0	%
Consumer Staples	4.0	%	5.0	%	5.0	%
Energy	1.0	%	13.0	%	13.0	%
Financials	11.0	%	10.0	%	10.0	%
Health Care	6.0	%	12.0	%	12.0	%
Industrials	19.0	%	23.0	%	23.0	%
Information Technology	15.0	%	2.0	%	2.0	%
Materials	19.0	%	7.0	%	7.0	%
Telecom Services	4.0	%	10.0	%	10.0	%
Utilities	5.0	%	10.0	%	10.0	%

Total	100.0	%	100.0	%	100.0	%

⁽¹⁾

Reflects DWS Investments’ estimation of the portfolio composition of International Value Fund subsequent to the merger, taking into account that prior to the merger, the investment portfolio of Japan Equity Fund will be liquidated and proceeds will be used to acquire other securities consistent with the current implementation of the investment objective, policies, restrictions and strategies of International Value Fund. There can be no assurance as to actual portfolio composition of International Value Fund subsequent to the merger.

Geographic Diversification


	Japan Equity Fund		International Value Fund		International Value Fund— Estimated (assuming consummation of merger)⁽¹⁾
Europe (excluding the United Kingdom)	—		68.0	%	68.0	%
United Kingdom	—		20.0	%	20.0	%
Japan	100.0	%	3.0	%	3.0	%
United States and Canada	—		1.0	%	1.0	%
Pacific Basin	—		6.0	%	6.0	%
Africa	—		2.0	%	2.0	%
Latin America	—		—		—

Total	100.0	%	100.0	%	100.0	%

⁽¹⁾

Reflects DWS Investments’ estimation of the portfolio composition of International Value Fund subsequent to the merger, taking into account that prior to the merger, substantially all of the investment portfolio of Japan Equity Fund will be liquidated and proceeds will be used to acquire other securities consistent with the current implementation of the investment objective, policies, restrictions and strategies of International Value Fund. There can be no assurance as to actual portfolio composition of International Value Fund subsequent to the merger.

How do the management fees and expense ratios of the two Funds compare?

The following tables summarize the fees and expenses you may pay when investing in the Funds, the expenses that each Fund incurred during its most recent fiscal year and the pro forma expense ratios of International Value Fund assuming consummation of the merger as of that date.

As shown below, the merger is expected to result in lower total expense ratios for shareholders of Japan Equity Fund. However, there can be no assurance that the merger will result in expense savings.

Shareholder Fees

(fees paid directly from your investment)


Fee Table	Class A		Class B		Class C		Class S
Maximum Sales Charge (Load) Imposed on Purchases (as % of offering price)
Japan Equity Fund	5.75	%⁽¹⁾	None		None		None
International Value Fund	5.75	%⁽¹⁾	N/A	⁽⁴⁾	None		None
Maximum Contingent Deferred Sales Charge (Load) (as% of redemption proceeds)
Japan Equity Fund	None	⁽²⁾	4.00	%	1.00	%	None
International Value Fund	None	⁽²⁾	N/A	⁽⁴⁾	1.00	%	None
Redemption/Exchange Fee on shares owned less than 15 days (as % of redemption proceeds)⁽³⁾
Japan Equity Fund	2.00	%	2.00	%	2.00	%	2.00	%
International Value Fund	2.00	%	N/A	⁽⁴⁾	2.00	%	2.00	%

⁽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.

⁽²⁾

The redemption of shares purchased at net asset value under the Large Order NAV Purchase Privilege 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 next six months following purchase.

⁽³⁾

This fee is charged on all applicable redemptions or exchanges.

⁽⁴⁾

Class B shares of Japan Equity Fund will be exchanged for Class A shares of International Value Fund as a result of the proposed merger.

Annual Fund Operating Expenses⁽¹⁾

(expenses that are deducted from Fund assets)


	Management Fees		Distribution/ Service (12b-1) Fee		Other Expenses		Total Annual Fund Operating Expenses		Less Expense Waiver/ Reimburse- ments		Net Annual Fund Operating Expenses
Japan Equity Fund
Class A	0.85	%	0.24	%	0.65	%⁽³⁾	1.74	%	0.00	%	1.74	%
Class B⁽²⁾	0.85	%	1.00	%	0.76	%⁽³⁾	2.61	%	0.00	%	2.61	%⁽²⁾
Class C	0.85	%	1.00	%	0.70	%⁽³⁾	2.55	%	0.00	%	2.55	%
Class S	0.85	%	None		0.91	%⁽³⁾	1.76	%	0.27	%⁽⁴⁾	1.49	%⁽⁴⁾
International Value Fund
Class A	0.80	%	0.22	%	1.41	%⁽³⁾	2.43	%	0.91	%⁽⁵⁾	1.52	%⁽⁵⁾
Class C	0.80	%	0.97	%	1.39	%⁽³⁾	3.16	%	0.89	%⁽⁵⁾	2.27	%⁽⁵⁾
Class S	0.80	%	None		1.47	%⁽³⁾	2.27	%	1.00	%⁽⁵⁾	1.27	%⁽⁵⁾
International Value Fund (Pro forma combined)⁽⁷⁾
Class A	0.80	%	0.24	%	0.70	%⁽³⁾⁽⁸⁾	1.74	%	0.22	%⁽⁶⁾	1.52	%⁽⁶⁾
Class C	0.80	%	1.00	%	0.73	%⁽³⁾⁽⁸⁾	2.53	%	0.26	%⁽⁶⁾	2.27	%⁽⁶⁾
Class S	0.80	%	None		0.93	%⁽³⁾⁽⁸⁾	1.73	%	0.46	%⁽⁶⁾	1.27	%⁽⁶⁾

⁽¹⁾

The Annual Fund Operating Expenses table is presented as of each Fund’s fiscal year end (August 31, 2008). The pro forma combined figures assume the consummation of the merger on August 31, 2008 and reflect average net asset levels for both Funds for the 12-month period ended August 31, 2008. It is important for you to understand that a decline in either Fund’s average net assets during the current fiscal year due to recent unprecedented market volatility or other factors could cause such Fund’s expense ratios for the Fund’s current fiscal year to be higher than the expense information presented. Based on each Fund’s unaudited semi-annual report dated February 28, 2009, the gross annualized expense ratios of Class A, B, C and S shares of Japan Equity Fund are estimated at 1.97%, 2.96%, 2.86% and 2.13%, respectively, while the gross annualized expense ratios of Class A, C and S shares of International Value Fund are estimated at 3.01%, 3.72% and 2.85%, respectively.

⁽²⁾

Class B shares of Japan Equity Fund will be exchanged for Class A shares of International Value Fund as a result of the proposed merger.

⁽³⁾

Includes 0.10% paid to DIMA, the investment manager for the Funds, for administrative and accounting services pursuant to an Administrative Services Agreement.

⁽⁴⁾

Through November 30, 2009, DIMA 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 Japan Equity Fund’s total operating expenses at 1.49% for Class S shares, excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest.

⁽⁵⁾

Through November 30, 2009, DIMA 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 International Value Fund’s total operating expenses at 1.52%, 2.27% and 1.27% for Class A, Class C and Class S shares, respectively, excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest.

⁽⁶⁾

Contingent upon completion of the merger, for one year following the merger, DIMA 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 International Value Fund’s total operating expenses at 1.52%, 2.27% and 1.27% for Class A, Class C and Class S shares, respectively, excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest.

⁽⁷⁾

Pro forma expenses do not include the expenses expected to be borne by Japan Equity Fund in connection with the merger. See pages and for additional information on these fees.

⁽⁸⁾

Other expenses are estimated, accounting for the effect of the merger.

Examples

These examples translate the expenses shown in the preceding table into dollar amounts (including the effect of the expense cap for the one year period for Class S shares of Japan Equity Fund and Class A, C and S shares of International Value Fund). By doing this, you can more easily compare the costs of investing in the Funds. The examples make certain assumptions. They assume that you invest $10,000 in a Fund for the time periods shown and reinvest all dividends and distributions. They also assume a 5% return on your investment each year and that a Fund’s operating expenses remain the same. The examples are hypothetical; your actual costs and returns may be higher or lower.


	1 Year		3 Years		5 Years		10 Years
Japan Equity Fund
Assuming you sold your shares at the end of each period.
Class A	$	742	$	1,091	$	1,464	$	2,509
Class B⁽¹⁾	$	664	$	1,111	$	1,585	$	2,538
Class C	$	358	$	794	$	1,355	$	2,885
Class S	$	152	$	528	$	929	$	2,051
Assuming you kept your shares.
Class A	$	742	$	1,091	$	1,464	$	2,509
Class B⁽¹⁾	$	264	$	811	$	1,385	$	2,538
Class C	$	258	$	794	$	1,355	$	2,885
Class S	$	152	$	528	$	929	$	2,051
International Value Fund
Assuming you sold your shares at the end of each period.
Class A	$	721	$	1,207	$	1,719	$	3,117
Class C	$	330	$	891	$	1,577	$	3,405
Class S	$	129	$	613	$	1,124	$	2,528
Assuming you kept your shares.
Class A	$	721	$	1,207	$	1,719	$	3,117
Class C	$	230	$	891	$	1,577	$	3,405
Class S	$	129	$	613	$	1,124	$	2,528
International Value Fund (Pro forma combined)
Assuming you sold your shares at the end of each period.
Class A	$	721	$	1,071	$	1,445	$	2,492
Class C	$	330	$	763	$	1,322	$	2,846
Class S	$	129	$	500	$	895	$	2,003
Assuming you kept your shares.
Class A	$	721	$	1,071	$	1,445	$	2,492
Class C	$	230	$	763	$	1,322	$	2,846
Class S	$	129	$	500	$	895	$	2,003

⁽¹⁾

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

The tables below set forth the annual management fee schedules of the Funds, expressed as a percentage of net assets. As of August 31, 2008, International Value Fund and Japan Equity Fund had net assets of $18,942,734 and $90,793,440, respectively (for more current asset levels, please see page [ ]).

The fee schedule for each Fund is as follows:


International Value Fund (Pre- and Post Merger)			Japan Equity Fund
First $500 million	0.800	%	First $500 million	0.850	%
Next $500 million	0.780	%	Next $500 million	0.835	%
Next $1 billion	0.760	%	Next $1 billion	0.820	%
Thereafter	0.740	%	Thereafter	0.805	%

What are the federal income tax consequences of the proposed merger?

For federal income tax purposes, no gain or loss is expected to be recognized by Japan Equity Fund or its shareholders as a direct result of the merger. Substantially all of the portfolio assets of Japan Equity Fund are expected to be sold in connection with the merger. The actual tax impact of such sales will depend on the difference between the price at which such portfolio assets are sold and Japan Equity Fund’s basis in such assets. Any capital gains recognized in these sales on a net basis will be distributed to shareholders as capital-gain dividends (to the extent of net realized long-term capital gains distributed) and/or ordinary dividends (to the extent of net realized short-term capital gains distributed) during or with respect to the year of sale, and such distributions will be taxable to shareholders. Additionally, because the merger will end the tax year of Japan Equity Fund, it will accelerate distributions to shareholders from Japan Equity Fund for its short tax year ending on the date of the merger. Those tax year-end distributions will be taxable and will include any capital gains resulting from portfolio turnover prior to the merger that were not previously distributed. At any time prior to the merger, a shareholder may redeem shares of Japan Equity Fund. This would likely result in the recognition of gain or loss to the shareholder for federal income tax purposes if the shareholder holds the shares in a taxable account.

The tax basis and holding period of the shareholders’ Japan Equity Fund shares are expected to carry over to the shareholders’ new shares in International Value Fund.

For a more detailed discussion of the federal income tax consequences of the merger, please see “Information about the Proposed Merger—Certain Federal Income Tax Consequences” below.

Will my dividends be affected by the merger?

The merger will not result in a change in dividend policy.

Do the procedures for purchasing, redeeming and exchanging shares of the two Funds differ?

No. The procedures for purchasing and redeeming shares of a particular class for each Fund, and for exchanging shares of each Fund for shares of other DWS funds, are

identical. However, Class B shareholders of Japan Equity Fund will receive shares of Class A of International Value Fund as a result of the merger, and following the merger will be subject to the procedures for purchasing, redeeming and exchanging shares that apply to Class A shares.

How will I be notified of the outcome of the merger?

If the proposed merger is approved by shareholders, you will receive confirmation after the merger is completed, indicating your new account number and the number of Merger Shares you are receiving. Otherwise, you will be notified in the next shareholder report of Japan Equity Fund.

10.

Will the number of shares I own change?

Yes, the number of shares you own will most likely change, but the aggregate value of the shares of International Value Fund you receive will equal the aggregate value of the shares of Japan Equity Fund that you hold at the Valuation Time (as defined on page ). Even though the net asset value per share of each Fund is likely to be different, the total value of each shareholder’s holdings will not change as a result of the merger.

11.

What percentage of shareholders’ votes is required to approve the merger?

Approval of the merger will require the affirmative vote of a “1940 Act Majority” of the outstanding voting securities of Japan Equity Fund, as such term is defined by the Investment Company Act of 1940 (the “1940 Act”). For the purpose of the foregoing vote, a “1940 Act Majority” is defined as (a) 67% of the voting securities of the Fund present at the Meeting, if the holders of more than 50% of the outstanding voting securities of the Fund are present or represented by proxy; or (b) more than 50% of the outstanding voting securities of the Fund, whichever is less.

The Directors believe that the proposed merger is in the best interests of Japan Equity Fund. Accordingly, the Directors unanimously recommend that shareholders vote FOR approval of the proposed merger.

II. INVESTMENT STRATEGIES AND RISK FACTORS

What are the main investment strategies and related risks of International Value Fund, and how do they compare with those of Japan Equity Fund?

Objectives and Strategies. International Value 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, Australasia and Far East Index (“MSCI EAFE Index”). The Fund may also invest a portion of its assets in companies based in the emerging markets of Latin America, the Middle East, Europe, Asia and Africa if the portfolio managers believe that their return potential more than compensates for the

extra risks associated with these markets. Typically, the Fund would not hold more than 20% of its net assets in emerging markets. In implementing this overall strategy, the Fund may experience a high portfolio turnover rate. The Fund’s equity investments are mainly common stocks, but may also include other types of equities such as preferred stocks or convertible securities. 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. The Fund invests for the long term. The portfolio managers employ a value strategy and invest in companies that they believe are undervalued. These are typically companies that have been historically sound but are temporarily out of favor. The Fund intends to invest primarily in companies whose market capitalizations fall within the normal range of the MSCI EAFE Index.

Japan Equity 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. The Fund’s equity investments are mainly common stocks, but may also include preferred stocks and other securities with equity characteristics, such as convertible securities and warrants.

The Funds use different investment processes. For International Value Fund, the portfolio managers track several thousand companies to arrive at between 50 to 70 stocks the Fund normally holds. The managers use a variety of quantitative screens to compare a company’s stock price to its book value, cash flow and dividend yield, and analyze individual companies to identify those that are financially sound and appear to have strong potential for long-term growth. After narrowing the investment universe through the use of valuation screens, the portfolio managers’ use of fundamental research tools lies at the heart of the investment process. The portfolio managers’ process brings an added dimension to this fundamental research by drawing on the insight of experts from a range of financial disciplines—regional stocks market specialists, global industry specialists, economists and quantitative analysts. They challenge, refine and amplify each other’s ideas. Their close collaboration is a critical element of the portfolio managers’ investment process.

For Japan Equity Fund, in choosing stocks portfolio management relies most heavily on the following analytical disciplines:

•

Bottom-up research. Portfolio management looks for individual companies with a history of above-average growth, strong competitive positioning, attractive prices relative to potential growth, sound financial strength and effective management, among other factors.

•

Growth orientation. Portfolio management generally looks for companies that it believes have above-average potential for sustainable growth of revenue or earnings and whose market value appears reasonable in light of their business prospects.

Portfolio management will normally sell a stock when it believes the issuer’s fundamental factors have changed, other investments offer better opportunities or when adjusting the Fund’s emphasis on a given industry.

Other Investments. Each Fund is permitted, but is not required, to use various types of derivatives (contracts whose value is based on, for example, indices, currencies or securities). Derivatives may be used for hedging and for risk management or non-hedging purposes to enhance potential gains. Each Fund may use derivatives in circumstances where portfolio management believes they offer an economical means of gaining exposure to a particular asset class or to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the market. In particular, Japan Equity Fund may use futures and options, including sales of covered put and call options.

Securities Lending. Each Fund may lend its investment securities in an amount up to 33¹/3% of its total assets to approved institutional borrowers who need to borrow securities in order to complete certain transactions.

Other Policies. Although major changes tend to be infrequent, each Fund’s Board could change the Fund’s investment objective without seeking shareholder approval. However, each Fund’s Board will provide shareholders with at least 60 days’ notice prior to making any changes to the Fund’s 80% investment policy as described herein.

As a temporary defensive measure, each Fund could shift up to 100% of its assets into investments such as money market securities. In the alternative, International Value Fund may shift up to 100% of its assets into other short-term securities that offer comparable levels of risk. This could prevent losses, but while engaged in a temporary defensive position, a Fund will not be pursuing its investment objectives. However, portfolio management may choose not to use these strategies for various reasons, even in volatile market conditions.

Each Fund may trade securities actively. This could raise transaction costs (thus lowering return) and could mean distributions to shareholders will be taxed at higher federal income tax rates.

Primary Risks. As with any investment, you may lose money by investing in International Value Fund. Certain risks associated with an investment in International Value Fund are summarized below. Subject to certain exceptions, the risks of an investment in International Value Fund are similar to the risks of an investment in Japan Equity Fund. More detailed descriptions of the risks associated with an investment in International Value Fund can be found in the International Value Fund prospectuses and SAI.

The value of your investment in International Value Fund will change with changes in the values of the investments held by International Value Fund. A wide array of factors can affect those values. In this summary we describe the principal risks that may affect International Value Fund’s investments as a whole. International Value Fund could be subject to additional principal risks because the types of investments it makes can change over time.

Stock Market Risk. As with most stock funds, the most important factor affecting International Value Fund is how stock markets perform. To the extent International Value Fund invests in a particular geographic region, the Fund’s performance may be proportionally affected by that region’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 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 International Value Fund makes and International Value Fund may not be able to get attractive prices for them. An investment in Japan Equity Fund is subject to a substantially similar risk.

Security Selection Risk. A risk that pervades all investing is the risk that the securities in the Fund’s portfolio may decline in value.

Foreign Investment Risk. Foreign investments in either Japan Equity Fund or International Value Fund 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.

•

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 currencies. Changes in exchange rates between foreign and the US dollar may affect the US dollar value of securities or the income or gain received on these securities.

•

Limited Legal Recourse Risk. Legal remedies for investors may be limited than the legal remedies available in the US.

•

Trading Practice Risk. Brokerage commissions and other fees are higher for foreign investments than for US. The procedures and rules governing foreign and custody may also involve delays in payment, delivery or recovery of money or investments.

•

Taxes. Foreign withholding and certain other taxes may reduce 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.

Emerging Market Risk. All of the risks of investing in foreign securities are increased in connection with investments in emerging markets securities. In addition, profound social changes and business practices that depart from norms in developed

countries’ economies have hindered the orderly growth of emerging economies and their markets in the past and have caused instability. High levels of debt tend to make emerging economies heavily reliant on foreign capital and vulnerable to capital flight. Countries with emerging economies are also more likely to experience high levels of inflation, deflation or currency devaluation, which could also hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative.

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 International Value 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 derivatives 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 these derivatives, to the extent employed, will have the intended effect, and their use could cause lower returns or even losses to International Value Fund. The use of derivatives by International Value Fund to hedge risk may reduce the opportunity for gain by offsetting the positive effect of favorable price movements.

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. An investment in Japan Equity Fund is also subject to this risk.

Securities Lending Risk. Any loss in the market price of securities loaned by International Value 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 International Value Fund’s delegate after a review of relevant facts and circumstances, including the creditworthiness of the borrower. An investment in Japan Equity Fund is also subject to this risk.

Performance Information. The following information provides some indication of the risks of investing in each Fund. Of course, a Fund’s past performance is not an indication of future performance.

The bar charts show how the performance of each Fund’s Class A shares has varied from year to year, which may give some idea of risk. The tables following the charts show how each Fund’s performance compares with one or more broad-based market indices (which, unlike the Funds, do not have any fees or expenses). The tables include the effects of maximum sales loads. After-tax returns are shown for Class A only and will vary for other classes. 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.

Calendar Year Total Returns (%)

International Value Fund – Class A Shares

LOGO

For the periods included in the bar chart:


Best Quarter: 6.82% (Q2, 2007)		Worst Quarter: -24.37% (Q3, 2008)

2009 Total Return as of March 31: -13.57%

Japan Equity Fund – Class A Shares

LOGO

For the periods included in the bar chart:


Best Quarter: 33.98% (Q4, 1999)		Worst Quarter: -23.09% (Q3, 2008)

2009 Total Return as of March 31: -15.14%

Average Annual Total Returns

(for period ended December 31, 2008)


	Past 1 year		Since Inception*
International Value Fund
Class A
Return before Taxes	-45.07	%	-11.78	%
Return after Taxes on Distributions	-45.15		-12.11
Return after Taxes on Distributions and Sale of Fund Shares	-28.68	**	-9.72	**
Class C (Return before Taxes)	-42.12		-10.32
Class S (Return before Taxes)	-41.57		-9.46
MSCI EAFE Index (reflects no deductions for fees, expenses or taxes)	-43.38		-12.22

Inception date for the Fund was July 5, 2006. Index comparison begins on June 30, 2006.

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

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

Morgan Stanley Capital International (MSCI) Europe, Australasia and the Far east (EAFE) Index is an unmanaged index that tracks international stock performance in the 21 developed markets of Europe, Australasia and the Far East.


	Past 1 year		Past 5 years		Past 10 Years
Japan Equity Fund
Class A
Return before Taxes	-41.05	%	-3.96	%	3.20	%
Return after Taxes on Distributions	-41.00		-5.68		0.00
Return after Taxes on Distributions and Sale of Fund Shares	-26.44	**	-2.96	**	1.94	**
Class B (Return before Taxes)	-39.86		-3.72		2.88
Class C (Return before Taxes)	-38.02		-3.57		3.04
Class S (Return before Taxes)	-37.50		-2.67		0.62	*
Tokyo Stock Exchange Stock Price Index (“TOPIX”) (reflects no deductions for fees, expenses or taxes)	-26.82		0.78		0.94

Inception date for Class S was July 15, 2002.

Tokyo Stock Exchange Stock Price Index (“TOPIX”) is an unmanaged capitalization-weighted measure (adjusted in US dollars) of all shares listed on the first section of the Tokyo Stock Exchange.

Current performance may be higher or lower than the performance data quoted above. For more recent performance information, call your financial advisor or 1-800-621-1048 (1-800-728-3337 for Class S shares) or visit our Web site at www.dws-investments.com.

III. OTHER INFORMATION ABOUT THE FUNDS

Advisor and Portfolio Managers. DIMA, with headquarters at 345 Park Avenue, New York, NY 10154, is the investment advisor for each Fund. Under the oversight of the Board of each Fund, DIMA, or a subadvisor, makes investment decisions, buys and sells securities for each Fund and conducts research that leads to these purchase and sale decisions. DIMA 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 (“DeAM”) and, within the U.S. represents the retail 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 funds, retail, private and commercial banking, investment banking and insurance.

International Value Fund. The subadvisor for International Value Fund is Deutsche Asset Management International GmbH (“DeAMI”), Mainzer Landstrasse 178-190, Frankfurt am Main, Germany. DeAMI renders investment advisory and management services to the Fund. DeAMI is an investment advisor registered with the Securities and Exchange Commission and currently manages institutional accounts and investment companies. DeAMI is a subsidiary of Deutsche Bank AG. DIMA compensates DeAMI out of the management fee it receives from the Fund.

International Value Fund is managed by a team of investment professionals who collaborate to develop and implement the Fund’s investment strategy. Each portfolio manager on the team has authority over all aspects of the 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 individuals handle the day-to-day management of International Value Fund:

Klaus Kaldemorgen is Lead Portfolio Manager for International Value Fund. Mr. Kaldemorgen is a Managing Director of DeAM. He joined DeAM in 1982 and began managing the International Value Fund in 2006.

Carmen Weber is Portfolio Manager for International Value Fund. Ms. Weber is a Director of DeAM. She joined DeAM in 2006 and has over 15 years of investment industry experience, most recently at Metzler. She began managing the International Value Fund in 2006.

International Value Fund’s statement of additional information provides additional information about the portfolio managers’ investments in the Fund, a description of the portfolio managers’ compensation structure and information regarding other accounts the portfolio team members manage.

Japan Equity Fund. The subadvisor for Japan Equity Fund is Deutsche Asset Management (Japan) Limited (“DeAMJ”), Sanno Park Tower, 2-11-1 Nagatacho, Chiyoda-ku, Tokyo, Japan 100-6173. Under DIMA’s oversight, DeAMJ renders daily investment advisory and management services, including services related to foreign securities, foreign currency transactions and related investments with regard to the Fund’s portfolio. DIMA compensates DeAMJ out of the management fee it receives from the Fund.

The following individual handles the day-to-day management of Japan Equity Fund:

Masaaki Kadota is the Portfolio Manager for Japan Equity Fund. Mr. Kadota is a Vice President of DeAMJ. He joined DeAMJ in 2001 and prior to that worked for five years at J.P. Morgan Securities and STB Asset Management. He began managing Japan Equity Fund in 2009.

Japan Equity Fund’s statement of additional information provides additional information about the portfolio manager’s investments in the Fund, a description of his compensation structure and information regarding other accounts he manages.

Distribution and Service Fees. Pursuant to separate Underwriting and Distribution Services Agreements, DWS Investments Distributors, Inc., 222 South Riverside Plaza, Chicago, Illinois 60606, an affiliate of DIMA, is the principal underwriter and distributor for the Class A, Class C and Class S shares of International Value Fund and the Class A, Class B, Class C and Class S shares of Japan Equity Fund, and acts as the agent of each Fund in the continuous offering of its shares. International Value Fund has adopted distribution and/or service plans on behalf of the Class A and C shares in accordance with Rule 12b-1 under the 1940 Act that are substantially identical to the corresponding distribution and/or service plans for Japan Equity Fund. The Rule 12b-1 plans allow the Funds to pay distribution and/or service fees for the sale and distribution of their shares and for services provided to shareholders. Because these fees are paid out of the Fund’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than other types of investments.

Class A shares of each Fund have a 12b-1 plan, under which a shareholder servicing fee of up to 0.25% is deducted from class assets each year. Class B shares of Japan Equity Fund and C shares of each Fund 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.

Directors and Officers. The Directors overseeing International Value Fund are the same as the Directors who oversee Japan Equity Fund: Paul K. Freeman (Chair), John W. Ballantine, Henry P. Becton, Dawn-Marie Driscoll, Keith R. Fox, Kenneth C. Froewiss, Richard J. Herring, William McClayton, Rebecca W. Rimel, Axel Schwarzer, William N. Searcy, Jr., Jean Gleason Stromberg and Robert H. Wadsworth. The officers of International Value Fund are also the same as those of Japan Equity Fund.

Independent Registered Public Accounting Firm (“Auditor”). PricewaterhouseCoopers LLP (“PwC”), 125 High Street, Boston, MA 02110 serves as each Fund’s independent registered public accounting firm. PwC audits and reports on each Fund’s annual financial statements, reviews certain regulatory reports and each Fund’s federal income tax returns, and performs other professional accounting, auditing, tax and advisory services when engaged to do so by each Fund.

Charter Documents.

International Value Fund is a series of DWS International Fund, Inc. and Japan Equity Fund is a series of DWS Investors Funds, Inc., each of which is a Maryland corporation. International Value Fund is governed by Articles of Amendment and Restatement effective June 23, 2006, as amended from time to time, its bylaws and Maryland law. Japan Equity Fund is governed by Articles of Amendment and Restatement effective July 28, 1997, as amended from time to time, its bylaws and Maryland law. The charter documents are similar but not identical to one another, and therefore shareholders of the Funds may have different rights. Additional information about each Fund’s charter documents is provided below.

Shares. The Directors of each Fund have the authority to create additional funds and to designate the relative rights and preferences as between the different funds. The

Directors also may authorize the division of shares of each 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 (unless granted by the Board of Directors and provided, however, that the Class B shares of the Japan Equity Fund are convertible into Class A shares of the Japan Equity Fund) and are redeemable as described in the SAI and in each Fund’s respective prospectus. Each Fund has the right to involuntarily redeem a shareholder’s shares at any time for any reason the Directors deem appropriate subject to applicable law. The International Value Fund also has the right to convert shares of the Fund or a series of the Fund into shares of another fund or series of DWS International Fund, Inc.

Each share has equal rights with each other share of the same class of the respective 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. However, a separate vote will be taken by the applicable Fund or class of shares of the applicable Fund on matters affecting that particular Fund or class when so required by applicable law, or when the Board of Directors determines that the interests of the applicable Fund or a class of shares of the applicable Fund in the matter differ from the interests of any other fund or class of shares of DWS International Fund, Inc. or DWS Investors Funds, Inc., as applicable. For example, a change in a fundamental investment policy for International Value Fund would be voted upon only by shareholders of International Value Fund, and adoption of a distribution plan of either Fund relating to a particular class of either Fund and requiring shareholder approval would be voted upon only by shareholders of that class.

International Value Fund shareholders of a particular class are not permitted to participate in a derivative or class action lawsuit on behalf of another fund or class or the shareholders of another fund or class.

All consideration received by either Fund for the issue or sale of shares of the Fund together with all assets in which such consideration is invested or reinvested, and all income, earnings, profits and proceeds, including proceeds from the sale, exchange or liquidation of assets, are held and accounted for separately from the other assets of DWS International Fund, Inc. or DWS Investors Funds, Inc., as applicable, subject only to the rights of creditors of the Funds, and belong irrevocably to the applicable Fund for all purposes. The assets and liabilities and the income and expenses attributable to each class of either Fund’s shares shall be determined separately from those of each other class of such Fund’s stock.

International Value Fund Directors have the explicit authority to establish and/or change sales loads or charges, expenses and fees (such as distribution and administrative expenses and administrative, recordkeeping, redemption, and service fees), account size requirements and other rights and provisions applicable to shares of each series or class, in accordance with the 1940 Act. In general, these terms would be disclosed in each Fund’s prospectus.

Shareholder Meetings. Neither Fund is required to hold annual meetings of shareholders unless required by the 1940 Act. Meetings of shareholders of either Fund may be called by the Board of Directors or the President, and shall be called by President or Secretary at the request in writing of shareholders entitled to cast a majority of the votes entitled to be cast at the meeting.

The quorum for a shareholder meeting of either Fund is the presence in person or by proxy of the holders of one-third of the shares of stock of the Fund entitled to vote at the meeting; shareholder meetings may be adjourned without notice other than announcement at the meeting at which the adjournment is taken, and the meeting may not be adjourned to a date more than 120 days after the original record date without further notice of the adjourned meeting date.

Election and Term of Directors. Each Director of the Corporation serves until the next meeting of shareholders, if any, called for the purpose of electing Directors and until the election and qualification of a successor or until such Director sooner dies, resigns, retires or is removed. Any Director may be removed at any meeting of shareholders by vote of a majority of the outstanding shares. The Directors shall promptly call a meeting of the shareholders for the purpose of voting upon the question of removal of any such Director or Directors when requested in writing to do so by the holders of not less than ten percent of the outstanding shares, and in that connection, the Directors will assist shareholder communications to the extent provided for in Section 16(c) under the 1940 Act.

Except as required by the 1940 Act or as described above, the Directors of either Fund need not call meetings of the shareholders for the election or reelection of Directors, or to fill vacancies on the Board. Subject to the limits of the 1940 Act, vacancies due to an increase in the number of Directors may be filled by a vote of the majority of the entire Board of Directors and vacancies due to death, resignation, removal disqualification or any other cause may be filled by a majority vote of the remaining Directors. When meetings of either Fund are held to elect Directors, Directors are elected by a plurality vote and there is no cumulative voting in the election of Directors.

Shareholder Liability. Pursuant to Maryland law, shareholders of International Value Fund and Japan Equity Fund generally have no personal liability for debts or obligations of the Funds or any other series of DWS International Value Fund, Inc. or DWS Investors Funds, Inc., as applicable, as a result of their status as shareholders.

Director Liability. Each Fund’s Articles of Amendment and Restatement, as amended, provide that the Directors, to the fullest extent permitted by the Maryland General Corporation Law and the 1940 Act, shall not be liable to the applicable Fund or its shareholders for money damages. The By-Laws, as amended, provide that the Fund will indemnify Directors and officers of the Corporation against liabilities and expenses actually incurred in connection with litigation in which they may be involved because of their positions with the Fund. However, nothing in the Articles of Amendment and Restatement, as amended, or the By-Laws, as amended, protects or indemnifies a Director or officer against any liability to which he or she 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.

The foregoing is only a summary of the charter documents of International Value Fund and Japan Equity Fund and is not a complete description of provisions contained in those sources. Shareholders should refer to the provisions of those documents and state law directly for a more thorough description.

IV. INFORMATION ABOUT THE PROPOSED MERGER

General. The shareholders of Japan Equity Fund are being asked to approve the merger pursuant to an Agreement and Plan of Reorganization between Japan Equity Fund and International Value Fund (the “Agreement”), the form of which is attached to this Prospectus/Proxy Statement as Exhibit A.

The merger is structured as a transfer of all of the assets of Japan Equity Fund to International Value Fund in exchange for the assumption by International Value Fund of all the liabilities of Japan Equity Fund and for the issuance and delivery of Merger Shares to Japan Equity Fund equal in aggregate value to the net value of the assets transferred to International Value Fund.

After receipt of the Merger Shares, Japan Equity Fund will distribute the Merger Shares to its shareholders, in proportion to their existing shareholdings, in complete liquidation of Japan Equity Fund, and the legal existence of Japan Equity Fund will be terminated. Each shareholder of Class A, Class C and Class S shares of Japan Equity Fund will receive a number of full and fractional Merger Shares of the same class(es) as, and equal in aggregate value as of the Valuation Time (as defined on page ) to, the aggregate value of the shareholder’s Japan Equity Fund shares. Shareholders of Class B shares of Japan Equity Fund will receive a number of full and fractional Class A Merger Shares, equal in aggregate value as of the Valuation Time to, the aggregate value of the shareholder’s Class B Japan Equity shares.

Prior to the date of the merger, Japan Equity Fund expects to liquidate substantially all of the fund’s portfolio. Proceeds from the liquidation will be used to acquire securities consistent with the current implementation of investment objective, policies, restrictions and investment strategies of International Value Fund. Japan Equity Fund will subsequently declare a taxable distribution which, together with all previous distributions, will have the effect of distributing to shareholders all of its net investment income and net realized capital gains, if any, through the date of the merger. The sale of such investments may increase the taxable distribution to shareholders of Japan Equity Fund occurring prior to the merger above that which they would have received absent the merger. Japan Equity Fund does not expect to distribute any capital gains as of the exchange date.

The Directors of Japan Equity Fund have unanimously voted to approve the Agreement and the proposed merger and to recommend that shareholders also approve the merger. The actions contemplated by the Agreement and the related matters described therein will be consummated only if approved by a 1940 Act Majority.

In the event that the merger does not receive the required shareholder approval, each Fund will continue to be managed as a separate Fund in accordance with its current investment objective and policies, and the Directors of each Fund may consider such alternatives as may be in the best interests of each Fund.

Background and Board’s Considerations Relating to the Proposed Merger. DWS Investments proposed the merger to the Board of Japan Equity Fund in January 2009. DWS Investments advised the Board that International Value Fund was the best alternative for shareholders of Japan Equity Fund, noting that Japan Equity Fund’s narrow geographic focus presents limited opportunities to attract new investments to the Fund and that, as a result, Japan Equity Fund faces the likely prospect, over time, of

declining assets and minimal opportunities to reduce costs through economies of scale. In light of the significant decline of asset flows into actively managed country-specific funds such as Japan Equity Fund, DWS Investments has advised the Board that it no longer wishes to manage a Japan-only open-end fund such as DWS Japan Equity Fund. Further, the fund’s subadviser, Deutsche Asset Management (Japan) Limited (“DeAMJ”) plans to terminate its sub-advisory agreement with Japan Equity Fund during the first half of 2009 due to changes in the portfolio management team in Japan. DWS Investments advised the Board that a merger of Japan Equity Fund into International Value Fund would provide shareholders with the opportunity to invest in a fund with lower management fees and a lower total operating expense ratio and would provide shareholders with a continuity of investment of non-U.S. equity securities within the DWS fund family.

The Directors of Japan Equity Fund conducted a thorough review of the potential implications of the merger on Japan Equity Fund and its shareholders. They were assisted in this review by their independent legal counsel. The Directors met on several occasions to review and discuss the merger, both among themselves and with representatives of DWS Investments.

On March 11, 2009, the Directors of Japan Equity Fund, including all Directors who are not “interested persons” (as defined in the 1940 Act) (“Independent Directors”), unanimously approved the terms of the proposed merger of Japan Equity Fund into International Value Fund. The Directors have also unanimously determined to recommend that the merger be approved by Japan Equity Fund’s shareholders.

In determining to recommend that the shareholders of Japan Equity Fund approve the merger, the Directors considered, among other factors:

•

The merger would provide a continuity of investment of non-U.S. equity securities within the DWS fund family for shareholders of Japan Equity Fund, including continued access to DWS Investments’ international equity expertise and preservation of shareholders’ exchange rights into other DWS funds;

•

The investment advisory fee schedules for Japan Equity Fund and International Value Fund, and, in particular, that the effective advisory fees paid by the combined fund will be lower at all asset levels as compared to the advisory fees paid by Japan Equity Fund;

•

The operating expense ratios of Japan Equity Fund and International Value Fund, including a comparison between the expenses of Japan Equity Fund and the estimated total operating expense ratios of the combined fund, and, in particular, noted that the total operating expense ratios of Class A, Class C and Class S shares of the combined fund were expected to be equal to or lower than the current total operating expense ratios of the corresponding classes of Japan Equity Fund; and that DIMA has agreed to merge Class B shares of Japan Equity into Class A of International Value Fund and that the estimated total operating expense ratio of Class A shares of the combined fund was expected to be lower that the total operating expense ratio of Class B of Japan Equity Fund;

•

DIMA’s commitment to cap the total operating expense ratio of each class of the combined fund at a level lower than the current total operating expense ratio of each corresponding class of Japan Equity Fund for at least one year following the merger;

•

DIMA’s commitment to cap expenses to be incurred by Japan Equity Fund in connection with the merger. More specifically, DWS Investments has agreed to bear expenses incurred by Japan Equity Fund in connection with the merger to the extent such expenses exceed the expected cost savings to be realized by shareholders of Japan Equity Fund at the time of the merger during the one-year period following the merger (See “Agreement and Plan of Reorganization” below for additional information regarding this cap);

•

Similarities and differences between Japan Equity Fund’s and International Value Fund’s investment objectives, policies and restrictions;

•

Various alternatives to the proposed merger (e.g., liquidation of Japan Equity Fund);

•

The merger would not result in the dilution of the interests of Japan Equity Fund shareholders and that the terms and conditions of the Agreement were fair and reasonable;

•

Services available to shareholders of Japan Equity Fund and International Value Fund are substantially similar on a class-level basis;

•

The investment performance of Japan Equity Fund and International Value Fund;

•

Prospects for the combined fund to attract additional assets; and

•

The federal income tax consequences of the merger on Japan Equity Fund and its shareholders, including the ability of Japan Equity Fund shareholders to defer a tax recognition event if so desired.

Based on all of the foregoing, the Directors concluded that Japan Equity Fund’s participation in the merger would be in the best interests of Japan Equity Fund and would not dilute the interests of Japan Equity Fund’s existing shareholders. The Board of Directors of Japan Equity Fund, including all of the Independent Directors, unanimously recommends that shareholders approve the merger.

Agreement and Plan of Reorganization. The proposed merger will be governed by the Agreement, the form of which is attached as Exhibit A. The Agreement provides that International Value Fund will acquire all of the assets of Japan Equity Fund solely in exchange for the assumption by International Value Fund of all the liabilities of Japan Equity Fund and for the issuance of Merger Shares equal in value to the value of the transferred assets net of assumed liabilities. The shares will be issued on the next full business day (the “Exchange Date”) following the time as of which the Funds’ shares are valued for determining net asset value for the merger (4:00 p.m. Eastern time, on July 17, 2009, or such other date and time as may be agreed upon by the parties (the “Valuation Time”)). The following discussion of the Agreement is qualified in its entirety by the full text of the Agreement.

Japan Equity Fund will transfer all of its assets to International Value Fund, and in exchange, International Value Fund will assume all the liabilities of Japan Equity Fund and deliver to Japan Equity Fund a number of full and fractional Merger Shares having an aggregate net asset value equal to the value of the assets of Japan Equity Fund, less the value of the liabilities of Japan Equity Fund assumed by International Value Fund. After receipt of the Merger Shares, Japan Equity Fund will distribute the Merger Shares to its shareholders, in proportion to their existing shareholdings, in complete liquidation of Japan Equity Fund, and the legal existence of Japan Equity Fund will be terminated.

Each shareholder of Class A, Class C and Class S shares of Japan Equity Fund will receive a number of full and fractional Merger Shares of the same class(es) as, and equal in aggregate value as of the Valuation Time to, the aggregate net asset value of the shareholder’s Japan Equity Fund shares. Shareholders of Class B shares of Japan Equity Fund will receive a number of full and fractional Class A Merger Shares equal in aggregate value as of the Valuation Time to the aggregate net asset value of the shareholder’s Class B Japan Equity Fund shares.

This distribution will be accomplished by the establishment of accounts on the share records of International Value Fund in the name of such Japan Equity Fund shareholders, each account representing the respective number of full and fractional Merger Shares of each class due the respective shareholder. New certificates for Merger Shares will not be issued.

The Directors of Japan Equity Fund and of International Value Fund have determined that the interests of each Fund’s shareholders will not be diluted as a result of the transactions contemplated by the Agreement, and the Directors of Japan Equity Fund and of International Value Fund have determined that the proposed merger is in the best interests of each Fund.

The consummation of the merger is subject to the conditions set forth in the Agreement. The Agreement may be terminated and the merger abandoned (i) by mutual consent of International Value Fund and Japan Equity Fund, (ii) by either party if the merger shall not be consummated by October 31, 2009 or (iii) by either party if the other party shall have materially breached, or made a material and intentional misrepresentation in or in connection with the Agreement.

If shareholders of Japan Equity Fund approve the merger, DWS Investments has represented that it expects that substantially all of Japan Equity Fund’s portfolio holdings will be liquidated prior to the merger. Proceeds will be reinvested in securities which are consistent with International Value Fund’s current implementation of its investment objective, policies, restrictions and strategies. During this period of liquidation and the subsequent period prior to the merger, Japan Equity Fund may not operate in accordance with its stated investment objective, policies, restrictions and strategies. DWS Investments has estimated that transaction costs in connection with the repositioning of Japan Equity Fund’s portfolio will be approximately $51,000 (“Pre-Merger Transaction Costs”). Japan Equity Fund will bear the Pre-Merger Transaction Costs, subject to the cap described below.

Pursuant to the Agreement, Japan Equity Fund will bear all the expenses of the merger, including the Pre-Merger Transaction Costs, subject to the cap agreed to by DIMA. DIMA has agreed to bear all the expenses of the merger, including the Pre-Merger Transaction Costs, to the extent that the expenses of the merger exceed the estimated total one-year economic benefit expected to be realized by Japan Equity Fund through the merger (calculated immediately prior to the merger). The estimated one-year benefit to Japan Equity Fund shareholders is calculated by analyzing the difference between the estimated one-year total expenses of Japan Equity Fund and the estimated one-year total expenses of the combined fund, in each case based on current expense ratios. The difference between these total expense figures represents the estimated cost savings to shareholders of Japan Equity Fund at the time of the merger for

one year as a result of the merger. As of February 28, 2009, the estimated one-year economic benefit to Japan Equity Fund was $295,000 and the total estimated expenses of the merger, including the Pre-Merger Transaction Costs, were $276,000. Therefore, based on estimates as of February 28, 2009, the cap agreed to by DIMA is not expected to be triggered and Japan Equity Fund is expected to bear the expenses of the merger. You should note that the above dollar amounts are only estimates and the actual merger costs borne by Japan Equity Fund may be higher or lower. The final estimates will be calculated immediately prior to the merger.

Notwithstanding any of the foregoing, expenses will in any event be paid by the party directly incurring such expenses if and to the extent that the payment by the other party of such expenses would result in the disqualification of such party as a “regulated investment company” within the meaning of Section 851 of the Internal Revenue Code of 1986, as amended (the “Code”).

Description of the Merger Shares. Merger Shares will be issued to Japan Equity Fund’s shareholders in accordance with the Agreement as described above. The Merger Shares are Class A, Class C and Class S shares of International Value Fund.

Japan Equity Fund shareholders receiving Merger Shares will not pay an initial sales charge on such shares. Each class of Merger Shares has the same characteristics as shares of the corresponding class of Japan Equity Fund. In other words, your Merger Shares will be treated as having been purchased on the date you purchased your Japan Equity Fund shares and for the price you originally paid. For more information on the characteristics of each class of Merger Shares, please see the applicable International Value Fund prospectus, a copy of which was mailed with this Prospectus/Proxy Statement.

Certain Federal Income Tax Consequences. The merger is intended to qualify for federal income tax purposes as a tax-free reorganization under section 368(a) of the Code. As a condition to each Fund’s obligation to consummate the reorganization, each Fund will receive a tax opinion from Ropes & Gray LLP, tax counsel, to the effect that, although not free from doubt, on the basis of the existing provisions of the Code, US Treasury regulations issued thereunder, current administrative rules, pronouncements and court decisions, for federal income tax purposes:

•

The acquisition by International Value Fund of all of the assets of Japan Equity Fund solely in exchange for Merger Shares and the assumption by International Value Fund of all of the liabilities of Japan Equity Fund, followed by the distribution by Japan Equity Fund to its shareholders of Merger Shares in complete liquidation of Japan Equity Fund, all pursuant to the Agreement, will constitute a reorganization within the meaning of Section 368(a) of the Code, and Japan Equity Fund and International Value Fund will each be a “party to a reorganization” within the meaning of Section 368(b) of the Code.

•

Under Sections 361 and 357(a) of the Code, no gain or loss will be recognized by Japan Equity Fund upon the transfer of its assets to International Value Fund in exchange for Merger Shares and the assumption of Japan Equity Fund’s liabilities by International Value Fund, or upon the distribution of the Merger Shares by Japan Equity Fund to its shareholders in liquidation.

•

Under Section 354 of the Code, shareholders of Japan Equity Fund will not recognize gain or loss upon the receipt of Merger Shares solely in exchange for Japan Equity Fund shares.

•

Under Section 358 of the Code, the aggregate tax basis of the Merger Shares received by each shareholder of Japan Equity Fund in connection with the reorganization will be the same as the aggregate tax basis of his or her Japan Equity Fund shares exchanged therefor.

•

Under Section 1223(1) of the Code, a Japan Equity Fund shareholder’s holding period for his or her Merger Shares will be determined by including the period for which he or she held the Japan Equity Fund shares exchanged therefor, provided that he or she held the Japan Equity Fund shares on the date of the reorganization as capital assets.

•

Under Section 1032 of the Code, no gain or loss will be recognized by International Value Fund upon the receipt of the assets of Japan Equity Fund in exchange for the Merger Shares and the assumption by International Value Fund of all the liabilities of Japan Equity Fund.

•

Under Section 362(b) of the Code, International Value Fund’s tax basis in the assets received from Japan Equity Fund will be the same as Japan Equity Fund’s tax basis in those assets immediately prior to the transfer.

•

Under Section 1223(2) of the Code, International Value Fund’s holding periods in the assets received from Japan Equity Fund will include the periods during which such assets were held by Japan Equity Fund.

•

International Value Fund will succeed to and take into account the items of Japan Equity Fund described in Section 381(c) of the Code, subject to the conditions and limitations specified in Section 381, 382, 383 and 384 of the Code and the regulations thereunder.

Ropes & Gray LLP will express no view with respect to the effect of the merger on any transferred asset as to which any unrealized gain or loss is required to be recognized under federal income tax principles (i) at the end of a taxable year or upon the termination thereof, or (ii) upon the transfer of such asset regardless of whether such a transfer would otherwise be a non-taxable transaction.

The opinion will be based on certain factual certifications made by the officers of International Value Fund and Japan Equity Fund and will also be based on customary assumptions. The opinion will note and distinguish certain published precedent, and it is possible that the Internal Revenue Service could disagree with Ropes & Gray LLP’s opinion.

Opinions of counsel are not binding upon the Internal Revenue Service or the courts. If the merger is consummated but does not qualify as a tax-free reorganization under the Code, a shareholder of Japan Equity Fund would recognize a taxable gain or loss equal to the difference between his or her tax basis in his or her Japan Equity Fund shares and the fair market value of the Merger Shares he or she received. Shareholders of Japan Equity Fund should consult their tax advisors regarding the effect, if any, of the merger in light of their individual circumstances.

Substantially all of the portfolio assets of Japan Equity Fund are expected to be sold in connection with the merger. The actual tax impact of such sales will depend on the holding periods of such assets and the difference between the price at which such portfolio assets are sold and Japan Equity Fund’s tax basis in such assets. Any net capital gains recognized in these sales, after the application of any available capital loss carryforwards, will be distributed to Japan Equity Fund’s shareholders as capital gain dividends (to the extent of net realized long-term capital gains over net realized short-term capital losses) and/or ordinary dividends (to the extent of net realized short-term capital gains over net realized long-term capital loss and after application of any available capital loss carryforwards) during or with respect to the year of sale and will be taxable to shareholders. Because the merger will end the tax year of Japan Equity Fund, it will accelerate distributions to shareholders from Japan Equity Fund for its short tax year ending on the date of the merger. Those tax year-end distributions will be taxable and will include any capital gains resulting from portfolio turnover prior to the merger. As of February 28, 2009, the capital losses in excess of capital gains of Japan Equity Fund for its final tax year is expected to be $65,000,000 (i.e., 148.39% of net asset value). Since net capital gain or loss will depend on the prices at which portfolio assets are sold prior to the merger, the size of the net capital gain or loss to Japan Equity Fund cannot be calculated precisely at this time. The estimates provided above were determined as of February 28, 2009 and are subject to change. Although Japan Equity Fund does not expect to distribute any capital gains to shareholders for its current year, the disposition of its portfolio assets will start the eight-year period to which the capital losses can be carried forward (subject to the limitations described below) for federal income tax purposes.

Prior to the Closing (as defined in the Agreement), Japan Equity Fund will declare a distribution to shareholders, which, together with all previous distributions, will have the effect of distributing to shareholders all of its investment company taxable income (computed without regard to the deduction for dividends paid), net tax-exempt income, if any, and net realized capital gains (after reduction by any capital loss carryforwards), if any, through the Closing. These distributions will be taxable to shareholders.

A Fund’s ability to carry forward capital losses and to use them to offset future gains may be limited as a result of the merger. First, a Fund’s “pre-merger losses” (including capital loss carryforwards, net current-year capital losses, and unrealized losses that exceed certain thresholds) may become unavailable to offset gains of the combined Fund. Second, one Fund’s pre-merger losses cannot be used to offset unrealized gains in another Fund that are “built in” at the time of the merger and that exceed certain thresholds (“non-de minimis built-in gains”) for five tax years. Third, Japan Equity Fund’s loss carryforwards, as limited under the previous two rules, are permitted to offset only that portion of the income of International Value Fund for the taxable year of the merger that is equal to the portion of International Value Fund’s taxable year that follows the date of the merger (prorated according to number of days). Therefore, in certain circumstances, shareholders of a Fund may pay taxes sooner, or pay more taxes, than they would have had the merger not occurred.

The combined Fund resulting from the merger will have tax attributes that reflect a blending of the tax attributes of the two funds at the time of the merger (including as affected by the rules set forth above). Therefore, the shareholders of Japan Equity Fund receive a proportionate share of any “built-in” (unrealized) gains in International Value Fund’s assets as well as any taxable gains realized by International Value Fund but not distributed to its shareholders prior to the merger, when such gains are eventually distributed by International Value Fund. As a result, shareholders of Japan Equity Fund

may receive a greater amount of taxable distributions than they would have had the merger not occurred. And any pre-merger losses of Japan Equity Fund (whether realized or unrealized) remaining after the operation of the limitation rules described above will become available to offset capital gains realized after the merger and thus may reduce subsequent capital gain distributions to a broader group of shareholders than would have been the case absent such a merger, such that the benefit of those losses to Japan Equity Fund shareholders may be further reduced relative to what the benefit would have been had the merger not occurred.

The impact of the rules described above will depend on the relative sizes of, and the losses and gains (both realized and unrealized) in, each Fund at the time of the merger and thus cannot be calculated precisely prior to the merger.

The realized and unrealized gains and losses of each Fund at the time of the merger will determine the extent to which the combining Funds’ respective losses, both realized and unrealized, will be available to reduce gains realized by the combined Fund shareholders following the merger, and consequently the extent to which the combined Fund may be required to distribute gains to its shareholders earlier than would have been the case absent the merger.

In addition, the combined Fund may have a higher portfolio turnover rate (i.e., the ratio of the lesser of annual sales or purchases to the monthly average value of the portfolio (excluding from both the numerator and the denominator securities with maturities at the time of acquisition of one year or less)) than is customary for Japan Equity Fund. The portfolio turnover rate was 197% for International Value Fund and 105% for Japan Equity Fund for the fiscal year ended August 31, 2008. A higher portfolio turnover rate involves greater brokerage and transaction expenses to a fund and may result in the realization of increased net capital gains, including increased net short-term capital gains, which would be taxable to shareholders when distributed (and in the case of net short-term capital gains, would be taxed as ordinary income).

Although, as noted above, shareholders are not expected to recognize any gain or loss upon the exchange of their shares in the merger, a potential increase in a Fund’s portfolio turnover rate and/or the potential limitations on capital losses available to offset future gains may, in certain circumstances, cause shareholders of a Fund to pay taxes sooner, or pay more taxes, than they would have had the merger not occurred.

This description of the federal income tax consequences of the merger is made without regard to the particular facts and circumstances of any shareholder. Shareholders are urged to consult their own tax advisors as to the specific consequences to them of the merger, including, without limitation, the applicability and effect of federal, state, local, non-US and other tax laws.

Capitalization. The following table sets forth the capitalization of each Fund as of February 28, 2009, and of International Value Fund on a pro forma combined basis, giving effect to the proposed acquisition of assets at net asset value as of that date.⁽¹⁾


	Acquiring DWS International Value Opportunities Fund		Acquired DWS Japan Equity Fund		Pro Forma Adjustments⁽²⁾		Pro Forma Combined
Net Assets
Class A	$	4,808,135	$	14,562,398	2,704,526		$	22,075,059
Class B		—	$	2,823,198	(2,823,198	)	$	0
Class C	$	1,444,885	$	10,351,914	(70,661	)	$	11,726,138
Class S	$	1,467,073	$	12,696,791	(86,667	)	$	14,077,197
Institutional Class	$	3,201,077		—	—		$	3,201,077
Total Net assets	$	10,921,170	$	40,434,301	(276,000	)	$	51,079,471
Shares outstanding
Class A		809,072		2,445,850	461,040			3,715,962
Class B		—		485,787	(485,787	)		—
Class C		242,518		1,779,164	(54,122	)		1,967,560
Class S		246,954		2,117,791	5,126			2,369,871
Institutional Class		539,096		—	—			539,096
Net Asset Value per share
Class A	$	5.94	$	5.95	—		$	5.94
Class B	$	—	$	5.81	—		$	—
Class C	$	5.96	$	5.82	—		$	5.96
Class S	$	5.94	$	6.00	—		$	5.94
Institutional Class	$	5.94	$	—	—		$	5.94

⁽¹⁾

Assumes the merger had been consummated on February 28, 2009 and is for information purposes only. No assurance can be given as to how many shares of International Value Fund will be received by the shareholders of Japan Equity Fund on the date the merger takes place, and the foregoing should not be relied upon to reflect the number of shares of International Value Fund that actually will be received on or after such date.

⁽²⁾

Pro Forma adjustments include estimated one-time merger costs of $276,000 expected to be borne by Japan Equity Fund. Pursuant to the Agreement, Japan Equity Fund will bear all the expenses of the merger, including the Pre-Merger Transaction Costs, subject to the cap agreed to by DIMA. DIMA has agreed to bear all the expenses of the merger, including the Pre-Merger Transaction Costs, to the extent that the expenses of the merger exceed the estimated total one-year economic benefit expected to be realized by Japan Equity Fund through the merger (please see page [ ] for a description of how such estimated benefit is calculated). As of February 28, 2009, the estimated one-year economic benefit to Japan Equity Fund was $295,000 and the total estimated expenses of the merger, including the Pre-Merger Transaction Costs, were $276,000. Therefore, based on estimates as of February 28, 2009, the cap agreed to by DIMA is not expected to be triggered and Japan Equity Fund is expected to bear the expenses of the merger. You should note that the above dollar amounts are only estimates and the actual merger costs borne by Japan Equity Fund may be higher or lower.

The Directors of Japan Equity Fund, a majority of whom are independent Directors, unanimously recommend approval of the merger.

V. INFORMATION ABOUT VOTING AT THE SHAREHOLDER MEETING

General. This Prospectus/Proxy Statement is furnished in connection with the proposed merger of Japan Equity Fund into International Value Fund and the solicitation of proxies by and on behalf of the Directors of Japan Equity Fund for use at the special meeting of Japan Equity Fund Shareholders (the “Meeting”). The Meeting is to be held on June 19, 2009 at 4:00 pm, Eastern time at the offices of DIMA, 345 Park Avenue, 27th Floor, New York, New York 10154, or at such later time as is made necessary by adjournment or postponement. The Notice of the Special Meeting of Shareholders, the Prospectus/Proxy Statement and the enclosed form of proxy are being mailed to shareholders on or about , 2009.

As of April 14, 2009, Japan Equity Fund had the following shares outstanding:


Share Class		Number of Shares
Class A		2174860.711
Class B		471229.636
Class C		1668870.291
Class S		2015220.263

Only shareholders of record on April 14, 2009 will be entitled to notice of and to vote at the Meeting. Each share is entitled to one vote, with fractional shares voting proportionally.

The Directors of Japan Equity Fund know of no matters other than those set forth herein to be brought before the Meeting. If, however, any other matters properly come before the Meeting, it is the Directors’ intention that proxies will be voted on such matters in accordance with the judgment of the persons named in the enclosed form of proxy.

Required Vote. Proxies are being solicited from Japan Equity Fund’s shareholders by the Directors of Japan Equity Fund for the Meeting. Unless revoked, all valid proxies will be voted in accordance with the specification thereon or, in the absence of specification, FOR approval of the Agreement. The transactions contemplated by the Agreement will be consummated only if approved by the affirmative vote of a 1940 Act Majority.

Record Date, Quorum and Method of Tabulation. Shareholders of record of Japan Equity Fund at the close of business on April 14, 2009 (the “Record Date”) will be entitled to vote at the Meeting or any adjournment thereof. The holders of at least one-third of the shares of Japan Equity Fund issued and outstanding at the close of business on the Record Date present in person or represented by proxy will constitute a quorum for the Meeting.

Votes cast by proxy or in person at the Meeting will be counted by persons appointed by Japan Equity Fund as tellers for the Meeting. The tellers will count the total number of votes cast “FOR” approval of the proposal for purposes of determining whether sufficient affirmative votes have been cast. The tellers will count shares represented by proxies that reflect abstentions and “broker non-votes” (i.e., shares held by brokers or nominees as to which (i) instructions have not been received from the beneficial owners or the persons entitled to vote, and (ii) the broker or nominee does not have the discretionary voting power on a particular matter) as shares that are present and entitled to vote on the matter for purposes of determining the presence of a quorum. Abstentions and broker non-votes will therefore have the effect of a negative vote on the proposal.

Share Ownership. As of April 14, 2009, the officers and Directors of Japan Equity Fund as a group beneficially owned less than 1% of the outstanding shares of Japan Equity Fund and the officers and Directors of International Value Fund as a group beneficially owned less than 1% of the outstanding shares of International Value Fund. To the best of the knowledge of Japan Equity Fund, the following shareholders owned of record or beneficially 5% or more of the outstanding shares of any class of Japan Equity Fund as of such date:


Class	Shareholder Name and Address	Percentage Owned
A	MLPF&S for the sole benefit of its customers Attn: Fund Adm. (97UE8) Jacksonville, FL 32246-6484	23.02%

	Morgan Stanley & Co. Harborside Financial Center Plaza II 3rd Floor Jersey City, NJ 07311	8.97%

	Citigroup Global Markets Inc. Attn: Peter Booth 7th Floor New York, NY 10001-2402	6.42%

	Wells Fargo Investments LLC FBO customer accounts Attn: Mutual Fund Operations Minneapolis, MN 55402-2323	5.96%

B	MLPF&S for the sole benefit of its customers Attn: Fund Adm. (97UE9) Jacksonville, FL 32246-6484	27.15%

	Citigroup Global Markets Inc. Attn: Peter Booth 7th Floor New York, NY 10001-2402	12.34%

	Morgan Stanley & Co. Harborside Financial Center Plaza II 3rd Floor Jersey City, NJ 07311	8.37%


Class	Shareholder Name and Address	Percentage Owned
C	MLPF&S for the sole benefit of its customers Attn: Fund Adm. (9E116) Jacksonville, FL 32246-6484	24.42%

	Citigroup Global Markets Inc. Attn: Peter Booth 7th Floor New York, NY 10001-2402	18.75%

	Morgan Stanley & Co. Harborside Financial Center Plaza II 3rd Floor Jersey City, NJ 07311	11.01%

S	Charles Schwab & Co. Inc. Attn: Mutual Funds Department San Francisco, CA 94104-4151	12.83%

	State Street Bank & Trust Co. Cust. FBO DWS LifeCompass 2020 Fund Quincy, MA 02171-2105	8.16%

	William Eric Holzer Ho Ho Kus, NJ 07423-1321	8.14%

	State Street Bank & Trust Co. Cust. FBO DWS LifeCompass 2015 Fund Quincy, MA 02171-2105	6.67%

	Elizabeth S. Dick c/o E. Dick Smith Boston, MA 02114-4131	6.20%

To the best of the knowledge of International Value Fund, the following shareholders owned of record or beneficially 5% or more of the outstanding shares of any class of International Value Fund as of April 14, 2009:


Class	Shareholder Name and Address	Percentage Owned
A	Charles Schwab & Co. Inc. special custody account for the exclusive benefit of customers Attn: Mutual Funds San Francisco, CA 94104-4151	73.9%

	UBS Financial Services Inc. FBO Bradley Hill Family Limited Partnership Medina, WA 98039-0321	5.78%

C	MLPF&S for the sole benefit of its customers Attn: Fund Adm. (97JS4) Jacksonville, FL 32246-6484	31.90%


Class	Shareholder Name and Address	Percentage Owned
S	Merrill Lynch Pierce Fenner & Smith for the sole benefit of its customers Attn: Service Team Jacksonville, FL 32246-6484	18.20%

	LPL Financial FBO customer accounts Attn: Mutual Fund Operations San Diego, CA 92150-9046	9.12%

	DWS Trust Company Cust. for the IRA of Allen A. Cranmer White Salmon, WA 98672-1432	7.15%

Institutional	State Street Bank & Trust Co. Cust. FBO DWS LifeCompass 2020 Fund Quincy, MA 02171-2105	45.82%

	State Street Bank & Trust Co. Cust. FBO DWS LifeCompass 2015 Fund Quincy, MA 02171-2105	39.82%

	State Street Bank & Trust Co. Cust. FBO DWS LifeCompass 2030 Fund Quincy, MA 02171-2105	5.98%

Solicitation of Proxies. In addition to soliciting proxies by mail, certain officers and representatives of Japan Equity Fund, officers and employees of the Advisor and certain financial services firms and their representatives, who will receive no extra compensation for their services, may solicit proxies by telephone, telegram or personally.

All properly executed proxies received in time for the Meeting will be voted as specified in the proxy or, if no specification is made, in favor of the proposal.

Computershare Fund Services, Inc. (“Computershare”) has been engaged to assist in the solicitation of proxies, at an estimated cost of $23,560. As the Meeting date approaches, certain shareholders of Japan Equity Fund may receive a telephone call from a representative of Computershare if their votes have not yet been received. Authorization to permit Computershare to execute proxies may be obtained by telephonic or electronically transmitted instructions from shareholders of Japan Equity Fund. Proxies that are obtained telephonically or through the Internet will be recorded in accordance with the procedures described below. The Directors believe that these procedures are reasonably designed to ensure that both the identity of the shareholder casting the vote and the voting instructions of the shareholder are accurately determined.

In all cases where a telephonic proxy is solicited, the Computershare representative is required to ask for each shareholder’s full name and address, or the zip code, or both, and to confirm that the shareholder has received the proxy materials in the mail. If the shareholder is a corporation or other entity, the Computershare representative is required to ask for the person’s title and confirmation that the person is authorized to direct the voting of the shares. If the information solicited agrees with the information provided to Computershare, then the Computershare representative has the responsibility to explain the process, read the proposal on the proxy card, and ask for the shareholder’s instructions on the proposal. Although the Computershare representative is permitted to answer questions about the process, he or she is not permitted to recommend to the shareholder how to vote, other than to read any recommendation set forth in the Prospectus/Proxy Statement. Computershare will record the shareholder’s instructions on the card. Within 72 hours, the shareholder will be sent a letter or mailgram to confirm his or her vote and asking the shareholder to call Computershare immediately if his or her instructions are not correctly reflected in the confirmation.

Please see the instructions on your proxy card for telephone touch-tone voting and Internet voting. Shareholders will have an opportunity to review their voting instructions and make any necessary changes before submitting their voting instructions and terminating their telephone call or Internet link. Shareholders who vote via the Internet, in addition to confirming their voting instructions prior to submission, will also receive an e-mail confirming their instructions upon request.

If a shareholder wishes to participate in the Meeting, but does not wish to give a proxy by telephone or electronically, the shareholder may still submit the proxy card originally sent with the Prospectus/Proxy Statement or attend in person. Should shareholders require additional information regarding the proxy or replacement proxy card, they may contact Computershare toll-free at 1-866-953-5820. Any proxy given by a shareholder is revocable until voted at the Meeting.

Persons holding shares as nominees will, upon request, be reimbursed for their reasonable expenses in soliciting instructions from their principals. The cost of preparing, printing and mailing the enclosed proxy card and Prospectus/Proxy Statement, and all other costs incurred in connection with the solicitation of proxies for Japan Equity Fund, including any additional solicitation made by letter, telephone or telegraph, will be paid by Japan Equity Fund (subject to the cap described above).

Revocation of Proxies. Proxies, including proxies given by telephone or over the Internet, may be revoked at any time before they are voted either (i) by a written revocation received by the Secretary of the Fund at One Beacon Street, Boston, MA 02108, (ii) by properly submitting a later-dated proxy that is received by the Fund at or prior to the Meeting or (iii) by attending the Meeting and voting in person. Merely attending the Meeting without voting, however, will not revoke a previously submitted proxy.

Adjournment and Postponement. Whether or not a quorum is present, the Meeting may, by action of the chairman of the Meeting, be adjourned from time to time without notice with respect to the proposal to be considered at the Meeting to a designated time, not more than 120 days after the Record Date. In addition, upon

motion of the chairman of the Meeting, the question of adjournment also may be submitted to a vote of the shareholders and, in such a case, the adjournment must be approved by the vote of the holders of a majority of the shares present and entitled to vote with respect to the proposal without further notice. Unless a proxy is otherwise limited in this regard, any shares present and entitled to vote at the Meeting that are represented by broker non-votes, may, at the discretion of the proxies, be voted in favor of such adjournment. The Board of Directors may postpone the Meeting of shareholders prior to the Meeting with notice to the shareholders entitled to vote at or to receive notice of the Meeting.

EXHIBIT A

FORM OF AGREEMENT AND PLAN OF REORGANIZATION

THIS AGREEMENT AND PLAN OF REORGANIZATION (the “Agreement”) is made as of this 11th day of March, 2009, by and among DWS International Fund, Inc. (the “Acquiring Corporation”), a Maryland corporation, on behalf of DWS International Value Opportunities Fund (the “Acquiring Fund”), a separate series of the Acquiring Corporation, and DWS Investors Funds, Inc. (the “Acquired Corporation,” and, together with the Acquiring Corporation, each a “Corporation” and collectively the “Corporations”), a Maryland corporation, on behalf of DWS Japan Equity Fund (the “Acquired Fund,” and, together with the Acquiring Fund, each a “Fund” and collectively the “Funds”), a separate series of the Acquired Corporation, and Deutsche Investment Management Americas Inc. (“DIMA”), investment adviser for the Funds (for purposes of section 10.2 of the Agreement only). The principal place of business of the Acquiring Corporation is 345 Park Avenue, New York, NY 10154. The principal place of business of the Acquired Corporation is 345 Park Avenue, New York, NY 10154.

This Agreement is intended to be and is adopted as a plan of reorganization within the meaning of Section 368 of the Internal Revenue Code of 1986, as amended (the “Code”). The reorganization (the “Reorganization”) will consist of the transfer of all of the assets of the Acquired Fund to the Acquiring Fund in exchange solely for Class A, Class C and Class S voting shares (par value $0.01 per share) of the Acquiring Fund (the “Acquiring Fund Shares”), the assumption by the Acquiring Fund of all of the liabilities of the Acquired Fund and the distribution of the Acquiring Fund Shares to the Class A, Class B, Class C and Class S shareholders of the Acquired Fund in complete liquidation and termination of the Acquired Fund as provided herein, all upon the terms and conditions hereinafter set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and of the covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows:

1. Transfer of Assets of the Acquired Fund to the Acquiring Fund in Consideration For Acquiring Fund Shares, the Assumption of All Acquired Fund Liabilities and the Liquidation of the Acquired Fund

1.1 Subject to the terms and conditions herein set forth and on the basis of the representations and warranties contained herein, the Acquired Fund agrees to transfer to the Acquiring Fund all of the Acquired Fund’s assets as set forth in section 1.2, and the Acquiring Fund agrees in consideration therefor (i) to deliver to the Acquired Fund that number of full and fractional Class A, Class C and Class S Acquiring Fund Shares determined by dividing the value of the Acquired Fund’s assets net of any liabilities of the Acquired Fund with respect to the Class A, Class B, Class C and Class S shares of the Acquired Fund, computed in the manner and as of the time and date set forth in section 2.1, by the net asset value of one Acquiring Fund Share of the corresponding class in the case of Class A, Class C and Class S shares of the Acquired Fund and by the net asset value of one Class A Acquiring Fund Share in the case of Class B shares of the Acquired Fund, computed in the manner and as of the time and date set forth in section 2.2; and (ii) to assume all of the liabilities of the Acquired Fund, including, but not limited to, any deferred

A-1

compensation to the Acquired Corporation’s directors. Class A Acquiring Fund Shares issued in respect of the assets net of any liabilities with respect to the Class A and Class B shares of the Acquired Fund are referred to herein as “Class A-Class A Acquiring Fund Shares” and “Class B-Class A Acquiring Fund Shares”, respectively. All Acquiring Fund Shares delivered to the Acquired Fund shall be delivered at net asset value without a sales load, commission or other similar fee being imposed. Such transactions shall take place at the closing provided for in section 3.1 (the “Closing”).

1.2 The assets of the Acquired Fund to be acquired by the Acquiring Fund (the “Assets”) shall consist of all assets, including, without limitation, all cash, cash equivalents, securities, commodities and futures contracts and dividends or interest or other receivables that are owned by the Acquired Fund and any deferred or prepaid expenses shown on the unaudited statement of assets and liabilities of the Acquired Fund prepared as of the effective time of the Closing in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applied consistently with those of the Acquired Fund’s most recent audited statement of assets and liabilities. The Assets shall constitute at least 90% of the fair market value of the net assets, and at least 70% of the fair market value of the gross assets, held by the Acquired Fund immediately before the Closing (excluding for these purposes assets used to pay the dividends and other distributions paid pursuant to section 1.4).

1.3 The Acquired Fund will endeavor, to the extent practicable, to discharge all of its liabilities and obligations that are accrued prior to the Closing Date as defined in section 3.1.

1.4 On or as soon as practicable prior to the Closing Date, the Acquired Fund will declare and pay to its shareholders of record one or more dividends and/or other distributions so that it will have distributed substantially all of its investment company taxable income (as defined in Code Section 852, computed without regard to any deduction for dividends paid), and realized net capital gain (as defined in Code Section 1222), if any, for the current taxable year through the Closing Date.

1.5 Immediately after the transfer of Assets provided for in section 1.1, the Acquired Fund will distribute to the Acquired Fund’s shareholders of record with respect to each class of its shares (the “Acquired Fund Shareholders”), determined as of the Valuation Time (as defined in section 2.1), on a pro rata basis, within that class, the Acquiring Fund Shares of the same class received by the Acquired Fund pursuant to section 1.1 in the case of Class C and Class S Acquired Fund Shareholders, Class A-Class A Acquiring Fund Shares received by the Acquired Fund pursuant to section 1.1 in the case of Class A Acquired Fund Shareholders, and Class B-Class A Acquiring Fund Shares received by the Acquired Fund pursuant to section 1.1 in the case of Class B Acquired Fund Shareholders, and will completely liquidate. Such distribution and liquidation will be accomplished with respect to each class of the Acquired Fund by the transfer of the Acquiring Fund Shares then credited to the account of the Acquired Fund on the books of the Acquiring Fund to open accounts on the share records of the Acquiring Fund in the names of the Acquired Fund Shareholders. The Acquiring Fund shall have no obligation to inquire as to the validity, propriety or correctness of such records, but shall assume that such transaction is valid, proper and correct. The aggregate net asset value of Class C and Class S Acquiring Fund Shares to be so credited to the

A-2

Class C and Class S Acquired Fund Shareholders, as applicable, shall be equal to the aggregate net asset value of the Acquired Fund shares of the same class owned by such shareholders as of the Valuation Time. The aggregate net asset value of Class A-Class A Acquiring Fund Shares to be so credited to Class A shall be equal to the aggregate net asset value of Class A Acquired Fund shares owned by such shareholders as of the Valuation Time. The aggregate net asset value of Class B-Class A Acquiring Fund Shares to be so credited to Class B Acquired Fund Shareholders shall be equal to the aggregate net asset value of Class B Acquired Fund shares owned by such shareholders as of the Valuation Time. All issued and outstanding shares of the Acquired Fund will simultaneously be cancelled on the books of the Acquired Fund, although share certificates representing interests in Class A, Class B, Class C and Class S shares of the Acquired Fund, if any, will represent a number of Acquiring Fund Shares after the Closing Date as determined in accordance with section 2.3. The Acquiring Fund will not issue certificates representing Acquiring Fund Shares.

1.6 Ownership of Acquiring Fund Shares will be shown on the books of the Acquiring Fund. Shares of the Acquiring Fund will be issued in the manner described in the Acquiring Fund’s then-current prospectuses and statements of additional information for Class A, Class C and Class S shares.

1.7 Any reporting responsibility of the Acquired Fund including, without limitation, the responsibility for filing of regulatory reports, tax returns, or other documents with the Securities and Exchange Commission (the “Commission”), any state securities commission, and any federal, state or local tax authorities or any other relevant regulatory authority, is and shall remain the responsibility of the Acquired Fund.

1.8 All books and records of the Acquired Fund, including all books and records required to be maintained under the Investment Company Act of 1940, as amended (the “1940 Act”), and the rules and regulations thereunder, shall be available to the Acquiring Fund from and after the Closing Date and shall be turned over to the Acquiring Fund as soon as practicable following the Closing Date.

2. Valuation

2.1 The value of the Assets and the liabilities of the Acquired Fund shall be computed as of the close of regular trading on The New York Stock Exchange, Inc. (the “NYSE”) on the business day immediately preceding the Closing Date (the “Valuation Time”) after the declaration and payment of any dividends and/or other distributions on that date, using the valuation procedures set forth in the Acquiring Corporation’s Articles of Amendment and Restatement, as amended, and the Acquiring Fund’s then-current prospectuses or statements of additional information for Class A, Class C and Class S shares, copies of which have been delivered to the Acquired Fund.

2.2 The net asset value of a Class A, Class C and Class S Acquiring Fund Share shall be the net asset value per share computed with respect to that class as of the Valuation Time using the valuation procedures referred to in section 2.1.

2.3 The number of Class C and Class S Acquiring Fund Shares to be issued (including fractional shares, if any) in consideration for the Assets shall be determined by dividing the value of the Assets net of liabilities with respect to Class C and Class S shares of the Acquired Fund, as the case may be, determined in

A-3

accordance with section 2.1 by the net asset value of an Acquiring Fund Share of the same class determined in accordance with section 2.2. The number of Class A-Class A Acquiring Fund Shares to be issued (including fractional shares, if any) in consideration for the Assets shall be determined by dividing the value of the Assets net of liabilities with respect to Class A shares of the Acquired Fund, determined in accordance with section 2.1 by the net asset value of a Class A-Class A Acquiring Fund Share, determined in accordance with section 2.2. The number of Class B-Class A Acquiring Fund Shares to be issued (including fractional shares, if any) in consideration for the Assets shall be determined by dividing the value of the Assets net of liabilities with respect to Class B shares of the Acquired Fund, determined in accordance with section 2.1 by the net asset value of a Class B-Class A Acquiring Fund Shares, determined in accordance with section 2.2.

2.4 All computations of value hereunder shall be made by or under the direction of each Fund’s respective accounting agent, if applicable, in accordance with its regular practice and the requirements of the 1940 Act and shall be subject to confirmation by each Fund’s respective Independent Registered Public Accounting Firm upon the reasonable request of the other Fund.

3. Closing and Closing Date

3.1 The Closing of the transactions contemplated by this Agreement shall be July 20, 2009, or such later date as the parties may agree in writing (the “Closing Date”). All acts taking place at the Closing shall be deemed to take place simultaneously as of 9:00 a.m., Eastern time, on the Closing Date, unless otherwise agreed to by the parties. The Closing shall be held at the offices of counsel to the Acquiring Fund, or at such other place and time as the parties may agree.

3.2 The Acquired Fund shall deliver to the Acquiring Fund on the Closing Date a schedule of Assets.

3.3 Brown Brothers Harriman & Co. (“BBH”), custodian for the Acquired Fund, shall deliver at the Closing a certificate of an authorized officer stating that (a) the Assets shall have been delivered in proper form to BBH, also the custodian for the Acquiring Fund, prior to or on the Closing Date and (b) all necessary taxes in connection with the delivery of the Assets, including all applicable federal and state stock transfer stamps, if any, have been paid or provision for payment has been made. The Acquired Fund’s portfolio securities represented by a certificate or other written instrument shall be presented by the custodian for the Acquired Fund to the custodian for the Acquiring Fund for examination no later than five business days preceding the Closing Date and transferred and delivered by the Acquired Fund as of the Closing Date by the Acquired Fund for the account of Acquiring Fund duly endorsed in proper form for transfer in such condition as to constitute good delivery thereof. The Acquired Fund’s portfolio securities and instruments deposited with a securities depository, as defined in Rule 17f-4 under the 1940 Act, shall be delivered as of the Closing Date by book entry in accordance with the customary practices of such depositories and the custodian for the Acquiring Fund. The cash to be transferred by the Acquired Fund shall be delivered by wire transfer of federal funds on the Closing Date.

3.4 DWS Investments Service Company (“DWS-ISC”), as transfer agent for the Acquired Corporation, on behalf of the Acquired Fund, shall deliver at the Closing

A-4

a certificate of an authorized officer stating that its records contain the names and addresses of the Acquired Fund Shareholders and the number and percentage ownership (to three decimal places) of outstanding Class A, Class B, Class C and Class S Acquired Fund shares owned by each such shareholder immediately prior to the Closing. The Acquiring Fund shall issue and deliver a confirmation evidencing the Acquiring Fund Shares to be credited on the Closing Date to the Acquired Fund or provide evidence satisfactory to the Acquired Fund that such Acquiring Fund Shares have been credited to the Acquired Fund’s account on the books of the Acquiring Fund. At the Closing, each party shall deliver to the other such bills of sale, checks, assignments, share certificates, if any, receipts or other documents as such other party or its counsel may reasonably request to effect the transactions contemplated by this Agreement.

3.5 In the event that immediately prior to the Valuation Time (a) the NYSE or another primary trading market for portfolio securities of the Acquiring Fund or the Acquired Fund shall be closed to trading or trading thereupon shall be restricted, or (b) trading or the reporting of trading on the NYSE or elsewhere shall be disrupted so that, in the judgment of the Board of Directors of the Acquiring Corporation or Board of Directors of the Acquired Corporation, as applicable (each a “Board”), accurate appraisal of the value of the net assets with respect to the Class A, Class C and Class S shares of the Acquiring Fund or the Class A, Class B, Class C and Class S shares of the Acquired Fund is impracticable, the Closing Date shall be postponed until the first business day after the day when trading shall have been fully resumed and reporting shall have been restored.

3.6 The liabilities of the Acquired Fund shall include all of the Acquired Fund’s liabilities, debts, obligations, and duties of whatever kind or nature, whether absolute, accrued, contingent, or otherwise, whether or not arising in the ordinary course of business, whether or not determinable at the Closing Date, and whether or not specifically referred to in this Agreement including but not limited to any deferred compensation to the Acquired Fund’s directors.

4. Representations and Warranties

4.1 The Acquired Corporation, on behalf of the Acquired Fund, represents and warrants to the Acquiring Fund as follows:

(a) The Acquired Corporation is a Maryland corporation duly organized and validly existing under the laws of The State of Maryland with power under the Acquired Corporation’s Articles of Amendment and Restatement, as amended or supplemented, to own all of its properties and assets and to carry on its business as it is now being conducted and, subject to approval of shareholders of the Acquired Fund, to carry out the Agreement. The Acquired Fund is a separate series of the Acquired Corporation duly designated in accordance with the applicable provisions of the Acquired Corporation’s Articles of Amendment and Restatement, as amended or supplemented. The Acquired Corporation and Acquired Fund are qualified to do business in all jurisdictions in which they are required to be so qualified, except jurisdictions in which the failure to so qualify would not have a material adverse effect on the Acquired Corporation or Acquired Fund. The Acquired Fund has all material federal, state and local authorizations necessary to own all of the properties and assets and to carry on its business as now being conducted, except authorizations which the failure to so obtain would not have a material adverse effect on the Acquired Fund;

A-5

(b) The Acquired Corporation is registered with the Commission as an open-end management investment company under the 1940 Act, and such registration is in full force and effect and the Acquired Fund is in compliance in all material respects with the 1940 Act and the rules and regulations thereunder;

(c) No consent, approval, authorization, or order of any court or governmental authority is required for the consummation by the Acquired Fund of the transactions contemplated herein, except such as have been obtained under the Securities Act of 1933, as amended (the “1933 Act”), the Securities Exchange Act of 1934, as amended (the “1934 Act”), and the 1940 Act and such as may be required by state securities laws;

(d) The Acquired Corporation is not, and the execution, delivery and performance of this Agreement by the Acquired Corporation, on behalf of the Acquired Fund, will not result (i) in violation of Maryland law or of the Acquired Corporation’s Articles of Amendment and Restatement, as amended or supplemented, or By-Laws, (ii) in a violation or breach of, or constitute a default under, any material agreement, indenture, instrument, contract, lease or other undertaking to which the Acquired Fund is a party or by which it is bound, and the execution, delivery and performance of this Agreement by the Acquired Fund will not result in the acceleration of any obligation, or the imposition of any penalty, under any agreement, indenture, instrument, contract, lease, judgment or decree to which the Acquired Fund is a party or by which it is bound, or (iii) in the creation or imposition of any lien, charge or encumbrance on any property or assets of the Acquired Fund;

(e) No material litigation or administrative proceeding or investigation of or before any court or governmental body is presently pending or to the Acquired Fund’s knowledge threatened against the Acquired Fund or any properties or assets held by it. The Acquired Fund knows of no facts which might form the basis for the institution of such proceedings which would materially and adversely affect its business and is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body which materially and adversely affects its business or its ability to consummate the transactions herein contemplated;

(f) The Statements of Assets and Liabilities, Operations, and Changes in Net Assets, the Financial Highlights, and the Investment Portfolio of the Acquired Fund at and for the fiscal year ended August 31, 2008, have been audited by PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm, and are in accordance with GAAP consistently applied, and such statements (a copy of each of which has been furnished to the Acquiring Fund) present fairly, in all material respects, the financial position of the Acquired Fund as of such date in accordance with GAAP and there are no known contingent liabilities of the Acquired Fund required to be reflected on a statement of assets and liabilities (including the notes thereto) in accordance with GAAP as of such date not disclosed therein;

(g) Since August 31, 2008, there has not been any material adverse change in the Acquired Fund’s financial condition, assets, liabilities or business other than changes occurring in the ordinary course of business, or any incurrence by the Acquired Fund of indebtedness maturing more than one year from the date such indebtedness was incurred except as otherwise disclosed to and accepted in writing by the Acquiring Fund. For purposes of this subsection (g), a decline in

A-6

net asset value per share of the Acquired Fund due to declines in market values of securities in the Acquired Fund’s portfolio, the discharge of Acquired Fund liabilities, or the redemption of Acquired Fund shares by Acquired Fund Shareholders shall not constitute a material adverse change;

(h) At the date hereof and at the Closing Date, all federal and other tax returns and reports of the Acquired Fund required by law to have been filed by such dates (including any extensions) shall have been filed and are or will be correct in all material respects, and all federal and other taxes (shown as due or required to be shown as due on said returns and reports) shall have been paid or provision shall have been made for the payment thereof, and, to the best of the Acquired Fund’s knowledge, no such return is currently under audit and no assessment has been asserted with respect to such returns;

(i) For each taxable year of its operation (including the taxable year ending on the Closing Date), the Acquired Fund has met the requirements of Subchapter M of the Code for qualification as a regulated investment company and has elected to be treated as such, has been eligible to and has computed its federal income tax under Section 852 of the Code, and will have distributed all of its investment company taxable income (as defined in Code Section 852, computed without regard to any deduction for dividends paid by the Acquired Fund) and realized net capital gain (as defined in Code Section 1222) that has accrued through the Closing Date;

(j) All issued and outstanding shares of the Acquired Fund (i) have been offered and sold in every state and the District of Columbia in compliance in all material respects with applicable registration requirements of the 1933 Act and state securities laws, (ii) are, and on the Closing Date will be, duly and validly issued and outstanding, fully paid and non-assessable and not subject to preemptive or dissenter’s rights, and (iii) will be held at the time of the Closing by the persons and in the amounts set forth in the records of DWS ISC, as provided in section 3.4. The Acquired Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any of the Acquired Fund shares, nor is there outstanding any security convertible into any Acquired Fund shares;

(k) At the Closing Date, the Acquired Fund will have good and marketable title to the Acquired Fund’s assets to be transferred to the Acquiring Fund pursuant to section 1.1 and full right, power, and authority to sell, assign, transfer and deliver such assets hereunder free of any liens or other encumbrances, except those liens or encumbrances as to which the Acquiring Fund has received notice at or prior to the Closing, and upon delivery and payment for such assets, the Acquiring Fund will acquire good and marketable title thereto, subject to no restrictions on the full transfer thereof, including such restrictions as might arise under the 1933 Act and the 1940 Act, except those restrictions as to which the Acquiring Fund has received notice and necessary documentation at or prior to the Closing;

(l) The execution, delivery and performance of this Agreement will have been duly authorized prior to the Closing Date by all necessary action on the part of the directors of the Acquired Corporation (including the determinations required by Rule 17a-8(a) under the 1940 Act), and, subject to the approval of the Acquired Fund Shareholders, this Agreement constitutes a valid and binding obligation of the Acquired Corporation, on behalf of the Acquired Fund,

A-7

enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws relating to or affecting creditors’ rights and to general equity principles;

(m) The information to be furnished by the Acquired Fund for use in applications for orders, registration statements or proxy materials or for use in any other document filed or to be filed with any federal, state or local regulatory authority (including the Financial Industry Regulatory Authority (“FINRA”)), which may be necessary in connection with the transactions contemplated hereby, shall be accurate and complete in all material respects and shall comply in all material respects with federal securities and other laws and regulations applicable thereto;

(n) The current prospectuses and statements of additional information of the Acquired Fund conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the Commission thereunder and do not include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not materially misleading; and

(o) The Registration Statement referred to in section 5.7, insofar as it relates to the Acquired Fund, will, on the effective date of the Registration Statement and on the Closing Date, (i) comply in all material respects with the provisions and regulations of the 1933 Act, the 1934 Act and the 1940 Act, as applicable, and (ii) not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which such statements are made, not materially misleading; provided, however, that the representations and warranties in this section shall not apply to statements in or omissions from the Registration Statement made in reliance upon and in conformity with information that was furnished or should have been furnished by the Acquiring Fund for use therein.

4.2 The Acquiring Corporation, on behalf of the Acquiring Fund, represents and warrants to the Acquired Fund as follows:

(a) The Acquiring Corporation is a Maryland corporation duly organized and validly existing under the laws of The State of Maryland with power under the Acquiring Corporation’s Articles of Amendment and Restatement, as amended or supplemented, to own all of its properties and assets and to carry on its business as it is now being conducted and to carry out the Agreement. The Acquiring Fund is a separate series of the Acquiring Corporation duly designated in accordance with the applicable provisions of the Acquiring Corporation’s Articles of Amendment and Restatement, as amended or supplemented. The Acquiring Corporation and Acquiring Fund are qualified to do business in all jurisdictions in which they are required to be so qualified, except jurisdictions in which the failure to so qualify would not have a material adverse effect on the Acquiring Corporation or Acquiring Fund. The Acquiring Fund has all material federal, state and local authorizations necessary to own all of the properties and assets and to carry on its business as now being conducted, except authorizations which the failure to so obtain would not have a material adverse effect on the Acquiring Fund;

A-8

(b) The Acquiring Corporation is registered with the Commission as an open-end management investment company under the 1940 Act, and such registration is in full force and effect and the Acquiring Fund is in compliance in all material respects with the 1940 Act and the rules and regulations thereunder;

(c) No consent, approval, authorization, or order of any court or governmental authority is required for the consummation by the Acquiring Fund of the transactions contemplated herein, except such as have been obtained under the 1933 Act, the 1934 Act and the 1940 Act and such as may be required by state securities laws;

(d) The Acquiring Corporation is not, and the execution, delivery and performance of this Agreement by the Acquiring Corporation will not result (i) in violation of Maryland law or of the Acquiring Corporation’s Articles of Amendment and Restatement, as amended or supplemented, or By-Laws, (ii) in a violation or breach of, or constitute a default under, any material agreement, indenture, instrument, contract, lease or other undertaking to which the Acquiring Fund is a party or by which it is bound, and the execution, delivery and performance of this Agreement by the Acquiring Fund will not result in the acceleration of any obligation, or the imposition of any penalty, under any agreement, indenture, instrument, contract, lease, judgment or decree to which the Acquiring Fund is a party or by which it is bound, or (iii) in the creation or imposition of any lien, charge or encumbrance on any property or assets of the Acquiring Fund;

(e) No material litigation or administrative proceeding or investigation of or before any court or governmental body is presently pending or to its knowledge threatened against the Acquiring Fund or any properties or assets held by it. The Acquiring Fund knows of no facts which might form the basis for the institution of such proceedings which would materially and adversely affect its business and is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body which materially and adversely affects its business or its ability to consummate the transactions herein contemplated;

(f) The Statements of Assets and Liabilities, Operations, and Changes in Net Assets, the Financial Highlights, and the Investment Portfolio of the Acquiring Fund at and for the fiscal year ended August 31, 2008, have been audited by PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm, and are in accordance with GAAP consistently applied, and such statements (a copy of each of which has been furnished to the Acquired Fund) present fairly, in all material respects, the financial position of the Acquiring Fund as of such date in accordance with GAAP, and there are no known contingent liabilities of the Acquiring Fund required to be reflected on a statement of assets and liabilities (including the notes thereto) in accordance with GAAP as of such date not disclosed therein;

(g) Since August 31, 2008, there has not been any material adverse change in the Acquiring Fund’s financial condition, assets, liabilities or business other than changes occurring in the ordinary course of business, or any incurrence by the Acquiring Fund of indebtedness maturing more than one year from the date such indebtedness was incurred except as otherwise disclosed to and accepted in writing by the Acquired Fund. For purposes of this subsection (g), a decline in net asset value per share of the Acquiring Fund due to declines in market values of

A-9

securities in the Acquiring Fund’s portfolio, the discharge of Acquiring Fund liabilities, or the redemption of Acquiring Fund shares by Acquiring Fund shareholders shall not constitute a material adverse change;

(h) At the date hereof and at the Closing Date, all federal and other tax returns and reports of the Acquiring Fund required by law to have been filed by such dates (including any extensions) shall have been filed and are or will be correct in all material respects, and all federal and other taxes (shown as due or required to be shown as due on said returns and reports) shall have been paid or provision shall have been made for the payment thereof, and, to the best of the Acquiring Fund’s knowledge, no such return is currently under audit and no assessment has been asserted with respect to such returns;

(i) For each taxable year of its operation, the Acquiring Fund has met the requirements of Subchapter M of the Code for qualification as a regulated investment company and has elected to be treated as such, has been eligible to and has computed its federal income tax under Section 852 of the Code, and will do so for the taxable year including the Closing Date;

(j) All issued and outstanding shares of the Acquiring Fund (i) have been offered and sold in every state and the District of Columbia in compliance in all material respects with applicable registration requirements of the 1933 Act and state securities laws and (ii) are, and on the Closing Date will be, duly and validly issued and outstanding, fully paid and non-assessable, and not subject to preemptive or dissenter’s rights. The Acquiring Fund does not have outstanding any options, warrants or other rights to subscribe for or purchase any of the Acquiring Fund Shares, nor is there outstanding any security convertible into any Acquiring Fund Shares;

(k) The Acquiring Fund Shares to be issued and delivered to the Acquired Fund, for the account of the Acquired Fund Shareholders, pursuant to the terms of this Agreement, will at the Closing Date have been duly authorized and, when so issued and delivered, will be duly and validly issued and outstanding Acquiring Fund Shares, and will be fully paid and non-assessable;

(l) At the Closing Date, the Acquiring Fund will have good and marketable title to the Acquiring Fund’s assets, free of any liens or other encumbrances, except those liens or encumbrances as to which the Acquired Fund has received notice at or prior to the Closing;

(m) The execution, delivery and performance of this Agreement will have been duly authorized prior to the Closing Date by all necessary action on the part of the directors of the Acquiring Corporation (including the determinations required by Rule 17a-8(a) under the 1940 Act) and this Agreement will constitute a valid and binding obligation of the Acquiring Corporation, on behalf of the Acquiring Fund, enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws relating to or affecting creditors’ rights and to general equity principles;

(n) The information to be furnished by the Acquiring Fund for use in applications for orders, registration statements or proxy materials or for use in any other document filed or to be filed with any federal, state or local regulatory authority (including FINRA), which may be necessary in connection with the

A-10

transactions contemplated hereby, shall be accurate and complete in all material respects and shall comply in all material respects with federal securities and other laws and regulations applicable thereto;

(o) The current prospectuses and statements of additional information with respect to Class A, Class C and Class S of the Acquiring Fund conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations of the Commission thereunder and do not include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not materially misleading;

(p) The Registration Statement, only insofar as it relates to the Acquiring Fund, will, on the effective date of the Registration Statement and on the Closing Date, (i) comply in all material respects with the provisions and regulations of the 1933 Act, the 1934 Act, and the 1940 Act and (ii) not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which such statements were made, not materially misleading; provided, however, that the representations and warranties in this section shall not apply to statements in or omissions from the Registration Statement made in reliance upon and in conformity with information that was furnished or should have been furnished by the Acquired Fund for use therein; and

(q) The Acquiring Fund agrees to use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act, the 1940 Act and such of the state securities laws as may be necessary in order to continue its operations after the Closing Date.

5. Covenants of the Acquiring Fund and the Acquired Fund

5.1 The Acquiring Fund and the Acquired Fund each covenants to operate its business in the ordinary course between the date hereof and the Closing Date, it being understood that such ordinary course of business will include the declaration and payment of customary dividends and other distributions and such changes as are contemplated by the Funds’ normal operations. No party shall take any action that would, or reasonably would be expected to, result in any of its representations and warranties set forth in this Agreement being or becoming untrue in any material respect. The Acquired Corporation and Acquiring Corporation covenant and agree to coordinate the respective portfolios of the Acquired Fund and Acquiring Fund from the date of the Agreement up to and including the Closing Date in order that at Closing, when the Assets are added to the Acquiring Fund’s portfolio, the resulting portfolio will meet the Acquiring Fund’s investment objective, policies, strategies and restrictions, as set forth in the Acquiring Fund’s prospectuses for Class A, Class C and Class S shares, copies of which have been delivered to the Acquired Fund.

5.2 Upon reasonable notice, the Acquiring Corporation’s officers and agents shall have reasonable access to the Acquired Fund’s books and records necessary to maintain current knowledge of the Acquired Fund and to ensure that the representations and warranties made by the Acquired Fund are accurate.

5.3 The Acquired Fund covenants to call a meeting of the Acquired Fund Shareholders entitled to vote thereon to consider and act upon this Agreement and

A-11

to take all other reasonable action necessary to obtain approval of the transactions contemplated herein. Such meeting shall be scheduled for no later than August 12, 2009.

5.4 The Acquired Fund covenants that the Acquiring Fund Shares to be issued hereunder are not being acquired for the purpose of making any distribution thereof other than in accordance with the terms of this Agreement.

5.5 The Acquired Fund covenants that it will assist the Acquiring Fund in obtaining such information as the Acquiring Fund reasonably requests concerning the beneficial ownership of the Acquired Fund shares.

5.6 Subject to the provisions of this Agreement, the Acquiring Fund and the Acquired Fund will each take, or cause to be taken, all actions, and do or cause to be done, all things reasonably necessary, proper, and/or advisable to consummate and make effective the transactions contemplated by this Agreement.

5.7 Each Fund covenants to prepare in compliance with the 1933 Act, the 1934 Act and the 1940 Act the Registration Statement on Form N-14 (the “Registration Statement”) in connection with the meeting of the Acquired Fund Shareholders to consider approval of this Agreement and the transactions contemplated herein. The Acquiring Corporation will file the Registration Statement, including a proxy statement, with the Commission. The Acquired Fund will provide the Acquiring Fund with information reasonably necessary for the preparation of a prospectus, which will include a proxy statement, all to be included in the Registration Statement, in compliance in all material respects with the 1933 Act, the 1934 Act and the 1940 Act.

5.8 The Acquired Fund covenants that it will, from time to time, as and when reasonably requested by the Acquiring Fund, execute and deliver or cause to be executed and delivered all such assignments and other instruments, and will take or cause to be taken such further action as the Acquiring Fund may reasonably deem necessary or desirable in order to vest in and confirm the Acquiring Fund’s title to and possession of all the Assets and otherwise to carry out the intent and purpose of this Agreement.

5.9 The Acquiring Fund covenants to use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act and 1940 Act, and such of the state securities laws as it deems appropriate in order to continue its operations after the Closing Date and to consummate the transactions contemplated herein; provided, however, that the Acquiring Fund may take such actions it reasonably deems advisable after the Closing Date as circumstances change.

5.10 The Acquiring Fund covenants that it will, from time to time, as and when reasonably requested by the Acquired Fund, execute and deliver or cause to be executed and delivered all such assignments, assumption agreements, releases, and other instruments, and will take or cause to be taken such further action, as the Acquired Fund may reasonably deem necessary or desirable in order to (i) vest and confirm to the Acquired Fund title to and possession of all Acquiring Fund Shares to be transferred to the Acquired Fund pursuant to this Agreement and (ii) assume all of the liabilities of the Acquired Fund.

5.11 As soon as reasonably practicable after the Closing, the Acquired Fund shall make a liquidating distribution to its shareholders consisting of the Acquiring Fund Shares received at the Closing.

A-12

5.12 The Acquiring Fund and the Acquired Fund shall each use its reasonable best efforts to fulfill or obtain the fulfillment of the conditions precedent to effect the transactions contemplated by this Agreement as promptly as practicable.

5.13 The intention of the parties is that the transaction will qualify as a reorganization within the meaning of Section 368(a) of the Code. Neither the Corporations, the Acquiring Fund nor the Acquired Fund shall take any action, or cause any action to be taken (including, without limitation, the filing of any tax return) that is inconsistent with such treatment or results in the failure of the transaction to qualify as a reorganization within the meaning of Section 368(a) of the Code. At or prior to the Closing Date, the Corporations, the Acquiring Fund and the Acquired Fund will take such action, or cause such action to be taken, as is reasonably necessary to enable Ropes & Gray LLP to render the tax opinion contemplated herein in section 8.5.

5.14 At or immediately prior to the Closing, the Acquired Fund will declare and pay to its shareholders a dividend or dividends, which, together with all previous such dividends, shall have the effect of distributing to the Acquired Fund Shareholders (i) all of the excess of (x) the Acquired Fund’s investment income excludable from gross income under Section 103 of the Code over (y) the Acquired Fund’s deductions disallowed under Section 265 and 171 of the Code, (ii) all of the Acquired Fund’s investment company taxable income as defined in Code Section 852 (computed without regard to any deduction for dividends paid) and (iii) all of the Acquired Fund’s realized net capital gain (after reduction by any capital loss carryover), in each case for both the current taxable year (which will end on the Closing Date) and immediately preceding taxable year.

5.15 The Acquiring Fund agrees to identify in writing prior to the Closing Date any assets of the Acquired Fund that it does not wish to acquire because they are not consistent with the current investment objective, policies, restrictions or strategies of the Acquiring Fund, and the Acquired Fund agrees to dispose of such assets prior to the Closing Date. The Acquiring Fund agrees to identify in writing prior to the Closing Date any assets that it would like the Acquired Fund to purchase, consistent with the Acquiring Fund’s investment objective, policies, restrictions and strategies, and the Acquired Fund agrees to purchase such assets pursuant to the Acquiring Fund’s investment objective, policies, restrictions or strategies prior to the Closing Date.

6. Conditions Precedent to Obligations of the Acquired Fund

The obligations of the Acquired Fund to consummate the transactions provided for herein shall be subject, at its election, to the performance by the Acquiring Fund of all the obligations to be performed by it hereunder on or before the Closing Date, and, in addition thereto, the following further conditions:

6.1 All representations and warranties of the Acquiring Corporation, on behalf of the Acquiring Fund, contained in this Agreement shall be true and correct in all material respects as of the date hereof and, except as they may be affected by the transactions contemplated by this Agreement, as of the Closing Date, with the same force and effect as if made on and as of the Closing Date; and there shall be (i) no pending or threatened litigation brought by any person (other than the Acquired Fund, its adviser or any of their affiliates) against the Acquiring Fund or its investment adviser(s), Board members or officers arising out of this Agreement and

A-13

(ii) no facts known to the Acquiring Fund which the Acquiring Fund reasonably believes might result in such litigation.

6.2 The Acquiring Fund shall have delivered to the Acquired Fund on the Closing Date a certificate executed in its name by the Acquiring Corporation’s President, Treasurer or a Vice President, in a form reasonably satisfactory to the Acquired Corporation, on behalf of the Acquired Fund, and dated as of the Closing Date, to the effect that the representations and warranties of the Acquiring Corporation, on behalf of the Acquiring Fund made in this Agreement are true and correct on and as of the Closing Date, except as they may be affected by the transactions contemplated by this Agreement, and as to such other matters as the Acquired Fund shall reasonably request.

6.3 The Acquired Fund shall have received on the Closing Date an opinion of Ropes & Gray LLP, in a form reasonably satisfactory to the Acquired Fund, and dated as of the Closing Date, to the effect that:

(a) the Acquiring Corporation is a validly existing corporation;

(b) the Acquiring Fund has the power to carry on its business as presently conducted in accordance with the description thereof in the Acquiring Corporation’s registration statement under the 1940 Act;

(c) the Agreement has been duly authorized, executed and delivered by the Acquiring Corporation, on behalf of the Acquiring Fund, and constitutes a valid and legally binding obligation of the Acquiring Corporation, on behalf of the Acquiring Fund, enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and laws of general applicability relating to or affecting creditors’ rights and to general equity principles;

(d) the execution and delivery of the Agreement by the Acquiring Corporation, on behalf of the Acquiring Fund, did not, and the issuance of Acquiring Fund Shares pursuant to the Agreement will not, violate the Acquiring Corporation’s Articles of Amendment and Restatement, as amended or supplemented, or By-laws, as amended; and

(e) to the knowledge of such counsel, and without any independent investigation, (i) the Acquiring Fund is not subject to any litigation or other proceedings that might have a materially adverse effect on the operations of the Acquiring Fund, (ii) the Acquiring Corporation is registered as an investment company with the Commission and is not subject to any stop order, and (iii) all regulatory consents, authorizations, approvals or filings required to be obtained or made by the Acquiring Fund under the federal laws of the United States or the laws of The State of Maryland for the issuance of Acquiring Fund Shares pursuant to the Agreement, have been obtained or made.

The delivery of such opinion is conditioned upon receipt by Ropes & Gray LLP of customary representations it shall reasonably request of each of the Corporations.

6.4 The Acquiring Corporation, on behalf of the Acquiring Fund, shall have performed all of the covenants and complied with all of the provisions required by this Agreement to be performed or complied with by the Acquiring Fund on or before the Closing Date.

A-14

6.5 The Acquiring Corporation shall have entered into an expense cap agreement with DIMA limiting the expenses of Class A, Class C and Class S shares of the Acquiring Fund to 1.52%, 2.27% and 1.27%, respectively, excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest, for a period of one year commencing on the Closing Date.

7. Conditions Precedent to Obligations of the Acquiring Fund

The obligations of the Acquiring Fund to consummate the transactions provided for herein shall be subject, at its election, to the performance by the Acquired Corporation, on behalf of the Acquired Fund of all of the obligations to be performed by it hereunder on or before the Closing Date and, in addition thereto, the following further conditions:

7.1 All representations and warranties of the Acquired Corporation, on behalf of the Acquired Fund contained in this Agreement shall be true and correct in all material respects as of the date hereof and, except as they may be affected by the transactions contemplated by this Agreement, as of the Closing Date, with the same force and effect as if made on and as of the Closing Date; and there shall be (i) no pending or threatened litigation brought by any person (other than the Acquiring Fund, its adviser or any of their affiliates) against the Acquired Fund or its investment adviser, directors or officers arising out of this Agreement and (ii) no facts known to the Acquired Fund which the Acquired Fund reasonably believes might result in such litigation.

7.2 The Acquired Corporation, on behalf of the Acquired Fund, shall have delivered to the Acquiring Fund a statement of the Acquired Fund’s assets and liabilities as of the Closing Date, certified by the Treasurer of the Acquired Corporation.

7.3 The Acquired Corporation, on behalf of the Acquired Fund, shall have delivered to the Acquiring Fund on the Closing Date a certificate executed in its name by the Acquired Corporation’s President, Treasurer or a Vice President, in a form reasonably satisfactory to the Acquiring Corporation, on behalf of the Acquiring Fund, and dated as of the Closing Date, to the effect that the representations and warranties of the Acquired Corporation with respect to the Acquired Fund made in this Agreement are true and correct on and as of the Closing Date, except as they may be affected by the transactions contemplated by this Agreement, and as to such other matters as the Acquiring Fund shall reasonably request.

7.4 The Acquiring Fund shall have received on the Closing Date an opinion of Ropes & Gray LLP, in a form reasonably satisfactory to the Acquiring Fund, and dated as of the Closing Date, to the effect that:

(a) the Acquired Corporation is a validly existing corporation;

(b) the Acquired Fund has the power to carry on its business as presently conducted in accordance with the description thereof in the Acquired Corporation’s registration statement under the 1940 Act;

(c) the Agreement has been duly authorized, executed and delivered by the Acquired Corporation, on behalf of the Acquired Fund, and constitutes a valid and legally binding obligation of the Acquired Corporation, on behalf of the Acquired Fund, enforceable in accordance with its terms, subject to bankruptcy,

A-15

insolvency, fraudulent transfer, reorganization, moratorium and laws of general applicability relating to or affecting creditors’ rights and to general equity principles;

(d) the execution and delivery of the Agreement by the Acquired Corporation, on behalf of the Acquired Fund, did not, and the issuance of Acquired Fund Shares pursuant to the Agreement will not, violate the Acquired Corporation’s Articles of Amendment and Restatement, as amended or supplemented, or By-laws, as amended; and

(e) to the knowledge of such counsel, and without any independent investigation, (i) the Acquired Fund is not subject to any litigation or other proceedings that might have a materially adverse effect on the operations of the Acquired Fund, (ii) the Acquiring Corporation is registered as an investment company with the Commission and is not subject to any stop order, and (iii) all regulatory consents, authorizations, approvals or filings required to be obtained or made by the Acquired Fund under the federal laws of the United States or the laws of The State of Maryland for the transfer of the Acquired Fund’s assets and liabilities for Acquiring Fund Shares pursuant to the Agreement, have been obtained or made.

The delivery of such opinion is conditioned upon receipt by Ropes & Gray LLP of customary representations it shall reasonably request of each of the Corporations.

7.5 The Acquired Corporation, on behalf of the Acquired Fund, shall have performed all of the covenants and complied with all of the provisions required by this Agreement to be performed or complied with by the Acquired Fund on or before the Closing Date.

8. Further Conditions Precedent to Obligations of the Acquiring Fund and the Acquired Fund

If any of the conditions set forth below have not been met on or before the Closing Date with respect to the Acquired Fund or the Acquiring Fund, the other party to this Agreement shall, at its option, not be required to consummate the transactions contemplated by this Agreement:

8.1 This Agreement and the transactions contemplated herein shall have been approved by the requisite vote of the holders of the outstanding shares of the Acquired Fund in accordance with the provisions of the Acquired Corporation’s Articles of Amendment and Restatement, as amended or supplemented, and By-Laws, applicable Maryland law and the 1940 Act, and certified copies of the resolutions evidencing such approval shall have been delivered to the Acquiring Fund. Notwithstanding anything herein to the contrary, neither the Acquiring Fund nor the Acquired Fund may waive the conditions set forth in this section 8.1.

8.2 On the Closing Date, no action, suit or other proceeding shall be pending or to its knowledge threatened before any court or governmental agency in which it is sought to restrain or prohibit, or obtain material damages or other relief in connection with, this Agreement or the transactions contemplated herein.

8.3 All consents of other parties and all other consents, orders and permits of federal, state and local regulatory authorities deemed necessary by the Acquiring Fund or the Acquired Fund to permit consummation, in all material respects, of the

A-16

transactions contemplated hereby shall have been obtained, except where failure to obtain any such consent, order or permit would not involve a risk of a material adverse effect on the assets or properties of the Acquiring Fund or the Acquired Fund, provided that either party hereto may for itself waive any of such conditions.

8.4 The Registration Statement shall have become effective under the 1933 Act and no stop orders suspending the effectiveness thereof shall have been issued and, to the best knowledge of the parties hereto, no investigation or proceeding for that purpose shall have been instituted or be pending, threatened or contemplated under the 1933 Act.

8.5 The parties shall have received an opinion of Ropes & Gray LLP addressed to each of the Acquiring Fund and the Acquired Fund, in a form reasonably satisfactory to each such party to this Agreement, substantially to the effect that, although not free from doubt, on the basis of the existing provisions of the Code, US Treasury regulations issued thereunder, current administrative rules, pronouncements and court decisions, for federal income tax purposes:

(a) the acquisition by the Acquiring Fund of all of the assets of the Acquired Fund solely in exchange for Acquiring Fund Shares and the assumption by the Acquiring Fund of all of the liabilities of the Acquired Fund, followed by the distribution by the Acquired Fund to its shareholders of Acquiring Fund Shares in complete liquidation of the Acquired Fund, all pursuant to the Agreement, will constitute a reorganization within the meaning of Section 368(a) of the Code, and the Acquired Fund and the Acquiring Fund will each be a “party to a reorganization” within the meaning of Section 368(b) of the Code;

(b) under Sections 361 and 357(a) of the Code, no gain or loss will be recognized by the Acquired Fund upon the transfer of its assets to the Acquiring Fund in exchange for Acquiring Fund Shares and the assumption of the Acquired Fund’s liabilities by the Acquiring Fund, or upon the distribution of the Acquiring Fund Shares by the Acquired Fund to its shareholders in liquidation;

(c) under Section 354 of the Code, shareholders of the Acquired Fund will not recognize gain or loss upon the receipt of Acquiring Fund Shares solely in exchange for Acquired Fund shares;

(d) under Section 358 of the Code, the aggregate tax basis of the Acquiring Fund Shares received by each shareholder of the Acquired Fund in connection with the reorganization will be the same as the aggregate tax basis of his or her the Acquired Fund shares exchanged therefor;

(e) under Section 1223(1) of the Code, an Acquired Fund shareholder’s holding period for his or her Acquiring Fund Shares will be determined by including the period for which he or she held the Acquired Fund shares exchanged therefor, provided that he or she held the Acquired Fund shares on the date of the reorganization as capital assets;

(f) under Section 1032 of the Code, no gain or loss will be recognized by the Acquiring Fund upon the receipt of the assets of the Acquired Fund in exchange for Acquiring Fund Shares and the assumption by the Acquiring Fund of all the liabilities of the Acquired Fund;

(g) under Section 362(b) of the Code, the Acquiring Fund’s tax basis in the assets received from the Acquired Fund will be the same as the Acquired Fund’s tax basis in those assets immediately prior to the transfer;

A-17

(h) under Section 1223(2) of the Code, the Acquiring Fund’s holding periods in the assets received from the Acquired Fund will include the periods during which such assets were held by the Acquired Fund;

(i) the Acquiring Fund will succeed to and take into account the items of the Acquired Fund described in Section 381(c) of the Code, subject to the conditions and limitations specified in Section 381, 382, 383 and 384 of the Code and the regulations thereunder.

The opinion will express no view with respect to the effect of the merger on any transferred asset as to which any unrealized gain or loss is required to be recognized under federal income tax principles (i) at the end of a taxable year or upon the termination thereof, or (ii) upon the transfer of such asset regardless of whether such a transfer would otherwise be a non-taxable transaction.

The delivery of such opinion is conditioned upon receipt by Ropes & Gray LLP of certain factual certifications made by the officers of the Acquiring Corporation and the Acquired Corporation. Notwithstanding anything herein to the contrary, neither the Acquiring Fund nor the Acquired Fund may waive the condition set forth in this section 8.5.

9. Indemnification

9.1 The Acquiring Fund agrees to indemnify and hold harmless the Acquired Fund and each of the Acquired Corporation’s directors and officers from and against any and all losses, claims, damages, liabilities or expenses (including, without limitation, the payment of reasonable legal fees and reasonable costs of investigation) to which jointly and severally, the Acquired Corporation or any of its directors or officers may become subject, insofar as any such loss, claim, damage, liability or expense (or actions with respect thereto) arises out of or is based on any breach by the Acquiring Fund of any of its representations, warranties, covenants or agreements set forth in this Agreement.

9.2 The Acquired Fund agrees to indemnify and hold harmless the Acquiring Fund and each of the Acquiring Corporation’s directors and officers from and against any and all losses, claims, damages, liabilities or expenses (including, without limitation, the payment of reasonable legal fees and reasonable costs of investigation) to which jointly and severally, the Acquiring Corporation or any of its directors or officers may become subject, insofar as any such loss, claim, damage, liability or expense (or actions with respect thereto) arises out of or is based on any breach by the Acquired Fund of any of its representations, warranties, covenants or agreements set forth in this Agreement.

10. Fees and Expenses

10.1 The Acquiring Corporation, on behalf of the Acquiring Fund, and the Acquired Corporation, on behalf of the Acquired Fund, each represents and warrants to the other that it has no obligations to pay any brokers or finders fees in connection with the transactions provided for herein.

10.2 Except as provided herein, the Acquired Fund will bear all the expenses associated with the Reorganization, including, but not limited to, any transaction costs payable by the Acquired Fund in connection with the sale and purchase of assets as directed by the Acquiring Fund prior to the date of the Reorganization

A-18

(“Pre-Organization Transaction Costs”). DIMA agrees to bear expenses incurred by the Acquired Fund in connection with the Reorganization, including any Pre-Organization Transaction Costs, to the extent that such expenses exceed the estimated total one-year benefit of the Reorganization to the Acquired Fund, as calculated immediately prior to the Closing. Expenses will in any event be paid by the Fund directly incurring such expenses if and to the extent that the payment by the other Fund of such expenses would result in the disqualification of such Fund as a regulated investment company within the meaning of Section 851 of the Code.

11. Entire Agreement

The Acquiring Corporation, on behalf of the Acquiring Fund, and the Acquired Corporation, on behalf of the Acquired Fund, agree that neither party has made any representation, warranty or covenant not set forth herein and that this Agreement constitutes the entire agreement between the parties.

12. Termination

This Agreement may be terminated and the transactions contemplated hereby may be abandoned (i) by mutual agreement of the parties, or (ii) by either party if the Closing shall not have occurred on or before October 31, 2009, unless such date is extended by mutual agreement of the parties, or (iii) by either party if the other party shall have materially breached its obligations under this Agreement or made a material and intentional misrepresentation herein or in connection herewith. In the event of any such termination, this Agreement shall become void and there shall be no liability hereunder on the part of any party or their respective Board members or officers, except for any such material breach or intentional misrepresentation, as to each of which all remedies at law or in equity of the party adversely affected shall survive.

13. Amendments

This Agreement may be amended, modified or supplemented in such manner as may be mutually agreed upon in writing by any authorized officer of the Acquired Fund and any authorized officer of the Acquiring Fund; provided, however, that following the meeting of the Acquired Fund Shareholders called by the Acquired Fund pursuant to section 5.3 of this Agreement, no such amendment may have the effect of changing the provisions for determining the number of the Acquiring Fund Shares to be issued to the Acquired Fund Shareholders under this Agreement to the detriment of such shareholders without their further approval.

14. Notices

Any notice, report, statement or demand required or permitted by any provisions of this Agreement shall be in writing and shall be deemed duly given if delivered by hand (including by Federal Express or similar express courier) or transmitted by facsimile or three days after being mailed by prepaid registered or certified mail, return receipt requested, addressed to the Acquired Fund, 345 Park Avenue, New York, NY 10154, with a copy to Ropes & Gray LLP, One International Place, Boston, Massachusetts, 02110-2624, Attention: John W. Gerstmayr, Esq., or to the Acquiring Fund, 345 Park Avenue, New York, NY 10154, with a copy to Ropes & Gray LLP, One International Place, Boston, Massachusetts,

A-19

02110-2624, Attention: John W. Gerstmayr, Esq. or to any other address that the Acquired Fund or the Acquiring Fund shall have last designated by notice to the other party.

15. Headings; Counterparts; Assignment; Limitation of Liability

15.1 The Article and section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

15.2 This Agreement may be executed in any number of counterparts, each of which shall be deemed an original.

15.3 This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns, but no assignment or transfer hereof or of any rights or obligations hereunder shall be made by any party without the written consent of the other party. Nothing herein expressed or implied is intended or shall be construed to confer upon or give any person, firm or corporation, other than the parties hereto and the shareholders of the Acquiring Fund and the Acquired Fund and their respective successors and assigns, any rights or remedies under or by reason of this Agreement.

15.4 It is expressly agreed that the obligations of any Corporation hereunder shall not be binding upon any of the directors, shareholders, nominees, officers, agents, or employees of such Corporation or the Funds personally, but bind only the respective property of the Acquiring Fund or Acquired Fund, as applicable, as provided in such Corporation’s Articles of Amendment and Restatement, as amended or supplemented. Moreover, no series of a Corporation other than the applicable Fund shall be responsible for the obligations of such Corporation hereunder, and all persons shall look only to the assets of the applicable Fund to satisfy the obligations of any Corporation hereunder. The execution and the delivery of this Agreement have been authorized by the Corporations’ directors, on behalf of the Funds, and this Agreement has been signed by authorized officers of the Corporations acting as such, and neither such authorization by such directors, nor such execution and delivery by such officers, shall be deemed to have been made by any of them individually or to impose any liability on any of them personally, but shall bind only the respective property of the applicable Fund, as provided in such Corporation’s Articles of Amendment and Restatement, as amended or supplemented.

15.5 Notwithstanding anything to the contrary contained in this Agreement, the obligations, agreements, representations and warranties with respect to each Fund shall constitute the obligations, agreements, representations and warranties of that Fund only (the “Obligated Fund”), and in no event shall any other series of the Corporations or the assets of any such series be held liable with respect to the breach or other default by the Obligated Fund of its obligations, agreements, representations and warranties as set forth herein.

15.6 This Agreement shall be governed by, and construed and enforced in accordance with, the laws of The State of Maryland, without regard to its principles of conflicts of laws.

A-20

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by an authorized officer and its seal to be affixed thereto and attested by its Secretary or Assistant Secretary.


Attest:						DWS INTERNATIONAL FUND, INC., on behalf of DWS International Value Opportunities Fund

						By:
Secretary						Its:

Attest:						DWS INVESTORS FUNDS, INC., on behalf of DWS Japan Equity Fund

						By:
Secretary						Its:

AGREED TO AND ACKNOWLEDGED ONLY WITH RESPECT TO SECTION 10.2 HERETO

DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC.

By:
Its:

By:
Its:

A-21

EXHIBIT B

FINANCIAL HIGHLIGHTS

DWS International Value Opportunities Fund Class A


	Years Ended August 31,
	2008			2007			2006^a
Selected Per Share Data
Net asset value, beginning of period	$	12.27		$	10.25		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^b		.14			.19			.02
Net realized and unrealized gain (loss)		(1.41	)		1.93			.23
Total from investment operations		(1.27	)		2.12			.25
Less distributions from:
Net investment income		(.09	)		(.10	)		—
Net realized gains		(.25	)		—			—
Total distributions		(.34	)		(.10	)		—
Redemption fees		.00	^***		.00	^***		—
Net asset value, end of period	$	10.66		$	12.27		$	10.25
Total Return (%)^c,d		(10.72	)		20.67			2.50	^**

Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		5			3			1
Ratio of expenses before expense reductions (%)		2.43			4.51			9.51	^*
Ratio of expenses after expense reductions (%)		1.61	^e		2.05	^e		1.56	^*
Ratio of net investment income (loss) (%)		1.17			1.62			1.74	^*
Portfolio turnover rate (%)		197			127			7	^**

For the period from July 5, 2006 (commencement of operations) to August 31, 2006.

Based on average shares outstanding during the period.

Total return does not reflect the effect of any sales charges.

Total returns would have been lower had certain expenses not been reduced.

Ratio includes interest expense incurred on foreign cash overdrafts. Interest income earned on domestic cash balances is included in income from investment operations. The ratio of expenses after expense reductions excluding interest expense was 1.57% and 1.51% for the years ended August 31, 2008 and 2007, respectively.

Annualized

^**

Not annualized

^***

Amount is less than $.005.

B-1

DWS International Value Opportunities Fund Class C


	Years Ended August 31,
	2008			2007			2006^a
Selected Per Share Data
Net asset value, beginning of period	$	12.25		$	10.23		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^b		.05			.10			.01
Net realized and unrealized gain (loss)		(1.41	)		1.93			.22
Total from investment operations		(1.36	)		2.03			.23
Less distributions from:
Net investment income		—			(.01	)		—
Net realized gains		(.25	)		—			—
Total distributions		(.25	)		(.01	)		—
Redemption fees		.00	^***		.00	^***		—
Net asset value, end of period	$	10.64		$	12.25		$	10.23
Total Return (%)^c,d		(11.43	)		19.90			2.30	^**

Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		3			3			1
Ratio of expenses before expense reductions (%)		3.16			5.31			10.26	^*
Ratio of expenses after expense reductions (%)		2.37	^e		2.85	^e		2.31	^*
Ratio of net investment income (loss) (%)		.41			.82			.99	^*
Portfolio turnover rate (%)		197			127			7	^**

For the period from July 5, 2006 (commencement of operations) to August 31, 2006.

Based on average shares outstanding during the period.

Total return does not reflect the effect of any sales charges.

Total returns would have been lower had certain expenses not been reduced.

Ratio includes interest expense incurred on foreign cash overdrafts. Interest income earned on domestic cash balances is included in income from investment operations. The ratio of expenses after expense reductions excluding interest expense was 2.32% and 2.31% for the years ended August 31, 2008 and 2007, respectively.

Annualized

^**

Not annualized

^***

Amount is less than $.005.

B-2

DWS International Value Opportunities Fund Class S


	Years Ended August 31,
	2008			2007			2006^a
Selected Per Share Data
Net asset value, beginning of period	$	12.27		$	10.25		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^b		.17			.21			.03
Net realized and unrealized gain (loss)		(1.41	)		1.94			.22
Total from investment operations		(1.24	)		2.15			.25
Less distributions from:
Net investment income		(.11	)		(.13	)		—
Net realized gains		(.25	)		—			—
Total distributions		(.36	)		(.13	)		—
Redemption fees		.00	^***		.00	^***		—
Net asset value, end of period	$	10.67		$	12.27		$	10.25
Total Return (%)^c		(10.62	)		21.07			2.50	^**

Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)		4			4			1
Ratio of expenses before expense reductions (%)		2.27			4.33			9.44	^*
Ratio of expenses after expense reductions (%)		1.37	^d		1.85	^d		1.31	^*
Ratio of net investment income (loss) (%)		1.41			1.82			1.99	^*
Portfolio turnover rate (%)		197			127			7	^**

For the period from July 5, 2006 (commencement of operations) to August 31, 2006.

Based on average shares outstanding during the period.

Total returns would have been lower had certain expenses not been reduced.

Ratio includes interest expense incurred on foreign cash overdrafts. Interest income earned on domestic cash balances is included in income from investment operations. The ratio of expenses after expense reductions excluding interest expense was 1.32% and 1.31% for the years ended August 31, 2008 and 2007, respectively.

Annualized

^**

Not annualized

^***

Amount is less than $.005.

B-3


I.	SYNOPSIS	3

II.	INVESTMENT STRATEGIES AND RISK FACTORS	12

III.	OTHER INFORMATION ABOUT THE FUNDS	19

IV.	INFORMATION ABOUT THE PROPOSED MERGER	24

V.	INFORMATION ABOUT VOTING AT THE SHAREHOLDER MEETING	33

Exhibit A Form of Agreement and Plan of Reorganization

Exhibit B Financial Highlights

Proxy card enclosed.

For more information, please call your Fund’s proxy solicitor, Computershare Fund Services, Inc., at 1-866-953-5820.


				VOTING OPTIONS:

						VOTE ON THE INTERNET Log on to: www.proxy-direct.com Follow the on-screen instructions *available 24 hours*

						VOTE BY PHONE Call 1-866-241-6192 Follow the recorded instructions *available 24 hours*

						VOTE BY MAIL Vote, sign and date this Proxy Card and return in the postage-paid envelope

						VOTE IN PERSON Attend Shareholder Meeting 345 Park Avenue, 27^th Floor New York, NY 10154 on June 19, 2009

Please detach at perforation before mailing.


		PROXY CARD
	DWS JAPAN EQUITY FUND
	DWS INVESTORS FUND, INC.
	PROXY FOR THE SPECIAL MEETING OF SHAREHOLDERS
	345 Park Avenue, 27^th Floor, New York, New York 10154
280 Oser Avenue	4:00 p.m., Eastern time, on June 19, 2009
Hauppauge, NY 11788-3610

The undersigned hereby appoint(s) J. Christopher Jackson, John Millette and Rita Rubin, and each of them, with full power of substitution, as proxy or proxies of the undersigned to vote all shares of the Fund that the undersigned is entitled in any capacity to vote at the above-stated Special Meeting of Shareholders, and at any and all adjournments or postponements thereof (the “Special Meeting”), on the matter set forth in the Notice of a Special Meeting of Shareholders and on this Proxy Card, and, in their discretion, upon all matters incident to the conduct of the Special Meeting and upon such other matters as may properly be brought before the Special Meeting. This proxy revokes all prior proxies given by the undersigned.

All properly executed proxies will be voted as directed. If no instructions are indicated on a properly executed proxy, the proxy will be voted FOR approval of the Proposal. All ABSTAIN votes will be counted in determining the existence of a quorum at the Special Meeting. Receipt of the Notice of a Special Meeting of Shareholders and the related Proxy Statement is hereby acknowledged.


				VOTE VIA THE INTERNET: www.proxy-direct.com
				VOTE VIA THE TELEPHONE: 1-866-241-6192


				Note: Joint owners should EACH sign. Please sign EXACTLY as your name(s) appears on this proxy card. When signing as attorney, trustee, executor, administrator, guardian or corporate officer, please give your FULL title as such.

				Signature(s) (Title(s), if applicable)


				Date		JEF_20093_032309

Important Notice Regarding the Availability of Proxy Materials for the DWS Japan Equity Fund

Special Shareholder Meeting to Be Held on June 19, 2009.

The Proxy Statement for this meeting is available at: https://www.proxy-direct.com/dws20093

Please detach at perforation before mailing.

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS WITH RESPECT TO YOUR FUND. THE FOLLOWING MATTER IS PROPOSED BY YOUR FUND. THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE PROPOSAL.

TO VOTE, MARK A BLOCK BELOW IN BLUE OR BLACK INK. Example: ¢

VOTE ON PROPOSAL:


		FOR	AGAINST	ABSTAIN
1.	Approving an Agreement and Plan of Reorganization and the transactions it contemplates, including the transfer of all the assets of DWS Japan Equity Fund (“Japan Equity Fund”) to DWS International Value Opportunities Fund (“International Value Fund”), in exchange for shares of International Value Fund and the assumption by International Value Fund of all the liabilities of Japan Equity Fund, and the distribution of such shares, on a tax-free basis for federal income tax purposes, to the shareholders of Japan Equity Fund in complete liquidation and termination of Japan Equity Fund.	¨	¨	¨

UNLESS VOTING BY TELEPHONE OR INTERNET, PLEASE SIGN, DATE AND MAIL THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE.

NO POSTAGE REQUIRED.

JGI_20093_032309



                                DECEMBER 1, 2008

                                   PROSPECTUS
                              ------------------
                                CLASSES A AND C

                   DWS INTERNATIONAL VALUE OPPORTUNITIES 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



CONTENTS

HOW THE FUND WORKS
  4      The Fund's Main Investment
         Strategy
  5      The Main Risks of Investing in
         the Fund
  9      The Fund's Performance
         History
 11      How Much Investors Pay
 13      Other Policies and Secondary
         Risks
 14      Who Manages and Oversees
         the Fund
 18      Financial Highlights

HOW TO INVEST IN THE FUND
 21      Choosing a Share Class
 26      How to Buy Class A and C
         Shares
 27      How to Exchange or Sell
         Class A and C Shares
 30      Policies You Should Know
         About
 42      Understanding Distributions
         and Taxes
 46      Appendix



HOW THE FUND WORKS

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

Whether you are considering investing in the 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 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).



                                                 Class A    Class C
  ticker symbol                                  DNVAX      DNVCX
    fund number                                  455        755

    DWS INTERNATIONAL VALUE OPPORTUNITIES FUND

            THE FUND'S MAIN INVESTMENT STRATEGY

            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,
            Australasia and Far East Index ("MSCI EAFE (Reg. TM) Index"). The
            fund may also invest a portion of its assets in companies based in
            the emerging markets of Latin America, the Middle East, Europe,
            Asia and Africa if the portfolio managers believe that their return
            potential more than compensates for the extra risks associated with
            these markets. While the portfolio managers have invested in
            emerging markets in the past, under normal market conditions they
            do not consider this a central element of the fund's strategy.
            Typically, the fund would not hold more than 20% of its net assets
            in emerging markets. In implementing this overall strategy, the
            fund may experience a high portfolio turnover rate. The fund's
            equity investments are mainly common stocks, but may also include
            other types of equities such as preferred stocks or convertible
            securities. 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.

            The fund invests for the long term. The portfolio managers employ a
            value strategy and invest in companies that they believe are
            undervalued. These are typically companies that have been
            historically sound but are temporarily out of favor. The fund
            intends to invest primarily in companies whose market
            capitalizations fall within the normal range of the MSCI EAFE (Reg.
            TM) Index.

4 | DWS International Value Opportunities Fund



            The portfolio managers track several thousand companies to arrive
            at between 50 to 70 stocks the fund normally holds. The managers
            use a variety of quantitative screens to compare a company's stock
            price to its book value, cash flow and dividend yield, and analyze
            individual companies to identify those that are financially sound
            and appear to have strong potential for long-term growth.

            After narrowing the investment universe through the use of
            valuation screens, the portfolio managers' use of fundamental
            research tools lies at the heart of the investment process. The
            portfolio managers' process brings an added dimension to this
            fundamental research by drawing on the insight of experts from a
            range of financial disciplines - regional stock market specialists,
            global industry specialists, economists and quantitative analysts.
            They challenge, refine and amplify each other's ideas. Their close
            collaboration is a critical element of the portfolio managers'
            investment process.

            OTHER INVESTMENTS. The fund is permitted, but not required, to use
            various types of derivatives (contracts whose value is based on,
            for example, indices, currencies or securities). Derivatives may be
            used for hedging and for risk management or for non-hedging
            purposes to seek to enhance potential gains. The fund may use
            derivatives in circumstances where portfolio management believes
            they offer an economical means of gaining exposure to a particular
            asset class or to keep cash on hand to meet shareholder redemptions
            or other needs while maintaining exposure to the market.

            SECURITIES LENDING. The fund may lend its investment securities in
            an amount up to 33 1/3% of its total assets to approved
            institutional borrowers who need to borrow securities in order to
            complete certain transactions.

            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.

            STOCK MARKET RISK. As with most stock funds, an important factor
            with this fund is how stock markets perform. To the extent that the
            fund invests in a particular geographic region, the fund's
            performance may be proportionately affected by that region's
            general performance. When stock prices fall, you should expect the
            value of your investment to fall as well.

                                 DWS International Value Opportunities Fund  | 5



            Because a stock represents ownership in its issuer, stock prices
            can be hurt by poor management, shrinking product demand and other
            business risks. These 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 and the fund may not be able to get
            attractive prices for them.

            SECURITY SELECTION RISK. A risk that pervades all investing is the
            risk that the securities in the fund's portfolio may decline in
            value.

            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.

THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund is designed for investors who are seeking capital appreciation and are
willing to accept the risks of investing in the stocks of foreign companies.

6 | DWS International Value Opportunities Fund



            -  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.

            EMERGING MARKET RISK. All of the risks of investing in foreign
            securities are increased in connection with investments in emerging
            markets securities. In addition, profound social changes and
            business practices that depart from norms in developed countries'
            economies have hindered the orderly growth of emerging economies
            and their markets in the past and have caused instability. High
            levels of debt tend to make emerging economies heavily reliant on
            foreign capital and vulnerable to capital flight. Countries with
            emerging economies are also more likely to experience high levels
            of inflation, deflation or currency devaluation, which could also
            hurt their economies and securities markets. For these and other
            reasons, investments in emerging markets are often considered
            speculative.

            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

                                 DWS International Value Opportunities Fund  | 7



            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.

            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.

            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.

8 | DWS International Value Opportunities Fund



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 Class 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.

DWS International Value Opportunities 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.)

15.52
2007

2008 TOTAL RETURN AS OF SEPTEMBER 30: -29.55%
FOR THE PERIOD INCLUDED IN THE BAR CHART:
BEST QUARTER: 6.82%, Q2 2007                  WORST QUARTER: 1.65%, Q4 2007

                                 DWS International Value Opportunities Fund  | 9



AVERAGE ANNUAL TOTAL RETURNS (%) AS OF 12/31/2007 (Fund returns include the
effects of maximum sales load.)

                                             1 YEAR      SINCE INCEPTION*
 CLASS A
   Return before Taxes                         8.88            16.50
   Return after Taxes on Distributions         8.24            15.91
   Return after Taxes on Distributions
   and Sale of Fund Shares                     6.13            13.90
 CLASS C (Return before Taxes)                14.59            20.31
 MSCI EAFE INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                       11.17            17.58

 *   Inception date for the fund was July 5, 2006. Index comparison begins on
     June 30, 2006.

     Total returns would have been lower if operating expenses hadn't been
reduced.

 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.

10 | DWS International Value Opportunities Fund



HOW MUCH INVESTORS PAY

The table below describes the fees and expenses that you may pay if you buy and
hold fund shares. This information doesn't include any fees that may be charged
by your financial advisor.

FEE TABLE                                           CLASS A             CLASS 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%
 Redemption/Exchange fee on shares
 owned less than 15 days (as % of
 redemption proceeds)3                               2.00                 2.00

 ANNUAL OPERATING EXPENSES, deducted from fund assets
________________________________________________________________________________
 Management Fee                                      0.80  %              0.80%
 Distribution/Service (12b-1) Fee                    0.22                 0.97
 Other Expenses4                                     1.41                 1.39
 TOTAL ANNUAL OPERATING EXPENSES                     2.43                 3.16
 Less Fee Waiver/Expense
 Reimbursement                                       0.91                 0.89
 NET ANNUAL OPERATING EXPENSES5                      1.52                 2.27

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   This fee is charged on all applicable redemptions or exchanges. Please see
   "Policies You Should Know About - Policies about transactions" for further
   information.

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

5   Through November 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 1.52% and 2.27% for Class A and Class C shares,
   respectively, excluding certain expenses such as extraordinary expenses,
   taxes, brokerage and interest.

                                DWS International Value Opportunities Fund  | 11



Based on the costs above (including one year of capped expenses in each
period), this example helps you compare this fund's expenses to those of other
mutual funds. This example assumes the expenses above remain the same and 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.

EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
 EXPENSES, assuming you sold your shares at the end of each period
________________________________________________________________________
 Class A shares        $721       $1,207       $1,719       $3,117
 Class C shares         330          891        1,577        3,405

 EXPENSES, assuming you kept your shares
________________________________________________________________________
 Class A shares        $721       $1,207       $1,719       $3,117
 Class C shares         230          891        1,577        3,405

12 | DWS International Value Opportunities Fund



OTHER POLICIES AND SECONDARY RISKS

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

           -  Although major changes tend to be infrequent, the fund's Board
              could change the fund's investment objective without seeking
              shareholder approval. However, the Board will provide
              shareholders with at least 60 days' notice prior to making any
              changes to the fund's 80% investment policy as described herein.

           -  As a temporary defensive measure, the fund could shift up to 100%
              of assets into investments such as money market securities or
              other short-term securities that offer comparable levels of risk.
              This could prevent losses, but, while engaged in a temporary
              defensive position, the 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.

           -  The fund 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.

           -  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.

           Secondary risks

           CREDIT RISK. The fund will be subject to the risk that the
           creditworthiness of a bond's issuer may decline, causing the value
           of the bond to decline. In addition, an issuer may not be able to
           make timely payments on the interest and principal on the bonds it
           has issued. In some cases, bonds may decline in credit quality or go
           into default.

                                        Other Policies and Secondary Risks  | 13



           For more information

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

           If you want more information on the 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 the fund will achieve
           its objective.

            A complete list of the 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 the 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. The fund's
            Statement of Additional Information includes a description of the
            fund's policies and procedures with respect to the disclosure of the
            fund's portfolio holdings.

WHO MANAGES AND OVERSEES THE FUND

           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 the fund. Under the oversight
           of the Board, the Advisor, or the subadvisor, makes investment
           decisions, buys and sells securities for the 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.

14 | Who Manages and Oversees the Fund



           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 receives a management fee from the fund.
           Below is the actual rate paid by the fund for the most recent fiscal
           year, as a percentage of the fund's average daily net assets.

FUND NAME                                                    FEE PAID
DWS International Value Opportunities Fund                      0.07%*

           *   Reflects the effects of expense limitations and/or fee waivers
then in effect.

           As compensation for its services, DIMA is entitled to receive from
           the fund a fee (based upon the fund's average daily net assets) in
           accordance with the following schedule: 0.800% on the first $500
           million; 0.780% on the next $500 million; 0.760% on the next $1
           billion; and 0.740% thereafter.

           A discussion regarding the basis for the Board's approval of the
           fund's investment management agreement and subadvisory agreement, is
           contained in the shareholder report for the semiannual period ended
           February 29 (see "Shareholder reports" on the back cover).

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

                                         Who Manages and Oversees the Fund  | 15



           Subadvisor for DWS International Value Opportunities Fund

           The subadvisor for DWS International Value Opportunities Fund is
           Deutsche Asset Management International GmbH ("DeAMi"), Mainzer
           Landstrasse 178-190, Frankfurt am Main, Germany. DeAMi renders
           investment advisory and management services to the fund. DeAMi is an
           investment advisor registered with the Securities and Exchange
           Commission and currently manages over $60 billion in assets, which
           is primarily comprised of institutional accounts and investment
           companies. DeAMi is a subsidiary of Deutsche Bank AG. DIMA
           compensates DeAMi out of the management fee it receives from the
           fund.

16 | Who Manages and Oversees the Fund



Portfolio management

The fund is managed by a team of investment professionals who collaborate to
develop and implement the fund's investment strategy. Each portfolio manager on
the team has authority over all aspects of the 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 the fund.

Klaus Kaldemorgen
Managing Director of Deutsche Asset Management and Lead Portfolio Manager of
the fund.
- Joined Deutsche Asset Management in 1982 and the fund in 2006.
- Head of Equities: Germany; senior portfolio manager of international
   equities; Managing Director of DWS Investment GmbH: Frankfurt.
- Master's degree in economics, Johannes-Gutenberg University, Mainz.

Carmen Weber, CFA
Director of Deutsche Asset Management and Portfolio Manager of the fund.
- Joined Deutsche Asset Management and the fund in 2006.
- Senior portfolio manager for Global Equities: Frankfurt.
- Prior to that, Head of Growth and Equity Funds at Metzler.
- Over 15 years of investment industry experience.
- BA, University of Siegen, Germany.

The fund's Statement of Additional Information provides additional information
about a portfolio manager's investments in the fund, a description of the
portfolio management compensation structure and information regarding other
accounts managed.

                                         Who Manages and Oversees the Fund  | 17



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
the 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
the fund's financial statements, is included in the fund's annual report (see
"Shareholder reports" on the back cover).

DWS International Value Opportunities Fund - Class A

YEARS ENDED AUGUST 31,                                   2008             2007           2006 a
SELECTED PER SHARE DATA
-----------------------------------------------------------------------------------           -
NET ASSET VALUE, BEGINNING OF PERIOD                  $  12.27         $  10.25         $ 10.00
-------------------------------------------------     --------         --------         -------
Income (loss) from investment operations:
  Net investment income (loss)b                            .14              .19             .02
_________________________________________________     ________         ________         _______
  Net realized and unrealized gain (loss)               ( 1.41)            1.93             .23
-------------------------------------------------     --------         --------         -------
  TOTAL FROM INVESTMENT OPERATIONS                      ( 1.27)            2.12             .25
_________________________________________________     ________         ________         _______
Less distributions from:
  Net investment income                                 (  .09)          (  .10)              -
_________________________________________________     ________         ________         _______
  Net realized gains                                    (  .25)               -               -
-------------------------------------------------     --------         --------         -------
  TOTAL DISTRIBUTIONS                                   (  .34)          (  .10)              -
_________________________________________________     ________         ________         _______
Redemption fees                                            .00***           .00***            -
-------------------------------------------------     --------         --------         -------
NET ASSET VALUE, END OF PERIOD                        $  10.66         $  12.27         $ 10.25
-------------------------------------------------     --------         --------         -------
Total Return (%)c,d                                     (10.72)           20.67            2.50**
-------------------------------------------------     --------         --------         -------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------     -------
Net assets, end of period ($ millions)                       5                3               1
_________________________________________________     ________         ________         _______
Ratio of expenses before expense reductions (%)           2.43             4.51            9.51*
_________________________________________________     ________         ________         _______
Ratio of expenses after expense reductions (%)         1.61e            2.05e              1.56*
_________________________________________________     ________         ________         _______
Ratio of net investment income (loss) (%)                 1.17             1.62            1.74*
_________________________________________________     ________         ________         _______
Portfolio turnover rate (%)                                197              127               7**
-------------------------------------------------     --------         --------         -------

a   For the period from July 5, 2006 (commencement of operations) to August 31,
2006.

b   Based on average shares outstanding during the period.

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

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

e   Ratio includes interest expense incurred on foreign cash overdrafts.
   Interest income earned on domestic cash balances is included in income from
   investment operations. The ratio of expenses after expense reductions
   excluding interest expense was 1.57% and 1.51% for the years ended August
   31, 2008 and 2007, respectively.

*   Annualized

**   Not annualized

***   Amount is less than $.005.

18 | Financial Highlights



DWS International Value Opportunities Fund - Class C

YEARS ENDED AUGUST 31,                                   2008             2007           2006 a
SELECTED PER SHARE DATA
-----------------------------------------------------------------------------------           -
NET ASSET VALUE, BEGINNING OF PERIOD                  $  12.25         $  10.23         $ 10.00
-------------------------------------------------     --------         --------         -------
Income (loss) from investment operations:
  Net investment income (loss)b                            .05              .10             .01
_________________________________________________     ________         ________         _______
  Net realized and unrealized gain (loss)               ( 1.41)            1.93             .22
-------------------------------------------------     --------         --------         -------
  TOTAL FROM INVESTMENT OPERATIONS                      ( 1.36)            2.03             .23
_________________________________________________     ________         ________         _______
Less distributions from:
  Net investment income                                      -           (  .01)              -
_________________________________________________     ________         ________         _______
  Net realized gains                                    (  .25)               -               -
-------------------------------------------------     --------         --------         -------
  TOTAL DISTRIBUTIONS                                   (  .25)          (  .01)              -
_________________________________________________     ________         ________         _______
Redemption fees                                            .00***           .00***            -
-------------------------------------------------     --------         --------         -------
NET ASSET VALUE, END OF PERIOD                        $  10.64         $  12.25         $ 10.23
-------------------------------------------------     --------         --------         -------
Total Return (%)c,d                                     (11.43)           19.90            2.30**
-------------------------------------------------     --------         --------         -------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------     -------
Net assets, end of period ($ millions)                       3                3               1
_________________________________________________     ________         ________         _______
Ratio of expenses before expense reductions (%)           3.16             5.31           10.26*
_________________________________________________     ________         ________         _______
Ratio of expenses after expense reductions (%)         2.37e            2.85e              2.31*
_________________________________________________     ________         ________         _______
Ratio of net investment income (loss) (%)                  .41              .82             .99*
_________________________________________________     ________         ________         _______
Portfolio turnover rate (%)                                197              127               7**
-------------------------------------------------     --------         --------         -------

a   For the period from July 5, 2006 (commencement of operations) to August 31,
2006.

b   Based on average shares outstanding during the period.

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

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

e   Ratio includes interest expense incurred on foreign cash overdrafts.
   Interest income earned on domestic cash balances is included in income from
   investment operations. The ratio of expenses after expense reductions
   excluding interest expense was 2.32% and 2.31% for the years ended August
   31, 2008 and 2007, respectively.

*   Annualized

**   Not annualized

***   Amount is less than $.005.

                                                      Financial Highlights  | 19



HOW TO INVEST IN THE FUND
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. The
fund offers 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 THE 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.



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.

 CLASSES AND FEATURES                         POINTS TO HELP YOU COMPARE
 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 C
 -  Up to 0.25% annual shareholder
  servicing fee
 CLASS C
 -  No sales charge when you buy shares       -  Unlike Class A shares, Class C shares
                                             do not have a sales charge when
 -  Deferred sales charge of 1.00%,
                                             buying shares, but have higher annual
  charged when you sell shares you
                                             expenses than those for Class A
  bought within the last year
                                             shares and a one year deferred sales
 -  0.75% annual distribution fee and up
                                             charge
  to 0.25% annual shareholder servicing
  fee

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. The 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.

                                                    Choosing a Share Class  | 21



           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:

                              FRONT-END SALES          FRONT-END SALES
                                CHARGE AS %          CHARGE AS % OF YOUR
YOUR INVESTMENT            OF OFFERING PRICE 1,2        NET INVESTMENT 2
  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

           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")

22 | Choosing a Share Class



           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 the 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 the 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).

                                                    Choosing a Share Class  | 23



           Details regarding the types of investment programs and categories of
           investors eligible for a sales charge waiver are provided in the
           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. The 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 C shares

           Class C shares may appeal to investors who aren't certain of their
           investment time horizon.

           With Class C shares, you pay no up-front sales charge to the 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 higher than those for Class A shares
           (and the performance of Class C shares is correspondingly lower than
           that of Class A shares).

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

   YEAR AFTER YOU BOUGHT SHARES        CDSC ON SHARES YOU SELL
  First year                          1.00%
  Second year and later                         None

           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.

24 | Choosing a Share Class



           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  | 25



How to BUY Class A and C Shares


 FIRST INVESTMENT                                ADDITIONAL INVESTMENTS
 $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

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

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

26 | How to Buy Class A and C Shares



How to EXCHANGE or SELL Class A and C Shares


 EXCHANGING INTO ANOTHER FUND                    SELLING SHARES
                                                 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

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

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

                              How to Exchange or Sell Class A and C Shares  | 27



           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 the 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 the fund, any record keeping/sub-transfer
           agency/networking fees payable by the 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 the 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 the 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.

28 | How to Exchange or Sell Class A and C Shares



           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 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 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 the 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 the fund. Additional information regarding these
           revenue sharing payments is included in the 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 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

                              How to Exchange or Sell Class A and C Shares  | 29



           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.

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 the fund. Please note that
           a financial advisor may charge fees separate from those charged by
           the fund and may be compensated by the 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

           THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
           is open. The 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.

30 | Policies You Should Know About



           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 the fund, then we may reject your application and order.

           The 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 the fund, after a reasonable effort to do so, you
           will receive written notification.

           With certain limited exceptions, only US residents may invest in the
           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 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  | 31



           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. The 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).

           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 the 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 the 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 the fund (e.g.,
           "time zone arbitrage"). The 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.

32 | Policies You Should Know About



           Pursuant to its policies, the fund will impose a 2% redemption fee
           on fund shares held for less than a specified holding period
           (subject to certain exceptions discussed below under "Redemption
           fees"). The fund also reserves the right to reject or cancel a
           purchase or exchange order for any reason without prior notice. For
           example, the 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 the fund. The 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. The fund may take other trading activity into account if the
           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. The 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, but all redemptions remain subject to the
           fund's redemption fee policy (see "Redemption fees" described
           below).

           The 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 the fund, such as, but not limited to,
           systematic transactions, required minimum retirement distributions,
           transactions initiated by the fund or administrator and transactions
           by certain qualified funds-of-funds.

                                            Policies You Should Know About  | 33



           In certain circumstances where shareholders hold shares of the 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 the 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 the fund that provide a substantially similar level of
           protection for the 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 the 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 the fund. (See "How the 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 the fund's shares) short-term and/or excessive trading of fund
           shares could adversely affect long-term shareholders in the fund. If
           short-term or excessive trading is identified, the Advisor will take
           appropriate action.

34 | Policies You Should Know About



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

           REDEMPTION FEES. The fund imposes a redemption fee of 2% of the
           total redemption amount (calculated at net asset value, without
           regard to the effect of any contingent deferred sales charge; any
           contingent deferred sales charge is also assessed on the total
           redemption amount without regard to the assessment of the 2%
           redemption fee) on all fund shares redeemed or exchanged within 15
           days of buying them (either by purchase or exchange). The redemption
           fee is paid directly to the fund and is designed to encourage
           long-term investment and to offset transaction and other costs
           associated with short-term or excessive trading. For purposes of
           determining whether the redemption fee applies, shares held the
           longest time will be treated as being redeemed first and shares held
           the shortest time will be treated as being redeemed last.

           The redemption fee is applicable to fund shares purchased either
           directly or through a financial intermediary, such as a
           broker-dealer. Transactions through financial intermediaries
           typically are placed with the fund on an omnibus basis and include
           both purchase and sale transactions placed on behalf of multiple
           investors. These purchase and sale transactions are generally netted
           against one another and placed on an aggregate basis; consequently
           the identities of the individuals on whose behalf the transactions
           are placed generally are not known to the fund. For this reason, the
           fund has undertaken to notify financial intermediaries of their
           obligation to assess the redemption fee on customer accounts and to
           collect and remit the proceeds to the fund. However, due to
           operational requirements, the intermediaries' methods for tracking
           and calculating the fee may be inadequate or differ in some respects
           from the fund's. Subject to approval by the Advisor or the fund's
           Board, intermediaries who transact business on an omnibus basis may
           implement the redemption fees according to their own operational
           guidelines (which may be different than the fund's policies) and
           remit the fees to the fund.

           The redemption fee will not be charged in connection with the
           following exchange or redemption transactions: (i) transactions on
           behalf of participants in certain research wrap programs; (ii)
           transactions on behalf of a shareholder to return any excess IRA
           contributions to the shareholder; (iii) transactions on behalf of a
           shareholder to effect a required minimum distribution on an IRA;
           (iv) transactions on behalf of any mutual fund advised by

                                            Policies You Should Know About  | 35



           the Advisor and its affiliates (e.g., "funds of funds") or, in the
           case of a master/feeder relationship, redemptions by the feeder fund
           from the master portfolio; (v) transactions on behalf of certain
           unaffiliated mutual funds operating as funds of funds; (vi)
           transactions following death or disability of any registered
           shareholder, beneficial owner or grantor of a living trust with
           respect to shares purchased before death or disability; (vii)
           transactions involving hardship of any registered shareholder;
           (viii) systematic transactions with pre-defined trade dates for
           purchases, exchanges or redemptions, such as automatic account
           rebalancing, or loan origination and repayments; (ix) transactions
           involving shares purchased through the reinvestment of dividends or
           other distributions; (x) transactions involving shares transferred
           from another account in the same fund or converted from another
           class of the same fund (the redemption fee period will carry over to
           the acquired shares); (xi) transactions initiated by the fund or
           administrator (e.g., redemptions for not meeting account minimums,
           to pay account fees funded by share redemptions, or in the event of
           the liquidation or merger of the fund); or (xii) transactions in
           cases when there are legal or contractual limitations or
           restrictions on the imposition of the redemption fee (as determined
           by the fund or its agents in their sole discretion). It is the
           policy of the DWS funds to permit approved fund platform providers
           to execute transactions with the funds without the imposition of a
           redemption fee if such providers have implemented alternative
           measures that are determined by the Advisor to provide controls on
           short-term and excessive trading that are comparable to the DWS
           funds' policies.

           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.

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.

36 | Policies You Should Know About



           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.

           THE FUND DOES NOT ISSUE SHARE CERTIFICATES.

           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. The fund can only send wires of $1,000 or more and accept
           wires of $50 or more.

           THE 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. The 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.

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.

                                            Policies You Should Know About  | 37



           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 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

38 | Policies You Should Know About



         -  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. 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.

           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. The 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 the
           fund or the fair determination of the

                                            Policies You Should Know About  | 39



           value of the 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 the 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 the fund calculates share price

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

            TOTAL ASSETS - TOTAL LIABILITIES
           -----------------------------------------    =    NAV
               TOTAL NUMBER OF SHARES OUTSTANDING

           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").

           THE FUND CHARGES A REDEMPTION FEE EQUAL TO 2.00% of the value of
           shares redeemed or exchanged within 15 days of purchase. Please see
           "Policies about transactions - Redemption fees" for further
           information.

           WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN
           INDEPENDENT PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE.
           However, we may use methods approved by the 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 the 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, the fund's
           value for a security is

40 | Policies You Should Know About



           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 the -fund's use of fair value
           pricing. This is intended to reduce the fund's exposure to "time
           zone arbitrage" and other harmful -trading practices. (See "Market
           -timing policies and procedures.")

           TO THE EXTENT THAT THE 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 the
           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 the 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

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

                                            Policies You Should Know About  | 41



            -  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 the fund's best
               interests or when the 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 any applicable sales charges or redemption fees);
              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; the 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 the fund's net assets, whichever is less

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

UNDERSTANDING DISTRIBUTIONS AND TAXES

           The fund intends to distribute to its shareholders virtually all of
           its net earnings. The 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. (The fund's
           earnings are separate from any gains or losses stemming from your
           own purchase and sale of shares.) The fund may not always pay a
           dividend or other distribution for a given period.

           THE FUND INTENDS TO PAY DIVIDENDS AND DISTRIBUTIONS to its
           shareholders annually in December and, if necessary, may do so at
           other times as well.

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.

42 | Understanding Distributions and Taxes



           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.

                                     Understanding Distributions and Taxes  | 43



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

GENERALLY TAXED AT LONG-TERM       GENERALLY TAXED AT ORDINARY
CAPITAL GAIN RATES:                INCOME RATES:
DISTRIBUTIONS FROM THE FUND
- gains from the sale of           -  gains from the sale of
  securities held (or treated as      securities held by the fund for
  held) by the fund for more          one year or less
  than 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

           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY THE FUND MAY BE
           SUBJECT TO FOREIGN WITHHOLDING TAXES. In that case, the fund's yield
           on those securities would generally be decreased. The fund may elect
           to pass through to its shareholders a credit or deduction for
           foreign taxes it has paid if at the end of its fiscal year more than
           50% of the value of the fund's total assets consists of stocks or
           securities of foreign corporations. In addition, any investments in
           foreign securities or foreign currencies may increase or accelerate
           the fund's recognition of ordinary income and may affect the timing
           or amount of the fund's distributions. If you invest in the fund
           through a taxable account, your after-tax return could be negatively
           impacted.

           Investments in certain debt obligations or other securities may
           cause the fund to recognize taxable income in excess of the cash
           generated by them. Thus, the 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 the 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 the fund from domestic and
           some foreign corporations. It does not include income from
           investments in

44 | Understanding Distributions and Taxes



           debt securities  or, generally, from real estate investment trusts.
           In addition, the 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 the fund's shares for the lower
           tax rates to apply. Because the fund will invest in both long and
           short positions in equity securities, it is anticipated that a
           smaller portion of the income dividends paid to you by the fund will
           be qualified dividend income eligible for taxation at long-term
           capital gain rates than if the fund invested in only long positions
           in equity securities.

           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 THE FUND PAYS A DIVIDEND, you'll be
           getting some of your investment back as a taxable dividend. You can
           avoid this by investing after the 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 the 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 the fund. For
           more information, see "Taxes" in the Statement of Additional
           Information.

                                     Understanding Distributions and Taxes  | 45



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 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.

46 | Appendix

color="#999999" width="100%" align="CENTER">

Value Opportunities Fund - Class A INITIAL HYPOTHETICAL ASSUMED RATE INVESTMENT: OF RETURN: $10,000 5% HYPOTHETICAL ANNUAL CUMULATIVE YEAR-END FUND RETURN AFTER BALANCE AFTER ANNUAL FEES EXPENSE FEES AND FEES AND AND RATIOS EXPENSES EXPENSES EXPENSES 1.52% -2.47% $ 9,752.99 $ 720.75 2.43% 0.04% $ 10,003.64 $ 240.04 2.43% 2.61% $ 10,260.74 $ 246.21 2.43% 5.24% $ 10,524.44 $ 252.54 2.43% 7.95% $ 10,794.91 $ 259.03 2.43% 10.72% $ 11,072.34 $ 265.69 2.43% 13.57% $ 11,356.90 $ 272.52 2.43% 16.49% $ 11,648.78 $ 279.52 2.43% 19.48% $ 11,948.15 $ 286.70 2.43% 22.55% $ 12,255.22 $ 294.07 $ 3,117.07 Value Opportunities Fund - Class C INITIAL HYPOTHETICAL ASSUMED RATE INVESTMENT: OF RETURN: $10,000 5% HYPOTHETICAL ANNUAL CUMULATIVE YEAR-END FUND RETURN AFTER BALANCE AFTER ANNUAL EXPENSE FEES AND FEES AND FEES AND RATIOS EXPENSES EXPENSES EXPENSES 2.27% 2.73% $ 10,273.00 $ 230.10 3.16% 4.62% $ 10,462.02 $ 327.61 3.16% 6.55% $ 10,654.52 $ 333.64 3.16% 8.51% $ 10,850.57 $ 339.78 3.16% 10.50% $ 11,050.22 $ 346.03 3.16% 12.54% $ 11,253.54 $ 352.40 3.16% 14.61% $ 11,460.61 $ 358.88 3.16% 16.71% $ 11,671.48 $ 365.49 3.16% 18.86% $ 11,886.24 $ 372.21 3.16% 21.05% $ 12,104.94 $ 379.06 $ 3,405.20 Appendix | 47



TO GET MORE INFORMATION

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

STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
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
the fund, call (800) 621-1048, or contact DWS Investments at the address listed
below. The 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 the 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 the fund,
including the 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.

DWS INVESTMENTS      SEC                     DISTRIBUTOR
-----------------    --------------------    ------------------------------
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

SEC FILE NUMBER:
DWS International Fund, Inc.  DWS International Value Opportunities Fund  811-0642

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



                                DECEMBER 1, 2008

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

                   DWS INTERNATIONAL VALUE OPPORTUNITIES 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



CONTENTS

HOW THE FUND WORKS
  4      The Fund's Main Investment
         Strategy
  5      The Main Risks of Investing in
         the Fund
  9      The Fund's Performance
         History
 11      How Much Investors Pay
 12      Other Policies and Secondary
         Risks
 13      Who Manages and Oversees
         the Fund
 17      Financial Highlights

HOW TO INVEST IN THE FUND
 19      How to Buy Class S Shares
 20      How to Exchange or Sell
         Class S Shares
 23      Policies You Should Know
         About
 34      Understanding Distributions
         and Taxes
 38      Appendix



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

Whether you are considering investing in the 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 the 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).



                                                    Class S
  ticker symbol                                     DNVSX
    fund number                                     2355

    DWS INTERNATIONAL VALUE OPPORTUNITIES FUND

            THE FUND'S MAIN INVESTMENT STRATEGY

            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,
            Australasia and Far East Index ("MSCI EAFE (Reg. TM) Index"). The
            fund may also invest a portion of its assets in companies based in
            the emerging markets of Latin America, the Middle East, Europe,
            Asia and Africa if the portfolio managers believe that their return
            potential more than compensates for the extra risks associated with
            these markets. While the portfolio managers have invested in
            emerging markets in the past, under normal market conditions they
            do not consider this a central element of the fund's strategy.
            Typically, the fund would not hold more than 20% of its net assets
            in emerging markets. In implementing this overall strategy, the
            fund may experience a high portfolio turnover rate. The fund's
            equity investments are mainly common stocks, but may also include
            other types of equities such as preferred stocks or convertible
            securities. 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.

            The fund invests for the long term. The portfolio managers employ a
            value strategy and invest in companies that they believe are
            undervalued. These are typically companies that have been
            historically sound but are temporarily out of favor. The fund
            intends to invest primarily in companies whose market
            capitalizations fall within the normal range of the MSCI EAFE (Reg.
            TM) Index.

4 | DWS International Value Opportunities Fund



            The portfolio managers track several thousand companies to arrive
            at between 50 to 70 stocks the fund normally holds. The managers
            use a variety of quantitative screens to compare a company's stock
            price to its book value, cash flow and dividend yield, and analyze
            individual companies to identify those that are financially sound
            and appear to have strong potential for long-term growth.

            After narrowing the investment universe through the use of
            valuation screens, the portfolio managers' use of fundamental
            research tools lies at the heart of the investment process. The
            portfolio managers' process brings an added dimension to this
            fundamental research by drawing on the insight of experts from a
            range of financial disciplines - regional stock market specialists,
            global industry specialists, economists and quantitative analysts.
            They challenge, refine and amplify each other's ideas. Their close
            collaboration is a critical element of the portfolio managers'
            investment process.

            OTHER INVESTMENTS. The fund is permitted, but not required, to use
            various types of derivatives (contracts whose value is based on,
            for example, indices, currencies or securities). Derivatives may be
            used for hedging and for risk management or for non-hedging
            purposes to seek to enhance potential gains. The fund may use
            derivatives in circumstances where portfolio management believes
            they offer an economical means of gaining exposure to a particular
            asset class or to keep cash on hand to meet shareholder redemptions
            or other needs while maintaining exposure to the market.

            SECURITIES LENDING. The fund may lend its investment securities in
            an amount up to 33 1/3% of its total assets to approved
            institutional borrowers who need to borrow securities in order to
            complete certain transactions.

            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.

            STOCK MARKET RISK. As with most stock funds, an important factor
            with this fund is how stock markets perform. To the extent that the
            fund invests in a particular geographic region, the fund's
            performance may be proportionately affected by that region's
            general performance. When stock prices fall, you should expect the
            value of your investment to fall as well.

                                 DWS International Value Opportunities Fund  | 5



            Because a stock represents ownership in its issuer, stock prices
            can be hurt by poor management, shrinking product demand and other
            business risks. These 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 and the fund may not be able to get
            attractive prices for them.

            SECURITY SELECTION RISK. A risk that pervades all investing is the
            risk that the securities in the fund's portfolio may decline in
            value.

            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.

THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

The fund is designed for investors who are seeking capital appreciation and are
willing to accept the risks of investing in the stocks of foreign companies.

6 | DWS International Value Opportunities Fund



            -  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.

            EMERGING MARKET RISK. All of the risks of investing in foreign
            securities are increased in connection with investments in emerging
            markets securities. In addition, profound social changes and
            business practices that depart from norms in developed countries'
            economies have hindered the orderly growth of emerging economies
            and their markets in the past and have caused instability. High
            levels of debt tend to make emerging economies heavily reliant on
            foreign capital and vulnerable to capital flight. Countries with
            emerging economies are also more likely to experience high levels
            of inflation, deflation or currency devaluation, which could also
            hurt their economies and securities markets. For these and other
            reasons, investments in emerging markets are often considered
            speculative.

            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

                                 DWS International Value Opportunities Fund  | 7



            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.

            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.

            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.

8 | DWS International Value Opportunities Fund



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 International Value Opportunities Fund

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

15.67
2007

2008 TOTAL RETURN AS OF SEPTEMBER 30: -29.36%
FOR THE PERIOD INCLUDED IN THE BAR CHART:
BEST QUARTER: 6.91%, Q2 2007                  WORST QUARTER: 1.61%, Q4 2007

                                 DWS International Value Opportunities Fund  | 9



AVERAGE ANNUAL TOTAL RETURNS (%) AS OF 12/31/2007 (Fund returns include the
effects of maximum sales load.)

                                              1 YEAR       SINCE INCEPTION*
 CLASS S
   Return before Taxes                          15.67            21.47
   Return after Taxes on Distributions          14.95            20.78
   Return after Taxes on Distributions
   and Sale of Fund Shares                      10.60            18.14
 MSCI EAFE INDEX (reflects no
 deductions for fees, expenses or
 taxes)                                         11.17            17.58

 *   Inception date for the fund was July 5, 2006. Index comparison begins on
     June 30, 2006.

     Total returns would have been lower if operating expenses hadn't been
reduced.

 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.

10 | DWS International Value Opportunities Fund



HOW MUCH INVESTORS PAY

The table below describes the fees and expenses that you may pay if you buy and
hold fund shares. This information doesn't include any fees that may be charged
by your financial advisor.

FEE TABLE                                        CLASS S
 SHAREHOLDER FEES, paid directly from your investment
_____________________________________________________________________
 Redemption/Exchange fee on shares
 owned less than 15 days (as % of
 redemption proceeds)1                             2.00%

 ANNUAL OPERATING EXPENSES, deducted from fund assets
_____________________________________________________________________
 Management Fee                                    0.80%
 Distribution/Service (12b-1) Fee                  None
 Other Expenses2                                   1.47
 TOTAL ANNUAL OPERATING EXPENSES                   2.27
 Less Fee Waiver/Expense
 Reimbursement                                     1.00
 NET ANNUAL OPERATING EXPENSES3                    1.27

1   This fee is charged on all applicable redemptions or exchanges. Please see
   "Policies You Should Know About - Policies about transactions" for further
   information.

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

3   Through November 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 1.27% for Class S shares, excluding certain expenses
   such as extraordinary expenses, taxes, brokerage and interest.

Based on the costs above (including one year of capped expenses in each
period), this example helps you compare the fund's Class S shares expenses to
those of other mutual funds. This example assumes the expenses above remain the
same and that you invested $10,000, earned 5% annual returns, reinvested all
dividends and distributions and sold your shares at the end of each period.
This is only an example; actual expenses will be different.

EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
 Class S shares        $129         $613       $1,124       $2,528

                                DWS International Value Opportunities Fund  | 11



OTHER POLICIES AND SECONDARY RISKS

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

           -  Although major changes tend to be infrequent, the fund's Board
              could change the fund's investment objective without seeking
              shareholder approval. However, the Board will provide
              shareholders with at least 60 days' notice prior to making any
              changes to the fund's 80% investment policy as described herein.

           -  As a temporary defensive measure, the fund could shift up to 100%
              of assets into investments such as money market securities or
              other short-term securities that offer comparable levels of risk.
              This could prevent losses, but, while engaged in a temporary
              defensive position, the 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.

           -  The fund 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.

           -  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.

           Secondary risks

           CREDIT RISK. The fund will be subject to the risk that the
           creditworthiness of a bond's issuer may decline, causing the value
           of the bond to decline. In addition, an issuer may not be able to
           make timely payments on the interest and principal on the bonds it
           has issued. In some cases, bonds may decline in credit quality or go
           into default.

12 | Other Policies and Secondary Risks



           For more information

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

           If you want more information on the 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 the fund will achieve
           its objective.

           A complete list of the 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 the 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. The fund's
           Statement of Additional Information includes a description of the
           fund's policies and procedures with respect to the disclosure of the
           fund's portfolio holdings.

WHO MANAGES AND OVERSEES THE FUND

           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 the fund. Under the oversight
           of the Board, the Advisor, or the subadvisor, makes investment
           decisions, buys and sells securities for the 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.

                                         Who Manages and Oversees the Fund  | 13



           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 receives a management fee from the fund.
           Below is the actual rate paid by the fund for the most recent fiscal
           year, as a percentage of the fund's average daily net assets.

FUND NAME                                                    FEE PAID
DWS International Value Opportunities Fund                      0.07%*

           *   Reflects the effects of expense limitations and/or fee waivers
then in effect.

           As compensation for its services, DIMA is entitled to receive from
           the fund a fee (based upon the fund's average daily net assets) in
           accordance with the following schedule: 0.800% on the first $500
           million; 0.780% on the next $500 million; 0.760% on the next $1
           billion; and 0.740% thereafter.

           A discussion regarding the basis for the Board's approval of the
           fund's investment management agreement and subadvisory agreement, is
           contained in the shareholder report for the semiannual period ended
           February 29 (see "Shareholder reports" on the back cover).

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

14 | Who Manages and Oversees the Fund



           Subadvisor for DWS International Value Opportunities Fund

           The subadvisor for DWS International Value Opportunities Fund is
           Deutsche Asset Management International GmbH ("DeAMi"), Mainzer
           Landstrasse 178-190, Frankfurt am Main, Germany. DeAMi renders
           investment advisory and management services to the fund. DeAMi is an
           investment advisor registered with the Securities and Exchange
           Commission and currently manages over $60 billion in assets, which
           is primarily comprised of institutional accounts and investment
           companies. DeAMi is a subsidiary of Deutsche Bank AG. DIMA
           compensates DeAMi out of the management fee it receives from the
           fund.

                                         Who Manages and Oversees the Fund  | 15



Portfolio management

The fund is managed by a team of investment professionals who collaborate to
develop and implement the fund's investment strategy. Each portfolio manager on
the team has authority over all aspects of the 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 the fund.

Klaus Kaldemorgen
Managing Director of Deutsche Asset Management and Lead Portfolio Manager of
the fund.
- Joined Deutsche Asset Management in 1982 and the fund in 2006.
- Head of Equities: Germany; senior portfolio manager of international
   equities; Managing Director of DWS Investment GmbH: Frankfurt.
- Master's degree in economics, Johannes-Gutenberg University, Mainz.

Carmen Weber, CFA
Director of Deutsche Asset Management and Portfolio Manager of the fund.
- Joined Deutsche Asset Management and the fund in 2006.
- Senior portfolio manager for Global Equities: Frankfurt.
- Prior to that, Head of Growth and Equity Funds at Metzler.
- Over 15 years of investment industry experience.
- BA, University of Siegen, Germany.

The fund's Statement of Additional Information provides additional information
about a portfolio manager's investments in the fund, a description of the
portfolio management compensation structure and information regarding other
accounts managed.

16 | Who Manages and Oversees the Fund



FINANCIAL HIGHLIGHTS

The financial highlights are designed to help you understand recent financial
performance. The figures in the first part of the table are for a single share.
The total return figures represent the percentage that an investor in the 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 the
fund's financial statements, is included in the fund's annual report (see
"Shareholder reports" on the back cover).

DWS International Value Opportunities Fund - Class S

YEARS ENDED AUGUST 31,                                   2008             2007           2006 a
SELECTED PER SHARE DATA
-----------------------------------------------------------------------------------           -
NET ASSET VALUE, BEGINNING OF PERIOD                  $  12.27         $  10.25         $ 10.00
-------------------------------------------------     --------         --------         -------
Income (loss) from investment operations:
  Net investment income (loss)b                            .17              .21             .03
_________________________________________________     ________         ________         _______
  Net realized and unrealized gain (loss)               ( 1.41)            1.94             .22
-------------------------------------------------     --------         --------         -------
  TOTAL FROM INVESTMENT OPERATIONS                      ( 1.24)            2.15             .25
_________________________________________________     ________         ________         _______
Less distributions from:
  Net investment income                                 (  .11)          (  .13)              -
_________________________________________________     ________         ________         _______
  Net realized gains                                    (  .25)               -               -
-------------------------------------------------     --------         --------         -------
  TOTAL DISTRIBUTIONS                                   (  .36)          (  .13)              -
_________________________________________________     ________         ________         _______
  Redemption fees                                          .00***           .00***            -
_________________________________________________     ________         ________         _______
NET ASSET VALUE, END OF PERIOD                        $  10.67         $  12.27         $ 10.25
-------------------------------------------------     --------         --------         -------
Total Return (%)c                                       (10.62)           21.07            2.50**
-------------------------------------------------     --------         --------         -------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------     -------
Net assets, end of period ($ millions)                       4                4               1
_________________________________________________     ________         ________         _______
Ratio of expenses before expense reductions (%)           2.27             4.33            9.44*
_________________________________________________     ________         ________         _______
Ratio of expenses after expense reductions (%)         1.37d            1.85d              1.31*
_________________________________________________     ________         ________         _______
Ratio of net investment income (loss) (%)                 1.41             1.82            1.99*
_________________________________________________     ________         ________         _______
Portfolio turnover rate (%)                                197              127               7**
-------------------------------------------------     --------         --------         -------

a   For the period from July 5, 2006 (commencement of operations) to August 31,
2006.

b   Based on average shares outstanding during the period.

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

d   Ratio includes interest expense incurred on foreign cash overdrafts.
   Interest income earned on domestic cash balances is included in income from
   investment operations. The ratio of expenses after expense reductions
   excluding interest expense was 1.32% and 1.31% for the years ended August
   31, 2008 and 2007, respectively.

*   Annualized

**   Not annualized

***   Amount is less than $.005.

                                                      Financial Highlights  | 17



HOW TO INVEST IN THE FUND

THE FOLLOWING PAGES TELL YOU HOW TO INVEST IN THE 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 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.

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.



How to BUY Class S Shares


 FIRST INVESTMENT                              ADDITIONAL INVESTMENTS
 $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

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

                                                 How to Buy Class S Shares  | 19



How to EXCHANGE or SELL Class S Shares


 EXCHANGING INTO ANOTHER FUND                    SELLING SHARES
                                                 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

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

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

20 | How to Sell or Exchange Class S Shares



           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 the 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 the fund, any record keeping/sub-transfer
           agency/networking fees payable by the 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 the 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 the 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.

                                    How to Sell or Exchange Class S Shares  | 21



           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 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 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 the 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 the fund. Additional information regarding these
           revenue sharing payments is included in the 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 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

22 | How to Sell or Exchange Class S Shares



           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.

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 the fund. Please note that
           a financial advisor may charge fees separate from those charged by
           the fund and may be compensated by the 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

           THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
           is open. The 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.

                                            Policies You Should Know About  | 23



           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 the fund, then we may reject your application and order.

           The 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 the fund, after a reasonable effort to do so, you
           will receive written notification.

           With certain limited exceptions, only US residents may invest in the
           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

24 | Policies You Should Know About



           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. The 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); $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.

                                            Policies You Should Know About  | 25



           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 the 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 the 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 the fund (e.g.,
           "time zone arbitrage"). The 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.

           Pursuant to its policies, the fund will impose a 2% redemption fee
           on fund shares held for less than a specified holding period
           (subject to certain exceptions discussed below under "Redemption
           fees"). The fund also reserves the right to reject or cancel a
           purchase or exchange order for any reason without prior notice. For
           example, the 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 the fund. The 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. The fund may take other trading activity into account if the
           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. The fund has sole discretion whether to remove a block
           from a shareholder's

26 | Policies You Should Know About



           account. The rights of a shareholder to redeem shares of a DWS Fund
           are not affected by the four roundtrip transaction limitation, but
           all redemptions remain subject to the fund's redemption fee policy
           (see "Redemption fees" described below).

           The 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 the fund, such as, but not limited to,
           systematic transactions, required minimum retirement distributions,
           transactions initiated by the fund or administrator and transactions
           by certain qualified funds-of-funds.

           In certain circumstances where shareholders hold shares of the 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 the 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 the fund that provide a substantially similar level of
           protection for the 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 the 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 the fund. (See "How the fund
           calculates share price.")

                                            Policies You Should Know About  | 27



           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 the fund's shares) short-term and/or excessive trading of fund
           shares could adversely affect long-term shareholders in the fund. If
           short-term or excessive trading is identified, the Advisor will take
           appropriate action.

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

           REDEMPTION FEES. The fund imposes a redemption fee of 2% of the
           total redemption amount (calculated at net asset value) on all fund
           shares redeemed or exchanged within 15 days of buying them (either
           by purchase or exchange). The redemption fee is paid directly to the
           fund and is designed to encourage long-term investment and to offset
           transaction and other costs associated with short-term or excessive
           trading. For purposes of determining whether the redemption fee
           applies, shares held the longest time will be treated as being
           redeemed first and shares held the shortest time will be treated as
           being redeemed last.

           The redemption fee is applicable to fund shares purchased either
           directly or through a financial intermediary, such as a
           broker-dealer. Transactions through financial intermediaries
           typically are placed with the fund on an omnibus basis and include
           both purchase and sale transactions placed on behalf of multiple
           investors. These purchase and sale transactions are generally netted
           against one another and placed on an aggregate basis; consequently
           the identities of the individuals on whose behalf the transactions
           are placed generally are not known to the fund. For this reason, the
           fund has undertaken to notify financial intermediaries of their
           obligation to assess the redemption fee on

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.

28 | Policies You Should Know About



           customer accounts and to collect and remit the proceeds to the fund.
           However, due to operational requirements, the intermediaries'
           methods for tracking and calculating the fee may be inadequate or
           differ in some respects from the fund's.

           The redemption fee will not be charged in connection with the
           following exchange or redemption transactions: (i) transactions on
           behalf of participants in certain research wrap programs; (ii)
           transactions on behalf of a shareholder to return any excess IRA
           contributions to the shareholder; (iii) transactions on behalf of a
           shareholder to effect a required minimum distribution on an IRA;
           (iv) transactions on behalf of any mutual fund advised by the
           Advisor and its affiliates (e.g., "funds of funds") or, in the case
           of a master/feeder relationship, redemptions by the feeder fund from
           the master portfolio; (v) transactions on behalf of certain
           unaffiliated mutual funds operating as funds of funds; (vi)
           transactions following death or disability of any registered
           shareholder, beneficial owner or grantor of a living trust with
           respect to shares purchased before death or disability; (vii)
           transactions involving hardship of any registered shareholder;
           (viii) systematic transactions with pre-defined trade dates for
           purchases, exchanges or redemptions, such as automatic account
           rebalancing, or loan origination and repayments; (ix) transactions
           involving shares purchased through the reinvestment of dividends or
           other distributions; (x) transactions involving shares transferred
           from another account in the same fund or converted from another
           class of the same fund (the redemption fee period will carry over to
           the acquired shares); (xi) transactions initiated by the fund or
           administrator (e.g., redemptions for not meeting account minimums,
           to pay account fees funded by share redemptions, or in the event of
           the liquidation or merger of the fund); or (xii) transactions in
           cases when there are legal or contractual limitations or
           restrictions on the imposition of the redemption fee (as determined
           by the fund or its agents in their sole discretion). It is the
           policy of the DWS funds to permit approved fund platform providers
           to execute transactions with the funds without the imposition of a
           redemption fee if such providers have implemented alternative
           measures that are determined by the Advisor to provide controls on
           short-term and excessive trading that are comparable to the DWS
           funds' policies.

                                            Policies You Should Know About  | 29



           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 FUND DOES NOT ISSUE SHARE CERTIFICATES.

            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. The fund can only send wires of $1,000 or more and accept
            wires of $50 or more.

           THE 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. The 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

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.

30 | Policies You Should Know About



           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.

           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. The 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

                                            Policies You Should Know About  | 31



           restricted; 3) an emergency exists which makes the disposal of
           securities owned by the fund or the fair determination of the value
           of the 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 the 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 the fund calculates share price

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

            TOTAL ASSETS - TOTAL LIABILITIES
           -----------------------------------------    =    NAV
               TOTAL NUMBER OF SHARES OUTSTANDING

           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.

           THE FUND CHARGES A REDEMPTION FEE EQUAL TO 2.00% of the value of
           shares redeemed or exchanged within 15 days of purchase. Please see
           "Policies about transactions - Redemption fees" for further
           information.

           WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN
           INDEPENDENT PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE.
           However, we may use methods approved by the 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 the 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, the 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

32 | Policies You Should Know About



           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 the -fund's use of fair value
           pricing. This is intended to reduce the fund's exposure to "time
           zone arbitrage" and other harmful -trading practices. (See "Market
           -timing policies and procedures.")

           TO THE EXTENT THAT THE 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 the
           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 the 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

           -  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 the fund's best
              interests or when the fund is requested or compelled to do so by
              governmental authority or by applicable law

                                            Policies You Should Know About  | 33



            -  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 applicable redemption fee, 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; the 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 the fund's net assets, whichever is less

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

UNDERSTANDING DISTRIBUTIONS AND TAXES

           The fund intends to distribute to its shareholders virtually all of
           its net earnings. The 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. (The fund's
           earnings are separate from any gains or losses stemming from your
           own purchase and sale of shares.) The fund may not always pay a
           dividend or other distribution for a given period.

            THE FUND INTENDS TO PAY DIVIDENDS AND DISTRIBUTIONS to its
            shareholders annually in December and, if necessary, 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.

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.

34 | Understanding Distributions and Taxes



           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.

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

GENERALLY TAXED AT LONG-TERM        GENERALLY TAXED AT ORDINARY
CAPITAL GAIN RATES:                 INCOME RATES:
DISTRIBUTIONS FROM THE FUND
- gains from the sale of            -  gains from the sale of
  securities held (or treated as       securities held by the fund for
  held) by the fund for more           one year or less
  than 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

           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY THE FUND MAY BE
           SUBJECT TO FOREIGN WITHHOLDING TAXES. In that case, the fund's yield
           on those securities would generally be decreased. The fund may elect
           to pass through to its shareholders a credit or deduction for
           foreign taxes it has paid if

                                     Understanding Distributions and Taxes  | 35



           at the end of its fiscal year more than 50% of the value of the
           fund's total assets consists of stocks or securities of foreign
           corporations. In addition, any investments in foreign securities or
           foreign currencies may increase or accelerate the fund's recognition
           of ordinary income and may affect the timing or amount of the fund's
           distributions. If you invest in the fund through a taxable account,
           your after-tax return could be negatively impacted.

           Investments in certain debt obligations or other securities may
           cause the fund to recognize taxable income in excess of the cash
           generated by them. Thus, the 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 the 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 the 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, the 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 the fund's
           shares for the lower tax rates to apply. Because the fund will
           invest in both long and short positions in equity securities, it is
           anticipated that a smaller portion of the income dividends paid to
           you by the fund will be qualified dividend income eligible for
           taxation at long-term capital gain rates than if the fund invested
           in only long positions in equity securities.

           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%.

36 | Understanding Distributions and Taxes



           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 THE FUND PAYS A DIVIDEND, you'll be
           getting some of your investment back as a taxable dividend. You can
           avoid this by investing after the 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 the 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 the fund. For
           more information, see "Taxes" in the Statement of Additional
           Information.

                                     Understanding Distributions and Taxes  | 37



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.

38 | Appendix



DWS International Value Opportunities Fund - Class S

              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
   1            5.00%        1.27%              3.73%       $ 10,373.00        $   129.37
   2           10.25%        2.27%              6.56%       $ 10,656.18        $   238.68
   3           15.76%        2.27%              9.47%       $ 10,947.10        $   245.20
   4           21.55%        2.27%             12.46%       $ 11,245.95        $   251.89
   5           27.63%        2.27%             15.53%       $ 11,552.97        $   258.77
   6           34.01%        2.27%             18.68%       $ 11,868.36        $   265.83
   7           40.71%        2.27%             21.92%       $ 12,192.37        $   273.09
   8           47.75%        2.27%             25.25%       $ 12,525.22        $   280.54
   9           55.13%        2.27%             28.67%       $ 12,867.16        $   288.20
  10           62.89%        2.27%             32.18%       $ 13,218.43        $   296.07
  TOTAL                                                                        $ 2,527.64

                                                                  Appendix  | 39



TO GET MORE INFORMATION

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

STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
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
the fund, call (800) 728-3337, or contact DWS Investments at the address listed
below. The 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 the 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 the fund,
including the 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.

DWS INVESTMENTS      SEC                     DISTRIBUTOR
-----------------    --------------------    ------------------------------
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

SEC FILE NUMBER:

DWS International Fund, Inc.   DWS International Value Opportunities Fund   811-0642

(12/01/08) 355-2                 [RECYCLE GRAPHIC APPEARS HERE]
                                                                       [Logo]DWS
                                                                      INVESTMENT
                                                             Deutsche Bank Group



               SUPPLEMENT TO THE CURRENTLY EFFECTIVE PROSPECTUSES

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

                             DWS Japan Equity Fund

Effective on or about April 1, 2009, Masaaki Kadota will replace Kenji Chihara
as a portfolio manager for the above-listed fund. The following biographical
information for Mr. Kadota replaces that for Mr. Chihara in the "Portfolio
management" section of the fund's prospectuses:

  Masaaki Kadota Vice President of Deutsche Asset Management (Japan) Limited and
  Portfolio Manager of the fund.
    oPortfolio manager for Global ex-Japan Equity: Tokyo, since 2002.
    oJoined Deutsche Asset Management in 2001 and the fund in 2009.
    oPrior to that, worked for 5 years at J.P.Morgan Securities and STB Asset
     Management.
    oBachelor's degree in Political Science, Waseda University; Master's in
     Finance degree from London Business School, University of London; MSc in
     Investment Management, Sir John Cass Business School, City University,
     London.

               Please Retain This Supplement for Future Reference

                                                                    [Logo]DWS
                                                                   INVESTMENTS
                                                           Deutsche Bank Group

March 27, 2009
DJEF-3601



               SUPPLEMENT TO THE CURRENTLY EFFECTIVE PROSPECTUSES:

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

                              DWS Japan Equity Fund

The Board of each fund noted below has given preliminary approval to a proposal
by Deutsche Investment Management Americas Inc. ("DIMA"), the advisor of each
such fund, to effect the following fund merger:

--------------------------------------------------------------------------------
Acquired Fund                      Acquiring Fund
--------------------------------------------------------------------------------
DWS Japan Equity Fund              DWS International Value Opportunities Fund
--------------------------------------------------------------------------------

Completion of this merger is subject to, among other things: (i) final approval
by the Board of each fund, and (ii) approval by shareholders of the Acquired
Fund. Prior to the shareholder meeting, shareholders of record on the record
date of the Acquired Fund will receive (i) a Proxy Statement/Prospectus
describing in detail the proposed merger and the Board's considerations in
recommending that shareholders approve the merger, (ii) a proxy card and
instructions on how to submit a vote, and (iii) a Prospectus for the Acquiring
Fund.

If the proposed merger is approved by shareholders, the Acquired Fund will be
closed to new investors except as described below. Unless you fit into one of
the investor eligibility categories described below, you may not invest in the
fund following shareholder approval of the merger.

You may continue to purchase fund shares following shareholder approval through
your existing fund account and reinvest dividends and capital gains if, as of
4:00 p.m. Eastern time on the shareholder meeting date, or such later date as
shareholder approval may occur, you are:

o  a current fund shareholder; or

o  a participant in any group retirement, employee stock bonus, pension or
   profit sharing plan that offers the fund as an investment option.

                                                                     [Logo]DWS
                                                                   INVESTMENTS
                                                           Deutsche Bank Group
January 23, 2009
DJEF-3600



New accounts may be opened for:

o  transfers of shares from existing accounts in this fund (including
   IRA rollovers);

o  officers, Trustees and Directors of the DWS Funds, and full-time employees
   and their family members of DIMA and its affiliates;

o  any group retirement, employee stock bonus, pension or profit sharing plan
   using the Flex subaccount recordkeeping system made available through ADP
   Inc. under an alliance with DWS Investments Distributors, Inc. ("DIDI")
   ("Flex Plans");

o  any group retirement, employee stock bonus, pension or profit sharing plan,
   other than a Flex Plan, that includes the fund as an investment option as of
   the shareholder meeting date;

o  purchases through any comprehensive or "wrap" fee program or other fee based
   program; or

o  accounts managed by DIMA, any advisory products offered by DIMA or DIDI and
   for the Portfolios of DWS Allocation Series or other fund of funds managed by
   DIMA or its affiliates.

Except as otherwise noted, these restrictions apply to investments made directly
with DIDI, the fund's principal underwriter, or through an intermediary
relationship with a financial services firm established with respect to the DWS
Funds as of the shareholder meeting date. Institutions that maintain omnibus
account arrangements are not allowed to open new sub-accounts for new investors,
unless the investor is one of the types listed above. Once an account is closed,
new investments will not be accepted unless you satisfy one of the investor
eligibility categories listed above.

Exchanges into the Acquired Fund will not be permitted unless the exchange is
being made into an existing fund account.

DIDI may, at its discretion, require appropriate documentation that shows an
investor is eligible to purchase Acquired Fund shares.

               Please Retain This Supplement for Future Reference

                                       2
January 23, 2009
DJEF-3600



                                DECEMBER 1, 2008

                                   PROSPECTUS
                              ------------------
                               CLASSES A, B AND C

                             DWS JAPAN EQUITY 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



CONTENTS

HOW THE FUND WORKS
  4      The Fund's Main Investment
         Strategy
  5      The Main Risks of Investing in
         the Fund
  9      The Fund's Performance
         History
 11      How Much Investors Pay
 13      Other Policies and Secondary
         Risks
 14      Who Manages and Oversees
         the Fund
 18      Financial Highlights

HOW TO INVEST IN THE FUND
 23      Choosing a Share Class
 29      How to Buy Class A, B and C
         Shares
 30      How to Exchange or Sell
         Class A, B and C Shares
 33      Policies You Should Know
         About
 45      Understanding Distributions
         and Taxes
 49      Appendix



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

Whether you are considering investing in the 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).



                            Class A    Class B    Class C
  ticker symbol             FJEAX      FJEBX      FJECX
    fund number             460        660        760

    DWS JAPAN EQUITY FUND

            THE FUND'S MAIN INVESTMENT STRATEGY

            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. The fund's
            equity investments are mainly common stocks, but may also include
            preferred stocks and other securities with equity characteristics,
            such as convertible securities and warrants.

            In choosing stocks, portfolio management relies most heavily on the
            following analytical disciplines:

            -  BOTTOM-UP RESEARCH. Portfolio management looks for individual
               companies with a history of above-average growth, strong
               competitive positioning, attractive prices relative to potential
               growth, sound financial strength and effective management, among
               other factors.

            -  GROWTH ORIENTATION. Portfolio management generally looks for
               companies that it believes have above-average potential for
               sustainable growth of revenue or earnings and whose market value
               appears reasonable in light of their business prospects.

            Portfolio management will normally sell a stock when it believes
            the issuer's fundamental factors have changed, other investments
            offer better opportunities or when adjusting the fund's emphasis on
            a given industry.

4 | DWS Japan Equity Fund



            OTHER INVESTMENTS. The fund is permitted, but not required, to use
            various types of derivatives (contracts whose value is based on,
            for example, indices, currencies or securities). Derivatives may be
            used for hedging and for risk management or for non-hedging
            purposes to seek to enhance potential gains. The fund may use
            derivatives in circumstances where portfolio management believes
            they offer an economical means of gaining exposure to a particular
            asset class or to keep cash on hand to meet shareholder redemptions
            or other needs while maintaining exposure to the market.

            In particular, the fund may use futures and options, including
            sales of covered put and call options.

            SECURITIES LENDING. The fund may lend its investment securities in
            an amount up to 33 1/3% of its total assets to approved
            institutional borrowers who need to borrow securities in order to
            complete certain transactions.

            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.

            STOCK MARKET RISK. As with most stock funds, the most important
            factor with this fund is how stock markets perform - in this case,
            the Japanese market. When Japanese stock prices fall, you should
            expect the value of your investment to fall as well. To the extent
            that the fund invests in smaller-sized companies, it will be more
            susceptible to these risks as smaller-sized companies have limited
            business lines and financial resources, making them especially
            vulnerable to business risks and economic downturns.

            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.

THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

This fund is designed for individuals who are seeking high capital appreciation
and are willing to accept the risks of investing in the stocks of companies in a
particular foreign country or region.

                                                      DWS Japan Equity Fund  | 5



            -  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.

6 | DWS Japan Equity Fund



            INVESTMENT FOCUS RISK. Focusing on a single country involves
            increased currency, political, regulatory and other risks. Because
            the fund concentrates its investments in Japanese equity
            securities, market swings in Japan will have a greater effect on
            fund performance than they would in a more geographically
            diversified equity fund.

            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.

            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.

            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.

                                                      DWS Japan Equity Fund  | 7



            Other factors that could affect performance include:

            -  portfolio management could be wrong in the analysis of foreign
               governments, industries, companies, economic trends, the
               relative attractiveness of different sizes of stocks,
               geographical trends or other matters.

            -  derivatives could produce disproportionate losses due to a
               variety of factors, including the failure of the counterparty to
               meet its obligations or unexpected price or interest rate
               movements.

8 | DWS Japan Equity Fund

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.

In the table, the performance figures for Class B and Class C prior to their
inception (August 10, 1998 for Class B and May 31, 2000 for Class C) are based
on the historical performance of the fund's original share class (Class A)
adjusted to reflect the higher gross total annual operating expenses of Class B
and Class C and the current applicable sales charges for Class B and Class C
shares.

DWS Japan Equity 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.)

4.70 169.29 -34.50 -24.60 -8.62 38.00 9.99 34.14 2.14 -8.04
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

2008 TOTAL RETURN AS OF SEPTEMBER 30: -26.86%
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 33.98%, Q4 1999 WORST QUARTER: -21.35%, Q3 2001

DWS Japan Equity Fund | 9



AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007 (Fund returns include the
effects of maximum sales load.)

                                             1 YEAR       5 YEARS      10 YEARS
 CLASS A
   Return before Taxes                       -13.33        12.51         8.66
   Return after Taxes on Distributions       -15.58        10.48         5.28
   Return after Taxes on Distributions
   and Sale of Fund Shares                    -6.18*       10.63*        6.03*
 CLASS B (Return before Taxes)               -11.15        12.86         8.34
 CLASS C (Return before Taxes)                -8.73        13.03         8.50
 TOKYO STOCK EXCHANGE STOCK PRICE
 INDEX ("TOPIX") (reflects no
 deductions for fees, expenses or
 taxes)                                       -5.19        14.51         4.92

 *   Return after Taxes on Distributions and Sale of Fund Shares is higher than
     other return figures 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 operating expenses hadn't been
 reduced.

 THE TOKYO STOCK EXCHANGE STOCK PRICE INDEX ("TOPIX") is an unmanaged
 capitalization-weighted measure (adjusted in US dollars) of all shares listed
 on the first section of the Tokyo Stock Exchange.

--------------------------------------------------------------------------------
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.

10 | DWS Japan Equity Fund



HOW MUCH INVESTORS PAY

This table describes the fees and expenses that you may pay if you buy and hold
fund shares. This information doesn't include any fees that may be charged by
your financial advisor.

FEE TABLE                                        CLASS A         CLASS B       CLASS 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%
 Redemption/Exchange fee, on shares
 owned less than 15 days (as % of
 redemption proceeds)3                            2.00             2.00          2.00

 ANNUAL OPERATING EXPENSES, deducted from fund assets
___________________________________________________________________________________________
 Management Fee                                   0.85  %          0.85%         0.85%
 Distribution/Service (12b-1) Fee                 0.24             1.00          1.00
 Other Expenses4                                  0.65             0.76          0.70
 TOTAL ANNUAL OPERATING EXPENSES                  1.74             2.61          2.55

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   This fee is charged on all applicable redemptions or exchanges. Please see
   "Policies You Should Know About - Policies about transactions" for further
   information.

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

                                                     DWS Japan Equity Fund  | 11



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.

EXAMPLE                1 YEAR      3 YEARS      5 YEARS      10 YEARS
 EXPENSES, assuming you sold your shares at the end of each period
_________________________________________________________________________
 Class A shares         $742       $1,091       $1,464       $2,509
 Class B shares*         664        1,111        1,585        2,538
 Class C shares          358          794        1,355        2,885

 EXPENSES, assuming you kept your shares
_________________________________________________________________________
 Class A shares         $742       $1,091       $1,464       $2,509
 Class B shares*         264          811        1,385        2,538
 Class C shares          258          794        1,355        2,885

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

12 | DWS Japan Equity Fund



OTHER POLICIES AND SECONDARY RISKS

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

           -  Although major changes tend to be infrequent, the fund's Board
              could change the fund's investment objective without seeking
              shareholder approval. However, the Board will provide
              shareholders with at least 60 days' notice prior to making any
              changes to the fund's 80% investment policy as described herein.

           -  As a temporary defensive measure, the fund could shift up to 100%
              of assets into investments such as money market securities. This
              could prevent losses, but, while engaged in a temporary defensive
              position, the 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.

           -  The fund 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.

           -  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.

           Secondary risks

           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,

                                        Other Policies and Secondary Risks  | 13



           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.

           For more information

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

           If you want more information on the 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 the fund will achieve
           its objective.

           A complete list of the 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 the 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. The fund's
           Statement of Additional Information includes a description of the
           fund's policies and procedures with respect to the disclosure of the
           fund's portfolio holdings.

WHO MANAGES AND OVERSEES THE FUND

           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 the fund. Under the oversight
           of the Board, the Advisor, or the subadvisor, makes investment
           decisions, buys and sells securities for the 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.

14 | Who Manages and Oversees the Fund



           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 receives a management fee from the fund.
           Below is the actual rate paid by the fund for the most recent fiscal
           year, as a percentage of the fund's average daily net assets.

FUND NAME                              FEE PAID
  DWS Japan Equity Fund                  0.85%

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

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

                                         Who Manages and Oversees the Fund  | 15



           Subadvisor

           Deutsche Asset Management (Japan) Limited ("DeAMJ"), Sanno Park
           Tower, 2-11-1 Nagatacho, Chiyoda-ku, Tokyo, Japan 100-6173, an
           affiliate of DIMA, is the subadvisor for the fund. Under DIMA's
           oversight, DeAMJ renders daily investment advisory and management
           services, including services related to foreign securities, foreign
           currency transactions and related investments with regard to the
           fund's portfolio. The Advisor compensates DeAMJ out of the
           management fee it receives from the fund.

16 | Who Manages and Oversees the Fund



Portfolio management

The following person handles the day-to-day management of the fund.

Kenji Chihara
Director of Deutsche Asset Management (Japan) Limited and Portfolio Manager of
the fund.
- Joined Deutsche Trust Bank in 1997 and transferred to Deutsche Asset
   Management (Japan) Limited in October 2005.
- Joined the fund in 2005.
- Formerly Chief Investment Officer of Deutsche Trust Bank.
- Over 21 years of investment industry experience.

- Previously served as Japanese Equity Fund Manager at Okasan Investment
   Management for five years and in various positions at Okasan Securities for
   five years prior to joining Deutsche Asset Management Group.
- BA, Kyushu University, Chartered Member of the Security Analysts Association
   of Japan.

The fund's Statement of Additional Information provides additional information
about a portfolio manager's investments in the fund, a description of the
portfolio management compensation structure and information regarding other
accounts managed.

                                         Who Manages and Oversees the Fund  | 17



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
the 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
the fund's financial statements, is included in the fund's annual report (see
"Shareholder reports" on the back cover). On August 20, 2004, the fund
converted to a stand-alone fund from a master-feeder structure. Certain ratio
results for the year ended August 31, 2004 from activity prior to this
conversion are included in the Financial Highlights.

18 | Financial Highlights



DWS Japan Equity Fund - Class A

YEARS ENDED AUGUST 31,                  2008            2007            2006 f           2005 f          2004 f
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                            $  14.86        $  17.18         $  14.65         $  13.67        $  11.72
--------------------------------     --------        --------         --------         --------        --------
Income (loss) from
investment operations:
  Net investment income
  (loss)a                              (  .01)         (  .06)          (  .06)          (  .03)         (  .08)
________________________________     ________        ________         ________         ________        ________
  Net realized and unrealized
  gain (loss)                          ( 2.98)            .52             3.79             2.23            2.03
--------------------------------     --------        --------         --------         --------        --------
  TOTAL FROM INVESTMENT
  OPERATIONS                           ( 2.99)            .46             3.73             2.20            1.95
________________________________     ________        ________         ________         ________        ________
Less distributions from:
  Net realized gains                   ( 1.87)         ( 2.78)          ( 1.20)          ( 1.22)              -
________________________________     ________        ________         ________         ________        ________
  Tax return of capital                (  .06)              -                -                -               -
--------------------------------     --------        --------         --------         --------        --------
  TOTAL DISTRIBUTIONS                  ( 1.93)         ( 2.78)          ( 1.20)          ( 1.22)              -
________________________________     ________        ________         ________         ________        ________
Redemption fees*                          .00             .00              .00              .00             .00
--------------------------------     --------        --------         --------         --------        --------
NET ASSET VALUE, END OF
PERIOD                               $   9.94        $  14.86         $  17.18         $  14.65        $  13.67
--------------------------------     --------        --------         --------         --------        --------
Total Return (%)b                      (22.07)         2.66c           25.48c           16.72c          16.65c
--------------------------------     --------        --------         --------         --------        --------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                               37              57               70               30              29
________________________________     ________        ________         ________         ________        ________
Ratio of expenses before
expense reductions (%)                   1.74            1.52             1.53             1.79          2.10d
________________________________     ________        ________         ________         ________        ________
Ratio of expenses after
expense reductions (%)                   1.74            1.52             1.42             1.40          1.40d
________________________________     ________        ________         ________         ________        ________
Ratio of net investment
income (loss) (%)                      (  .08)         (  .36)          (  .37)          (  .25)         (  .65)
________________________________     ________        ________         ________         ________        ________
Portfolio turnover rate (%)               105             120              105               60          109e
--------------------------------     --------        --------         --------         --------        --------

a   Based on average shares outstanding during the period.

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

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

d   The ratio includes expenses allocated from the Japanese Equity Portfolio.

e   This ratio includes the purchase and sale of portfolio securities of the
   Japanese Equity Fund as a stand-alone fund in addition to the Japanese
   Equity Portfolio.

f   On November 11, 2005, the Fund implemented a .7228027-for-1 reverse stock
   split to realign net asset value per share with Class B and Class C. Share
   and per share information through November 10, 2005 have been updated to
   reflect the effect of the split. Shareholders received .7228027 shares for
   every one share owned and net asset value per share increased
   correspondingly.

*   Amount is less than $.005.

                                                      Financial Highlights  | 19



DWS Japan Equity Fund - Class B

YEARS ENDED AUGUST 31,                  2008            2007             2006             2005            2004
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                            $  14.62        $  17.07         $  14.66         $  13.47        $  11.63
--------------------------------     --------        --------         --------         --------        --------
Income (loss) from
investment operations:
  Net investment income
  (loss)a                              (  .11)         (  .18)          (  .19)          (  .17)         (  .19)
________________________________     ________        ________         ________         ________        ________
  Net realized and unrealized
  gain (loss)                          ( 2.91)            .51             3.80             2.24            2.03
--------------------------------     --------        --------         --------         --------        --------
  TOTAL FROM INVESTMENT
  OPERATIONS                           ( 3.02)            .33             3.61             2.07            1.84
________________________________     ________        ________         ________         ________        ________
Less distributions from:
  Net realized gains                   ( 1.87)         ( 2.78)          ( 1.20)          (  .88)              -
________________________________     ________        ________         ________         ________        ________
  Tax return of capital                (  .06)              -                -                -               -
--------------------------------     --------        --------         --------         --------        --------
  TOTAL DISTRIBUTIONS                  ( 1.93)         ( 2.78)          ( 1.20)          (  .88)              -
________________________________     ________        ________         ________         ________        ________
Redemption fees*                          .00             .00              .00              .00             .00
--------------------------------     --------        --------         --------         --------        --------
NET ASSET VALUE, END OF
PERIOD                               $   9.67        $  14.62         $  17.07         $  14.66        $  13.47
--------------------------------     --------        --------         --------         --------        --------
Total Return (%)b                      (22.70)         1.82c           24.61c           15.79c          15.82c
--------------------------------     --------        --------         --------         --------        --------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                                6              12               14                8               9
________________________________     ________        ________         ________         ________        ________
Ratio of expenses before
expense reductions (%)                   2.61            2.32             2.28             2.54          2.85d
________________________________     ________        ________         ________         ________        ________
Ratio of expenses after
expense reductions (%)                   2.61            2.31             2.16             2.15          2.15d
________________________________     ________        ________         ________         ________        ________
Ratio of net investment
income (loss) (%)                      (  .95)         ( 1.15)          ( 1.11)          ( 1.00)         ( 1.40)
________________________________     ________        ________         ________         ________        ________
Portfolio turnover rate (%)               105             120              105               60          109e
--------------------------------     --------        --------         --------         --------        --------

a   Based on average shares outstanding during the period.

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

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

d   The ratio includes expenses allocated from the Japanese Equity Portfolio.

e   This ratio includes the purchase and sale of portfolio securities of the
   Japanese Equity Fund as a stand-alone fund in addition to the Japanese
   Equity Portfolio.

*   Amount is less than $.005.

20 | Financial Highlights



DWS Japan Equity Fund - Class C

YEARS ENDED AUGUST 31,                  2008            2007             2006             2005            2004
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                            $  14.63        $  17.07         $  14.66         $  13.47        $  11.63
--------------------------------     --------        --------         --------         --------        --------
Income (loss) from
investment operations:
  Net investment income
  (loss)a                              (  .10)         (  .17)          (  .20)          (  .17)         (  .19)
________________________________     ________        ________         ________         ________        ________
  Net realized and unrealized
  gain (loss)                          ( 2.92)            .51             3.81             2.24            2.03
--------------------------------     --------        --------         --------         --------        --------
  TOTAL FROM INVESTMENT
  OPERATIONS                           ( 3.02)            .34             3.61             2.07            1.84
________________________________     ________        ________         ________         ________        ________
Less distributions from:
  Net realized gains                   ( 1.87)         ( 2.78)          ( 1.20)          (  .88)              -
________________________________     ________        ________         ________         ________        ________
  Tax return of capital                (  .06)              -                -                -               -
--------------------------------     --------        --------         --------         --------        --------
  TOTAL DISTRIBUTIONS                  ( 1.93)         ( 2.78)          ( 1.20)          (  .88)              -
________________________________     ________        ________         ________         ________        ________
Redemption fees*                          .00             .00              .00              .00             .00
--------------------------------     --------        --------         --------         --------        --------
NET ASSET VALUE, END OF
PERIOD                               $   9.68        $  14.63         $  17.07         $  14.66        $  13.47
--------------------------------     --------        --------         --------         --------        --------
Total Return (%)b                      (22.67)         1.89c           24.61c           15.79c          15.82c
--------------------------------     --------        --------         --------         --------        --------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                               24              49               59               16              16
________________________________     ________        ________         ________         ________        ________
Ratio of expenses before
expense reductions (%)                   2.55            2.26             2.27             2.54          2.85d
________________________________     ________        ________         ________         ________        ________
Ratio of expenses after
expense reductions (%)                   2.55            2.25             2.17             2.15          2.15d
________________________________     ________        ________         ________         ________        ________
Ratio of net investment
income (loss) (%)                      (  .89)         ( 1.09)          ( 1.12)          ( 1.00)         ( 1.40)
________________________________     ________        ________         ________         ________        ________
Portfolio turnover rate (%)               105             120              105               60          109e
--------------------------------     --------        --------         --------         --------        --------

a   Based on average shares outstanding during the period.

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

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

d   The ratio includes expenses allocated from the Japanese Equity Portfolio.

e   This ratio includes the purchase and sale of portfolio securities of the
   Japanese Equity Fund as a stand-alone fund in addition to the Japanese
   Equity Portfolio.

*   Amount is less than $.005.

                                                      Financial Highlights  | 21



HOW TO INVEST IN THE FUND
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. The
fund offers 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 THE 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.



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.


 CLASSES AND FEATURES                         POINTS TO HELP YOU COMPARE
 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

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. The 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.

                                                    Choosing a Share Class  | 23



           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:

                              FRONT-END SALES          FRONT-END SALES
                                CHARGE AS %          CHARGE AS % OF YOUR
YOUR INVESTMENT            OF OFFERING PRICE 1,2        NET INVESTMENT 2
  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

           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")

24 | Choosing a Share Class



           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 the 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 the 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).

                                                    Choosing a Share Class  | 25



           Details regarding the types of investment programs and categories of
           investors eligible for a sales charge waiver are provided in the
           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. The 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 the fund.
           Class B shares have a 12b-1 plan, under which a distribution fee of
           0.75% is deducted from class assets each year. Class B shares also
           deduct a shareholder servicing fee of up to 0.25% 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.

26 | Choosing a Share Class



           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:

    YEAR AFTER YOU BOUGHT SHARES               CDSC ON SHARES YOU SELL
  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)

           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 the 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.

                                                    Choosing a Share Class  | 27



           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 the 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).

           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:

   YEAR AFTER YOU BOUGHT SHARES        CDSC ON SHARES YOU SELL
  First year                          1.00%
  Second year and later                         None

           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.

28 | Choosing a Share Class



How to BUY Class A, B and C Shares


 FIRST INVESTMENT                                ADDITIONAL INVESTMENTS
 $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

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

                                        How to Buy Class A, B and C Shares  | 29



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


 EXCHANGING INTO ANOTHER FUND                    SELLING SHARES
                                                 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

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

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

30 | How to Exchange or Sell Class A, B and C Shares



           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 the 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 the fund, any record keeping/sub-transfer
           agency/networking fees payable by the 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 the 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 the 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.

                           How to Exchange or Sell Class A, B and C Shares  | 31



           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 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 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 the 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 the fund. Additional information regarding these
           revenue sharing payments is included in the 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 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

32 | How to Exchange or Sell Class A, B and C Shares



           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.

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 the fund. Please note that
           a financial advisor may charge fees separate from those charged by
           the fund and may be compensated by the 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

           THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
           is open. The 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.

                                            Policies You Should Know About  | 33



           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 the fund, then we may reject your application and order.

           The 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 the fund, after a reasonable effort to do so, you
           will receive written notification.

           With certain limited exceptions, only US residents may invest in the
           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

34 | Policies You Should Know About



           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. The 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 the 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 the 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 the fund (e.g.,
           "time zone arbitrage"). The 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.

                                            Policies You Should Know About  | 35



           Pursuant to its policies, the fund will impose a 2% redemption fee
           on fund shares held for less than a specified holding period
           (subject to certain exceptions discussed below under "Redemption
           fees"). The fund also reserves the right to reject or cancel a
           purchase or exchange order for any reason without prior notice. For
           example, the 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 the fund. The 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. The fund may take other trading activity into account if the
           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. The 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, but all redemptions remain subject to the
           fund's redemption fee policy (see "Redemption fees" described
           below).

           The 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 the fund, such as, but not limited to,
           systematic transactions, required minimum retirement distributions,
           transactions initiated by the fund or administrator and transactions
           by certain qualified funds-of-funds.

36 | Policies You Should Know About



           In certain circumstances where shareholders hold shares of the 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 the 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 the fund that provide a substantially similar level of
           protection for the 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 the 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 the fund. (See "How the 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 the fund's shares) short-term and/or excessive trading of fund
           shares could adversely affect long-term shareholders in the fund. If
           short-term or excessive trading is identified, the Advisor will take
           appropriate action.

                                            Policies You Should Know About  | 37



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

           REDEMPTION FEES. The fund imposes a redemption fee of 2% of the
           total redemption amount (calculated at net asset value, without
           regard to the effect of any contingent deferred sales charge; any
           contingent deferred sales charge is also assessed on the total
           redemption amount without regard to the assessment of the 2%
           redemption fee) on all fund shares redeemed or exchanged within 15
           days of buying them (either by purchase or exchange). The redemption
           fee is paid directly to the fund and is designed to encourage
           long-term investment and to offset transaction and other costs
           associated with short-term or excessive trading. For purposes of
           determining whether the redemption fee applies, shares held the
           longest time will be treated as being redeemed first and shares held
           the shortest time will be treated as being redeemed last.

           The redemption fee is applicable to fund shares purchased either
           directly or through a financial intermediary, such as a
           broker-dealer. Transactions through financial intermediaries
           typically are placed with the fund on an omnibus basis and include
           both purchase and sale transactions placed on behalf of multiple
           investors. These purchase and sale transactions are generally netted
           against one another and placed on an aggregate basis; consequently
           the identities of the individuals on whose behalf the transactions
           are placed generally are not known to the fund. For this reason, the
           fund has undertaken to notify financial intermediaries of their
           obligation to assess the redemption fee on customer accounts and to
           collect and remit the proceeds to the fund. However, due to
           operational requirements, the intermediaries' methods for tracking
           and calculating the fee may be inadequate or differ in some respects
           from the fund's. Subject to approval by the Advisor or the fund's
           Board, intermediaries who transact business on an omnibus basis may
           implement the redemption fees according to their own operational
           guidelines (which may be different than the fund's policies) and
           remit the fees to the fund.

           The redemption fee will not be charged in connection with the
           following exchange or redemption transactions: (i) transactions on
           behalf of participants in certain research wrap programs; (ii)
           transactions on behalf of a shareholder to return any excess IRA
           contributions to the shareholder; (iii) transactions on behalf of a
           shareholder to effect a required minimum distribution on an IRA;
           (iv) transactions on behalf of any mutual fund advised by

38 | Policies You Should Know About



           the Advisor and its affiliates (e.g., "funds of funds") or, in the
           case of a master/feeder relationship, redemptions by the feeder fund
           from the master portfolio; (v) transactions on behalf of certain
           unaffiliated mutual funds operating as funds of funds; (vi)
           transactions following death or disability of any registered
           shareholder, beneficial owner or grantor of a living trust with
           respect to shares purchased before death or disability; (vii)
           transactions involving hardship of any registered shareholder;
           (viii) systematic transactions with pre-defined trade dates for
           purchases, exchanges or redemptions, such as automatic account
           rebalancing, or loan origination and repayments; (ix) transactions
           involving shares purchased through the reinvestment of dividends or
           other distributions; (x) transactions involving shares transferred
           from another account in the same fund or converted from another
           class of the same fund (the redemption fee period will carry over to
           the acquired shares); (xi) transactions initiated by the fund or
           administrator (e.g., redemptions for not meeting account minimums,
           to pay account fees funded by share redemptions, or in the event of
           the liquidation or merger of the fund); or (xii) transactions in
           cases when there are legal or contractual limitations or
           restrictions on the imposition of the redemption fee (as determined
           by the fund or its agents in their sole discretion). It is the
           policy of the DWS funds to permit approved fund platform providers
           to execute transactions with the funds without the imposition of a
           redemption fee if such providers have implemented alternative
           measures that are determined by the Advisor to provide controls on
           short-term and excessive trading that are comparable to the DWS
           funds' policies.

           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.

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  | 39



           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.

           THE 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. The fund can only send wires of $1,000 or more and accept
           wires of $50 or more.

           THE 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. The 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

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.

40 | Policies You Should Know About



           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 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

                                            Policies You Should Know About  | 41



            -  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.

           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. The 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

42 | Policies You Should Know About



           closings; 2) trading on the New York Stock Exchange is restricted;
           3) an emergency exists which makes the disposal of securities owned
           by the fund or the fair determination of the value of the 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 the 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 the fund calculates share price

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

            TOTAL ASSETS - TOTAL LIABILITIES
           -----------------------------------------    =    NAV
               TOTAL NUMBER OF SHARES OUTSTANDING

           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").

           THE FUND CHARGES A REDEMPTION FEE EQUAL TO 2.00% of the value of
           shares redeemed or exchanged within 15 days of purchase. Please see
           "Policies about transactions - Redemption fees" for further
           information.

           WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN
           INDEPENDENT PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE.
           However, we may use methods approved by the 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 the 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

                                            Policies You Should Know About  | 43



           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, the 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 the -fund's use of fair value
           pricing. This is intended to reduce the fund's exposure to "time
           zone arbitrage" and other harmful -trading practices. (See "Market
           -timing policies and procedures.")

           TO THE EXTENT THAT THE 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 the
           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 the 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

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

44 | Policies You Should Know About



            -  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 the fund's best
               interests or when the 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 any applicable sales charges or redemption fees);
              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; the 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 the fund's net assets, whichever is less

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

UNDERSTANDING DISTRIBUTIONS AND TAXES

           The fund intends to distribute to its shareholders virtually all of
           its net earnings. The 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. (The fund's
           earnings are separate from any gains or losses stemming from your
           own purchase and sale of shares.) The fund may not always pay a
           dividend or other distribution for a given period.

           THE FUND INTENDS TO PAY DIVIDENDS AND DISTRIBUTIONS to its
           shareholders annually in December and, if necessary, may do so at
           other times as well.

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  | 45



           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.

46 | Understanding Distributions and Taxes



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

GENERALLY TAXED AT LONG-TERM        GENERALLY TAXED AT ORDINARY
CAPITAL GAIN RATES:                 INCOME RATES:
DISTRIBUTIONS FROM THE FUND
- gains from the sale of            -  gains from the sale of
  securities held (or treated as       securities held by the fund for
  held) by the fund for more           one year or less
  than 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

           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY THE FUND MAY BE
           SUBJECT TO FOREIGN WITHHOLDING TAXES. In that case, the fund's yield
           on those securities would generally be decreased. The fund may elect
           to pass through to its shareholders a credit or deduction for
           foreign taxes it has paid if at the end of its fiscal year more than
           50% of the value of the fund's total assets consists of stocks or
           securities of foreign corporations. In addition, any investments in
           foreign securities or foreign currencies may increase or accelerate
           the fund's recognition of ordinary income and may affect the timing
           or amount of the fund's distributions. If you invest in the fund
           through a taxable account, your after-tax return could be negatively
           impacted.

           Investments in certain debt obligations or other securities may
           cause the fund to recognize taxable income in excess of the cash
           generated by them. Thus, the 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 the 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 the fund from domestic and
           some foreign corporations. It does not include income from
           investments in

                                     Understanding Distributions and Taxes  | 47



           debt securities  or, generally, from real estate investment trusts.
           In addition, the 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 the 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 THE FUND PAYS A DIVIDEND, you'll be
           getting some of your investment back as a taxable dividend. You can
           avoid this by investing after the 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 the 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 the fund. For
           more information, see "Taxes" in the Statement of Additional
           Information.

48 | Understanding Distributions and Taxes



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  | 49



DWS Japan Equity Fund - Class A

              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
   1            5.00%        1.74%             -2.68%       $  9,732.26        $   741.67
   2           10.25%        1.74%              0.50%       $ 10,049.53        $   172.10
   3           15.76%        1.74%              3.77%       $ 10,377.14        $   177.71
   4           21.55%        1.74%              7.15%       $ 10,715.44        $   183.51
   5           27.63%        1.74%             10.65%       $ 11,064.76        $   189.49
   6           34.01%        1.74%             14.25%       $ 11,425.47        $   195.66
   7           40.71%        1.74%             17.98%       $ 11,797.94        $   202.04
   8           47.75%        1.74%             21.83%       $ 12,182.55        $   208.63
   9           55.13%        1.74%             25.80%       $ 12,579.70        $   215.43
  10           62.89%        1.74%             29.90%       $ 12,989.80        $   222.45
  TOTAL                                                                        $ 2,508.69

DWS Japan Equity Fund - Class B

              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
   1            5.00%        2.61%              2.39%       $ 10,239.00        $   264.12
   2           10.25%        2.61%              4.84%       $ 10,483.71        $   270.43
   3           15.76%        2.61%              7.34%       $ 10,734.27        $   276.89
   4           21.55%        2.61%              9.91%       $ 10,990.82        $   283.51
   5           27.63%        2.61%             12.54%       $ 11,253.50        $   290.29
   6           34.01%        2.61%             15.22%       $ 11,522.46        $   297.23
   7           40.71%        1.74%             18.98%       $ 11,898.09        $   203.76
   8           47.75%        1.74%             22.86%       $ 12,285.97        $   210.40
   9           55.13%        1.74%             26.86%       $ 12,686.49        $   217.26
  10           62.89%        1.74%             31.00%       $ 13,100.07        $   224.34
  TOTAL                                                                        $ 2,538.23

50 | Appendix



DWS Japan Equity Fund - Class C

              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
   1            5.00%        2.55%              2.45%       $ 10,245.00        $   258.12
   2           10.25%        2.55%              4.96%       $ 10,496.00        $   264.45
   3           15.76%        2.55%              7.53%       $ 10,753.15        $   270.93
   4           21.55%        2.55%             10.17%       $ 11,016.61        $   277.56
   5           27.63%        2.55%             12.87%       $ 11,286.51        $   284.36
   6           34.01%        2.55%             15.63%       $ 11,563.03        $   291.33
   7           40.71%        2.55%             18.46%       $ 11,846.33        $   298.47
   8           47.75%        2.55%             21.37%       $ 12,136.56        $   305.78
   9           55.13%        2.55%             24.34%       $ 12,433.91        $   313.27
  10           62.89%        2.55%             27.39%       $ 12,738.54        $   320.95
  TOTAL                                                                        $ 2,885.22

                                                                  Appendix  | 51



TO GET MORE INFORMATION

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

STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
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
the fund, call (800) 621-1048, or contact DWS Investments at the address listed
below. The 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 the 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 the fund,
including the 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.

DWS INVESTMENTS      SEC                     DISTRIBUTOR
-----------------    --------------------    ------------------------------
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

SEC FILE NUMBER:
DWS Investors Funds, Inc.        DWS Japan Equity Fund    811-08227

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



               SUPPLEMENT TO THE CURRENTLY EFFECTIVE PROSPECTUSES

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

                             DWS Japan Equity Fund

Effective on or about April 1, 2009, Masaaki Kadota will replace Kenji Chihara
as a portfolio manager for the above-listed fund. The following biographical
information for Mr. Kadota replaces that for Mr. Chihara in the "Portfolio
management" section of the fund's prospectuses:

  Masaaki Kadota Vice President of Deutsche Asset Management (Japan) Limited and
  Portfolio Manager of the fund.
    oPortfolio manager for Global ex-Japan Equity: Tokyo, since 2002.
    oJoined Deutsche Asset Management in 2001 and the fund in 2009.
    oPrior to that, worked for 5 years at J.P.Morgan Securities and STB Asset
     Management.
    oBachelor's degree in Political Science, Waseda University; Master's in
     Finance degree from London Business School, University of London; MSc in
     Investment Management, Sir John Cass Business School, City University,
     London.

               Please Retain This Supplement for Future Reference

                                                                    [Logo]DWS
                                                                   INVESTMENTS
                                                           Deutsche Bank Group

March 27, 2009
DJEF-3601



               SUPPLEMENT TO THE CURRENTLY EFFECTIVE PROSPECTUSES:

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

                              DWS Japan Equity Fund

The Board of each fund noted below has given preliminary approval to a proposal
by Deutsche Investment Management Americas Inc. ("DIMA"), the advisor of each
such fund, to effect the following fund merger:

--------------------------------------------------------------------------------
Acquired Fund                      Acquiring Fund
--------------------------------------------------------------------------------
DWS Japan Equity Fund              DWS International Value Opportunities Fund
--------------------------------------------------------------------------------

Completion of this merger is subject to, among other things: (i) final approval
by the Board of each fund, and (ii) approval by shareholders of the Acquired
Fund. Prior to the shareholder meeting, shareholders of record on the record
date of the Acquired Fund will receive (i) a Proxy Statement/Prospectus
describing in detail the proposed merger and the Board's considerations in
recommending that shareholders approve the merger, (ii) a proxy card and
instructions on how to submit a vote, and (iii) a Prospectus for the Acquiring
Fund.

If the proposed merger is approved by shareholders, the Acquired Fund will be
closed to new investors except as described below. Unless you fit into one of
the investor eligibility categories described below, you may not invest in the
fund following shareholder approval of the merger.

You may continue to purchase fund shares following shareholder approval through
your existing fund account and reinvest dividends and capital gains if, as of
4:00 p.m. Eastern time on the shareholder meeting date, or such later date as
shareholder approval may occur, you are:

o  a current fund shareholder; or

o  a participant in any group retirement, employee stock bonus, pension or
   profit sharing plan that offers the fund as an investment option.

                                                                     [Logo]DWS
                                                                   INVESTMENTS
                                                           Deutsche Bank Group
January 23, 2009
DJEF-3600



New accounts may be opened for:

o  transfers of shares from existing accounts in this fund (including
   IRA rollovers);

o  officers, Trustees and Directors of the DWS Funds, and full-time employees
   and their family members of DIMA and its affiliates;

o  any group retirement, employee stock bonus, pension or profit sharing plan
   using the Flex subaccount recordkeeping system made available through ADP
   Inc. under an alliance with DWS Investments Distributors, Inc. ("DIDI")
   ("Flex Plans");

o  any group retirement, employee stock bonus, pension or profit sharing plan,
   other than a Flex Plan, that includes the fund as an investment option as of
   the shareholder meeting date;

o  purchases through any comprehensive or "wrap" fee program or other fee based
   program; or

o  accounts managed by DIMA, any advisory products offered by DIMA or DIDI and
   for the Portfolios of DWS Allocation Series or other fund of funds managed by
   DIMA or its affiliates.

Except as otherwise noted, these restrictions apply to investments made directly
with DIDI, the fund's principal underwriter, or through an intermediary
relationship with a financial services firm established with respect to the DWS
Funds as of the shareholder meeting date. Institutions that maintain omnibus
account arrangements are not allowed to open new sub-accounts for new investors,
unless the investor is one of the types listed above. Once an account is closed,
new investments will not be accepted unless you satisfy one of the investor
eligibility categories listed above.

Exchanges into the Acquired Fund will not be permitted unless the exchange is
being made into an existing fund account.

DIDI may, at its discretion, require appropriate documentation that shows an
investor is eligible to purchase Acquired Fund shares.

               Please Retain This Supplement for Future Reference

                                       2
January 23, 2009
DJEF-3600



                                DECEMBER 1, 2008

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

                             DWS JAPAN EQUITY 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



CONTENTS

HOW THE FUND WORKS
  4      The Fund's Main Investment
         Strategy
  5      The Main Risks of Investing in
         the Fund
  9      The Fund's Performance
         History
 11      How Much Investors Pay
 12      Other Policies and Secondary
         Risks
 13      Who Manages and Oversees
         the Fund
 17      Financial Highlights

HOW TO INVEST IN THE FUND
 20      How to Buy Class S Shares
 21      How to Exchange or Sell
         Class S Shares
 24      Policies You Should Know
         About
 35      Understanding Distributions
         and Taxes
 39      Appendix



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

Whether you are considering investing in the 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 the 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).



                               Class S
  ticker symbol                FJESX
    fund number                2369

    DWS JAPAN EQUITY FUND

            THE FUND'S MAIN INVESTMENT STRATEGY

            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. The fund's
            equity investments are mainly common stocks, but may also include
            preferred stocks and other securities with equity characteristics,
            such as convertible securities and warrants.

            In choosing stocks, portfolio management relies most heavily on the
            following analytical disciplines:

            -  BOTTOM-UP RESEARCH. Portfolio management looks for individual
               companies with a history of above-average growth, strong
               competitive positioning, attractive prices relative to potential
               growth, sound financial strength and effective management, among
               other factors.

            -  GROWTH ORIENTATION. Portfolio management generally looks for
               companies that it believes have above-average potential for
               sustainable growth of revenue or earnings and whose market value
               appears reasonable in light of their business prospects.

            Portfolio management will normally sell a stock when it believes
            the issuer's fundamental factors have changed, other investments
            offer better opportunities or when adjusting the fund's emphasis on
            a given industry.

4 | DWS Japan Equity Fund



            OTHER INVESTMENTS. The fund is permitted, but not required, to use
            various types of derivatives (contracts whose value is based on,
            for example, indices, currencies or securities). Derivatives may be
            used for hedging and for risk management or for non-hedging
            purposes to seek to enhance potential gains. The fund may use
            derivatives in circumstances where portfolio management believes
            they offer an economical means of gaining exposure to a particular
            asset class or to keep cash on hand to meet shareholder redemptions
            or other needs while maintaining exposure to the market.

            In particular, the fund may use futures and options, including
            sales of covered put and call options.

            SECURITIES LENDING. The fund may lend its investment securities in
            an amount up to 33 1/3% of its total assets to approved
            institutional borrowers who need to borrow securities in order to
            complete certain transactions.

            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.

            STOCK MARKET RISK. As with most stock funds, the most important
            factor with this fund is how stock markets perform - in this case,
            the Japanese market. When Japanese stock prices fall, you should
            expect the value of your investment to fall as well. To the extent
            that the fund invests in smaller-sized companies, it will be more
            susceptible to these risks as smaller-sized companies have limited
            business lines and financial resources, making them especially
            vulnerable to business risks and economic downturns.

            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.

THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS

This fund is designed for individuals who are seeking high capital appreciation
and are willing to accept the risks of investing in the stocks of companies in a
particular foreign country or region.

                                                      DWS Japan Equity Fund  | 5



            -  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.

6 | DWS Japan Equity Fund



            INVESTMENT FOCUS RISK. Focusing on a single country involves
            increased currency, political, regulatory and other risks. Because
            the fund concentrates its investments in Japanese equity
            securities, market swings in Japan will have a greater effect on
            fund performance than they would in a more geographically
            diversified equity fund.

            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.

            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.

            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.

                                                      DWS Japan Equity Fund  | 7



            Other factors that could affect performance include:

            -  portfolio management could be wrong in the analysis of foreign
               governments, industries, companies, economic trends, the
               relative attractiveness of different sizes of stocks,
               geographical trends or other matters.

            -  derivatives could produce disproportionate losses due to a
               variety of factors, including the failure of the counterparty to
               meet its obligations or unexpected price or interest rate
               movements.

8 | DWS Japan Equity Fund



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 Japan Equity Fund

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

38.53      10.18      34.50       2.43     -7.94
2003       2004       2005       2006      2007

2008 TOTAL RETURN AS OF SEPTEMBER 30: -26.95%
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 23.19%, Q3 2003                 WORST QUARTER: -9.38%, Q4 2007

                                                      DWS Japan Equity Fund  | 9



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

                                                1 YEAR        5 YEARS      SINCE INCEPTION*
 CLASS S
   Return before Taxes                           -7.94          14.12             9.78
   Return after Taxes on Distributions          -10.32          12.08             7.97
   Return after Taxes on Distributions
   and Sale of Fund Shares                       -2.55**        12.01            8.24**
 TOKYO STOCK EXCHANGE STOCK PRICE
 INDEX ("TOPIX") (reflects no
 deductions for fees, expenses or
 taxes)                                          -5.19          14.51           10.81

 *   Inception date for Class S was July 15, 2002. Index comparison begins on
     July 31, 2002.

 **   Return after Taxes on Distributions and Sale of Fund Shares is higher
     than other return figures 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 operating expenses hadn't been
 reduced.

 THE TOKYO STOCK EXCHANGE STOCK PRICE INDEX ("TOPIX") is an unmanaged
 capitalization-weighted measure (adjusted in US dollars) of all shares listed
 on the first section of the Tokyo Stock Exchange.

--------------------------------------------------------------------------------
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.

10 | DWS Japan Equity Fund



HOW MUCH INVESTORS PAY

The table below describes the fees and expenses that you may pay if you buy and
hold fund shares. This information doesn't include any fees that may be charged
by your financial advisor.

FEE TABLE                                         CLASS S
 SHAREHOLDER FEES, paid directly from your investment
______________________________________________________________________
 Redemption/Exchange fee, on shares
 owned less than 15 days (as % of
 amount redeemed, if applicable)1                   2.00%

 ANNUAL OPERATING EXPENSES, deducted from fund assets
______________________________________________________________________
 Management Fee                                     0.85%
 Distribution/Service (12b-1) Fee                   None
 Other Expenses2                                    0.91
 TOTAL ANNUAL OPERATING EXPENSES                    1.76
 Less Fee Waiver/Expense
 Reimbursement3                                     0.27
 NET ANNUAL OPERATING EXPENSES3                     1.49

1
  This fee is charged on applicable redemptions or exchanges. Please see
   "Policies You Should Know About - Policies about transactions" for further
   information.

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

3   Through November 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
   annual operating expenses at 1.49% for Class S shares, excluding certain
   expenses such as extraordinary expenses, taxes, brokerage and interest.

Based on the costs above (including one year of capped expenses in each
period), this example helps you compare the expenses of the 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.

EXAMPLE               1 YEAR      3 YEARS      5 YEARS      10 YEARS
 Class S shares        $152         $528         $929       $2,051

                                                     DWS Japan Equity Fund  | 11



OTHER POLICIES AND SECONDARY RISKS

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

           -  Although major changes tend to be infrequent, the fund's Board
              could change the fund's investment objective without seeking
              shareholder approval. However, the Board will provide
              shareholders with at least 60 days' notice prior to making any
              changes to the fund's 80% investment policy as described herein.

           -  As a temporary defensive measure, the fund could shift up to 100%
              of assets into investments such as money market securities. This
              could prevent losses, but, while engaged in a temporary defensive
              position, the 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.

           -  The fund 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.

           -  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.

           Secondary risks

           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,

12 | Other Policies and Secondary Risks



           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.

           For more information

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

           If you want more information on the 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 the fund will achieve
           its objective.

           A complete list of the 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 the 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. The fund's
           Statement of Additional Information includes a description of the
           fund's policies and procedures with respect to the disclosure of the
           fund's portfolio holdings.

WHO MANAGES AND OVERSEES THE FUND

           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 the fund. Under the oversight
           of the Board, the Advisor, or the subadvisor, makes investment
           decisions, buys and sells securities for the 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.

                                         Who Manages and Oversees the Fund  | 13



           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 receives a management fee from the fund.
           Below is the actual rate paid by the fund for the most recent fiscal
           year, as a percentage of the fund's average daily net assets.

FUND NAME                              FEE PAID
  DWS Japan Equity Fund                  0.85%

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

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

14 | Who Manages and Oversees the Fund



           Subadvisor

           Deutsche Asset Management (Japan) Limited ("DeAMJ"), Sanno Park
           Tower, 2-11-1 Nagatacho, Chiyoda-ku, Tokyo, Japan 100-6173, an
           affiliate of DIMA, is the subadvisor for the fund. Under DIMA's
           oversight, DeAMJ renders daily investment advisory and management
           services, including services related to foreign securities, foreign
           currency transactions and related investments with regard to the
           fund's portfolio. The Advisor compensates DeAMJ out of the
           management fee it receives from the fund.

                                         Who Manages and Oversees the Fund  | 15



Portfolio management

The following person handles the day-to-day management of the fund.

Kenji Chihara
Director of Deutsche Asset Management (Japan) Limited and Portfolio Manager of
the fund.
- Joined Deutsche Trust Bank in 1997 and transferred to Deutsche Asset
   Management (Japan) Limited in October 2005.
- Joined the fund in 2005.
- Formerly Chief Investment Officer of Deutsche Trust Bank.
- Over 21 years of investment industry experience.

- Previously served as Japanese Equity Fund Manager at Okasan Investment
   Management for five years and in various positions at Okasan Securities for
   five years prior to joining Deutsche Asset Management Group.
- BA, Kyushu University, Chartered Member of the Security Analysts Association
   of Japan.

The fund's Statement of Additional Information provides additional information
about a portfolio manager's investments in the fund, a description of the
portfolio management compensation structure and information regarding other
accounts managed.

16 | Who Manages and Oversees the Fund



FINANCIAL HIGHLIGHTS

The financial highlights are designed to help you understand recent financial
performance. The figures in the first part of the table are for a single share.
The total return figures represent the percentage that an investor in the 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 the
fund's financial statements, is included in the fund's annual report (see
"Shareholder reports" on the back cover). On August 20, 2004, the fund
converted to a stand-alone fund from a master-feeder structure. Certain ratio
results for the year ended August 31, 2004 from activity prior to this
conversion are included in the Financial Highlights.

                                                      Financial Highlights  | 17



DWS Japan Equity Fund - Class S

YEARS ENDED AUGUST 31,                  2008            2007           2006 e           2005 e          2004 e
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD                            $  14.92        $  17.22         $  14.65         $  13.63        $  11.66
--------------------------------     --------        --------         --------         --------        --------
Income (loss) from
investment operations:
  Net investment income
  (loss)a                              (  .02)         (  .03)          (  .01)             .01          (  .04)
________________________________     ________        ________         ________         ________        ________
  Net realized and unrealized
  gain (loss)                          ( 2.98)            .51             3.78             2.22            2.01
--------------------------------     --------        --------         --------         --------        --------
  TOTAL FROM INVESTMENT
  OPERATIONS                           ( 3.00)            .48             3.77             2.23            1.97
________________________________     ________        ________         ________         ________        ________
Less distributions from:
  Net realized gains                   ( 1.87)         ( 2.78)          ( 1.20)          ( 1.21)              -
________________________________     ________        ________         ________         ________        ________
  Tax return of capital                (  .06)              -                -                -               -
--------------------------------     --------        --------         --------         --------        --------
  TOTAL DISTRIBUTIONS                  ( 1.93)         ( 2.78)          ( 1.20)          ( 1.21)              -
________________________________     ________        ________         ________         ________        ________
Redemption fees*                          .00             .00              .00              .00             .00
--------------------------------     --------        --------         --------         --------        --------
NET ASSET VALUE, END OF
PERIOD                               $   9.99        $  14.92         $  17.22         $  14.65        $  13.63
--------------------------------     --------        --------         --------         --------        --------
Total Return (%)b                      (22.11)         2.85b           25.81b           17.01b          16.88b
--------------------------------     --------        --------         --------         --------        --------

RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period
($ millions)                               23              85               65               41              38
________________________________     ________        ________         ________         ________        ________
Ratio of expenses before
expense reductions (%)                   1.76            1.37             1.28             1.54          1.85c
________________________________     ________        ________         ________         ________        ________
Ratio of expenses after
expense reductions (%)                   1.76            1.37             1.16             1.15          1.15c
________________________________     ________        ________         ________         ________        ________
Ratio of net investment
income (loss) (%)                      (  .10)         (  .21)          (  .11)             .00          (  .40)
________________________________     ________        ________         ________         ________        ________
Portfolio turnover rate (%)               105             120              105               60          109d
--------------------------------     --------        --------         --------         --------        --------

a   Based on average shares outstanding during the period.

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

c   The ratio includes expenses allocated from the Japanese Equity Portfolio.

d   This ratio includes the purchase and sale of portfolio securities of the
   Japanese Equity Fund as a stand-alone fund in addition to the Japanese
   Equity Portfolio.

e   On November 11, 2005, the Fund implemented a .72649047-for-1 reverse stock
   split to realign net asset value per share with Class B and Class C. Share
   and per share information through November 10, 2005 have been updated to
   reflect the effect of the split. Shareholders received .72649047 shares for
   every one share owned and net asset value per share increased
   correspondingly.

*   Amount is less than $.005.

18 | Financial Highlights



HOW TO INVEST IN THE FUND

THE FOLLOWING PAGES TELL YOU HOW TO INVEST IN THE 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 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.

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.



How to BUY Class S Shares


 FIRST INVESTMENT                              ADDITIONAL INVESTMENTS
 $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

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

20 | How to Buy Class S Shares



How to EXCHANGE or SELL Class S Shares


 EXCHANGING INTO ANOTHER FUND                    SELLING SHARES
                                                 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

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

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

                                    How to Sell or Exchange Class S Shares  | 21



           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 the 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 the fund, any record keeping/sub-transfer
           agency/networking fees payable by the 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 the 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 the 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.

22 | How to Sell or Exchange Class S Shares



           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 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 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 the 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 the fund. Additional information regarding these
           revenue sharing payments is included in the 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 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

                                    How to Sell or Exchange Class S Shares  | 23



           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.

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 the fund. Please note that
           a financial advisor may charge fees separate from those charged by
           the fund and may be compensated by the 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

           THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
           is open. The 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.

24 | Policies You Should Know About



           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 the fund, then we may reject your application and order.

           The 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 the fund, after a reasonable effort to do so, you
           will receive written notification.

           With certain limited exceptions, only US residents may invest in the
           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  | 25



           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. The 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.

26 | Policies You Should Know About



           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 the 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 the 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 the fund (e.g.,
           "time zone arbitrage"). The 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.

           Pursuant to its policies, the fund will impose a 2% redemption fee
           on fund shares held for less than a specified holding period
           (subject to certain exceptions discussed below under "Redemption
           fees"). The fund also reserves the right to reject or cancel a
           purchase or exchange order for any reason without prior notice. For
           example, the 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 the fund. The 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. The fund may take other trading activity into account if the
           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. The fund has sole discretion whether to remove a block
           from a shareholder's

                                            Policies You Should Know About  | 27



           account. The rights of a shareholder to redeem shares of a DWS Fund
           are not affected by the four roundtrip transaction limitation, but
           all redemptions remain subject to the fund's redemption fee policy
           (see "Redemption fees" described below).

           The 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 the fund, such as, but not limited to,
           systematic transactions, required minimum retirement distributions,
           transactions initiated by the fund or administrator and transactions
           by certain qualified funds-of-funds.

           In certain circumstances where shareholders hold shares of the 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 the 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 the fund that provide a substantially similar level of
           protection for the 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 the 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 the fund. (See "How the fund
           calculates share price.")

28 | Policies You Should Know About



           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 the fund's shares) short-term and/or excessive trading of fund
           shares could adversely affect long-term shareholders in the fund. If
           short-term or excessive trading is identified, the Advisor will take
           appropriate action.

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

           REDEMPTION FEES. The fund imposes a redemption fee of 2% of the
           total redemption amount (calculated at net asset value) on all fund
           shares redeemed or exchanged within 15 days of buying them (either
           by purchase or exchange). The redemption fee is paid directly to the
           fund and is designed to encourage long-term investment and to offset
           transaction and other costs associated with short-term or excessive
           trading. For purposes of determining whether the redemption fee
           applies, shares held the longest time will be treated as being
           redeemed first and shares held the shortest time will be treated as
           being redeemed last.

           The redemption fee is applicable to fund shares purchased either
           directly or through a financial intermediary, such as a
           broker-dealer. Transactions through financial intermediaries
           typically are placed with the fund on an omnibus basis and include
           both purchase and sale transactions placed on behalf of multiple
           investors. These purchase and sale transactions are generally netted
           against one another and placed on an aggregate basis; consequently
           the identities of the individuals on whose behalf the transactions
           are placed generally are not known to the fund. For this reason, the
           fund has undertaken to notify financial intermediaries of their
           obligation to assess the redemption fee on

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  | 29



           customer accounts and to collect and remit the proceeds to the fund.
           However, due to operational requirements, the intermediaries'
           methods for tracking and calculating the fee may be inadequate or
           differ in some respects from the fund's.

           The redemption fee will not be charged in connection with the
           following exchange or redemption transactions: (i) transactions on
           behalf of participants in certain research wrap programs; (ii)
           transactions on behalf of a shareholder to return any excess IRA
           contributions to the shareholder; (iii) transactions on behalf of a
           shareholder to effect a required minimum distribution on an IRA;
           (iv) transactions on behalf of any mutual fund advised by the
           Advisor and its affiliates (e.g., "funds of funds") or, in the case
           of a master/feeder relationship, redemptions by the feeder fund from
           the master portfolio; (v) transactions on behalf of certain
           unaffiliated mutual funds operating as funds of funds; (vi)
           transactions following death or disability of any registered
           shareholder, beneficial owner or grantor of a living trust with
           respect to shares purchased before death or disability; (vii)
           transactions involving hardship of any registered shareholder;
           (viii) systematic transactions with pre-defined trade dates for
           purchases, exchanges or redemptions, such as automatic account
           rebalancing, or loan origination and repayments; (ix) transactions
           involving shares purchased through the reinvestment of dividends or
           other distributions; (x) transactions involving shares transferred
           from another account in the same fund or converted from another
           class of the same fund (the redemption fee period will carry over to
           the acquired shares); (xi) transactions initiated by the fund or
           administrator (e.g., redemptions for not meeting account minimums,
           to pay account fees funded by share redemptions, or in the event of
           the liquidation or merger of the fund); or (xii) transactions in
           cases when there are legal or contractual limitations or
           restrictions on the imposition of the redemption fee (as determined
           by the fund or its agents in their sole discretion). It is the
           policy of the DWS funds to permit approved fund platform providers
           to execute transactions with the funds without the imposition of a
           redemption fee if such providers have implemented alternative
           measures that are determined by the Advisor to provide controls on
           short-term and excessive trading that are comparable to the DWS
           funds' policies.

30 | Policies You Should Know About



           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 FUND DOES NOT ISSUE SHARE CERTIFICATES.

            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. The fund can only send wires of $1,000 or more and accept
            wires of $50 or more.

           THE 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. The 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

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.

                                            Policies You Should Know About  | 31



           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.

           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. The 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

32 | Policies You Should Know About



           restricted; 3) an emergency exists which makes the disposal of
           securities owned by the fund or the fair determination of the value
           of the 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 the 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 the fund calculates share price

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

            TOTAL ASSETS - TOTAL LIABILITIES
           -----------------------------------------    =    NAV
               TOTAL NUMBER OF SHARES OUTSTANDING

           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.

           THE FUND CHARGES A REDEMPTION FEE EQUAL TO 2.00% of the value of
           shares redeemed or exchanged within 15 days of purchase. Please see
           "Policies about transactions - Redemption fees" for further
           information.

           WE TYPICALLY VALUE SECURITIES USING INFORMATION FURNISHED BY AN
           INDEPENDENT PRICING SERVICE OR MARKET QUOTATIONS, WHERE APPROPRIATE.
           However, we may use methods approved by the 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 the 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, the 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

                                            Policies You Should Know About  | 33



           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 the -fund's use of fair value
           pricing. This is intended to reduce the fund's exposure to "time
           zone arbitrage" and other harmful -trading practices. (See "Market
           -timing policies and procedures.")

           TO THE EXTENT THAT THE 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 the
           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 the 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

           -  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 the fund's best
              interests or when the fund is requested or compelled to do so by
              governmental authority or by applicable law

34 | Policies You Should Know About



            -  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 applicable redemption fee, 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; the 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 the fund's net assets, whichever is less

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

UNDERSTANDING DISTRIBUTIONS AND TAXES

           The fund intends to distribute to its shareholders virtually all of
           its net earnings. The 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. (The fund's
           earnings are separate from any gains or losses stemming from your
           own purchase and sale of shares.) The fund may not always pay a
           dividend or other distribution for a given period.

         THE FUND INTENDS TO PAY DIVIDENDS AND DISTRIBUTIONS to its shareholders
         annually in December and, if necessary, 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.

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  | 35



           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.

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

GENERALLY TAXED AT LONG-TERM       GENERALLY TAXED AT ORDINARY
CAPITAL GAIN RATES:                INCOME RATES:
DISTRIBUTIONS FROM THE FUND
- gains from the sale of           -  gains from the sale of
  securities held (or treated as      securities held by the fund for
  held) by the fund for more          one year or less
  than 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

           ANY DIRECT INVESTMENTS IN FOREIGN SECURITIES BY THE FUND MAY BE
           SUBJECT TO FOREIGN WITHHOLDING TAXES. In that case, the fund's yield
           on those securities would generally be decreased. The fund may elect
           to pass through to its shareholders a credit or deduction for
           foreign taxes it has paid if

36 | Understanding Distributions and Taxes



           at the end of its fiscal year more than 50% of the value of the
           fund's total assets consists of stocks or securities of foreign
           corporations. In addition, any investments in foreign securities or
           foreign currencies may increase or accelerate the fund's recognition
           of ordinary income and may affect the timing or amount of the fund's
           distributions. If you invest in the fund through a taxable account,
           your after-tax return could be negatively impacted.

           Investments in certain debt obligations or other securities may
           cause the fund to recognize taxable income in excess of the cash
           generated by them. Thus, the 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 the 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 the 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, the 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 the 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.

                                     Understanding Distributions and Taxes  | 37



           IF YOU INVEST RIGHT BEFORE THE FUND PAYS A DIVIDEND, you'll be
           getting some of your investment back as a taxable dividend. You can
           avoid this by investing after the 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 the 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 the fund. For
           more information, see "Taxes" in the Statement of Additional
           Information.

38 | Understanding Distributions and Taxes



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.

                                                                  Appendix  | 39



DWS Japan Equity Fund - Class S

              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
   1            5.00%        1.49%              3.51%       $ 10,351.00        $   151.61
   2           10.25%        1.76%              6.86%       $ 10,686.37        $   185.13
   3           15.76%        1.76%             10.33%       $ 11,032.61        $   191.13
   4           21.55%        1.76%             13.90%       $ 11,390.07        $   197.32
   5           27.63%        1.76%             17.59%       $ 11,759.11        $   203.71
   6           34.01%        1.76%             21.40%       $ 12,140.10        $   210.31
   7           40.71%        1.76%             25.33%       $ 12,533.44        $   217.13
   8           47.75%        1.76%             29.40%       $ 12,939.52        $   224.16
   9           55.13%        1.76%             33.59%       $ 13,358.76        $   231.42
  10           62.89%        1.76%             37.92%       $ 13,791.59        $   238.92
  TOTAL                                                                        $ 2,050.84

40 | Appendix



TO GET MORE INFORMATION

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

STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
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
the fund, call (800) 728-3337, or contact DWS Investments at the address listed
below. The 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 the 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 the fund,
including the 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.

DWS INVESTMENTS      SEC                     DISTRIBUTOR
-----------------    --------------------    ------------------------------
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

SEC FILE NUMBER:
DWS Investors Funds, Inc.        DWS Japan Equity Fund    811-08227

(12/01/08) 369-2                 [RECYCLE GRAPHIC APPEARS HERE]
                                                                       [Logo]DWS
                                                                      INVESTMENT
                                                             Deutsche Bank Group



   SUPPLEMENT TO THE CURRENTLY EFFECTIVE STATEMENTS OF ADDITIONAL INFORMATION
                  FOR CLASS A SHARES OF THE FUNDS LISTED BELOW:

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


 DWS Alternative Asset Allocation Plus Fund   DWS Gold & Precious Metals Fund             DWS Money Market Prime Series - DWS Cash
 DWS Balanced Fund                            DWS Growth & Income Fund                      Investment Trust
 DWS Blue Chip Fund                           DWS Health Care Fund                        DWS New York Tax-Free Income Fund
 DWS California Tax-Free Income Fund          DWS High Income Fund                        DWS RREEF Global Infrastructure Fund
 DWS Capital Growth Fund                      DWS High Income Plus Fund                   DWS RREEF Global Real Estate Securities
 DWS Climate Change Fund                      DWS Inflation Protected Plus Fund             Fund
 DWS Commodity Securities Fund                DWS Intermediate Tax/AMT Free Fund          DWS RREEF Real Estate Securities Fund
 DWS Communications Fund                      DWS International Fund                      DWS S&P 500 Index Fund
 DWS Core Fixed Income Fund                   DWS International Select Equity Fund        DWS S&P 500 Plus Fund
 DWS Core Plus Allocation Fund                DWS International Value Opportunities       DWS Select Alternative Allocation Fund
 DWS Core Plus Income Fund                      Fund                                      DWS Short Duration Fund
 DWS Disciplined Long/Short Growth Fund       DWS Japan Equity Fund                       DWS Short Duration Plus Fund
 DWS Disciplined Long/Short Value Fund        DWS Large Cap Value Fund                    DWS Short Term Municipal Bond Fund
 DWS Disciplined Market Neutral Fund          DWS Large Company Growth Fund               DWS Small Cap Core Fund
 DWS Dreman Concentrated Value Fund           DWS Latin America Equity Fund               DWS Small Cap Growth Fund
 DWS Dreman High Return Equity Fund           DWS LifeCompass 2015 Fund                   DWS Strategic Government Securities Fund
 DWS Dreman Mid Cap Value Fund                DWS LifeCompass 2020 Fund                   DWS Strategic High Yield Tax-Free Fund
 DWS Dreman Small Cap Value Fund              DWS LifeCompass 2030 Fund                   DWS Strategic Income Fund
 DWS Emerging Markets Equity Fund             DWS LifeCompass 2040 Fund                   DWS Technology Fund
 DWS Emerging Markets Fixed Income Fund       DWS LifeCompass Protect 2017 Fund           DWS US Bond Index Fund
 DWS Equity Income Fund                       DWS LifeCompass Retirement Fund             DWS Value Builder Fund
 DWS Europe Equity Fund                       DWS Managed Municipal Bond Fund
 DWS Floating Rate Plus Fund                  DWS Massachusetts Tax-Free Fund
 DWS Global Bond Fund                         DWS Micro Cap Fund
 DWS Global Opportunities Fund                DWS Mid Cap Growth Fund
 DWS Global Thematic Fund
 DWS GNMA Fund

The following information supplements disclosure in the "Exchanges" subsection
under the "Purchase and Redemption of Shares" section of each fund's Statement
of Additional Information:

Class A to Class S in the Same Fund Exchange Privilege. Effective May 1, 2009,
investors who have invested in Class A shares through a comprehensive or "wrap"
fee program, or other fee-based program sponsored by a broker-dealer, bank or
registered investment adviser may become eligible to invest in Class S shares.
Subject to the discretion of DWS Investments Distributors, Inc., such
shareholders may exchange their Class A shares for Class S shares of equal
aggregate value of the same fund. No sales charge or other charges will apply to
any such exchanges. Investors should contact their selling and/or servicing
agents to learn more about the details of this exchange feature.

               Please Retain This Supplement for Future Reference

March 27, 2009



   SUPPLEMENT TO THE CURRENTLY EFFECTIVE STATEMENTS OF ADDITIONAL INFORMATION
                          OF EACH OF THE LISTED FUNDS:

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


Cash Account Trust                           DWS Europe Equity Fund                      DWS Mid Cap Growth Fund
    Government and Agency Securities         DWS Floating Rate Plus Fund                 DWS Money Market Prime Series
    Portfolio                                DWS Global Bond Fund                        DWS Money Market Series
    Money Market Portfolio                   DWS Global Opportunities Fund               DWS New York Tax-Free Income Fund
    Tax-Exempt Portfolio                     DWS Global Thematic Fund                    DWS RREEF Global Infrastructure Fund
Cash Management Fund Institutional           DWS GNMA Fund                               DWS RREEF Global Real Estate Securities
Cash Reserve Fund, Inc.                      DWS Gold & Precious Metals Fund                 Fund
    Prime Series                             DWS Growth & Income Fund                    DWS RREEF Real Estate Securities Fund
Cash Reserves Fund Institutional             DWS Health Care Fund                        DWS S&P 500 Index Fund
DWS Alternative Asset Allocation Plus Fund   DWS High Income Fund                        DWS S&P 500 Plus Fund
DWS Balanced Fund                            DWS High Income Plus Fund                   DWS Select Alternative Allocation Fund
DWS Blue Chip Fund                           DWS Inflation Protected Plus Fund           DWS Short Duration Fund
DWS California Tax-Free Income Fund          DWS Intermediate Tax/AMT Free Fund          DWS Short Duration Plus Fund
DWS Capital Growth Fund                      DWS International Fund                      DWS Short-Term Municipal Bond Fund
DWS Climate Change Fund                      DWS International Select Equity Fund        DWS Small Cap Core Fund
DWS Commodity Securities Fund                DWS International Value Opportunities Fund  DWS Small Cap Growth Fund
DWS Communications Fund                      DWS Japan Equity Fund                       DWS Strategic Government Securities Fund
DWS Core Fixed Income Fund                   DWS Large Cap Value Fund                    DWS Strategic High Yield Tax-Free Fund
DWS Core Plus Allocation Fund                DWS Large Company Growth Fund               DWS Strategic Income Fund
DWS Core Plus Income Fund                    DWS Latin America Equity Fund               DWS Target 2010 Fund
DWS Disciplined Long/Short Growth Fund       DWS LifeCompass 2015 Fund                   DWS Target 2011 Fund
DWS Disciplined Long/Short Value Fund        DWS LifeCompass 2020 Fund                   DWS Target 2012 Fund
DWS Disciplined Market Neutral Fund          DWS LifeCompass 2030 Fund                   DWS Target 2013 Fund
DWS Dreman Concentrated Value Fund           DWS LifeCompass 2040 Fund                   DWS Target 2014 Fund
DWS Dreman High Return Equity Fund           DWS LifeCompass Protect 2017 Fund           DWS Technology Fund
DWS Dreman Mid Cap Value Fund                DWS LifeCompass Retirement Fund             DWS U.S. Bond Index Fund
DWS Dreman Small Cap Value Fund              DWS Lifecycle Long Range Fund               DWS Value Builder Fund
DWS EAFE(R) Equity Index Fund                  DWS Managed Municipal Bond Fund             Investors Cash Trust
DWS Emerging Markets Equity Fund             DWS Massachusetts Tax-Free Fund                 Treasury Portfolio
DWS Emerging Markets Fixed Income Fund       DWS Micro Cap Fund                          NY Tax Free Money Fund
DWS Equity 500 Index Fund                                                                Tax Free Money Fund Investment
DWS Equity Income Fund                                                                   Tax-Exempt California Money Market Fund

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

The following information replaces similar disclosure under "Revenue Sharing" in
the "Purchase and Redemption of Shares" section of each Fund's/Portfolio's
Statements of Additional Information:

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 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.

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 Allied Securities
First Clearing/Wachovia Securities
HD Vest Investment Securities, Inc.
ING Advisors Network
John Hancock Distributors LLC
LPL Financial
M.L. Stern & Co.
Meridien Financial Group
Merrill Lynch, Pierce, Fenner & Smith Inc.
Morgan Stanley
Oppenheimer & Co., Inc.
PlanMember Services
Prime Capital Inc.
Raymond James & Associates
Raymond James Financial Services
RBC Dain Rauscher, Inc
Securities America, Inc.
UBS Financial Services
Wells Fargo Investments, LLC

                                       2



Channel: Cash Product Platform
------------------------------
Allegheny Investments LTD
Bank of America
Bank of New York (Hare & Co.)
BMO Capital Markets
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
J.P. Morgan Clearing Corp.
Legent Clearing LLC
Lincoln Investment Planning
LPL Financial
Mellon Financial Markets LLC
Mesirow Financial, Inc.
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.
Treasury Curve LLC
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
EquiTrust Life Insurance Company
Farm Bureau 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

                                       3



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.

               Please Retain This Supplement for Future Reference

March 17, 2009

                                       4

DWS INVESTORS FUNDS, INC.

DWS Japan Equity Fund
Class A, Class B and Class C

STATEMENT OF ADDITIONAL INFORMATION

December 1, 2008

This Statement of Additional Information is not a prospectus and should be read
in conjunction with the prospectuses dated December 1, 2008, as amended from
time to time, for DWS Japan Equity Fund (the "Fund"), a series of DWS Investors
Funds, Inc. (the "Corporation"), copies of which may be obtained without charge
by contacting DWS Investments Distributors, Inc., 222 South Riverside Plaza,
Chicago, Illinois 60606, 1-800-621-1148, or from the firm from which this
Statement of Additional Information was obtained, and are available along with
other materials on the Securities and Exchange Commission's Internet Web site
(http://www.sec.gov).

Portions of the Annual Report to Shareholders, dated August 31, 2008, are
incorporated by reference as specified herein. Copies of the Fund's Annual
Report may be obtained without charge from Shareholder Services by calling (800)
621-1048.

This Statement of Additional Information ("SAI") is incorporated by reference
into the applicable prospectuses.

TABLE OF CONTENTS

Page

INVESTMENT POLICIES...........................................................2

INVESTMENT OBJECTIVE AND RELATED POLICIES.....................................3

Special Considerations Regarding Japan....................................33
Portfolio Holdings Information............................................37

MANAGEMENT OF THE FUND.......................................................38

Investment Advisor........................................................38

FUND SERVICE PROVIDERS.......................................................49

Administrator.............................................................49
Distributor...............................................................50
Custodian.................................................................54
Transfer Agent ...........................................................54
Legal Counsel.............................................................56
Independent Registered Public Accounting Firm.............................56
Portfolio Transactions....................................................56

PURCHASE AND REDEMPTION OF SHARES............................................59

TAXES........................................................................81

NET ASSET VALUE..............................................................88

DIRECTORS AND OFFICERS.......................................................89

FUND ORGANIZATION...........................................................109

SHAREHOLDER RIGHTS AND BENEFICIAL OWNERSHIP INFORMATION.....................110

PROXY VOTING GUIDELINES.....................................................110

FINANCIAL STATEMENTS........................................................112

ADDITIONAL INFORMATION......................................................112

APPENDIX A -- PROXY VOTING GUIDELINES.......................................113

APPENDIX B -- RATINGS OF INVESTMENTS........................................138

INVESTMENT POLICIES

The principal investment strategies of the Fund, and the risks associated with
these strategies, are described in the Fund's prospectus. Additional information
is provided below. Any percentage limitation on the Fund's ability to invest in
debt securities will not be applicable during periods when the Fund pursues a
temporary defensive strategy as discussed below. The Fund is not obligated to
pursue any of these strategies and does not represent that these techniques are
available now or will be available at any time in the future.

The Fund's investment objective may be changed by the Board without shareholder
approval. The Fund's fundamental investment policies cannot be changed unless
authorized by the "vote of a majority of its outstanding voting securities,"
which is defined as a vote of (i) 67% or more of the outstanding voting
securities present at a meeting, if the holders of more than 50% of the
outstanding voting securities are present in person or represented by proxy; or
(ii) more than 50% of the outstanding voting securities, whichever is less. The
Fund's non-fundamental investment policies, however, may be changed by the Board
without shareholder approval. Shareholders will be notified before any material
change of these limitations become effective.

Unless otherwise noted and except with respect to borrowing money, there will be
no violation of any investment restriction if that restriction is complied with
at the time the relevant action is taken even if there is a later change in
market value of an investment, in net or total assets, in the securities rating
of the investment, or any other later change.

Fundamental Investment Policies

The Fund has elected to be treated as a diversified investment company, as that
term is used in the Investment Company Act of 1940, as amended (the "1940 Act"),
and as interpreted or modified by regulatory authority having jurisdiction, from
time to time. 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 or
invest in more than 10% of the outstanding voting securities of such issuer.

The Fund may not:

1. 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.

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. Borrow money, except as permitted under the 1940 Act, as amended, and
as interpreted or modified by regulatory authority having jurisdiction
from time to time.

4. Engage in the business of underwriting securities issued by others,
except to the extent that the Fund may be deemed to be an underwriter
in connection with the disposition of portfolio securities.

5. Purchase or sell real estate, which term does not include (a)
securities of companies which deal in real estate or mortgages or (b)
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.

7. Make loans except as permitted under the 1940 Act, and as interpreted
or modified by regulatory authority having jurisdiction, from time to
time.

Non-Fundamental Investment Policies

The Fund may:

1. Invest up to 5% of the total assets of the Fund in shares of investment
companies, provided these shares are offered to the public without
limitation on the number of shares, the shareholders have the right to
redeem their shares, and the investment companies have investment
policies consistent with those of the Fund. The Fund may not own more
than 3% of the total outstanding voting stock of any other investment
company. As a shareholder of another investment company, the Fund would
bear, along with other shareholders, its pro rata portion of the other
investment company's expenses, including advisory fees.

2. Not acquire any illiquid investments, such as repurchase agreements
with more than seven days to maturity, if as a result thereof, more
than 15% of the market value of the Fund's net assets would be in
investments that are illiquid.

3. Not invest more than 10% of its net assets in unlisted securities and
notes.

4. Not sell any security short, except to the extent permitted by the 1940
Act. Transactions in futures contracts and options shall not constitute
selling securities short.

5. Not purchase securities on margin, but the Fund may obtain such
short-term credits as may be necessary for the clearance of
transactions.

6. As a matter of non-fundamental policy, the Fund currently does not
intend to lend portfolio securities in an amount greater than 33 1/3%
of its total assets.

Note: In connection with the first non-fundamental policy, shares of another
investment company managed by the Advisor or by another investment advisor
affiliated with the Advisor through a substantial direct or indirect interest
may be purchased, subject to certain limitations, if the other investment
company according to its investment policies specializes in a specific
geographic area or economic sector. The Fund would not, however, pay a sales
charge when investing in an investment company managed by the Advisor or its
affiliates. In addition, no management or advisory fees would be paid by the
Fund with respect to its assets which are invested in investment companies
managed by the Advisor or its affiliates.

INVESTMENT OBJECTIVE AND RELATED POLICIES

Investment Objective

The investment objective of the Fund is to seek high capital appreciation. There
can, of course, be no assurance that the Fund will achieve its investment
objective.

The Fund seeks to achieve its objective by investing primarily in Japanese
equity securities (including American Depository Receipts), as described below.
In doing so, the Fund's investments in Japanese equity securities will be
primarily in common stocks of Japanese companies. However, the Fund may also
invest in other equity securities issued by Japanese entities, such as warrants
and convertible debentures, and in debt securities, such as those of the
Japanese government and of Japanese companies, when the Fund's advisor or
sub-advisor (together, the "Advisor") believes the potential for capital
appreciation from investment in debt securities equals or exceeds that available
from investment in equity securities.

The Fund may invest in a broad range of fixed income securities of all
maturities; however, the Fund may invest up to 20% of its total assets in cash
or in short-term government or other short-term prime obligations in order to
have funds readily available for general corporate purposes, including the
payment of operating expenses, dividends and redemptions, or the investment in
securities through exercise of rights or otherwise, or in repurchase agreements
in order to earn income for periods as short as overnight. Where the Advisor
determines that market or economic conditions so warrant, the Fund may, for
temporary defensive purposes, invest up to 100% of its total assets in cash and
cash equivalents. For instance, there may be periods when changes in market or
other economic conditions, or in political conditions, will make advisable a
reduction in equity positions and increased commitments in cash or corporate
debt securities, whether or not Japanese, or in the obligations of the
government of the United States or of Japan or of other governments. To the
extent this happens, the Fund will not be pursuing its objective of high capital
appreciation.

The Fund may also invest up to 30% of its net assets in the equity securities of
Japanese companies that are traded in an over-the-counter market rather than
listed on a securities exchange. These are generally securities of relatively
small or little-known companies that the Fund's Advisor believes have
above-average earnings growth potential. Securities that are traded
over-the-counter may not be traded in the volumes typical on a national
securities exchange. Consequently, in order to sell this type of holding in a
relatively short time period, the Fund may need to discount the securities from
recent prices or dispose of the securities over a long period of time. The
prices of this type of security may be more volatile than those of larger
companies, which are often traded on a national securities exchange.

The Fund purchases and holds securities that the Advisor believes have the
potential for long-term capital appreciation; investment income is a secondary
consideration in the selection of portfolio securities.

Equity Securities.

As used herein, "equity securities" include common stock, preferred stock, trust
or limited partnership interests, rights and warrants (to subscribe to or
purchase such securities) and convertible securities (consisting of debt
securities or preferred stock that may be converted into common stock or that
carry the right to purchase common stock), as well as any other type of
investment commonly viewed as an equity security.

Common Stock. Common stocks, the most familiar type of equity securities,
represent an equity (i.e., ownership) interest in a corporation. They may or may
not pay dividends or carry voting rights. Common stock occupies the most junior
position in a company's capital structure. Although equity securities have a
history of long-term growth in value, their prices can fluctuate significantly
based on changes in a company's financial condition as well as changes in
overall market and economic conditions. This affects the value of the shares of
the Fund, and thus the value of your investment. Smaller companies are
especially sensitive to these factors.

Warrants. The Fund may purchase warrants in value of up to 10% of the Fund's net
assets. Warrants are securities that give the Fund the right but not the
obligation to buy a specified number of shares of common stock at a specified
price, which is often higher than the market price at the time of issuance, for
a specified period (or in perpetuity). Warrants may be issued in units with
other securities or separately, and may be freely transferable and traded on
exchanges. Investing in warrants can provide a greater potential for profit or
loss than an equivalent investment in the underlying security, and thus is a
speculative investment. At the time of issue, the cost of a warrant is
substantially less than the cost of the underlying security itself, and price
movements in the underlying security are generally magnified in the price
movements of the warrant. This leveraging effect enables the investor to gain
exposure to the underlying security with a relatively low capital investment.
This leveraging increases an investor's risk; however, in the event of a decline
in the value of the underlying security leveraging and can result in a complete
loss of the amount invested in the warrant.

While the market value of a warrant tends to be more volatile than that of the
securities underlying the warrant, changes in the market value of a warrant may
not necessarily correlate with that of the underlying security. A warrant ceases
to have value if it is not exercised prior to the expiration date, if any, to
which the warrant is subject. The purchase of warrants involves the risk that
the Fund could lose the purchase value of a warrant if the right to subscribe to
additional shares is not exercised prior to the warrant's expiration. Also, the
purchase of warrants involves the risk that the effective price paid for the
warrant added to the subscription price of the related security may exceed the
value of the subscribed security's market price such as when there is no
movement in the level of the underlying security. The value of the warrant may
decline because of a decline in the value of the underlying security, the
passage of time, changes in the interest rates or dividend or other policies of
the company whose equity underlies the warrant or a change in the perception as
to the future price of the underlying security, market factors or any
combination thereof. Also warrants do not entitle the holder to dividends or
voting rights with respect to the underlying securities and do not represent any
rights to the assets of the issuing company.

Preferred Stocks. Preferred stock has a preference (i.e., ranks higher) in
liquidation (and generally in receiving dividends) over common stock, but is
subordinated (i.e., ranks lower) in liquidation to fixed income securities.
Dividends on preferred stocks may be cumulative, and in such cases, all
cumulative dividends usually must be paid prior to dividend payments to common
stock shareholders. Because of this preference, preferred stocks generally
entail less risk than common stocks. As a general rule, the market value of
preferred stocks with fixed dividend rates and no conversion rights moves
inversely with interest rates and perceived credit risk, with the price
determined by the dividend rate. Some preferred stocks are convertible into
other securities (e.g., common stock) at a fixed price and ratio upon the
occurrence of certain events. The market price of convertible preferred stocks
generally reflects an element of conversion value. Because many preferred stocks
lack a fixed maturity date, these securities generally fluctuate substantially
in value when interest rates change; such fluctuations often exceed those of
long-term bonds of the same issuer. Some preferred stocks pay an adjustable
dividend that may be based on an index, formula, auction procedure or other
dividend rate reset mechanism. In the absence of credit deterioration,
adjustable rate preferred stocks tend to have more stable market values than
fixed rate preferred stocks.

Preferred stocks are generally subject to the same types of credit risks as
corporate bonds. In addition, because preferred stock is subordinate to debt
securities and other obligations of an issuer, deterioration in the credit
rating of an issuer can cause greater changes in the value of a preferred stock
than in a more senior debt security with similar yield characteristics.
Preferred stocks may be rated by the Standard & Poor's Division of the
McGraw-Hill Companies, Inc. ("S&P"), Moody's Investors Service, Inc. ("Moody's")
or Fitch, Inc. ("Fitch"), although there is no minimum rating which a preferred
stock must have to be an eligible instrument of the Fund. Generally, however,
the preferred stocks in which the Fund invests will be rated at least CCC by
S&P, Caa by Moody's or CCC by Fitch, or, if unrated, of comparable quality in
the opinion of the Advisor. Preferred stocks rated CCC by S&P are regarded as
predominately speculative with respect to the issuer's capacity to pay preferred
stock obligations and represent the highest degree of speculation among rated
securities between BB and CCC; preferred stocks rated Caa by Moody's are likely
to be in arrears on dividend payments. Moody's ratings with respect to preferred
stocks do not purport to indicate the future status of payment of dividends.

Convertible Securities. A convertible security is a bond or preferred stock
which may be converted at a stated price within a specific period of time into a
specified number of shares of common stock of the same or different issuer.
Convertible securities are senior to common stock in a corporation's capital
structure, but are generally subordinate to non-convertible debt securities.
While providing a fixed income stream, they are generally higher in yield than
in the income derived from a common stock but lower than that afforded by a
non-convertible debt security. A convertible security also affords an investor
the opportunity, through its conversion feature, to participate in the capital
appreciation of common stock to which it is convertible.

A convertible security allows the Fund to realize additional returns if the
market price of the equity securities exceeds the conversion price. For example,
the Fund may hold fixed income securities that are convertible into shares of
common stock at a conversion price of $10 per share. If the market value of the
shares of common stock reached $12, the Fund could realize an additional $2 per
share by converting its fixed income securities. Convertible securities have
lower yields than comparable fixed income securities.

The terms of any convertible security determine its ranking in a company's
capital structure. In the case of subordinated convertible debentures, the
holders' claims on assets and earnings are subordinated to the claims of other
creditors, and are senior to the claims of preferred and common shareholders. In
the case of convertible preferred stock, the holders' claim on assets and
earnings are subordinated to the claims of all creditors and senior to the
claims of common shareholders.

In general, the market value of a convertible security is the greater of its
investment value (its value as a fixed income security) or its conversion value
(the value of the underlying shares of common stock if the security is
converted). As a fixed income security, the market value of a convertible
security generally increases when interest rates decline and generally decreases
as the market value of the underlying stock declines. Investments in convertible
securities generally entail less risk than investments in the common stock of
the same issuer.

Participation Certificates. Certain companies have issued participation
certificates, which entitle the holder to participate only in dividend
distributions, generally at rates above those declared on the issuers' common
stock, but not to vote, nor usually to any claim for assets in liquidation.
Participation certificates trade like common stock on their respective stock
exchanges. Such securities may have higher yields, but they may be less liquid
than common stock. The Advisor believes that certain participation certificates
have potential for long-term appreciation, depending on their price relative to
that of the issuer's equity securities (if publicly traded) and other criteria.

Real Estate Investment Trusts (REITS). REITs are real estate investment trusts
that lease, operate and finance commercial real estate. REITs are exempt from
federal corporate income tax if they limit their operations and distribute most
of their income. Such tax requirements limit a REIT's ability to respond to
changes in the commercial real estate market.

Initial Public Offerings (IPOs). The Fund may invest in IPOs. IPOs may be very
volatile, rising and falling rapidly based on, among other reasons, investor
perceptions rather than economic reasons. Additionally, IPOs may have a
magnified performance effect on a portfolio with a small asset base. The Fund
may not experience a similar impact on its performance as its assets grow, as it
is unlikely that the Fund will be able to obtain proportionately larger IPO
allocations.

Fixed Income Securities.

The Fund may invest in a broad range of domestic and foreign fixed income (debt)
securities. The fixed income securities in which the Fund invests must be rated
investment grade (in one of the four highest rating categories) by one or more
nationally recognized statistical ratings organizations ("NRSRO") or be of
comparable quality to securities having such ratings, as determined by the
Advisor.

Fixed income securities, including (but not limited to) bonds, are used by
issuers to borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity. Some
debt securities, such as zero coupon bonds, do not pay current interest, but are
purchased at a discount from their face values.

The value of fixed income securities in the Fund generally varies inversely with
changes in interest rates. Prices of fixed income securities with longer
effective maturities are more sensitive to interest rate changes than those with
shorter effective maturities.

In periods of declining interest rates, the yield (the income generated over a
stated period of time) of the fixed income securities that the Fund holds may
tend to be higher than prevailing market rates. In periods of rising interest
rates, the yield may tend to be lower. Also, when interest rates are falling,
the inflow of net new money to the Fund will likely be invested in portfolio
instruments producing lower yields than the balance of the Fund's fixed income
investments. In periods of rising interest rates, the opposite can be true.

Fixed Income Security Risk. Fixed income securities generally expose the Fund to
four 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); and (4) prepayment risk or call risk
(the likelihood that, during a period 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).

Corporate Debt Securities. The Fund may invest in corporate debt securities.
Corporate debt securities are fixed income securities issued by businesses.
Notes, bonds, debentures and commercial paper are the most prevalent types of
corporate debt securities. The Fund may also purchase interests in bank loans to
companies. The credit risks of corporate debt securities vary widely among
issuers.

In addition, the credit risk of an issuer's debt security may vary based on its
priority for repayment. For example, higher-ranking (senior) debt securities
have a higher priority than lower ranking (subordinated) securities. This means
that the issuer might not make payments on subordinated securities while
continuing to make payments on senior securities. In addition, in the event of
bankruptcy, holders of senior securities may receive amounts otherwise payable
to the holders of subordinated securities.

US Government Securities (Including US Treasury Securities and Agency
Securities). The Fund may invest its assets in securities issued or guaranteed
by the US government, its agencies or instrumentalities. These securities,
including those which are guaranteed by federal agencies or instrumentalities,
may or may not be backed by the "full faith and credit" of the United States. In
the case of securities not backed by the full faith and credit of the United
States, it may not be possible to assert a claim against the United States
itself in the event the agency or instrumentality issuing or guaranteeing the
security for ultimate repayment does not meet its commitments. Securities which
are not backed by the full faith and credit of the United States include, but
are not limited to, securities of the Tennessee Valley Authority, the US Postal
Service and the Resolution Funding Corporation (REFCORP), each of which has a
limited right to borrow from the US Treasury to meet its obligations, and
securities of the Federal Farm Credit System, the Federal Home Loan Banks, the
Federal Home Loan Mortgage Corporation (FHLMC) and the Student Loan Marketing
Association (Sallie Mae), the obligations of each of which may be satisfied only
by the individual credit of the issuing agency. Securities which are backed by
the full faith and credit of the United States include Treasury bills, Treasury
notes, Treasury bonds and pass-through obligations of the Government National
Mortgage Association (GNMA), the Farmers Home Administration and the
Export-Import Bank.

Mortgage-backed securities may be issued or guaranteed by GNMA, Federal National
Mortgage Association ("FNMA") (also known as Fannie Mae) and FHLMC, 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.

Variable Rate Securities. The Fund may invest in long-term maturity securities,
which are subject to frequently available put option or tender option features
under which the holder may put the security back to the issuer or its agent at a
predetermined price (generally par) after giving specified notice. The interest
rate on a variable rate security changes at intervals according to an index or a
formula or other standard measurement as stated in the bond contract. One common
method is to calculate the interest rate as a percentage of the rate paid on
selected issues of Treasury securities on specified dates. The put option or
tender option right is typically available to the investor on a weekly or
monthly basis although on some demand securities the investor has a daily right
to exercise the put option. Variable rate securities with the put option
exercisable on dates on which the variable rate changes are often called
"variable rate demand notes."

The absence of an active secondary market for certain variable and floating rate
notes could make it difficult to dispose of the instruments, and the Fund could
suffer a loss if the issuer defaults or during periods in which the Fund is not
entitled to exercise its demand rights. Variable and floating rate instruments
held by the Fund will be treated as illiquid securities subject to the 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.

Demand Instruments. Demand instruments are corporate debt securities that the
issuer must repay upon demand. Other demand instruments require a third party,
such as a dealer or bank, to repurchase the security for its face value upon
demand. The Fund treats demand instruments as short-term securities, even though
their stated maturity may extend beyond one year.

Insurance Contracts. Insurance contracts include guaranteed investment
contracts, funding agreements and annuities. The Fund treats these contracts as
fixed income securities.

Zero Coupon Securities and Deferred Interest Bonds. Zero coupon and deferred
interest bonds are debt obligations, which are issued at a significant discount
from face value. The original discount approximates the total amount of interest
the bonds will accrue and compound over the period until maturity or the first
interest accrual date at a rate of interest reflecting the market rate of the
security at the time of issuance. Zero coupon securities are redeemed at face
value at their maturity date without interim cash payments of interest or
principal. The amount of this discount is accrued over the life of the security,
and the accrual constitutes the income earned on the security for both
accounting and tax purposes. Because of these features, the market prices of
zero coupon securities are generally more volatile than the market prices of
securities that have similar maturities but that pay interest periodically.

While zero coupon bonds do not require the periodic payment of interest,
deferred interest bonds generally provide for a period of delay before the
regular payment of interest begins. Although this period of delay is different
for each deferred interest bond, a typical period is approximately one-third of
the bond's term to maturity. Such investments benefit the issuer by mitigating
its initial need for cash to meet debt service, but some also provide a higher
rate of return to attract investors who are willing to defer receipt of such
cash.

The Fund will accrue income on such investments for tax and accounting purposes,
as required, which is distributable to shareholders and which, because no cash
is generally received at the time of accrual, may require the liquidation of
other portfolio securities to satisfy the Fund's distribution obligations. See
the section entitled "Tax Information."

Short-Term Instruments.

Short-term instruments consist of foreign and domestic: (1) short-term
obligations of sovereign governments, their agencies, instrumentalities,
authorities or political subdivisions; (2) other short-term debt securities
rated AA or higher by S&P or Aa or higher by Moody's or, if unrated, deemed to
be of comparable quality in the opinion of the Advisor; (3) commercial paper;
(4) bank obligations, including negotiable certificates of deposit, time
deposits and bankers' acceptances; and (5) repurchase agreements. At the time
the Fund invests in commercial paper, bank obligations or repurchase agreements,
the issuer or the issuer's parent must have outstanding debt rated AA or higher
by S&P or Aa or higher by Moody's; outstanding commercial paper or bank
obligations rated A-1 by S&P or Prime-1 by Moody's; or, if no such ratings are
available, the instrument must be deemed to be of comparable quality in the
opinion of the Advisor. These instruments may be denominated in US dollars or in
foreign currencies. The Fund may invest in bank deposits and money market
instruments maturing in less than 12 months.

The Fund may also invest in separately traded principal and interest components
of securities guaranteed or issued by the US government or its agencies,
instrumentalities or sponsored enterprises if such components trade
independently under the Separate Trading of Registered Interest and Principal of
Securities program ("STRIPS") or any similar program sponsored by the US
government. STRIPS are sold as zero coupon securities. See the section entitled
"Zero Coupon Securities and Deferred Interest Bonds."

When, in the opinion of the Advisor, it is necessary to adopt a temporary
defensive position because of unusual and adverse market or other conditions, up
to 100% of the Fund's assets may be invested in such short-term instruments.
Under normal circumstances the Fund will purchase bank deposits and money market
instruments to invest temporary cash balances or to maintain liquidity to meet
redemptions. However, for the Fund, certificates of deposit from any one credit
institution may not account for more than 10% of its total assets. When the Fund
experiences large cash inflows, for example, through the sale of securities and
attractive investments are unavailable in sufficient quantities, the Fund may
hold short-term investments (or shares of money market mutual funds) for a
limited time pending availability of such investments.

To the extent the Fund engages in short-term trading, it may realize short-term
capital gains or losses and incur increased transaction costs, which may affect
return.

Commercial Paper. The Fund may invest its assets in commercial paper, including
variable rate demand master notes issued by US corporations or by non-US
corporations that are direct parents or subsidiaries of US corporations. Master
notes are demand obligations that permit the investment of fluctuating amounts
at varying market rates of interest pursuant to arrangements between the issuer
and a US commercial bank acting as agent for the payees of such notes. Master
notes are callable on demand, but are not marketable to third parties.
Consequently, the right to redeem such notes depends on the borrower's ability
to pay on demand. At the date of investment, commercial paper must be rated
within the highest rating category for short-term debt obligations by at least
two (unless only rated by one) NRSROs (e.g., Moody's and S&P) or, if unrated,
are of comparable quality as determined by the Advisor or under the direction of
the Fund's Board of Directors. Any commercial paper issued by a non-US
corporation must be US dollar-denominated and not subject to non-US withholding
tax at the time of purchase. Aggregate investments in non-US commercial paper of
non-US issuers cannot exceed 10% of the Fund's net assets. Since the Fund may
contain commercial paper issued by non-US corporations, it may be subject to
additional investment risks with respect to those securities that are different
in some respects from obligations of US issuers, such as currency exchange
control regulations, the possibility of expropriation, seizure or
nationalization of non-US deposits, less liquidity and more volatility in non-US
securities markets and the impact of political, social or diplomatic
developments or the adoption of other foreign government restrictions which
might adversely affect the payment of principal and interest on securities held
by the Fund. If it should become necessary, greater difficulties might be
encountered in invoking legal processes abroad than would be the case in the
United States. There may be less publicly available information about a non-US
issuer, and non-US issuers generally are not subject to uniform accounting and
financial reporting standards, practices and requirements comparable to those
applicable to US issuers.

Bank Instruments. The Fund may invest its assets in US dollar-denominated
negotiable certificates of deposit, fixed time deposits and bankers' acceptances
of banks, savings associations and savings banks organized under the laws of the
United States or any state thereof, including obligations of non-US branches of
such banks, or of non-US banks or their US or non-US branches, provided that in
each case, such bank has more than $500 million in total assets, and has an
outstanding short-term debt issue rated within the highest rating category for
short-term debt obligations by at least two (unless only rated by one) NRSROs
(e.g., Moody's and S&P) or, if unrated, are of comparable quality in the opinion
of the Advisor.

There is no additional percentage limitation with respect to investments in
negotiable certificates of deposit, fixed time deposits and bankers' acceptances
of US branches of US banks and US branches of non-US banks that are subject to
the same regulation as US banks. Since the Fund may contain US
dollar-denominated certificates of deposit, fixed time deposits and bankers'
acceptances that are issued by non-US banks and their non-US branches, the Fund
may be subject to additional investment risks with respect to those securities
that are different in some respects from obligations of US issuers, such as
currency exchange control regulations, the possibility of expropriation, seizure
or nationalization of non-US deposits, less liquidity and more volatility in
non-US securities markets and the impact of political, social or diplomatic
developments or the adoption of other foreign government restrictions which
might adversely affect the payment of principal and interest on securities held
by the Fund. If it should become necessary, greater difficulties might be
encountered in invoking legal processes abroad than would be the case in the
United States. Issuers of non-US bank obligations may be subject to less
stringent or different regulations than US bank issuers, there may be less
publicly available information about a non-US issuer, and non-US issuers
generally are not subject to uniform accounting and financial reporting
standards, practices and requirements comparable to those applicable to US
issuers. Income earned or received by the Fund from sources within countries
other than the United States may be reduced by withholding and other taxes
imposed by such countries. Tax conventions between certain countries and the
United States, however, may reduce or eliminate such taxes. All such taxes paid
by the Fund would reduce its net income available for distribution to investors
(i.e., the Fund and other investors in the Fund). While early withdrawals are
not contemplated, fixed time deposits are not readily marketable and may be
subject to early withdrawal penalties, which may vary. Assets of the Fund are
not invested in obligations of the Advisor, the Distributor, or in the
obligations of the affiliates of any such organization. Assets of the Fund are
also not invested in fixed time deposits with a maturity of over seven calendar
days, or in fixed time deposits with a maturity of from two business days to
seven calendar days if more than 10% of the Fund's net assets would be invested
in such deposits.

Repurchase Agreements. Repurchase agreements may be entered into by the Fund
only with a "primary dealer" (as designated by the Federal Reserve Bank) in US
government securities. This is an agreement in which the seller (the "Lender")
of a security agrees to repurchase from the Fund the security sold at a mutually
agreed upon time and price. As such, it is viewed as the lending of money to the
Lender. The resale price normally is in excess of the purchase price, reflecting
an agreed upon interest rate. The rate is effective for the period of time
assets of the Fund are invested in the agreement and is not related to the
coupon rate on the underlying security. The period of these repurchase
agreements is usually short, from overnight to one week, and at no time are
assets of the Fund invested in a repurchase agreement with a maturity of more
than one year. The securities which are subject to repurchase agreements,
however, may have maturity dates in excess of one year from the effective date
of the repurchase agreement. The Fund always receives as collateral securities
which are issued or guaranteed by the US government, its agencies or
instrumentalities. Collateral is marked to market daily and has a market value
including accrued interest at least equal to 100% of the dollar amount invested
on behalf of the Fund in each agreement along with accrued interest. Payment for
such securities is made for the Fund only upon physical delivery or evidence of
book-entry transfer to the account of the Fund's custodian. If the Lender
defaults, the Fund might incur a loss if the value of the collateral securing
the repurchase agreement declines and might incur disposition costs in
connection with liquidating the collateral. In addition, if bankruptcy
proceedings are commenced with respect to the Lender, realization upon the
collateral on behalf of the Fund may be delayed or limited in certain
circumstances. A repurchase agreement with more than seven days to maturity may
not be entered into by the Fund if, as a result, more than 10% of the Fund's net
assets would be invested in such repurchase agreements together with any other
investment for which market quotations are not readily available.

Reverse Repurchase Agreements. Reverse repurchase agreements may be entered into
by the Fund only with a "primary dealer" (as designated by the Federal Reserve
Bank) in US government securities. This is an agreement in which the Fund agrees
to repurchase securities sold by it at a mutually agreed upon time and price. As
such, it is viewed as the borrowing of money by the Fund. Proceeds of borrowings
under reverse repurchase agreements are available for investment and other
purposes for the Fund. Such purposes may involve the speculative factor known as
"leverage". If interest rates rise during the term of a reverse repurchase
agreement utilized for leverage, the value of the securities to be repurchased
by the Fund as well as the value of securities purchased with the proceeds will
decline. Proceeds of a reverse repurchase transaction are not invested for a
period which exceeds the duration of the reverse repurchase agreement. A reverse
repurchase agreement is not entered into by the Fund if, as a result, more than
one- third of the market value of the Fund's total assets, less liabilities
other than the obligations created by reverse repurchase agreements, is engaged
in reverse repurchase agreements. In the event that such agreements exceed, in
the aggregate, one-third of such market value, the amount of the Fund's
obligations created by reverse repurchase agreements is reduced within three
days thereafter (not including Sundays and holidays) or such longer period as
the SEC may prescribe.

Derivative Securities

The Fund may invest in various instruments that are commonly known as
"derivatives." Generally, a derivative is a financial arrangement, the value of
which is based on, or "derived" from, a traditional security, asset or market
index. Some "derivatives" such as mortgage-related and other asset-backed
securities are in many respects like any other investment, although they may be
more volatile and/or less liquid than more traditional debt securities. There
are, in fact, many different types of derivatives and many different ways to use
them. There is a range of risks associated with those uses. For example, the
Fund may use futures and options as a low-cost method of gaining exposure to a
particular securities market without investing directly in those securities and
for traditional hedging purposes to attempt to protect the Fund from exposure to
changing interest rates, securities prices or currency exchange rates and for
cash management or other investment purposes. The use of derivatives may result
in leverage, which tends to magnify the effects of an instrument's price changes
as market conditions change. Leverage involves the use of a small amount of
money to control a large amount of financial assets, and can in some
circumstances lead to significant losses. The Fund will limit the leverage
created by its use of derivatives for investment purposes by "covering" such
positions as required by the SEC. The Advisor may use derivatives for hedging
and risk management purposes, such as in circumstances where the Advisor
believes they offer an economical means of gaining exposure to a particular
asset class but not for speculation. In addition, derivatives will not be used
to acquire exposure to changes in the value of assets or indexes that by
themselves would not be purchased for the Fund. The use of derivatives for
non-hedging purposes may be considered speculative.

The Fund's investment in options, futures or forward contracts and similar
strategies depends on the Advisor's judgment as to the potential risks and
rewards of different types of strategies. Options and futures can be volatile
investments, and may not perform as expected. If the Advisor applies a hedge at
an inappropriate time or judges price trends incorrectly, options and futures
strategies may lower the Fund's return. The Fund could also experience losses if
the prices of its options and futures positions were poorly correlated with its
other investments, or if it could not close out its positions because of an
illiquid secondary market. Options and futures traded on foreign exchanges
generally are not regulated by US authorities, and these exchanges may offer
less liquidity and less protection to the Fund in the event of default by the
other party to the contract.

Many derivative contracts are traded on securities or commodities exchanges.
Most derivative contracts bought and sold by the Fund must be admitted to
official listing on a recognized futures or securities exchange and the
securities underlying the options must be within the applicable investment
objectives and policies of the Fund. These exchanges set all the terms of the
contract except for the price. Investors make payments due under their contracts
through the exchange. Most exchanges require investors to maintain margin
accounts through their brokers to cover their potential obligations to the
exchange. Parties to the contract make (or collect) daily payments to the margin
accounts to reflect losses (or gains) in the value of their contracts (marked to
market). This protects investors against potential defaults by the counterparty.
Trading contracts on an exchange also allows investors to close out their
contracts by entering into offsetting contracts. These options place greater
reliance on the dealer to fulfill the terms of the options, and therefore entail
greater risk to the Fund.

Transactions in options, futures contracts, options on futures contracts and
forward contracts entered into for non-hedging purposes involve greater risk and
could result in losses which are not offset by gains on other portfolio assets.

Options on Securities. The Fund may purchase and write (sell) put and call
options on stocks. Options are rights, but not obligations, to buy or sell an
underlying asset for a specified price (the exercise price) during, or at the
end of, a specified period. A call option gives the purchaser of the option the
right (but not the obligation) to buy, and obligates the writer to sell, the
underlying stock at the exercise price at any time during the option period.
Similarly, a put option gives the purchaser of the option the right (but not the
obligation) to sell, and obligates the writer to buy, the underlying stock at
the exercise price at any time during the option period.

The Fund may write (sell) covered call and put options to a limited extent on
its portfolio securities ("covered options") in an attempt to increase income
through the premiums it receives for writing the option(s). However, in return
for the premium, the Fund may forgo the benefits of appreciation on securities
sold or may pay more than the market price on securities acquired pursuant to
call and put options written by the Fund.

A call option written by the Fund is "covered" if the Fund owns the underlying
security covered by the call or has an absolute and immediate right to acquire
that security without additional cash consideration (or for additional cash
consideration held in a segregated account by its custodian) upon conversion or
exchange of other securities held in its portfolio. A call option is also
covered if the Fund holds a call option on the same security and in the same
principal amount as the written call option where the exercise price of the call
option so held (a) is equal to or less than the exercise price of the written
call option or (b) is greater than the exercise price of the written call option
if the difference is segregated by the Fund in cash or liquid securities.

When the Fund writes a covered call option, it gives the purchaser of the option
the right to buy the underlying security at the price specified in the option
(the "exercise price") by exercising the option at any time during the option
period. If the option expires unexercised, the Fund will realize income in an
amount equal to the premium received for writing the option. If the option is
exercised, a decision over which the Fund has no control, the Fund must sell the
underlying security to the option holder at the exercise price. By writing a
covered call option, the Fund forgoes, in exchange for the premium less the
commission ("net premium"), the opportunity to profit during the option period
from an increase in the market value of the underlying security above the
exercise price. In addition, the Fund may continue to hold a stock which might
otherwise have been sold to protect against depreciation in the market price of
the stock.

When the Fund writes a covered put option, it gives the purchaser of the option
the right to sell the underlying security to the Fund at the specified exercise
price at any time during the option period. If the option expires unexercised,
the Fund will realize income in the amount of the net premium received for
writing the option. If the put option is exercised, a decision over which the
Fund has no control, the Fund must purchase the underlying security from the
option holder at the exercise price. By writing a covered put option, the Fund,
in exchange for the net premium received, accepts the risk of a decline in the
market value of the underlying security below the exercise price. The Fund will
only write put options involving securities for which a determination is made at
the time the option is written that the Fund wish to acquire the securities at
the exercise price.

The Fund may terminate its obligation as a writer of a call or put option by
purchasing an option with the same exercise price and expiration date as the
option previously written. This transaction is called a "closing purchase
transaction." The Fund will realize a profit or loss on a closing purchase
transaction if the amount paid to purchase an option is less or more, as the
case may be, than the amount received from the sale thereof. To close out a
position as a purchaser of an option, the Fund may enter into a "closing sale
transaction" which involves liquidating the Fund's position by selling the
option previously purchased. Where the Fund cannot effect a closing purchase
transaction, it may be forced to incur brokerage commissions or dealer spreads
in selling securities it receives or it may be forced to hold underlying
securities until an option is exercised or expires.

When the Fund writes an option, an amount equal to the net premium received by
the Fund is included in the liability section of the Fund's Statement of Assets
and Liabilities as a deferred credit. The amount of the deferred credit will be
subsequently marked to market to reflect the current market value of the option
written. The current market value of a traded option is the last sale price or,
in the absence of a sale, the mean between the closing bid and asked price. If
an option expires on its stipulated expiration date or if the Fund enters into a
closing purchase transaction, the Fund will realize a gain (or loss if the cost
of a closing purchase transaction exceeds the premium received when the option
was sold), and the deferred credit related to such option will be eliminated. If
a call option is exercised, the Fund will realize a gain or loss from the sale
of the underlying security and the proceeds of the sale will be increased by the
premium originally received. The writing of covered call options may be deemed
to involve the pledge of the securities against which the option is being
written. Securities against which call options are written will be identified on
the Fund's books.

The Fund may also purchase call and put options on any securities in which it
may invest. The Fund would normally purchase a call option in anticipation of an
increase in the market value of such securities. The purchase of a call option
would entitle the Fund, in exchange for the premium paid, to purchase a security
at a specified price during the option period. The Fund would ordinarily have a
gain if the value of the securities increased above the exercise price
sufficiently to cover the premium and would have a loss if the value of the
securities remained at or below the exercise price during the option period.

The Fund would normally purchase put options in anticipation of a decline in the
market value of securities in its portfolio ("protective puts") or securities of
the type permitted to invest. The purchase of a put option would entitle the
Fund, in exchange for the premium paid, to sell a security, which may or may not
be held by the Fund, at a specified price during the option period. The purchase
of protective puts is designed merely to offset or hedge against a decline in
the market value of securities held by the Fund. Put options also may be
purchased by the Fund for the purpose of affirmatively benefiting from a decline
in the price of securities that the Fund does not own. The Fund would ordinarily
recognize a gain if the value of the securities decreased below the exercise
price sufficiently to cover the premium and would recognize a loss if the value
of the securities remained at or above the exercise price. Gains and losses on
the purchase of protective put options would tend to be offset by countervailing
changes in the value of underlying portfolio securities.

The hours of trading for options on securities may not conform to the hours
during which the underlying securities are traded. To the extent that the option
markets close before the markets for the underlying securities, significant
price and rate movements can take place in the underlying securities markets
that cannot be reflected in the option markets. It is impossible to predict the
volume of trading that may exist in such options, and there can be no assurance
that viable exchange markets will develop or continue.

The staff of the SEC has taken the position that, in general, purchased OTC
options and the underlying securities used to cover written OTC options are
illiquid securities.

There is no limitation on the value of the options that may be purchased or
written by the Fund. However, the strike prices of the securities options,
together with the strike prices of the securities that underlie other securities
options already purchased or granted for the account of the Fund, may not exceed
20% of the net assets of the Fund. Options on securities may be purchased or
granted to a third party only to the extent that the strike prices of such
options, together with the strike prices of options on securities of the same
issuer already purchased by or granted for the account of the Fund, do not
exceed 10% of the net assets of the Fund. Options on securities may be written
(sold) only to the extent that the strike prices of such options, together with
the strike prices of options on securities of the same issuer already written
for the account of the Fund, do not exceed 2% of the net assets of the Fund.
When an option transaction is offset by a back- to-back transaction (e.g., where
the Fund writes a put option on a security and purchases a put option on the
same security having the same expiration date), these two transactions will not
be counted for purposes of the limits set forth in this paragraph.

Options on Securities Indices. The Fund may also purchase and write
exchange-listed and OTC put and call options on securities indices. A securities
index measures the movement of a certain group of securities by assigning
relative values to the securities included in the index, fluctuating with
changes in the market values of the securities included in the index. Some
securities index options are based on a broad market index, such as the NYSE
Composite Index, or a narrower market index such as the Standard & Poor's 100.
Indices may also be based on a particular industry or market segment.

Options on securities indices are similar to options on securities except that
(1) the expiration cycles of securities index options are monthly, while those
of securities options are currently quarterly, and (2) the delivery requirements
are different. Instead of giving the right to take or make delivery of stock at
a specified price, an option on a securities index gives the holder the right to
receive a cash "exercise settlement amount" equal to (a) the amount, if any, by
which the fixed exercise price of the option exceeds (in the case of a put) or
is less than (in the case of a call) the closing value of the underlying index
on the date of exercise, multiplied by (b) a fixed "index multiplier." Receipt
of this cash amount will depend upon the closing level of the securities index
upon which the option is based being greater than, in the case of a call, or
less than, in the case of a put, the exercise price of the index and the
exercise price of the option times a specified multiple. The writer of the
option is obligated, in return for the premium received, to make delivery of
this amount. Securities index options may be offset by entering into closing
transactions as described above for securities options.

As discussed in "Options on Securities," the Fund would normally purchase a call
option in anticipation of an increase in the market value of the relevant index.
The purchase of a call option would entitle the Fund, in exchange for the
premium paid, to purchase the underlying securities at a specified price during
the option period. The Fund would ordinarily have a gain if the value of the
underlying securities increased above the exercise price sufficiently to cover
the premium and would have a loss if the value of the securities remained at or
below the exercise price during the option period.

As discussed in "Options on Securities," the Fund would normally purchase put
options in anticipation of a decline in the market value of the relevant index
("protective puts"). The purchase of a put option would entitle the Fund, in
exchange for the premium paid, to sell the underlying securities at a specified
price during the option period. The purchase of protective puts is designed
merely to offset or hedge against a decline in the market value of the index.
The Fund would ordinarily recognize a gain if the value of the index decreased
below the exercise price sufficiently to cover the premium and would recognize a
loss if the value of the index remained at or above the exercise price. Gains
and losses on the purchase of protective put options would tend to be offset by
countervailing changes in the value of the index.

Because the value of an index option depends upon movements in the level of the
index rather than the price of a particular stock, whether the Fund will realize
a gain or loss from the purchase or writing of options on an index depends upon
movements in the level of stock prices in the stock market generally or, in the
case of certain indices, in an industry or market segment, rather than movements
in the price of a particular stock. Accordingly, successful use by the Fund of
options on stock indices will be subject to the Advisor's ability to correctly
predict movements in the direction of the stock market generally or of a
particular industry. This requires different skills and techniques than
predicting changes in the price of individual stocks.

Options on securities indices entail risks in addition to the risks of options
on securities. The absence of a liquid secondary market to close out options
positions on securities indices is more likely to occur, although the Fund
generally will purchase or write such an option only if the Advisor believes the
option can be closed out. Use of options on securities indices also entails the
risk that trading in such options may be interrupted if trading in certain
securities included in the index is interrupted. The Fund will not purchase such
options unless the Advisor believes the market is sufficiently developed such
that the risk of trading in such options is no greater than the risk of trading
in options on securities. Price movements in the Fund may not correlate
precisely with movements in the level of an index and, therefore, the use of
options on indices cannot serve as a complete hedge. Because options on
securities indices require settlement in cash, the Advisor may be forced to
liquidate portfolio securities to meet settlement obligations. The Fund's
activities in index options may also be restricted by the requirements of the
Internal Revenue Code of 1986, as amended (the "Code"), for qualification as a
regulated investment company.

In addition, the hours of trading for options on the securities indices may not
conform to the hours during which the underlying securities are traded. To the
extent that the option markets close before the markets for the underlying
securities, significant price and rate movements can take place in the
underlying securities markets that cannot be reflected in the option markets. It
is impossible to predict the volume of trading that may exist in such options,
and there can be no assurance that viable exchange markets will develop or
continue.

Options on Foreign Securities Indices. The Fund may purchase and write put and
call options on foreign stock indices listed on domestic and foreign stock
exchanges. The Fund may also purchase and write OTC options on foreign stock
indices.

The Fund may, to the extent allowed by federal and state securities laws, invest
in securities indices instead of investing directly in individual non-US
securities. The Fund may also use foreign stock index options for hedging
purposes.

Futures Contracts and Options on Futures Contracts. The Fund may enter into
futures contracts on securities, securities indices, foreign currencies and
interest rates. The Fund may also purchase and write (sell) options thereon
which are traded on exchanges designated by the Commodity Futures Trading
Commission (the "CFTC") or, if consistent with CFTC regulations, on foreign
exchanges. These futures contracts are standardized contracts for the future
delivery of, among other things, a commodity, a non-US currency, an interest
rate sensitive security or, in the case of index futures contracts or certain
other futures contracts, a cash settlement with reference to a specified
multiplier times the change in the index. An option on a futures contract gives
the purchaser the right (but not the obligation), in return for the premium
paid, to assume a position in a futures contract.

The Fund may enter into futures contracts and options on futures contracts on
securities, securities indices and currencies both to manage its exposure to
changing interest rates, security prices and currency exchange rates and as an
efficient means of managing allocations between asset classes. The Fund has
claimed exclusion from the definition of the term "commodity pool operator"
adopted by the CFTC and the National Futures Association, which regulate trading
in the futures markets. Therefore, the Fund is not subject to commodity pool
operator registration and regulation under the Commodity Exchange Act.

The successful use of futures contracts and options thereon draws upon the
Advisor's skill and experience with respect to such instruments and is subject
to special risk considerations. A liquid secondary market for any futures or
options contract may not be available when a futures or options position is
sought to be closed. In addition, there may be an imperfect correlation between
movements in the futures or options markets and movement in the securities or
currency in the Fund. Successful use of futures or options contracts is further
dependent on the Advisor's ability to correctly predict movements in the
securities or foreign currency markets and no assurance can be given that its
judgment will be correct.

Futures Contracts. Futures contracts provide for the future sale by one party
and purchase by another party of a specified amount of an underlying asset at a
specified price, date, and time. Entering into a contract to buy an underlying
asset is commonly referred to as buying a contract or holding a long position in
the asset. Entering into a contract to sell an underlying asset is commonly
referred to as selling a contract or holding a short position in the asset.
Futures contracts are considered to be commodity contracts.

At the same time a futures contract is entered into, the Fund must allocate cash
or liquid securities as a deposit payment ("initial margin"). When the Fund
purchases or sells a futures contract, it is required to make an initial margin
deposit. Although the amount may vary, initial margin can be as low as 1% or
less of the notional amount of the contract. Additional margin may be required
as the contract fluctuates in value. Since the amount of margin is relatively
small compared to the value of the securities covered by a futures contract, the
potential for gain or loss on a futures contract is much greater than the amount
of the Fund's initial margin deposit. Daily thereafter, the futures contract is
valued and the payment of "variation margin" may be required, since each day the
Fund would provide or receive cash that reflects any decline or increase in the
contract's value.

At the time of delivery of securities pursuant to such a contract on an interest
rate sensitive security, adjustments may be made to recognize differences in
value arising from the delivery of securities with a different interest rate
from that specified in the contract. In some, but not many, cases, securities
called for by a futures contract may not have been issued when the contract was
written.

Although futures contracts (other than those that settle in cash, such as index
futures) by their terms call for the actual delivery or acquisition of the
instrument underlying the contract, in most cases the contractual obligation is
fulfilled by offsetting before the date of the contract without having to make
or take delivery of the instrument underlying the contract. The offsetting of a
contractual obligation is accomplished by entering into an opposite position in
an identical futures contract on the commodities exchange on which the futures
contract was entered into (or a linked exchange) calling for delivery in the
same month. Such a transaction, which is effected through a member of an
exchange, cancels the obligation to make or take delivery of the instrument
underlying the contract. Since all transactions in the futures market are made,
offset or fulfilled through a clearinghouse associated with the exchange on
which the contracts are traded, the Fund will incur brokerage fees when it
enters into futures contracts.

When the Fund purchases a futures contract, it agrees to purchase a specified
quantity of an underlying instrument at a specified future date and price or to
make or receive a cash payment based on the value of a securities index or a
financial instrument. When the Fund sells a futures contract, it agrees to sell
a specified quantity of the underlying instrument at a specified future date and
price or to receive or make a cash payment based on the value of a securities
index or a financial instrument. When the Fund purchases or sells a futures
contract, the value of the futures contract tends to increase and decrease in
tandem with the value of its underlying instrument or index. The price at which
the purchase and sale will take place is fixed when the Fund enters into the
contract. Futures can be held until their delivery dates or the positions can be
(and normally are) closed out, by entering into an opposing contract, before
that date.

The purpose of the acquisition or sale of a futures contract, in cases where the
Fund holds or intends to acquire fixed-income securities, is to attempt to
protect the Fund from fluctuations in interest or foreign exchange rates without
actually buying or selling fixed-income securities or foreign currencies. For
example, if interest rates were expected to increase (which thus would cause the
prices of debt securities to decline), the Fund might enter into futures
contracts for the sale of debt securities. Such a sale would have much the same
effect as selling an equivalent value of the debt securities owned by the Fund.
If interest rates increased, the value of the debt security in the Fund would
decline, but the value of the futures contracts to the Fund should increase at
approximately the same rate, thereby keeping the net asset value of the Fund
from declining as much as it otherwise would have. The Fund could accomplish a
similar result by selling debt securities and investing in bonds with short
maturities when interest rates are expected to increase. However, since the
futures market is more liquid than the cash market, the use of futures contracts
as an investment technique allows the Fund to maintain a defensive position
without having to sell its portfolio securities.

Similarly, when it is expected that interest rates may decline (thus increasing
the value of debt securities), futures contracts may be purchased to attempt to
hedge against anticipated purchases of debt securities at higher prices. Since
the fluctuations in the value of futures contracts should be similar to those of
debt securities, the Fund could take advantage of the anticipated rise in the
value of debt securities without actually buying them until the market had
stabilized. At that time, the futures contracts could be liquidated and the Fund
could then buy debt securities on the cash market.

The ordinary spreads between prices in the cash and futures market, due to
differences in the nature of those markets, are subject to distortions. First,
all participants in the futures market are subject to initial deposit and
variation margin requirements. Rather than meeting additional variation margin
requirements, investors may close futures contracts through offsetting
transactions which could distort the normal relationship between the cash and
futures markets. Second, the liquidity of the futures market depends on most
participants entering into offsetting transactions rather than making or taking
delivery. To the extent that many participants decide to make or take delivery,
liquidity in the futures market could be reduced, thus producing distortion.
Third, from the point of view of speculators, the margin deposit requirements in
the futures market are less onerous than margin requirements in the securities
market. Therefore, increased participation by speculators in the futures market
may cause temporary price distortions. Due to the possibility of distortion, a
correct forecast of securities price or general interest rate trends by the
Advisor may still not result in a successful transaction.

In addition, futures contracts entail significant risks. Although the Advisor
believes that use of such contracts will benefit the Fund, if the Advisor's
investment judgment about the general direction of interest rates or an index is
incorrect, the Fund's overall performance would be poorer than if it had not
entered into any such contract. For example, if the Fund has hedged against the
possibility of an increase in interest rates or a decrease in an index which
would adversely affect the value of securities held in its portfolio and
interest rates decrease or securities prices increase instead, the Fund will
lose part or all of the benefit of the increased value of its securities which
it has hedged because it will have offsetting losses in its futures positions.
In addition, in such situations, if the Fund has insufficient cash, it may have
to sell securities from its portfolio to meet daily variation margin
requirements. Such sales of securities may be, but will not necessarily be, at
increased prices which reflect the rising market. The Fund may have to sell
securities at a time when it may be disadvantageous to do so.

Futures Contracts on Securities Indices. The Fund may also enter into futures
contracts providing for the making and acceptance of a cash settlement based
upon changes in the value of an index of US securities or non-US securities.
This investment technique may be used as a low-cost method of gaining exposure
to a particular securities market without investing directly in those
securities, to hedge against anticipated future change in general market prices
which otherwise might either adversely affect the value of securities held by
the Fund, adversely affect the prices of securities that are intended to be
purchased at a later date for the Fund or as an efficient means of managing
allocation between asset classes. A futures contract may also be entered into to
close out or offset an existing futures position.

When used for hedging purposes, each transaction in a futures contract on a
securities index involves the establishment of a position that the Advisor
believes will move in a direction opposite to that of the investment being
hedged. If these hedging transactions are successful, the futures positions
taken for the Fund will rise in value by an amount that approximately offsets
the decline in value of the portion of the Fund's investments that are being
hedged. Should general market prices move in an unexpected manner, the full
anticipated benefits of futures contracts may not be achieved or a loss may be
realized.

For the purpose of hedging the Fund's assets, the Fund may sell (but not
purchase) stock index or interest rate futures contracts and may purchase put or
call options on futures contracts, options on securities indices and any of the
warrants described below. Any such transaction will be considered a hedging
transaction, and not subject to the limitations on non-hedging transactions
stated below, to the extent that (1) in the case of stock index futures, options
on securities indices and warrants thereon, the contract value does not exceed
the market value of the shares held by the Fund for which the hedge is intended
and such shares are admitted to official listing on a stock exchange in the
country in which the relevant futures or securities exchange is based or (2) in
the case of interest rate futures and options on securities indices and warrants
thereon, the contract value does not exceed the interest rate exposure
associated with the assets held in the applicable currency by the Fund. In
carrying out a particular hedging strategy, the Fund may sell futures contracts
and purchase options or warrants based on securities, financial instruments or
indices that have issuers, maturities or other characteristics that do not
precisely match those of the Fund's assets for which such hedge is intended,
thereby creating a risk that the futures, options or warrants position will not
mirror the performance of such assets. The Fund may also enter into transactions
in futures contracts, options on futures, options on indices and warrants for
non-hedging purposes, as described below.

Options on Futures Contracts (Including Futures Contracts on Securities
Indices). The Fund may purchase and write (sell) options on futures contracts
for hedging purposes. For example, as with the purchase of futures contracts,
when the Fund is not fully invested, it may purchase a call option on an
interest rate sensitive futures contract to hedge against a potential price
increase on debt securities due to declining interest rates.

The purchase of a call option on a futures contract is similar in some respects
to the purchase of a call option on an index or individual security. Depending
on the pricing of the option compared to either the price of the futures
contract upon which it is based or the price of the underlying debt securities,
it may or may not be less risky than ownership of the futures contract or
underlying debt securities.

The writing of a call option on a futures contract may constitute a partial
hedge against declining prices of the underlying portfolio securities which are
the same as or correlate with the security or foreign currency that is
deliverable upon exercise of the futures contract. If the futures price at
expiration of the option is below the price specified in the premium received
for writing the option ("exercise price"), the Fund will retain the full amount
of the net premium (the premium received for writing the option less any
commission), which provides a partial hedge against any decline that may have
occurred in the Fund's holdings.

The writing of a put option on an index futures contract may constitute a
partial hedge against increasing prices of the underlying securities or foreign
currency that are deliverable upon exercise of the futures contract. If the
futures price at expiration of the option is higher than the exercise price, the
Fund will retain the full amount of the net premium, which provides a partial
hedge against any increase in the price of securities that the Fund intends to
purchase.

If a put or call option the Fund has written is exercised, the Fund will incur a
loss that will be reduced by the amount of the net premium it receives.
Depending on the degree of correlation between changes in the value of its
portfolio securities and changes in the value of its futures positions, the
Fund's losses from existing options on futures may to some extent be reduced or
increased by changes in the value of portfolio securities.

The purchase of a call or put option on a futures contract with respect to an
index is similar in some respects to the purchase of a call or protective put
option on an index. For example, the Fund may purchase a put option on an index
futures contract to hedge against the risk of declining securities values.

The amount of risk the Fund assumes when it purchases an option on a futures
contract with respect to an index is the premium paid for the option plus
related transaction costs. In addition to the correlation risks discussed above,
the purchase of such an option also entails the risk that changes in the value
of the underlying futures contract will not be fully reflected in the value of
the option purchased.

The Fund may purchase or sell stock index or interest rate futures contracts,
put or call options on futures, options on securities indices and warrants other
than for hedging purposes. The Fund may enter into these transactions for
non-hedging purposes only to the extent that (1) the underlying contract values,
together with the contract values of any instrument then held by the Fund for
non-hedging purposes, do not exceed in the aggregate 20% of the net assets of
the Fund and (2) such instruments relate to categories of assets which the Fund
is permitted to hold.

Warrants on Futures Contracts. The Fund may purchase warrants which like options
on futures contracts and options on securities indices, entitle the holder to
purchase or sell a futures contract or to a cash payment reflecting the price
fluctuation in an index of securities. The Fund may also purchase warrants that
entitle the holder to a cash payment reflecting the fluctuation in the value of
certain financial futures contracts. Warrants on futures contracts and warrants
on securities indices differ from the equivalent options in that: (1) they are
securities issued by a financial institution/special purpose issuer rather than
contracts entered into with a futures exchange and (2) they are traded on a
securities exchange rather than on a futures exchange. The use of warrants will
generally entail the same risks that are associated with the Fund's positions in
options on futures and options on securities indices.

Liquidity of Options and Futures Contracts. There is no assurance that a liquid
market will exist for any particular option or futures contract at any
particular time even if the contract is traded on an exchange. In addition,
exchanges may establish daily price fluctuation limits for options and futures
contracts and may halt trading if a contract's price moves up or down more than
the limit in a given day. On volatile trading days when the price fluctuation
limit is reached or a trading halt is imposed, it may be impossible for the Fund
to enter into new positions or close out existing positions. If the market for a
contract is not liquid because of price fluctuation limits or otherwise, it
could prevent prompt liquidation of unfavorable positions, and could potentially
require the Fund to continue to hold a position until delivery or expiration
regardless of changes in its value. As a result, the Fund's access to other
assets held to cover its options or futures positions could also be impaired.

Combined Positions. The Fund may purchase and write options in combination with
each other, or in combination with futures or forward contracts, to adjust the
risk and return characteristics of the overall position. For example, the Fund
may purchase a put option and write a call option on the same underlying
instrument, in order to construct a combined position whose risk and return
characteristics are similar to selling a futures contract. Another possible
combined position would involve writing a call option at one strike price and
buying a call option at a lower price, in order to reduce the risk of the
written call option in the event of a substantial price increase. Because
combined options positions involve multiple trades, they result in higher
transaction costs and may be more difficult to open and close out.

Position Limits. Futures exchanges can limit the number of futures and options
on futures contracts that can be held or controlled by an entity. If an adequate
exemption cannot be obtained, the Fund or the Advisor may be required to reduce
the size of its futures and options positions or may not be able to trade a
certain futures or options contract in order to avoid exceeding such limits.

Other Limitations. The Commodity Exchange Act prohibits US persons, such as the
Fund, from buying or selling certain foreign futures contracts or options on
such contracts. Accordingly, the Fund will not engage in foreign futures or
options transactions unless the contracts in question may lawfully be purchased
and sold by US persons in accordance with applicable CFTC regulations or CFTC
staff advisories, interpretations and no- action letters. The Fund has claimed
an exclusion from the definition of the term "commodity pool operator" under the
Commodity Exchange Act ("CEA") and therefore is not subject to commodity pool
operator registration and regulation under the CEA.

Swap Agreements. The Fund may enter into swaps relating to indices, currencies,
interest rates, equity and debt interests of non-US issuers without limit. A
swap transaction is an agreement between the Fund and a counterparty to act in
accordance with the terms of the swap contract. Index swaps involve the exchange
by the Fund with another party of the respective amounts payable with respect to
a notional principal amount related to one or more indexes. Currency swaps
involve the exchange of cash flows on a notional amount of two or more
currencies based on their relative future values. An equity swap is an agreement
to exchange streams of payments computed by reference to a notional amount based
on the performance of a basket of stocks or a single stock. The Fund may enter
into these transactions to preserve a return or spread on a particular
investment or portion of its assets, to protect against currency fluctuations,
as a duration management technique or to protect against any increase in the
price of securities the Fund anticipates purchasing at a later date. The Fund
may also use such transactions for speculative purposes, such as to obtain the
price performance of a security without actually purchasing the security in
circumstances, for example, where the subject security is illiquid, is
unavailable for direct investment or is available only on less attractive terms.
Swaps have special risks including possible default by the counterparty to the
transaction, illiquidity and, where swaps are used as hedges, the risk that the
use of a swap could result in losses greater than if the swap had not been
employed.

The Fund will usually enter into swaps 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 agreement, with the Fund receiving or paying, as the case may
be, only the net amount of the two payments). Swaps do not involve the delivery
of securities, other underlying assets or principal. Accordingly, the risk of
loss with respect to swaps is limited to the net amount of payments that the
Fund is contractually obligated to make. If the counterparty to a swap defaults,
the Fund's risk of loss consists of the net amount of payments that the Fund is
contractually entitled to receive. Where swaps are entered into for good faith
hedging purposes, the Advisor believes such obligations do not constitute senior
securities under the 1940 Act and, accordingly, will not treat them as being
subject to the Fund's borrowing restrictions.

Whether the use of swap agreements will be successful in furthering the Fund's
investment objective will depend on the Advisor's ability to correctly predict
whether certain types of investments are likely to produce greater returns than
other investments. Swap agreements may be considered to be illiquid because they
are two party contracts and because they may have terms of greater than seven
days. Moreover, the Fund bears the risk of loss of the amount expected to be
received under a swap agreement in the event of the default or bankruptcy of a
swap agreement counterparty. The Fund will minimize this risk by entering into
agreements that mark to market no less frequently than quarterly. In addition,
the Fund will enter into swap agreements only with counterparties that would be
eligible for consideration as repurchase agreement counterparties under the
Fund's repurchase agreement guidelines. Certain restrictions imposed on the Fund
by the Code may limit the Fund's ability to use swap agreements. Swap agreements
also bear the risk that the Fund will not be able to meet its obligation to the
counterparty. This risk will be mitigated by the Fund investing in the specific
asset for which it is obligated to pay a return.

Certain swap agreements are exempt from most provisions of the CEA and,
therefore, are not regulated as futures or commodity option transactions under
the CEA, pursuant to regulations approved by the CFTC effective February 22,
1993. To qualify for this exemption, a swap agreement must be entered into by
eligible participants, which includes the following, provided the participant's
total assets exceed established levels: a bank or trust company, savings
association or credit union, insurance company, investment company subject to
regulation under the 1940 Act, commodity pool, corporation, partnership,
proprietorship, organization, trust or other entity, employee benefit plan,
governmental entity, broker-dealer, futures commission merchant, natural person,
or regulated foreign person. To be eligible, natural persons and most other
entities must have total assets exceeding $10 million; commodity pools and
employee benefit plans must have assets exceeding $5 million. In addition, an
eligible swap transaction must meet three conditions. First, the swap agreement
may not be part of a fungible class of agreements that are standardized as to
their material economic terms. Second, the creditworthiness of parties with
actual or potential obligations under the swap agreement must be a material
consideration in entering into or determining the terms of the swap agreement,
including pricing, cost or credit enhancement terms. Third, swap agreements may
not be entered into and traded on or through a multilateral transaction
execution facility.

This exemption is not exclusive, and participants may continue to rely on
existing exclusions for swaps, such as the Policy Statement issued in July 1989
which recognized a "safe harbor" for swap transactions from regulation as
futures or commodity option transactions under the CEA or its regulations. The
Policy Statement applies to swap transactions settled in cash that: (1) have
individually tailored terms; (2) lack exchange style offset and the use of a
clearing organization or margin system; (3) are undertaken in conjunction with a
line of business; and (4) are not marketed to the public.

Swap agreements are sophisticated instruments that can take many different
forms, and are known by a variety of names including caps, floors, and collars.
Common swap agreements that the Fund may use include:

Interest Rate Swaps. Interest rate swaps are contracts in which one party agrees
to make regular payments equal to a fixed or floating interest rate multiplied
by a stated principal amount of fixed income securities, in return for payments
equal to a different fixed or floating rate multiplied by the same principal
amount, for a specific period. For example, a $10 million LIBOR swap would
require one party to pay the equivalent of the London Interbank Offer Rate of
interest (which fluctuates) on a $10 million principal amount in exchange for
the right to receive the equivalent of a stated fixed rate of interest on a $10
million principal amount.

Caps and Floors. Caps and floors are contracts in which one party agrees to make
payments only if an interest rate or index goes above (cap) or below (floor) a
certain level in return for a fee from the other party.

Total Return Swaps. Total return swaps are contracts in which one party agrees
to make payments of the total return from the underlying asset or currency
during the specified period, in return for payments equal to a fixed or floating
rate of interest or the total return or currency from another underlying asset.

Securities of Non-US Based Issuers.

Foreign Securities. The Fund invests primarily in foreign securities. 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 may apply to the SEC
for a determination that an emergency is present. During the period commencing
from the 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 the Fund's Board.

Certain of the foregoing risks may also apply to some extent to securities of US
issuers that are denominated in foreign currencies or that are traded in foreign
markets, or securities of US issuers having significant foreign operations.

The Fund may invest in securities of non-US based issuers in the form of
American Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"),
Global Depositary Receipts ("GDRs") and International Depositary Receipts
("IDRs") or other similar securities representing ownership of securities of
non-US based issuers held in trust by a bank or similar financial institution.
EDRs and IDRs are receipts issued in Europe typically by non-US banking and
trust companies that evidence ownership of either foreign or US securities. GDRs
are receipts issued by either a US or non-US banking institution evidencing
ownership of the underlying non-US securities. Generally, ADRs, in registered
form, are designed for use in US securities markets and EDRs, GDRs and IDRs, in
bearer form, are designed for use in European and international securities
markets. An ADR, EDR, GDR or IDR may be denominated in a currency different from
the currency in which the underlying foreign security is denominated. Designed
for use in US, European and international securities markets, respectively,
ADRs, EDRs, GDRs and IDRs are alternatives to the purchase of the underlying
securities in their national markets and currencies, but are subject to the same
risks as the non-US securities to which they relate.

With respect to certain countries in which capital markets are either less
developed or not easily accessed, investments by the Fund may be made through
investment in other investment companies that in turn are authorized to invest
in the securities of such countries. Investment in other investment companies is
generally limited in amount by the 1940 Act, will involve the indirect payment
of a portion of the expenses (including advisory fees of such other investment
companies) and may result in a duplication of fees and expenses.

The Fund considers an issuer to be based outside the United States if:

o it is organized under the laws of, or has a principal office located in,
another country; or

o the principal trading market for its securities is in another country; or

o it (or its subsidiaries) derived in its most current fiscal year at least 50%
of its total assets, capitalization, gross revenue or profit from goods
produced, services performed, or sales made a country other than the US.

Foreign Government Debt Securities. The Fund may invest in foreign government
debt securities which include debt obligations issued or guaranteed by national,
state or provincial governments or similar political subdivisions and
quasi-governmental and supranational entities (collectively, "sovereign debt
obligations"). Sovereign debt obligations, especially those of developing
countries, may involve a high degree of risk. The issuer of such an obligation
or the governmental authorities that control the repayment of the obligation may
be unable or unwilling to repay principal and interest when due and may require
renegotiation or rescheduling of debt payments. In addition, prospects for
repayment of principal and interest may depend on political as well as economic
factors.

Quasi-governmental and supranational entities include international
organizations designated or supported by governmental entities to promote
economic reconstruction or development and international banking institutions
and related government agencies. Currently, the Fund intends to invest only in
obligations issued or guaranteed by the Asian Development Bank, the
Inter-American Development Bank, the World Bank, the African Development Bank,
the European Union, the European Investment Bank and the Nordic Investment Bank.

Brady Bonds. The Fund may invest in so-called "Brady Bonds," which are issued as
part of a debt restructuring in exchange for cash and certain of the country's
outstanding commercial bank loans. Brady Bonds may be collateralized or
uncollateralized, are issued in various currencies (primarily US dollars) and
are actively traded in the over-the-counter secondary market.

US dollar-denominated collateralized Brady Bonds, which may be fixed rate par
bonds or floating rate discount bonds, are collateralized in full as to
principal by US Treasury zero coupon bonds that have the same maturity as the
stated bonds. Interest payments on such bonds are generally collateralized by
cash or liquid 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, is initially equal to at least one year's rolling interest
payments based on the applicable interest rate at the time and adjusted at
regular intervals thereafter.

The International Monetary Fund (IMF) typically negotiates the exchange to cure
or avoid a default by restructuring the terms of the bank loans. However,
neither the US government nor the IMF has guaranteed the repayment of any Brady
Bond.

Country Investing. The Fund will focus its investments in Japanese equity
securities. Focusing the Fund's investments in a particular country will subject
the Fund (to a greater extent than if its investments were more diversified) to
the risks of adverse securities markets, exchange rates and social, political or
economic developments which may occur in that particular country.

Currency Management

In connection with the Fund's investments denominated in foreign currencies, the
Advisor may choose to utilize a variety of currency management strategies. The
Advisor seeks to take advantage of different yield, risk and return
characteristics that different currencies, currency denominations and countries
can provide to US investors. In doing so, the Advisor will consider such factors
as the outlook for currency relationships, current and anticipated interest
rates, levels of inflation within various countries, prospects for relative
economic growth and government policies influencing currency exchange rates and
business conditions.

Currency Exchange Transactions. Because the Fund may buy and sell securities
denominated in currencies other than the US dollar and receive interest,
dividends and sale proceeds in currencies other than the US dollar, the Fund
from time to time may enter into currency exchange transactions to convert to
and from different currencies and to convert foreign currencies to and from US
dollars. The Fund either enters into these transactions on a spot (i.e., cash)
basis at the spot rate prevailing in the currency exchange market or uses
forward currency exchange contracts (discussed below) to purchase or sell
currencies.

Currency Hedging. The Fund's currency hedging strategies will be limited to
hedging involving either specific transactions or portfolio positions.
Transaction hedging is the purchase or sale of forward currency with respect to
specific receivables or payables of the Fund generally accruing in connection
with the purchase or sale of its portfolio securities. Position hedging is the
sale of forward currency with respect to portfolio security positions. The Fund
may not position hedge to an extent greater than the aggregate market value (at
the time of entering into the hedge) of the hedged securities.

Proper currency hedging is important because a decline in the US dollar value of
a foreign currency in which the Fund's securities are denominated will reduce
the US dollar value of the securities, even if their value in the foreign
currency remains constant. The use of currency hedges does not eliminate
fluctuations in the underlying prices of the securities, but it does establish a
rate of exchange that can be achieved in the future. For example, in order to
protect against diminutions in the US dollar value of non-dollar denominated
securities it holds, the Fund may purchase foreign currency put options. If the
value of the foreign currency declines, the Fund will have the right to sell the
currency for a fixed amount in dollars and will thereby offset, in whole or in
part, the adverse effect on the US dollar value of its securities that otherwise
would have resulted. Conversely, if a rise in the US dollar value of a currency
in which securities to be acquired are denominated is projected, thereby
potentially increasing the cost of the securities, the Fund may purchase call
options on the particular currency. The purchase of these options could offset,
at least partially, the effects of the adverse movements in exchange rates. The
benefit to the Fund derived from purchases of currency options, like the benefit
derived from other types of options, will be reduced by premiums and other
transaction costs. Because transactions in currency exchange are generally
conducted on a principal basis, no fees or commissions are generally involved.
Currency hedging involves some of the same risks and considerations as other
transactions with similar instruments. Although currency hedges limit the risk
of loss due to a decline in the value of a hedged currency, at the same time,
they also limit any potential gain that might result should the value of the
currency increase. If a devaluation is generally anticipated, the Fund may not
be able to contract to sell a currency at a price above the devaluation level it
anticipates.

Forward Currency Exchange Contracts. A forward currency exchange contract is an
obligation by the Fund to purchase or sell a specific currency at a future date,
which may be any fixed number of days from the date of the contract. Forward
currency exchange contracts establish an exchange rate at a future date. These
contracts are transferable in the interbank market conducted directly between
currency traders (usually large commercial banks and brokerages) and their
customers. A forward currency exchange contract may not have a deposit
requirement and may be traded at a net price without commission. Neither spot
transactions nor forward currency exchange contracts eliminate fluctuations in
the prices of the Fund's securities or in foreign exchange rates, or prevent
loss if the prices of these securities should decline.

The Fund may enter into foreign currency hedging transactions in an attempt to
protect against changes in currency exchange rates between the trade and
settlement dates of specific securities transactions, or changes in currency
exchange rates that would adversely affect a portfolio position or an
anticipated investment position. Since consideration of the prospect for
currency parities will be incorporated into the Advisor's long-term investment
decisions, the Fund will not routinely enter into currency hedging transactions
with respect to security transactions; however, the Advisor believes that it is
important to have the flexibility to enter into currency hedging transactions
when it determines that the transactions would be in the Fund's best interest.
Although these transactions tend to minimize the risk of loss due to a decline
in the value of the hedged currency, at the same time they tend to limit any
potential gain that might be realized should the value of the hedged currency
increase. The precise matching of the forward contract amounts and the value of
the securities involved will not generally be possible because the future value
of such securities in foreign currencies will change as a consequence of market
movements in the value of such securities between the date the forward contract
is entered into and the date it matures. The projection of currency market
movements is extremely difficult, and the successful execution of a hedging
strategy is highly uncertain.

While these contracts are not presently regulated by the CFTC, the CFTC may in
the future assert authority to regulate forward contracts. In such event the
Fund's ability to utilize forward contracts may be restricted. Forward contracts
may reduce the potential gain from a positive change in the relationship between
the US dollar and foreign currencies. Unanticipated changes in currency prices
may result in poorer overall performance for the Fund than if it had not entered
into such contracts. The use of currency forward contracts may not eliminate
fluctuations in the underlying US dollar equivalent value of the prices of or
rates of return on the Fund's foreign currency denominated portfolio securities
and the use of such techniques will subject the Fund to certain risks.

Options on Foreign Currencies. The Fund may write covered put and call options
and purchase put and call options on foreign currencies for the purpose of
protecting against declines in the dollar value of portfolio securities and
against increases in the dollar cost of securities to be acquired. As with other
types of options, however, the writing of an option on foreign currency will
constitute only a partial hedge up to the amount of the premium received, and
the Fund could be required to purchase or sell foreign currencies at
disadvantageous exchange rates, thereby incurring losses. The purchase of an
option on foreign currency may be used to hedge against fluctuations in exchange
rates although, in the event of exchange rate movements adverse to the Fund's
position, it may forfeit the entire amount of the premium plus related
transaction costs. In addition the Fund may purchase call options on currency
when the Advisor anticipates that the currency will appreciate in value.

The Fund may also write options on foreign currencies for the same types of
hedging purposes. For example, where the Fund anticipates a decline in the
dollar value of foreign currency denominated securities due to adverse
fluctuations in exchange rates it could, instead of purchasing a put option,
write a call option on the relevant currency. If the expected decline occurs,
the options will most likely not be exercised, and the diminution in value of
portfolio securities will be offset by the amount of the premium received.

Similarly, instead of purchasing a call option to hedge against an anticipated
increase in the dollar cost of securities to be acquired, the Fund could write
put options on the relevant currency which, if rates move in the manner
projected, will expire unexercised and allow the Fund to hedge such increased
cost up to the amount of the premium. As in the case of other types of options,
however, the writing of a foreign currency option will constitute only a partial
hedge up to the amount of the premium, and only if rates move in the expected
direction. If this does not occur, the options may be exercised and the Fund
would be required to purchase or sell the underlying currency at a loss which
may not be offset by the amount of the premium. Through the writing of options
on foreign currencies, the Fund also may be required to forego all or a portion
of the benefits which might otherwise have been obtained from favorable
movements in exchange rates.

The Fund may write covered call options on foreign currencies. A call option
written on a foreign currency by the Fund is "covered" if the Fund owns the
underlying foreign currency covered by the call or has an absolute and immediate
right to acquire that foreign currency without additional cash consideration (or
for additional cash consideration identified on the Fund's books) upon
conversion or exchange of other foreign currency held in its portfolio. A call
option is also covered if the Fund has a call on the same foreign currency and
in the same principal amount as the call written where the exercise price of the
call held (a) is equal to or less than the exercise price of the call written or
(b) is greater than the exercise price of the call written if the difference is
segregated by the Fund in cash or liquid securities.

There is no assurance that a liquid secondary market will exist for any
particular option, or at any particular time. If the Fund is unable to effect
closing purchase transactions with respect to covered options it has written,
the Fund will not be able to sell the underlying currency or dispose of assets
held in a segregated account until the options expire or are exercised.
Similarly, if the Fund is unable to effect a closing sale transaction with
respect to options it has purchased, it would have to exercise the options in
order to realize any profit and will incur transaction costs upon the purchase
or sale of the underlying currency. The Fund pays brokerage commissions or
spreads in connection with its options transactions.

As in the case of forward contracts, certain options on foreign currencies are
traded over-the-counter and involve liquidity and credit risks which may not be
present in the case of exchange-traded currency options. In some circumstances,
the Fund's ability to terminate OTC options may be more limited than with
exchange-traded options. It is also possible that broker-dealers participating
in OTC options transactions will not fulfill their obligations. The Fund intends
to treat OTC options as not readily marketable and therefore subject to its
limitations with respect to illiquid securities.

The Fund may enter into foreign currency exchange transactions in an attempt to
protect against changes in foreign currency exchange rates between the trade and
settlement dates of specific securities transactions or anticipated securities
transactions. The Fund may also enter into foreign currency transactions to
hedge currency risks associated with the assets of the Fund denominated in
foreign currencies or principally traded in foreign currencies. The Fund may
also enter into foreign currency transactions to hedge against currencies other
than the US dollar. The Fund may purchase or sell foreign currency contracts for
forward delivery. To conduct the hedging discussed above, the Fund would
generally enter into a forward contract to sell the foreign currency in which
the investment is denominated in exchange for US dollars or other currency in
which the Advisor desires to protect the value of the Fund. The Fund may also
purchase option rights for the purchase or sale of currencies or currency
futures contracts or warrants which entitle the holder to the right to purchase
or sell currencies or currency futures contracts or to receive payment of a
difference, which is measured by the performance of currencies or currency
futures contracts, provided that these option rights and warrants are admitted
to official listing on an exchange.

Additional Limitations and Risk Factors.

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 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 regulation thereunder, or orders issued by the Securities and
Exchange Commission ("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 the 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.

Liquidity. OTC derivative contracts are considered to be illiquid and generally
carry greater liquidity risk than exchange-traded contracts.

Leverage. Leverage risk is created when an investment exposes the Fund to a
level of risk that exceeds the amount invested. Changes in the value of such an
investment magnify the Fund's risk of loss and potential for gain. Leverage risk
may exist when the Fund purchases securities while it also has borrowed money.

Interest Rates. Interest rate risks apply to the Fund only to the extent it
invests in fixed income securities. Prices of fixed income securities rise and
fall in response to changes in the interest rate paid by similar securities.
Potential or anticipated changes in interest rates also may affect the value of
fixed income securities. Generally, when interest rates rise, prices of fixed
income securities fall. However, market factors, such as the demand for
particular fixed income securities, may cause the price of certain fixed income
securities to fall while the prices of other securities rise or remain
unchanged.

Interest rate changes have a greater effect on the price of fixed income
securities with longer durations. Duration measures the price sensitivity of a
fixed income security to changes in interest rates.

Credit. Credit risk is the possibility that an issuer will default on a security
by failing to pay interest or principal when due. If an issuer defaults, the
Fund will lose money. Credit risk is only a risk for the Fund if it invests in
fixed income securities or chooses to lend securities.

Many fixed income securities receive credit ratings from services such as S & P
and Moody's. These services assign ratings to securities by assessing the
likelihood of issuer default. Lower credit ratings correspond to higher credit
risk. If a security has not received a rating, the Fund must rely entirely upon
the Advisor's credit assessment.

Fixed income securities generally compensate for greater credit risk by paying
interest at a higher rate. The difference between the yield of a security and
the yield of a US Treasury security with a comparable maturity (the spread)
measures the additional interest paid for risk. Spreads may increase generally
in response to adverse economic or market conditions. A security's spread may
also increase if the security's rating is lowered, or the security is perceived
to have an increased credit risk. An increase in the spread will cause the price
of the security to decline.

Credit risk includes the possibility that a party to a transaction involving the
Fund will fail to meet its obligations. This could cause the Fund to lose the
benefit of the transaction or prevent the Fund from selling or buying other
securities to implement its investment strategies.

Risks Associated with Futures, Options and Warrants. The successful use of
futures, options and warrants depends on the ability of the Advisor to predict
the direction of the market or, in the case of hedging transactions, the
correlation between market movements and movements in the value of the Fund's
assets, and is subject to various additional risks. The investment techniques
and skills required to use futures, options and warrants successfully are
different from those required to select equity securities for investment. The
correlation between movements in the price of the futures contract, option or
warrant and the price of the securities or financial instruments being hedged is
imperfect and the risk from imperfect correlation increases, with respect to
stock index futures, options and warrants, as the composition of the Fund's
portfolio diverges from the composition of the index underlying such stock index
futures, options or warrants. If the Fund has hedged portfolio securities by
purchasing put options or selling futures contracts, the Fund could suffer a
loss which is only partially offset or not offset at all by an increase in the
value of the Fund's securities. As noted, the Fund may also enter into
transactions in future contracts, options and warrants for other than hedging
purposes (subject to applicable law), including speculative transactions, which
involve greater risk. In particular, in entering into such transactions, the
Fund may experience losses which are not offset by gains on other portfolio
positions, thereby reducing its earnings. In addition, the markets for such
instruments may be volatile from time to time, which could increase the risk
incurred by the Fund in entering into such transactions. The ability of the Fund
to close out a futures, options or warrants position depends on a liquid
secondary market.

As noted above, the Fund intends to adhere to certain policies relating to the
use of futures contracts, which should have the effect of limiting the amount of
leverage by the Fund.

Correlation of Price Changes. Because there are a limited number of types of
exchange-traded options and futures contracts, it is likely that the
standardized options and futures contracts available will not match the Fund's
current or anticipated investments exactly. The Fund may invest in options and
futures contracts based on securities with different issuers, maturities, or
other characteristics from the securities in which it typically invests, which
involves a risk that the options or futures position will not track the
performance of the Fund's other investments.

Options and futures contracts prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match the Fund's
investments well. Options and futures contracts prices are affected by such
factors as current and anticipated short term interest rates, changes in
volatility of the underlying instrument, and the time remaining until expiration
of the contract, which may not affect security prices the same way. Imperfect
correlation may also result from differing levels of demand in the options and
futures markets and the securities markets, from structural differences in how
options and futures and securities are traded, or from imposition of daily price
fluctuation limits or trading halts. The Fund may purchase or sell options and
futures contracts with a greater or lesser value than the securities it wishes
to hedge or intends to purchase in order to attempt to compensate for
differences in volatility between the contract and the securities, although this
may not be successful in all cases. If price changes in the Fund's options or
futures positions are poorly correlated with its other investments, the
positions may fail to produce anticipated gains or result in losses that are not
offset by gains in other investments.

Risk Management. The Fund may employ non-hedging risk management techniques.
Examples of such strategies include synthetically altering the duration of the
portfolio or the mix of securities in the portfolio. For example, if the Advisor
wishes to extend maturities of fixed income securities in the Fund in order to
take advantage of an anticipated decline in interest rates, but does not wish to
purchase the underlying long term securities, it might cause the Fund to
purchase futures contracts on long-term debt securities. Similarly, if the
Advisor wishes to decrease fixed income securities or purchase equities, it
could cause the Fund to sell futures contracts on debt securities and purchase
futures contracts on a stock index. Because these risk management techniques may
involve leverage, the possibility exists, as with all leveraged transactions, of
losses as well as gains that are greater than if these techniques involved the
purchase and sale of the securities themselves rather than their synthetic
derivatives.

Other Investments and Investment Practices.

Impact of Large Redemptions and Purchases of Fund Shares. From time to time,
shareholders of the Fund (which may include affiliated and/or non-affiliated
registered investment companies that invest in the Fund) may make relatively
large redemptions or purchases of Fund shares. These transactions may cause the
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 the Fund's performance to the extent
that the 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 the
Fund's expense ratio.

Impact of Sub-Prime Mortgage Market. The 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,
the Fund's investments in certain fixed-income securities may decline in value,
their market value may be more difficult to determine, and the Fund may have
more difficulty disposing of them.

To Be Announced Securities (TBAs) -- Purchase Commitments. As with other delayed
delivery transactions, as described below, a seller agrees to issue a TBA
security at a future date. However, the seller does not specify the particular
securities to be delivered. Instead, the Fund agrees to accept any security that
meets specified terms. 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. This risk is in addition to the
risk of decline in the value of the Fund's other assets. Unsettled TBA purchase
commitments are valued at the current market value of the underlying securities.
For example, in a TBA mortgage-backed transaction, the Fund and the seller would
agree upon the issuer, interest rate and terms of the underlying mortgages. The
seller would not identify the specific underlying mortgages until it issues the
security. TBA mortgage-backed securities increase interest rate risks because
the underlying mortgages may be less favorable than anticipated by the Fund.

When-Issued and Delayed Delivery Securities. The Fund may purchase securities on
a when-issued or delayed delivery basis. Delivery of and payment for these
securities can take place a month or more after the date of the purchase
commitment. The payment obligation and the interest rate that will be received
on when-issued and delayed-delivery securities are fixed at the time the buyer
enters into the commitment. Due to fluctuations in the value of securities
purchased or sold on a when-issued or delayed-delivery basis, the yields
obtained on such securities may be higher or lower than the yields available in
the market on the dates when the investments are actually delivered to the
buyers. When-issued securities may include securities purchased on a "when, as
and if issued" basis, under which the issuance of the security depends on the
occurrence of a subsequent event, such as approval of a merger, corporate
reorganization or debt restructuring. The value of such securities is subject to
market fluctuation during this period and no interest or income, as applicable,
accrues to the Fund until settlement takes place.

At the time the Fund makes the commitment to purchase securities on a
when-issued or delayed delivery basis, it will record the transaction, reflect
the value each day of such securities in determining its net asset value and, if
applicable, calculate the maturity for the purposes of average maturity from
that date. At the time of settlement a when-issued security may be valued at
less than the purchase price. It may be expected that the Fund's net assets will
fluctuate to a greater degree when it sets aside portfolio securities to cover
such purchase commitments than when it sets aside cash. On delivery dates for
such transactions, the Fund will meet its obligations from maturities or sales
of securities and/or from cash flow. If the Fund chooses to dispose of the right
to acquire a when-issued security prior to its acquisition, it could, as with
the disposition of any other portfolio obligation, incur a gain or loss due to
market fluctuation. It is the current policy of the Fund not to enter into
when-issued commitments exceeding in the aggregate 15% of the market value of
the Fund's total assets, less liabilities other than the obligations created by
when-issued commitments. When the Fund engages in when-issued or
delayed-delivery transactions, it relies on the other party to consummate the
trade. Failure of the seller to do so may result in the Fund incurring a loss or
missing an opportunity to obtain a price considered to be advantageous.

Lending of Portfolio Securities. The 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. The 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.

The 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).

Borrowing. The Fund may borrow money, in amounts not to exceed one-third of the
Fund's total assets (including the amount borrowed) (i) from banks for temporary
or short-term purposes or for the clearance of transactions, (ii) in connection
with the redemption of interests in the Fund or Fund Shares or to finance failed
settlements of portfolio trades without immediately liquidating portfolio
securities or other assets, (iii) in order to fulfill commitments or plans to
purchase additional securities pending the anticipated sale of other portfolio
securities or assets and (iv) pursuant to reverse repurchase agreements entered
into by the Fund.

Under the 1940 Act, the Fund is required to maintain continuous asset coverage
of 300% with respect to such borrowings and to sell (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 such liquidation
of the Fund's holdings may be disadvantageous from an investment standpoint.

Leveraging by means of borrowing may exaggerate the effect of any increase or
decrease in the value of the Fund's securities and the Fund's NAV per share, and
money borrowed by the Fund will be subject to interest and other costs (which
may include commitment fees and/or the cost of maintaining minimum average
balances) that may exceed the income received from the securities purchased with
the borrowed funds.

Interests in Limited Liability Companies. Entities such as limited partnerships,
limited liability companies, business trusts and companies organized outside the
United States may issue securities comparable to common or preferred stock.

Investment of Uninvested Cash Balances. The Fund may have cash balances that
have not been invested in portfolio securities ("Uninvested Cash"). Uninvested
Cash may result from a variety of sources, including dividends or interest
received from portfolio securities, unsettled securities transactions, reserves
held for investment strategy purposes, scheduled maturity of investments,
liquidation of investment securities to meet anticipated redemptions and
dividend payments, and new cash received from investors. Uninvested Cash may be
invested directly in money market instruments or other short-term debt
obligations. Pursuant to an Exemptive Order issued by the SEC, the 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 the Advisor 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 the Fund in shares of the
Central Funds will be in accordance with the Fund's investment policies and
restrictions as set forth in its registration statement.

The Fund will invest Uninvested Cash in Central Funds only to the extent that
the Fund's aggregate investment in the Central Funds does not exceed 25% of its
total assets. Purchase and sales of shares of Central Funds are made at net
asset value.

Investment Ratings. The fixed income securities in which the Fund invests must
be rated investment grade (in one of the four highest rating categories) by one
or more NRSROs or be of comparable quality to securities having such ratings, as
determined by the Advisor. For example, S&P, a rating service, assigns ratings
to investment grade securities (AAA, AA, A, and BBB) based on an assessment of
the likelihood of the issuer's inability to pay interest or principal (default)
when due on each security. Lower credit ratings correspond to higher credit
risk. If a security has not received a rating, the Fund must rely entirely upon
the Advisor's credit assessment that the security is comparable to investment
grade. Securities rated BBB have speculative characteristics. For a description
of bond and commercial paper ratings, see the Appendix to this SAI.

Securities in which the Fund Invests

Following is a table that indicates which types of securities are:

o P = PRINCIPAL investments of the Fund (bolded in chart)

o A = ACCEPTABLE (but not principal) investments of the Fund

Type of Security
----------------

Equity Securities P
Common Stocks P
Warrants A
Preferred Stocks A
Convertible Securities A
Participation Certificates A
Real Estate Investment Trusts ("REITs") A
Initial Public Offerings ("IPOs") A

Fixed Income Securities A
Corporate Debt Securities A
US Government Securities A
Treasury Securities A
Agency Securities A
Variable Rate Securities A
Demand Instruments A
Insurance Contracts A
Zero Coupon Securities A
Deferred Interest Bonds A

Short-Term Instruments A
Commercial Paper A
Bank Instruments A
Repurchase Agreements A
Reverse Repurchase Agreements A

Derivative Contracts A
Options on Securities A
Options on Securities Indices A
Options on Foreign Securities Indices A
Futures Contracts A
Futures Contracts on Securities Indices A
Options on Futures Contracts A
Warrants on Futures Contracts A
Swap Agreements A
Interest Rate Swaps A
Caps and Floors A
Total Return Swaps A

Securities of Non-US Based Issuers P
Foreign Government Debt Securities A
Brady Bonds A

Other Investments
To Be Announced Securities ("TBA") A
Special Transactions A
When-Issued and Delayed Delivery Securities A
Securities Lending A
Borrowing A
Interests in Other Limited Liability Companies A

Special Considerations Regarding Japan

Since the Fund invests a significant portion of its assets in Japanese equity
securities, it is subject to general economic and political conditions in Japan.
The Fund may be more volatile than a fund that is broadly diversified
geographically. Additional factors relating to Japan that an investor in the
Fund should consider include the following:

Economic Background.

Generally. Since the end of World War II, Japan has experienced significant
economic development. Since the mid-1980's, Japan has become a major creditor
nation. With the exception of the periods associated with the oil crises of the
1970's, Japan has generally experienced very low levels of inflation. There is
no guarantee, however, that these favorable trends will continue.

The Japanese economy languished for much of the 1990's. The recession in Japan
was prolonged owing to balance sheet deterioration from the sharp fall in asset
prices, unprecedented declines in corporate spending, mismanagement by the
financial authorities and insufficient monetary easing. A string of bankruptcies
occurred among small and medium-sized companies and large corporations alike.
However, in the latter half of the 1990s, the stronger firms were able to
gradually reduce their interest-bearing debt in response to deflation and
improve their financial position. The number of companies providing high quality
goods and services at a low price thanks to the deflationary environment
increased.

The bank came to hold a large sum of bad loan by the excessive lending at the
bubble economy era and a decrease in the hypothetic value by burst of the
economic bubble. In 1997, a major city bank and a large securities company went
bankrupt and the amalgamation and the integration of major financial companies
advanced. In 2003, public funds were injected to prop up bank capital and the
clearance of non-performing bank loans advanced. Excessive equipment,
employment, and the debt of company were adjusted. Afterwards, Japan
accomplished the deflation and the recovery of economy by the external demand
according to BRIC's nations development. The financial strength of bank was
improved by the economic recovery and accumulation for loss several times.
However, the longest economic boom since the end of the war came to an end in
the summer of 2008 as a result of the global financial crisis triggered by the
sub-prime loan problem in the U.S.

Japanese companies have experienced a financial crisis in the past and have
taken great pains to strengthen their balance sheet and improve their financial
health on their own accord. They were able to obtain today's low debt ratio and
a balance sheet comprising good quality assets.

The Japanese government is involved in establishing and meeting objectives for
developing the economy and improving the standard of living of the Japanese
people, so that changes in government policies could have an adverse effect on
the economy and the companies in which the Fund invests. Changes in government
policies cannot be predicted. However, there is more flexibility in implementing
measures to stimulate the economy compared to in the past as a result of
deregulation.

Currency Fluctuation. Investments by the Fund in Japanese securities will be
denominated in yen and most income received by the Fund from such investments
will be in yen. However, the Fund's net asset value will be reported, and
distributions will be made, in US dollars. Therefore, a decline in the value of
the yen relative to the US dollar could have an adverse effect on the value of
the Fund's Japanese investments. The yen has had a history of unpredictable and
volatile movements against the dollar. The Fund is not required to hedge against
declines in the value of the yen.

Securities Markets.

Differences in accounting methods make it difficult to compare the earnings of
Japanese companies with those of companies in other countries, especially the
United States.

The Japanese securities markets are less regulated than those in the United
States and, at times, have been very volatile. Evidence has emerged from time to
time of distortion of market prices to serve political or other purposes.
Shareholders' rights are also not always enforced to the same extent as in the
United States. However, many companies have improved their shareholder return
policies such as through dividend hikes.

Foreign Trade.

Much of Japan's economy is dependent upon international trade. The country is a
leading exporter of automobiles and industrial machinery as well as industrial
and consumer electronics. Consequently, Japan's economy and export growth are
largely dependent upon the economic development of its trading partners,
particularly the United States and the developing nations in Southeast Asia.
Especially, the trade with Asia such as China has expanded in recent years.

Because of the large trade surpluses it has generated, Japan at times has had
difficult relations with its trading partners, particularly the US. It is
possible that trade sanctions or other protectionist measures could impact Japan
adversely in both the short- and long-term.

Natural Resource Dependency.

An island nation with limited natural resources, Japan is also heavily dependent
upon imports of essential products such as oil, forest products and industrial
metals. Accordingly, Japan's industrial sector and domestic economy are highly
sensitive to fluctuations in international commodity prices. In addition, many
of these commodities are traded in US dollars and any strength in the exchange
rate between the yen and the dollar can have either a positive or a negative
effect upon corporate profits. However, water resource is rich and not only the
drinking water but also the quality of water for industrial use is high.

Energy.

Japan has historically depended on oil for most of its energy requirements.
Almost all of its oil is imported. In the past, oil prices have had a major
impact on the domestic economy, but more recently Japan has worked to reduce its
dependence on oil by encouraging energy conservation and use of alternative
fuels. In addition, a restructuring of industry, with emphasis shifting from
basic industries to processing and assembly-type industries, has contributed to
the reduction of oil consumption. As a result of these efforts, Japan is highly
energy-efficient compared to other countries. However, there is no guarantee
this favorable trend will continue.

Natural Disasters.

The islands of Japan lie in the western Pacific Ocean, off the eastern coast of
the continent of Asia. Japan has in the past experienced earthquakes and tidal
waves of varying degrees of severity, and the risks of such phenomena, and the
damage resulting therefrom, continue to exist. The long-term economic effects of
such geological factors on the Japanese economy as a whole, and on the Fund's
investments, cannot be predicted.

Portfolio Holdings Information

In addition to the public disclosure of Fund portfolio holdings through required
SEC quarterly filings, the Fund may make its portfolio holdings information
publicly available on the DWS Funds' Web site as described in the Fund's
prospectus. The Fund does not disseminate non-public information about portfolio
holdings except in accordance with policies and procedures adopted by the Fund.

The 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 directors and each of their respective affiliates and
advisers who require access to this information to fulfill their duties to the
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 the 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 the Fund's non-public portfolio holdings information
to Authorized Third Parties, a person authorized by the Fund's Directors must
make a good faith determination in light of the facts then known that the Fund
has a legitimate business purpose for providing the information, that the
disclosure is in the best interest of the 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 the Fund or DeAM for disclosing non-public holdings
information. Periodic reports regarding these procedures will be provided to the
Fund's Directors.

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 the Fund and
information derived therefrom, including, but not limited to, how the 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 identity
of the 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 the
Fund's Directors exercise control over such policies. In addition, separate
account clients of DeAM have access to their portfolio holdings and are not
subject to the 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 the 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 the 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 the Fund's policies and procedures with respect to
the disclosure of portfolio holdings information will protect the Fund from the
potential misuse of portfolio holdings information by those in possession of
that information.

MANAGEMENT OF THE FUND

Investment Advisor

DIMA, which is part of Deutsche Asset Management ("DeAM"), is the investment
advisor for the Fund. Under the supervision of the Board of Directors of the
Fund, with headquarters at 345 Park Avenue, New York, New York, DIMA is
responsible for making the Fund's investment decisions and for managing the
Fund's investment and business affairs, subject to the policies established by
the Board. DIMA has delegated day-to-day investment management for the Fund to
the Fund's sub-advisor, Deutsche Asset Management (Japan) Limited ("DeAMJ").
DeAMJ is subject to DIMA's oversight. See "Investment sub-advisor to the Fund"
below. DIMA and its predecessors have more than 80 years of experience managing
mutual funds and provides a full range of investment advisory services to
institutional and retail clients. The Fund's investment advisor is also
responsible for selecting brokers and dealers and for negotiating brokerage
commissions and dealer charges.

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.

The portfolio manager is responsible for developing the Fund's investment
strategy and is supported by a staff of economists, research analysts, traders
and other investment specialists.

The portfolio manager has authority over all aspects of the Fund's investment
portfolio, including, but not limited, to purchase and sales of individual
securities, portfolio construction techniques, portfolio risk assessment and the
management of daily cash flows in accordance with the portfolio holdings.

Investment Management Agreement

Pursuant to the investment management agreement between the Corporation and DIMA
("Investment Management Agreement"), the Advisor is responsible for providing
continuing investment management of the assets of the Fund. The Advisor will
also monitor, to the extent not monitored by the Fund's administrator or other
agent, the Fund's compliance with its investment and tax guidelines and other
compliance policies.

The Advisor provides assistance to the Fund's Board in valuing the securities
and other instruments held by the Fund, to the extent reasonably required by
valuation policies and procedures that may be adopted by the Fund.

Pursuant to the Investment Management Agreement, (unless otherwise provided in
the agreement or as determined by the Fund's 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 Fund, including the
Fund's share of payroll taxes, who are affiliated persons of the Advisor.

The Investment Management Agreement provides that the 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 Fund, the Fund's
custodian, or other agents of the Fund; taxes and governmental fees; fees and
expenses of the Fund's 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 Fund; and litigation expenses and other extraordinary
expenses not incurred in the ordinary course of the Fund's business.

The Investment Management 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 Fund, including a majority of the Board who are not interested
persons of the Fund, and, if required by applicable law, subject to a majority
vote of the Fund's shareholders.

The Investment Management 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 Fund 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 Investment
Management 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
the Fund on 60 days' written notice.

The Board and shareholders have approved a subadvisor approval policy for the
Fund (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 sub-advisory
contract. The Fund 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 Fund exemptive relief from existing rules. The Fund 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 Fund and its shareholders
are adequately protected whenever the Advisor acts under the Subadvisor Approval
Policy, including any shareholder notice requirements.

For all services provided under the Investment Management Agreement, the Fund
pays the Advisor a fee, computed daily and paid monthly, at the annual rate as a
percentage of 0.850% for the first $500 million of average daily net assets,
0.835% for the next $500 million of average daily net assets, 0.820% for the
next $1.0 billion of average daily net assets and 0.805% on net assets
thereafter.

For the fiscal year ended August 31, 2008, the Fund paid advisory fees of
$1,022,275. For the fiscal year ended August 31, 2007, the Fund paid advisory
fees of $1,806,926.

For the fiscal year ended August 31, 2006*, the Advisor waived a portion of its
advisory fees aggregating $177,363 and charged the Fund advisory fees
aggregating $1,414,632, which was equivalent to an annual effective rate of
0.75% of the Fund's average daily net assets. In addition, under this
arrangement, the Advisor reimbursed the Fund $3,928 of other expenses.

* Prior to June 1, 2006, these fees included an administrative service fee.

In reviewing the terms of the Investment Management Agreement and in discussions
with the Advisor concerning such Agreement, the Directors of the Corporation who
are not "interested persons" of the Advisor are represented by independent
counsel at the Fund's expense.

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.

Investment Sub-Advisor to the Fund

On behalf of the Fund, DIMA has entered into an investment sub-advisory
agreement (Sub-Advisory Agreement) with Deutsche Asset Management (Japan)
Limited. DeAMJ is a registered investment advisor whose address is Sanno Park
Tower, 2-11-1 Nagata-Cho, Chiyoda-ku, Tokyo, Japan 100-6173. It is the
Sub-Advisor's responsibility, under the overall supervision of DIMA to conduct
the day-to-day investment decisions of the Fund, arrange for the execution of
portfolio transactions and generally manage the Fund's investments in accordance
with its investment objective, policies and restrictions. Effective December 1,
2007, DeAMJ has delegated its back office trading capability to Deutsche Asset
Management (Asia) Limited, a wholly-owned subsidiary of Deutsche Bank. For these
services, the Sub-Advisor receives from DIMA and not the Fund, each quarter and
as full compensation therefore, 50% of the total (net) investment advisory fee
received by DIMA. The Sub-Advisor may waive a portion of the fees it receives
from DIMA. For the fiscal years ended August 31, 2008, 2007 and 2006, DIMA paid
sub-advisory fees to DeAMJ of $ 315,252, $903,463 and $717,388, respectively.

The Sub-Advisor shall not be liable to the Corporation or any Fund shareholder
for any losses that may be sustained in the purchase, holding, or sale of any
security or for anything done or omitted by it, except acts or omissions
involving willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties imposed upon it by its contract.

Compensation of the Portfolio Manager

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 the Fund's portfolio manager in the 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.

Dollar Range of Dollar Range of All DWS
Name of Portfolio Manager Fund Shares Owned Fund Shares Owned
------------------------- ----------------- -----------------
Kenji Chihara $0 $0

Because the fund's portfolio manager is not a resident in the US, he generally
does not invest in US registered investment companies, such as the Fund, on
account of US tax and other regulatory limitations applicable to foreign
investors.

Conflicts of Interest

In addition to managing the assets of the Fund, the Fund's portfolio manager may
have responsibility for managing other client accounts of the Advisor or its
affiliates. The tables below show, for the 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 the portfolio manager. Total assets attributed to the
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.

Other SEC Registered Investment Companies Managed:

Number of
Number of Total Assets of Investment Total Assets of
Registered Registered Company Accounts Performance-
Investment Investment with Performance- Based Fee
Name of Portfolio Manager Companies Companies Based Fee Accounts
------------------------- --------- --------- --------- --------
Kenji Chihara 0 $0 0 $0

Other Pooled Investment Vehicles Managed:

Number of Pooled
Investment
Number of Vehicle Accounts Total Assets of
Pooled Total Assets of with Performance-
Investment Pooled Investment Performance- Based Fee
Name of Portfolio Manager Vehicles Vehicles Based Fee Accounts
------------------------- -------- -------- --------- --------
Kenji Chihara 6 $22,491,557 0 $0

Other Accounts Managed:

Number of
Other Accounts Total Assets of
Number of with Performance-
Other Total Assets of Performance- Based Fee
Name of Portfolio Manager Accounts Other Accounts Based Fee Accounts
------------------------- -------- -------------- --------- --------
Kenji Chihara 0 $0 0 $0

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 Fund. 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 Fund
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 the Fund and also for other
clients advised by the Advisor, including other client accounts managed
by the Fund's portfolio management team. Investment decisions for the
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 the 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 the Fund. Purchase and sale orders for the Fund may be combined
with those of other clients of the Advisor in the interest of achieving
the most favorable net results to the 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 the Fund 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.

Codes of Ethics

The Fund, the Advisor, the Sub-Advisor and the Fund's principal underwriter have
each adopted codes of ethics under Rule 17j-1 under the 1940 Act. Directors,
officers of the Corporation and employees of the Advisor, Sub-Advisor and
principal underwriter are permitted to make personal securities transactions,
including transactions in securities that may be purchased or held by the Fund,
subject to requirements and restrictions set forth in the applicable Code of
Ethics. The Advisor's and Sub-Advisor's Codes of Ethics contain provisions and
requirements designed to identify and address certain conflicts of interest
between personal investment activities and the interests of the Fund. Among
other things, the Advisor's and Sub-Advisor's Codes of Ethics prohibit certain
types of transactions absent prior approval, imposes time periods during which
personal transactions may not be made in certain securities, and require 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 and
Sub-Advisor's Codes 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 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

Prior to July 1, 2006, ICCC served as Administrator of the Fund. The
Administrative Services Appendix to the Master Services Agreement provided that
the Administrator, in return for its fee, would (a) supervise and manage all
aspects of the Fund's operations, other than portfolio management and
distribution; (b) provide the Fund with such executive, administrative, clerical
and bookkeeping services as are deemed advisable by the Fund's Board of
Directors; (c) provide the Fund with, or obtain for it, adequate office space
and all necessary office equipment and services including all items for any
offices as are deemed advisable by the Fund's Board of Directors; (d) supervise
the operations of the Fund's transfer and dividend disbursing agent; and (e)
arrange, but not pay for, the periodic updating of prospectuses and supplements
thereto, proxy material, tax returns, reports to the Fund's shareholders and
reports to and filings with the SEC and State Blue Sky authorities. Under the
Administrative Services Appendix to the Master Services Agreement, the Fund paid
ICCC an annual fee based on the Fund's average daily net assets. This fee was
calculated and accrued daily and the amounts of the daily accruals were paid
monthly, at the annual rate of 0.15% of the Fund's average daily net assets. For
the period September 1, 2005 through June 30, 2006, the administrator service
fee aggregated $228,831.

Effective July 1, 2006, the Fund entered into an administrative services
agreement with the Advisor (the "Administrative Services Agreement"), pursuant
to which the Advisor provides administrative services to the Fund including,
among others, providing the Fund with personnel, preparing and making required
filings on behalf of the Fund, maintaining books and records for the Fund, and
monitoring the valuation of Fund securities. For all services provided under the
Administrative Services Agreement, the Fund pays the Advisor a fee, computed
daily and paid monthly, of 0.100% of the Fund's average daily net assets. For
the fiscal year ended August 31, 2008, the Advisor received an administrative
fee of $120,268. For the fiscal year ended August 31, 2007, the Advisor received
an administrative fee of $212,580. For the period from July 1, 2006-August 31,
2006, the Advisor received an administrative fee of $34,736.

Under the Administrative Services Agreement, the Advisor is obligated on a
continuous basis to provide such administrative services as the Board of the
Fund reasonably deems necessary for the proper administration of the Fund. The
Advisor provides the Fund with personnel; arranges for the preparation and
filing of the Fund's tax returns; prepares and submits reports and meeting
materials to the Board and the shareholders; prepares and files updates to the
Fund's prospectus and SAI as well as other reports required to be filed by the
SEC; maintains the Fund's records; provides the Fund 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 the Fund; assists in the resolution of accounting issues that
may arise with respect to the Fund; establishes and monitors the Fund's
operating expense budgets; reviews and processes the Fund's bills; assists in
determining the amount of dividends and distributions available to be paid by
the Fund, 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 Advisor and Brown Brothers Harriman & Co.
("BBH"), the Advisor may delegate certain administrative functions to BBH. The
costs and expenses of such delegation are borne by the Advisor, not by the Fund.

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.

Distributor

Pursuant to a Distribution Agreement ("Distribution Agreement"), DWS Investments
Distributors, Inc. ("DIDI"), 222 South Riverside Plaza, Chicago, Illinois 60606,
an affiliate of the Advisor, is the principal underwriter and distributor for
the Class A, Class B, Class C, Class S shares of the Fund and acts as agent of
the Fund in the continuous offering of its shares. The Distribution Agreement
continues in effect from year to year only if its continuance is approved for
each class at least annually by a vote of the Board members of the Fund,
including the Directors who are not interested persons of the Fund and who have
no direct or indirect financial interest in the Distribution Agreement.

The Distribution Agreement provides that the Distributor shall: (i) use
reasonable efforts to sell shares upon the terms and conditions contained in the
Distribution Agreement and the Fund's then-current Prospectuses; (ii) use its
best efforts to conform with the requirements of all federal and state laws
relating to the sale of the shares; (iii) adopt and follow procedures as may be
necessary to comply with the requirements of the National Association of
Securities Dealers, Inc. (now the Financial Industry Regulatory Authority
("FINRA")) and any other applicable self-regulatory organization; (iv) perform
its duties under the supervision of and in accordance with the directives of the
Fund's Board of Directors and the Fund's Articles of Incorporation and By-Laws;
and (v) provide the Fund's Board of Directors with a written report of the
amounts expended in connection with the Distribution Agreement. The Distributor
shall devote reasonable time and effort to effect sales of shares but shall not
be obligated to sell any specific number of shares. The services of the
Distributor are not exclusive and the Distributor shall not be liable to the
Fund or its shareholders for any error of judgment or mistake of law, for any
losses arising out of any investment, or for any action or inaction of the
Distributor in the absence of bad faith, willful misfeasance, or gross
negligence in the performance of its duties or obligations under the
Distribution Agreement or by reason of the reckless disregard of its duties and
obligations under the Distribution Agreement. The Distribution Agreement further
provides that the Fund and the Distributor will mutually indemnify each other
for losses relating to disclosures in the Fund's registration statement.

The Distribution Agreement may be terminated at any time upon 60 days' written
notice by the Fund, without penalty, by the vote of a majority of the Fund's
Independent Directors or by a vote of a majority of the Fund's outstanding
shares of the related class or upon 60 day's written notice by the Distributor
and shall automatically terminate in the event of an assignment.

The Distributor currently offers shares of the Fund on a continuous basis to
investors in all states in which shares of the 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 the Fund.

Rule 12b-1 Plans

Class A Shares are sold subject to a distribution plan adopted in accordance
with Rule 12b-1 under the 1940 Act (the "Class A Distribution Plan"). Under the
Class A Distribution Plan, Class A Shares will pay a servicing fee to the
Distributor in an amount computed at an annual rate of up to 0.25% of the
average daily net assets of Class A Shares.

Shareholders of Class B and Class C of the Fund have approved Amended and
Restated Rule 12b-1 Plans (each, an "Amended Plan" and, together with the Class
A Distribution Plan, the "Distribution Plans") for those classes. Under the
Amended Plan, the Fund will pay a shareholder servicing fee at an annual rate of
up to 0.25% of the average daily net assets of its Class B and Class C shares,
respectively, to its Distributor in addition to a distribution fee at an annual
rate of up to 0.75% of such assets. Pursuant to each Amended Plan, shareholder
and administrative services are provided to the Fund on behalf of its Class B
and C shareholders under the Fund's Service Agreement with its Distributor.
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.

The Amended Plans for Class B and Class C shares provide alternative methods for
paying sales charges and may help the Fund grow or maintain asset levels to
provide operational efficiencies and economies of scale. Rule 12b-1 service
plans provide compensation to the Fund's Distributor for post-sales servicing.
Since each Distribution Agreement provides for fees payable as an expense of
Class B shares and Class C shares that are used by the Distributor 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 the 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.

The Distributor uses these fees to finance any activity that is principally
intended to result in the sale of Class A Shares, Class B Shares and Class C
Shares of the Fund. If a Rule 12b-1 Plan is terminated in accordance with its
terms, the obligation of the 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 the 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 the
Fund. In connection with Class B shares, for example, if shares of the 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 (e.g., a sales commission may
be paid by DIDI related to an investment in year 1, while the Rule 12b-1 fee to
DIDI related to that investment may accrue during year 1 through year 6 prior to
conversion of the investment to Class A shares). 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.

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 Paid
Fees Services Fees to Firms
---- ------------- --------
DWS Japan Equity Fund Class A $0 $103,543 $78,871
Class B $62,058 $22,098 $35,133
Class C $245,441 $93,343 $299,961

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 Japan Equity Fund Class A $103,680 $4,949 $20,655 $19,757 $0
Class B $2,767 $128 $748 $630 $48,165
Class C $29,929 $915 $7,755 $6,723 $0

The following table shows, the aggregate amount of underwriting commissions paid
to DIDI, the amount in commissions it paid out to brokers and the amount of
underwriting commissions retained by DIDI.

Aggregate
Aggregate Aggregate Commissions
Aggregate Sales Commissions Paid Commissions Paid to Retained by
Fund Fiscal Year Commissions to Firms Affiliated Firms DIDI
---- ----------- ----------- -------- ---------------- ----

DWS Japan Equity Fund 2008 $9,000 $1,000 $0 $8,000
2007 $37,000 $4,000 $0 $33,000
2006 $121,000 $8,000 $1,000 $112,000

Custodian

Brown Brothers Harriman & Co. (the "Custodian"), 40 Water Street, Boston,
Massachusetts 02109, serves as the Fund's custodian pursuant to a Custodian
Agreement. Under the Custodian Agreement with the Corporation, the Custodian (i)
maintains separate accounts in the name of the Fund, (ii) holds and transfers
portfolio securities on account of the Fund, (iii) accepts receipts and makes
disbursements of money on behalf of the Fund, (iv) collects and receives all
income and other payments and distributions on account of the Fund's portfolio
securities and (v) makes periodic reports to the Corporation's Board of
Directors concerning the Fund's operations. The Custodian is authorized to
select one or more foreign or domestic banks or companies to serve as
sub-custodian on behalf of the Fund, pursuant to Rule 17f-5 or the 1940 Act.

Transfer Agent

DWS Investments Service Company ("DISC"), 210 W. 10th Street, Kansas City, MO
64105-1614, an affiliate of the Advisor serves as transfer agent,
dividend-paying agent and shareholder service agent of the Corporation on behalf
of the Fund pursuant to a transfer agency agreement. Under its transfer agency
agreement with the Corporation, DISC maintains the shareholder account records
for the Fund, handles certain communications between shareholders and the Fund
and causes to be distributed any dividends and distributions payable by the
Fund. DISC may be reimbursed by the Fund for its out-of-pocket expenses. Prior
to December 16, 2002, Investment Company Capital Corp. ("ICCC") acted as the
Fund's transfer and dividend disbursing agent.

The Fund pays DISC a fee based on the size, type, and number of accounts and
transactions made by shareholders.

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.

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.

Legal Counsel

Willkie Farr & Gallagher LLP serves as counsel to the Fund.

Ropes & Gray LLP, One International Place, Boston, Massachusetts 02110-2624,
serves as co-counsel to the Independent Directors of the Company.

Vedder Price P.C., 222 North LaSalle Street, Chicago, Illinois 60601, serves as
co-counsel to the Independent Directors of the Company.

Independent Registered Public Accounting Firm

The financial highlights of the Fund included in the Fund's Prospectuses and the
financial statements incorporated by reference into 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, MA 02110,
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

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-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 Fund 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 Fund 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 U.S. 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 Fund
to their customers. However, the Advisor does not consider sales of shares of
the Fund as a factor in the selection of broker-dealers to execute portfolio
transactions for the Fund and, accordingly, has implemented policies and
procedures reasonably designed to prevent its traders from considering sales of
shares of the Fund as a factor in the selection of broker-dealers to execute
portfolio transactions for the Fund.

The Advisor is permitted by Section 28(e) of the Securities Exchange Act of
1934, as amended ("1934 Act"), when placing portfolio transactions for the 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 the 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. Research and brokerage services received from a broker-dealer
may be useful to the Advisor in providing services to clients other than the
Fund making the trade, and not all such information is used by the Advisor in
connection with such Fund. Conversely, such information provided to the Advisor
by broker-dealers through which other clients of the Advisor effect securities
transactions may be useful to the Advisor in providing services to the 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 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 Fund 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.

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 the 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 the 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 Fund's 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 Fund and
receive brokerage commissions or other transaction-related compensation from the
Fund 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 Fund's Board, 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 Fund a rate
consistent with that charged to comparable unaffiliated customers in similar
transactions.

The Sub-Advisor may direct a portion of the Fund's securities transactions to
certain unaffiliated brokers which in turn use a portion of the commissions they
receive from the Fund to pay other unaffiliated service providers on behalf of
the Fund for services provided for which the Fund would otherwise be obligated
to pay. Such commissions paid by the Fund are at the same rate paid to other
brokers for effecting similar transactions. For the fiscal years ended August
31, 2008, 2007, and 2006, the Fund paid $434,359, $718,505, and $541,638 and,
respectively. The percentage of the Fund's commissions paid to affiliated
brokers, the percentage of transactions involving commissions paid to affiliated
brokers and the dollar amount of commissions paid to brokers for research
services is set forth below for the fiscal year ended August 31, 2008:

Percentage of Percentage of Dollar Amount of
Commissions Paid to Transactions Involving Commissions Paid to Brokers
Affiliated Commissions Paid to for
Name of Fund Brokers Affiliated Brokers Research Services
------------ ------- ------------------ -----------------

DWS Japan Equity Fund 0% 0% $0

The Fund is required to identify any securities of its "regular broker or
dealers" (as such term is defined in the 1940 Act) that the Fund has acquired
during the most recent fiscal year. As of August 31, 2008, the Fund held the
following securities of its regular broker dealers:

Name of Issuer Value of Holdings
--------------- -----------------
Nomura Holdings, Inc. $763,000
Mitsubishi UFJ Financial Group $2,268,000
SBI Holdings Inc $1,276,000
Kenedix, Inc. $1,739,000

Portfolio Turnover

Although the Fund does not intend to invest for the purpose of seeking
short-term profits, securities in the Fund will be sold whenever the Advisor
believes it is appropriate to do so in light of the investment objectives of the
Fund, without regard to the length of time a particular security may have been
held. A 100% annual turnover rate would occur, for example, if all portfolio
securities (excluding short-term obligations) were replaced once in a period of
one year, or if 10% of the portfolio securities were replaced ten times in one
year. The rate of portfolio turnover may exceed that of certain other mutual
funds with the same investment objectives. The amount of brokerage commissions
and taxes on realized capital gains to be borne by the shareholders of the Fund
tend to increase as the level of portfolio activity increases.

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 the 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 the Fund's objective.

The portfolio turnover rate for the fiscal years ended August 31, 2008 and 2007
were 105% and 120%, respectively.

PURCHASE AND REDEMPTION OF SHARES

General Information

Policies and procedures affecting transactions in the Fund's 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 services 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.

A distribution will be reinvested in shares of the same Fund and class if the
distribution check is returned as undeliverable.

Orders will be confirmed at a price based on the net asset value of the Fund
(including any applicable sales charge) 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 the 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 the Fund through the Shareholder Service Agent for these services.

The Fund has authorized one or more financial service institutions, including
certain members of FINRA other than the Distributor ("financial institutions"),
to accept purchase and redemption orders for the Fund's shares. Such financial
institutions may also designate other parties, including plan administrator
intermediaries, to accept purchase and redemption orders on the Fund's behalf.
Orders for purchases or redemptions will be deemed to have been received by the
Fund when such financial institutions or, if applicable, their authorized
designees accept the orders. Subject to the terms of the contract between the
Fund and the financial institution, ordinarily orders will be priced at the
Fund's net asset value next computed after acceptance by such financial
institution or its authorized designees and accepted by the Fund. Further, if
purchases or redemptions of the 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 Directors and the Distributor, also the Fund's
principal underwriter, each has the right to limit the amount of purchases by,
and to refuse to sell to, any person. The Directors and the Distributor may
suspend or terminate the offering of shares of the 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. The 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
the 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 Fund reserves the right to withdraw all or any part of the offering made by
its prospectus and to reject purchase orders for any reason. Also, from time to
time, the 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 the Fund may be permitted to continue to purchase
additional shares of such class and to have dividends reinvested.

Fees generally charged to IRA accounts will be charged to accounts of Deutsche
or DWS Investments employees and directors.

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's
prospectus.

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 the 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.

DIDI may, from time to time, pay or allow to firms a 1% commission on the amount
of shares of a Fund sold under the following conditions: (i) the purchased
shares are held in a DWS Investments IRA account, (ii) the shares are purchased
as a direct "roll over" of a distribution from a qualified retirement plan
account maintained on the subaccount record keeping system maintained for DWS
Investments-branded plans by ADP, Inc. under an alliance with DIDI and its
affiliates, (iii) the registered representative placing the trade is a member of
Executive Council, a group of persons designated by DIDI in acknowledgment of
their dedication to the employee benefit plan area; and (iv) the purchase is not
otherwise subject to a commission.

In addition to the discounts or commissions described herein and in 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 the 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:

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
----------- ----------- ---- -----------
$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% -- --

(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 of the last
business day of the month attributable to Class C shares maintain 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

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.

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
------------------ -------------- --------------- --------------
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 .00** .00** ***

* 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 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 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. The 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.

Letter of Intent. The reduced sales charges for Class A shares, as shown in the
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 the 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 of life partner and
children or stepchildren age 21 or younger).

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.

Class B Purchases. Class B shares of the 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 Fund's
prospectus and SAI. Class B shares automatically convert to Class A shares after
six years.

Class C Purchases. Class C shares of the 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
Fund's prospectus 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 Scudder 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 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 Class 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 Fund is 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.

Redemptions

Redemption fee. The Fund imposes a redemption fee of 2% of the total redemption
amount (calculated at net asset value, without regard to the effect of any
contingent deferred sales charge; any contingent deferred sales charge is also
assessed on the total redemption amount without regard to the assessment of the
2% redemption fee) on all Fund shares redeemed or exchanged within 15 days of
buying them (either by purchase or exchange). The redemption fee is paid
directly to the Fund, and is designed to encourage long-term investment and to
offset transaction and other costs associated with short-term or excessive
trading. For purposes of determining whether the redemption fee applies, shares
held the longest time will be treated as being redeemed first and shares held
the shortest time will be treated as being redeemed last. The redemption fee is
applicable to fund shares purchased either directly or through a financial
intermediary, such as a broker-dealer. Transactions through financial
intermediaries typically are placed with the Fund on an omnibus basis and
include both purchase and sale transactions placed on behalf of multiple
investors. These purchase and sale transactions are generally netted against one
another and placed on an aggregate basis; consequently the identities of the
individuals on whose behalf the transactions are placed generally are not known
to the Fund. For this reason, the Fund has undertaken to notify financial
intermediaries of their obligation to assess the redemption fee on customer
accounts and to collect and remit the proceeds to the Fund. However, due to
operational requirements, the intermediaries' methods for tracking and
calculating the fee may be inadequate or differ in some respects from the
Fund's.

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.

A distribution will be reinvested in shares of the same fund and class if the
distribution check is returned as undeliverable.

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 close of its business day will
be confirmed at a price based on the net asset value effective on that day
("trade date").

The Fund may suspend the right of redemption or delay payment more than seven
days (a) during any period when the Exchange is closed other than customary
weekend and holiday closings or during any period in which trading on the
Exchange is restricted, (b) during any period when an emergency exists as a
result of which (i) disposal of the Fund's investments is not reasonably
practicable, or (ii) it is not reasonably practicable for the Fund to determine
the value of its net assets, or (c) for such other periods as the SEC may by
order permit for the protection of the Fund's shareholders.

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 wire redemption of $250,000 or more may be
delayed by the 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 Fund is 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 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 the 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 CDSCs 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 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 Automatic Withdrawal 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 the 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 Corporation or its agent on
written notice, and will be terminated when all shares of a Fund under the
Automatic Withdrawal 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 circumstances);

(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. The 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.

Supplemental Payments

Investment professionals who initiate and are responsible for purchases of $1
million or more may be paid fees out of the assets of DIDI (but not out of Fund
assets). Securities laws may require certain investment professionals such as
depository institutions to register as dealers. DIDI may pay dealers an amount
up to 4.0% of the net asset value of Class B Shares and 1.0% of the net asset
value of Class C Shares purchased by their clients or customers as an advance
payment. These payments will be made directly by DIDI from its assets, and will
not be made from the assets of the Fund. Dealers may voluntarily waive receipt
of all or any portion of these advance payments. DIDI may pay all or a portion
of the distribution fees discussed below to investment professionals that waive
all or any portion of the advance payments.

Dividends

The 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. The 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,
the 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 the 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, the Fund may be subject to that excise tax. In
certain circumstances, the Fund may determine that it is in the interest of
shareholders to distribute less than the required amount.

The Fund intends to distribute dividends from its net investment income
excluding short-term capital gains annually in December. The 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.

Any dividends or capital gains distributions declared in October, November or
December with a record date in such a month and paid during the following
January will be treated by shareholders for federal income tax purposes as if
received on December 31 of the calendar year declared.

Dividends paid by the Fund with respect to each class of its shares will be
calculated in the same manner, at the same time and on the same day.

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.

Income and capital gain dividends, if any, of the Fund will be credited to
shareholder accounts in full and fractional shares of the same class of the Fund
at net asset value on the reinvestment date, except that, upon written request
to the Shareholder Service Agent, a shareholder may select one of the following
options:

1. To receive income and short-term capital gain dividends in cash and
long-term capital gain dividends in shares of the same class at net
asset value; or

2. To receive income and capital gain dividends in cash.

Dividends will be reinvested in shares of the same class of the Fund unless
shareholders indicate in writing that they wish to receive them in cash or in
shares of other DWS Funds with multiple classes of shares or DWS Funds as
provided in the prospectus. To use this privilege of investing dividends of the
Fund in shares of another DWS Fund, shareholders must maintain a minimum account
value of $1,000 in the Fund distributing the dividends. The Fund will reinvest
dividend checks (and future dividends) in shares of that same Fund and class if
checks are returned as undeliverable. Dividends and other distributions of the
Fund in the aggregate amount of $10 or less are automatically reinvested in
shares of the Fund and class unless the shareholder requests in writing that a
check be issued for that particular distribution.

If the investment is in the form of a retirement plan, all dividends and capital
gains distributions must be reinvested into the shareholders account.

If a shareholder has elected to reinvest any dividends and/or other
distributions, such distributions will be made in shares of the 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 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 the Fund issues to each shareholder a statement of the
federal income tax status of all distributions in the prior calendar year.

The Fund may at any time vary its foregoing dividend 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,
the Fund may make additional distributions of net investment income or capital
gain net income in order to satisfy the minimum distribution requirements
contained in the Code.

TAXES

The following is intended to be a general summary of certain federal income tax
consequences of investing in the Fund. 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 the Fund. The summary is based on
the laws in effect on the date of this SAI and existing judicial and
administrative interpretations thereof, all of which are subject to change,
possibly with retroactive effect.

Taxation of the Fund. The Fund has elected to be treated as a regulated
investment company under Subchapter M of the Code and has qualified as such
since its inception. The 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 as a regulated investment company, the
Fund must meet certain requirements regarding the source of its income, the
diversification of its assets, and the distribution of its income:

(a) The Fund must derive at least 90% of its gross income from dividends,
interest, payments with respect to certain securities loans, and gains
from the sale of stock, securities and foreign currencies, 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 or net income derived from interests
in "qualified publicly traded partnerships" (i.e., partnerships that
are traded on an established securities market or tradable on a
secondary market, other than partnerships that derives 90% of their
income from interest, dividends, capital gains, and other traditionally
permitted mutual fund income).

(b) The Fund must diversify its holdings so that, at the end of each
quarter of its taxable year, (i) at least 50% of the market value of
the Fund's assets is represented by cash and cash items, US government
securities, securities of other regulated investment companies, and
other securities limited in respect of any one issuer of such other
securities to a value not greater than 5% of the value of the Fund's
total assets and to not more than 10% of the outstanding voting stock
of such issuer, and (ii) not more than 25% of the value of its assets
is invested in the securities (other than those of the US Government or
other regulated investment companies) of any one issuer, of two or more
issuers in which the Fund owns 20% or more of the voting securities and
which are engaged in the same, similar, or related trades or businesses
or in the securities of one or more qualified publicly traded
partnerships.

(c) The Fund is required to distribute to its shareholders at least 90% of
its taxable and tax-exempt net investment income (including the excess
of net short-term capital gain over net long-term capital losses) and
generally is not subject to federal income tax to the extent that it
distributes annually such net investment income and net realized
capital gains in the manner required under the Code.

Although in general the passive loss rules of the Code do not apply to regulated
investment companies, such rules do apply to a regulated investment company with
respect to items attributable to an interest in a qualified publicly traded
partnership. Fund investments in partnerships, including in qualified publicly
traded partnerships, may result in the Fund's being subject to state, local or
foreign income, franchise or withholding tax liabilities.

If for any taxable year the Fund does not qualify for the special federal income
tax treatment afforded regulated investment companies, 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 and
net long-term capital gains, would be taxable to shareholders as ordinary
income. Such distributions would be eligible (i) to be treated as "qualified
dividend income," in the case of individual and other noncorporate shareholders,
subject to reduced rates of federal income taxation for taxable years beginning
before January 1, 2011 and (ii) for the 70% 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 regulated investment company
that is accorded special tax treatment.

The Fund is subject to a 4% nondeductible excise tax on amounts required to be
but that are not distributed under a prescribed formula. The formula requires
payment to shareholders during a calendar year of distributions representing at
least 98% of the Fund's taxable ordinary income for the calendar year and at
least 98% of the excess of its capital gains over capital losses realized during
the one-year period ending October 31 (in most cases) of such year as well as
amounts that were neither distributed nor taxed to the Fund during the prior
calendar year. Although the Fund's distribution policies should enable it to
avoid excise tax liability, the Fund may retain (and be subject to income or
excise tax on) a portion of its capital gain or other income if it appears to be
in the interest of the Fund.

Taxation of Fund Distributions. Distributions from the Fund generally will be
taxable to shareholders as ordinary income to the extent derived from investment
income and net short-term capital gains. Distributions of net capital gains
(that is, the excess of net gains from the sale of capital assets held more than
one year over net losses from the sale of capital assets held for not more than
one year) properly designated as capital gain dividends will be taxable to
shareholders as long-term capital gain, regardless of how long a shareholder has
held the shares in the Fund.

Long-term capital gain rates applicable to individuals have been temporarily
reduced -- in general, to 15% with a lower rate applying to taxpayers in the 10%
and 15% rate brackets -- for taxable years beginning before January 1, 2011. The
maximum long-term capital gain rate is scheduled to return to 20% for taxable
years beginning thereafter.

Capital gains distributions may be reduced if Fund capital loss carryforwards
are available. Any capital loss carryforwards and any post-October loss
deferrals to which a Fund is entitled are disclosed in a Fund's annual and
semi-annual reports to shareholders.

For taxable years beginning before January 1, 2011, "qualified dividend income"
received by an individual will be taxed at the rates applicable to long-term
capital gain. Qualified dividend income does not include interest from
fixed-income securities. In order for some portion of the dividends received by
the Fund shareholder to be qualified dividend income, the Fund must meet holding
period and other requirements with respect to some portion of the
dividend-paying stocks in its portfolio and the 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, or (3) if the recipient elects to have the dividend income
treated as investment income for purposes of the limitation on deductibility of
investment interest. In order for a dividend paid by a foreign corporation to
constitute "qualified dividend income," the foreign corporation must (1) be
eligible for the benefits of a comprehensive income tax treaty with the United
States (or the stock on which the dividend is paid must be readily tradable on
an established securities market in the United States), and (2) not be treated
as a passive foreign investment company.

In general, distributions of investment income designated by a regulated
investment company 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 the Fund during any taxable
year are 95% or less of its gross income (excluding net long-term capital gain
over net short-term capital loss), then only that percentage of the Fund's
dividends (other than properly designated 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.

Capital gains distributions may be reduced if Fund capital loss carryforwards
are available. Any capital loss carryforwards and any post-October loss
deferrals to which the Fund is entitled are disclosed in the Fund's annual and
semi-annual reports to shareholders.

All distributions by the Fund result in a reduction in the net asset value of
the 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.

Sale or Redemption of Shares. The sale, exchange or redemption of fund shares
may 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 for more than one year. Otherwise, the gain or loss
on the taxable disposition of fund shares will be treated as short-term capital
gain or loss. However, any loss realized upon a taxable disposition of shares
held for six months or less will be treated as long-term, rather than
short-term, to the extent of any long-term capital gain distributions 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 fund shares 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.

Dividends Received Deduction. It is not anticipated that dividends from domestic
corporations will comprise a substantial part of the Fund's gross income. If any
such dividends constitute a portion of the Fund's gross income, a portion of the
income distributions of the Fund 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 the Fund with respect to which the dividends are
received are treated as debt-financed under federal income tax law and is
eliminated if either those shares or the shares of the Fund are deemed to have
been held by the Fund or the 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.

Passive Foreign Investment Companies. Equity investments by the Fund in certain
"passive foreign investment companies" ("PFICs") could potentially subject the
Fund 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 the
Fund shareholders. However, the Fund may elect to avoid the imposition of that
tax. For example, the Fund may elect to treat a PFIC as a "qualified electing
fund" (a "QEF election"), in which case the Fund will 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 Fund 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 Fund's taxable year. The election must be made separately
for each PFIC owned and, once made, would be effective for all subsequent tax
years unless revoked with the consent of the Internal Revenue Service (the
"IRS"). Such gains and losses are treated as ordinary income and loss. The QEF
and mark-to-market elections may accelerate the recognition of income (without
the receipt of cash) and increase the amount required to be distributed by the
Fund to avoid taxation. Making either of these elections therefore may require
the Fund 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 Fund's total return. Dividends paid by PFICs
will not be eligible to be treated as "qualified dividend income."

Tax Effects of Certain Transactions. The Fund's use of options, futures
contracts, forward contracts (to the extent permitted) and certain other
Strategic Transactions will be subject to special tax rules (including
mark-to-market, constructive sale, straddle, wash sale, short sale and other
rules), the effect of which may be to accelerate income, defer losses, cause
adjustments in the holding periods of portfolio securities, convert capital
gains into ordinary income and convert short-term capital losses into long-term
capital losses. These rules could therefore affect the amount, timing and
character of distributions to investors.

Under Section 988 of the Code, gains or losses attributable to fluctuations in
exchange rates between the time the Fund accrues income or receivables or
expenses or other liabilities denominated in a foreign currency and the time the
Fund actually collects such income or pays such liabilities are generally
treated as ordinary income or ordinary loss. In general, gains (and losses)
realized on debt instruments will be treated as Section 988 gain (or loss) to
the extent attributable to changes in exchange rates between the U.S. dollar and
the currencies in which the instruments are denominated. Similarly, gains or
losses on foreign currency, foreign currency forward contracts and certain
foreign currency options or futures contracts, to the extent attributable to
fluctuations in exchange rates between the acquisition and disposition dates,
are also treated as ordinary income or loss unless the Fund were to elect
otherwise.

The Fund's investment in zero coupon bonds and other debt obligations having
original issue discount may cause the Fund to recognize taxable income in excess
of any cash received from the investment.

The Fund's investment in so-called "section 1256 contracts," such as regulated
futures contracts, most foreign currency forward contracts traded in the
interbank market and options on most stock indices, are subject to special tax
rules. All section 1256 contracts held by the Fund at the end of its taxable
year are required to be marked to their market value, and any unrealized gain or
loss on those positions will be included in the Fund's income as if each
position had been sold for its fair market value at the end of the taxable year.
The resulting gain or loss will be combined with any gain or loss realized by
the Fund from positions in section 1256 contracts closed during the taxable
year. Provided such positions were held as capital assets and were not part of a
"hedging transaction" nor part of a "straddle," 60% of the resulting net gain or
loss will be treated as long-term capital gain or loss, and 40% of such net gain
or loss will be treated as short-term capital gain or loss, regardless of the
period of time the positions were actually held by the Fund.

As a result of entering into swap contracts, the Fund may make or receive
periodic net payments. The Fund may also make or receive a payment when a swap
is terminated prior to maturity through an assignment of the swap or other
closing transaction. Periodic net payments and other contractual payments made
under the terms of certain swap contracts will generally constitute ordinary
income or deductions, while termination of a swap will generally result in
capital gain or loss (which will be a long-term capital gain or loss if the Fund
has been a party to the swap for more than one year). With respect to certain
types of swaps, the Fund may be required to currently recognize income or loss
with respect to future payments on such swaps or may elect under certain
circumstances to mark such swaps to market annually for tax purposes as ordinary
income. The tax treatment of many types of credit default swaps is uncertain.

The Fund may be required to treat amounts as taxable income or gain, subject to
the distribution requirements referred to above, even though no corresponding
amounts of cash are received concurrently, as a result of (1) mark-to-market,
constructive sale or rules applicable to PFICs (as defined below) or partnership
or trusts in which the Fund invests or to certain options, futures or forward
contracts, or "appreciated financial positions" or (2) the inability to obtain
cash distributions or other amounts due to currency controls or restrictions on
repatriation imposed by a foreign country with respect to the Fund's investments
(including through depositary receipts) in issuers in such country or (3) tax
rules applicable to debt obligations acquired with "original issue discount,"
including zero-coupon or deferred payment bonds and pay-in-kind debt
obligations, or to market discount if an election is made with respect to such
market discount. The Fund may therefore be required to obtain cash to be used to
satisfy these distribution requirements by selling securities at times that it
might not otherwise be desirable to do so or borrowing the necessary cash,
thereby incurring interest expenses.

In general, gain or loss on a short sale is recognized when the Fund closes the
sale by delivering the borrowed property to the lender, not when the borrowed
property is sold. Gain or loss from a short sale is generally considered as
capital gain or loss to the extent that the property used to close the short
sale constitutes a capital asset in the Fund's hands. Except with respect to
certain situations where the property used by the Fund to close a short sale has
a long-term holding period on the date of the short sale, special rules would
generally treat the gains on short sale as short-term capital gains. These rules
may also terminate the running of the holding period of "substantially identical
property' held by the Fund. Moreover, a loss on a short sale will be treated as
a long-term capital loss, if on the date of the short sale, "substantially
identical property" has been held by the Fund for more than one year. In
general, the Fund will not be permitted to deduct payments made to reimburse the
lender of securities for dividends paid on borrowed stock if the short sale is
closed on or before the 45th day after the short sale is entered into.

Under current law, the Fund serves to block unrelated business taxable income
("UBTI") from being realized by its tax-exempt shareholders. Notwithstanding the
foregoing, a tax-exempt shareholder could realize UBTI by virtue of, inter alia,
its investment in the Fund if either (i) the Fund invests in real estate
investment trusts ("REITs") that hold equity interests in taxable mortgage pools
or residual interests in real estate mortgage investment conduits ("REMICs"), or
(ii) shares in the Fund constitute debt-financed property in the hands of the
tax-exempt shareholder within the meaning of Code Section 514(b). If a
charitable remainder trust (as defined in Code Section 664) realizes any UBTI
for a taxable year, it will become subject to 100% excise tax on such UBTI.

Certain types of income received by the Fund from REITs, REMICs and taxable
mortgage pools to other investments may cause the Fund to designate some or all
of its distributions as "excess inclusion income." To Fund shareholders such
excess inclusion income may (1) constitute taxable income, as UBTI for those
shareholders who would otherwise be tax-exempt such as individual retirement
accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable
entities; (2) not be offset against net operating losses for tax purposes; (3)
not be eligible for reduce US withholding for non-US shareholders even from tax
treat countries; and (4) cause the Fund to be subject to tax if certain
"disqualified organizations" as defined by the Code are Fund shareholders.

Other Tax Considerations. Under the backup withholding provisions of the Code,
redemption proceeds as well as distributions may be subject to federal income
tax withholding for certain shareholders, including those who fail to furnish
the Fund with their taxpayer identification numbers and certifications as to
their tax status.

Shareholders of the Fund may be subject to state and local taxes on
distributions received from the Fund and on redemptions of the Fund's shares.

Special tax rules apply to investments through defined contribution plans and
other tax-qualified plans. Shareholders should consult their tax advisers to
determine the suitability of shares of the Fund as an investment through such
plans and the precise effect of an investment on their particular tax situation.

Under Treasury regulations, if a shareholder recognizes a loss with respect to
the 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 portfolio
securities are in many cases excepted from this reporting requirement, but under
current guidance, shareholders of a regulated investment company are not
excepted. 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.

Non-US shareholders. Dividends by the Fund paid to non-US shareholders are
generally subject to withholding tax at a 30% rate or a reduced rate specified
by an applicable income tax treaty to the extent derived from investment income
and short-term capital gains. In order to obtain a reduced rate of withholding,
a non-US shareholder will be required to provide an IRS Form W-8BEN certifying
its entitlement to benefits under a treaty. The withholding tax does not apply
to regular dividends paid to a non-US shareholder who provides a Form W-8ECI,
certifying that the dividends are effectively connected with the non-US
shareholder's conduct of a trade or business within the United States. Instead,
the effectively connected dividends will be subject to regular US income tax as
if the non-US shareholder were a US shareholder. A non-US corporation receiving
effectively connected dividends may also be subject to additional "branch
profits tax" imposed at a rate of 30% (or a lower treaty rate). A non-US
shareholder who fails to provide an IRS Form W-8BEN or other applicable form may
be subject to backup withholding at the appropriate rate.

In general, United States federal withholding tax will not apply to any gain or
income realized by a non-US shareholder in respect of any distribution of net
long-term capital gains over net short-term capital losses, exempt-interest
dividends, or upon the sale or other disposition of shares of the Fund.

Real estate related investments such as REITs and U.S. real property holding
companies may result in withholding tax on Fund distributions and liability for
tax on Fund redemptions for non-U.S. shareholders.

For taxable years beginning after December 31, 2007, and before January 1, 2010,
properly-designated dividends are generally exempt from United States federal
withholding tax where they (i) are paid in respect of the Fund's "qualified net
interest income" (generally, the Fund's U.S. source interest income, other than
certain contingent interest and interest from obligations of a corporation or
partnership in which the Fund is at least a 10% shareholder, reduced by expenses
that are allocable to such income) or (ii) are paid in respect of the Fund's
"qualified short-term capital gains" (generally, the excess of the Fund's net
short-term capital gain over the Fund's long-term capital loss for such taxable
year). However, depending on its circumstances, the Fund may designate all, some
or none of its potentially eligible dividends as such qualified net interest
income or as qualified short-term capital gains, and/or treat such dividends, in
whole or in part, as ineligible for this exemption from withholding. In order to
qualify for this exemption from withholding, a non-U.S. shareholder will need to
comply with applicable certification requirements relating to its non-U.S.
status (including, in general, furnishing an IRS Form W-8BEN or substitute
Form). In the case of shares held through an intermediary, the intermediary may
withhold even if the Fund designates the payment as qualified net interest
income or qualified short-term capital gain. Non-U.S. shareholders should
contact their intermediaries with respect to the application of these rules to
their accounts.

The tax consequences to a foreign shareholder entitled to claim the benefits of
an applicable tax treaty may be different from those described herein. Foreign
shareholders should consult their own tax advisers with respect to the
particular tax consequences to them of an investment in the fund, including the
applicability of foreign taxes.

The foregoing is only a summary of certain material US federal income tax
consequences affecting the Fund and its shareholders. Current and prospective
shareholders are advised to consult their own tax advisors with respect to the
particular tax consequences to them of an investment in the Fund.

NET ASSET VALUE

The net asset value of shares of the 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 the Fund attributable to the shares of
that class, 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 the Fund because of higher expenses borne by these
classes.

An equity security is valued at its most recent sale price on the security's
primary exchange or over-the-counter ("OTC") market as of the Value Time.
Lacking any sales, the security is valued at the calculated mean between the
most recent bid quotation and the most recent asked quotation (the "Calculated
Mean") on such exchange or OTC market as of the Value Time. If it is not
possible to determine the Calculated Mean, the security is valued at the most
recent bid quotation on such exchange or OTC market as of the Value Time. In the
case of certain foreign exchanges or OTC markets, the closing price reported by
the exchange or OTC market (which may sometimes be referred to as the "official
close" or the "official closing price" or other similar term) will be considered
the most recent sale price.

Debt securities are valued as follows. Money market instruments purchased with
an original or remaining maturity of 60 days or less, maturing at par, are
valued at amortized cost. Other money market instruments are valued based on
information obtained from an approved pricing agent or, if such information is
not readily available, by using matrix pricing techniques (formula driven
calculations based primarily on current market yields). Bank loans are valued at
prices supplied by an approved pricing agent (which are intended to reflect the
mean between the bid and asked prices), if available, and otherwise at the mean
of the most recent bid and asked quotations or evaluated prices, as applicable,
based on quotations or evaluated prices obtained from one or more
broker-dealers. Privately placed debt securities, other than Rule 144A debt
securities, initially are valued at cost and thereafter based on all relevant
factors including type of security, size of holding and restrictions on
disposition. Municipal debt securities are valued at prices supplied by an
approved pricing agent (which are intended to reflect the mean between the bid
and asked prices), if available, and otherwise at the mean of the most recent
bid and asked quotations or evaluated price obtained from a broker-dealer. Other
debt securities are valued at prices supplied by an approved pricing agent, if
available, and otherwise at the most recent bid quotation or evaluated price, as
applicable, obtained from one or more broker-dealers. If it is not possible to
value a particular debt security pursuant to the above methods, the security is
valued on the basis of factors including (but not limited to) maturity, coupon,
creditworthiness, currency denomination, and the movement of the market in which
the security is normally traded.

An exchange-traded option contract on securities, currencies and other financial
instruments is valued at its most recent sale price on the relevant exchange.
Lacking any sales, the option contract is valued at the Calculated Mean. If it
is not possible to determine the Calculated Mean, the option contract is valued
at the most recent bid quotation in the case of a purchased option contract or
the most recent asked quotation in the case of a written option contract, in
each case as of the Value Time. An option contract on securities, currencies and
other financial instruments traded in the OTC market is valued on the Value Date
at the evaluated price provided by the broker-dealer with which it was traded.
Futures contracts (and options thereon) are valued at the most recent settlement
price, if available, on the security's primary exchange. With the exception of
stock index futures contracts, which trade on the Chicago Mercantile Exchange,
closing settlement times are prior to the close of trading on the New York Stock
Exchange. For stock index futures contracts which trade on the Chicago
Mercantile Exchange, closing settlement prices are normally available at
approximately 4:20 Eastern time. If no settlement price is available, the last
traded price on such exchange will be used.

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.

DIRECTORS AND OFFICERS

The following table presents certain information regarding the Board Members of
the Corporation. 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 Corporation 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 Corporation. Because the Fund does
not hold an annual meeting of shareholders, each Board Member will hold office
for an indeterminate period. The Board Members may also serve in similar
capacities with other funds in the DWS fund complex.

Independent Board Members

--------------------------------------------------------------------------------------------------------------------
Name, Year of Birth, Position Number of Funds
with the Corporation and Business Experience and in DWS Fund
Length of Time Served(1) Directorships During the Past 5 Years Complex Overseen
--------------------------------------------------------------------------------------------------------------------
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

Officers(6)

--------------------------------------------------------------------------------------------------------------------
Name, Year of Birth, Position
with the Corporation and Business Experience and
Length of 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)
--------------------------------------------------------------------------------------------------------------------

(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 Fund.

(5) Executive title, not a board directorship.

(6) As a result of their respective positions held with the Advisor, these
individuals are considered "interested persons" of the Advisor within
the meaning of the 1940 Act. Interested persons receive no compensation
from the Fund.

(7) The length of time served represents the year in which the officer was
first elected in such capacity for one or more DWS funds.

(8) Address: 345 Park Avenue, New York, New York 10154.

(9) Address: One Beacon Street, Boston, 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 Corporation 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 Fund and to
provide oversight of the management of the Fund.

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 Fund's accounting and
financial reporting policies and procedures, (3) the Fund's 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 Fund. It also approves and recommends
to the Board the appointment, retention or termination of the independent
registered public accounting firm for the Fund, reviews the scope of audit and
internal controls, considers and reports to the Board on matters relating to the
Fund's 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 Fund's 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 Fund's
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 Fund's financial
arrangements with DIMA and its affiliates, and (b) the Fund's 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 Fund's 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 Fund's Board performed similar
functions and held six (6) meetings.

Marketing and Shareholder Services Committee: The Marketing and Shareholder
Services Committee reviews the Fund's 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 Fund's 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 Fund. The
Operations Committee reviews administrative matters related to the operations of
the Fund, 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 Fund's
securities and other assets and determines, as needed, the fair value of Fund
securities or other assets under certain circumstances as described in the
Fund's 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 Expenses/Operations Committee and Valuation Committee
performed similar functions and each held nine (9) meetings and eight (8)
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 Fund
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 Fund 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 Fund,
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
Fund. The following tables show compensation from the Fund 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 Fund and received no compensation from the Fund or any
fund in the DWS fund complex during the relevant periods.

Total Compensation
Aggregate Compensation from Fund and
Name of Board Member from DWS Japan Equity Fund DWS Fund Complex(1)
-------------------- -------------------------- -------------------
John W. Ballantine $0 $215,000
Henry P. Becton, Jr.(2) $497 $200,000
Dawn-Marie Driscoll(2)(3) $623 $253,000
Keith R. Fox(2) $500 $203,000
Paul K. Freeman(4) $0 $265,000
Kenneth C. Froewiss(2) $493 $200,000
Richard J. Herring(2) $480 $195,000
William McClayton(5) $0 $205,000
Rebecca W. Rimel(2) $468 $194,000
William N. Searcy, Jr.(2) $493 $200,000
Jean Gleason Stromberg(2) $465 $189,000
Robert H. Wadsworth $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 Fund's 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 Fund

The following table shows the dollar range of equity securities beneficially
owned by each Board Member in the Fund and DWS fund complex as of June 30, 2008.

Aggregate Dollar Range of
Dollar Range of Beneficial Ownership in all Funds Overseen by
Ownership Board Member
Board Member in DWS Japan Equity Fund in the DWS Fund Complex(1)
------------ ------------------------ --------------------------
Independent Board Member:
-------------------------

John W. Ballantine None Over $100,000
Henry P. Becton, Jr. None Over $100,000
Dawn-Marie Driscoll $1-$10,000 Over $100,000
Keith R. Fox None Over $100,000
Paul K. Freeman None Over $100,000
Kenneth C. Froewiss None Over $100,000
Richard J. Herring None Over $100,000
William McClayton None Over $100,000
Rebecca W. Rimel None Over $100,000
William N. Searcy, Jr. None Over $100,000
Jean Gleason Stromberg None Over $100,000
Robert H. Wadsworth None Over $100,000

Interested Board Member:
------------------------

Axel Schwarzer 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 Fund, 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 Fund 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 Fund (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 Corporation owned,
as a group, less than 1% of the outstanding shares of the Fund.

To the best of the 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 Japan Equity Fund

Name and Address of Investor Ownership Shares % of Total Shares
-------------------------------------- ------ -----------------

MLPF&S FOR THE SOLE BENEFIT OF 778,116.11 26.3% of Class A
ITS CUSTOMERS
ATTN FUND ADM (97UE8)
JACKSONVILLE FL 32246-6484

MORGAN STANLEY & CO. 235,485.28 7.96% of Class A
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ 07311

WELLS FARGO INVESTMENTS LLC 231,936.21 7.84% of Class A
FBO CUSTOMER ACCOUNTS
ATTN MUTUAL FUND OPERATIONS
MINNEAPOLIS MN 55402-2323

CITIGROUP GLOBAL MARKETS INC 179,223.45 6.06% of Class A
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY 10001-2402

MLPF&S FOR THE SOLE BENEFIT OF 145,702.44 25.48% of Class B
ITS CUSTOMERS
ATTN FUND ADM (97UE9)
JACKSONVILLE FL 32246-6484

CITIGROUP GLOBAL MARKETS INC 71,549.79 12.51% of Class B
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY 10001-2402

MORGAN STANLEY & CO. 35,944.89 6.29% of Class B
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ 07311

MLPF&S FOR THE SOLE BENEFIT OF 616,730.65 28.88% of Class C
ITS CUSTOMERS
ATTN FUND ADM (9E116)
JACKSONVILLE FL 32246-6484

CITIGROUP GLOBAL MARKETS INC 465,071.49 21.78% of Class C
XXXXXXXXXX
ATTN PETER BOOTH 7TH FL
NEW YORK NY 10001-2402

MORGAN STANLEY & CO. 227,699.07 10.66% of Class C
HARBORSIDE FINANCIAL CENTER
PLAZA II 3RD FLOOR
JERSEY CITY NJ 07311

CHARLES SCHWAB & CO INC 375,103.18 15.26% of Class S
ATTN MUTUAL FUNDS DEPARTMENT
SAN FRANCISCO CA 94104-4151

KNOTFLOAT & CO 183,266.89 7.46% of Class S
C/O STATE STREET BANK
BOSTON MA 02206-5496

STATE STREET BANK & TRUST CO 160,739.75 6.54% of Class S
CUST FBO
DWS LIFECOMPASS 2020 FUND
QUINCY MA 02171-2105

STATE STREET BANK & TRUST CO 132,539.97 5.39% of Class S
CUST FBO
DWS LIFECOMPASS 2015 FUND
QUINCY MA 02171-2105

WILLIAM ERIC HOLZER 130,603.53 5.31% of Class S
HO HO KUS NJ 07423-1321

ELIZABETH S DICK 123,592.64 5.03% of Class S
C/O E DICK SMITH
BOSTON MA 02114-4131

Agreement to Indemnify Independent Directors 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 Directors of the Affected Funds, against certain
liabilities the Independent Directors 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 Directors 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 Directors ultimately would not be entitled to indemnification or (2)
for any liability of the Independent Directors to Affected the Funds or their
shareholders to which the Independent Director would otherwise be subject by
reason of willful misfeasance, bad faith, gross negligence or reckless disregard
of the Independent Director'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
Directors 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.

FUND ORGANIZATION

The Corporation was incorporated under the laws of the State of Maryland on May
22, 1997. The Corporation filed a registration statement with the SEC
registering itself as an open-end, diversified management investment company
under the Investment Company Act of 1940, as amended (the "1940 Act") and its
Shares under the Securities Act of 1933, as amended (the "1933 Act").

Prior to August 20, 2004, DWS Japan Equity Fund invested all of its investable
assets in the Japanese Equity Portfolio (the "Portfolio"), a series of the DWS
Investors Portfolios Trust, a diversified open-end management investment company
having the same investment objective as the Fund. Since August 20, 2004, DWS
Japan Equity Fund is now operating as a stand alone mutual fund that directly
acquires and manages its own portfolio of securities. The Fund may in the future
seek to achieve its investment objective by investing all of its net assets in
an investment company having the same investment objective policies and
restrictions as those of the Fund.

Under the Corporation's Articles of Incorporation, the Corporation is authorized
to issue Shares of common stock, par value of $.001 per share. The authorized
capital stock of the Corporation consists of 17,500,000,000 shares. The Board of
Directors may increase or decrease the number of authorized Shares without
shareholder approval. The Board of Directors of the Fund approved a
..7228027-for-1 split of the Class A shares of the Fund, and a 0.72649047-for-1
split of the Class S shares of the Fund, which was effective November 11, 2005.

The Corporation is an open-end management investment company. Prior to May 19,
2003, the Corporation was known as Deutsche Investors Funds, Inc. Prior to March
15, 2001, the Corporation was known as Flag Investors Funds, Inc. Prior to
January 18, 2000, the Corporation was known as Deutsche Funds, Inc. Prior to May
5, 1998, the Corporation was known as Deutsche Family of Funds, Inc. The
Corporation currently offers one fund, DWS Japan Equity Fund.

The Corporation's Articles of Incorporation provide for the establishment of
separate series or separate classes of Shares by the Directors at any time
without shareholder approval. The Corporation currently offers one series (DWS
Japan Equity Fund), and the Board has designated four classes of shares for the
Fund. In the event separate series or classes are established, all Shares of the
Corporation, regardless of series or class, would have equal rights with respect
to voting, except that with respect to any matter affecting the rights of the
holders of a particular series or class, the holders of each series or class
would vote separately. Each such series would be managed separately and
shareholders of each series would have an undivided interest in the net assets
of that series. For tax purposes, each series would be treated as a separate
entity. Generally, each class of Shares issued by a particular series would be
identical to every other class and expenses of the Corporation (other than 12b-1
and any applicable service fees) are prorated between all classes of a series
based upon the relative net assets of each class. Any matters affecting any
class exclusively would be voted on by the holders of such class.

Shareholders of the Corporation do not have cumulative voting rights, and
therefore the holders of more than 50% of the outstanding Shares voting together
for election of Directors may elect all the members of the Board of Directors of
the Corporation. In such event, the remaining holders cannot elect any members
of the Board of Directors of the Corporation.

There are no preemptive, conversion or exchange rights applicable to any of the
Shares. The Corporation's issued and outstanding Shares are fully paid and
non-assessable. In the event of liquidation or dissolution of the Corporation,
each Share is entitled to its portion of the Corporation's assets (or the assets
allocated to a separate series of shares if there is more than one series) after
all debts and expenses have been paid.

SHAREHOLDER RIGHTS AND BENEFICIAL OWNERSHIP INFORMATION

Voting Rights

Each share of the Fund or the class shall have equal rights with each other
share of the Fund or the class with respect to the assets of the Corporation
pertaining to the Fund or class. Upon liquidation of the Fund, shareholders of
each class are entitled to share pro rata in the net assets of the Fund
available for distribution to their class.

Shareholders of the Fund are entitled to one vote for each full share held and
to a fractional vote for fractional shares. Shareholders in the Fund generally
vote in the aggregate and not by class, unless the law expressly requires
otherwise or the Directors determine that the matter to be voted upon affects
only the interests of shareholders of a particular Fund or class of shares. The
voting rights of shareholders are not cumulative. Shares have no preemptive or
conversion rights (other than the automatic conversion of Class B Shares into
Class A Shares as described in the Prospectus). Shares are fully paid and
non-assessable by the Corporation. It is the intention of the Corporation not to
hold meetings of shareholders annually. The Directors of the Corporation may
call meetings of shareholders for action by shareholder vote as may be required
by the 1940 Act or as may be permitted by the Articles of Incorporation or
By-laws.

Directors may be removed by the Board or by shareholders at a special meeting. A
special meeting of shareholders will be called by the Board upon the written
request of shareholders who own at least 10% of the Corporation's outstanding
shares of all series entitled to vote.

The Corporation's Articles of Incorporation provide that the presence in person
or by proxy of the holders of record of one-third of the shares outstanding and
entitled to vote shall constitute a quorum at all meetings of shareholders of
the Fund, except as otherwise required by applicable law. The Articles of
Incorporation further provide that all questions shall be decided by a majority
of the votes cast at any such meeting at which a quorum is present, except as
otherwise required by applicable law.

The Corporation's Articles of Incorporation provide that, at any meeting of
shareholders of the Fund or a Class, a financial intermediary may vote any
shares as to which that financial intermediary is the agent of record and which
are otherwise not represented in person or by proxy at the meeting,
proportionately in accordance with the votes cast by holders of all shares
otherwise represented at the meeting in person or by proxy as to which that
financial intermediary is the agent of record. Any shares so voted by a
financial intermediary also are deemed represented at the meeting for purposes
of quorum requirements.

Shareholders owning 25% or more of outstanding Shares may be in control of the
Fund and be able to affect the outcome of certain matters presented for a vote
of shareholders.

Interests in the Fund have no preference, preemptive, conversion or similar
rights and are fully paid and non-assessable. The Fund is not required to hold
annual meetings of investors, but will hold special meetings of investors when,
in the judgment of its Directors, it is necessary or desirable to submit matters
for an investor vote. Each investor is entitled to a vote in proportion to the
share of its investment in the Fund.

As used in this SAI and the Prospectuses, the term "majority of the outstanding
voting securities" (as defined in the 1940 Act) currently means the vote of (i)
67% or more of the outstanding voting securities present at a meeting, if the
holders of more than 50% of the outstanding voting securities are present in
person or represented by proxy; or (ii) more than 50% of the outstanding voting
securities, whichever is less.

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 the Fund,
together with the Report of 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 herein by
reference and are hereby deemed to be a part of this Statement of Additional
Information.

ADDITIONAL INFORMATION

Other Information

The CUSIP numbers for each class of the Fund are:

Japan Equity Fund Class A Shares: 23339K109
Class B Shares: 23339K208
Class C Shares: 23339K307

The Fund has a fiscal year ending August 31.

The Fund's prospectus and this SAI omit certain information contained in the
Registration Statement and its amendments which the Fund has 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 the Fund and the
securities offered hereby.

The Corporation has filed with the SEC, 450 Fifth Street, N.W., Washington, D.C.
20549, a Registration Statement under the 1933 Act with respect to the
securities of the Fund and certain other series of the Corporation. If further
information is desired with respect to the Corporation, the Fund or such other
series, reference is made to the Registration Statement and the exhibits filed
as a part thereof. The Registration Statement and its amendments are available
for inspection by the public at the SEC in Washington, D.C.

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.

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

BOND AND COMMERCIAL PAPER RATINGS

Set forth below are descriptions of ratings which represent opinions as to the
quality of the securities. It should be emphasized, however, that ratings are
relative and subjective and are not absolute standards of quality.

MOODY'S INVESTORS SERVICE, INC. -- CORPORATE BOND RATINGS

Aaa: Bonds which are rated Aaa are judged to be of the highest quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt-edged." 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 fluctuations of protective elements
may be of greater amplitude or there may be other elements present which make
the long-term risk 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 safe-guarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.

B: Bonds which are rated B are considered speculative and 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 highly speculative.
Such issues are often in default or have other marked shortcomings.

C: Bonds which are rated C are the lowest rated class of bonds, typically are in
default and can be regarded as having extremely poor prospects of ever attaining
any real investment standing.

Note: Moody's appends numerical modifiers 1, 2 and 3 to each generic rating
classification from Aa through Caa in its corporate bond rating system. The
modifier 1 indicates that the issue ranks in the higher end of its generic
rating category; the modifier 2 indicates a mid-range ranking; and the modifier
3 indicates that the issue ranks in the lower end of its generic rating
category.

MOODY'S INVESTORS SERVICE, INC. -- SHORT-TERM RATINGS

Moody's short-term debt ratings are opinions of the ability of issuers to honor
short-term financial obligations. Ratings may be assigned to issuers, short-term
programs or to individual short-term debt instruments. Such obligations
generally have an original maturity not exceeding thirteen months, unless
explicitly noted. Issuers rated Prime-1 or P-1 (or supporting institutions) have
a superior ability for repayment of short-term debt obligations. Prime-1 or P-1
repayment ability will often be evidenced by many of the following
characteristics:

Leading market positions in well established industries.

High rates of return on funds employed.

Conservative capitalization structure with moderate reliance on debt and ample
asset protection.

Broad margins in earnings coverage of fixed financial charges and high internal
cash generation.

Well established access to a range of financial markets and assured sources of
alternate liquidity.

Issuers rated Prime-2 or P-2 (or supporting institutions) have a strong ability
for repayment of short-term debt obligations. This will normally be evidenced by
many of the characteristics cited above but to a lesser degree. Earnings trends
and coverage ratios, while sound, may be more subject to variation.
Capitalization characteristics, while still appropriate, may be more affected by
external conditions. Ample alternate liquidity is maintained.

STANDARD & POOR'S RATINGS SERVICES -- CORPORATE BOND RATINGS

INVESTMENT GRADE

AAA: Debt rated AAA has the highest rating assigned by S&P's to a debt
obligation. 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 bonds in higher rated categories.

BBB: Debt rated BBB has 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.

SPECULATIVE GRADE

Debt rated BB, B, CCC, CC, and C has significant speculative characteristics
with respect to capacity to pay interest and repay principal. BB indicates the
least degree of speculation and C the highest. While such debt will likely have
some quality and protective characteristics, these may be outweighed by large
uncertainties or major exposures to adverse conditions.

BB: Debt rated BB has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions which could lead to
inadequate capacity to meet timely interest and principal payments.

The BB rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied BBB- rating.

B: Debt rated B has a greater vulnerability to default but currently has the
capacity to meet interest payments and principal repayments. Adverse business,
financial, or economic conditions will likely impair capacity or willingness to
pay interest and repay principal.

The B rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied BB or BB- rating.

CCC: Debt rated CCC has a current vulnerability to default, and is dependent
upon favorable business, financial, and economic conditions to meet timely
payment of interest and repayment of principal. In the event of adverse
business, financial, or economic conditions, it is not likely to have the
capacity to pay interest and repay principal.

The CCC rating category is also used for debt subordinated to senior debt that
is assigned an actual or implied B or B- rating.

CC: Debt rated CC has a current high vulnerability to default, and is dependent
upon favorable business, financial, and economic conditions to meet timely
payment of interest and repayment of principal.

The rating CC is also applied to debt subordinated to senior debt which is
assigned an actual or implied CCC debt rating.

C: The rating C is typically applied to debt subordinated to senior debt which
is assigned an actual or implied CCC- debt rating. The C rating may be used to
cover a situation where a bankruptcy petition has been filed, but debt service
payments are continued.

C1: The Rating C1 is reserved for income bonds on which no interest is being
paid.

D: Debt rated D is in payment default. The D rating category is used when
interest payments or principal payments are not made on the date due even if the
applicable grace period has not expired, unless Standard & Poor's believes that
such payments will be made during such grace period. The D rating also will be
used upon the filing of a bankruptcy petition if debt service payments are
jeopardized.

Plus (+) or Minus (-): The ratings from AA to CCC may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.

R: Debt rated `R' is under regulatory supervision owing to its financial
condition. During the pendency of the regulatory supervision, the regulators may
have the power to favor one class of obligations over others or pay some
obligations and not others.

N.R.: Bonds may lack a S&P's rating because no public rating has been requested,
because there is insufficient information on which to base a rating, or because
S&P's does not rate a particular type of obligation as a matter of policy.

STANDARD & POOR'S RATINGS SERVICES -- SHORT-TERM RATINGS

S&P's commercial paper rating is a current assessment of the likelihood of
timely payment of debt considered short-term in the relevant market.

A-1: This highest category indicates that the degree of safety regarding timely
payment is strong. Those issues determined to possess extremely strong safety
characteristics are denoted with a plus (+) sign designation.

A-2: Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated A-1.

A-3: Issues carrying this designation have adequate capacity for timely payment.
However, adverse economic conditions or changing circumstances are more likely
to lead to a weakened capacity of the issuer to meet its financial commitments.

FITCH INVESTORS SERVICE, INC. -- BOND RATINGS

INVESTMENT GRADE

AAA: Bonds considered to be investment grade and of the highest credit quality.
The obligor has an exceptionally strong ability to pay interest and repay
principal, which is unlikely to be affected by reasonably foreseeable events.

AA: Bonds considered to be investment grade and of very high credit quality. The
obligor's ability to pay interest and repay principal is very strong, although
not quite as strong as bonds rated AAA. Bonds rated in the AAA and AA categories
are not significantly vulnerable to foreseeable events.

A: Bonds considered to be investment grade and of high credit quality. The
obligor's ability to pay interest and repay principal is considered to be
strong, but may be more vulnerable to adverse changes in economic conditions and
circumstances than bonds with higher ratings.

BBB: Bonds considered to be investment grade and of good credit quality. The
obligor's ability to pay interest and repay principal is considered to be
adequate. Adverse changes in economic conditions and circumstances, however, are
more likely to have adverse impact on these bonds, and therefore, impair timely
payment. The likelihood that the ratings of these bonds will fall below
investment grade is higher than for bonds with higher ratings.

SPECULATIVE GRADE

BB: Bonds are considered speculative. The obligor's ability to pay interest and
repay principal may be affected over time by adverse economic changes. However,
business or financial alternatives may be available which could assist the
obligor in satisfying its debt service requirements.

B: Bonds are considered highly speculative. While bonds in this class are
currently meeting debt service requirements, the probability of continued timely
payment of principal and interest reflects the obligor's limited margin of
safety and the need for reasonable business and economic activity throughout the
life of the issue.

CCC: Bonds have certain identifiable characteristics which, if not remedied, may
lead to default. The ability to meet obligations requires an advantageous
business and economic environment.

CC: Bonds are minimally protected. Default in payment of interest and/or
principal seems probable over time.

C: Bonds are in imminent default in payment of interest or principal.

DDD, DD, and D: Bonds are in default of interest and/or principal payments. Such
bonds are extremely speculative and should be valued on the basis of their
ultimate recovery value in liquidation or reorganization of the obligor. DDD
represents the highest potential for recovery on these bonds, and D represents
the lowest potential for recovery.

Plus (+) or Minus (-): The ratings from AA to CC may be appended by the addition
of a plus or minus sign to denote the relative status within the rating
category.

NR: Indicates that Fitch Rating does not publicly rate the specific issue.

FITCH INVESTORS SERVICE, INC. -- SHORT-TERM RATINGS

Fitch's short-term ratings apply to debt obligations that are payable on demand
or have original maturities of generally up to three years, including commercial
paper, certificates of deposit, medium-term notes, and municipal and investment
notes.

F-1+: Exceptionally Strong Credit Quality. Issues assigned this rating are
regarded as having the strongest capacity for timely payment.

F-1: Very Strong Credit Quality. Issues assigned this rating reflect a capacity
for timely payment only slightly less than issues rated F-1+.

F-2: Good Credit Quality. Issues assigned this rating have a satisfactory
capacity for timely payment, but the margin of safety is not as great as the
F-1+ and F-1 categories.

F-3: Fair Credit Quality. Issues assigned this rating have characteristics
suggesting that the capacity for timely payment is adequate; however, near-term
adverse changes could cause these securities to be rated below 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.



   SUPPLEMENT TO THE CURRENTLY EFFECTIVE STATEMENTS OF ADDITIONAL INFORMATION
                          OF EACH OF THE LISTED FUNDS:

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


Cash Account Trust                           DWS Europe Equity Fund                      DWS Mid Cap Growth Fund
    Government and Agency Securities         DWS Floating Rate Plus Fund                 DWS Money Market Prime Series
    Portfolio                                DWS Global Bond Fund                        DWS Money Market Series
    Money Market Portfolio                   DWS Global Opportunities Fund               DWS New York Tax-Free Income Fund
    Tax-Exempt Portfolio                     DWS Global Thematic Fund                    DWS RREEF Global Infrastructure Fund
Cash Management Fund Institutional           DWS GNMA Fund                               DWS RREEF Global Real Estate Securities
Cash Reserve Fund, Inc.                      DWS Gold & Precious Metals Fund                 Fund
    Prime Series                             DWS Growth & Income Fund                    DWS RREEF Real Estate Securities Fund
Cash Reserves Fund Institutional             DWS Health Care Fund                        DWS S&P 500 Index Fund
DWS Alternative Asset Allocation Plus Fund   DWS High Income Fund                        DWS S&P 500 Plus Fund
DWS Balanced Fund                            DWS High Income Plus Fund                   DWS Select Alternative Allocation Fund
DWS Blue Chip Fund                           DWS Inflation Protected Plus Fund           DWS Short Duration Fund
DWS California Tax-Free Income Fund          DWS Intermediate Tax/AMT Free Fund          DWS Short Duration Plus Fund
DWS Capital Growth Fund                      DWS International Fund                      DWS Short-Term Municipal Bond Fund
DWS Climate Change Fund                      DWS International Select Equity Fund        DWS Small Cap Core Fund
DWS Commodity Securities Fund                DWS International Value Opportunities Fund  DWS Small Cap Growth Fund
DWS Communications Fund                      DWS Japan Equity Fund                       DWS Strategic Government Securities Fund
DWS Core Fixed Income Fund                   DWS Large Cap Value Fund                    DWS Strategic High Yield Tax-Free Fund
DWS Core Plus Allocation Fund                DWS Large Company Growth Fund               DWS Strategic Income Fund
DWS Core Plus Income Fund                    DWS Latin America Equity Fund               DWS Target 2010 Fund
DWS Disciplined Long/Short Growth Fund       DWS LifeCompass 2015 Fund                   DWS Target 2011 Fund
DWS Disciplined Long/Short Value Fund        DWS LifeCompass 2020 Fund                   DWS Target 2012 Fund
DWS Disciplined Market Neutral Fund          DWS LifeCompass 2030 Fund                   DWS Target 2013 Fund
DWS Dreman Concentrated Value Fund           DWS LifeCompass 2040 Fund                   DWS Target 2014 Fund
DWS Dreman High Return Equity Fund           DWS LifeCompass Protect 2017 Fund           DWS Technology Fund
DWS Dreman Mid Cap Value Fund                DWS LifeCompass Retirement Fund             DWS U.S. Bond Index Fund
DWS Dreman Small Cap Value Fund              DWS Lifecycle Long Range Fund               DWS Value Builder Fund
DWS EAFE(R) Equity Index Fund                  DWS Managed Municipal Bond Fund             Investors Cash Trust
DWS Emerging Markets Equity Fund             DWS Massachusetts Tax-Free Fund                 Treasury Portfolio
DWS Emerging Markets Fixed Income Fund       DWS Micro Cap Fund                          NY Tax Free Money Fund
DWS Equity 500 Index Fund                                                                Tax Free Money Fund Investment
DWS Equity Income Fund                                                                   Tax-Exempt California Money Market Fund

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

The following information replaces similar disclosure under "Revenue Sharing" in
the "Purchase and Redemption of Shares" section of each Fund's/Portfolio's
Statements of Additional Information:

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 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.

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 Allied Securities
First Clearing/Wachovia Securities
HD Vest Investment Securities, Inc.
ING Advisors Network
John Hancock Distributors LLC
LPL Financial
M.L. Stern & Co.
Meridien Financial Group
Merrill Lynch, Pierce, Fenner & Smith Inc.
Morgan Stanley
Oppenheimer & Co., Inc.
PlanMember Services
Prime Capital Inc.
Raymond James & Associates
Raymond James Financial Services
RBC Dain Rauscher, Inc
Securities America, Inc.
UBS Financial Services
Wells Fargo Investments, LLC

                                       2



Channel: Cash Product Platform
------------------------------
Allegheny Investments LTD
Bank of America
Bank of New York (Hare & Co.)
BMO Capital Markets
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
J.P. Morgan Clearing Corp.
Legent Clearing LLC
Lincoln Investment Planning
LPL Financial
Mellon Financial Markets LLC
Mesirow Financial, Inc.
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.
Treasury Curve LLC
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
EquiTrust Life Insurance Company
Farm Bureau 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

                                       3



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.

               Please Retain This Supplement for Future Reference

March 17, 2009

                                       4

DWS INVESTORS FUNDS, INC.

DWS Japan Equity Fund
Class S

STATEMENT OF ADDITIONAL INFORMATION

December 1, 2008

Portions of the Annual Report to Shareholders, dated August 31, 2008, are
incorporated by reference as specified herein. Copies of the Fund's Annual
Report and Semi-Annual Report may be obtained without charge from Shareholder
Services by calling (800) 728-3337.

This Statement of Additional Information ("SAI") is incorporated by reference
into the applicable prospectuses.

TABLE OF CONTENTS

Page

INVESTMENT POLICIES...........................................................1

INVESTMENT OBJECTIVE AND RELATED POLICIES.....................................2
Special Considerations Regarding Japan..............................30
Portfolio Holdings .................................................33

MANAGEMENT OF THE FUND.......................................................35
Investment Advisor..................................................35

FUND SERVICE PROVIDERS.......................................................46
Administrator.......................................................46
Distributor ........................................................47
Custodian...........................................................48
Transfer Agent .....................................................48
Legal Counsel.......................................................49
Independent Registered Public Accounting Firm.......................49

PURCHASE AND REDEMPTION OF SHARES............................................52

DIVIDENDS....................................................................66

TAXES........................................................................68

NET ASSET VALUE..............................................................74

DIRECTORS AND OFFICERS.......................................................75

FUND ORGANIZATION............................................................92

SHAREHOLDER RIGHTS AND BENEFICIAL OWNERSHIP INFORMATION......................93

PROXY VOTING GUIDELINES......................................................94

FINANCIAL STATEMENTS.........................................................95

APPENDIX A -- PROXY VOTING GUIDELINES........................................96

APPENDIX B -- RATINGS OF INVESTMENTS.........................................121

INVESTMENT POLICIES

Fundamental Investment Policies

The Fund may not:

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. Borrow money, except as permitted under the 1940 Act, as amended, and
as interpreted or modified by regulatory authority having jurisdiction
from time to time.

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.

7. Make loans except as permitted under the 1940 Act, and as interpreted
or modified by regulatory authority having jurisdiction, from time to
time.

Non-Fundamental Investment Policies

The Fund may:

3. Not invest more than 10% of its net assets in unlisted securities and
notes.

4. Not sell any security short, except to the extent permitted by the 1940
Act. Transactions in futures contracts and options shall not constitute
selling securities short.

5. Not purchase securities on margin, but the Fund may obtain such
short-term credits as may be necessary for the clearance of
transactions.

6. As a matter of non-fundamental policy, the Fund currently does not
intend to lend portfolio securities in an amount greater than 33 1/3%
of its total assets.

Note: In connection with the first non-fundamental policy, shares of
another investment company managed by the Advisor or by another
investment advisor affiliated with the Advisor through a substantial
direct or indirect interest may be purchased, subject to certain
limitations, if the other investment company according to its
investment policies specializes in a specific geographic area or
economic sector. The Fund would not, however, pay a sales charge when
investing in an investment company managed by the Advisor or its
affiliates. In addition, no management or advisory fees would be paid
by the Fund with respect to its assets which are invested in investment
companies managed by the Advisor or its affiliates.

INVESTMENT OBJECTIVE AND RELATED POLICIES

Investment Objective

The investment objective of the Fund is to seek high capital appreciation. There
can, of course, be no assurance that the Fund will achieve its investment
objective.

The Fund seeks to achieve its objective by investing primarily in Japanese
equity securities (including American Depository Receipts), as described below.
In doing so, the Fund's investments in Japanese equity securities will be
primarily in common stocks of Japanese companies. However, the Fund may also
invest in other equity securities issued by Japanese entities, such as warrants
and convertible debentures, and in debt securities, such as those of the
Japanese government and of Japanese companies, when the Fund's advisor and
sub-advisor (together, the "Advisor") believe the potential for capital
appreciation from investment in debt securities equals or exceeds that available
from investment in equity securities.

The Fund may invest in a broad range of fixed income securities of all
maturities, however the Fund may invest up to 20% of its total assets in cash or
in short-term government or other short-term prime obligations in order to have
Funds readily available for general corporate purposes, including the payment of
operating expenses, dividends and redemptions, or the investment in securities
through exercise of rights or otherwise, or in repurchase agreements in order to
earn income for periods as short as overnight. Where the Advisor determines that
market or economic conditions so warrant, the Fund may, for temporary defensive
purposes, invest up to 100% of its total assets in cash and cash equivalents.
For instance, there may be periods when changes in market or other economic
conditions, or in political conditions, will make advisable a reduction in
equity positions and increased commitments in cash or corporate debt securities,
whether or not Japanese, or in the obligations of the government of the United
States or of Japan or of other governments. To the extent this happens, the Fund
will not be pursuing its objective of high capital appreciation.

The Fund may also invest up to 30% of its net assets in the equity securities of
Japanese companies that are traded in an over-the-counter market rather than
listed on a securities exchange. These are generally securities of relatively
small or little-known companies that the Fund's Advisor believes have
above-average earnings growth potential. Securities that are traded
over-the-counter may not be traded in the volumes typical on a national
securities exchange. Consequently, in order to sell this type of holding, in a
relatively short time period, the Fund may need to discount the securities from
recent prices or dispose of the securities over a long period of time. The
prices of this type of security may be more volatile than those of larger
companies, which are often traded on a national securities exchange.

Equity Securities

Warrants. The Fund may purchase warrants in value of up to 10% of the Fund's net
assets. Warrants are securities that give the Fund the right but not the
obligation to buy a specified number of shares of common stock at a specified
price, which is often higher than the market price at the time of issuance, for
a specified period (or in perpetuity). Warrants may be issued in units with
other securities or separately, and may be freely transferable and traded on
exchanges. Investing in warrants can provide a greater potential for profit or
loss than an equivalent investment in the underlying security, and thus, is a
speculative investment. At the time of issue, the cost of a warrant is
substantially less than the cost of the underlying security itself, and price
movements in the underlying security are generally magnified in the price
movements of the warrant. This leveraging effect enables the investor to gain
exposure to the underlying security with a relatively low capital investment.
This leveraging increases an investor's risk; however, in the event of a decline
in the value of the underlying security leveraging and can result in a complete
loss of the amount invested in the warrant.

While the market value of a warrant tends to be more volatile than that of the
securities underlying the warrant, changes in the market value of a warrant may
not necessarily correlate with that of the underlying security. A warrant ceases
to have value if it is not exercised prior to the expiration date, if any, to
which the warrant is subject. The purchase of warrants involves the risk that
the Fund could lose the purchase value of a warrant if the right to subscribe to
additional shares is not exercised prior to the warrant's expiration. Also, the
purchase of warrants involves the risk that the effective price paid for the
warrant added to the subscription price of the related security may exceed the
value of the subscribed security's market price, such as when there is no
movement in the level of the underlying security. The value of the warrant may
decline because of a decline in the value of the underlying security, the
passage of time, changes in the interest rates or dividend or other policies of
the company whose equity underlies the warrant or a change in the perception as
to the future price of the underlying security, market factors or any
combination thereof. Also warrants do not entitle the holder to dividends or
voting rights with respect to the underlying securities and do not represent any
rights to the assets of the issuing company.

Preferred Stocks. Preferred stock has a preference (i.e., ranks higher) in
liquidation (and generally in receiving dividends) over common stock but is
subordinated (i.e., ranks lower) in liquidation to fixed income securities.
Dividends on preferred stocks may be cumulative, and in such cases, all
cumulative dividends usually must be paid prior to dividend payments to common
stock shareholders. Because of this preference, preferred stocks generally
entail less risk than common stocks. As a general rule, the market value of
preferred stocks with fixed dividend rates and no conversion rights moves
inversely with interest rates and perceived credit risk, with the price
determined by the dividend rate. Some preferred stocks are convertible into
other securities (e.g., common stock) at a fixed price and ratio upon the
occurrence of certain events. The market price of convertible preferred stocks
generally reflects an element of conversion value. Because many preferred stocks
lack a fixed maturity date, these securities generally fluctuate substantially
in value when interest rates change; such fluctuations often exceed those of
long-term bonds of the same issuer. Some preferred stocks pay an adjustable
dividend that may be based on an index, formula, auction procedure or other
dividend rate reset mechanism. In the absence of credit deterioration,
adjustable rate preferred stocks tend to have more stable market values than
fixed rate preferred stocks.

Fixed Income Securities.

Fixed Income Security Risk. Fixed income securities generally expose the Fund to
four 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 the 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); and (4) prepayment risk
or call risk (the likelihood that, during a period 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 the generally lower
interest rates).

Insurance Contracts. Insurance contracts include guaranteed investment
contracts, funding agreements and annuities. The Fund treats these contracts as
fixed income securities.

Short-Term Instruments.

Short-term instruments consist of foreign and domestic: (1) short-term
obligations of sovereign governments, their agencies, instrumentalities,
authorities or political subdivisions; (2) other short-term debt securities
rated AA or higher by "S&P" or Aa or higher by "Moody's" or, if unrated, deemed
to be of comparable quality in the opinion of the Advisor; (3) commercial paper;
(4) bank obligations, including negotiable certificates of deposit, time
deposits and bankers' acceptances; and (5) repurchase agreements. At the time
the Fund invests in commercial paper, bank obligations or repurchase agreements,
the issuer or the issuer's parent must have outstanding debt rated AA or higher
by S&P or Aa or higher by Moody's; outstanding commercial paper or bank
obligations rated A-1 by S&P or Prime-1 by Moody's; or, if no such ratings are
available, the instrument must be deemed to be of comparable quality in the
opinion of the Advisor. These instruments may be denominated in US dollars or in
foreign currencies. The Fund may invest in bank deposits and money market
instruments maturing in less than 12 months.

To the extent the Fund engages in short-term trading, it may realize short-term
capital gains or losses and incur increased transaction costs, which may affect
return.

There is no additional percentage limitation with respect to investments in
negotiable certificates of deposit, fixed time deposits and bankers' acceptances
of US branches of US banks and US branches of non-US banks that are subject to
the same regulation as US banks. Since the Fund may contain US
dollar-denominated certificates of deposit, fixed time deposits and bankers'
acceptances that are issued by non-US banks and their non-US branches, the Fund
may be subject to additional investment risks with respect to those securities
that are different in some respects from obligations of US issuers, such as
currency exchange control regulations, the possibility of expropriation, seizure
or nationalization of non-US deposits, less liquidity and more volatility in
non-US securities markets and the impact of political, social or diplomatic
developments or the adoption of other foreign government restrictions which
might adversely affect the payment of principal and interest on securities held
by the Fund. If it should become necessary, greater difficulties might be
encountered in invoking legal processes abroad than would be the case in the
United States. Issuers of non-US bank obligations may be subject to less
stringent or different regulations than US bank issuers, there may be less
publicly available information about a non-US issuer, and non-US issuers
generally are not subject to uniform accounting and financial reporting
standards, practices and requirements comparable to those applicable to US
issuers. Income earned or received by the Fund from sources within countries
other than the United States may be reduced by withholding and other taxes
imposed by such countries. Tax conventions between certain countries and the
United States, however, may reduce or eliminate such taxes. All such taxes paid
by the Fund would reduce its net income available for distribution to investors
(i.e., the Fund and other investors in the Fund. While early withdrawals are not
contemplated, fixed time deposits are not readily marketable and may be subject
to early withdrawal penalties, which may vary. Assets of the Fund are not
invested in obligations of the Advisor, the Distributor, or in the obligations
of the affiliates of any such organization. Assets of the Fund are also not
invested in fixed time deposits with a maturity of over seven calendar days, or
in fixed time deposits with a maturity of from two business days to seven
calendar days if more than 10% of the Fund's net assets would be invested in
such deposits.

Reverse Repurchase Agreements. Reverse repurchase agreements may be entered into
by the Fund only with a "primary dealer" (as designated by the Federal Reserve
Bank) in US government securities. This is an agreement in which the Fund agrees
to repurchase securities sold by it at a mutually agreed upon time and price. As
such, it is viewed as the borrowing of money by the Fund. Proceeds of borrowings
under reverse repurchase agreements are available for investment and other
purposes for the Fund. Such purposes may involve the speculative factor known as
"leverage." If interest rates rise during the term of a reverse repurchase
agreement utilized for leverage, the value of the securities to be repurchased
by the Fund as well as the value of securities purchased with the proceeds will
decline. Proceeds of a reverse repurchase transaction are not invested for a
period which exceeds the duration of the reverse repurchase agreement. A reverse
repurchase agreement is not entered into by the Fund if, as a result, more than
one- third of the market value of the Fund's total assets, less liabilities
other than the obligations created by reverse repurchase agreements, is engaged
in reverse repurchase agreements. In the event that such agreements exceed, in
the aggregate, one-third of such market value, the amount of the Fund's
obligations created by reverse repurchase agreements is reduced within three
days thereafter (not including Sundays and holidays) or such longer period as
the SEC may prescribe.

Derivative Securities.

The Fund may invest in various instruments that are commonly known as
"derivatives." Generally, a derivative is a financial arrangement, the value of
which is based on, or "derived" from, a traditional security, asset or market
index. Some "derivatives" such as mortgage-related and other asset-backed
securities are in many respects like any other investment, although they may be
more volatile and/or less liquid than more traditional debt securities. There
are, in fact, many different types of derivatives and many different ways to use
them. There is a range of risks associated with those uses. For example, the
Fund may use futures and options as a low-cost method of gaining exposure to a
particular securities market without investing directly in those securities and
for traditional hedging purposes to attempt to protect the Fund from exposure to
changing interest rates, securities prices or currency exchange rates and for
cash management or other investment purposes. The use of derivatives may result
in leverage, which tends to magnify the effects of an instrument's price changes
as market conditions change. Leverage involves the use of a small amount of
money to control a large amount of financial assets, and can in some
circumstances, lead to significant losses. The Fund will limit the leverage
created by its use of derivatives for investment purposes by "covering" such
positions as required by the SEC. The Advisor may use derivatives for hedging
and risk management purposes, such as in circumstances where the Advisor
believes they offer an economical means of gaining exposure to a particular
asset class but not for speculation. In addition, derivatives will not be used
to acquire exposure to changes in the value of assets or indexes that by
themselves would not be purchased for the Fund. The use of derivatives for
non-hedging purposes may be considered speculative.

Options on Securities. The Fund may purchase and write (sell) put and call
options on stocks. Options are rights, but not obligations, to buy or sell an
underlying asset for a specified price (the exercise price) during, or at the
end of, a specified period. A call option gives the purchaser of the option the
right (but not the obligation) to buy, and obligates the writer to sell, the
underlying stock at the exercise price at any time during the option period.
Similarly, a put option gives the purchaser of the option the right (but not the
obligation) to sell, and obligates the writer to buy the underlying stock at the
exercise price at any time during the option period.

The Fund would normally purchase put options in anticipation of a decline in the
market value of securities in its portfolio ("protective puts") or securities of
the type permitted to invest. The purchase of a put option would entitle the
Fund, in exchange for the premium paid, to sell a security, which may or may not
be held by the Fund at a specified price during the option period. The purchase
of protective puts is designed merely to offset or hedge against a decline in
the market value of securities held by the Fund. Put options also may be
purchased by the Fund for the purpose of affirmatively benefiting from a decline
in the price of securities that the Fund does not own. The Fund would ordinarily
recognize a gain if the value of the securities decreased below the exercise
price sufficiently to cover the premium and would recognize a loss if the value
of the securities remained at or above the exercise price. Gains and losses on
the purchase of protective put options would tend to be offset by countervailing
changes in the value of underlying portfolio securities.

The staff of the SEC has taken the position that, in general, purchased OTC
options and the underlying securities used to cover written OTC options are
illiquid securities.

Warrants on Futures Contracts. The Fund may purchase warrants which, like
options on futures contracts and options on securities indices, entitle the
holder to purchase or sell a futures contract or to a cash payment reflecting
the price fluctuation in an index of securities. The Fund may also purchase
warrants that entitle the holder to a cash payment reflecting the fluctuation in
the value of certain financial futures contracts. Warrants on futures contracts
and warrants on securities indices differ from the equivalent options in that:
(1) they are securities issued by a financial institution/special purpose issuer
rather than contracts entered into with a futures exchange and (2) they are
traded on a securities exchange rather than on a futures exchange. The use of
warrants will generally entail the same risks that are associated with the
Fund's positions in options on futures and options on securities indices.

Securities of Non-US Based Issuers.

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 the Fund's securities in such markets may
not be readily available. The Fund may suspend redemption of its shares for any
period during which an emergency exists, as determined by the SEC. Accordingly
if the Fund believes that appropriate circumstances exist, it will apply to the
SEC for a determination that an emergency is present. During the period
commencing from the 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 the Fund's
Board.

The Fund considers an issuer to be based outside the United States if:

o it is organized under the laws of, or has a principal office located
in, another country; or

o the principal trading market for its securities is in another country;
or

o it (or its subsidiaries) derived in its most current fiscal year at
least 50% of its total assets, capitalization, gross revenue or profit
from goods produced, services performed, or sales made a country other
than the US.

Currency Management.

Additional Limitations and Risk Factors.

Asset Segregation

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.

Liquidity. OTC derivative contracts are considered to be illiquid and generally
carry greater liquidity risk than exchange-traded contracts.

Many fixed income securities receive credit ratings from services such as S&P
and Moody's. These services assign ratings to securities by assessing the
likelihood of issuer default. Lower credit ratings correspond to higher credit
risk. If a security has not received a rating, the Fund must rely entirely upon
the Advisor's credit assessment.

As noted above, the Fund intends to adhere to certain policies relating to the
use of futures contracts, which should have the effect of limiting the amount of
leverage by the Fund.

Other Investments and Investment Practices.

Securities in which the Fund Invests

Following is a table that indicates which types of securities are:

o P = PRINCIPAL investments of the Fund (bolded in chart)

o A = ACCEPTABLE (but not principal) investments of the Fund

Type
of Security

Equity Securities P
Common Stocks P
Warrants A
Preferred Stocks A
Convertible Securities A
Participation Certificates A
Real Estate Investment Trusts ("REITs") A
Initial Public Offerings ("IPOs") A

Short-Term Instruments A
Commercial Paper A
Bank Instruments A
Repurchase Agreements A
Reverse Repurchase Agreements A

Securities of Non-US Based Issuers P
Foreign Government Debt Securities A
Brady Bonds A
Other Investments
To Be Announced Securities ("TBA") A
Special Transactions A
When-Issued and Delayed Delivery Securities A
Securities Lending A
Borrowing A
Interests in Other Limited Liability Companies A

Special Considerations Regarding Japan

Economic Background.

Securities Markets.

Differences in accounting methods make it difficult to compare the earnings of
Japanese companies with those of companies in other countries, especially the
United States.

Foreign Trade.

Natural Resource Dependency.

Energy.

Natural Disasters.

Portfolio Holdings

MANAGEMENT OF THE FUND

Investment Advisor

DIMA, which is part of Deutsche Asset Management ("DeAM"), is the investment
advisor for the Fund. Under the supervision of the Board of Directors of the
Fund, with headquarters at 345 Park Avenue, New York, New York, DIMA is
responsible for making the Fund's investment decisions, and for managing the
Fund's investment and business affairs, subject to the policies established by
the Board. DIMA has delegated day-to-day investment management for the Fund to
the Fund's sub-advisor, Deutsche Asset Management (Japan) Limited ("DeAMJ").
DeAMJ is subject to DIMA's oversight. See "Investment Sub-Advisor to the Fund"
below. DIMA and its predecessors have more than 80 years of experience managing
mutual funds and provides a full range of investment advisory services to
institutional and retail clients. The Fund's investment advisor is also
responsible for selecting brokers and dealers and for negotiating brokerage
commissions and dealer charges.

The portfolio manager is responsible for developing the Fund's investment
strategy and is supported by a staff of economists, research analysts, traders
and other investment specialists.

Investment Management Agreement

Pursuant to the investment management agreement between the Corporation and DIMA
the ("Investment Management Agreement"), the Advisor is responsible for
providing continuing investment management of the assets of the Fund. The
Advisor will also monitor, to the extent not monitored by the Fund's
administrator or other agent, the Fund's compliance with its investment and tax
guidelines and other compliance policies.

For the fiscal year ended August 31, 2008, the Fund paid advisory fees of
$1,022,275. For the fiscal year ended August 31, 2007, the Fund paid advisory
fees of $1,806,926.

* Prior to June 1, 2006, these fees included an administrative service fee.

Investment Sub-Advisor to the Fund

On behalf of the Fund, DIMA has entered into an investment sub-advisory
agreement (Sub-Advisory Agreement) with DeAMJ. DeAMJ is a registered investment
advisor whose address is Sanno Park Tower, 2-11-1 Nagata-Cho, Chiyoda-ku, Tokyo,
Japan 100-6173. It is the Sub-Advisor's responsibility, under the overall
supervision of DIMA, to conduct the day-to-day investment decisions of the Fund,
arrange for the execution of portfolio transactions and generally manage the
Fund's investments in accordance with its investment objective, policies and
restrictions. Effective December 1, 2007, DeAMJ has delegated its back office
trading capability to Deutsche Asset Management (Asia) Limited, a wholly-owned
subsidiary of Deutsche Bank. For these services, the Sub-Advisor receives from
DIMA and not the Fund, each quarter and as full compensation therefore, 50% of
the total (net) investment advisory fee received by DIMA. The Sub-Advisor may
waive a portion of the fees it receives from DIMA to DeAMJ. For the fiscal years
ended August 31, 2008, 2007 and 2006, DIMA paid sub-advisory fees to DeAMJ of $
315,252, $903,463 and $717,388, respectively.

The Sub-Advisor shall not be liable to the Corporation, or any Fund shareholder
for any losses that may be sustained in the purchase, holding, or sale of any
security or for anything done or omitted by it, except acts or omissions
involving willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties imposed upon it by its contract.

Compensation of the Portfolio Manager

Portfolio managers are eligible for total compensation comprised of base salary
and discretionary incentive compensation.

The quantitative analysis of a portfolio manager's performance is given more
weight in determining discretionary incentive compensation than the qualitative
portion.

Fund Ownership of Portfolio Managers

Dollar Range of Dollar Range of All DWS
Name of Portfolio Manager Fund Shares Owned Fund Shares Owned
------------------------- ----------------- -----------------
Kenji Chihara $0 $0

Conflicts of Interest

Other SEC Registered Investment Companies Managed:

Kenji Chihara 0 $0 0 $0

Other Pooled Investment Vehicles Managed:

Kenji Chihara 6 $22,491,557 0 $0

Other Accounts Managed:

Kenji Chihara 0 $0 0 $0

Codes of Ethics

Regulatory Matters and Legal Proceedings

Additional information announced by DeAM regarding the terms of the settlements
is available at www.dws-investments.com/regulatory_settlements.

FUND SERVICE PROVIDERS

Administrator

Effective July 1, 2006, the Fund entered into a new administrative services
agreement with the Advisor (the "Administrative Services Agreement"), pursuant
to which the Advisor provides administrative services to the Fund including,
among others, providing the Fund with personnel, preparing and making required
filings on behalf of the Fund, maintaining books and records for the Fund, and
monitoring the valuation of Fund securities. For all services provided under the
Administrative Services Agreement, the Fund pays the Advisor a fee, computed
daily and paid monthly, of 0.100% of the Fund's average daily net assets. For
the fiscal year ended August 31, 2008, the Advisor received an administrative
fee of $120,268. For the fiscal year ended August 31, 2007, the Advisor received
an administrative fee of $212,580. For the period from July 1, 2006-August 31,
2006, the Advisor received an administrative fee of $34,736.

Distributor

Pursuant to a Distribution Agreement ("Distribution Agreement"), DWS Investments
Distributors, Inc. ("DIDI"), 222 South Riverside Plaza, Chicago, Illinois 60606,
an affiliate of the Advisor, is the principal underwriter and distributor for
the Class S shares of the Fund and acts as agent of the Fund in the continuous
offering of its shares. The Distribution Agreement continues in effect from year
to year only if its continuance is approved for each class at least annually by
a vote of the Board members of the Fund, including Directors who are not
interested persons of the Fund and who have no direct or indirect financial
interest in the Distribution Agreement.

The Distribution Agreement provides that the Distributor shall: (i) use
reasonable efforts to sell shares upon the terms and conditions contained in the
Distribution Agreement and the Fund's then-current Prospectuses; (ii) use its
best efforts to conform with the requirements of all federal and state laws
relating to the sale of the shares; (iii) adopt and follow procedures as may be
necessary to comply with the requirements of the National Association of
Securities Dealers, Inc. (now the Financial Industry Regulatory Authority
("FINRA")) and any other applicable self-regulatory organization; (iv) perform
its duties under the supervision of and in accordance with the directives of the
Fund's Board of Directors and the Fund's Articles of Incorporation; and (v)
provide the Fund's Board of Directors with a written report of the amounts
expended in connection with the Distribution Agreement. The Distributor shall
devote reasonable time and effort to effect sales of shares but shall not be
obligated to sell any specific number of shares. The services of the Distributor
are not exclusive and the Distributor shall not be liable to the Fund or its
shareholders for any error of judgment or mistake of law, for any losses arising
out of any investment, or for any action or inaction of the Distributor in the
absence of bad faith, willful misfeasance, or gross negligence in the
performance of its duties or obligations under the Distribution Agreement or by
reason of the reckless disregard of its duties and obligations under the
Distribution Agreement. The Distribution Agreement further provides that the
Fund and the Distributor will mutually indemnify each other for losses relating
to disclosures in the Fund's registration statement.

Although Class S does not have a 12b-1 Plan, and the Directors have no current
intention of adopting one, the Fund will also pay those fees and expenses
permitted to be paid or assumed by the Fund pursuant to a 12b-1 Plan, if any,
adopted by the Fund, notwithstanding any other provision to the contrary in the
Distribution Agreement.

Custodian

Brown Brothers Harriman and Co. (the "Custodian"), 40 Water Street, Boston,
Massachusetts 02109, serves as the Fund's custodian pursuant to a Custodian
Agreement. Under the Custodian Agreement with the Corporation, the Custodian (i)
maintains separate accounts in the name of the Fund, (ii) holds and transfers
portfolio securities on account of the Fund, (iii) accepts receipts and makes
disbursements of money on behalf of the Fund, (iv) collects and receives all
income and other payments and distributions on account of the Fund's portfolio
securities and (v) makes periodic reports to the Corporation's Board of
Directors concerning the Fund's operations. The Custodian is authorized to
select one or more foreign or domestic banks or companies to serve as
sub-custodian on behalf of the Fund, pursuant to Rule 17f-5 or the 1940 Act.

Transfer Agent

DWS Investments Service Company ("DISC"), 210 W. 10th Street, Kansas City, MO
64105-1614, an affiliate of the Advisor, serves as transfer agent,
dividend-paying agent and shareholder service agent of the Corporation on behalf
of the Fund pursuant to a transfer agency agreement. Under its transfer agency
agreement with the Corporation, DISC maintains the shareholder account records
for the Fund, handles certain communications between shareholders and the Fund
and causes to be distributed any dividends and distributions payable by the
Fund. DISC may be reimbursed by the Fund for its out-of-pocket expenses.

The Fund pays DISC a fee based on the size, type, and number of accounts and
transactions made by shareholders.

Legal Counsel

Willkie Farr & Gallagher LLP serves as counsel to the Fund.

Ropes & Gray LLP, One International Place, Boston, Massachusetts 02110-2624,
serves as co-counsel to the Independent Directors of the Company.

Vedder Price P.C., 222 North LaSalle Street, Chicago, Illinois 60601, serves as
co-counsel to the Independent Directors of the Company.

Independent Registered Public Accounting Firm

The financial highlights of the Fund included in the Fund's Prospectuses and the
financial statements incorporated by reference into 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, MA 02110,
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 Fund and provides other audit, tax and related
services. Shareholders will receive annual audited financial statements and
semi-annual unaudited financial statements.

PORTFOLIO TRANSACTIONS

The percentage of the Fund's commissions paid to affiliated brokers, the
percentage of transactions involving commissions paid to affiliated brokers, the
dollar amount of commissions paid to brokers for research services is set forth
below for the fiscal year ended August 31, 2008:

Percentage of Percentage of Transactions Dollar Amount of
Commissions Paid to Involving Commissions Paid Commissions Paid to
Affiliated to Brokers for
Name of Fund Brokers Affiliated Brokers Research Services
------------ ------- ------------------ -----------------
DWS Japan Equity Fund 0% 0% $0

Name of Issuer Value of Holdings
--------------- -----------------
NOMURA HOLDINGS, INC. $763,000
SBI HOLDINGS, INC. $1,276,000
MITSUBISHI UFJ FINANCIAL GROUP, INC. $2,268,000
KENEDIX, INC. $1,739,000

Portfolio Turnover

Although the Fund does not intend to invest for the purpose of seeking
short-term profits, securities in the Fund will be sold whenever the Advisor
believes it is appropriate to do so in light of the investment objectives of the
Fund, without regard to the length of time a particular security may have been
held. A 100% annual turnover rate would occur, for example, if all portfolio
securities (excluding short-term obligations) were replaced once in a period of
one year, or if 10% of the portfolio securities were replaced ten times in one
year. The rate of portfolio turnover of the Fund may exceed that of certain
other mutual funds with the same investment objectives. The amount of brokerage
commissions and taxes on realized capital gains to be borne by the shareholders
of the Fund tend to increase as the level of portfolio activity increases.

The portfolio turnover rate for the fiscal years ended August 31, 2008 and 2007
were 105% and 120%, respectively.

PURCHASE AND REDEMPTION OF SHARES

General Information

A distribution will be reinvested in shares of the same Fund and class if the
distribution check is returned as undeliverable.

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 the 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 the Fund through the Shareholder Service Agent for these
services.

The Fund has authorized one or more financial service institutions, including
certain members of the FINRA other than the Distributor ("financial
institutions"), to accept purchase and redemption orders for the Fund's shares.
Such financial institutions may also designate other parties, including plan
administrator intermediaries, to accept purchase and redemption orders on the
Fund's behalf. Orders for purchases or redemptions will be deemed to have been
received by the Fund when such financial institutions or, if applicable, their
authorized designees accept the orders. Subject to the terms of the contract
between the Fund and the financial institution, ordinarily orders will be priced
at the Fund's net asset value next computed after acceptance by such financial
institution or its authorized designees and accepted by the Fund. Further, if
purchases or redemptions of the 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 Directors and the Distributor, also the Fund's
principal underwriter, each has the right to limit the amount of purchases by,
and to refuse to sell to, any person. The Directors and the Distributor may
suspend or terminate the offering of shares of the Fund at any time for any
reason.

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.

Dividend Payment Option. Investors may have dividends and distributions
automatically deposited to their predesignated bank account through DWS
Simplified 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 a 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.

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.

Purchases

Eligible Class S Investors

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 the Funds of DWS Allocation 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

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: 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.

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.

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.

Redemptions

Redemption fee. The Fund imposes a redemption fee of 2% of the total redemption
amount (calculated at net asset value) on all Fund shares redeemed or exchanged
within 15 days of buying them (either by purchase or exchange). The redemption
fee is paid directly to the Fund, and is designed to encourage long-term
investment and to offset transaction and other costs associated with short-term
or excessive trading. For purposes of determining whether the redemption fee
applies, shares held the longest time will be treated as being redeemed first
and shares held the shortest time will be treated as being redeemed last. The
redemption fee is applicable to fund shares purchased either directly or through
a financial intermediary, such as a broker-dealer. Transactions through
financial intermediaries typically are placed with the Fund on an omnibus basis
and include both purchase and sale transactions placed on behalf of multiple
investors. These purchase and sale transactions are generally netted against one
another and placed on an aggregate basis; consequently the identities of the
individuals on whose behalf the transactions are placed generally are not known
to the Fund. For this reason, the Fund has undertaken to notify financial
intermediaries of their obligation to assess the redemption fee on customer
accounts and to collect and remit the proceeds to the Fund. However, due to
operational requirements, the intermediaries' methods for tracking and
calculating the fee may be inadequate or differ in some respects from the
Fund's.

A distribution will be reinvested in shares of the same fund and class if the
distribution check is returned as undeliverable.

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.

Wires. Delivery of the proceeds of a wire redemption of $250,000 or more may be
delayed by the 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 Fund is 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 the Fund's
shares at the offering price 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 Automatic
Withdrawal Plan must reinvest Fund dividends.

Non-retirement plan shareholders may establish an Automatic Withdrawal 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 Automatic Withdrawal 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 the 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 Corporation or its agent on
written notice, and will be terminated when all shares of the Fund under the
Automatic Withdrawal 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
1-800-225-5163 for Class S.

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.

Shareholders must obtain prospectuses of the funds they are exchanging into from
dealers, other firms or DIDI.

DIVIDENDS

Dividends paid by the Fund with respect to each class of its shares will be
calculated in the same manner, at the same time and on the same day.

1. To receive income and short-term capital gain dividends in cash and
long-term capital gain dividends in shares of the same class at net
asset value; or

2. To receive income and capital gain dividends in cash.

Dividends will be reinvested in shares of the same class of the Fund unless
shareholders indicate in writing that they wish to receive them in cash or in
shares of other DWS Funds with multiple classes of shares or DWS Funds as
provided in the prospectus. To use this privilege of investing dividends of the
Fund in shares of another DWS Fund, shareholders must maintain a minimum account
value of $1,000 in the Fund distributing the dividends. The Fund will reinvest
dividend checks (and future dividends) in shares of that same Fund and class if
checks are returned as undeliverable. Dividends and other distributions of the
Fund in the aggregate amount of $10 or less are automatically reinvested in
shares of the same class of the Fund unless the shareholder requests in writing
that a check be issued for that particular distribution.

If the investment is in the form of a retirement plan, all dividends and capital
gains distributions must be reinvested into the shareholders account.

If a shareholder has elected to reinvest any dividends and/or other
distributions, such distributions will be made in shares of the 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 or
cash.

TAXES

(b) The Fund must diversify its holdings so that, at the end of each
quarter of its taxable year (i) at least 50% of the market value of the
Fund's assets is represented by cash and cash items, US government
securities, securities of other regulated investment companies, and
other securities limited in respect of any one issuer of such other
securities to a value not greater than 5% of the value of the Fund's
total assets and to not more than 10% of the outstanding voting
securities of such issuer, and (ii) not more than 25% of the value of
its assets is invested in the securities (other than those of the US
Government or other regulated investment companies) of any one issuer,
of two or more issuers in which the Fund owns 20% or more of the voting
stock and which are engaged in the same, similar, or related trades or
businesses or in the securities of one or more qualified publicly
traded partnerships.

If for any taxable year the Fund does not qualify for the special federal income
tax treatment afforded regulated investment companies, 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 and
net long-term capital gains, would be taxable to shareholders as ordinary
income. Such distributions would be eligible (i) to be treated as "qualified
dividend income" in the case of individual and other noncorporate shareholders,
subject to reduced rates of federal income taxation for taxable years beginning
before January 1, 2011 and (ii) for the 70% 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 regulated investment company
that is accorded special tax treatment.

For taxable years beginning before January 1, 2011, "qualified dividend income"
received by an individual will be taxed at the rates applicable to long-term
capital gain. Qualified dividend income does not include interest from
fixed-income securities. In order for some portion of the dividends received by
a Fund shareholder to be qualified dividend income, the Fund must meet holding
period and other requirements with respect to some portion of the
dividend-paying stocks in its portfolio and the 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, or (3) if the recipient elects to have the dividend income
treated as investment income for purposes of the limitation on deductibility of
investment interest. In order for a dividend paid by a foreign corporation to
constitute "qualified dividend income," the foreign corporation must (1) be
eligible for the benefits of a comprehensive income tax treaty with the United
States (or the stock on which the dividend is paid must be readily tradable on
an established securities market in the United States), and (2) not be treated
as a passive foreign investment company.

Sale or redemption of shares. The sale, exchange or redemption of fund shares
may 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 for more than one year. Otherwise, the gain or loss
on the taxable disposition of fund shares will be treated as short-term capital
gain or loss. However, any loss realized upon a taxable disposition of shares
held for six months or less will be treated as long-term, rather than
short-term, to the extent of any long-term capital gain distributions 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 fund shares 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.

Dividends received deduction. It is not anticipated that dividends from domestic
corporations will comprise a substantial part of the Fund's gross income. If any
such dividends constitute a portion of the Fund's gross income, a portion of the
income distributions of the Fund 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 the Fund with respect to which the dividends are
received are treated as debt-financed under federal income tax law and is
eliminated if either those shares or the shares of the Fund are deemed to have
been held by the Fund or the 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.

Passive Foreign Investment Companies. Equity investments by the Fund in certain
"passive foreign investment companies" ("PFICs") could potentially subject the
Fund 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 the
Fund shareholders. However, the Fund may elect to avoid the imposition of that
tax. For example, the Fund may elect to treat a PFIC as a "qualified electing
fund" (a "QEF election"), in which case the Fund will 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 Fund 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 Fund's taxable year. The election must be made separately
for each PFIC owned and, one made, would be effective for all subsequent tax
years unless revoked with the consent of the Internal Revenue Service (the
"IRS"). Such gains and losses are treated as ordinary income and loss. The QEF
and mark-to-market elections may accelerate the recognition of income (without
the receipt of cash) and increase the amount required to be distributed by the
Fund to avoid taxation. Making either of these elections therefore may require
the Fund 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 Fund's total return. Dividends paid by PFICs
will not be eligible to be treated as "qualified dividend income."

Tax effects of certain transactions. The Fund's use of options, futures
contracts, forward contracts (to the extent permitted) and certain other
Strategic Transactions will be subject to special tax rules (including
mark-to-market, constructive sale, straddle, wash sale, short sale and other
rules), the effect of which may be to accelerate income, defer losses, cause
adjustments in the holding periods of portfolio securities, convert capital
gains into ordinary income and convert short-term capital losses into long-term
capital losses. These rules could therefore affect the amount, timing and
character of distributions to investors.

The Fund's investment in zero coupon bonds and other debt obligations having
original issue discount may cause the Fund to recognize taxable income in excess
of any cash received from the investment.

As a result of entering into swap contracts, the Fund may make or receive
periodic net payments. The Fund may also make or receive a payment when a swap
is terminated prior to maturity through an assignment of the swap or other
closing transaction. Periodic net payments and other contractual payments made
under the terms of certain swap contracts will generally constitute ordinary
income or deductions, while termination of a swap will generally result in
capital gain or loss (which will be a long-term capital gain or loss if the Fund
has been a party to the swap for more than one year). With respect to certain
types of swaps, the Fund may be required to currently recognize income or loss
with respect to future payments on such swaps or may elect under certain
circumstances to mark such swaps to market annually for tax purposes as ordinary
income or loss. The tax treatment of many types of credit default swaps is
uncertain.

Other tax considerations. Under the backup withholding provisions of the Code,
redemption proceeds as well as distributions may be subject to federal income
tax withholding for certain shareholders, including those who fail to furnish
the Fund with their taxpayer identification numbers and certifications as to
their tax status.

Shareholders of the Fund may be subject to state and local taxes on
distributions received from the Fund and on redemptions of the Fund's shares.

NET ASSET VALUE

DIRECTORS AND OFFICERS

Independent Board Members

Interested Board Member

Officers(6)

(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.

(5) Executive title, not a board directorship.

(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

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.

(1) The DWS fund complex is composed of 138 funds as of December 31, 2007.

(3) Includes $50,000 in annual retainer fees received by Ms. Driscoll as
Chairperson of certain DWS funds.

Board Member Ownership in the Fund

The following table shows the dollar range of equity securities beneficially
owned by each Board Member in the Fund and DWS fund complex as of June 30, 2008.

Interested Board Member:
------------------------

Axel Schwarzer None Over $100,000

Ownership in Securities of the Advisor and Related Companies

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

THE SECURITIES ACT OF 1933

Pre-Effective Amendment No. 1

Post-Effective Amendment No.