UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-43
DWS Investment Trust
(Exact Name of Registrant as Specified in Charter)
Two International Place
Boston, MA 02110
(Address of principal executive offices) (Zip code)
Registrant’s Telephone Number, including Area Code: (212) 454-7190
Paul Schubert
345 Park Avenue
New York, NY 10154
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 06/30/06 |
ITEM 1. REPORT TO STOCKHOLDERS
JUNE 30, 2006
Semiannual Report
to Shareholders
DWS S&P 500 Index Fund
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Contents
5 Performance Summary
10 Information About Your Fund's Expenses
12 Portfolio Management Review
15 Portfolio Summary
DWS S&P 500 Index Fund
17 Financial Statements
21 Financial Highlights
26 Notes to Financial Statements
35 Other Information
36 Shareholder Meeting Results
DWS Equity 500 Index Portfolio
39 Investment Portfolio
55 Financial Statements
58 Financial Highlights
59 Notes to Financial Statements
65 Other Information
66 Shareholder Meeting Results
69 Account Management Resources
71 Privacy Statement
This report must be preceded or accompanied by a prospectus. To obtain a prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before you invest.
Investments in mutual funds involve risk. Some funds have more risk than others. While the fund seeks to replicate the performance of the S&P 500 index, important differences between the two exist. The index is not available for direct investment, and there are no fees or expenses associated with the index's performance. As with most other mutual funds, this DWS fund has fees and expenses.
The S&P 500 Index and the fund include stocks from many industries. Index and fund composition change periodically as companies are added or dropped, and prices of stocks in the index fluctuate. Please read this fund's prospectus for specific details regarding its investments and risk profile.
DWS Scudder is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Asset Management, Inc., Deutsche Investment Management Americas Inc. and DWS Trust Company.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Performance Summary June 30, 2006
Classes A, B and C
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit www.dws-scudder.com for the Fund's most recent month-end performance.
The maximum sales charge for Class A shares is 4.50%. For Class B shares, the maximum contingent deferred sales charge (CDSC) is 4% within the first year after purchase, declining to 0% after six years. Class C shares have no adjustment for front-end sales charges but redemptions within one year of purchase may be subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and would have been lower if they had.
To discourage short-term trading, the Fund imposes a 2% redemption fee on shareholders redeeming shares held less than 15 days, which has the effect of lowering total return.
Returns during all periods shown reflect a fee waiver and/or expense reimbursement. Without this waiver/reimbursement, returns would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns may differ by share class.
Returns shown for Class A, B and C shares prior to their inception on February 15, 2005 are derived from the historical performance of Class S shares of the DWS S&P 500 Index Fund with an inception date of August 29, 1997 and have been adjusted to reflect the higher gross total annual operating expenses of each specific class. Any difference in expenses will affect performance.
Average Annual Total Returns (Unadjusted for Sales Charge) as of 6/30/06 | |||||
DWS S&P 500 Index Fund | 6-Month* | 1-Year | 3-Year | 5-Year | Life of Fund* |
Class A | 2.32% | 7.90% | 10.50% | 1.86% | 4.95% |
Class B | 2.01% | 7.10% | 9.69% | 1.11% | 4.16% |
Class C | 1.95% | 7.11% | 9.67% | 1.10% | 4.16% |
S&P 500 Index+ | 2.71% | 8.63% | 11.22% | 2.49% | 5.61% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
* Total returns shown for periods less than one year are not annualized.
* The Fund commenced operations on August 29, 1997 with Class S shares. Index returns began on August 31, 1997.
Net Asset Value and Distribution Information | |||
| Class A | Class B | Class C |
Net Asset Value: 6/30/06 | $ 16.84 | $ 16.81 | $ 16.81 |
12/31/05 | $ 16.56 | $ 16.52 | $ 16.52 |
Distribution Information: Six Months: Income dividends as of 6/30/06 | $ .11 | $ .04 | $ .04 |
Class A Lipper Rankings — S&P 500 Index Objective Funds Category as of 6/30/06 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 125 | of | 172 | 73 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on the Fund's total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, results might have been less favorable. Rankings are for Class A shares; other share classes may vary.
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] DWS S&P 500 Index Fund — Class A [] S&P 500 Index+ |
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Yearly periods ended June 30 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 4.50%. This results in a net initial investment of $9,550.
Comparative Results (Adjusted for Maximum Sales Charge) as of 6/30/06 | |||||
DWS S&P 500 Index Fund | 1-Year | 3-Year | 5-Year | Life of Fund* | |
Class A | Growth of $10,000 | $10,304 | $12,884 | $10,473 | $14,636 |
Average annual total return | 3.04% | 8.81% | .93% | 4.40% | |
Class B | Growth of $10,000 | $10,410 | $12,997 | $10,468 | $14,341 |
Average annual total return | 4.10% | 9.13% | .92% | 4.16% | |
Class C | Growth of $10,000 | $10,711 | $13,192 | $10,563 | $14,335 |
Average annual total return | 7.11% | 9.67% | 1.10% | 4.16% | |
S&P 500 Index+ | Growth of $10,000 | $10,863 | $13,757 | $11,311 | $16,199 |
Average annual total return | 8.63% | 11.22% | 2.49% | 5.61% |
The growth of $10,000 is cumulative.
+ The Standard & Poor's 500 (S&P 500) Index is an unmanaged capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. "Standard & Poor's," "S&P 500," "Standard & Poor's 500" and "500" are trademarks of The McGraw-Hill Companies Inc., and have been licensed for use by the Fund's investment advisor. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
* The Fund commenced operations on August 29, 1997 with Class S shares. Index returns began on August 31, 1997.
Class AARP and Class S
Class AARP has been created especially for members of AARP. Class S shares are no longer available to new investors except under certain circumstances. (Please refer to the Fund's Statement of Additional Information.)
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit www.dws-scudder.com for the Fund's most recent month-end performance.
To discourage short-term trading, the Fund imposes a 2% redemption fee on shareholders redeeming shares held less than 15 days, which has the effect of lowering total return.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Returns shown for Class AARP for periods prior to its inception on September 11, 2000, are derived from historical performance of Class S shares of the DWS S&P 500 Index Fund with an inception date of August 29, 1997 and have assumed the same expense structure during such periods. Any difference in expenses will affect performance.
Average Annual Total Returns as of 6/30/06 | |||||
DWS S&P 500 Index Fund | 6-Month* | 1-Year | 3-Year | 5-Year | Life of Fund* |
Class S | 2.50% | 8.14% | 10.72% | 2.07% | 5.16% |
Class AARP | 2.50% | 8.14% | 10.72% | 2.06% | 5.16% |
S&P 500 Index+ | 2.71% | 8.63% | 11.22% | 2.49% | 5.61% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
* Total returns shown for periods less than one year are not annualized.
* The Fund commenced operations on August 29, 1997 with Class S shares. Index returns began on August 31, 1997.
Net Asset Value and Distribution Information | ||
| Class AARP | Class S |
Net Asset Value: 6/30/06 | $ 16.85 | $ 16.85 |
12/31/05 | $ 16.56 | $ 16.56 |
Distribution Information: Six Months: Income Dividends as of 6/30/06 | $ .12 | $ .12 |
Class S Lipper Rankings — S&P 500 Index Objective Funds Category as of 6/30/06 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 86 | of | 172 | 50 |
3-Year | 74 | of | 155 | 47 |
5-Year | 59 | of | 137 | 43 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return with distributions reinvested. Rankings are for Class S shares; other share classes may vary.
Growth of an Assumed $10,000 Investment |
[] DWS S&P 500 Index Fund — Class S [] S&P 500 Index+ |
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Yearly periods ended June 30 |
Comparative Results as of 6/30/06 | |||||
DWS S&P 500 Index Fund | 1-Year | 3-Year | 5-Year | Life of Fund* | |
Class S | Growth of $10,000 | $10,814 | $13,573 | $11,078 | $15,603 |
Average annual total return | 8.14% | 10.72% | 2.07% | 5.16% | |
Class AARP | Growth of $10,000 | $10,814 | $13,573 | $11,071 | $15,603 |
Average annual total return | 8.14% | 10.72% | 2.06% | 5.16% | |
S&P 500 Index+ | Growth of $10,000 | $10,863 | $13,757 | $11,311 | $16,199 |
Average annual total return | 8.63% | 11.22% | 2.49% | 5.61% |
The growth of $10,000 is cumulative.
+ The Standard & Poor's 500 (S&P 500) Index is an unmanaged capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. "Standard & Poor's," "S&P 500," "Standard & Poor's 500" and "500" are trademarks of The McGraw-Hill Companies Inc., and have been licensed for use by the Fund's investment advisor. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
* The Fund commenced operations on August 29, 1997 with Class S shares. Index returns began on on August 31, 1997.
Information About Your Fund's Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees and other Fund expenses. Examples of transaction costs include sales charges (loads), redemption fees and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, the Fund limited these expenses; had it not done so, expenses would have been higher. The example in the table is based on the investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2006 to June 30, 2006).
The tables illustrate your Fund's expenses in two ways:
Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.
Hypothetical 5% Fund Return. This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
Expenses and Value of a $1,000 Investment for the six months ended June 30, 2006 | |||||
Actual Fund Return* | Class A | Class B | Class C | Class AARP | Class S |
Beginning Account Value 1/1/06 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/06 | $ 1,023.20 | $ 1,020.10 | $ 1,019.50 | $ 1,025.00 | $ 1,025.00 |
Expenses Paid per $1,000** | $ 3.56 | $ 7.31 | $ 7.21 | $ 2.36 | $ 2.36 |
Hypothetical 5% Fund Return* | Class A | Class B | Class C | Class AARP | Class S |
Beginning Account Value 1/1/06 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/06 | $ 1,021.27 | $ 1,017.55 | $ 1,017.65 | $ 1,022.46 | $ 1.022.46 |
Expenses Paid per $1,000** | $ 3.56 | $ 7.30 | $ 7.20 | $ 2.36 | $ 2.36 |
* Expenses include amounts allocated proportionally from the master portfolio.
** Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 365.
Annualized Expense Ratios | Class A | Class B | Class C | Class AARP | Class S |
DWS S&P 500 Index Fund | .71% | 1.46% | 1.44% | .47% | .47% |
For more information, please refer to the Fund's prospectuses.
In the following interview, a team of portfolio managers from Northern Trust Investments, the Portfolio's subadvisor, discusses the economic and market environment and DWS S&P 500 Index Fund's performance for the six-month period ended June 30, 2006. The fund is a feeder fund that invests all of its assets in a master portfolio, the DWS Equity 500 Index Portfolio. The fund and the master portfolio have the same objective. The master portfolio is advised by Deutsche Asset Management, Inc. and subadvised by Northern Trust Investments, N.A.
Q: How would you describe the economic and market environment over the last six months?
A: At midyear 2006, the economy has begun to show signs of moderating. In recent months, employment has increased at a slower pace, housing activity has cooled and consumer spending has weakened somewhat, perhaps reflecting the impact of rising energy costs, higher real interest rates and slower gains in real income.
Business investment has been a key driver of economic growth, and recent reports on capital expenditures continue to be positive. Corporate profits were positive in early 2006 compared with the prior year, and strong corporate finances should support continued business investment. The cumulative effect of the Federal Reserve's series of rate increases should begin to slow economic growth, especially now that real long-term interest rates have begun to increase. However, most indicators point to continued growth, albeit at a slower rate than in early 2006.
The S&P 500 Index, had a return of 2.71% for the six-month period ended June 2006.1 Small-cap stocks (as measured by the Russell 2000 Index, which had a return of 8.21%, significantly outperformed large-cap stocks (as measured by the Russell 1000 Index, which had a return of 2.76%).2 Among both large-cap and small-cap stocks, as measured by the relevant Russell indices, value-oriented stocks performed better than growth stocks.3
1 The Standard & Poor's (S&P) 500 Index is an unmanaged, capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Index returns assume reinvestment of all dividends and, unlike fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
2 The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. The index is reconstituted annually on June 30 based on market values as of May 31. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of $218.4 million.
The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. The index is reconstituted annually on June 30 based on market values as of May 31. As of the latest reconstitution, the average market capitalization was approximately $13.9 billion; the median market capitalization was approximately $4.9 billion. The smallest company in the index had an approximate market capitalization of $2.0 billion.
3 The Russell 1000 and 2000 Growth indices measure the performance of companies in the underlying indices with higher price-to-book ratios and higher forecasted growth rates. The Russell 1000 and 2000 Value indices measure the performance of companies in the underlying indices with lower price-to-book ratios and lower forecasted growth rates. Index returns assume reinvestment of all dividends and, unlike fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Q: How did the fund perform during this period?
A: The fund's Class A shares returned 2.32% for the six months ended June 30, 2006. (Returns are unadjusted for sales charges. If sales charges had been included, returns would have been lower. Past performance is no guarantee of future results. Please see pages 5 to 9 for performance of other share classes and for more complete performance information.) Since the fund's investment strategy is to replicate as closely as possible, before the deduction of expenses, the performance of the S&P 500 Index, the fund's return is normally close to the return of the index.
Q: Which sectors and stocks within the S&P 500 Index had the best and worst performance?
A: For the six months ended June 30, 2006, eight of the 10 industry sectors within the S&P 500 had positive returns, and two sectors had negative returns. The strongest sector was telecommunications, with a return of 13.80%, followed by energy, which returned 13.71%. Industrials and materials were strong, with returns of 7.06% and 6.97%, respectively. The other sectors with positive returns were consumer staples, 4.52%; utilities, 4.47%; financials, 3.11%; and consumer discretionary, 2.48%. The two sectors with negative returns were information technology (-5.86%) and health care (-3.80%).
Q: What changes have been made in the S&P 500 Index in recent months?
A: Over the six-month period, there were 15 additions to the index and 15 deletions. Most deletions occur as a result of mergers; these names are then replaced with companies that have reached a size appropriate for inclusion in the index. Notable deletions were Reebok International, acquired by adidas-Salomon AG; Siebel Systems, Inc., acquired by Oracle Corp.; Scientific-Atlanta, Inc., acquired by Cisco Systems, Inc.; Burlington Resources, Inc., acquired by ConocoPhillips; Cinergy Corp., merged into Duke Energy Corp.; Jefferson-Pilot Corp., acquired by Lincoln Financial Group; Maytag Corp., acquired by Whirlpool Corp. and Knight-Ridder, Inc., acquired by the McClatchy Company. Additions to the S&P 500 Index include Estee Lauder Companies, Inc., Chesapeake Energy Corp., Google, Inc., Dean Foods Co., Legg Mason, Inc. and CONSOL Energy, Inc.
Q: Do you have other comments for shareholders?
A: We believe that holding an index fund such as this one is advantageous for many investors, because it offers broad exposure to the equity market at a relatively low cost.
The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The management team's views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results.
Asset Allocation | 6/30/06 | 12/31/05 |
|
|
|
Common Stocks | 99% | 100% |
Cash Equivalents | 1% | — |
| 100% | 100% |
Sector Diversification (As a % of Common Stocks) | 6/30/06 | 12/31/05 |
|
|
|
Financials | 21% | 22% |
Information Technology | 15% | 15% |
Health Care | 12% | 13% |
Industrials | 12% | 11% |
Consumer Discretionary | 10% | 11% |
Consumer Staples | 10% | 10% |
Energy | 10% | 9% |
Utilities | 4% | 3% |
Telecommunication Services | 3% | 3% |
Materials | 3% | 3% |
| 100% | 100% |
Asset allocation and sector diversification are subject to change.
Ten Largest Equity Holdings at June 30, 2006 (19.1% of Net Assets) | |
1. ExxonMobil Corp. Explorer and producer of oil and gas | 3.2% |
2. General Electric Co. Industrial conglomerate | 2.9% |
3. Citigroup, Inc. Provider of diversified financial services | 2.1% |
4. Bank of America Corp. Provider of commercial banking services | 1.9% |
5. Microsoft Corp. Developer of computer software | 1.8% |
6. Procter & Gamble Co. Manufacturer of diversified consumer products | 1.6% |
7. Johnson & Johnson Provider of health care products | 1.5% |
8. Pfizer, Inc. Manufacturer of prescription pharmaceuticals and non-prescription self-medications | 1.5% |
9. American International Group, Inc. Provider of insurance services | 1.3% |
10. Altria Group, Inc. Parent company operating in the tobacco and food industries | 1.3% |
Portfolio holdings are subject to change.
For more complete details about the Portfolio's investment portfolio, see page 39. A quarterly Fact Sheet is available upon request. Information concerning portfolio holdings of the Portfolio as of month end will be posted to www.dws-scudder.com on or after the last day of the following month. In addition, the Portfolio's top ten holdings and other information about the Fund is posted on www.dws-scudder.com as of the calendar quarter-end on or after the 15th day following quarter-end. Please see the Account Management Resources section for contact information.
Following the Fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. The form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.
Statement of Assets and Liabilities as of June 30, 2006 (Unaudited) | |
Assets | |
Investments in the DWS Equity 500 Index Portfolio, at value | $ 693,440,121 |
Receivable for Fund shares sold | 477,487 |
Other assets | 65,133 |
Total assets | 693,982,741 |
Liabilities | |
Payable for Fund shares redeemed | 2,101,973 |
Accrued expenses and other payables | 951,914 |
Total liabilities | 3,053,887 |
Net assets, at value | $ 690,928,854 |
Net Assets | |
Net assets consist of: Undistributed net investment income | 488,753 |
Net unrealized appreciation (depreciation) on investments and futures | 34,624,663 |
Accumulated net realized gain (loss) | (337,499,434) |
Paid-in capital | 993,314,872 |
Net assets, at value | $ 690,928,854 |
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of June 30, 2006 (Unaudited) (continued) | |
Net Asset Value | |
Class A Net Asset Value and redemption price(a) per share ($81,986,573 ÷ 4,868,491 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 16.84 |
Maximum offering price per share (100 ÷ 95.5 of $16.84) | $ 17.63 |
Class B Net Asset Value, offering and redemption price(a) per share ($2,845,039 ÷ 169,272 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 16.81 |
Class C Net Asset Value, offering and redemption price(a) per share ($4,094,698 ÷ 243,651 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 16.81 |
Class AARP Net Asset Value, offering and redemption price(a) per share ($319,068,262 ÷ 18,935,159 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 16.85 |
Class S Net Asset Value, offering and redemption price(a) per share ($282,934,282 ÷ 16,792,656 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 16.85 |
(a) Redemption price per share for shares held less than 15 days is equal to net asset value less a 2% redemption fee.
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended June 30, 2006 (Unaudited) | |
Investment Income | |
Income and expenses allocated from DWS Equity 500 Index Portfolio: Dividends | $ 6,782,569 |
Interest — Cash Management QP Trust | 72,864 |
Interest | 9,197 |
Expenses* | (177,157) |
Net investment allocated from DWS Equity 500 Index Portfolio | 6,687,473 |
Expenses: Administrative services fee | 357,809 |
Services to shareholders | 879,557 |
Distribution service fees | 138,064 |
Auditing | 14,299 |
Legal | 24,108 |
Reports to shareholders and shareholders meeting | 398,934 |
Registration fees | 17,176 |
Trustees' fees and expenses | 13,536 |
Other | 13,272 |
Total expenses before expense reductions | 1,856,755 |
Expense reductions | (39,600) |
Total expenses after expense reductions | 1,817,155 |
Net investment income (loss) | 4,870,318 |
Realized and Unrealized Gain (Loss) on Investment Transactions | |
Net realized gain (loss) allocated from DWS Equity 500 Index Portfolio: Investments | (2,795,875) |
Futures | (127,987) |
| (2,923,862) |
Net unrealized appreciation (depreciation) during the period on investments and futures | 16,257,258 |
Net gain (loss) on investment transactions | 13,333,396 |
Net increase (decrease) in net assets resulting from operations | $ 18,203,714 |
* For the six months ended June 30, 2006, the DWS Equity 500 Index Portfolio was reimbursed by the Advisor for fees in the amount of $58,475, which was allocated to the feeder funds on a pro-rated basis.
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | ||
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 |
Operations: Net investment income (loss) | $ 4,870,318 | $ 10,217,503 |
Net realized gain (loss) on investment transactions | (2,923,862) | (9,629,428) |
Net unrealized appreciation (depreciation) during the period on investment transactions | 16,257,258 | 35,187,576 |
Net increase (decrease) in net assets resulting from operations | 18,203,714 | 35,775,651 |
Distributions to shareholders from: Net investment income: Class A | (512,151) | (610,300) |
Class B | (7,708) | (11,803) |
Class C | (9,835) | (10,293) |
Class AARP | (2,390,488) | (4,960,314) |
Class S | (2,108,329) | (4,052,516) |
Fund share transactions: Proceeds from shares sold | 57,631,579 | 159,715,646 |
Reinvestment of distributions | 4,827,341 | 9,253,794 |
Cost of shares redeemed | (104,463,527) | (183,240,260) |
Redemption fees | 6,096 | 5,843 |
Net increase (decrease) in net assets from Fund share transactions | (41,998,511) | (14,264,977) |
Increase (decrease) in net assets | (28,823,308) | 11,865,448 |
Net assets at beginning of period | 719,752,162 | 707,886,714 |
Net assets at end of period (including undistributed net investment income of $488,753 and $646,946, respectively) | $ 690,928,854 | $ 719,752,162 |
The accompanying notes are an integral part of the financial statements.
Class A
| 2006a | 2005b |
Selected Per Share Data | ||
Net asset value, beginning of period | $ 16.56 | $ 15.96 |
Income (loss) from investment operations: Net investment income (loss)c | .10 | .18 |
Net realized and unrealized gain (loss) on investment transactions | .29 | .61 |
Total from investment operations | .39 | .79 |
Less distributions from: Net investment income | (.11) | (.19) |
Redemption fees | .00*** | .00*** |
Net asset value, end of period | $ 16.84 | $ 16.56 |
Total Return (%)d,e | 2.32** | 5.02** |
Ratios to Average Net Assets and Supplemental Data | ||
Net assets, end of period ($ millions) | 82 | 73 |
Ratio of expenses before expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | .82* | .77* |
Ratio of expenses after expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | .71* | .66* |
Ratio of net investment income (loss) (%) | 1.21* | 1.27* |
a For the six months ended June 30, 2006 (Unaudited). b For the period from February 18, 2005 (commencement of operations of Class A shares) to December 31, 2005. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charges. e Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized *** Amount is less than $.005. |
Class B
| 2006a | 2005b |
Selected Per Share Data | ||
Net asset value, beginning of period | $ 16.52 | $ 15.96 |
Income (loss) from investment operations: Net investment income (loss)c | .03 | .07 |
Net realized and unrealized gain (loss) on investment transactions | .30 | .62 |
Total from investment operations | .33 | .69 |
Less distributions from: Net investment income | (.04) | (.13) |
Redemption fees | .00*** | .00*** |
Net asset value, end of period | $ 16.81 | $ 16.52 |
Total Return (%)d,e | 2.01** | 4.35** |
Ratios to Average Net Assets and Supplemental Data | ||
Net assets, end of period ($ millions) | 3 | 3 |
Ratio of expenses before expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | 1.70* | 1.66* |
Ratio of expenses after expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | 1.46* | 1.41* |
Ratio of net investment income (loss) (%) | .46* | .51* |
a For the six months ended June 30, 2006 (Unaudited). b For the period from February 18, 2005 (commencement of operations of Class B shares) to December 31, 2005. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charges. e Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized *** Amount is less than $.005. |
Class C
| 2006a | 2005b |
Selected Per Share Data | ||
Net asset value, beginning of period | $ 16.52 | $ 15.96 |
Income (loss) from investment operations: Net investment income (loss)c | .03 | .07 |
Net realized and unrealized gain (loss) on investment transactions | .30 | .62 |
Total from investment operations | .33 | .69 |
Less distributions from: Net investment income | (.04) | (.13) |
Redemption fees | .00*** | .00*** |
Net asset value, end of period | $ 16.81 | $ 16.52 |
Total Return (%) | 1.95e** | 4.36d,e** |
Ratios to Average Net Assets and Supplemental Data | ||
Net assets, end of period ($ millions) | 4 | 4 |
Ratio of expenses before expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | 1.46* | 1.53* |
Ratio of expenses after expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | 1.44* | 1.40* |
Ratio of net investment income (loss) (%) | .48* | .52* |
a For the six months ended June 30, 2006 (Unaudited). b For the period from February 18, 2005 (commencement of operations of Class C shares) to December 31, 2005. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charges. e Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized *** Amount is less than $.005. |
Class AARP Years Ended December 31, | 2006a | 2005 | 2004 | 2003 | 2002 | 2001 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 16.56 | $ 16.07 | $ 14.79 | $ 11.71 | $ 15.28 | $ 17.60 |
Income (loss) from investment operations: Net investment income (loss)b | .12 | .23 | .24 | .18 | .16 | .15 |
Net realized and unrealized gain (loss) on investment transactions | .29 | .48 | 1.28 | 3.08 | (3.56) | (2.32) |
Total from investment operations | .41 | .71 | 1.52 | 3.26 | (3.40) | (2.17) |
Less distributions from: Net investment income | (.12) | (.22) | (.24) | (.18) | (.17) | (.15) |
Redemption fees | .00*** | .00*** | — | — | — | — |
Net asset value, end of period | $ 16.85 | $ 16.56 | $ 16.07 | $ 14.79 | $ 11.71 | $ 15.28 |
Total Return (%) | 2.50c** | 4.47c | 10.37c | 28.04 | (22.33) | (12.32) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 319 | 349 | 394 | 384 | 312 | 471 |
Ratio of expenses before expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | .49* | .43 | .44 | .40 | .40 | .40 |
Ratio of expenses after expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | .47* | .43 | .44 | .40 | .40 | .40 |
Ratio of net investment income (loss) (%) | 1.45* | 1.44 | 1.58 | 1.39 | 1.21 | .95 |
a For the six months ended June 30, 2006 (Unaudited). b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized *** Amount is less than $.005. |
Class S Years Ended December 31, | 2006a | 2005 | 2004 | 2003 | 2002 | 2001 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 16.56 | $ 16.07 | $ 14.79 | $ 11.71 | $ 15.28 | $ 17.60 |
Income (loss) from investment operations: Net investment income (loss)b | .12 | .23 | .24 | .18 | .16 | .15 |
Net realized and unrealized gain (loss) on investment transactions | .29 | .48 | 1.28 | 3.08 | (3.56) | (2.32) |
Total from investment operations | .41 | .71 | 1.52 | 3.26 | (3.40) | (2.17) |
Less distributions from: Net investment income | (.12) | (.22) | (.24) | (.18) | (.17) | (.15) |
Redemption fees | .00*** | .00*** | — | — | — | — |
Net asset value, end of period | $ 16.85 | $ 16.56 | $ 16.07 | $ 14.79 | $ 11.71 | $ 15.28 |
Total Return (%) | 2.50c** | 4.47c | 10.37c | 28.04 | (22.33) | (12.32) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 283 | 291 | 314 | 318 | 237 | 390 |
Ratio of expenses before expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | .49* | .43 | .45 | .40 | .40 | .40 |
Ratio of expenses after expense reductions, including expenses allocated from DWS Equity 500 Index Portfolio (%) | .47* | .43 | .45 | .40 | .40 | .40 |
Ratio of net investment income (loss) (%) | 1.45* | 1.44 | 1.57 | 1.39 | 1.22 | .95 |
a For the six months ended June 30, 2006 (Unaudited). b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized *** Amount is less than $.005. |
Notes to Financial Statements (Unaudited)
A. Significant Accounting Policies
DWS S&P 500 Index Fund (the "Fund") is a diversified series of the DWS Investment Trust (the "Trust") which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Massachusetts business trust.
The Fund seeks to achieve its investment objective by investing substantially all of its investable assets in DWS Equity 500 Index Portfolio (the "Portfolio"), a diversified open-end management investment company advised by Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor"). Details concerning the Portfolio's investment objective and policies and the risk factors associated with the Portfolio's investments are described in the Fund's Prospectuses and Statements of Additional Information. On June 30, 2006, the Fund owned approximately 21% of the Portfolio.
The Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are offered to investors subject to an initial sales charge. Class B shares are offered without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions. Class B shares automatically convert to Class A shares six years after issuance. Class C shares were offered to investors without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Class C shares do not convert into another class. Shares of Class AARP are designed for members of AARP (please see Note B under the caption Other Related Parties). Class AARP and S shares are not subject to initial or contingent deferred sales charges. Class S shares are no longer available to new investors except under certain circumstances. (Please refer to the Fund's Statement of Additional Information).
Investment income, realized and unrealized gains and losses and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution services fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.
The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements. The financial statements of the Portfolio, including the Investment Portfolio, are contained elsewhere in this report and should be read in conjunction with the Fund's financial statements.
Security Valuation. The Fund records its investment in the Portfolio at value, which reflects its proportionate interest in the net assets of the Portfolio. Valuation of the securities held by the Portfolio is discussed in the notes to the Portfolio's financial statements included elsewhere in the report.
Federal Income Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Accordingly, the Fund paid no federal income taxes and no federal income tax provision was required.
In July 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109" (the "Interpretation"). The Interpretation establishes for the Fund a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether the Fund is taxable in certain jurisdictions), and requires certain expanded tax disclosures. The Interpretation is effective for fiscal years beginning after December 15, 2006. Management will begin to evaluate the application of the Interpretation to the Fund and is not in a position at this time to estimate the significance of its impact, if any, on the Fund's financial statements.
At December 31, 2005, the Fund had a net tax basis capital loss carryforward of approximately $332,945,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until December 31, 2006 ($3,502,000), December 31, 2007 ($51,000), December 31, 2009 ($159,908,000), December 31, 2010 ($113,678,000), December 31, 2011 ($27,128,000), December 31, 2012 ($21,570,000) and December 31, 2013 ($7,108,000), the respective expiration dates, whichever occurs first, which may be subject to certain limitations under Sections 382-383 of the Internal Revenue Code.
In addition, from November 1, 2005 through December 31, 2005, the Fund incurred approximately $1,713,000 of net realized capital losses. As permitted by tax regulations, the Fund intends to elect to defer these losses and treat them as arising in the year ending December 31, 2006.
Distribution of Income and Gains. Net investment income of the Fund is declared and distributed to shareholders quarterly. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually.
The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Redemption Fees. The Fund imposes a redemption fee of 2% of the total redemption amount on the Fund shares redeemed or exchanged within 15 days of buying them, either by purchase or exchange. This fee is assessed and retained by the Fund for the benefit of the remaining shareholders. The redemption fee is accounted for as an addition to paid-in capital.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. The Fund receives a daily allocation of the Portfolio's income, expenses and net realized and unrealized gains and losses in proportion to its investment in the Portfolio. Expenses directly attributed to a fund are charged to that fund, while expenses which are attributable to the Trust are allocated among the funds in the Trust on the basis of relative net assets.
B. Related Parties
DWS Scudder is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG. DeAM, Inc. is the Advisor for the Portfolio and is a wholly owned subsidiary of Deutsche Bank AG.
For the period January 1, 2006 through April 30, 2007 the Advisor has contractually agreed to waive all or a portion of its Administrative Services Fee and reimburse or pay certain operating expenses of the Fund to the extent necessary to maintain the operating expenses, including expenses allocated from the Portfolio, of Class A, B, C, AARP and S shares at 0.66%, 1.41%, 1.405%, 0.50% and 0.50%, respectively (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and organizational and offering expenses).
Administrative Services Agreement. The Fund has an Administrative Services Agreement with Deutsche Investment Management Americas Inc. ("DeIM"), an indirect, wholly owned subsidiary of Deutsche Bank AG, under which DeIM provides shareholder and administrative services to the Fund. The Advisor receives a fee (the "Administrative Services Fee") of 0.10% of the Fund's average daily net assets, accrued daily and paid monthly. Accordingly, for the six months ended June 30, 2006, the amount charged to the Fund aggregated $357,809, of which $56,909 is unpaid.
Service Provider Fees. DWS Scudder Investments Service Company ("DWS-SISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for Class A, B and C shares of the Fund. DWS Scudder Service Corporation ("DWS-SSC"), a subsidiary of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for Class AARP and S shares of the Fund. Pursuant to a sub-transfer agency agreement among DWS-SISC, DWS-SSC and DST Systems, Inc. ("DST"), DWS-SISC and DWS-SSC have delegated certain transfer agent and dividend paying agent functions to DST. DWS-SISC and DWS-SSC compensate DST out of the shareholder servicing fee they receive from the Fund. For the six months ended June 30, 2006, the amounts charged to the Fund by DWS-SISC and DWS-SSC were as follows:
Services to Shareholders | Total Aggregated | Waived | Unpaid at June 30, 2006 |
Class A | $ 119,540 | $ 38,248 | $ 33,691 |
Class B | 6,804 | 3,620 | 1,316 |
Class C | 3,473 | — | 2,502 |
Class AARP | 346,455 | — | 188,768 |
Class S | 301,315 | — | 158,706 |
| $ 777,587 | $ 41,868 | $ 384,983 |
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule 12b-1 under the 1940 Act, DWS Scudder Distributors, Inc. ("DWS-SDI"), a subsidiary of the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net assets of Class B and C shares. Pursuant to the agreement, DWS-SDI enters into related selling group agreements with various firms at various rates for sales of Class B and C shares. For the six months ended June 30, 2006, the Distribution Fee was as follows:
Distribution Fee | Total Aggregated | Unpaid at June 30, 2006 |
Class B | $ 12,073 | $ 1,719 |
Class C | 14,435 | 2,398 |
| $ 26,508 | $ 4,117 |
In addition, DWS-SDI provides information and administrative services ("Service Fee") to Class A, B and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. DWS-SDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the six months ended June 30, 2006, the Service Fee was as follows:
Service Fee | Total Aggregated | Unpaid at June 30, 2006 | Annualized |
Class A | $ 102,720 | $ 33,527 | .25% |
Class B | 4,024 | — | .25% |
Class C | 4,812 | 265 | .25% |
| $ 111,556 | $ 33,792 |
|
Underwriting Agreement and Contingent Deferred Sales Charge. DWS-SDI is the principal underwriter for the Fund. Underwriting commissions paid to DWS-SDI in connection with the distribution of Class A shares for the six months ended June 30, 2006 aggregated $3,202.
In addition, DWS-SDI receives any contingent deferred sales charge ("CDSC") from Class B share redemptions occurring within six years of purchase and Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is based on declining rates ranging from 4% to 1% for Class B and 1% for Class C, of the value of the shares redeemed. For the six months ended June 30, 2006, the CDSC for Class B and C shares aggregated $8,515 and $121, respectively. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares.
Typesetting and Filing Service Fees. Under an agreement with Deutsche Investment Management Americas Inc. ("DeIM"), an indirect, wholly owned subsidiary of Deutsche Bank AG, DeIM is compensated for providing typesetting and certain regulatory filing services to the Fund. For the six months ended June 30, 2006, the amount charged to the Fund by DeIM included in reports to shareholders aggregated $19,400, of which $9,600 is unpaid.
Trustees' Fees and Expenses. As compensation for his or her services, each Independent Trustee receives an aggregated annual fee, plus a fee for each meeting attended (plus reimbursement for reasonable out-of-pocket expenses incurred in connection with his or her attendance at board and committee meetings) from each Fund in the Fund Complex for which he or she serves. In addition, the Chairman of the Board and the Chairman of each committee of the Board receive additional compensation for their services. Payment of such fees and expenses is allocated among all such funds described above in direct proportion to their relative net assets.
Other Related Parties. Through December 31, 2005, AARP through its affiliate, AARP Services, Inc., monitored and approved the AARP Investment Program from DWS Scudder, but did not act as an investment advisor or recommend specific mutual funds. The contractual relationship between DWS Scudder and AARP ended on December 31, 2005. As a result, the funds are no longer part of the AARP Investment Program and the AARP name and logo will be phased out in 2006. The funds will continue to be managed by Deutsche Asset Management and its affiliates. (Please see Note E.)
C. Share Transactions
The following table summarizes share and dollar activity in the Fund:
| Six Months Ended June 30, 2006 | Year Ended December 31, 2005 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 1,593,146 | $ 27,032,609 | 5,805,887* | $ 89,429,772* |
Class B | 21,041 | 357,928 | 274,023* | 4,217,214* |
Class C | 58,429 | 998,453 | 283,713* | 4,377,316* |
Class AARP | 496,019 | 8,453,826 | 1,119,851 | 17,814,916 |
Class S | 1,223,395 | 20,788,763 | 2,750,771 | 43,876,428 |
|
| $ 57,631,579 |
| $ 159,715,646 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 30,298 | $ 511,063 | 37,548* | $ 610,224* |
Class B | 454 | 7,636 | 727* | 11,739* |
Class C | 585 | 9,813 | 641* | 10,293* |
Class AARP | 132,815 | 2,243,882 | 290,716 | 4,671,121 |
Class S | 121,702 | 2,054,947 | 245,745 | 3,950,417 |
|
| $ 4,827,341 |
| $ 9,253,794 |
Shares redeemed | ||||
Class A | (1,146,346) | $ (19,512,314) | (1,452,042)* | $ (23,355,336)* |
Class B | (61,812) | (1,053,978) | (65,161)* | (1,054,586)* |
Class C | (34,222) | (578,993) | (65,495)* | (1,044,973)* |
Class AARP | (2,781,691) | (47,479,977) | (4,834,076) | (77,668,789) |
Class S | (2,100,808) | (35,838,265) | (4,991,038) | (80,116,576) |
|
| $ (104,463,527) |
| $ (183,240,260) |
Redemption fees | $ 6,096 | $ 5,843 | ||
Net increase (decrease) | ||||
Class A | 477,098 | $ 8,032,066 | 4,391,393* | $ 66,684,660* |
Class B | (40,317) | (688,364) | 209,589* | 3,174,367* |
Class C | 24,792 | 429,307 | 218,859* | 3,342,636* |
Class AARP | (2,152,857) | (36,779,439) | (3,423,509) | (55,178,723) |
Class S | (755,711) | (12,992,081) | (1,994,522) | (32,287,917) |
|
| $ (41,998,511) |
| $ (14,264,977) |
* For the period from February 18, 2005 (commencement of operations for Class A, B and C shares) to December 31, 2005.
D. Regulatory Matters and Litigation
Market Timing Related Regulatory and Litigation Matters. Since at least July 2003, federal, state and industry regulators have been conducting ongoing inquiries and investigations ("inquiries") into the mutual fund industry, and have requested information from numerous mutual fund companies, including DWS Scudder. The DWS funds' advisors have been cooperating in connection with these inquiries and are in discussions with the regulators concerning proposed settlements. Publicity about mutual fund practices arising from these industry-wide inquiries serves as the general basis of a number of private lawsuits against the DWS funds. These lawsuits, which previously have been reported in the press, involve purported class action and derivative lawsuits, making various allegations and naming 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 allegations similar to these lawsuits regarding market timing, revenue sharing, fund valuation or other subjects arising from or related to the pending inquiries. It is not possible to determine with certainty what the outcome of these inquiries will be or what the effect, if any, would be on the funds or their advisors.
With respect to the lawsuits, 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.
With respect to the regulatory matters, Deutsche Asset Management ("DeAM") has advised the funds as follows:
DeAM expects to reach final agreements with regulators in 2006 regarding allegations of improper trading in the DWS funds. DeAM expects that it will reach settlement agreements with the Securities and Exchange Commission, the New York Attorney General and the Illinois Secretary of State providing for payment of disgorgement, penalties, and investor education contributions totaling approximately $134 million. Approximately $127 million of this amount would be distributed to shareholders of the affected DWS funds in accordance with a distribution plan to be developed by an independent distribution consultant. DeAM does not believe that any of the DWS funds will be named as respondents or defendants in any proceedings. 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 they have already been reserved.
Based on the settlement discussions thus far, DeAM believes that it will be able to reach a settlement with the regulators on a basis that is generally consistent with settlements reached by other advisors, taking into account the particular facts and circumstances of market timing at DeAM and at the legacy Scudder and Kemper organizations prior to their acquisition by DeAM in April 2002. Among the terms of the expected settled orders, DeAM would be subject to certain undertakings regarding the conduct of its business in the future, including maintaining existing management fee reductions for certain funds for a period of five years. DeAM expects that these settlements would resolve regulatory allegations that it violated certain provisions of federal and state securities laws (i) by entering into trading arrangements that permitted certain investors to engage in market timing in certain DWS funds and (ii) by failing more generally to take adequate measures to prevent market timing in the DWS funds, primarily during the 1999-2001 period. With respect to the trading arrangements, DeAM expects that the settlement documents will include allegations related to one legacy DeAM arrangement, as well as three legacy Scudder and six legacy Kemper arrangements. All of these trading arrangements originated in businesses that existed prior to the current DeAM organization, which came together in April 2002 as a result of the 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 the trading arrangements.
There is no certainty that the final settlement documents will contain the foregoing terms and conditions. The independent Trustees/Directors of the DWS funds have carefully monitored these regulatory investigations with the assistance of independent legal counsel and independent economic consultants.
Other Regulatory Matters. DeAM is also engaged in settlement discussions with the Enforcement Staffs of the SEC and the NASD regarding DeAM's practices during 2001-2003 with respect to directing brokerage commissions for portfolio transactions by certain DWS funds to broker-dealers that sold shares in the DWS funds and provided enhanced marketing and distribution for shares in the DWS funds. In addition, DWS Scudder Distributors, Inc. is in settlement discussions with the Enforcement Staff of the NASD regarding DWS Scudder Distributors' payment of non-cash compensation to associated persons of NASD member firms, as well as DWS Scudder Distributors' procedures regarding non-cash compensation regarding entertainment provided to such associated persons.
E. Subsequent Event
On June 28, 2006, the Board of the Fund approved the conversion of the Class AARP shares of the Fund into the Class S shares of the Fund. This conversion was completed on July 14, 2006, and Class AARP shares are no longer offered.
Additional information announced by Deutsche Asset Management regarding the terms of the expected settlements referred to in the Market Timing Related Regulatory and Litigation Matters and Other Regulatory Matters in the Notes to Financial Statements will be made available at www.dws-scudder.com/regulatory_settlements, which will also disclose the terms of any final settlement agreements once they are announced.
A Special Meeting of Shareholders (the "Meeting") of DWS S&P 500 Index Fund (the "Fund") was held on May 5, 2006, at the offices of Deutsche Asset Management, Inc., 345 Park Avenue, New York, New York 10154. At the Meeting, the following matters were voted upon by the shareholders (the resulting votes are presented below).
I. Election of Trustees. ("Number of Votes" represents all funds that are series of DWS Investment Trust.)
| Number of Votes: | |
| For | Withheld |
Henry P. Becton, Jr. | 197,991,244.152 | 8,384,800.646 |
Dawn-Marie Driscoll | 198,004,169.805 | 8,371,874.993 |
Keith R. Fox | 197,921,453.939 | 8,454,590.859 |
Kenneth C. Froewiss | 197,879,048.962 | 8,496,995.836 |
Martin J. Gruber | 197,750,362.197 | 8,625,682.601 |
Richard J. Herring | 197,887,720.225 | 8,488,324.573 |
Graham E. Jones | 197,620,357.552 | 8,755,687.246 |
Rebecca W. Rimel | 197,953,978.782 | 8,422,066.016 |
Philip Saunders, Jr. | 197,686,623.053 | 8,689,421.745 |
William N. Searcy, Jr. | 197,856,087.625 | 8,519,957.173 |
Jean Gleason Stromberg | 197,864,804.673 | 8,511,240.125 |
Carl W. Vogt | 197,724,433.872 | 8,651,610.926 |
Axel Schwarzer | 197,827,524.607 | 8,548,520.191 |
IV-A. Approval of an Amended and Restated Declaration of Trust. ("Number of Votes" represents all funds that are series of DWS Investment Trust.)
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
182,220,628.110 | 7,305,857.658 | 8,890,637.030 | 7,958,922.000 |
The Meeting was reconvened on June 1, 2006, at which time the following matters were voted upon by the shareholders (the resulting votes are presented below):
II-A. Approval of an Amended and Restated Investment Management Agreement for your Fund.
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,545,554.004 | 1,066,999.330 | 1,707,571.552 | 482,142.000 |
II-D. Approval of a Subadvisor Approval Policy for your Fund.
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,273,543.168 | 1,275,262.429 | 1,771,319.289 | 482,142.000 |
III. Approval of revised Fundamental Investment Restrictions on:
III-A. Borrowing
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,178,972.332 | 1,271,353.312 | 1,869,799.242 | 482,142.000 |
III-B. Senior Securities
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,234,752.275 | 1,208,804.111 | 1,876,568.500 | 482,142.000 |
III-C. Concentration
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,224,651.975 | 1,216,063.080 | 1,879,409.831 | 482,142.000 |
III-D. Underwriting
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,242,228.130 | 1,200,382.494 | 1,877,514.262 | 482,142.000 |
III-E. Real Estate
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,235,350.021 | 1,209,647.460 | 1,875,127.405 | 482,142.000 |
III-F. Commodities
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,177,811.304 | 1,263,574.514 | 1,878,739.068 | 482,142.000 |
III-G. Oil, Gas and Mineral Programs
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,208,092.163 | 1,232,126.066 | 1,879,906.657 | 482,142.000 |
III-H. Lending
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,184,541.418 | 1,261,160.907 | 1,874,422.561 | 482,142.000 |
III-I. Diversification
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
23,248,465.952 | 1,194,353.685 | 1,877,305.249 | 482,142.000 |
* Broker non-votes are proxies received by the fund from brokers or nominees when the broker or nominee neither has received instructions from the beneficial owner or other persons entitled to vote nor has discretionary power to vote on a particular matter.
(The following financial statements of the DWS Equity 500 Index Portfolio should be read in conjunction with the Fund's financial statements.)
Investment Portfolio as of June 30, 2006 (Unaudited)
| Shares | Value ($) |
|
| |
Common Stocks 99.1% | ||
Consumer Discretionary 10.2% | ||
Auto Components 0.2% | ||
Cooper Tire & Rubber Co. | 18,502 | 206,111 |
Goodyear Tire & Rubber Co.* | 50,296 | 558,286 |
Johnson Controls, Inc. | 54,664 | 4,494,474 |
5,258,871 | ||
Automobiles 0.4% | ||
Ford Motor Co. | 524,985 | 3,638,146 |
General Motors Corp. | 160,471 | 4,780,431 |
Harley-Davidson, Inc. | 76,751 | 4,212,863 |
12,631,440 | ||
Distributors 0.1% | ||
Genuine Parts Co. | 49,178 | 2,048,756 |
Diversified Consumer Services 0.1% | ||
Apollo Group, Inc. "A"* | 39,983 | 2,065,922 |
H&R Block, Inc. | 92,282 | 2,201,848 |
4,267,770 | ||
Hotels Restaurants & Leisure 1.5% | ||
Carnival Corp. | 122,297 | 5,104,677 |
Darden Restaurants, Inc. | 37,580 | 1,480,652 |
Harrah's Entertainment, Inc. | 51,818 | 3,688,405 |
Hilton Hotels Corp. | 92,839 | 2,625,487 |
International Game Technology | 95,664 | 3,629,492 |
Marriott International, Inc. "A" | 91,264 | 3,478,984 |
McDonald's Corp. | 353,856 | 11,889,562 |
Starbucks Corp.* | 215,008 | 8,118,702 |
Starwood Hotels & Resorts Worldwide, Inc. | 60,812 | 3,669,396 |
Wendy's International, Inc. | 32,180 | 1,875,772 |
YUM! Brands, Inc. | 77,691 | 3,905,526 |
49,466,655 | ||
Household Durables 0.6% | ||
Black & Decker Corp. | 22,052 | 1,862,512 |
Centex Corp. | 34,604 | 1,740,581 |
D.R. Horton, Inc. | 76,600 | 1,824,612 |
Fortune Brands, Inc. | 41,254 | 2,929,447 |
Harman International Industries, Inc. | 18,500 | 1,579,345 |
KB Home | 21,872 | 1,002,831 |
Leggett & Platt, Inc. | 51,366 | 1,283,123 |
Lennar Corp. "A" | 38,600 | 1,712,682 |
Newell Rubbermaid, Inc. | 77,250 | 1,995,367 |
Pulte Homes, Inc. | 60,256 | 1,734,770 |
Snap-on, Inc. | 16,632 | 672,265 |
The Stanley Works | 20,853 | 984,679 |
Whirlpool Corp. | 22,077 | 1,824,664 |
21,146,878 | ||
Internet & Catalog Retail 0.1% | ||
Amazon.com, Inc.* | 86,912 | 3,361,756 |
Leisure Equipment & Products 0.2% | ||
Brunswick Corp. | 26,730 | 888,773 |
Eastman Kodak Co. | 81,731 | 1,943,563 |
Hasbro, Inc. | 50,902 | 921,835 |
Mattel, Inc. | 110,314 | 1,821,284 |
5,575,455 | ||
Media 3.4% | ||
CBS Corp. "B" | 217,554 | 5,884,836 |
Clear Channel Communications, Inc. | 145,563 | 4,505,175 |
Comcast Corp. "A"* | 602,227 | 19,716,912 |
Dow Jones & Co., Inc. | 16,822 | 588,938 |
E.W. Scripps Co. "A" | 24,600 | 1,061,244 |
Gannett Co., Inc. | 67,069 | 3,751,169 |
Interpublic Group of Companies, Inc.* | 121,095 | 1,011,143 |
McClatchy Co. "A" | 0 | 19 |
McGraw-Hill Companies, Inc. | 103,374 | 5,192,476 |
Meredith Corp. | 12,038 | 596,363 |
New York Times Co. "A" | 41,573 | 1,020,201 |
News Corp. "A" | 676,000 | 12,965,680 |
Omnicom Group, Inc. | 50,368 | 4,487,285 |
Time Warner, Inc. | 1,207,912 | 20,896,878 |
Tribune Co. | 73,797 | 2,393,237 |
Univision Communications, Inc. "A"* | 62,997 | 2,110,400 |
Viacom, Inc. "B"* | 217,654 | 7,800,719 |
Walt Disney Co. | 620,364 | 18,610,929 |
112,593,604 | ||
Multiline Retail 1.2% | ||
Big Lots, Inc.* | 32,296 | 551,616 |
Dillard's, Inc. "A" | 17,568 | 559,541 |
Dollar General Corp. | 90,736 | 1,268,489 |
Family Dollar Stores, Inc. | 44,472 | 1,086,451 |
Federated Department Stores, Inc. | 153,750 | 5,627,250 |
J.C. Penney Co., Inc. | 65,875 | 4,447,221 |
Kohl's Corp.* | 97,138 | 5,742,799 |
Nordstrom, Inc. | 61,532 | 2,245,918 |
Sears Holdings Corp.* | 28,138 | 4,356,888 |
Target Corp. | 247,591 | 12,099,772 |
37,985,945 | ||
Specialty Retail 2.1% | ||
AutoNation, Inc.* | 41,559 | 891,025 |
AutoZone, Inc.* | 15,908 | 1,403,086 |
Bed Bath & Beyond, Inc.* | 78,966 | 2,619,302 |
Best Buy Co., Inc. | 114,572 | 6,283,129 |
Circuit City Stores, Inc. | 43,233 | 1,176,802 |
Home Depot, Inc. | 582,999 | 20,865,534 |
Limited Brands, Inc. | 98,011 | 2,508,102 |
Lowe's Companies, Inc. | 220,187 | 13,358,745 |
Office Depot, Inc.* | 83,259 | 3,163,842 |
OfficeMax, Inc. | 20,278 | 826,329 |
RadioShack Corp. | 38,595 | 540,330 |
Staples, Inc. | 205,273 | 4,992,239 |
The Gap, Inc. | 161,658 | 2,812,849 |
The Sherwin-Williams Co. | 31,505 | 1,495,857 |
Tiffany & Co. | 40,716 | 1,344,442 |
TJX Companies, Inc. | 129,699 | 2,964,919 |
67,246,532 | ||
Textiles, Apparel & Luxury Goods 0.3% | ||
Coach, Inc.* | 108,900 | 3,256,110 |
Jones Apparel Group, Inc. | 32,460 | 1,031,904 |
Liz Claiborne, Inc. | 29,606 | 1,097,198 |
NIKE, Inc. "B" | 53,308 | 4,317,948 |
VF Corp. | 25,040 | 1,700,717 |
11,403,877 | ||
Consumer Staples 9.5% | ||
Beverages 2.1% | ||
Anheuser-Busch Companies, Inc. | 218,680 | 9,969,621 |
Brown-Forman Corp. "B" | 23,878 | 1,706,083 |
Coca-Cola Co. | 580,135 | 24,957,408 |
Coca-Cola Enterprises, Inc. | 87,024 | 1,772,679 |
Constellation Brands, Inc. "A"* | 56,500 | 1,412,500 |
Molson Coors Brewing Co. "B" | 16,302 | 1,106,580 |
Pepsi Bottling Group, Inc. | 38,062 | 1,223,693 |
PepsiCo, Inc. | 466,550 | 28,011,662 |
70,160,226 | ||
Food & Staples Retailing 2.4% | ||
Costco Wholesale Corp. | 133,233 | 7,611,601 |
CVS Corp. | 230,218 | 7,067,693 |
Kroger Co. | 204,263 | 4,465,189 |
Safeway, Inc. | 127,907 | 3,325,582 |
SUPERVALU, Inc. | 57,592 | 1,768,068 |
Sysco Corp. | 174,390 | 5,329,358 |
Wal-Mart Stores, Inc. | 703,554 | 33,890,196 |
Walgreen Co. | 284,978 | 12,778,414 |
Whole Foods Market, Inc. | 39,100 | 2,527,424 |
78,763,525 | ||
Food Products 1.2% | ||
Archer-Daniels-Midland Co. | 184,153 | 7,601,836 |
Campbell Soup Co. | 52,309 | 1,941,187 |
ConAgra Foods, Inc. | 146,252 | 3,233,632 |
Dean Foods Co.* | 39,000 | 1,450,410 |
General Mills, Inc. | 100,350 | 5,184,081 |
H.J. Heinz Co. | 95,054 | 3,918,126 |
Kellogg Co. | 71,534 | 3,464,391 |
McCormick & Co., Inc. | 37,300 | 1,251,415 |
Sara Lee Corp. | 215,739 | 3,456,139 |
The Hershey Co. | 50,960 | 2,806,367 |
Tyson Foods, Inc. "A" | 72,400 | 1,075,864 |
William Wrigley Jr. Co. | 63,102 | 2,862,307 |
38,245,755 | ||
Household Products 2.1% | ||
Clorox Co. | 42,732 | 2,605,370 |
Colgate-Palmolive Co. | 145,168 | 8,695,563 |
Kimberly-Clark Corp. | 129,807 | 8,009,092 |
Procter & Gamble Co. | 926,296 | 51,502,058 |
70,812,083 | ||
Personal Products 0.2% | ||
Alberto-Culver Co. | 21,687 | 1,056,591 |
Avon Products, Inc. | 126,870 | 3,932,970 |
Estee Lauder Companies, Inc. "A" | 33,900 | 1,310,913 |
6,300,474 | ||
Tobacco 1.5% | ||
Altria Group, Inc. | 587,752 | 43,158,629 |
Reynolds American, Inc. | 24,045 | 2,772,388 |
UST, Inc. | 46,051 | 2,081,045 |
48,012,062 | ||
Energy 10.1% | ||
Energy Equipment & Services 2.0% | ||
Baker Hughes, Inc. | 96,373 | 7,888,130 |
BJ Services Co. | 92,028 | 3,428,963 |
Halliburton Co. | 145,360 | 10,787,166 |
Nabors Industries Ltd.* | 89,738 | 3,032,247 |
National-Oilwell Varco, Inc.* | 49,600 | 3,140,672 |
Noble Corp. | 39,024 | 2,904,166 |
Rowan Companies, Inc. | 30,939 | 1,101,119 |
Schlumberger Ltd. | 332,744 | 21,664,962 |
Transocean, Inc.* | 91,800 | 7,373,376 |
Weatherford International Ltd.* | 95,400 | 4,733,748 |
66,054,549 | ||
Oil, Gas & Consumable Fuels 8.1% | ||
Anadarko Petroleum Corp. | 129,868 | 6,193,405 |
Apache Corp. | 92,974 | 6,345,475 |
Chesapeake Energy Corp. | 104,800 | 3,170,200 |
Chevron Corp. | 626,956 | 38,908,889 |
ConocoPhillips | 464,609 | 30,445,828 |
CONSOL Energy, Inc. | 27,575 | 1,288,304 |
Devon Energy Corp. | 124,404 | 7,515,246 |
El Paso Corp. | 187,098 | 2,806,470 |
EOG Resources, Inc. | 68,300 | 4,735,922 |
ExxonMobil Corp. | 1,706,668 | 104,704,082 |
Hess Corp. | 68,265 | 3,607,805 |
Kerr-McGee Corp. | 65,934 | 4,572,523 |
Kinder Morgan, Inc. | 28,259 | 2,822,792 |
Marathon Oil Corp. | 103,294 | 8,604,390 |
Murphy Oil Corp. | 46,500 | 2,597,490 |
Occidental Petroleum Corp. | 121,331 | 12,442,494 |
Sunoco, Inc. | 37,872 | 2,624,151 |
Valero Energy Corp. | 175,100 | 11,647,652 |
Williams Companies, Inc. | 164,623 | 3,845,593 |
XTO Energy, Inc. | 103,100 | 4,564,237 |
263,442,948 | ||
Financials 21.2% | ||
Capital Markets 3.4% | ||
Ameriprise Financial, Inc. | 71,108 | 3,176,394 |
Bank of New York Co., Inc. | 217,231 | 6,994,838 |
Bear Stearns Companies, Inc. | 32,308 | 4,525,705 |
Charles Schwab Corp. | 290,597 | 4,643,740 |
E*TRADE Financial Corp.* | 112,100 | 2,558,122 |
Federated Investors, Inc. "B" | 24,500 | 771,750 |
Franklin Resources, Inc. | 42,971 | 3,730,313 |
Janus Capital Group, Inc. | 61,879 | 1,107,634 |
Legg Mason, Inc. | 37,200 | 3,702,144 |
Lehman Brothers Holdings, Inc. | 152,244 | 9,918,697 |
Mellon Financial Corp. | 116,701 | 4,018,015 |
Merrill Lynch & Co., Inc. | 258,604 | 17,988,494 |
Morgan Stanley | 302,364 | 19,112,428 |
Northern Trust Corp. | 54,505 | 3,014,127 |
State Street Corp. | 94,234 | 5,474,053 |
T. Rowe Price Group, Inc. | 74,552 | 2,818,811 |
The Goldman Sachs Group, Inc. | 122,769 | 18,468,141 |
112,023,406 | ||
Commercial Banks 4.2% | ||
AmSouth Bancorp. | 98,099 | 2,594,719 |
BB&T Corp. | 150,818 | 6,272,521 |
Comerica, Inc. | 46,157 | 2,399,702 |
Commerce Bancorp, Inc. | 51,900 | 1,851,273 |
Compass Bancshares, Inc. | 35,100 | 1,951,560 |
Fifth Third Bancorp. | 156,491 | 5,782,343 |
First Horizon National Corp. | 35,391 | 1,422,718 |
Huntington Bancshares, Inc. | 66,896 | 1,577,408 |
KeyCorp. | 114,083 | 4,070,481 |
M&T Bank Corp. | 22,500 | 2,653,200 |
Marshall & Ilsley Corp. | 60,855 | 2,783,508 |
National City Corp. | 154,123 | 5,577,711 |
North Fork Bancorp., Inc. | 133,948 | 4,041,211 |
PNC Financial Services Group, Inc. | 82,361 | 5,779,271 |
Regions Financial Corp. | 128,531 | 4,256,947 |
SunTrust Banks, Inc. | 104,192 | 7,945,682 |
Synovus Financial Corp. | 88,621 | 2,373,270 |
US Bancorp. | 507,115 | 15,659,711 |
Wachovia Corp. | 456,948 | 24,711,748 |
Wells Fargo & Co. | 471,978 | 31,660,284 |
Zions Bancorp. | 25,456 | 1,984,041 |
137,349,309 | ||
Consumer Finance 1.0% | ||
American Express Co. | 348,543 | 18,549,458 |
Capital One Financial Corp. | 83,758 | 7,157,121 |
SLM Corp. | 117,565 | 6,221,540 |
31,928,119 | ||
Diversified Financial Services 5.4% | ||
Bank of America Corp. | 1,287,295 | 61,918,890 |
CIT Group, Inc. | 56,800 | 2,970,072 |
Citigroup, Inc. | 1,405,660 | 67,809,038 |
JPMorgan Chase & Co. | 981,613 | 41,227,746 |
Moody's Corp. | 68,500 | 3,730,510 |
177,656,256 | ||
Insurance 4.7% | ||
ACE Ltd. | 89,128 | 4,508,986 |
AFLAC, Inc. | 140,344 | 6,504,944 |
Allstate Corp. | 181,670 | 9,942,799 |
Ambac Financial Group, Inc. | 29,934 | 2,427,647 |
American International Group, Inc. | 730,948 | 43,162,479 |
Aon Corp. | 90,687 | 3,157,721 |
Chubb Corp. | 112,558 | 5,616,644 |
Cincinnati Financial Corp. | 49,034 | 2,305,088 |
Genworth Financial, Inc. "A" | 106,900 | 3,724,396 |
Hartford Financial Services Group, Inc. | 85,146 | 7,203,352 |
Lincoln National Corp. | 80,374 | 4,536,309 |
Loews Corp. | 114,586 | 4,062,074 |
Marsh & McLennan Companies, Inc. | 155,032 | 4,168,811 |
MBIA, Inc. | 38,146 | 2,233,448 |
MetLife, Inc. | 213,411 | 10,928,777 |
Principal Financial Group, Inc. | 78,719 | 4,380,712 |
Progressive Corp. | 221,388 | 5,691,886 |
Prudential Financial, Inc. | 139,416 | 10,832,623 |
Safeco Corp. | 34,989 | 1,971,630 |
The St. Paul Travelers Companies, Inc. | 195,675 | 8,723,192 |
Torchmark Corp. | 29,410 | 1,785,775 |
UnumProvident Corp. | 84,894 | 1,539,128 |
XL Capital Ltd. "A" | 49,532 | 3,036,312 |
152,444,733 | ||
Real Estate Investment Trusts 0.9% | ||
Apartment Investment & Management Co. "A" (REIT) | 27,500 | 1,194,875 |
Archstone-Smith Trust (REIT) | 60,600 | 3,082,722 |
Boston Properties, Inc. (REIT) | 25,300 | 2,287,120 |
Equity Office Properties Trust (REIT) | 105,311 | 3,844,904 |
Equity Residential (REIT) | 82,460 | 3,688,436 |
Kimco Realty Corp. (REIT) | 57,800 | 2,109,122 |
Plum Creek Timber Co., Inc. (REIT) | 52,024 | 1,846,852 |
ProLogis (REIT) | 69,100 | 3,601,492 |
Public Storage, Inc. (REIT) | 23,700 | 1,798,830 |
Simon Property Group, Inc. (REIT) | 51,534 | 4,274,230 |
Vornado Realty Trust (REIT) | 33,400 | 3,258,170 |
30,986,753 | ||
Thrifts & Mortgage Finance 1.6% | ||
Countrywide Financial Corp. | 169,844 | 6,467,660 |
Fannie Mae | 272,528 | 13,108,597 |
Freddie Mac | 194,631 | 11,095,913 |
Golden West Financial Corp. | 72,056 | 5,346,555 |
MGIC Investment Corp. | 24,863 | 1,616,095 |
Sovereign Bancorp, Inc. | 106,692 | 2,166,906 |
Washington Mutual, Inc. | 270,959 | 12,350,311 |
52,152,037 | ||
Health Care 12.2% | ||
Biotechnology 1.2% | ||
Amgen, Inc.* | 332,624 | 21,697,063 |
Biogen Idec, Inc.* | 97,271 | 4,506,565 |
Genzyme Corp.* | 73,140 | 4,465,197 |
Gilead Sciences, Inc.* | 130,160 | 7,700,266 |
MedImmune, Inc.* | 70,537 | 1,911,553 |
40,280,644 | ||
Health Care Equipment & Supplies 1.5% | ||
Bausch & Lomb, Inc. | 15,501 | 760,169 |
Baxter International, Inc. | 179,198 | 6,587,318 |
Becton, Dickinson & Co. | 69,592 | 4,254,159 |
Biomet, Inc. | 70,375 | 2,202,034 |
Boston Scientific Corp.* | 342,306 | 5,764,433 |
C.R. Bard, Inc. | 29,594 | 2,168,056 |
Hospira, Inc.* | 46,022 | 1,976,185 |
Medtronic, Inc. | 339,899 | 15,948,061 |
St. Jude Medical, Inc.* | 103,226 | 3,346,587 |
Stryker Corp. | 82,948 | 3,492,940 |
Zimmer Holdings, Inc.* | 69,808 | 3,959,510 |
50,459,452 | ||
Health Care Providers & Services 2.7% | ||
Aetna, Inc. | 159,696 | 6,376,661 |
AmerisourceBergen Corp. | 58,848 | 2,466,908 |
Cardinal Health, Inc. | 118,768 | 7,640,346 |
Caremark Rx, Inc.* | 126,300 | 6,298,581 |
CIGNA Corp. | 34,425 | 3,391,207 |
Coventry Health Care, Inc.* | 45,558 | 2,502,957 |
Express Scripts, Inc.* | 41,200 | 2,955,688 |
HCA, Inc. | 109,688 | 4,733,037 |
Health Management Associates, Inc. "A" | 67,833 | 1,336,988 |
Humana, Inc.* | 46,051 | 2,472,939 |
Laboratory Corp. of America Holdings* | 35,600 | 2,215,388 |
Manor Care, Inc. | 22,909 | 1,074,890 |
McKesson Corp. | 86,215 | 4,076,245 |
Medco Health Solutions, Inc.* | 85,688 | 4,908,209 |
Patterson Companies, Inc.* | 39,900 | 1,393,707 |
Quest Diagnostics, Inc. | 46,202 | 2,768,424 |
Tenet Healthcare Corp.* | 133,648 | 932,863 |
UnitedHealth Group, Inc. | 382,024 | 17,107,035 |
WellPoint, Inc.* | 179,816 | 13,085,210 |
87,737,283 | ||
Health Care Technology 0.1% | ||
IMS Health, Inc. | 56,706 | 1,522,556 |
| ||
Life Sciences Tools & Services 0.3% | ||
Applera Corp. — Applied Biosystems Group | 52,035 | 1,683,332 |
Fisher Scientific International, Inc.* | 34,700 | 2,534,835 |
Millipore Corp.* | 14,281 | 899,560 |
PerkinElmer, Inc. | 36,963 | 772,527 |
Thermo Electron Corp.* | 45,828 | 1,660,807 |
Waters Corp.* | 29,705 | 1,318,902 |
8,869,963 | ||
Pharmaceuticals 6.4% | ||
Abbott Laboratories | 433,322 | 18,897,172 |
Allergan, Inc. | 42,639 | 4,573,459 |
Barr Pharmaceuticals, Inc.* | 30,100 | 1,435,469 |
Bristol-Myers Squibb Co. | 551,736 | 14,267,893 |
Eli Lilly & Co. | 318,247 | 17,589,512 |
Forest Laboratories, Inc.* | 91,781 | 3,551,007 |
Johnson & Johnson | 838,101 | 50,219,012 |
King Pharmaceuticals, Inc.* | 69,175 | 1,175,975 |
Merck & Co., Inc. | 615,906 | 22,437,456 |
Mylan Laboratories, Inc. | 63,100 | 1,262,000 |
Pfizer, Inc. | 2,072,193 | 48,634,370 |
Schering-Plough Corp. | 416,652 | 7,928,887 |
Watson Pharmaceuticals, Inc.* | 29,407 | 684,595 |
Wyeth | 378,509 | 16,809,585 |
209,466,392 | ||
Industrials 11.6% | ||
Aerospace & Defense 2.4% | ||
Boeing Co. | 225,420 | 18,464,152 |
General Dynamics Corp. | 112,760 | 7,381,270 |
Goodrich Corp. | 34,438 | 1,387,507 |
Honeywell International, Inc. | 233,868 | 9,424,881 |
L-3 Communications Holdings, Inc. | 34,200 | 2,579,364 |
Lockheed Martin Corp. | 100,926 | 7,240,431 |
Northrop Grumman Corp. | 98,750 | 6,325,925 |
Raytheon Co. | 125,623 | 5,599,017 |
Rockwell Collins, Inc. | 49,044 | 2,740,088 |
United Technologies Corp. | 285,940 | 18,134,315 |
79,276,950 | ||
Air Freight & Logistics 1.1% | ||
FedEx Corp. | 85,601 | 10,003,333 |
United Parcel Service, Inc. "B" | 307,570 | 25,322,238 |
35,325,571 | ||
Airlines 0.1% | ||
Southwest Airlines Co. | 199,391 | 3,264,031 |
| ||
Building Products 0.2% | ||
American Standard Companies, Inc. | 50,752 | 2,196,039 |
Masco Corp. | 117,205 | 3,473,956 |
5,669,995 | ||
Commercial Services & Supplies 0.7% | ||
Allied Waste Industries, Inc.* | 62,446 | 709,387 |
Avery Dennison Corp. | 31,431 | 1,824,884 |
Cendant Corp. | 283,873 | 4,624,291 |
Cintas Corp. | 38,766 | 1,541,336 |
Equifax, Inc. | 37,309 | 1,281,191 |
Monster Worldwide, Inc.* | 33,889 | 1,445,705 |
Pitney Bowes, Inc. | 64,385 | 2,659,100 |
R.R. Donnelley & Sons Co. | 61,021 | 1,949,621 |
Robert Half International, Inc. | 48,775 | 2,048,550 |
Waste Management, Inc. | 155,540 | 5,580,775 |
23,664,840 | ||
Construction & Engineering 0.1% | ||
Fluor Corp. | 24,404 | 2,267,864 |
| ||
Electrical Equipment 0.5% | ||
American Power Conversion Corp. | 49,297 | 960,798 |
Cooper Industries Ltd. "A" | 25,801 | 2,397,429 |
Emerson Electric Co. | 115,870 | 9,711,065 |
Rockwell Automation, Inc. | 49,856 | 3,590,131 |
16,659,423 | ||
Industrial Conglomerates 4.0% | ||
3M Co. | 212,566 | 17,168,956 |
General Electric Co. | 2,935,465 | 96,752,926 |
Textron, Inc. | 37,227 | 3,431,585 |
Tyco International Ltd. | 567,529 | 15,607,047 |
132,960,514 | ||
Machinery 1.6% | ||
Caterpillar, Inc. | 188,868 | 14,066,889 |
Cummins, Inc. | 13,323 | 1,628,737 |
Danaher Corp. | 66,822 | 4,297,991 |
Deere & Co. | 66,696 | 5,568,449 |
Dover Corp. | 57,259 | 2,830,312 |
Eaton Corp. | 42,354 | 3,193,492 |
Illinois Tool Works, Inc. | 115,542 | 5,488,245 |
Ingersoll-Rand Co., Ltd. "A" | 92,254 | 3,946,626 |
ITT Industries, Inc. | 51,992 | 2,573,604 |
Navistar International Corp.* | 17,671 | 434,883 |
PACCAR, Inc. | 47,685 | 3,928,290 |
Pall Corp. | 35,510 | 994,280 |
Parker Hannifin Corp. | 34,068 | 2,643,677 |
51,595,475 | ||
Road & Rail 0.8% | ||
Burlington Northern Santa Fe Corp. | 104,986 | 8,320,141 |
CSX Corp. | 61,826 | 4,355,023 |
Norfolk Southern Corp. | 116,144 | 6,181,184 |
Ryder System, Inc. | 17,290 | 1,010,255 |
Union Pacific Corp. | 74,665 | 6,940,858 |
26,807,461 | ||
Trading Companies & Distributors 0.1% | ||
W.W. Grainger, Inc. | 21,762 | 1,637,155 |
| ||
Information Technology 14.7% | ||
Communications Equipment 2.7% | ||
ADC Telecommunications, Inc.* | 33,432 | 563,664 |
Andrew Corp.* | 46,667 | 413,470 |
Avaya, Inc.* | 120,255 | 1,373,312 |
Ciena Corp.* | 163,089 | 784,458 |
Cisco Systems, Inc.* | 1,732,164 | 33,829,163 |
Comverse Technologies, Inc.* | 56,805 | 1,123,035 |
Corning, Inc.* | 435,390 | 10,532,084 |
JDS Uniphase Corp.* | 481,919 | 1,219,255 |
Juniper Networks, Inc.* | 159,400 | 2,548,806 |
Lucent Technologies, Inc.* | 1,258,595 | 3,045,800 |
Motorola, Inc. | 703,896 | 14,183,504 |
QUALCOMM, Inc. | 466,454 | 18,690,812 |
Tellabs, Inc.* | 128,130 | 1,705,410 |
90,012,773 | ||
Computers & Peripherals 3.4% | ||
Apple Computer, Inc.* | 239,878 | 13,701,831 |
Dell, Inc.* | 640,747 | 15,640,634 |
EMC Corp.* | 669,362 | 7,342,901 |
Gateway, Inc.* | 80,725 | 153,378 |
Hewlett-Packard Co. | 786,836 | 24,926,964 |
International Business Machines Corp. | 441,420 | 33,909,884 |
Lexmark International, Inc. "A"* | 30,857 | 1,722,746 |
NCR Corp.* | 51,598 | 1,890,551 |
Network Appliance, Inc.* | 105,409 | 3,720,938 |
QLogic Corp.* | 46,600 | 803,384 |
SanDisk Corp.* | 51,800 | 2,640,764 |
Sun Microsystems, Inc.* | 980,565 | 4,069,345 |
110,523,320 | ||
Electronic Equipment & Instruments 0.3% | ||
Agilent Technologies, Inc.* | 118,041 | 3,725,374 |
Jabil Circuit, Inc. | 49,675 | 1,271,680 |
Molex, Inc. | 40,086 | 1,345,687 |
Sanmina-SCI Corp.* | 152,438 | 701,215 |
Solectron Corp.* | 262,527 | 897,842 |
Symbol Technologies, Inc. | 69,419 | 749,031 |
Tektronix, Inc. | 23,110 | 679,896 |
9,370,725 | ||
Internet Software & Services 1.4% | ||
eBay, Inc.* | 324,832 | 9,514,329 |
Google, Inc. "A"* | 58,100 | 24,363,073 |
VeriSign, Inc.* | 69,600 | 1,612,632 |
Yahoo!, Inc.* | 355,322 | 11,725,626 |
47,215,660 | ||
IT Services 1.0% | ||
Affiliated Computer Services, Inc. "A"* | 33,400 | 1,723,774 |
Automatic Data Processing, Inc. | 163,237 | 7,402,798 |
Computer Sciences Corp.* | 53,032 | 2,568,870 |
Convergys Corp.* | 40,140 | 782,730 |
Electronic Data Systems Corp. | 144,919 | 3,486,751 |
First Data Corp. | 216,088 | 9,732,603 |
Fiserv, Inc.* | 51,950 | 2,356,452 |
Paychex, Inc. | 94,067 | 3,666,732 |
Sabre Holdings Corp. | 37,746 | 830,412 |
Unisys Corp.* | 96,184 | 604,036 |
33,155,158 | ||
Office Electronics 0.1% | ||
Xerox Corp.* | 262,256 | 3,647,981 |
| ||
Semiconductors & Semiconductor Equipment 2.7% | ||
Advanced Micro Devices, Inc.* | 133,997 | 3,272,207 |
Altera Corp.* | 102,243 | 1,794,365 |
Analog Devices, Inc. | 103,068 | 3,312,606 |
Applied Materials, Inc. | 446,835 | 7,274,474 |
Broadcom Corp. "A"* | 123,370 | 3,707,269 |
Freescale Semiconductor, Inc. "B"* | 115,543 | 3,396,964 |
Intel Corp. | 1,656,782 | 31,396,019 |
KLA-Tencor Corp. | 56,485 | 2,348,081 |
Linear Technology Corp. | 87,006 | 2,913,831 |
LSI Logic Corp.* | 111,455 | 997,522 |
Maxim Integrated Products, Inc. | 91,243 | 2,929,813 |
Micron Technology, Inc.* | 177,949 | 2,679,912 |
National Semiconductor Corp. | 96,066 | 2,291,174 |
Novellus Systems, Inc.* | 37,982 | 938,155 |
NVIDIA Corp.* | 97,598 | 2,077,861 |
PMC-Sierra, Inc.* | 51,502 | 484,119 |
Teradyne, Inc.* | 56,458 | 786,460 |
Texas Instruments, Inc. | 450,748 | 13,653,157 |
Xilinx, Inc. | 98,113 | 2,222,259 |
88,476,248 | ||
Software 3.1% | ||
Adobe Systems, Inc.* | 168,904 | 5,127,925 |
Autodesk, Inc.* | 64,948 | 2,238,108 |
BMC Software, Inc.* | 60,369 | 1,442,819 |
CA, Inc. | 129,515 | 2,661,533 |
Citrix Systems, Inc.* | 48,514 | 1,947,352 |
Compuware Corp.* | 111,721 | 748,531 |
Electronic Arts, Inc.* | 86,206 | 3,710,306 |
Intuit, Inc.* | 49,833 | 3,009,415 |
Microsoft Corp. | 2,474,685 | 57,660,161 |
Novell, Inc.* | 109,682 | 727,192 |
Oracle Corp.* | 1,098,529 | 15,917,685 |
Parametric Technology Corp.* | 30,781 | 391,227 |
Symantec Corp.* | 293,806 | 4,565,745 |
100,147,999 | ||
Materials 3.0% | ||
Chemicals 1.5% | ||
Air Products & Chemicals, Inc. | 63,190 | 4,039,105 |
Ashland, Inc. | 20,204 | 1,347,607 |
Dow Chemical Co. | 272,391 | 10,631,421 |
E.I. du Pont de Nemours & Co. | 259,052 | 10,776,563 |
Eastman Chemical Co. | 22,986 | 1,241,244 |
Ecolab, Inc. | 51,942 | 2,107,806 |
Hercules, Inc.* | 32,030 | 488,778 |
International Flavors & Fragrances, Inc. | 22,416 | 789,940 |
Monsanto Co. | 75,892 | 6,389,347 |
PPG Industries, Inc. | 46,562 | 3,073,092 |
Praxair, Inc. | 90,928 | 4,910,112 |
Rohm & Haas Co. | 40,589 | 2,034,321 |
Sigma-Aldrich Corp. | 18,834 | 1,368,102 |
49,197,438 | ||
Construction Materials 0.1% | ||
Vulcan Materials Co. | 28,631 | 2,233,218 |
| ||
Containers & Packaging 0.2% | ||
Ball Corp. | 29,924 | 1,108,385 |
Bemis Co., Inc. | 30,630 | 937,890 |
Pactiv Corp.* | 41,149 | 1,018,438 |
Sealed Air Corp. | 23,536 | 1,225,755 |
Temple-Inland, Inc. | 31,162 | 1,335,915 |
5,626,383 | ||
Metals & Mining 0.9% | ||
Alcoa, Inc. | 245,551 | 7,946,030 |
Allegheny Technologies, Inc. | 24,379 | 1,688,002 |
Freeport-McMoRan Copper & Gold, Inc. "B" | 51,690 | 2,864,143 |
Newmont Mining Corp. | 125,800 | 6,658,594 |
Nucor Corp. | 87,436 | 4,743,403 |
Phelps Dodge Corp. | 57,374 | 4,713,848 |
United States Steel Corp. | 30,992 | 2,173,159 |
30,787,179 | ||
Paper & Forest Products 0.3% | ||
International Paper Co. | 138,762 | 4,482,012 |
Louisiana-Pacific Corp. | 30,591 | 669,943 |
MeadWestvaco Corp. | 52,044 | 1,453,589 |
Weyerhaeuser Co. | 68,564 | 4,268,109 |
10,873,653 | ||
Telecommunication Services 3.3% | ||
Diversified Telecommunication Services 2.6% | ||
AT&T, Inc. | 1,092,581 | 30,472,084 |
BellSouth Corp. | 506,307 | 18,328,314 |
CenturyTel, Inc. | 32,655 | 1,213,133 |
Citizens Communications Co. | 92,505 | 1,207,190 |
Embarq Corp.* | 41,781 | 1,712,603 |
Qwest Communications International, Inc.* | 436,881 | 3,534,367 |
Verizon Communications, Inc. | 824,312 | 27,606,209 |
84,073,900 | ||
Wireless Telecommunication Services 0.7% | ||
ALLTEL Corp. | 109,236 | 6,972,534 |
Sprint Nextel Corp. | 835,628 | 16,704,204 |
23,676,738 | ||
Utilities 3.3% | ||
Electric Utilities 1.5% | ||
Allegheny Energy, Inc.* | 46,818 | 1,735,543 |
American Electric Power Co., Inc. | 111,715 | 3,826,239 |
Edison International | 91,790 | 3,579,810 |
Entergy Corp. | 58,509 | 4,139,512 |
Exelon Corp. | 187,938 | 10,680,517 |
FirstEnergy Corp. | 92,895 | 5,035,838 |
FPL Group, Inc. | 114,094 | 4,721,210 |
Pinnacle West Capital Corp. | 27,896 | 1,113,329 |
PPL Corp. | 107,848 | 3,483,490 |
Progress Energy, Inc. | 71,050 | 3,045,914 |
Southern Co. | 208,888 | 6,694,860 |
48,056,262 | ||
Gas Utilities 0.0% | ||
Nicor, Inc. | 12,637 | 524,435 |
Peoples Energy Corp. | 8,292 | 297,766 |
822,201 | ||
Independent Power Producers & Energy Traders 0.4% | ||
AES Corp.* | 186,150 | 3,434,468 |
Constellation Energy Group | 50,287 | 2,741,647 |
Dynegy, Inc. "A"* | 86,161 | 471,301 |
TXU Corp. | 130,350 | 7,793,626 |
14,441,042 | ||
Multi-Utilities 1.4% | ||
Ameren Corp. | 57,619 | 2,909,759 |
CenterPoint Energy, Inc. | 88,268 | 1,103,350 |
CMS Energy Corp.* | 62,849 | 813,266 |
Consolidated Edison, Inc. | 69,116 | 3,071,515 |
Dominion Resources, Inc. | 97,818 | 7,315,808 |
DTE Energy Co. | 50,703 | 2,065,640 |
Duke Energy Corp. | 348,996 | 10,250,013 |
KeySpan Corp. | 49,575 | 2,002,830 |
NiSource, Inc. | 77,366 | 1,689,673 |
PG&E Corp. | 97,247 | 3,819,862 |
Public Service Enterprise Group, Inc. | 69,173 | 4,573,719 |
Sempra Energy | 72,790 | 3,310,489 |
TECO Energy, Inc. | 59,788 | 893,233 |
Xcel Energy, Inc. | 113,737 | 2,181,476 |
46,000,633 | ||
Total Common Stocks (Cost $2,620,646,073) | 3,245,123,854 | |
|
| Principal Amount ($) | Value ($) |
|
| |
US Treasury Obligations 0.1% | ||
US Treasury Bill, 4.658%**, 9/21/2006 (a) (Cost $1,775,996) | 1,795,000 | 1,775,919 |
|
| Shares | Value ($) |
|
| |
Cash Equivalents 0.7% | ||
Cash Management QP Trust, 5.07% (b) (Cost $22,014,348) | 22,014,348 | 22,014,348 |
|
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $2,644,436,417)+ | 99.9 | 3,268,914,121 |
Other Assets and Liabilities, Net | 0.1 | 5,189,136 |
Net Assets | 100.0 | 3,274,103,257 |
* Non-income producing security
** Annualized yield at time of purchase; not a coupon rate.
+ The cost for federal income tax purposes was $2,644,613,703. At June 30, 2006, net unrealized appreciation for all securities based on tax cost was $624,300,418. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $905,550,494 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $281,250,076.
(a) At June 30, 2006, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.
(b) Cash Management QP Trust, an affiliated fund, is managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
REIT: Real Estate Investment Trust
At June 30, 2006, open futures contracts purchased were as follows:
Futures | Expiration Date | Contracts | Aggregate Face Value ($) | Value ($) | Unrealized Appreciation ($) |
S&P 500 Index | 9/14/2006 | 90 | 28,281,578 | 28,786,500 | 504,922 |
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of June 30, 2006 (Unaudited) | |
Assets | |
Investments: Investments in securities, at value (cost $2,622,422,069) | $ 3,246,899,773 |
Investment in Cash Management QP Trust (cost $22,014,348) | 22,014,348 |
Total investments in securities, at value (cost $2,644,436,417) | 3,268,914,121 |
Receivable for investments sold | 2,417,842 |
Dividends receivable | 3,694,618 |
Interest receivable | 94,556 |
Other assets | 121,605 |
Total assets | 3,275,242,742 |
Liabilities | |
Due to custodian | 695,908 |
Payable for investments purchased | 254,729 |
Payable for daily variation margin on open futures contracts | 72,925 |
Accrued management fee | 18,621 |
Other accrued expenses and payables | 97,302 |
Total liabilities | 1,139,485 |
Net assets | $ 3,274,103,257 |
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended June 30, 2006 (Unaudited) | |
Investment Income | |
Income: Dividends | $ 31,446,137 |
Interest — Cash Management QP Trust | 338,926 |
Interest | 42,655 |
Total Income | 31,827,718 |
Expenses: Management fee | 830,135 |
Administrative services fee | 79,878 |
Auditing | 29,994 |
Legal | 20,656 |
Custodian fees | 9,506 |
Trustees' fees and expenses | 69,466 |
Other | 52,880 |
Total expenses before expense reductions | 1,092,515 |
Expense reductions | (271,267) |
Total expenses after expense reductions | 821,248 |
Net investment income (loss) | 31,006,470 |
Realized and Unrealized Gain (Loss) on Investment Transactions | |
Net realized gain (loss) from: Investments | (13,165,991) |
Futures | (610,666) |
| (13,776,657) |
Net unrealized appreciation (depreciation) during the period on: Investments | 72,668,283 |
Futures | 648,283 |
| 73,316,566 |
Net gain (loss) on investment transactions | 59,539,909 |
Net increase (decrease) in net assets resulting from operations | $ 90,546,379 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | ||
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 |
Operations: Net investment income (loss) | $ 31,006,470 | $ 59,209,202 |
Net realized gain (loss) on investment transactions | (13,776,657) | (42,983,054) |
Net unrealized appreciation (depreciation) during the period on investment transactions | 73,316,566 | 142,979,748 |
Net increase (decrease) in net assets resulting from operations | 90,546,379 | 159,205,896 |
Capital transactions in shares of beneficial interest: Proceeds from capital invested | 267,249,942 | 711,454,930 |
Value of capital withdrawn | (390,851,600) | (835,252,260) |
Net increase (decrease) in net assets from capital transactions in shares of beneficial interest | (123,601,658) | (123,797,330) |
Increase (decrease) in net assets | (33,055,279) | 35,408,566 |
Net assets at beginning of period | 3,307,158,536 | 3,271,749,970 |
Net assets at end of period | $ 3,274,103,257 | $ 3,307,158,536 |
The accompanying notes are an integral part of the financial statements.
Years Ended December 31, | 2006a | 2005 | 2004 | 2003 | 2002 | 2001 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 3,274 | 3,307 | 3,272 | 3,260 | 2,348 | 2,961 |
Ratio of expenses before expense reductions (%) | .07* | .06 | .06 | .05 | .05 | .05 |
Ratio of expenses after expense reductions (%) | .05* | .05 | .05 | .05 | .05 | .05 |
Ratio of net investment income (loss) (%) | 1.87* | 1.82 | 1.97 | 1.74 | 1.56 | 1.29 |
Portfolio turnover rate (%) | 5* | 9 | 7 | 8b | 19 | 9b |
Total investment return (%)c,d | 2.71** | 4.90 | 10.79 | 28.50 | (22.02) | — |
a For the six months ended June 30, 2006 (Unaudited). b Excludes portfolio securities delivered as a result of processing redemption in-kind transactions. c Total investment return would have been lower had certain expenses not been reduced. d Total investment return for the Portfolio was derived from the performance of the Institutional Class of DWS Equity 500 Index Fund. * Annualized ** Not annualized |
Notes to Financial Statements (Unaudited)
A. Significant Accounting Policies
DWS Equity 500 Index Portfolio (the "Portfolio") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company organized as a New York business trust.
The Portfolio's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Portfolio in the preparation of its financial statements.
Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading. Equity securities are valued at the most recent sale price or official closing price reported on the exchange (US or foreign) or over-the-counter market on which the security is traded most extensively. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation.
Money market instruments purchased with an original or remaining maturity of sixty days or less, maturing at par, are valued at amortized cost. Investments in open-end investment companies and Cash Management QP Trust are valued at their net asset value each business day.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Trustees.
Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date). The Portfolio may enter into futures contracts as a hedge against anticipated interest rate, currency or equity market changes, and for duration management, risk management and return enhancement purposes.
Upon entering into a futures contract, the Portfolio is required to deposit with a financial intermediary an amount ("initial margin") equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments ("variation margin") are made or received by the Portfolio dependent upon the daily fluctuations in the value of the underlying security and are recorded for financial reporting purposes as unrealized gains or losses by the Portfolio. When entering into a closing transaction, the Portfolio will realize a gain or loss equal to the difference between the value of the futures contract to sell and the futures contract to buy. Futures contracts are valued at the most recent settlement price.
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid secondary market will limit the Portfolio's ability to close out a futures contract prior to the settlement date and that a change in the value of a futures contract may not correlate exactly with the changes in the value of the securities or currencies hedged. When utilizing futures contracts to hedge, the Portfolio gives up the opportunity to profit from favorable price movements in the hedged positions during the term of the contract.
Federal Income Taxes. The Portfolio is considered a partnership under the Internal Revenue Code, as amended. Therefore, no federal income tax provision is necessary.
Contingencies. In the normal course of business, the Portfolio may enter into contracts with service providers that contain general indemnification clauses. The Portfolio's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet been made. However, based on experience, the Portfolio expects the risk of loss to be remote.
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment security transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Realized gains and losses from investment transactions are recorded on an identified cost basis.
The Portfolio makes a daily allocation of its net investment income and realized and unrealized gains and losses from securities, futures and foreign currency transactions to its investors in proportion to their investment in the Portfolio.
B. Purchases and Sales of Securities
During the six months ended June 30, 2006, purchases and sales of investment securities (excluding short-term investments) aggregated $84,514,625 and $187,251,295, respectively. Purchases and sales of US Treasury obligations aggregated $2,539,483 and $785,736, respectively.
C. Related Parties
Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, is the Advisor for the Portfolio.
Investment Advisory Agreement. Under the Investment Advisory Agreement, the Advisor directs the investments of the Portfolio in accordance with its investment objectives, policies and restrictions. The advisory fee payable under the Investment Advisory Agreement is equal to an annual rate of 0.05% of the Portfolio's average daily net assets, computed and accrued daily and payable monthly. Northern Trust Investments, N.A. ("NTI") serves as subadvisor to the Portfolio and is paid by the Advisor for its services. NTI is responsible for the day to day management of the Portfolio.
For the period from January 1, 2006 through May 31, 2006, the Advisor agreed to waive all or a portion of its management fee and reimburse or pay certain operating expenses of the Portfolio to the extent necessary to maintain the annualized operating expenses of the Portfolio at 0.05% of average daily net assets. The amount of the waiver and whether the Advisor waives its fees may vary at any time without notice to shareholders.
Effective June 1, 2006 and through September 30, 2006, the Advisor agreed to waive all or a portion of its management fee and reimburse or pay certain operating expenses of the Portfolio to the extent necessary to maintain the annualized operating expenses of the Portfolio at 0.049% of average daily net assets (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and organization and offering expenses).
Accordingly, for the six months ended June 30, 2006, the Advisor waived a portion of its advisory fee pursuant to the Investment Advisory Agreement of $248,327 and charged $581,808, which was equivalent to an annualized effective rate of 0.04% of the Portfolio's average net assets.
Administrator Services Agreement. Prior to June 1, 2006, Investment Company Capital Corp. ("ICCC" or the "Administrator"), an affiliate of the Advisor, was the Portfolio's Administrator. For its services as Administrator, ICCC did not receive a fee from the Portfolio. Effective June 1, 2006, the Portfolio entered into an Administrative Services Agreement with Deutsche Investment Management Americas Inc. ("DeIM"), an indirect, wholly owned subsidiary of Deutsche Bank AG, pursuant to which DeIM provides most administrative services to the Portfolio. For all services provided under the Administrative Services Agreement, the Portfolio pays DeIM a fee of 0.03% of the Portfolio's average daily net assets, computed and accrued daily and payable monthly. For the period June 1, 2006 through June 30, 2006, DeIM received an Administrative fee of $79,878, all of which is unpaid.
Trustees' Fees and Expenses. As compensation for his or her services, each Independent Trustee receives an aggregated annual fee, plus a fee for each meeting attended (plus reimbursement for reasonable out-of-pocket expenses incurred in connection with his or her attendance at board and committee meetings) from each fund in the Fund Complex for which he or she serves. In addition, the Chairman of the Board and the Chairman of each committee of the Board receive additional compensation for their services. Payment of such fees and expenses is allocated among all such funds described above in direct proportion to their relative net assets.
Cash Management QP Trust. Pursuant to an Exemptive Order issued by the SEC, the Portfolio may invest in the Cash Management QP Trust (the "QP Trust") and other affiliated funds managed by the Advisor. The QP Trust seeks to provide as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity. The QP Trust does not pay its Advisor a management fee for the affiliated funds' investments in the QP Trust.
D. Line of Credit
The Portfolio and several other affiliated funds (the ``Participants'') share in a $750 million revolving credit facility administered by JPMorgan Chase Bank N.A. for temporary or emergency purposes, including the meeting of withdrawal requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated, based upon net assets, among each of the Participants. Interest is calculated at the Federal Funds Rate plus 0.5 percent. The Portfolio may borrow up to a maximum of 33 percent of its net assets under the agreement.
E. Expense Reductions
For the six months ended June 30, 2006, the Advisor had agreed to reimburse the Portfolio $22,723, which represents a portion of the fee savings expected to be realized by the Advisor related to the outsourcing by the Advisor of certain administrative services to an unaffiliated service provider.
In addition, the Portfolio has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Portfolio's custodian expenses. During the six months ended June 30, 2006, custodian fees were reduced by $217 for custody credits earned.
F. Regulatory Matters and Litigation
Market Timing Related Regulatory and Litigation Matters. Since at least July 2003, federal, state and industry regulators have been conducting ongoing inquiries and investigations ("inquiries") into the mutual fund industry, and have requested information from numerous mutual fund companies, including DWS Scudder. The DWS funds' advisors have been cooperating in connection with these inquiries and are in discussions with the regulators concerning proposed settlements. Publicity about mutual fund practices arising from these industry-wide inquiries serves as the general basis of a number of private lawsuits against the DWS funds. These lawsuits, which previously have been reported in the press, involve purported class action and derivative lawsuits, making various allegations and naming 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 allegations similar to these lawsuits regarding market timing, revenue sharing, fund valuation or other subjects arising from or related to the pending inquiries. It is not possible to determine with certainty what the outcome of these inquiries will be or what the effect, if any, would be on the funds or their advisors.
With respect to the lawsuits, 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.
With respect to the regulatory matters, Deutsche Asset Management ("DeAM") has advised the funds as follows:
DeAM expects to reach final agreements with regulators in 2006 regarding allegations of improper trading in the DWS funds. DeAM expects that it will reach settlement agreements with the Securities and Exchange Commission, the New York Attorney General and the Illinois Secretary of State providing for payment of disgorgement, penalties, and investor education contributions totaling approximately $134 million. Approximately $127 million of this amount would be distributed to shareholders of the affected DWS funds in accordance with a distribution plan to be developed by an independent distribution consultant. DeAM does not believe that any of the DWS funds will be named as respondents or defendants in any proceedings. 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 they have already been reserved.
Based on the settlement discussions thus far, DeAM believes that it will be able to reach a settlement with the regulators on a basis that is generally consistent with settlements reached by other advisors, taking into account the particular facts and circumstances of market timing at DeAM and at the legacy Scudder and Kemper organizations prior to their acquisition by DeAM in April 2002. Among the terms of the expected settled orders, DeAM would be subject to certain undertakings regarding the conduct of its business in the future, including maintaining existing management fee reductions for certain funds for a period of five years. DeAM expects that these settlements would resolve regulatory allegations that it violated certain provisions of federal and state securities laws (i) by entering into trading arrangements that permitted certain investors to engage in market timing in certain DWS funds and (ii) by failing more generally to take adequate measures to prevent market timing in the DWS funds, primarily during the 1999-2001 period. With respect to the trading arrangements, DeAM expects that the settlement documents will include allegations related to one legacy DeAM arrangement, as well as three legacy Scudder and six legacy Kemper arrangements. All of these trading arrangements originated in businesses that existed prior to the current DeAM organization, which came together in April 2002 as a result of the 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 the trading arrangements.
There is no certainty that the final settlement documents will contain the foregoing terms and conditions. The independent Trustees/Directors of the DWS funds have carefully monitored these regulatory investigations with the assistance of independent legal counsel and independent economic consultants.
Other Regulatory Matters. DeAM is also engaged in settlement discussions with the Enforcement Staffs of the SEC and the NASD regarding DeAM's practices during 2001-2003 with respect to directing brokerage commissions for portfolio transactions by certain DWS funds to broker-dealers that sold shares in the DWS funds and provided enhanced marketing and distribution for shares in the DWS funds. In addition, DWS Scudder Distributors, Inc. is in settlement discussions with the Enforcement Staff of the NASD regarding DWS Scudder Distributors' payment of non-cash compensation to associated persons of NASD member firms, as well as DWS Scudder Distributors' procedures regarding non-cash compensation regarding entertainment provided to such associated persons.
Additional information announced by Deutsche Asset Management regarding the terms of the expected settlements referred to in the Market Timing Related Regulatory and Litigation Matters and Other Regulatory Matters in the Notes to Financial Statements will be made available at www.dws-scudder.com/regulatory_settlements, which will also disclose the terms of any final settlement agreements once they are announced.
A Special Meeting of Shareholders (the "Meeting") of DWS Equity 500 Index Portfolio (the "Portfolio") was held on May 5, 2006, at the offices of Deutsche Asset Management, Inc., 345 Park Avenue, New York, New York 10154. At the Meeting, the following matters were voted upon by the shareholders (the resulting votes are presented below).
I. Election of Trustees.
| Number of Votes: | |
| For | Withheld |
Henry P. Becton, Jr. | 57,617,596.130 | 3,891,067.330 |
Dawn-Marie Driscoll | 57,591,332.617 | 3,917,330.843 |
Keith R. Fox | 57,604,938.331 | 3,903,725.129 |
Kenneth C. Froewiss | 57,637,535.228 | 3,871,128.232 |
Martin J. Gruber | 57,588,079.198 | 3,920,584.262 |
Richard J. Herring | 57,631,382.838 | 3,877,280,622 |
Graham E. Jones | 57,521,498.803 | 3,987,164.657 |
Rebecca W. Rimel | 57,635,722.248 | 3,872,941.212 |
Philip Saunders, Jr. | 57,607,167.464 | 3,901,495.996 |
William N. Searcy, Jr. | 57,628,678.751 | 3,879,984.709 |
Jean Gleason Stromberg | 57,577,473.848 | 3,931,189.612 |
Carl W. Vogt | 57,497,001.103 | 4,011,662.357 |
Axel Schwarzer | 57,565,173.425 | 3,943,490.035 |
II-B. Approval of an Amended and Restated Investment Management Agreement with Deutsche Asset Management, Inc.
Number of Votes: | ||
For | Against | Abstain |
52,603,376.298 | 4,963,655.137 | 3,941,632.025 |
II-C. Approval of an Amended and Restated Investment Management Agreement between the Portfolio and Deutsche Investment Management Americas Inc.
Number of Votes: | ||
For | Against | Abstain |
52,437,644.651 | 4,823,546.182 | 4,247,472.627 |
II-D. Approval of a Subadvisor Approval Policy.
Number of Votes: | ||
For | Against | Abstain |
54,587,151.513 | 2,974,076.609 | 3,947,435.338 |
III. Approval of revised fundamental investment restrictions for the Portfolio on:
III-A. Borrowing Money
Number of Votes: | ||
For | Against | Abstain |
55,016,045.296 | 2,342,135.948 | 4,150,482.216 |
III-B. Senior Securities
Number of Votes: | ||
For | Against | Abstain |
55,069,640.480 | 2,279,882.788 | 4,159,140.192 |
III-C. Concentration
Number of Votes: | ||
For | Against | Abstain |
55,089,477.187 | 2,260,046.081 | 4,159,140.192 |
III-D. Underwriting
Number of Votes: | ||
For | Against | Abstain |
55,102,352.639 | 2,247,170.629 | 4,159,140.192 |
III-E. Real Estate
Number of Votes: | ||
For | Against | Abstain |
55,074,014.294 | 2,284,166.950 | 4,150,482.216 |
III-F. Commodities
Number of Votes: | ||
For | Against | Abstain |
54,968,508.645 | 2,389,672.599 | 4,150,482.216 |
III-G. Oil, Gas and Mineral Interests
Number of Votes: | ||
For | Against | Abstain |
55,078,056.451 | 2,286,896.993 | 4,143,710.016 |
III-H. Lending
Number of Votes: | ||
For | Against | Abstain |
54,924,634.310 | 2,416,539.717 | 4,167,489.433 |
III-I. Diversification
Number of Votes: | ||
For | Against | Abstain |
55,104,553.304 | 2,242,932.377 | 4,161,177.779 |
For shareholders of Classes A, B and C | |
Automated Information Lines | InvestorACCESS (800) 621-1048 Personalized account information, information on other DWS funds and services via touchtone telephone and for Classes A, B, and C only, the ability to exchange or redeem shares. |
Web Site | www.dws-scudder.com View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day. Obtain prospectuses and applications, blank forms, interactive worksheets, news about DWS funds, subscription to fund updates by e-mail, retirement planning information, and more. |
For More Information | (800) 621-1048 To speak with a DWS Scudder service representative. |
Written Correspondence | DWS Scudder PO Box 219356 |
Proxy Voting | A description of the fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 is available on our Web site — www.dws-scudder.com (click on "proxy voting"at the bottom of the page) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at 1-800-621-1048. |
Principal Underwriter | If you have questions, comments or complaints, contact: DWS Scudder Distributors, Inc. 222 South Riverside Plaza (800) 621-1148 |
| Class A | Class B | Class C |
Nasdaq Symbol | SXPAX | SXPBX | SXPCX |
CUSIP Number | 23338J 749 | 23338J 731 | 23338J 723 |
Fund Number | 1001 | 1201 | 1301 |
For shareholders of Class AARP and Class S | |
Automated Information Lines | SAILTM (800) 728-3337 |
| Personalized account information, the ability to exchange or redeem shares, and information on other DWS funds and services via touchtone telephone. |
Web Sites | www.dws-scudder.com |
| View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day. Obtain prospectuses and applications, blank forms, interactive worksheets, news about DWS funds, subscription to fund updates by e-mail, retirement planning information, and more. |
For More Information | (800) 728-3337 To speak with a DWS Scudder service representative. |
Written Correspondence | DWS Scudder PO Box 219669 |
Proxy Voting | A description of the fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 is available on our Web site — www.dws-scudder.com (click on "proxy voting"at the bottom of the page) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at 1-800-621-1048. |
Principal Underwriter | If you have questions, comments or complaints, contact: DWS Scudder Distributors, Inc. 222 South Riverside Plaza (800) 621-1148 |
| Class AARP | Class S |
Nasdaq Symbol | ASPIX | SCPIX |
Fund Number | 2201 | 2301 |
This privacy statement is issued by DWS Scudder Distributors, Inc., Deutsche Investment Management Americas Inc., Deutsche Asset Management, Inc., Investment Company Capital Corporation, DeAM Investor Services, Inc., DWS Trust Company and the DWS Funds.
We never sell customer lists or individual client information. We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal and state standards to protect confidentiality. These safeguards extend to all forms of interaction with us, including the Internet.
In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our websites, and through transactions with us or our affiliates. Examples of the nonpublic personal information collected are name, address, Social Security number and transaction and balance information. To be able to serve our clients, certain of this client information is shared with affiliated and nonaffiliated third party service providers such as transfer agents, custodians, and broker-dealers to assist us in processing transactions and servicing your account with us. In addition, we may disclose all of the information we collect to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements. The organizations described above that receive client information may only use it for the purpose designated by the companies listed above.
We may also disclose nonpublic personal information about you to other parties as required or permitted by law. For example, we are required or we may provide information to government entities or regulatory bodies in response to requests for information or subpoenas, to private litigants in certain circumstances, to law enforcement authorities, or any time we believe it necessary to protect the firm.
Questions on this policy may be sent to:
DWS Scudder
Attention: Correspondence — Chicago
P.O. Box 219415, Kansas City, MO 64121-9415
For Class S only:
DWS Scudder
Attention: Correspondence,
P.O. Box 219669, Kansas City, MO 64121-9669
February 2006
Notes
Notes
Notes
Notes
Notes
Notes
| ITEM 2. | CODE OF ETHICS. |
| Not applicable. |
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
| Not applicable. |
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
| Not applicable. |
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
| Not Applicable |
| ITEM 6. | SCHEDULE OF INVESTMENTS |
| Not Applicable |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
| Not applicable. |
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
| Not applicable. |
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
| Not Applicable. |
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
The Nominating and Governance Committee evaluates and nominates Board member candidates. Fund shareholders may also submit nominees that will be considered by the Committee when a Board vacancy occurs. Submissions should be mailed to the attention of the Secretary of the Fund, Two International Place, 10th Floor, Boston, MA 02110.
| ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | The Chief Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. |
(b) | There have been no changes in the registrant's internal control over financial reporting that occurred during the registrant's last half-year (the registrant's second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal controls over financial reporting. |
| ITEM 12. | EXHIBITS. |
(a)(1) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
Form N-CSRS Item F
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | DWS S&P 500 Index Fund, a series of DWS Investment Trust |
By: | /s/Michael G. Clark | |
| Michael G. Clark |
|
President
Date: | August 28, 2006 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Registrant: | DWS S&P 500 Index Fund, a series of DWS Investment Trust |
By: | /s/Michael G. Clark | |
| Michael G. Clark |
|
President
Date: | August 28, 2006 |
By: | /s/Paul Schubert | |
| Paul Schubert |
|
Chief Financial Officer and Treasurer
Date: | August 28, 2006 |