UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number | 811-8606 |
DWS Target Date Series
(Exact Name of Registrant as Specified in Charter)
345 Park Avenue
New York, NY 10154-0004
(Address of principal executive offices) (Zip code)
Registrant’s Telephone Number, including Area Code: (212) 454-7190
Paul Schubert
345 Park Avenue
New York, NY 10154-0004
(Name and Address of Agent for Service)
Date of fiscal year end: | 08/31 |
Date of reporting period: | 08/31/08 |
ITEM 1. REPORT TO STOCKHOLDERS
AUGUST 31, 2008 Annual Report |
|
DWS Target Date Series DWS LifeCompass Retirement Fund (formerly DWS Conservative Allocation Fund) DWS LifeCompass 2015 Fund (formerly DWS Moderate Allocation Fund) DWS LifeCompass 2020 Fund (formerly DWS Growth Allocation Fund) DWS LifeCompass 2030 Fund (formerly DWS Growth Plus Allocation Fund) DWS LifeCompass 2040 Fund |
Contents
click here Performance Summaries click here Information About Each Fund's Expenses click here Portfolio Management Review Click here Fund Highlights click here Portfolio Summaries click here Investment Portfolios click here Financial Statements click here Financial Highlights click here Notes to Financial Statements click here Report of Independent Registered Public Accounting Firm click here Tax Information click here Summary of Management Fee Evaluation by Independent Fee Consultant click here Trustees and Officers click here Account Management Resources |
This report must be preceded or accompanied by a prospectus. To obtain a prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider a fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the funds. Please read the prospectus carefully before you invest.
Diversification does not eliminate risk. The funds are subject to stock market risk, meaning stocks in the underlying funds may decline in value for extended periods of time due to the activities and financial prospects of individual companies, or due to general market and economic conditions. Asset allocation risk: although asset allocation among different asset classes generally limits risk and exposure to any one class, the risk remains that the investment advisor may favor an asset class that performs poorly relative to the other asset classes. Investing in foreign securities presents certain risks, such as currency fluctuation, political and economic changes and market risks. The underlying funds invest in individual bonds whose yields and market values fluctuate so that your investment may be worth more or less than its original cost. Bond investments are subject to interest rate risk such that when interest rates rise, the prices of the bonds, and thus the value of the fund, can decline and the investor can lose principal value. Derivatives may be more volatile and less liquid than traditional securities, and the funds could suffer losses on an underlying fund's derivative position. An investment in underlying money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in them. Please read each fund's prospectus for specific details regarding its risk profile.
DWS Investments is part of Deutsche Bank's Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Performance Summaries August 31, 2008
DWS LifeCompass Retirement Fund
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-investments.com for the Fund's most recent month-end performance.
The maximum sales charge for Class A shares is 5.75%. For Class B shares, the maximum contingent deferred sales charge (CDSC) is 4% within the first year after purchase, declining to 0% after six years. Class C shares have no front-end sales charge but redemptions within one year of purchase may be subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The total annual fund direct operating expense ratios, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 are 0.62%, 1.34% and 1.34% for Class A, Class B and Class C shares, respectively. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratios, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 are 1.16%, 1.88% and 1.88% for Class A, Class B and Class C shares, respectively. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during all periods shown reflect a fee waiver and/or expense reimbursement for DWS LifeCompass Retirement Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
DWS LifeCompass Retirement Fund
Returns shown for Class A, B and C shares for the periods prior to their inception on December 29, 2000 are derived from the historical performance of Class S shares of DWS LifeCompass Retirement Fund during such periods and have been adjusted to reflect the higher annual total operating expenses of each specific class. Any difference in expenses will affect performance.
Average Annual Total Returns (Unadjusted for Sales Charge) as of 8/31/08 | ||||
DWS LifeCompass Retirement Fund | 1-Year | 3-Year | 5-Year | 10-Year |
Class A | -4.76% | 2.78% | 4.96% | 3.45% |
Class B | -5.46% | 2.04% | 4.17% | 2.69% |
Class C | -5.43% | 2.08% | 4.21% | 2.70% |
Russell® 1000 Index+ | -10.60% | 3.85% | 7.41% | 5.21% |
Russell® 2000 Index++ | -5.48% | 4.80% | 9.55% | 9.53% |
Lehman Brothers Intermediate U.S. Aggregate Index+++ | 5.98% | 4.52% | 4.44% | 5.53% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
Net Asset Value and Distribution Information | |||
| Class A | Class B | Class C |
Net Asset Value: 8/31/08 | $ 11.49 | $ 11.49 | $ 11.49 |
8/31/07 | $ 12.51 | $ 12.52 | $ 12.52 |
Distribution Information: Twelve Months as of 8/31/08:Income Dividends | $ .44 | $ .36 | $ .36 |
DWS LifeCompass Retirement Fund
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] DWS LifeCompass Retirement Fund — Class A [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers Intermediate U.S. Aggregate Index+++ |
Yearly periods ended August 31 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.
Comparative Results (Adjusted for Maximum Sales Charge) as of 8/31/08 | |||||
DWS LifeCompass Retirement Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,976 | $10,234 | $12,008 | $13,229 |
Average annual total return | -10.24% | .77% | 3.73% | 2.84% | |
Class B | Growth of $10,000 | $9,179 | $10,430 | $12,169 | $13,045 |
Average annual total return | -8.21% | 1.41% | 4.00% | 2.69% | |
Class C | Growth of $10,000 | $9,457 | $10,638 | $12,289 | $13,053 |
Average annual total return | -5.43% | 2.08% | 4.21% | 2.70% |
The growth of $10,000 is cumulative.
DWS LifeCompass Retirement Fund
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass Retirement Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Russell 1000 Index+ | Growth of $10,000 | $8,940 | $11,201 | $14,294 | $16,624 |
Average annual total return | -10.60% | 3.85% | 7.41% | 5.21% | |
Russell 2000 Index++ | Growth of $10,000 | $9,452 | $11,511 | $15,779 | $24,842 |
Average annual total return | -5.48% | 4.80% | 9.55% | 9.53% | |
Lehman Brothers Intermediate U.S. Aggregate Index+++ | Growth of $10,000 | $10,598 | $11,419 | $12,427 | $17,126 |
Average annual total return | 5.98% | 4.52% | 4.44% | 5.53% |
The growth of $10,000 is cumulative.
+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers Intermediate U.S. Aggregate Index is an unmanaged index that covers the US investment-grade fixed-rate bond market, including government and credit securities, agency mortgage securities, asset backed securities and commercial mortgage backed securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class A Lipper Rankings — Mixed-Asset Target Allocation Conservative Funds Category as of 8/31/08 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 365 | of | 443 | 83 |
3-Year | 152 | of | 299 | 51 |
5-Year | 51 | of | 168 | 31 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, rankings might have been less favorable. Rankings are for Class A shares; other share classes may vary.
DWS LifeCompass Retirement Fund
Class S
Class S shares are generally not available to new investors except under certain circumstances. (Please refer to the Fund's Statement of Additional Information.)
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit www.dws-investments.com for the Fund's most recent month-end performance.
The total annual fund direct operating expense ratio, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 is 0.47% for Class S shares. The total fund direct and estimated indirect Underlying DWS Fund operating expense ratio, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 is 1.01% for Class S shares. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during all periods shown for Class S shares reflect a fee waiver and/or expense reimbursement for DWS LifeCompass Retirement Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Average Annual Total Returns as of 8/31/08 | ||||
DWS LifeCompass Retirement Fund | 1-Year | 3-Year | 5-Year | 10-Year |
Class S | -4.52% | 3.04% | 5.23% | 3.70% |
Russell 1000 Index+ | -10.60% | 3.85% | 7.41% | 5.21% |
Russell 2000 Index++ | -5.48% | 4.80% | 9.55% | 9.53% |
Lehman Brothers Intermediate U.S. Aggregate Index+++ | 5.98% | 4.52% | 4.44% | 5.53% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
DWS LifeCompass Retirement Fund
Net Asset Value and Distribution Information | |
| Class S |
Net Asset Value: 8/31/08 | $ 11.49 |
8/31/07 | $ 12.51 |
Distribution Information: Twelve Months as of 8/31/08:Income Dividends | $ .47 |
Growth of an Assumed $10,000 Investment |
[] DWS LifeCompass Retirement Fund — Class S [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers Intermediate U.S. Aggregate Index+++ |
Yearly periods ended August 31 |
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass Retirement Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Class S | Growth of $10,000 | $9,548 | $10,942 | $12,903 | $14,386 |
Average annual total return | -4.52% | 3.04% | 5.23% | 3.70% |
The growth of $10,000 is cumulative.
DWS LifeCompass Retirement Fund
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass Retirement Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Russell 1000 Index+ | Growth of $10,000 | $8,940 | $11,201 | $14,294 | $16,624 |
Average annual total return | -10.60% | 3.85% | 7.41% | 5.21% | |
Russell 2000 Index++ | Growth of $10,000 | $9,452 | $11,511 | $15,779 | $24,842 |
Average annual total return | -5.48% | 4.80% | 9.55% | 9.53% | |
Lehman Brothers Intermediate U.S. Aggregate Index+++ | Growth of $10,000 | $10,598 | $11,419 | $12,427 | $17,126 |
Average annual total return | 5.98% | 4.52% | 4.44% | 5.53% |
The growth of $10,000 is cumulative.
+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers Intermediate U.S. Aggregate Index is an unmanaged index that covers the US investment-grade fixed-rate bond market, including government and credit securities, agency mortgage securities, asset backed securities and commercial mortgage backed securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class S Lipper Rankings — Mixed-Asset Target Allocation Conservative Funds Category as of 8/31/08 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 358 | of | 443 | 81 |
3-Year | 118 | of | 299 | 40 |
5-Year | 40 | of | 168 | 24 |
10-Year | 58 | of | 70 | 82 |
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.
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-investments.com for the Fund's most recent month-end performance.
The maximum sales charge for Class A shares is 5.75%. For Class B shares, the maximum contingent deferred sales charge (CDSC) is 4% within the first year after purchase, declining to 0% after six years. Class C shares have no front-end sales charge but redemptions within one year of purchase may be subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The total annual fund direct operating expense ratios, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 are 0.62%, 1.36% and 1.31% for Class A, Class B and Class C shares, respectively. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratios, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 are 1.24%, 1.98% and 1.93% for Class A, Class B and Class C shares, respectively. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during all periods shown reflect a fee waiver and/or expense reimbursement for DWS LifeCompass 2015 Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
DWS LifeCompass 2015 Fund
Returns shown for Class A, B and C shares for the periods prior to their inception on December 29, 2000 are derived from the historical performance of Class S shares of the DWS LifeCompass 2015 Fund during such periods and have been adjusted to reflect the higher annual total operating expenses of each specific class. Any difference in expenses will affect performance.
Average Annual Total Returns (Unadjusted for Sales Charge) as of 8/31/08 | ||||
DWS LifeCompass 2015 Fund | 1-Year | 3-Year | 5-Year | 10-Year |
Class A | -7.39% | 2.72% | 5.62% | 3.95% |
Class B | -8.06% | 1.95% | 4.84% | 3.19% |
Class C | -8.12% | 1.94% | 4.86% | 3.19% |
Russell 1000 Index+ | -10.60% | 3.85% | 7.41% | 5.21% |
Russell 2000 Index++ | -5.48% | 4.80% | 9.55% | 9.53% |
Lehman Brothers U.S. Aggregate Index+++ | 5.86% | 4.26% | 4.61% | 5.58% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
Net Asset Value and Distribution Information | |||
| Class A | Class B | Class C |
Net Asset Value: 8/31/08 | $ 11.12 | $ 11.11 | $ 11.10 |
8/31/07 | $ 12.47 | $ 12.47 | $ 12.47 |
Distribution Information: Twelve Months as of 8/31/08:Income Dividends | $ .44 | $ .36 | $ .37 |
DWS LifeCompass 2015 Fund
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] DWS LifeCompass 2015 Fund — Class A [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers U.S. Aggregate Index+++ |
Yearly periods ended August 31 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.
Comparative Results (Adjusted for Maximum Sales Charge) as of 8/31/08 | |||||
DWS LifeCompass 2015 Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,729 | $10,214 | $12,391 | $13,890 |
Average annual total return | -12.71% | .71% | 4.38% | 3.34% | |
Class B | Growth of $10,000 | $8,927 | $10,402 | $12,563 | $13,688 |
Average annual total return | -10.73% | 1.32% | 4.67% | 3.19% | |
Class C | Growth of $10,000 | $9,188 | $10,594 | $12,677 | $13,686 |
Average annual total return | -8.12% | 1.94% | 4.86% | 3.19% |
The growth of $10,000 is cumulative.
DWS LifeCompass 2015 Fund
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass 2015 Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Russell 1000 Index+ | Growth of $10,000 | $8,940 | $11,201 | $14,294 | $16,624 |
Average annual total return | -10.60% | 3.85% | 7.41% | 5.21% | |
Russell 2000 Index++ | Growth of $10,000 | $9,452 | $11,511 | $15,779 | $24,842 |
Average annual total return | -5.48% | 4.80% | 9.55% | 9.53% | |
Lehman Brothers U.S. Aggregate Index+++ | Growth of $10,000 | $10,586 | $11,333 | $12,527 | $17,215 |
Average annual total return | 5.86% | 4.26% | 4.61% | 5.58% |
The growth of $10,000 is cumulative.
+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers U.S. Aggregate Index is an unmanaged, market value-weighted measure of treasury issues, agency issues corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class A Lipper Rankings — Mixed-Asset Target 2015 Funds Category as of 8/31/08 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 67 | of | 105 | 64 |
3-Year | 23 | of | 33 | 68 |
5-Year | 2 | of | 10 | 19 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, rankings might have been less favorable. Rankings are for Class A shares; other share classes may vary.
DWS LifeCompass 2015 Fund
Class S
Class S shares are generally not available to new investors except under certain circumstances. (Please refer to the Fund's Statement of Additional Information.)
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit www.dws-investments.com for the Fund's most recent month-end performance.
The total annual fund direct operating expense ratio, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 is 0.31% for Class S shares. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratio, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 is 0.93% for Class S shares. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during all periods shown for Class S shares reflect a fee waiver and/or expense reimbursement for DWS LifeCompass 2015 Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Average Annual Total Returns as of 8/31/08 | ||||
DWS LifeCompass 2015 Fund | 1-Year | 3-Year | 5-Year | 10-Year |
Class S | -7.10% | 2.94% | 5.89% | 4.20% |
Russell 1000 Index+ | -10.60% | 3.85% | 7.41% | 5.21% |
Russell 2000 Index++ | -5.48% | 4.80% | 9.55% | 9.53% |
Lehman Brothers U.S. Aggregate Index+++ | 5.86% | 4.26% | 4.61% | 5.58% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
DWS LifeCompass 2015 Fund
Net Asset Value and Distribution Information | |
| Class S |
Net Asset Value: 8/31/08 | $ 11.11 |
8/31/07 | $ 12.45 |
Distribution Information: Twelve Months as of 8/31/08:Income Dividends | $ .47 |
Growth of an Assumed $10,000 Investment |
[] DWS LifeCompass 2015 Fund — Class S [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers U.S. Aggregate Index+++ |
Yearly periods ended August 31 |
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass 2015 Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Class S | Growth of $10,000 | $9,290 | $10,908 | $13,310 | $15,084 |
Average annual total return | -7.10% | 2.94% | 5.89% | 4.20% |
The growth of $10,000 is cumulative.
DWS LifeCompass 2015 Fund
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass 2015 Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Russell 1000 Index+ | Growth of $10,000 | $8,940 | $11,201 | $14,294 | $16,624 |
Average annual total return | -10.60% | 3.85% | 7.41% | 5.21% | |
Russell 2000 Index++ | Growth of $10,000 | $9,452 | $11,511 | $15,779 | $24,842 |
Average annual total return | -5.48% | 4.80% | 9.55% | 9.53% | |
Lehman Brothers U.S. Aggregate Index+++ | Growth of $10,000 | $10,586 | $11,333 | $12,527 | $17,215 |
Average annual total return | 5.86% | 4.26% | 4.61% | 5.58% |
The growth of $10,000 is cumulative.
+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers U.S. Aggregate Index is an unmanaged, market value-weighted measure of treasury issues, agency issues, corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class S Lipper Rankings — Mixed-Asset Target 2015 Funds Category as of 8/31/08 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 57 | of | 105 | 54 |
3-Year | 22 | of | 33 | 65 |
5-Year | 1 | of | 10 | 10 |
10-Year | 4 | of | 5 | 67 |
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.
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-investments.com for the Fund's most recent month-end performance.
The maximum sales charge for Class A shares is 5.75%. For Class B shares, the maximum contingent deferred sales charge (CDSC) is 4% within the first year after purchase, declining to 0% after six years. Class C shares have no front-end sales charge but redemptions within one year of purchase may be subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The total annual fund direct operating expense ratios, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 are 0.67%, 1.40% and 1.36% for Class A, Class B and Class C shares, respectively. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratios, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 are 1.28%, 2.01% and 1.97% for Class A, Class B and Class C shares, respectively. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during all periods shown reflect a fee waiver and/or expense reimbursement for DWS LifeCompass 2020 Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
DWS LifeCompass 2020 Fund
Returns shown for Class A, B and C shares for the periods prior to their inception on December 29, 2000 are derived from the historical performance of Class S shares of the DWS LifeCompass 2020 Fund during such periods and have been adjusted to reflect the higher annual total operating expenses of each specific class. Any difference in expenses will affect performance.
Average Annual Total Returns (Unadjusted for Sales Charge) as of 8/31/08 | ||||
DWS LifeCompass 2020 Fund | 1-Year | 3-Year | 5-Year | 10-Year |
Class A | -8.48% | 3.26% | 6.66% | 5.12% |
Class B | -9.15% | 2.51% | 5.86% | 4.34% |
Class C | -9.05% | 2.54% | 5.88% | 4.35% |
Russell 1000 Index+ | -10.60% | 3.85% | 7.41% | 5.21% |
Russell 2000 Index++ | -5.48% | 4.80% | 9.55% | 9.53% |
Lehman Brothers U.S. Aggregate Index+++ | 5.86% | 4.26% | 4.61% | 5.58% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
Net Asset Value and Distribution Information | |||
| Class A | Class B | Class C |
Net Asset Value: 8/31/08 | $ 13.66 | $ 13.53 | $ 13.54 |
8/31/07 | $ 15.47 | $ 15.32 | $ 15.32 |
Distribution Information: Twelve Months as of 8/31/08:Income Dividends | $ .55 | $ .43 | $ .44 |
DWS LifeCompass 2020 Fund
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] DWS LifeCompass 2020 Fund — Class A [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers U.S. Aggregate Index+++ |
Yearly periods ended August 31 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.
Comparative Results (Adjusted for Maximum Sales Charge) as of 8/31/08 | |||||
DWS LifeCompass 2020 Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,626 | $10,377 | $13,010 | $15,527 |
Average annual total return | -13.74% | 1.24% | 5.40% | 4.50% | |
Class B | Growth of $10,000 | $8,820 | $10,571 | $13,197 | $15,295 |
Average annual total return | -11.80% | 1.87% | 5.70% | 4.34% | |
Class C | Growth of $10,000 | $9,095 | $10,783 | $13,308 | $15,308 |
Average annual total return | -9.05% | 2.54% | 5.88% | 4.35% |
The growth of $10,000 is cumulative.
DWS LifeCompass 2020 Fund
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass 2020 Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Russell 1000 Index+ | Growth of $10,000 | $8,940 | $11,201 | $14,294 | $16,624 |
Average annual total return | -10.60% | 3.85% | 7.41% | 5.21% | |
Russell 2000 Index++ | Growth of $10,000 | $9,452 | $11,511 | $15,779 | $24,842 |
Average annual total return | -5.48% | 4.80% | 9.55% | 9.53% | |
Lehman Brothers U.S. Aggregate Index+++ | Growth of $10,000 | $10,586 | $11,333 | $12,527 | $17,215 |
Average annual total return | 5.86% | 4.26% | 4.61% | 5.58% |
The growth of $10,000 is cumulative.
+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers U.S. Aggregate Index is an unmanaged, market value-weighted measure of treasury issues, agency issues, corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class A Lipper Rankings — Mixed-Asset Target 2020 Funds Category as of 8/31/08 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 80 | of | 140 | 57 |
3-Year | 29 | of | 57 | 50 |
5-Year | 13 | of | 28 | 45 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, rankings might have been less favorable. Rankings are for Class A shares; other share classes may vary.
DWS LifeCompass 2020 Fund
Class S
Class S shares are generally not available to new investors except under certain circumstances. (Please refer to the Fund's Statement of Additional Information.)
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit www.dws-investments.com for the Fund's most recent month-end performance.
The total annual fund direct operating expense ratio, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 is 0.48% for Class S shares. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratio, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 is 1.09% for Class S shares. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during all periods shown for Class S shares reflect a fee waiver and/or expense reimbursement for DWS LifeCompass 2020 Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Average Annual Total Returns as of 8/31/08 | ||||
DWS LifeCompass 2020 Fund | 1-Year | 3-Year | 5-Year | 10-Year |
Class S | -8.22% | 3.53% | 6.94% | 5.37% |
Russell 1000 Index+ | -10.60% | 3.85% | 7.41% | 5.21% |
Russell 2000 Index++ | -5.48% | 4.80% | 9.55% | 9.53% |
Lehman Brothers U.S. Aggregate Index+++ | 5.86% | 4.26% | 4.61% | 5.58% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
DWS LifeCompass 2020 Fund
Net Asset Value and Distribution Information | |
| Class S |
Net Asset Value: 8/31/08 | $ 13.69 |
8/31/07 | $ 15.50 |
Distribution Information: Twelve Months as of 8/31/08:Income Dividends | $ .59 |
Growth of an Assumed $10,000 Investment |
[] DWS LifeCompass 2020 Fund — Class S [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers U.S. Aggregate Index+++ |
Yearly periods ended August 31 |
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass 2020 Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Class S | Growth of $10,000 | $9,178 | $11,096 | $13,983 | $16,870 |
Average annual total return | -8.22% | 3.53% | 6.94% | 5.37% |
The growth of $10,000 is cumulative.
DWS LifeCompass 2020 Fund
Comparative Results as of 8/31/08 | |||||
DWS LifeCompass 2020 Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Russell 1000 Index+ | Growth of $10,000 | $8,940 | $11,201 | $14,294 | $16,624 |
Average annual total return | -10.60% | 3.85% | 7.41% | 5.21% | |
Russell 2000 Index++ | Growth of $10,000 | $9,452 | $11,511 | $15,779 | $24,842 |
Average annual total return | -5.48% | 4.80% | 9.55% | 9.53% | |
Lehman Brothers U.S. Aggregate Index+++ | Growth of $10,000 | $10,586 | $11,333 | $12,527 | $17,215 |
Average annual total return | 5.86% | 4.26% | 4.61% | 5.58% |
The growth of $10,000 is cumulative.
+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers U.S. Aggregate Index is an unmanaged, market value-weighted measure of treasury issues, agency issues, corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class S Lipper Rankings — Mixed-Asset Target 2020 Funds Category as of 8/31/08 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 73 | of | 140 | 52 |
3-Year | 21 | of | 57 | 37 |
5-Year | 5 | of | 28 | 18 |
10-Year | 2 | of | 5 | 34 |
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.
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-investments.com for the Fund's most recent month-end performance.
The maximum sales charge for Class A shares is 5.75%. For Class B shares, the maximum contingent deferred sales charge (CDSC) is 4% within the first year after purchase, declining to 0% after six years. Class C shares have no front-end sales charge but redemptions within one year of purchase may be subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The total annual fund direct operating expense ratios, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 are 0.95%, 1.75% and 1.69% for Class A, Class B and Class C shares, respectively. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratios, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 are 1.65%, 2.45% and 2.39% for Class A, Class B and Class C shares, respectively. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during all periods shown reflect a fee waiver and/or expense reimbursement for DWS LifeCompass 2030 Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Average Annual Total Returns (Unadjusted for Sales Charge) as of 8/31/08 | |||
DWS LifeCompass 2030 Fund | 1-Year | 3-Year | Life of Fund* |
Class A | -10.40% | 3.56% | 5.18% |
Class B | -11.09% | 2.73% | 4.38% |
Class C | -11.09% | 2.76% | 4.38% |
Russell 1000 Index+ | -10.60% | 3.85% | 5.95% |
Russell 2000 Index++ | -5.48% | 4.80% | 7.67% |
Lehman Brothers U.S. Aggregate Index+++ | 5.86% | 4.26% | 4.12% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
* The Fund commenced operations on November 1, 2004. Index returns began on October 31, 2004.DWS LifeCompass 2030 Fund
Net Asset Value and Distribution Information | |||
| Class A | Class B | Class C |
Net Asset Value: 8/31/08 | $ 10.26 | $ 10.21 | $ 10.21 |
8/31/07 | $ 12.27 | $ 12.21 | $ 12.21 |
Distribution Information: Twelve Months as of 8/31/08:Income Dividends | $ .38 | $ .28 | $ .28 |
Capital Gain Distributions | $ .45 | $ .45 | $ .45 |
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] DWS LifeCompass 2030 Fund — Class A [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers U.S. Aggregate Index+++ |
|
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.
Comparative Results (Adjusted for Maximum Sales Charge) as of 8/31/08 | ||||
DWS LifeCompass 2030 Fund | 1-Year | 3-Year | Life of Fund* | |
Class A | Growth of $10,000 | $8,445 | $10,466 | $11,433 |
Average annual total return | -15.55% | 1.53% | 3.56% | |
Class B | Growth of $10,000 | $8,640 | $10,651 | $11,583 |
Average annual total return | -13.60% | 2.12% | 3.92% | |
Class C | Growth of $10,000 | $8,891 | $10,851 | $11,784 |
Average annual total return | -11.09% | 2.76% | 4.38% |
The growth of $10,000 is cumulative.
* The Fund commenced operations on November 1, 2004. Index returns began on October 31, 2004.DWS LifeCompass 2030 Fund
Comparative Results as of 8/31/08 |
| |||
DWS LifeCompass 2030 Fund | 1-Year | 3-Year | Life of Fund* | |
Russell 1000 Index+ | Growth of $10,000 | $8,940 | $11,201 | $12,478 |
Average annual total return | -10.60% | 3.85% | 5.95% | |
Russell 2000 Index++ | Growth of $10,000 | $9,452 | $11,511 | $13,273 |
Average annual total return | -5.48% | 4.80% | 7.67% | |
Lehman Brothers U.S. Aggregate Index+++ | Growth of $10,000 | $10,586 | $11,333 | $11,674 |
Average annual total return | 5.86% | 4.26% | 4.12% |
The growth of $10,000 is cumulative.
* The Fund commenced operations on November 1, 2004. Index returns began on October 31, 2004.+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers U.S. Aggregate Index is an unmanaged, market value-weighted measure of treasury issues, agency issues, corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class A Lipper Rankings — Mixed-Asset Target 2030 Funds Category as of 8/31/08 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 77 | of | 137 | 56 |
3-Year | 23 | of | 54 | 42 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, rankings might have been less favorable. Rankings are for Class A shares; other share classes may vary.
DWS LifeCompass 2030 Fund
Class S
Class S shares are generally not available to new investors except under certain circumstances (Please refer to the Fund's Statement of Additional Information.)
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit www.dws-investments.com for the Fund's most recent month-end performance.
The total annual fund direct operating expense ratio, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 is 0.73% for Class S shares. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratio, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 is 1.43% for Class S shares. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during all periods shown reflect a fee waiver and/or expense reimbursement for DWS LifeCompass 2030 Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Average Annual Total Returns as of 8/31/08 | |||
DWS LifeCompass 2030 Fund | 1-Year | 3-Year | Life of Fund* |
Class S | -10.23% | 3.79% | 5.43% |
Russell 1000 Index+ | -10.60% | 3.85% | 5.95% |
Russell 2000 Index++ | -5.48% | 4.80% | 7.67% |
Lehman Brothers U.S. Aggregate Index+++ | 5.86% | 4.26% | 4.12% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
* The Fund commenced operations on November 1, 2004. Index returns began on October 31, 2004.DWS LifeCompass 2030 Fund
Net Asset Value and Distribution Information | |
| Class S |
Net Asset Value: 8/31/08 | $ 10.27 |
8/31/07 | $ 12.29 |
Distribution Information: Twelve Months as of 8/31/08:Income Dividends | $ .41 |
Capital Gain Distributions | $ .45 |
Growth of an Assumed $10,000 Investment |
[] DWS LifeCompass 2030 Fund — Class S [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers U.S. Aggregate Index+++ |
|
Comparative Results as of 8/31/08 | ||||
DWS LifeCompass 2030 Fund | 1-Year | 3-Year | Life of Fund* | |
Class S | Growth of $10,000 | $8,977 | $11,180 | $12,241 |
Average annual total return | -10.23% | 3.79% | 5.43% |
The growth of $10,000 is cumulative.
* The Fund commenced operations on November 1, 2004. Index returns began on October 31, 2004.DWS LifeCompass 2030 Fund
Comparative Results as of 8/31/08 | ||||
DWS LifeCompass 2030 Fund | 1-Year | 3-Year | Life of Fund* | |
Russell 1000 Index+ | Growth of $10,000 | $8,940 | $11,201 | $12,478 |
Average annual total return | -10.60% | 3.85% | 5,95% | |
Russell 2000 Index++ | Growth of $10,000 | $9,452 | $11,511 | $13,273 |
Average annual total return | -5.48% | 4.80% | 7.67% | |
Lehman Brothers U.S. Aggregate Index+++ | Growth of $10,000 | $10,586 | $11,333 | $11,674 |
Average annual total return | 5.86% | 4.26% | 4.12% |
The growth of $10,000 is cumulative.
* The Fund commenced operations on November 1, 2004. Index returns began on October 31, 2004.+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers U.S. Aggregate Index is an unmanaged, market value-weighted measure of treasury issues, agency issues, corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class S Lipper Rankings — Mixed-Asset Target 2030 Funds Category as of 8/31/08 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 70 | of | 137 | 51 |
3-Year | 15 | of | 54 | 28 |
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.
Classes A 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-investments.com for the Fund's most recent month-end performance.
The maximum sales charge for Class A shares is 5.75%. Class C shares have no front-end sales charge but redemptions within one year of purchase may be subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The total annual fund direct operating expense ratios, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 are 0.99% and 1.74% for Class A and Class C shares, respectively. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratios, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 are 1.69% and 2.44% for Class A and Class C shares, respectively. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during the period shown reflect a fee waiver and/or expense reimbursement for DWS LifeCompass 2040 Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Cumulative Total Returns (Unadjusted for Sales Charge) as of 8/31/08 | |
DWS LifeCompass 2040 Fund | Life of Fund* |
Class A | -9.24% |
Class C | -9.54% |
Russell 1000 Index+ | -11.60% |
Russell 2000 Index++ | -2.68% |
Lehman Brothers U.S. Aggregate Index+++ | 2.29% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
* The Fund commenced operations on November 15, 2007. Index returns began on November 30, 2007.DWS LifeCompass 2040 Fund
Net Asset Value and Distribution Information | ||
| Class A | Class C |
Net Asset Value: 8/31/08 | $ 8.77 | $ 8.73 |
11/15/07 (commencement of operations) | $ 10.00 | $ 10.00 |
Distribution Information: 11/15/07 (commencement of operations) to 8/31/08:Income Dividends | $ .33 | $ .32 |
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] DWS LifeCompass 2040 Fund — Class A [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers U.S. Aggregate Index+++ |
|
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.
Comparative Results (Adjusted for Maximum Sales Charge) as of 8/31/08 | ||
DWS LifeCompass 2040 Fund | Life of Fund* | |
Class A | Growth of $10,000 | $8,554 |
Average annual total return | -14.46% | |
Class C | Growth of $10,000 | $8,958 |
Average annual total return | -10.42% |
The growth of $10,000 is cumulative.
* The Fund commenced operations on November 15, 2007. Index returns began on November 30, 2007.DWS LifeCompass 2040 Fund
Comparative Results as of 8/31/08 | ||
DWS LifeCompass 2040 Fund | Life of Fund* | |
Russell 1000 Index+ | Growth of $10,000 | $8,840 |
Average annual total return | -11.60% | |
Russell 2000 Index++ | Growth of $10,000 | $9,732 |
Average annual total return | -2.68% | |
Lehman Brothers U.S. Aggregate Index+++ | Growth of $10,000 | $10,229 |
Average annual total return | 2.29% |
The growth of $10,000 is cumulative.
* The Fund commenced operations on November 15, 2007. Index returns began on November 30, 2007.+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers U.S. Aggregate Index is an unmanaged, market value-weighted measure of treasury issues, agency issues, corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
DWS LifeCompass 2040 Fund
Class S
Class S shares are generally not available to new investors except under certain circumstances (Please refer to the Fund's Statement of Additional Information.)
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit www.dws-investments.com for the Fund's most recent month-end performance.
The total annual fund direct operating expense ratio, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated November 15, 2007 is 0.75% for Class S shares. The total annual fund direct and estimated indirect Underlying DWS Fund operating expense ratio, gross of any fee waivers or expense reimbursements, as presented in the fee table of the prospectus dated November 15, 2007 is 1.45% for Class S shares. Please see the Information About Each Fund's Expenses, the Financial Highlights and Notes to the Financial Statements (Note B, Related Parties) sections of this report for gross and net expense related disclosure for the period ended August 31, 2008.
Returns and rankings during the period shown reflect a fee waiver and/or expense reimbursement for DWS LifeCompass 2040 Fund as well as for some Underlying DWS Funds. Without these waivers/reimbursements, returns and rankings would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Cumulative Total Returns as of 8/31/08 | |
DWS LifeCompass 2040 Fund | Life of Fund* |
Class S | -9.11% |
Russell 1000 Index+ | -11.60% |
Russell 2000 Index++ | -2.68% |
Lehman Brothers U.S. Aggregate Index++ | 2.29% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
* The Fund commenced operations on November 15, 2007. Index returns began on November 30, 2007.Net Asset Value and Distribution Information | |
| Class S |
Net Asset Value: 8/31/08 | $ 8.79 |
11/15/07 (commencement of operations) | $ 10.00 |
Distribution Information: 11/15/07 (commencement of operations) to 8/31/08:Income Dividends | $ .33 |
DWS LifeCompass 2040 Fund
Growth of an Assumed $10,000 Investment |
[] DWS LifeCompass 2040 Fund — Class S [] Russell 1000 Index+ [] Russell 2000 Index++ [] Lehman Brothers U.S. Aggregate Index+++ |
|
Comparative Results as of 8/31/08 | ||
DWS LifeCompass 2040 Fund | Life of Fund* | |
Class S | Growth of $10,000 | $9,089 |
Average annual total return | -9.11% | |
Russell 1000 Index+ | Growth of $10,000 | $8,840 |
Average annual total return | -11.60% | |
Russell 2000 Index++ | Growth of $10,000 | $9,732 |
Average annual total return | -2.68% | |
Lehman Brothers U.S. Aggregate Index+++ | Growth of $10,000 | $10,229 |
Average annual total return | 2.29% |
The growth of $10,000 is cumulative.
* The Fund commenced operations on November 15, 2007. Index returns began on November 30, 2007.+ The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
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 Lehman Brothers U.S. Aggregate Index is an unmanaged, market value-weighted measure of treasury issues, agency issues, corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.
Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Information About Each Fund's Expenses
As an investor of the Funds, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads), redemption fees and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In addition to the ongoing expenses which the Fund bears directly, the Fund's shareholders indirectly bear the expenses of the Underlying DWS Funds in which the Fund invests. The Fund's estimated indirect expense from investing in the Underlying DWS Funds is based on the expense ratios from the Underlying DWS Fund's most recent shareholder report. In the most recent six-month period, DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund limited these expenses; had they not done so, expenses would have been higher. In addition, certain of the Underlying DWS Funds limited expenses; had they not done so, expenses would have been higher. The examples in the tables are based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2008 to August 31, 2008).
The tables illustrate your Fund's expenses in two ways:
• Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.
• Hypothetical 5% Fund Return. This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. An account maintenance fee of $6.25 per quarter for Class S shares may apply for certain accounts whose balances do not meet the applicable minimum initial investment. This fee is not included in these tables. If it was, the estimate of expenses paid for Class S shares during the period would be higher, and account value during the period would be lower, by this amount.
DWS LifeCompass Retirement Fund
Direct Fund Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 972.60 | $ 969.00 | $ 969.20 | $ 973.90 |
Expenses Paid per $1,000* | $ 2.58 | $ 6.34 | $ 6.29 | $ 1.34 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,022.52 | $ 1,018.70 | $ 1,018.75 | $ 1,023.78 |
Expenses Paid per $1,000* | $ 2.64 | $ 6.50 | $ 6.44 | $ 1.37 |
Direct Fund Expenses and Acquired Funds (Underlying Funds) Fees and Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 972.60 | $ 969.00 | $ 969.20 | $ 973.90 |
Expenses Paid per $1,000** | $ 5.60 | $ 9.35 | $ 9.31 | $ 4.37 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,019.46 | $ 1,015.63 | $ 1,015.69 | $ 1,020.71 |
Expenses Paid per $1,000** | $ 5.74 | $ 9.58 | $ 9.53 | $ 4.47 |
** Expenses are equal to the Fund's annualized expense ratio for each class plus the Acquired Funds (Underlying Funds) Fees and Expenses, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 366.
Annualized Expense Ratios | Class A | Class B | Class C | Class S |
Direct Fund Expense Ratios | .52% | 1.28% | 1.27% | .27% |
Acquired Funds (Underlying Funds) Fees and Expenses | .61% | .61% | .61% | .61% |
Net Annual Fund and Acquired Funds (Underlying Funds) Operating Expenses | 1.13% | 1.89% | 1.88% | .88% |
For more information, please refer to the Fund's prospectus.
DWS LifeCompass 2015 Fund
Direct Fund Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 964.80 | $ 961.90 | $ 961.10 | $ 966.70 |
Expenses Paid per $1,000* | $ 2.37 | $ 6.07 | $ 6.06 | $ 1.14 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,022.72 | $ 1,018.95 | $ 1,018.95 | $ 1,023.98 |
Expenses Paid per $1,000* | $ 2.44 | $ 6.24 | $ 6.24 | $ 1.17 |
Direct Fund Expenses and Acquired Funds (Underlying Funds) Fees and Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 964.80 | $ 961.90 | $ 961.10 | $ 966.70 |
Expenses Paid per $1,000** | $ 5.38 | $ 9.07 | $ 9.07 | $ 4.15 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,019.66 | $ 1,015.89 | $ 1,015.89 | $ 1,020.91 |
Expenses Paid per $1,000** | $ 5.53 | $ 9.32 | $ 9.32 | $ 4.27 |
** Expenses are equal to the Fund's annualized expense ratio for each class plus the Acquired Funds (Underlying Funds) Fees and Expenses, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 366.
Annualized Expense Ratios | Class A | Class B | Class C | Class S |
Direct Fund Expense Ratios | .48% | 1.23% | 1.23% | .23% |
Acquired Funds (Underlying Funds) Fees and Expenses | .61% | .61% | .61% | .61% |
Net Annual Fund and Acquired Funds (Underlying Funds) Operating Expenses | 1.09% | 1.84% | 1.84% | .84% |
For more information, please refer to the Fund's prospectus.
DWS LifeCompass 2020 Fund
Direct Fund Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 963.30 | $ 960.30 | $ 960.30 | $ 964.80 |
Expenses Paid per $1,000* | $ 2.42 | $ 6.11 | $ 6.11 | $ 1.19 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,022.67 | $ 1,018.90 | $ 1,018.90 | $ 1,023.93 |
Expenses Paid per $1,000* | $ 2.49 | $ 6.29 | $ 6.29 | $ 1.22 |
Direct Fund Expenses and Acquired Funds (Underlying Funds) Fees and Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 963.30 | $ 960.30 | $ 960.30 | $ 964.80 |
Expenses Paid per $1,000** | $ 5.43 | $ 9.12 | $ 9.12 | $ 4.20 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,019.61 | $ 1,015.84 | $ 1,015.84 | $ 1,020.86 |
Expenses Paid per $1,000** | $ 5.58 | $ 9.37 | $ 9.37 | $ 4.32 |
** Expenses are equal to the Fund's annualized expense ratio for each class plus the Acquired Funds (Underlying Funds) Fees and Expenses, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 366.
Annualized Expense Ratios | Class A | Class B | Class C | Class S |
Direct Fund Expense Ratios | .49% | 1.24% | 1.24% | .24% |
Acquired Funds (Underlying Funds) Fees and Expenses | .61% | .61% | .61% | .61% |
Net Annual Fund and Acquired Funds (Underlying Funds) Operating Expenses | 1.10% | 1.85% | 1.85% | .85% |
For more information, please refer to the Fund's prospectus.
DWS LifeCompass 2030 Fund
Direct Fund Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 960.70 | $ 956.90 | $ 956.90 | $ 961.60 |
Expenses Paid per $1,000* | $ 2.22 | $ 5.90 | $ 5.90 | $ .99 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,022.87 | $ 1,019.10 | $ 1,019.10 | $ 1,024.13 |
Expenses Paid per $1,000* | $ 2.29 | $ 6.09 | $ 6.09 | $ 1.02 |
Direct Fund Expenses and Acquired Funds (Underlying Funds) Fees and Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 960.70 | $ 956.90 | $ 956.90 | $ 961.60 |
Expenses Paid per $1,000** | $ 5.42 | $ 9.10 | $ 9.10 | $ 4.19 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,019.61 | $ 1,015.84 | $ 1,015.84 | $ 1,020.86 |
Expenses Paid per $1,000** | $ 5.58 | $ 9.37 | $ 9.37 | $ 4.32 |
** Expenses are equal to the Fund's annualized expense ratio for each class plus the Acquired Funds (Underlying Funds) Fees and Expenses, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 366.
Annualized Expense Ratios | Class A | Class B | Class C | Class S |
Direct Fund Expense Ratios | .45% | 1.20% | 1.20% | .20% |
Acquired Funds (Underlying Funds) Fees and Expenses | .65% | .65% | .65% | .65% |
Net Annual Fund and Acquired Funds (Underlying Funds) Operating Expenses | 1.10% | 1.85% | 1.85% | .85% |
For more information, please refer to the Fund's prospectus.
DWS LifeCompass 2040 Fund
Direct Fund Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | |||
Actual Fund Return | Class A | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 971.20 | $ 969.00 | $ 971.30 |
Expenses Paid per $1,000* | $ 2.43 | $ 6.14 | $ 1.19 |
Hypothetical 5% Fund Return | Class A | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,022.67 | $ 1,018.90 | $ 1,023.93 |
Expenses Paid per $1,000* | $ 2.49 | $ 6.29 | $ 1.22 |
Direct Fund Expenses and Acquired Funds (Underlying Funds) Fees and Expenses and Value of a $1,000 Investment for the six months ended August 31, 2008 | |||
Actual Fund Return | Class A | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 971.20 | $ 969.00 | $ 971.30 |
Expenses Paid per $1,000** | $ 5.75 | $ 9.45 | $ 4.51 |
Hypothetical 5% Fund Return | Class A | Class C | Class S |
Beginning Account Value 3/1/08 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/08 | $ 1,019.30 | $ 1,015.53 | $ 1,020.56 |
Expenses Paid per $1,000** | $ 5.89 | $ 9.68 | $ 4.62 |
** Expenses are equal to the Fund's annualized expense ratio for each class plus the Acquired Funds (Underlying Funds) Fees and Expenses, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 366.
Annualized Expense Ratios | Class A | Class C | Class S |
Direct Fund Expense Ratios | .49% | 1.24% | .24% |
Acquired Funds (Underlying Funds) Fees and Expenses | .67% | .67% | .67% |
Net Annual Fund and Acquired Funds (Underlying Funds) Operating Expenses | 1.16% | 1.91% | .91% |
For more information, please refer to the Fund's prospectus.
DWS Target Date Series: A Team Approach to Investing
Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is part of Deutsche Asset Management, is the investment advisor for DWS Target Date Series. DIMA and its predecessors have more than 80 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to institutional and retail clients.
Deutsche Asset Management is a global asset management organization that offers a wide range of investing expertise and resources. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles.
DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution that is engaged in a wide range of financial services, including investment management, mutual funds, retail, private and commercial banking, investment banking and insurance.
Portfolio Management Team
Inna Okounkova
Director of Deutsche Asset Management and Portfolio Manager of the funds.
• Joined Deutsche Asset Management in 1999 as a quantitative analyst, becoming an associate portfolio manager in 2001.
• Lead Portfolio Manager for Asset Allocation Strategies: New York. Global Asset Allocation Portfolio Manager: New York.
• Joined the funds in 2002.
• BS, MS, Moscow State University; MBA, University of Chicago
Robert Wang
Managing Director of Deutsche Asset Management and Portfolio Manager of the funds.
• Joined Deutsche Asset Management in 1995 as portfolio manager for asset allocation after 13 years of experience of trading fixed income, foreign exchange and derivative products at J.P. Morgan.
• Global Head of Quantitative Strategies Portfolio Management: New York.
• Joined the funds in 2002.
• BS, The Wharton School, University of Pennsylvania.
In the following interview, the portfolio management team discusses market conditions, portfolio management strategy and the resulting performance of DWS LifeCompass Funds during the 12 months ended August 31, 2008.
The views expressed in the following discussion reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team's views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results.
Q: How would you characterize the market environment over the last 12 months?
A: This was a period of considerable economic uncertainty and significant turmoil throughout the capital markets. By early 2008, what began as a correction in the subprime housing market had accelerated into the worst financial crisis in decades, with profound implications for the entire US economy and related effects on global markets and economies. Financial markets became quite risk-averse, as demonstrated by wider credit spreads, severe dislocation in short-term credit markets and a highly volatile equity market.1 As 2008 progressed, US markets were faced with additional bad news, including capital and liquidity problems experienced by major financial institutions, increased concern about rising prices for energy and food, higher unemployment and the possibility of a recession.
1 Credit spreads are the additional yield provided by non-Treasury fixed-income securities versus Treasury securities of comparable duration.In this challenging economic environment, most US equity indices posted negative returns for the 12 months ended August 31, 2008. The Russell 3000® Index, which is generally regarded as a good indicator of the broad stock market, posted a negative return of 10.22% for the period.2 The large-cap Russell 1000® Index posted a return of -10.60% for the 12-month period, while the small-cap Russell 2000® Index returned -5.48%.3 Growth stocks generally performed better than value stocks: the return of the Russell 1000® Growth Index was -6.77%, compared with -14.66% for the Russell 1000® Value Index.4
2 The Russell 3000 Index measures the performance of the 3,000 largest US companies based on total market capitalization, which represents approximately 98% of the investable US equity market. 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.3 The Russell 1000 Index is an unmanaged index that 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 Russell 2000 Index is an unmanaged index that 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.
4 The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values, while the Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
Performance of equity markets around the world varied, but nearly all were down. The return of the MSCI Europe, Australasia and Far East (EAFE) Index, which measures performance of a broad range of international markets, was -14.41%.5 Even the previously robust emerging markets declined; the return of the MSCI Emerging Market Index was -10.09% for the period.6
5 The MSCI EAFE (Morgan Stanley Capital International Europe, Australasia and Far East Index) is composed of approximately 1,100 companies in 20 countries in Europe and the Pacific Basin. The objective of the index is to reflect the movements of stock markets in these countries by representing an unmanaged (indexed) portfolio within each country. The index is calculated in US dollars and is constructed to represent about 60% of market capitalization in each country.6 The Morgan Stanley Capital International (MSCI) Emerging Markets Index is an unmanaged capitalization-weighted index of companies in a universe of 26 emerging markets. The index is calculated using closing local market prices and translates into US dollars using the London close foreign exchange rates.
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 major theme in the bond market over the past year has been that bonds with the highest credit ratings, especially US Treasury bonds, which are assumed to carry no credit risk, have outperformed lower-rated bonds. The return of the Lehman Brothers U.S. Treasury Index, which measures performance of US Treasury bonds, was 8.65% for the 12 months ended August 31, 2008, compared with a return of 5.86% for the Lehman Brothers U.S. Aggregate Index, which measures performance of the overall bond market.7 Credit spreads (the difference between Treasury securities and bonds that carry credit risk) have been at or near historically wide levels through most of the period, and bonds with below-investment-grade credit ratings generally performed poorly, as investors shied away from risk. Return of the Credit Suisse High Yield Index was -1.07%.8
7 The Lehman Brothers U.S. Treasury Index is an unmanaged index of public obligations of the US Treasury. The Lehman Brothers U.S. Aggregate Index is an unmanaged, market-value-weighted measure of treasury issues, agency issues, corporate bond issues and mortgage securities. Barclays Capital completed an acquisition of Lehman Brothers' North American Investment Banking and Capital Markets businesses. As part of the transaction, Lehman Brothers indices have become part of Barclays Capital.8 Credit Suisse (CS) High Yield Index is an unmanaged, unleveraged, trader-priced portfolio constructed to mirror the global high-yield debt market.
Index returns, unlike fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Q: Will you describe the transition to the DWS LifeCompass Funds from the DWS Allocation Funds?
A: In November 2007 the four target risk funds known as the DWS Allocation Funds were converted into target date funds now known as DWS LifeCompass Target Date Funds, and a new fund was created. Name changes and changes in asset allocation targets made in the course of this transition are summarized in the following table.
DWS Allocation Funds | Equity/Fixed Income Allocation |
| DWS LifeCompass Target Date Funds | Equity/Fixed Income Allocation* |
DWS Conservative Allocation Fund | 40% Equity/ 60% Fixed Income | -> | DWS LifeCompass Retirement Fund | 35% Equity/ 65% Fixed Income |
DWS Moderate Allocation Fund | 60% Equity/ 40% Fixed Income | -> | DWS LifeCompass 2015 Fund | 60% Equity/ 40% Fixed Income |
DWS Growth Allocation Fund | 75% Equity/ 25% Fixed Income | -> | DWS LifeCompass 2020 Fund | 70% Equity/ 30% Fixed Income |
DWS Growth Plus Allocation Fund | 100% Equity | -> | DWS LifeCompass 2030 Fund | 90% Equity/ 10% Fixed Income |
New Fund Launch | -> | DWS LifeCompass 2040 Fund | 95% Equity/ 5% Fixed Income | |
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As outlined in the table, several of these funds were changed to more conservative investment mixes. To meet the needs of investors who are still many years from retirement, we launched the new DWS LifeCompass 2040 Fund, which is targeted to be 95% equity. Over time, as the target date for each fund approaches, we expect that allocations will be changed to a greater percentage of fixed income, balanced by a lower percentage of equity.
Other changes included a reduction in the value bias in both large-cap and small-cap equities, an increased allocation to international equities and a reduced cash allocation in all funds.
We believe that these changes provide investors with a broader range of well-defined choices to meet their needs throughout their investing lifetime.
Q: What is the investment process for the DWS LifeCompass Funds?
A: Our strategy for managing the fund-of-funds portfolios and evaluating their performance consists of three components: strategic asset allocation, tactical asset allocation and allocation to the underlying funds.
The first component, strategic asset allocation (SAA), has the largest influence on performance. We review strategic asset allocation at least once a year, using a proprietary methodology to find optimal allocations with the appropriate time horizon for each of the five funds — DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund.
During the 12-month period ending August 31, 2008, there were three different strategic allocations in place. The first strategic allocation was in place during September and October before the transition from the DWS Allocation Funds. The new DWS LifeCompass strategic allocations outlined in the previous table were in place from November 2007 through June 2008.
In July 2008 we updated the strategic asset allocation for each of the funds as part of the annual review. We maintained the overall breakdown between equities and fixed income for each of the funds at the levels outlined in the previous table. Within equities and fixed income, we made the following changes:
• increased the allocation to international equities
• established an allocation to international small-cap equities
• eliminated the value bias within US large-cap equities
• maintained or increased the value bias within small-cap equities
• established or increased the allocation to international developed and emerging-market bonds
• increased the allocation to US high-yield bonds
• reduced the allocation to Treasury Inflation-Protected Securities, known as TIPs, which are US Treasury securities that provide protection against inflation
• reduced or eliminated the allocation to commodities
It is too early to evaluate the impact of the changes on performance, as we implemented the changes only during the last two months of the reporting period.
The second component of our investment process is tactical asset allocation (TAA), which is implemented as underweight or overweight of a particular asset class relative to its longer-term SAA target.9 TAAs are updated every month using both fundamental analysis and quantitative models.10 The TAA views are combined and adjusted to appropriate risk levels to specify a tactical asset allocation for each of the five portfolios.
9 "Overweight" means the fund holds a higher weighting in a given security, sector or investment category than the benchmark. "Underweight" means the fund holds a lower weighting.10 Fundamental analysis is the use of all available information about a possible investment, such as earnings growth, management capability, industry trends, and a company's financial strength and quantitative measures, to determine value. Quantitative models use mathematical and statistical analysis to evaluate investments in a rigorous, risk-controlled fashion.
With the addition of ETFs to the investment universe for the funds, we were able to significantly increase the number of potential tactical asset allocation decisions. The new TAA includes decisions regarding exposure to individual countries, coupled with the respective currency views and decisions regarding industry group exposure that have been implemented within the US large-cap portion of the portfolios.
The final element of the process is fund allocation. This involves much more than simply selecting funds by style based on strategic and tactical asset allocation. Each month we analyze the holdings in each fund, measuring exposure to factors such as specific industries, beta, size and style.11 Our goal is to identify combinations of funds that help implement our targeted asset allocations, capturing the ability of the fund managers to select the best stocks, while neutralizing unintended factor bets.
11 Beta is a measurement of risk relative to the market as a whole.In addition to the changes described above, we made several significant changes to the underlying funds. The funds' board of directors approved investing in Exchange Traded Funds (ETFs) in addition to the DWS mutual funds, and we added 22 ETFs to the underlying fund universe. ETFs are investment vehicles traded on stock exchanges, much like stocks; most ETFs are designed to track a specific index, providing a low-cost way to gain access to a specific market segment. Also we added DWS US Bond Index Fund to achieve a greater manager diversification in the intermediate investment-grade bond space.
Q: How do you evaluate the performance of the funds, and how did they perform over the last year?
A: Since there are no published indices that accurately reflect the asset mixes of these funds, we evaluate performance mainly by comparing the performance of our funds with that of similar funds, using categories defined and published by Lipper. These peer groups are:
• Mixed-Asset Target Allocation Conservative Funds for DWS LifeCompass Retirement
• Mixed-Asset Target 2015 Funds for DWS LifeCompass 2015
• Mixed-Asset Target 2020 Funds for DWS LifeCompass 2020
• Mixed-Asset Target 2030 Funds for DWS LifeCompass 2030
• Mixed-Asset Target 2040 Funds for DWS LifeCompass 204012
12 The Lipper Mixed-Asset Target Allocation Conservative Funds category consists of funds that maintain a mix of between 20%-40% equity securities, with the remainder invested in bonds, cash cash equivalents. The Lipper Mixed-Asset Target 2015 Funds category consists of funds that seek to maximize assets for retirement or other purposes with an expected time horizon not to exceed the year 2015. The Lipper Mixed-Asset Target 2020 Funds category consists of funds that seek to maximize assets for retirement or other purposes with an expected time horizon not to exceed the year 2020. The Lipper Mixed-Asset Target 2030 Funds category consists of funds that seek to maximize assets for retirement or other purposes with an expected time horizon not to exceed the year 2030. The Lipper Mixed-Asset Target 2040 Funds category consists of funds that seek to maximize assets for retirement or other purposes with an expected time horizon not to exceed the year 2040. Category returns assume reinvestment of dividends. It is not possible to invest directly into a Lipper category.For the fiscal year ended August 31, 2008, all of the four funds for which we have results for the full 12-month period underperformed the average return of their peer groups. The new DWS LifeCompass 2040 Fund outperformed its peer group for the period it was in operation. Our strategic asset allocation contributed to performance, while tactical allocation detracted. Underlying fund performance had a significantly negative impact on the results of all the funds, with the exception of DWS LifeCompass 2040 fund.
Strategic asset allocation added considerable value, outperforming the median of peer funds. A reduction of the strategic allocation to equities in three of the funds contributed to performance, as equities were down during the period. Tactical asset allocation detracted slightly from performance, with asset class and geographic concentration and industry group decisions having a negative impact.
Q: How did the underlying funds perform over the last 12 months?
A: The portfolios have the potential to invest in approximately 50 different funds, providing exposure to all categories of US equities, international equities, commodities and a variety of fixed-income securities. The performance of each fund is compared with returns of indices of securities in the appropriate asset classes. Since these indices represent broad asset classes in which the managers of the DWS LifeCompass Funds invest, they serve mainly as points of comparison for returns of asset classes within the portfolios (such as US equities or intermediate-term bonds), but they are not necessarily benchmarks against which the underlying funds are managed.
For the 12 months ending August 31, 2008, most of the underlying funds, particularly bond funds, underperformed their benchmark indices. DWS Core Fixed Income Fund significantly underperformed its benchmark index, as did the other bond funds, with the exception of DWS US Bond Index Fund, which is designed to match the performance of the Lehman Brothers U.S. Aggregate Index.
Most of the underlying equity funds also detracted from performance. However, both DWS Large Cap Value Fund and DWS Large Company Growth Fund performed better than their benchmarks, contributing to relative performance.
Q: Do you have other comments for shareholders?
A: The last year has been an extraordinarily difficult period for investors in both equity and bond markets, as reflected in the negative returns of the funds. While it is always disappointing to report negative returns, we continue to believe that a rigorous approach to strategic and tactical asset allocation, combined with diligent risk management, offers investors the potential for superior risk-adjusted returns over time. We take a disciplined approach to adjusting allocations on a regular basis, while attempting to avoid excessive transaction costs. We believe that the investment processes we use, combining in-depth research with long-term forecasting, have the potential to add significant value.
The DWS LifeCompass Funds are structured to meet the needs of investors with a wide range of time horizons. With five funds in the series, this group of funds may be appropriate for a variety of investors, ranging from those who are retired and in need of current income to those with many years to invest for the future. For many investors, disciplined asset allocation funds such as these offer the potential to take advantage of a wide range of investment opportunities.
We believe that ours is a much more forward-looking approach to asset allocation than the methods used by competing funds. As markets continue to evolve, we will review these strategic allocations annually and alter the asset mix as we deem appropriate and in the best interest of investors in these DWS LifeCompass Funds.
DWS LifeCompass Retirement Fund
DWS LifeCompass Retirement Fund seeks current income and, as a secondary objective, long-term growth of capital. The fund is designed for investors who are already in retirement or who plan to retire or begin withdrawing portions of their investments in the near future. The fund pursues its investment objective by investing in other DWS mutual funds. The fund may also invest in securities of Exchange Traded Funds ("ETFs") when the desired economic exposure to a particular market or sector is not available through a DWS fund.
The portfolio's target allocation is 35% equity funds and 65% fixed-income funds. While the actual asset allocation may vary, the managers expect that over the long term the average allocation will be similar to the target asset allocation.
Performance
DWS LifeCompass Retirement Fund provided a total return of - -4.76% (Class A shares) for the 12-month period ended August 31, 2008. (Returns are unadjusted for sales charges. If sales charges had been included, returns would have been lower. Past performance is no guarantee of future results. Please see pages 4 through 10 for the performance of other share classes and for more complete performance information.) The portfolio underperformed the -2.50% average total return of its peers in the Lipper Mixed-Asset Target Allocation Conservative Funds category.
Fund Strategy
A strategic allocation change from 40% equity to 35% equity was positive for performance, since most equity indices had negative returns for the 12-month period. Tactical asset allocation detracted slightly from performance, with asset class, geographic concentration and industry group decisions having a negative impact. In the fixed-income portion of the portfolio, underperformance by the DWS bond funds detracted from performance.
DWS LifeCompass 2015 Fund
DWS LifeCompass 2015 Fund seeks to achieve as high total return as is consistent with its asset allocation until the target year. As the fund approaches its target year, the fund will decrease its emphasis on growth of capital and increase its emphasis on current income. The fund is designed for investors seeking to meet their respective investment goals, such as retirement, around the year 2015. The fund pursues its investment objective by investing in other DWS mutual funds. The fund may also invest in securities of Exchange Traded Funds ("ETFs") when the economic exposure to a particular market or sector is not available through a DWS fund.
Performance
DWS LifeCompass 2015 Fund provided a total return of -7.39% (Class A shares) for the 12-month period ended August 31, 2008. (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 11 through 17 for the performance of other share classes and for more complete performance information.) The portfolio underperformed the -6.35% average total return of its peers in the Lipper Mixed-Asset Target 2015 Funds category.
Fund Strategy
Strategic asset allocation added value, outperforming the median of peer funds, while tactical asset allocation detracted slightly from performance, with asset class, geographic concentration and industry group decisions having a negative impact. In the fixed-income portion of the portfolio, underperformance by the DWS bond funds detracted from performance. Most of the underlying equity funds also detracted from performance; however, the large-cap equity portion of the portfolio performed better than its benchmarks, contributing to relative performance.
DWS LifeCompass 2020 Fund
DWS LifeCompass 2020 Fund seeks to achieve as high total return as is consistent with its asset allocation until the target year. As the fund approaches its target year, the fund will decrease its emphasis on growth of capital and increase its emphasis on current income. The fund is designed for investors seeking to meet their respective investment goals, such as retirement, around the year 2020. The fund pursues its investment objective by investing in other DWS mutual funds. The fund may also invest in securities of Exchange Traded Funds ("ETFs") when the economic exposure to a particular market or sector is not available through a DWS fund.
Performance
DWS LifeCompass 2020 Fund provided a total return of -8.48% (Class A shares) for the 12-month period ended August 31, 2008. (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 18 through 24 for the performance of other share classes and for more complete performance information.) The portfolio underperformed the -7.78% average total return of its peers in the Lipper Mixed-Asset Target 2020 Funds category.
Fund Strategy
A strategic allocation change from 75% equity to 70% equity was positive for performance, since most equity indices had negative returns for the 12-month period. Tactical asset allocation detracted slightly from performance, with asset class, geographic concentration and industry group decisions having a negative impact. In the fixed-income portion of the portfolio, underperformance by the DWS bond funds detracted from performance. Most of the underlying equity funds also detracted from performance; however, the large-cap equity portion of the portfolio performed better than its benchmarks, contributing to relative performance.
DWS LifeCompass 2030 Fund
DWS LifeCompass 2030 Fund seeks to achieve as high total return as is consistent with its asset allocation until the target year. As the fund approaches its target year, the fund will decrease its emphasis on growth of capital and increase its emphasis on current income. The fund is designed for investors seeking to meet their respective investment goals, such as retirement, around the year 2030. The fund pursues its investment objective by investing in other DWS mutual funds. The fund may also invest in securities of Exchange Traded Funds ("ETFs") when the economic exposure to a particular market or sector is not available through a DWS fund.
Performance
DWS LifeCompass 2030 Fund provided a total return of -10.40% (Class A shares) for the 12-month period ended August 31, 2008. (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 25 through 29 for the performance of other share classes and for more complete performance information.) The portfolio underperformed the -9.85% average total return of its peers in the Lipper Mixed-Asset Target 2030 Funds category.
Fund Strategy
A strategic allocation change from 100% equity to 90% equity was positive for performance, since most equity indices had negative returns for the 12-month period. Tactical asset allocation detracted slightly from performance, with asset class, geographic concentration and industry group decisions having a negative impact. In the fixed-income portion of the portfolio, underperformance by the DWS bond funds detracted from performance. Most of the underlying equity funds also detracted from performance; however, the large-cap equity portion of the portfolio performed better than its benchmarks, contributing to relative performance.
DWS LifeCompass 2040 Fund
DWS LifeCompass 2040 Fund seeks to achieve as high total return as is consistent with its asset allocation until the target year. As the fund approaches its target year, the fund will decrease its emphasis on growth of capital and increase its emphasis on current income. The fund is designed for investors seeking to meet their respective investment goals, such as retirement, around the year 2040. The fund pursues its investment objective by investing in other DWS mutual funds. The fund may also invest in securities of Exchange Traded Funds ("ETFs") when the economic exposure to a particular market or sector is not available through a DWS fund.
Performance
DWS LifeCompass 2040 Fund provided a total return of -9.24% (Class A shares) for the period from the fund's inception date of November 15, 2007, through August 31, 2008. (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 31 through 35 for the performance of other share classes and for more complete performance information.)
Fund Strategy
This new fund has a target allocation of 95% equity and 5% fixed income. Strategic asset allocation added considerable value, outperforming the median of peer funds. Tactical asset allocation detracted slightly from performance, with asset class, geographic concentration and industry group decisions having a negative impact. Most of the underlying funds also detracted from performance; however, the large-cap equity portion of the portfolio performed better than its benchmarks, contributing to relative performance.
DWS LifeCompass Retirement Fund
Asset Allocation | 8/31/08 | 8/31/07 |
|
|
|
Fixed Income — Money Market | 2% | 13% |
Fixed Income — Bonds | 62% | 46% |
Equity | 35% | 41% |
Equity — Exchange Traded Funds | 1% | — |
| 100% | 100% |
Target Allocation | 8/31/08 | 8/31/07 |
|
|
|
Fixed Income Funds | 65% | 60% |
Equity Funds | 35% | 40% |
Asset allocation is subject to change.
DWS LifeCompass 2015 Fund
Asset Allocation | 8/31/08 | 8/31/07 |
|
|
|
Fixed Income — Money Market | 1% | 7% |
Fixed Income — Bonds | 37% | 32% |
Equity | 61% | 61% |
Equity — Exchange Traded Funds | 1% | —- |
| 100% | 100% |
Target Allocation | 8/31/08 | 8/31/07 |
|
|
|
Fixed Income Funds | 40% | 40% |
Equity Funds | 60% | 60% |
Asset allocation is subject to change.
DWS LifeCompass 2020 Fund
Asset Allocation | 8/31/08 | 8/31/07 |
|
|
|
Fixed Income — Money Market | 2% | 5% |
Fixed Income — Bonds | 27% | 18% |
Equity | 70% | 77% |
Equity — Exchange Traded Funds | 1% | — |
| 100% | 100% |
Target Allocation | 8/31/08 | 8/31/07 |
|
|
|
Fixed Income Funds | 30% | 25% |
Equity Funds | 70% | 75% |
Asset allocation is subject to change.
DWS LifeCompass 2030 Fund
Asset Allocation | 8/31/08 | 8/31/07 |
|
|
|
Fixed Income — Money Market | 1% | 3% |
Fixed Income — Bonds | 8% | — |
Equity — Exchange Traded Funds | 1% | — |
Equity | 90% | 97% |
| 100% | 100% |
Target Allocation | 8/31/08 | 8/31/07 |
|
|
|
Fixed Income Funds | 10% | — |
Equity Funds | 90% | 100% |
Asset allocation is subject to change.
DWS LifeCompass 2040 Fund
Asset Allocation | 8/31/08 |
|
|
Fixed Income — Money Market | 3% |
Fixed Income — Bonds | 4% |
Equity | 80% |
Equity — Exchange Traded Funds | 13% |
| 100% |
Target Allocation | 8/31/08 |
|
|
Fixed Income Funds | 5% |
Equity Funds | 95% |
Asset allocation is subject to change.
For more complete details about each Fund's investment portfolio, see pages 58-67. A quarterly Fact Sheet is available upon request. A complete list of the fund's portfolio holdings is posted as of the month end on www.dws-investments.com on or about the 15th day of the following month. More frequent posting of portfolio holdings information may be made from time to time on www.dws-investments.com. In addition, the Fund's top ten holdings and other information about the Fund is posted on www.dws-investments.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.
Investment Portfolios as of August 31, 2008
DWS LifeCompass Retirement Fund
|
| Value ($) |
|
| |
Equity — Equity Funds 35.2% | ||
DWS Blue Chip Fund "Institutional" | 11,506 | 192,730 |
DWS Capital Growth Fund "Institutional" | 29,455 | 1,581,432 |
DWS Commodity Securities Fund "Institutional" | 111 | 1,736 |
DWS Communications Fund "Institutional" | 12,983 | 221,487 |
DWS Disciplined Long/Short Value Fund "Institutional" | 91,854 | 806,480 |
DWS Dreman Concentrated Value Fund "Institutional" | 17,719 | 153,623 |
DWS Dreman High Return Equity Fund "Institutional" | 9,601 | 348,710 |
DWS Dreman Mid Cap Value Fund "Institutional" | 135,402 | 1,387,871 |
DWS Dreman Small Cap Value Fund "Institutional" | 46,801 | 1,590,312 |
DWS Emerging Markets Equity Fund "Institutional" | 15,439 | 287,940 |
DWS Equity 500 Index Fund "Institutional" | 95,359 | 13,896,595 |
DWS Equity Partners Fund "Institutional" | 120,655 | 1,877,390 |
DWS Europe Equity Fund "Institutional" | 81,174 | 2,372,727 |
DWS Global Opportunities Fund "Institutional" | 1,392 | 50,348 |
DWS Global Thematic Fund "Institutional" | 54,395 | 1,271,219 |
DWS Gold & Precious Metals Fund "Institutional" | 30,477 | 541,888 |
DWS Growth & Income Fund "Institutional" | 160,569 | 2,583,549 |
DWS Health Care Fund "Institutional" | 21,123 | 540,105 |
DWS International Fund "Institutional" | 22,865 | 1,287,989 |
DWS International Select Equity Fund "Institutional" | 160,276 | 1,360,746 |
DWS International Value Opportunities Fund "Institutional" | 88,043 | 939,423 |
DWS Japan Equity Fund "S" | 41,865 | 418,231 |
DWS Large Cap Value Fund "Institutional" | 223,844 | 4,248,554 |
DWS Large Company Growth Fund "Institutional" | 66,710 | 1,937,913 |
DWS Micro Cap Fund "Institutional" | 7,611 | 114,391 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 76,535 | 662,794 |
DWS RREEF Real Estate Securities Fund "Institutional" | 15,040 | 285,462 |
DWS Small Cap Core Fund "S" | 49,934 | 865,858 |
DWS Small Cap Growth Fund "Institutional" | 34,286 | 697,724 |
DWS Technology Fund "Institutional" | 80,946 | 954,348 |
Total Equity Funds (Cost $47,634,927) | 43,479,575 | |
| ||
Equity — Exchange Traded Funds 0.6% | ||
iShares MSCI Canada Index Fund | 15,343 | 467,041 |
iShares MSCI EAFE Small Cap Index Fund | 2,919 | 115,592 |
iShares MSCI United Kingdom Index Fund | 9,264 | 178,425 |
Total Exchange Traded Funds (Cost $807,647) | 761,058 | |
| ||
Fixed Income — Bond Funds 62.5% | ||
DWS Core Fixed Income Fund "Institutional" | 4,302,497 | 42,852,871 |
DWS Core Plus Income Fund "Institutional" | 160 | 1,856 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 1,671 | 19,601 |
DWS Floating Rate Plus Fund "Institutional" | 1,768,705 | 15,900,658 |
DWS Global Bond Fund "S" | 193,301 | 1,948,472 |
DWS GNMA Fund "S" | 135,210 | 1,990,290 |
DWS High Income Fund "Institutional" | 1,105,484 | 5,184,718 |
DWS High Income Plus Fund "Institutional" | 11,439 | 76,638 |
DWS Inflation Protected Plus Fund "Institutional" | 548,425 | 5,780,400 |
DWS Short Duration Fund "Institutional" | 711 | 6,738 |
DWS Short Duration Plus Fund "Institutional" | 359,653 | 3,441,882 |
Total Fixed Income — Bond Funds (Cost $81,059,882) | 77,204,124 | |
| ||
Fixed Income — Money Market Funds 1.8% | ||
Cash Management QP Trust | 2,143,433 | 2,143,433 |
DWS Money Market Prime Series "DWS Cash Investment Trust Class S" | 7,979 | 7,979 |
DWS Money Market Series "Institutional" | 19,669 | 19,669 |
Total Fixed Income — Money Market Funds (Cost $2,171,081) | 2,171,081 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $131,673,537)+ | 100.1 | 123,615,838 |
Other Assets and Liabilities, Net | (0.1) | (109,595) |
Net Assets | 100.0 | 123,506,243 |
During the year ended August 31, 2008, purchases and sales of mutual funds (excluding Cash Management QP Trust and other money market funds) aggregated $68,859,833 and $63,170,000, respectively.
MSCI: Morgan Stanley Capital International
The accompanying notes are an integral part of the financial statements.
|
| Value ($) |
|
| |
Equity — Equity Funds 60.9% | ||
DWS Blue Chip Fund "Institutional" | 11,201 | 187,618 |
DWS Capital Growth Fund "Institutional" | 68,846 | 3,696,365 |
DWS Commodity Securities Fund "Institutional" | 28,330 | 442,797 |
DWS Communications Fund "Institutional" | 65,920 | 1,124,597 |
DWS Disciplined Long/Short Value Fund "Institutional" | 234,820 | 2,061,716 |
DWS Dreman Concentrated Value Fund "Institutional" | 45,383 | 393,472 |
DWS Dreman High Return Equity Fund "Institutional" | 34,141 | 1,240,003 |
DWS Dreman Mid Cap Value Fund "Institutional" | 427,782 | 4,384,762 |
DWS Dreman Small Cap Value Fund "Institutional" | 133,910 | 4,550,252 |
DWS Emerging Markets Equity Fund "Institutional" | 151,235 | 2,820,540 |
DWS Enhanced S&P 500 Index Fund "S" | 165,586 | 1,993,655 |
DWS Equity 500 Index Fund "Institutional" | 321,399 | 46,837,488 |
DWS Equity Partners Fund "Institutional" | 438,300 | 6,819,956 |
DWS Europe Equity Fund "Institutional" | 365,349 | 10,679,143 |
DWS Global Opportunities Fund "Institutional" | 4,177 | 151,044 |
DWS Global Thematic Fund "Institutional" | 140,030 | 3,272,509 |
DWS Gold & Precious Metals Fund "Institutional" | 30,337 | 539,396 |
DWS Growth & Income Fund "Institutional" | 571,798 | 9,200,224 |
DWS Health Care Fund "Institutional" | 117,820 | 3,012,660 |
DWS International Fund "Institutional" | 57,786 | 3,255,110 |
DWS International Select Equity Fund "Institutional" | 400,873 | 3,403,413 |
DWS International Value Opportunities Fund "Institutional" | 266,582 | 2,844,435 |
DWS Japan Equity Fund "S" | 104,010 | 1,039,063 |
DWS Large Cap Value Fund "Institutional" | 751,157 | 14,256,952 |
DWS Large Company Growth Fund "Institutional" | 237,435 | 6,897,483 |
DWS Micro Cap Fund "Institutional" | 16,403 | 246,536 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 206,932 | 1,792,030 |
DWS RREEF Real Estate Securities Fund "Institutional" | 53,393 | 1,013,401 |
DWS Small Cap Core Fund "S" | 280,754 | 4,868,279 |
DWS Small Cap Growth Fund "Institutional" | 91,543 | 1,862,904 |
DWS Technology Fund "Institutional" | 247,926 | 2,923,046 |
Total Equity Funds (Cost $162,304,413) | 147,810,849 | |
| ||
Equity — Exchange Traded Funds 0.5% | ||
iShares MSCI Canada Index Fund | 23,014 | 700,546 |
iShares MSCI EAFE Small Cap Index Fund | 2,919 | 115,592 |
iShares MSCI United Kingdom Index Fund | 24,866 | 478,919 |
Total Exchange Traded Funds (Cost $1,370,983) | 1,295,057 | |
| ||
Fixed Income — Bond Funds 37.6% | ||
DWS Core Fixed Income Fund "Institutional" | 6,445,425 | 64,196,530 |
DWS Core Plus Income Fund "Institutional" | 745 | 8,662 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 104,917 | 1,230,675 |
DWS Floating Rate Plus Fund "Institutional" | 565,402 | 5,082,962 |
DWS Global Bond Fund "S" | 247,082 | 2,490,582 |
DWS GNMA Fund "S" | 421 | 6,191 |
DWS High Income Fund "Institutional" | 2,240,603 | 10,508,428 |
DWS High Income Plus Fund "Institutional" | 1,741 | 11,666 |
DWS Inflation Protected Plus Fund "Institutional" | 720,423 | 7,593,262 |
DWS Short Duration Plus Fund "Institutional" | 821 | 7,854 |
Total Fixed Income — Bond Funds (Cost $95,899,655) | 91,136,812 | |
| ||
Fixed Income — Money Market Funds 1.5% | ||
Cash Management QP Trust | 3,469,144 | 3,469,144 |
DWS Money Market Prime Series "DWS Cash Investment Trust Class S" | 11,646 | 11,646 |
DWS Money Market Series "Institutional" | 22,641 | 22,641 |
Total Fixed Income — Money Market Funds (Cost $3,503,431) | 3,503,431 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $263,078,482)+ | 100.5 | 243,746,149 |
Other Assets and Liabilities, Net | (0.5) | (1,205,465) |
Net Assets | 100.0 | 242,540,684 |
During the year ended August 31, 2008, purchases and sales of mutual funds (excluding Cash Management QP Trust and other money market funds) aggregated $81,393,766 and $106,565,000, respectively.
MSCI: Morgan Stanley Capital International
The accompanying notes are an integral part of the financial statements.
|
| Value ($) |
|
| |
Equity — Equity Funds 70.1% | ||
DWS Blue Chip Fund "Institutional" | 132,338 | 2,216,668 |
DWS Capital Growth Fund "Institutional" | 39,004 | 2,094,145 |
DWS Commodity Securities Fund "Institutional" | 38,171 | 596,619 |
DWS Communications Fund "Institutional" | 56,881 | 970,392 |
DWS Disciplined Long/Short Value Fund "Institutional" | 229,636 | 2,016,205 |
DWS Dreman Concentrated Value Fund "Institutional" | 55,080 | 477,545 |
DWS Dreman High Return Equity Fund "Institutional" | 55,518 | 2,016,410 |
DWS Dreman Mid Cap Value Fund "Institutional" | 459,521 | 4,710,089 |
DWS Dreman Small Cap Value Fund "Institutional" | 138,089 | 4,692,268 |
DWS Emerging Markets Equity Fund "Institutional" | 196,466 | 3,664,096 |
DWS Equity 500 Index Fund "Institutional" | 408,103 | 59,472,818 |
DWS Equity Partners Fund "Institutional" | 522,260 | 8,126,361 |
DWS Europe Equity Fund "Institutional" | 437,452 | 12,786,716 |
DWS Global Opportunities Fund "Institutional" | 13,337 | 482,257 |
DWS Global Thematic Fund "Institutional" | 250,952 | 5,864,752 |
DWS Gold & Precious Metals Fund "Institutional" | 31,293 | 556,395 |
DWS Growth & Income Fund "Institutional" | 665,618 | 10,709,801 |
DWS Health Care Fund "Institutional" | 132,608 | 3,390,787 |
DWS International Fund "Institutional" | 83,638 | 4,711,334 |
DWS International Select Equity Fund "Institutional" | 530,298 | 4,502,227 |
DWS International Value Opportunities Fund "Institutional" | 263,115 | 2,807,432 |
DWS Japan Equity Fund "S" | 120,241 | 1,201,211 |
DWS Large Cap Value Fund "Institutional" | 1,067,931 | 20,269,336 |
DWS Large Company Growth Fund "Institutional" | 341,817 | 9,929,788 |
DWS Micro Cap Fund "Institutional" | 17,899 | 269,017 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 283,316 | 2,453,516 |
DWS RREEF Real Estate Securities Fund "Institutional" | 65,106 | 1,235,720 |
DWS Small Cap Core Fund "S" | 486,668 | 8,438,830 |
DWS Small Cap Growth Fund "Institutional" | 87,702 | 1,784,729 |
DWS Technology Fund "Institutional" | 266,136 | 3,137,747 |
Total Equity Funds (Cost $200,385,278) | 185,585,211 | |
| ||
Equity — Exchange Traded Funds 0.8% | ||
iShares MSCI Canada Index Fund | 35,404 | 1,077,697 |
iShares MSCI EAFE Small Cap Index Fund | 4,553 | 180,299 |
iShares MSCI United Kingdom Index Fund | 48,757 | 939,060 |
Total Exchange Traded Funds (Cost $2,322,771) | 2,197,056 | |
| ||
Fixed Income — Bond Funds 27.1% | ||
DWS Core Fixed Income Fund "Institutional" | 5,247,580 | 52,265,892 |
DWS Core Plus Income Fund "Institutional" | 1,947 | 22,624 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 118,396 | 1,388,787 |
DWS Floating Rate Plus Fund "Institutional" | 463,298 | 4,165,050 |
DWS Global Bond Fund "S" | 237,216 | 2,391,142 |
DWS GNMA Fund "S" | 1,158 | 17,039 |
DWS High Income Fund "Institutional" | 1,228,442 | 5,761,393 |
DWS High Income Plus Fund "Institutional" | 381 | 2,552 |
DWS Inflation Protected Plus Fund "Institutional" | 548,135 | 5,777,346 |
Total Fixed Income — Bond Funds (Cost $75,733,887) | 71,791,825 | |
| ||
Fixed Income — Money Market Funds 2.2% | ||
Cash Management QP Trust | 5,690,404 | 5,690,404 |
DWS Money Market Prime Series "DWS Cash Investment Trust Class S" | 8,688 | 8,688 |
DWS Money Market Series "Institutional" | 25,980 | 25,980 |
Total Fixed Income — Money Market Funds (Cost $5,725,072) | 5,725,072 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $284,167,008)+ | 100.2 | 265,299,164 |
Other Assets and Liabilities, Net | (0.2) | (418,165) |
Net Assets | 100.0 | 264,880,999 |
During the year ended August 31, 2008, purchases and sales of mutual funds (excluding Cash Management QP Trust and other money market funds) aggregated $93,606,705 and $90,300,000, respectively.
MSCI: Morgan Stanley Capital International
The accompanying notes are an integral part of the financial statements.
|
| Value ($) |
|
| |
Equity — Equity Funds 90.4% | ||
DWS Blue Chip Fund "Institutional" | 3,371 | 56,470 |
DWS Capital Growth Fund "Institutional" | 9,497 | 509,893 |
DWS Commodity Securities Fund "Institutional" | 6,183 | 96,640 |
DWS Communications Fund "Institutional" | 15,533 | 264,989 |
DWS Disciplined Long/Short Value Fund "Institutional" | 79,879 | 701,334 |
DWS Dreman Concentrated Value Fund "Institutional" | 4,670 | 40,493 |
DWS Dreman High Return Equity Fund "Institutional" | 9,188 | 333,724 |
DWS Dreman Mid Cap Value Fund "Institutional" | 124,558 | 1,276,719 |
DWS Dreman Small Cap Value Fund "Institutional" | 29,944 | 1,017,512 |
DWS Emerging Markets Equity Fund "Institutional" | 20,027 | 373,509 |
DWS Equity 500 Index Fund "Institutional" | 71,448 | 10,412,101 |
DWS Equity Partners Fund "Institutional" | 98,167 | 1,527,476 |
DWS Europe Equity Fund "Institutional" | 71,532 | 2,090,887 |
DWS Global Opportunities Fund "Institutional" | 1,777 | 64,254 |
DWS Global Thematic Fund "Institutional" | 40,375 | 943,558 |
DWS Gold & Precious Metals Fund "Institutional" | 19,320 | 343,515 |
DWS Growth & Income Fund "Institutional" | 125,077 | 2,012,491 |
DWS Health Care Fund "Institutional" | 33,178 | 848,370 |
DWS International Fund "Institutional" | 22,501 | 1,267,494 |
DWS International Select Equity Fund "Institutional" | 118,775 | 1,008,403 |
DWS International Value Opportunities Fund "Institutional" | 52,692 | 562,224 |
DWS Japan Equity Fund "S" | 27,305 | 272,776 |
DWS Large Cap Value Fund "Institutional" | 207,119 | 3,931,113 |
DWS Large Company Growth Fund "Institutional" | 60,557 | 1,759,174 |
DWS Micro Cap Fund "Institutional" | 3,308 | 49,716 |
DWS Mid Cap Growth Fund "Institutional" | 5,459 | 78,449 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 56,613 | 490,270 |
DWS RREEF Real Estate Securities Fund "Institutional" | 11,824 | 224,411 |
DWS Small Cap Core Fund "S" | 96,255 | 1,669,066 |
DWS Small Cap Growth Fund "Institutional" | 17,695 | 360,088 |
DWS Technology Fund "Institutional" | 104,747 | 1,234,966 |
Total Equity Funds (Cost $41,233,256) | 35,822,085 | |
| ||
Equity — Exchange Traded Funds 0.8% | ||
iShares MSCI Canada Index Fund | 8,451 | 257,248 |
iShares MSCI EAFE Small Cap Index Fund | 934 | 36,986 |
iShares MSCI United Kingdom Index Fund | 975 | 18,779 |
Total Exchange Traded Funds (Cost $332,490) | 313,013 | |
| ||
Fixed Income — Bond Funds 8.3% | ||
DWS Core Fixed Income Fund "Institutional" | 216,173 | 2,153,086 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 8,249 | 96,764 |
DWS Floating Rate Plus Fund "Institutional" | 8,661 | 77,858 |
DWS Global Bond Fund "S" | 32,555 | 328,151 |
DWS High Income Fund "Institutional" | 55,221 | 258,986 |
DWS Inflation Protected Plus Fund "Institutional" | 35,865 | 378,015 |
DWS US Bond Index Fund "Institutional" | 996 | 10,107 |
Total Fixed Income — Bond Funds (Cost $3,446,943) | 3,302,967 | |
| ||
Fixed Income — Money Market Funds 0.8% | ||
Cash Management QP Trust | 280,732 | 280,732 |
DWS Money Market Prime Series "DWS Cash Investment Trust Class S" | 7,898 | 7,898 |
DWS Money Market Series "Institutional" | 6,768 | 6,768 |
Total Fixed Income — Money Market Funds (Cost $295,398) | 295,398 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $45,308,087)+ | 100.3 | 39,733,463 |
Other Assets and Liabilities, Net | (0.3) | (122,902) |
Net Assets | 100.0 | 39,610,561 |
During the year ended August 31, 2008, purchases and sales of mutual funds (excluding Cash Management QP Trust and other money market funds) aggregated $21,218,780 and $12,095,000, respectively.
MSCI: Morgan Stanley Capital International
The accompanying notes are an integral part of the financial statements.
DWS LifeCompass 2040 Fund
|
| Value ($) |
|
| |
Equity — Equity Funds 79.0% | ||
DWS Blue Chip Fund "Institutional" | 468 | 7,840 |
DWS Capital Growth Fund "Institutional" | 4,248 | 228,092 |
DWS Commodity Securities Fund "Institutional" | 138 | 2,150 |
DWS Communications Fund "Institutional" | 2,034 | 34,699 |
DWS Disciplined Long/Short Value Fund "Institutional" | 6,153 | 54,026 |
DWS Dreman Concentrated Value Fund "Institutional" | 3,376 | 29,268 |
DWS Dreman High Return Equity Fund "Institutional" | 1,496 | 54,329 |
DWS Dreman Mid Cap Value Fund "Institutional" | 12,798 | 131,182 |
DWS Dreman Small Cap Value Fund "Institutional" | 7,450 | 253,142 |
DWS Emerging Markets Equity Fund "Institutional" | 971 | 18,100 |
DWS Equity 500 Index Fund "Institutional" | 4,597 | 669,871 |
DWS Equity Partners Fund "Institutional" | 8,855 | 137,791 |
DWS Europe Equity Fund "Institutional" | 4,526 | 132,293 |
DWS Global Opportunities Fund "Institutional" | 840 | 30,368 |
DWS Global Thematic Fund "Institutional" | 2,952 | 68,988 |
DWS Gold & Precious Metals Fund "Institutional" | 1,081 | 19,211 |
DWS Growth & Income Fund "Institutional" | 14,841 | 238,790 |
DWS Health Care Fund "Institutional" | 3,633 | 92,895 |
DWS International Fund "Institutional" | 1,922 | 108,292 |
DWS International Select Equity Fund "Institutional" | 7,841 | 66,570 |
DWS International Value Opportunities Fund "Institutional" | 5,109 | 54,511 |
DWS Japan Equity Fund "S" | 5,079 | 50,740 |
DWS Large Cap Value Fund "Institutional" | 12,630 | 239,722 |
DWS Large Company Growth Fund "Institutional" | 2,722 | 79,061 |
DWS Micro Cap Fund "Institutional" | 265 | 3,983 |
DWS Mid Cap Growth Fund "Institutional" | 126 | 1,804 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 7,003 | 60,642 |
DWS RREEF Real Estate Securities Fund "Institutional" | 2,066 | 39,220 |
DWS Small Cap Core Fund "S" | 7,101 | 123,134 |
DWS Small Cap Growth Fund "Institutional" | 5,071 | 103,204 |
DWS Technology Fund "Institutional" | 15,719 | 185,329 |
Total Equity Funds (Cost $3,612,385) | 3,319,247 | |
| ||
Equity — Exchange Traded Funds 12.6% | ||
Consumer Staples Select Sector SPDR Fund | 2,566 | 72,207 |
Energy Select Sector SPDR Fund | 1,027 | 76,665 |
Financial Select Sector SPDR Fund | 2,419 | 51,815 |
Industrial Select Sector SPDR Fund | 2,966 | 104,936 |
iShares MSCI Canada Index Fund | 2,786 | 84,806 |
iShares MSCI EAFE Small Cap Index Fund | 2,058 | 81,497 |
iShares MSCI United Kingdom Index Fund | 2,969 | 57,183 |
Total Exchange Traded Funds (Cost $524,892) | 529,109 | |
| ||
Fixed Income — Bond Funds 4.0% | ||
DWS Core Fixed Income Fund "Institutional" | 10,359 | 103,179 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 866 | 10,160 |
DWS Floating Rate Plus Fund "Institutional" | 1,015 | 9,121 |
DWS GNMA Fund "S" | 275 | 4,042 |
DWS Short Duration Plus Fund "Institutional" | 834 | 7,984 |
DWS US Bond Index Fund "Institutional" | 3,127 | 31,743 |
Total Fixed Income — Bond Funds (Cost $172,010) | 166,229 | |
| ||
Fixed Income — Money Market Fund 2.9% | ||
Cash Management QP Trust (Cost $123,247) | 123,247 | 123,247 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $4,432,534)+ | 98.5 | 4,137,832 |
Other Assets and Liabilities, Net | 1.5 | 60,962 |
Net Assets | 100.0 | 4,198,794 |
During the period ended August 31, 2008, purchases and sales of mutual funds (excluding Cash Management QP Trust) aggregated $4,785,267 and $417,650, respectively.
MSCI: Morgan Stanley Capital International
SPDR: Standard & Poor's Depository Receipt
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of August 31, 2008 | |||
Assets | DWS LifeCompass Retirement Fund | DWS LifeCompass 2015 Fund | DWS LifeCompass 2020 Fund |
Investments in Underlying Affiliated Funds, at value (cost $130,865,890, $261,707,499 and $281,844,237) | $ 122,854,780 | $ 242,451,092 | $ 263,102,108 |
Investments in Non-Affiliated Funds, at value (cost $807,647, $1,370,983 and $2,322,771) | 761,058 | 1,295,057 | 2,197,056 |
Total investments, at value (cost $131,673,537, $263,078,482 and $284,167,008) | 123,615,838 | 243,746,149 | 265,299,164 |
Dividends receivable | 28,827 | 42,317 | 33,969 |
Interest receivable | 5,575 | 9,006 | 13,346 |
Receivable for Fund shares sold | 63,066 | 158,450 | 189,727 |
Due from Advisor | 127 | — | — |
Other assets | 24,083 | 22,655 | 25,268 |
Total assets | 123,737,516 | 243,978,577 | 265,561,474 |
Liabilities | |||
Payable for Fund shares redeemed | 64,719 | 1,201,752 | 390,903 |
Other accrued expenses and liabilities | 166,554 | 236,141 | 289,572 |
Total liabilities | 231,273 | 1,437,893 | 680,475 |
Net assets, at value | $ 123,506,243 | $ 242,540,684 | $ 264,880,999 |
Net Assets Consist of | |||
Undistributed net investment income | 817,201 | 1,087,801 | 4,581,908 |
Net unrealized appreciation (depreciation) on investments | (8,057,699) | (19,332,333) | (18,867,844) |
Accumulated net realized gain (loss) | (928,514) | (9,795,721) | 297,588 |
Paid-in capital | 131,675,255 | 270,580,937 | 278,869,347 |
Net assets, at value | $ 123,506,243 | $ 242,540,684 | $ 264,880,999 |
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of August 31, 2008 (continued) | ||
Assets | DWS LifeCompass 2030 Fund | DWS LifeCompass 2040 Fund |
Investments: Investments in Underlying Affiliated Funds, at value (cost $44,975,597 and $3,907,642) | $ 39,420,450 | $ 3,608,723 |
Investments in Non-Affiliated Funds, at value (cost $332,490 and $524,892) | 313,013 | 529,109 |
Total investments, at value (cost $45,308,087 and $4,432,534) | 39,733,463 | 4,137,832 |
Dividends receivable | 1,362 | 79 |
Interest receivable | 792 | 171 |
Receivable for Fund shares sold | 46,149 | 89,902 |
Deferred offering cost | — | 9,687 |
Due from Advisor | 23,225 | 22,127 |
Other assets | 45,576 | 8,162 |
Total assets | 39,850,567 | 4,267,960 |
Liabilities | ||
Payable for Fund shares redeemed | 145,429 | 124 |
Other accrued expenses and liabilities | 94,577 | 69,042 |
Total liabilities | 240,006 | 69,166 |
Net assets, at value | $ 39,610,561 | $ 4,198,794 |
Net Assets Consist of | ||
Undistributed net investment income | 128,582 | 9,749 |
Net unrealized appreciation (depreciation) on investments | (5,574,624) | (294,702) |
Accumulated net realized gain (loss) | 1,716,957 | 44,740 |
Paid-in capital | 43,339,646 | 4,439,007 |
Net assets, at value | $ 39,610,561 | $ 4,198,794 |
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of August 31, 2008 (continued) | |||
Net Asset Value | DWS LifeCompass Retirement Fund | DWS LifeCompass 2015 Fund | DWS LifeCompass 2020 Fund |
Class A Net assets applicable to shares outstanding | $ 34,263,326 | $ 97,067,637 | $ 84,568,646 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 2,981,080 | 8,730,215 | 6,189,480 |
Net Asset Value and redemption price per share | $ 11.49 | $ 11.12 | $ 13.66 |
Maximum offering price per share (100 ÷ 94.25 of net asset value) | $ 12.19 | $ 11.80 | $ 14.49 |
Class B Net assets applicable to shares outstanding | $ 5,576,732 | $ 17,154,004 | $ 21,573,047 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 485,328 | 1,544,606 | 1,594,136 |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share | $ 11.49 | $ 11.11 | $ 13.53 |
Class C Net assets applicable to shares outstanding | $ 12,754,317 | $ 28,296,519 | $ 30,090,503 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 1,110,422 | 2,548,351 | 2,223,104 |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share | $ 11.49 | $ 11.10 | $ 13.54 |
Class S Net assets applicable to shares outstanding | $ 70,911,868 | $ 100,022,524 | $ 128,648,803 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 6,169,729 | 9,006,294 | 9,397,141 |
Net Asset Value, offering and redemption price per share | $ 11.49 | $ 11.11 | $ 13.69 |
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of August 31, 2008 (continued) | ||
Net Asset Value | DWS LifeCompass 2030 Fund | DWS LifeCompass 2040 Fund |
Class A Net assets applicable to shares outstanding | $ 22,733,824 | $ 1,835,011 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 2,216,603 | 209,281 |
Net Asset Value and redemption price per share | $ 10.26 | $ 8.77 |
Maximum offering price per share (100 ÷ 94.25 of net asset value) | $ 10.89 | $ 9.31 |
Class B Net assets applicable to shares outstanding | $ 2,812,821 | — |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 275,499 | — |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share | $ 10.21 | — |
Class C Net assets applicable to shares outstanding | $ 7,697,692 | $ 262,281 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 754,144 | 30,034 |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share | $ 10.21 | $ 8.73 |
Class S Net assets applicable to shares outstanding | $ 6,366,224 | $ 2,101,502 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 619,849 | 239,192 |
Net Asset Value, offering and redemption price per share | $ 10.27 | $ 8.79 |
The accompanying notes are an integral part of the financial statements.
Statements of Operations for the year ended August 31, 2008 | |||
Investment Income | DWS LifeCompass Retirement Fund | DWS LifeCompass 2015 Fund | DWS LifeCompass 2020 Fund |
Income distributions from Underlying Affiliated Funds | $ 5,294,180 | $ 8,213,017 | $ 7,311,115 |
Dividends | — | — | 269 |
Total Income | 5,294,180 | 8,213,017 | 7,311,384 |
Expenses: Administration fees | 139,294 | 285,134 | 295,606 |
Distribution and service fees | 301,526 | 812,669 | 827,961 |
Services to shareholders | 263,595 | 605,358 | 709,853 |
Custodian fees | 13,241 | 7,129 | 10,856 |
Professional fees | 69,926 | 74,025 | 73,507 |
Trustees' fees and expenses | 7,238 | 14,048 | 13,959 |
Reports to shareholders | 48,752 | 65,490 | 97,334 |
Registration fees | 52,975 | 56,091 | 57,884 |
Other | 12,373 | 15,759 | 18,063 |
Total expenses before expense reductions | 908,920 | 1,935,703 | 2,105,023 |
Expense reductions | (183,757) | (363,085) | (455,773) |
Total expenses after expense reductions | 725,163 | 1,572,618 | 1,649,250 |
Net investment income | 4,569,017 | 6,640,399 | 5,662,134 |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) from sale of Underlying Affiliated Funds | (527,162) | 42,366 | 3,187,680 |
Capital Gain Distributions from Underlying Affiliated Funds | 4,663,093 | 16,259,398 | 20,616,861 |
| 4,135,931 | 16,301,764 | 23,804,541 |
Change in net unrealized appreciation (depreciation) on investments | (15,018,239) | (43,329,482) | (54,396,305) |
Net gain (loss) | (10,882,308) | (27,027,718) | (30,591,764) |
Net increase (decrease) in net assets resulting from operations | $ (6,313,291) | $ (20,387,319) | $ (24,929,630) |
The accompanying notes are an integral part of the financial statements.
Statements of Operations for the year ended August 31, 2008 | ||
Investment Income | DWS LifeCompass 2030 Fund | DWS LifeCompass 2040 Fund* |
Income distributions from Underlying Affiliated Funds | $ 697,244 | $ 25,261 |
Dividends | 880 | 90 |
Total Income | 698,124 | 25,351 |
Expenses: Administration fees | 41,077 | 1,882 |
Distribution and service fees | 183,402 | 2,225 |
Services to shareholders | 89,388 | 4,857 |
Custodian fees | 7,950 | 5,718 |
Audit and tax fees | 53,353 | 43,300 |
Legal | 24,933 | 19,252 |
Trustees' fees and expenses | 2,945 | 1,007 |
Reports to shareholders | 35,601 | 9,441 |
Registration fees | 42,342 | 2,836 |
Offering expenses | — | 37,275 |
Other | 6,260 | 5,390 |
Total expenses before expense reductions | 487,251 | 133,183 |
Expense reductions | (212,758) | (126,177) |
Total expenses after expense reductions | 274,493 | 7,006 |
Net investment income | 423,631 | 18,345 |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) from sale of Underlying Affiliated Funds | (487,453) | (58,330) |
Capital Gain Distributions from Underlying Affiliated Funds | 3,353,737 | 134,828 |
| 2,866,284 | 76,498 |
Change in net unrealized appreciation (depreciation) on investments | (7,900,725) | (294,702) |
Net gain (loss) | (5,034,441) | (218,204) |
Net increase (decrease) in net assets resulting from operations | $ (4,610,810) | $ (199,859) |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets — DWS LifeCompass Retirement Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2008 | 2007 | |
Operations: Net investment income | $ 4,569,017 | $ 4,490,029 |
Net realized gain (loss) | 4,135,931 | 5,733,076 |
Change in net unrealized appreciation (depreciation) | (15,018,239) | 717,961 |
Net increase (decrease) in net assets resulting from operations | (6,313,291) | 10,941,066 |
Distributions to shareholders from: Net investment income: Class A | (1,394,779) | (2,072,009) |
Class B | (199,640) | (314,048) |
Class C | (410,417) | (483,880) |
Class S | (3,034,657) | (4,082,856) |
Total distributions | (5,039,493) | (6,952,793) |
Fund share transactions: Proceeds from shares sold | 33,561,976 | 39,111,769 |
Reinvestment of distributions | 4,561,129 | 6,253,241 |
Cost of shares redeemed | (53,751,990) | (38,236,621) |
Redemption fees | 1,288 | 5,017 |
Net increase (decrease) in net assets from Fund share transactions | (15,627,597) | 7,133,406 |
Increase (decrease) in net assets | (26,980,381) | 11,121,679 |
Net assets at beginning of period | 150,486,624 | 139,364,945 |
Net assets at end of period (including undistributed net investment income of $817,201 and $0, respectively) | $ 123,506,243 | $ 150,486,624 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets — DWS LifeCompass 2015 Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2008 | 2007 | |
Operations: Net investment income | $ 6,640,399 | $ 7,201,614 |
Net realized gain (loss) | 16,301,764 | 15,502,854 |
Change in net unrealized appreciation (depreciation) | (43,329,482) | 6,190,605 |
Net increase (decrease) in net assets resulting from operations | (20,387,319) | 28,895,073 |
Distributions to shareholders from: Net investment income: Class A | (4,009,672) | (6,154,370) |
Class B | (597,346) | (1,066,025) |
Class C | (982,599) | (1,603,405) |
Class S | (4,384,519) | (7,731,503) |
Total distributions | (9,974,136) | (16,555,303) |
Fund share transactions: Proceeds from shares sold | 56,174,934 | 85,597,676 |
Reinvestment of distributions | 9,542,383 | 15,918,372 |
Cost of shares redeemed | (119,145,790) | (90,606,252) |
Redemption fees | 737 | 2,719 |
Net increase (decrease) in net assets from Fund share transactions | (53,427,736) | 10,912,515 |
Increase (decrease) in net assets | (83,789,191) | 23,252,285 |
Net assets at beginning of period | 326,329,875 | 303,077,590 |
Net assets at end of period (including undistributed net investment income of $1,087,801 and $0, respectively) | $ 242,540,684 | $ 326,329,875 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets — DWS LifeCompass 2020 Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2008 | 2007 | |
Operations: Net investment income | $ 5,662,134 | $ 5,395,285 |
Net realized gain (loss) | 23,804,541 | 20,837,863 |
Change in net unrealized appreciation (depreciation) | (54,396,305) | 7,643,665 |
Net increase (decrease) in net assets resulting from operations | (24,929,630) | 33,876,813 |
Distributions to shareholders from: Net investment income: Class A | (3,325,234) | (2,647,214) |
Class B | (768,334) | (597,525) |
Class C | (1,103,737) | (787,921) |
Class S | (5,849,080) | (4,805,990) |
Total distributions | (11,046,385) | (8,838,650) |
Fund share transactions: Proceeds from shares sold | 56,286,523 | 63,581,791 |
Reinvestment of distributions | 10,562,999 | 8,470,836 |
Cost of shares redeemed | (86,638,708) | (81,104,318) |
Redemption fees | 349 | 13,575 |
Net increase (decrease) in net assets from Fund share transactions | (19,788,837) | (9,038,116) |
Increase (decrease) in net assets | (55,764,852) | 16,000,047 |
Net assets at beginning of period | 320,645,851 | 304,645,804 |
Net assets at end of period (including undistributed net investment income of $4,581,908 and $4,082,609, respectively) | $ 264,880,999 | $ 320,645,851 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets — DWS LifeCompass 2030 Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2008 | 2007 | |
Operations: Net investment income | $ 423,631 | $ 213,435 |
Net realized gain (loss) | 2,866,284 | 1,947,084 |
Change in net unrealized appreciation (depreciation) | (7,900,725) | 1,346,124 |
Net increase (decrease) in net assets resulting from operations | (4,610,810) | 3,506,643 |
Distributions to shareholders from: Net investment income: Class A | (698,906) | (363,002) |
Class B | (88,281) | (50,646) |
Class C | (252,188) | (132,628) |
Class S | (193,365) | (82,077) |
Net realized gains: Class A | (840,287) | (542,003) |
Class B | (142,055) | (112,749) |
Class C | (405,530) | (295,564) |
Class S | (214,234) | (110,405) |
Total distributions | (2,834,846) | (1,689,074) |
Fund share transactions: Proceeds from shares sold | 18,465,111 | 20,632,105 |
Reinvestment of distributions | 2,681,360 | 1,611,367 |
Cost of shares redeemed | (13,858,420) | (11,004,138) |
Redemption fees | 90 | 169 |
Net increase (decrease) in net assets from Fund share transactions | 7,288,141 | 11,239,503 |
Increase (decrease) in net assets | (157,515) | 13,057,072 |
Net assets at beginning of period | 39,768,076 | 26,711,004 |
Net assets at end of period (including undistributed net investment income of $128,582 and $2,693, respectively) | $ 39,610,561 | $ 39,768,076 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets — DWS LifeCompass 2040 Fund | |
Increase (Decrease) in Net Assets | Period Ended August 31, 2008* |
Operations: Net investment income | $ 18,345 |
Net realized gain (loss) | 76,498 |
Change in net unrealized appreciation (depreciation) | (294,702) |
Net increase (decrease) in net assets resulting from operations | (199,859) |
Distributions to shareholders from: Net investment income: Class A | (5,583) |
Class C | (2,130) |
Class S | (34,879) |
Total distributions | (42,592) |
Fund share transactions: Proceeds from shares sold | 4,584,175 |
Reinvestment of distributions | 42,592 |
Cost of shares redeemed | (385,522) |
Net increase (decrease) in net assets from Fund share transactions | 4,241,245 |
Increase (decrease) in net assets | 3,998,794 |
Net assets at beginning of period (initial capital) | 200,000 |
Net assets at end of period (undistributed net investment income of $9,749) | $ 4,198,794 |
The accompanying notes are an integral part of the financial statements.
DWS LifeCompass Retirement Fund — Class A | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 12.51 | $ 12.16 | $ 11.83 | $ 11.17 | $ 10.69 |
Income (loss) from investment operations: Net investment incomea | .40 | .38 | .33 | .28 | .29 |
Net realized and unrealized gain (loss) | (.98) | .57 | .33 | .72 | .52 |
Total from investment operations | (.58) | .95 | .66 | 1.00 | .81 |
Less distributions from: Net investment income | (.44) | (.60) | (.33) | (.34) | (.33) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 11.49 | $ 12.51 | $ 12.16 | $ 11.83 | $ 11.17 |
Total Return (%)b,c,d | (4.76) | 7.90 | 5.66 | 9.04 | 7.61 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 34 | 47 | 41 | 36 | 17 |
Ratio of expenses before expense reductions (%) | .69f | .63f | .88f | .77f | .57e |
Ratio of expenses after expense reductions (%) | .56f | .62f | .61f | .55f | .39e |
Ratio of net investment income (%) | 3.24 | 3.04 | 2.74 | 2.42 | 2.58 |
Portfolio turnover rate (%) | 48 | 21 | 69 | 55 | 56 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass Retirement Fund — Class B | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 12.52 | $ 12.16 | $ 11.83 | $ 11.17 | $ 10.70 |
Income (loss) from investment operations: Net investment incomea | .30 | .29 | .24 | .20 | .20 |
Net realized and unrealized gain (loss) | (.97) | .57 | .33 | .71 | .51 |
Total from investment operations | (.67) | .86 | .57 | .91 | .71 |
Less distributions from: Net investment income | (.36) | (.50) | (.24) | (.25) | (.24) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 11.49 | $ 12.52 | $ 12.16 | $ 11.83 | $ 11.17 |
Total Return (%)b,c,d | (5.46) | 7.16 | 4.87 | 8.24 | 6.69 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 6 | 8 | 8 | 8 | 6 |
Ratio of expenses before expense reductions (%) | 1.42f | 1.34f | 1.65f | 1.60f | 1.26e |
Ratio of expenses after expense reductions (%) | 1.31f | 1.34f | 1.36f | 1.30f | 1.14e |
Ratio of net investment income (%) | 2.49 | 2.32 | 1.99 | 1.67 | 1.83 |
Portfolio turnover rate (%) | 48 | 21 | 69 | 55 | 56 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass Retirement Fund — Class C | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 12.52 | $ 12.16 | $ 11.82 | $ 11.16 | $ 10.69 |
Income (loss) from investment operations: Net investment incomea | .31 | .30 | .24 | .19 | .20 |
Net realized and unrealized gain (loss) | (.98) | .56 | .34 | .72 | .51 |
Total from investment operations | (.67) | .86 | .58 | .91 | .71 |
Less distributions from: Net investment income | (.36) | (.50) | (.24) | (.25) | (.24) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 11.49 | $ 12.52 | $ 12.16 | $ 11.82 | $ 11.16 |
Total Return (%)b,c,d | (5.43) | 7.26 | 4.87 | 8.27 | 6.69 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 13 | 14 | 12 | 9 | 4 |
Ratio of expenses before expense reductions (%) | 1.38f | 1.34f | 1.45f | 1.39f | 1.21e |
Ratio of expenses after expense reductions (%) | 1.29f | 1.29f | 1.36f | 1.30f | 1.14e |
Ratio of net investment income (%) | 2.51 | 2.37 | 1.99 | 1.67 | 1.82 |
Portfolio turnover rate (%) | 48 | 21 | 69 | 55 | 56 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass Retirement Fund — Class S | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 12.51 | $ 12.16 | $ 11.83 | $ 11.17 | $ 10.69 |
Income (loss) from investment operations: Net investment incomea | .43 | .41 | .36 | .32 | .32 |
Net realized and unrealized gain (loss) | (.98) | .57 | .33 | .71 | .51 |
Total from investment operations | (.55) | .98 | .69 | 1.03 | .83 |
Less distributions from: Net investment income | (.47) | (.63) | (.36) | (.37) | (.35) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 11.49 | $ 12.51 | $ 12.16 | $ 11.83 | $ 11.17 |
Total Return (%)b,c | (4.52) | 8.18 | 5.93 | 9.33 | 7.86 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 71 | 81 | 80 | 36 | 43 |
Ratio of expenses before expense reductions (%) | .44e | .48e | .65e | .57e | .23d |
Ratio of expenses after expense reductions (%) | .30e | .37e | .35e | .30e | .13d |
Ratio of net investment income (%) | 3.50 | 3.29 | 3.00 | 2.67 | 2.84 |
Portfolio turnover rate (%) | 48 | 21 | 69 | 55 | 56 |
a Based on average shares outstanding during the period. b Total return would have been lower had certain expenses not been reduced. c Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. d Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. e The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2015 Fund — Class A | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 12.47 | $ 11.98 | $ 11.55 | $ 10.63 | $ 9.91 |
Income (loss) from investment operations: Net investment incomea | .29 | .29 | .25 | .21 | .22 |
Net realized and unrealized gain (loss) | (1.20) | .86 | .50 | .95 | .70 |
Total from investment operations | (.91) | 1.15 | .75 | 1.16 | .92 |
Less distributions from: Net investment income | (.44) | (.66) | (.32) | (.24) | (.20) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 11.12 | $ 12.47 | $ 11.98 | $ 11.55 | $ 10.63 |
Total Return (%)b,c,d | (7.39) | 9.78 | 6.59 | 10.95 | 9.34 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 97 | 131 | 104 | 113 | .56 |
Ratio of expenses before expense reductions (%) | .64f | .61f | .80f | .77f | .54e |
Ratio of expenses after expense reductions (%) | .51f | .57f | .61f | .55f | .38e |
Ratio of net investment income (%) | 2.37 | 2.28 | 2.14 | 1.84 | 2.12 |
Portfolio turnover rate (%) | 29 | 21 | 52 | 35 | 37 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2015 Fund — Class B | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 12.47 | $ 11.98 | $ 11.54 | $ 10.63 | $ 9.91 |
Income (loss) from investment operations: Net investment incomea | .19 | .19 | .16 | .12 | .14 |
Net realized and unrealized gain (loss) | (1.19) | .86 | .51 | .95 | .70 |
Total from investment operations | (1.00) | 1.05 | .67 | 1.07 | .84 |
Less distributions from: Net investment income | (.36) | (.56) | (.23) | (.16) | (.12) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 11.11 | $ 12.47 | $ 11.98 | $ 11.54 | $ 10.63 |
Total Return (%)b,c,d | (8.06) | 8.94 | 5.78 | 10.17 | 8.49 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 17 | 24 | 24 | 23 | 13 |
Ratio of expenses before expense reductions (%) | 1.39f | 1.37f | 1.42f | 1.35f | 1.21e |
Ratio of expenses after expense reductions (%) | 1.26f | 1.34f | 1.37f | 1.30f | 1.12e |
Ratio of net investment income (%) | 1.62 | 1.51 | 1.38 | 1.09 | 1.37 |
Portfolio turnover rate (%) | 29 | 21 | 52 | 35 | 37 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2015 Fund — Class C | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 12.47 | $ 11.97 | $ 11.54 | $ 10.62 | $ 9.90 |
Income (loss) from investment operations: Net investment incomea | .20 | .20 | .16 | .13 | .14 |
Net realized and unrealized gain (loss) | (1.20) | .86 | .50 | .95 | .70 |
Total from investment operations | (1.00) | 1.06 | .66 | 1.08 | .84 |
Less distributions from: Net investment income | (.37) | (.56) | (.23) | (.16) | (.12) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 11.10 | $ 12.47 | $ 11.97 | $ 11.54 | $ 10.62 |
Total Return (%)b,d | (8.12)c | 8.96c | 5.82c | 10.28 | 8.50c |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 28 | 37 | 34 | 27 | 9 |
Ratio of expenses before expense reductions (%) | 1.33f | 1.31f | 1.35f | 1.26f | 1.18e |
Ratio of expenses after expense reductions (%) | 1.25f | 1.30f | 1.34f | 1.26f | 1.13e |
Ratio of net investment income (%) | 1.63 | 1.55 | 1.41 | 1.13 | 1.36 |
Portfolio turnover rate (%) | 29 | 21 | 52 | 35 | 37 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2015 Fund — Class S | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 12.45 | $ 11.96 | $ 11.54 | $ 10.62 | $ 9.90 |
Income (loss) from investment operations: Net investment incomea | .32 | .32 | .28 | .24 | .25 |
Net realized and unrealized gain (loss) | (1.19) | .86 | .49 | .95 | .70 |
Total from investment operations | (.87) | 1.18 | .77 | 1.19 | .95 |
Less distributions from: Net investment income | (.47) | (.69) | (.35) | (.27) | (.23) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 11.11 | $ 12.45 | $ 11.96 | $ 11.54 | $ 10.62 |
Total Return (%)b,c | (7.10) | 9.97 | 6.78 | 11.23 | 9.70 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 100 | 135 | 142 | 126 | 124 |
Ratio of expenses before expense reductions (%) | .41e | .40e | .54e | .36e | .23d |
Ratio of expenses after expense reductions (%) | .26e | .35e | .36e | .30e | .12d |
Ratio of net investment income (%) | 2.62 | 2.50 | 2.39 | 2.09 | 2.37 |
Portfolio turnover rate (%) | 29 | 21 | 52 | 35 | 37 |
a Based on average shares outstanding during the period. b Total return would have been lower had certain expenses not been reduced. c Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. d Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. e The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2020 Fund — Class A | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 15.47 | $ 14.29 | $ 13.49 | $ 12.14 | $ 11.08 |
Income (loss) from investment operations: Net investment incomea | .29 | .26 | .23 | .19 | .17 |
Net realized and unrealized gain (loss) | (1.55) | 1.35 | .84 | 1.35 | 1.07 |
Total from investment operations | (1.26) | 1.61 | 1.07 | 1.54 | 1.24 |
Less distributions from: Net investment income | (.55) | (.43) | (.27) | (.19) | (.18) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $13.66 | $ 15.47 | $ 14.29 | $ 13.49 | $ 12.14 |
Total Return (%)b,c,d | (8.48) | 11.33 | 8.06 | 12.76 | 11.19 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 85 | 100 | 86 | 74 | 39 |
Ratio of expenses before expense reductions (%) | .66f | .67f | .76f | .74f | .46e |
Ratio of expenses after expense reductions (%) | .52f | .62f | .61f | .55f | .39e |
Ratio of net investment income (%) | 1.96 | 1.70 | 1.59 | 1.46 | 1.40 |
Portfolio turnover rate (%) | 31 | 22 | 59 | 31 | 43 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2020 Fund — Class B | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 15.32 | $ 14.15 | $ 13.35 | $ 12.02 | $ 10.97 |
Income (loss) from investment operations: Net investment incomea | .18 | .15 | .12 | .09 | .08 |
Net realized and unrealized gain (loss) | (1.54) | 1.33 | .85 | 1.33 | 1.06 |
Total from investment operations | (1.36) | 1.48 | .97 | 1.42 | 1.14 |
Less distributions from: Net investment income | (.43) | (.31) | (.17) | (.09) | (.09) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 13.53 | $ 15.32 | $ 14.15 | $ 13.35 | $ 12.02 |
Total Return (%)b,c,d | (9.15) | 10.49 | 7.31 | 11.86 | 10.36 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 22 | 28 | 29 | 26 | 14 |
Ratio of expenses before expense reductions (%) | 1.42f | 1.40f | 1.46f | 1.46f | 1.23e |
Ratio of expenses after expense reductions (%) | 1.28f | 1.35f | 1.36f | 1.30f | 1.13e |
Ratio of net investment income (%) | 1.20 | .97 | .84 | .71 | .66 |
Portfolio turnover rate (%) | 31 | 22 | 59 | 31 | 43 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2020 Fund — Class C | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 15.32 | $ 14.15 | $ 13.35 | $ 12.02 | $ 10.97 |
Income (loss) from investment operations: Net investment incomea | .18 | .15 | .12 | .09 | .08 |
Net realized and unrealized gain (loss) | (1.52) | 1.33 | .85 | 1.33 | 1.05 |
Total from investment operations | (1.34) | 1.48 | .97 | 1.42 | 1.13 |
Less distributions from: Net investment income | (.44) | (.31) | (.17) | (.09) | (.08) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 13.54 | $ 15.32 | $ 14.15 | $ 13.35 | $ 12.02 |
Total Return (%)b,c,d | (9.05) | 10.49 | 7.30 | 11.86 | 10.34 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 30 | 40 | 36 | 28 | 9 |
Ratio of expenses before expense reductions (%) | 1.38f | 1.37f | 1.41f | 1.39f | 1.21e |
Ratio of expenses after expense reductions (%) | 1.27f | 1.32f | 1.36f | 1.30f | 1.15e |
Ratio of net investment income (%) | 1.21 | 1.00 | .84 | .71 | .65 |
Portfolio turnover rate (%) | 31 | 22 | 59 | 31 | 43 |
a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charge. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2020 Fund — Class S | |||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 15.50 | $ 14.32 | $ 13.52 | $ 12.17 | $ 11.10 |
Income (loss) from investment operations: Net investment incomea | .32 | .29 | .26 | .22 | .20 |
Net realized and unrealized gain (loss) | (1.54) | 1.36 | .85 | 1.36 | 1.08 |
Total from investment operations | (1.22) | 1.65 | 1.11 | 1.58 | 1.28 |
Less distributions from: Net investment income | (.59) | (.47) | (.31) | (.23) | (.21) |
Redemption fees | .00* | .00* | .00* | .00* | — |
Net asset value, end of period | $ 13.69 | $ 15.50 | $ 14.32 | $ 13.52 | $ 12.17 |
Total Return (%)b,c | (8.22) | 11.60 | 8.33 | 13.02 | 11.50 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 129 | 153 | 154 | 92 | 84 |
Ratio of expenses before expense reductions (%) | .45e | .48e | .53e | .48e | .25d |
Ratio of expenses after expense reductions (%) | .28e | .37e | .36e | .30e | .12d |
Ratio of net investment income (%) | 2.20 | 1.95 | 1.84 | 1.71 | 1.67 |
Portfolio turnover rate (%) | 31 | 22 | 59 | 31 | 43 |
a Based on average shares outstanding during the period. b Total return would have been lower had certain expenses not been reduced. c Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. d Effective April 1, 2004, the Fund implemented a new expense structure in which the Fund directly bears the fees and expenses of the Fund in addition to its proportionate share of the fees and expenses incurred by the Underlying Funds in which the Fund is invested. e The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Amount is less than $.005. |
DWS LifeCompass 2030 Fund — Class A | ||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005a |
Selected Per Share Data | ||||
Net asset value, beginning of period | $ 12.27 | $ 11.50 | $ 10.82 | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .14 | .10 | .08 | .04 |
Net realized and unrealized gain (loss) | (1.32) | 1.39 | .93 | .88 |
Total from investment operations | (1.18) | 1.49 | 1.01 | .92 |
Less distributions from: Net investment income | (.38) | (.29) | (.23) | (.10) |
Net realized gains | (.45) | (.43) | (.10) | — |
Total distributions | (.83) | (.72) | (.33) | (.10) |
Redemption fees | .00*** | .00*** | .00*** | .00*** |
Net asset value, end of period | $ 10.26 | $ 12.27 | $ 11.50 | $ 10.82 |
Total Return (%)c,d,e | (10.40) | 13.17 | 9.52 | 9.24** |
Ratios to Average Net Assets and Supplemental Data | ||||
Net assets, end of period ($ millions) | 23 | 21 | 14 | 7 |
Ratio of expenses before expense reductions (%)f | .99 | 1.00 | 1.60 | 3.41* |
Ratio of expenses after expense reductions (%)f | .47 | .55 | .58 | .55* |
Ratio of net investment income (%) | 1.27 | .88 | .77 | .46* |
Portfolio turnover rate (%) | 30 | 20 | 63 | 28* |
a For the period from November 1, 2004 (commencement of sales of Class A shares) to August 31, 2005. b Based on average shares outstanding during the period. c Total return does not reflect the effect of any sales charge. d Total return would have been lower had certain expenses not been reduced. e Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized *** Amount is less than $.005. |
DWS LifeCompass 2030 Fund — Class B | ||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005a |
Selected Per Share Data | ||||
Net asset value, beginning of period | $ 12.21 | $ 11.45 | $ 10.78 | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .06 | .01 | .00*** | (.02) |
Net realized and unrealized gain (loss) | (1.33) | 1.37 | .92 | .89 |
Total from investment operations | (1.27) | 1.38 | .92 | .87 |
Less distributions from: Net investment income | (.28) | (.19) | (.15) | (.09) |
Net realized gains | (.45) | (.43) | (.10) | — |
Total distributions | (.73) | (.62) | (.25) | (.09) |
Redemption fees | .00*** | .00*** | .00*** | .00*** |
Net asset value, end of period | $ 10.21 | $ 12.21 | $ 11.45 | $ 10.78 |
Total Return (%)c,d,e | (11.09) | 12.26 | 8.61 | 8.70** |
Ratios to Average Net Assets and Supplemental Data | ||||
Net assets, end of period ($ millions) | 3 | 4 | 3 | 2 |
Ratio of expenses before expense reductions (%)f | 1.80 | 1.81 | 2.38 | 4.22* |
Ratio of expenses after expense reductions (%)f | 1.22 | 1.30 | 1.33 | 1.30* |
Ratio of net investment income (%) | .51 | .13 | .02 | (.29)* |
Portfolio turnover rate (%) | 30 | 20 | 63 | 28* |
a For the period from November 1, 2004 (commencement of sales of Class B shares) to August 31, 2005. b Based on average shares outstanding during the period. c Total return does not reflect the effect of any sales charge. d Total return would have been lower had certain expenses not been reduced. e Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized *** Amount is less than $.005. |
DWS LifeCompass 2030 Fund — Class C | ||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005a |
Selected Per Share Data | ||||
Net asset value, beginning of period | $ 12.21 | $ 11.44 | $ 10.77 | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .06 | .01 | .00*** | (.02) |
Net realized and unrealized gain (loss) | (1.33) | 1.38 | .92 | .88 |
Total from investment operations | (1.27) | 1.39 | .92 | .86 |
Less distributions from: Net investment income | (.28) | (.19) | (.15) | (.09) |
Net realized gains | (.45) | (.43) | (.10) | — |
Total distributions | (.73) | (.62) | (.25) | (.09) |
Redemption fees | .00*** | .00*** | .00*** | .00*** |
Net asset value, end of period | $ 10.21 | $ 12.21 | $ 11.44 | $ 10.77 |
Total Return (%)c,d,e | (11.09) | 12.35 | 8.62 | 8.60** |
Ratios to Average Net Assets and Supplemental Data | ||||
Net assets, end of period ($ millions) | 8 | 11 | 7 | 4 |
Ratio of expenses before expense reductions (%)f | 1.74 | 1.74 | 2.33 | 4.12* |
Ratio of expenses after expense reductions (%)f | 1.23 | 1.30 | 1.33 | 1.30* |
Ratio of net investment income (%) | .51 | .13 | .02 | (.29)* |
Portfolio turnover rate (%) | 30 | 20 | 63 | 28* |
a For the period from November 1, 2004 (commencement of sales of Class C shares) to August 31, 2005. b Based on average shares outstanding during the period. c Total return does not reflect the effect of any sales charge. d Total return would have been lower had certain expenses not been reduced. e Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized *** Amount is less than $.005. |
DWS LifeCompass 2030 Fund — Class S | ||||
Years Ended August 31, | 2008 | 2007 | 2006 | 2005a |
Selected Per Share Data | ||||
Net asset value, beginning of period | $ 12.29 | $ 11.51 | $ 10.84 | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .17 | .13 | .11 | .06 |
Net realized and unrealized gain (loss) | (1.33) | 1.40 | .92 | .89 |
Total from investment operations | (1.16) | 1.53 | 1.03 | .95 |
Less distributions from: Net investment income | (.41) | (.32) | (.26) | (.11) |
Net realized gains | (.45) | (.43) | (.10) | — |
Total distributions | (.86) | (.75) | (.36) | (.11) |
Redemption fees | .00*** | .00*** | .00*** | .00*** |
Net asset value, end of period | $ 10.27 | $ 12.29 | $ 11.51 | $ 10.84 |
Total Return (%)c,d | (10.23) | 13.54 | 9.69 | 9.49** |
Ratios to Average Net Assets and Supplemental Data | ||||
Net assets, end of period ($ millions) | 6 | 4 | 3 | 2 |
Ratio of expenses before expense reductions (%)e | .77 | .78 | 1.37 | 3.22* |
Ratio of expenses after expense reductions (%)e | .21 | .30 | .33 | .30* |
Ratio of net investment income (%) | 1.52 | 1.13 | 1.02 | .71* |
Portfolio turnover rate (%) | 30 | 20 | 63 | 28* |
a For the period from November 1, 2004 (commencement of sales of Class S shares) to August 31, 2005. b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized *** Amount is less than $.005. |
DWS LifeCompass 2040 Fund — Class A | |
Year Ended August 31, | 2008a |
Selected Per Share Data | |
Net asset value, beginning of period | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .06 |
Net realized and unrealized gain (loss) | (.96) |
Total from investment operations | (.90) |
Less distributions from: Net investment income | (.33) |
Net asset value, end of period | $ 8.77 |
Total Return (%)c,d,e | (9.24)** |
Ratios to Average Net Assets and Supplemental Data | |
Net assets, end of period ($ millions) | 2 |
Ratio of expenses before expense reductions (%)f | 7.14* |
Ratio of expenses after expense reductions (%)f | .49* |
Ratio of net investment income (%) | .86* |
Portfolio turnover rate (%) | 17** |
a For the period from November 15, 2007 (commencement of operations) to August 31, 2008. b Based on average shares outstanding during the period. c Total return does not reflect the effect of any sales charge. d Total return would have been lower had certain expenses not been reduced. e Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized |
DWS LifeCompass 2040 Fund — Class C | |
Year Ended August 31, | 2008a |
Selected Per Share Data | |
Net asset value, beginning of period | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .01 |
Net realized and unrealized gain (loss) | (.96) |
Total from investment operations | (.95) |
Less distributions from: Net investment income | (.32) |
Net asset value, end of period | $ 8.73 |
Total Return (%)c,d,e | (9.54)** |
Ratios to Average Net Assets and Supplemental Data | |
Net assets, end of period ($ millions) | .3 |
Ratio of expenses before expense reductions (%)f | 7.87* |
Ratio of expenses after expense reductions (%)f | 1.24* |
Ratio of net investment income (%) | .11* |
Portfolio turnover rate (%) | 17** |
a For the period from November 15, 2007 (commencement of operations) to August 31, 2008. b Based on average shares outstanding during the period. c Total return does not reflect the effect of any sales charge. d Total return would have been lower had certain expenses not been reduced. e Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. f The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized |
DWS LifeCompass 2040 Fund — Class S | |
Year Ended August 31, | 2008a |
Selected Per Share Data | |
Net asset value, beginning of period | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .08 |
Net realized and unrealized gain (loss) | (.96) |
Total from investment operations | (.88) |
Less distributions from: Net investment income | (.33) |
Net asset value, end of period | $ 8.79 |
Total Return (%)c,d | (9.11)** |
Ratios to Average Net Assets and Supplemental Data | |
Net assets, end of period ($ millions) | 2 |
Ratio of expenses before expense reductions (%)e | 6.98* |
Ratio of expenses after expense reductions (%)e | .24* |
Ratio of net investment income (%) | 1.11* |
Portfolio turnover rate (%) | 17** |
a For the period from November 15, 2007 (commencement of operations) to August 31, 2008. b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. e The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized |
A. Significant Accounting Policies
DWS LifeCompass Retirement Fund (formerly DWS Conservative Allocation Fund), DWS LifeCompass 2015 Fund (formerly DWS Moderate Allocation Fund), DWS LifeCompass 2020 Fund (formerly DWS Growth Allocation Fund), DWS LifeCompass 2030 Fund (formerly DWS Growth Plus Allocation Fund) and DWS LifeCompass 2040 Fund (hereinafter referred to individually as "Fund" or collectively as "Funds") are each a diversified series of DWS Target Date Series (formerly DWS Allocation Series) (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 Funds invest mainly in other existing DWS funds (the "Underlying DWS Funds") and non-affiliated investment management companies (e.g., Exchange Traded Funds). Each Underlying DWS Fund's accounting policies and investment holdings are outlined in the Underlying DWS Fund's financial statements and are available upon request.
Each Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are offered to investors subject to an initial sales charge. Class B shares are offered to investors without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions. Class B shares automatically convert to Class A shares six years after issuance. Class C shares are offered to investors without an initial sales charge 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. Class S shares are not subject to initial or contingent deferred sales charges and are generally not available to new investors except under certain circumstances.
Investment income, realized and unrealized gains and losses, and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as services to shareholders, distribution and service fees and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of each Fund have equal rights with respect to voting subject to class-specific arrangements.
The Funds' 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 each Fund in the preparation of its financial statements.
Security Valuation. Investments in the Underlying DWS Funds are valued at the net asset value per share of each class of the Underlying DWS Fund as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.
Exchange traded funds ("ETFs") are valued at the most recent sale price or official closing price reported on the exchange on which the ETFs are traded most extensively. ETFs 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.
New Accounting Pronouncements. In September 2006, the Financial Accounting Standards Board ("FASB") released Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. As of August 31, 2008, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the levels of inputs used to develop the measurements of fair value and the effect of certain of the measurements reported in the statement of operations for a fiscal period.
Federal Income Taxes. Each 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. Each Fund is treated as a single corporate taxpayer.
At August 31, 2008, DWS LifeCompass Retirement Fund had a net tax basis capital loss carryforward of approximately $38,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until August 31, 2012, the expiration date, whichever occurs first. During the year ended August 31, 2008 the Fund utilized $3,229,000 of prior year capital loss carryforward.
At August 31, 2008, DWS LifeCompass 2015 Fund had a net tax basis capital loss carryforward of approximately $7,136,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until August 31, 2012, the expiration date, whichever occurs first. During the year ended August 31, 2008 the Fund utilized $12,792,000 of prior year capital loss carryforward.
During the year ended August 31, 2008, DWS LifeCompass 2020 Fund utilized $16,829,000 of prior year capital loss carryforward.
The Funds have reviewed the tax positions for the open tax years as of August 31, 2008 and have determined that no provision for income tax is required in the Funds' financial statements. The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Distribution of Income and Gains. Net investment income from DWS LifeCompass Retirement Fund and DWS LifeCompass 2015 Fund, if any, is declared and distributed to shareholders quarterly. Net investment income from DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund, if any, is declared and distributed to shareholders annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to each Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. An additional distribution may be made to the extent necessary to avoid payment of a four percent federal excise tax.
The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to investments sold at a loss. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, each Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of a Fund.
At August 31, 2008, DWS LifeCompass Retirement Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 817,201 |
Capital loss carryforwards | $ (38,000) |
Net unrealized appreciation (depreciation) on investments | $ (8,948,168) |
In addition, during the years ended August 31, 2008 and August 31, 2007, the tax character of distributions paid to shareholders by DWS LifeCompass Retirement Fund is summarized as follows:
| Years Ended August 31, | |
| 2008 | 2007 |
Distributions from ordinary income* | $ 5,039,493 | $ 6,952,793 |
At August 31, 2008, DWS LifeCompass 2015 Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 1,087,801 |
Capital loss carryforwards | $ (7,136,000) |
Net unrealized appreciation (depreciation) on investments | $ (21,992,278) |
In addition, during the years ended August 31, 2008 and August 31, 2007, the tax character of distributions paid to shareholders by DWS LifeCompass 2015 Fund is summarized as follows:
| Years Ended August 31, | |
| 2008 | 2007 |
Distributions from ordinary income* | $ 9,974,136 | $ 16,555,303 |
At August 31, 2008, DWS LifeCompass 2020 Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 4,581,908 |
Undistributed long-term capital gains | $ 1,485,163 |
Net unrealized appreciation (depreciation) on investments | $ (20,055,419) |
In addition, during the years ended August 31, 2008 and August 31, 2007, the tax character of distributions paid to shareholders by DWS LifeCompass 2020 Fund is summarized as follows:
| Years Ended August 31, | |
| 2008 | 2007 |
Distributions from ordinary income* | $ 11,046,385 | $ 8,838,650 |
At August 31, 2008, DWS LifeCompass 2030 Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 128,582 |
Undistributed net long-term capital gains | $ 1,824,270 |
Net unrealized appreciation (depreciation) on investments | $ (5,681,937) |
In addition, during the years ended August 31, 2008 and August 31, 2007 the tax character of distributions paid to shareholders by DWS LifeCompass 2030 Fund is summarized as follows:
| Years Ended August 31, | |
| 2008 | 2007 |
Distributions from ordinary income* | $ 1,242,316 | $ 1,159,939 |
Distributions from long-term capital gains | $ 1,592,530 | $ 529,135 |
At August 31, 2008, DWS LifeCompass 2040 Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 9,749 |
Undistributed net long-term capital gains | $ 58,179 |
Net unrealized appreciation (depreciation) on investments | $ (308,141) |
In addition, during the period ended August 31, 2008 the tax character of distributions paid to shareholders by DWS LifeCompass 2040 Fund is summarized as follows:
| Period Ended August 31, | |
| 2008 | |
Distributions from ordinary income* | $42,592 |
Offering Costs. Offering costs for DWS LifeCompass 2040 Fund were paid in connection with the offering of shares and are being amortized over one year.
Contingencies. In the normal course of business, the Funds may enter into contracts with service providers that contain general indemnification clauses. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet been made. However, based on experience, the Funds expect the risk of loss to be remote.
Redemption Fees. Prior to April 1, 2008, each Fund imposed 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 was assessed and retained by the Funds for the benefit of the remaining shareholders. The redemption fee was accounted for as an addition to paid-in capital.
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. Distributions of income and capital gains from the Underlying DWS Funds are recorded on the ex-dividend date. Dividend income is recorded on the ex-dividend date. Realized gains and losses from investment transactions are recorded on an identified cost basis.
B. Related Parties
Management Agreement. Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor directs the investments of each Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments in Underlying DWS Funds to be purchased, sold or entered into by each Fund. The Advisor has agreed not to be paid a management fee for performing its services for the Funds. However, the Advisor will receive management fees from managing the Underlying DWS Funds in which each Fund invests.
The Funds do not invest in the Underlying DWS Funds for the purpose of exercising management or control; however, investments within the set limits may represent 5% or more of an Underlying DWS Fund's net assets. At August 31, 2008, DWS LifeCompass Retirement Fund held the following Underlying DWS Funds' outstanding shares: approximately 5% of DWS Disciplined Long/Short Value Fund, 28% of DWS Floating Rate Plus Fund and 5% of DWS International Value Opportunities Fund. At August 31, 2008, DWS LifeCompass 2015 Fund held the following Underlying DWS Funds' outstanding shares: approximately 13% of DWS Disciplined Long/Short Value Fund, 9% of DWS Floating Rate Plus Fund, 15% of DWS International Value Opportunities Fund and 5% of DWS Small Cap Core Fund. At August 31, 2008, DWS LifeCompass 2020 Fund held the following Underlying DWS Funds' outstanding shares: approximately 13% of DWS Disciplined Long/Short Value Fund, 5% of DWS Equity Partners Fund, 15% of DWS International Value Opportunities Fund, 9% of DWS Small Cap Core Fund and 7% of DWS Floating Rate Plus Fund. At August 31, 2008, DWS LifeCompass 2030 Fund held the following Underlying DWS Funds' outstanding shares: approximately 5% of DWS Disciplined Long/Short Value Fund. At August 31, 2008, DWS LifeCompass 2040 Fund did not invest in more than 5% of any Underlying DWS Funds.
For the period from September 1, 2007, through November 14, 2007, the Advisor had contractually agreed to reimburse or pay certain operating expenses to the extent necessary to maintain DWS LifeCompass Retirement Fund's, DWS LifeCompass 2015 Fund's, DWS LifeCompass 2020 Fund's and DWS LifeCompass 2030 Fund's operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and indirect expenses of Underlying DWS Funds) as a percentage of average daily net assets as follows:
| LifeCompass Retirement Fund | LifeCompass 2015 Fund | LifeCompass 2020 Fund | LifeCompass 2030 Fund |
Class A | .67% | .65% | .65% | .55% |
Class B | 1.42% | 1.40% | 1.40% | 1.30% |
Class C | 1.42% | 1.40% | 1.40% | 1.30% |
Class S | .39% | .37% | .40% | .30% |
Effective November 15, 2007 through November 30, 2008, the Advisor has contractually agreed to reimburse or pay certain operating expenses to the extent necessary to maintain DWS LifeCompass Retirement Fund's, DWS LifeCompass 2015 Fund's, DWS LifeCompass 2020 Fund's, DWS LifeCompass 2030 Fund's and DWS LifeCompass 2040 Fund's operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and indirect expenses of Underlying DWS Funds) as a percentage of average daily net assets as follows:
| LifeCompass Retirement Fund | LifeCompass 2015 Fund | LifeCompass 2020 Fund | LifeCompass 2030 Fund | LifeCompass 2040 Fund |
Class A | .52% | .48% | .49% | .45% | .49% |
Class B | 1.27% | 1.23% | 1.24% | 1.20% | — |
Class C | 1.27% | 1.23% | 1.24% | 1.20% | 1.24% |
Class S | .27% | .23% | .24% | .20% | .24% |
Each Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying DWS Funds and exchange traded funds in which it is invested.
In addition, for the year ended August 31, 2008 and for the period from November 15, 2007 (commencement of operations) to August 31, 2008, the Advisor reimbursed DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund $100,286 and $122,671, respectively, of other expenses.
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Funds. For all services provided under the Administrative Services Agreement, the Funds pay the Advisor an annual fee ("Administration Fee") of 0.10% of each Fund's average daily net assets computed and accrued daily and payable monthly. For the year ended August 31, 2008 and for the period from November 15, 2007 (commencement of operations) to August 31, 2008 for DWS LifeCompass 2040, DIMA received an Administration Fee for each Fund as follows:
Administration Fee | Total Aggregated | Waived | Unpaid at August 31, 2008 |
DWS LifeCompass Retirement Fund | $ 139,294 | $ — | $ 10,509 |
DWS LifeCompass 2015 Fund | $ 285,134 | $ — | $ 20,729 |
DWS LifeCompass 2020 Fund | $ 295,606 | $ — | $ 22,510 |
DWS LifeCompass 2030 Fund | $ 41,077 | $ 41,077 | $ — |
DWS LifeCompass 2040 Fund | $ 1,882 | $ 1,882 | $ — |
Service Provider Fees. DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Funds. Pursuant to a sub-transfer agency agreement between DISC and DST Systems, Inc. ("DST"), DISC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the shareholder servicing fee it receives from the Funds. For the year ended August 31, 2008 and for the period from November 15, 2007 (commencement of operations) to August 31, 2008 for DWS LifeCompass 2040 Fund, the amounts charged to the Funds by DISC were as follows:
Services to Shareholders | Total Aggregated | Waived | Unpaid at August 31, 2008 |
DWS LifeCompass Retirement Fund | |||
Class A | $ 76,678 | $ 52,496 | $ 7,168 |
Class B | 9,453 | 7,817 | 1,314 |
Class C | 11,308 | 11,308 | — |
Class S | 134,740 | 109,528 | 7,543 |
| $ 232,179 | $ 181,149 | $ 16,025 |
DWS LifeCompass 2015 Fund | |||
Class A | $ 227,521 | $ 141,517 | $ 20,122 |
Class B | 32,523 | 25,845 | 1,765 |
Class C | 36,313 | 24,468 | 2,714 |
Class S | 244,518 | 166,445 | 26,408 |
| $ 540,875 | $ 358,275 | $ 51,009 |
DWS LifeCompass 2020 Fund | |||
Class A | $ 191,499 | $ 124,960 | $ 13,570 |
Class B | 40,993 | 37,330 | 1,699 |
Class C | 47,755 | 40,080 | 2,007 |
Class S | 347,286 | 249,172 | 35,119 |
| $ 627,533 | $ 451,542 | $ 52,395 |
DWS LifeCompass 2030 Fund | |||
Class A | $ 38,633 | $ 35,956 | $ — |
Class B | 7,089 | 7,089 | — |
Class C | 14,829 | 14,829 | — |
Class S | 11,594 | 11,594 | — |
| $ 72,145 | $ 69,468 | $ — |
DWS LifeCompass 2040 Fund | |||
Class A | $ 1,060 | $ 126 | $ 420 |
Class C | 242 | 13 | 99 |
Class S | 3,386 | 1,468 | 1,417 |
| $ 4,688 | $ 1,607 | $ 1,936 |
Distribution and Service Fees. Under the Funds' Class B and Class C 12b-1 Plans, DWS Investments Distributors, Inc. ("DIDI"), an affiliate of the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net assets of each of Class B and C shares. In accordance with the Funds' Underwriting and Distribution Services Agreements, DIDI enters into related selling group agreements with various firms at various rates for sales of Class B and C shares. For the year ended August 31, 2008 and for the period from November 15, 2007 (commencement of operations) to August 31, 2008 for DWS LifeCompass 2040 Fund, the Distribution Fees were as follows:
Distribution Fees | Total Aggregated | Unpaid at August 31, 2008 |
DWS LifeCompass Retirement Fund | ||
Class B | $ 52,624 | $ 3,607 |
Class C | 104,092 | 8,031 |
| $ 156,716 | $ 11,638 |
DWS LifeCompass 2015 Fund | ||
Class B | $ 155,675 | $ 11,185 |
Class C | 249,746 | 18,365 |
| $ 405,421 | $ 29,550 |
DWS LifeCompass 2020 Fund | ||
Class B | $ 190,767 | $ 13,753 |
Class C | 268,041 | 18,576 |
| $ 458,808 | $ 32,329 |
DWS LifeCompass 2030 Fund | ||
Class B | $ 26,006 | $ 1,790 |
Class C | 73,257 | 4,805 |
| $ 99,263 | $ 6,595 |
DWS LifeCompass 2040 Fund | ||
Class C | $ 981 | $ 164 |
In addition, DIDI provides information and administrative services for a fee ("Service Fee") to Classes A, B and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. DIDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the year ended August 31, 2008, and for the period from November 15, 2007 (commencement of operations) to August 31, 2008 for DWS LifeCompass 2040 Fund, the Service Fees were as follows:
Service Fees | Total Aggregated | Waived | Unpaid at August 31, 2008 | Annual Effective Rate |
DWS LifeCompass Retirement Fund | ||||
Class A | $ 93,092 | $ — | $ 7,296 | .23% |
Class B | 17,266 | — | 956 | .25% |
Class C | 34,452 | 692 | 3,407 | .24% |
| $ 144,810 | $ 692 | $ 11,659 |
|
DWS LifeCompass 2015 Fund | ||||
Class A | $ 273,509 | $ — | $ 17,422 | .24% |
Class B | 51,400 | — | 2,770 | .25% |
Class C | 82,339 | — | 5,058 | .25% |
| $ 407,248 | $ — | $ 25,250 |
|
DWS LifeCompass 2020 Fund | ||||
Class A | $ 217,505 | $ — | $ 16,609 | .24% |
Class B | 63,008 | — | 4,700 | .25% |
Class C | 88,640 | — | 5,352 | .25% |
| $ 369,153 | $ — | $ 26,661 |
|
DWS LifeCompass 2030 Fund | ||||
Class A | $ 51,240 | $ — | $ 5,512 | .24% |
Class B | 8,647 | 370 | 73 | .24% |
Class C | 24,252 | 1,022 | 632 | .24% |
| $ 84,139 | $ 1,392 | $ 6,217 |
|
DWS LifeCompass 2040 Fund | ||||
Class A | $ 951 | $ — | $ — | .20% |
Class C | 293 | — | — | .22% |
| $ 1,244 | $ — | $ — |
|
Underwriting Agreement and Contingent Deferred Sales Charge. DIDI is the principal underwriter for the Funds. Underwriting commissions paid in connection with the distribution of Class A shares for the year ended August 31, 2008 for DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and for the period from November 15, 2007 (commencement of operations) to August 31, 2008 for DWS LifeCompass 2040 Fund aggregated $5,868, $12,246, $17,457, $9,567 and $753, respectively.
In addition, DIDI receives any contingent deferred sales charge ("CDSC") from Class B share redemptions occurring within six years of purchase and Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is based on declining rates, ranging from 4% to 1% for Class B and 1% for Class C, of the value of the shares redeemed. For the year ended August 31, 2008, the CDSC for Class B and Class C shares aggregated $18,842, $64,040, $62,387 and $24,610, respectively, for DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares. For the year ended August 31, 2008 DIDI received $2,367 and $284 for Class A shares of DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund, respectively. There were no CDSC charged for DWS LifeCompass 2040 Fund for the period from November 15, 2007 (commencement of operations) to August 31, 2008.
Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Funds. For the year ended August 31, 2008 and for the period from November 15, 2007 (commencement of operations) to August 31, 2008 for DWS LifeCompass 2040 Fund, the amounts charged to the Funds by DIMA included the Statement of Operations under "reports to shareholders" were as follows:
Typesetting and Filing Service Fees | Total Aggregated | Unpaid at August 31, 2008 |
DWS LifeCompass Retirement Fund | $ 26,406 | $ 18,235 |
DWS LifeCompass 2015 Fund | $ 22,587 | $ 16,514 |
DWS LifeCompass 2020 Fund | $ 11,192 | $ 9,712 |
DWS LifeCompass 2030 Fund | $ 12,732 | $ 9,548 |
DWS LifeCompass 2040 Fund | $ 7,326 | $ 3,826 |
Trustees' Fees and Expenses. The Funds paid each Trustee not affiliated with the Advisor retainer fees plus specified amounts for various committee services and for the Board Chairperson and Vice Chairperson.
In connection with the board consolidation on April 1, 2008, of the two DWS Funds Boards of Trustees, certain Independent Board Members retired prior to their normal retirement date, and received a one-time retirement benefit. DIMA has agreed to reimburse the Funds for the cost of this benefit. During the period ended August 31, 2008, each Fund paid its allocated portion, as follows, of the retirement benefit to the non-continuing Independent Board Members, and each Fund was reimbursed by DIMA for this payment.
Trustees' Fees and Expenses | Amount |
DWS LifeCompass Retirement Fund | $ 729 |
DWS LifeCompass 2015 Fund | $ 1,464 |
DWS LifeCompass 2020 Fund | $ 1,508 |
DWS LifeCompass 2030 Fund | $ 202 |
DWS LifeCompass 2040 Fund | $ 9 |
Cash Management QP Trust. Pursuant to an Exemptive Order issued by the SEC, each Fund may invest in the Cash Management QP Trust (the "QP Trust") and other affiliated funds managed by the Advisor. The QP Trust seeks to provide as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity. The QP Trust does not pay the Advisor a management fee for the affiliated funds' investments in the QP Trust.
C. Line of Credit
The Funds and other affiliated funds (the "Participants") share in a $490 million revolving credit facility provided by a syndication of banks. The Funds may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at the Federal Funds Rate plus 0.35 percent. The Funds, other than DWS LifeCompass 2040 Fund, may borrow up to a maximum of 33 percent of its net assets under the agreement. DWS LifeCompass 2040 Fund may borrow up to a maximum of 10 percent of its net assets under the agreement.
D. Fee Reductions
The Funds have entered into arrangements with their custodian and transfer agent whereby credits realized as a result of uninvested cash balances were used to reduce a portion of the Funds' custodian expenses. During the year ended August 31, 2008 for DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund, and for the period from November 15, 2007 (commencement of operations) to August 31, 2008 for DWS LifeCompass 2040 Fund, the custodian fees were reduced by $1,187, $3,346, $2,723, $333 and $8, respectively, for transfer agent credits earned.
E. Share Transactions
DWS LifeCompass Retirement Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2008 | Year Ended August 31, 2007 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 1,079,233 | $ 13,320,784 | 1,494,182 | $ 18,736,453 |
Class B | 74,717 | 931,300 | 156,770 | 1,962,212 |
Class C | 217,198 | 2,692,653 | 474,818 | 5,969,959 |
Class S | 1,342,495 | 16,617,239 | 991,044 | 12,443,145 |
|
| $ 33,561,976 |
| $ 39,111,769 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 108,477 | $ 1,303,852 | 156,187 | $ 1,944,024 |
Class B | 14,317 | 171,653 | 21,553 | 268,841 |
Class C | 27,925 | 334,360 | 30,584 | 381,361 |
Class S | 229,106 | 2,751,264 | 294,083 | 3,659,015 |
|
| $ 4,561,129 |
| $ 6,253,241 |
Shares redeemed | ||||
Class A | (1,968,943) | $ (24,302,650) | (1,232,422) | $ (15,435,446) |
Class B | (246,607) | (3,008,916) | (156,675) | (1,964,747) |
Class C | (271,636) | (3,327,649) | (314,844) | (3,943,867) |
Class S | (1,886,154) | (23,112,775) | (1,349,596) | (16,892,561) |
|
| $ (53,751,990) |
| $ (38,236,621) |
Redemption fees | $ 1,288 |
| $ 5,017 | |
Net increase (decrease) | ||||
Class A | (781,233) | $ (9,677,748) | 417,947 | $ 5,246,702 |
Class B | (157,573) | (1,905,928) | 21,648 | 266,306 |
Class C | (26,513) | (299,649) | 190,558 | 2,410,413 |
Class S | (314,553) | (3,744,272) | (64,469) | (790,015) |
|
| $ (15,627,597) |
| $ 7,133,406 |
DWS LifeCompass 2015 Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2008 | Year Ended August 31, 2007 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 2,793,268 | $ 34,226,863 | 4,335,979 | $ 54,378,590 |
Class B | 107,873 | 1,309,895 | 287,185 | 3,600,474 |
Class C | 266,210 | 3,224,780 | 565,197 | 7,043,723 |
Class S | 1,448,331 | 17,413,396 | 1,643,791 | 20,574,889 |
|
| $ 56,174,934 |
| $ 85,597,676 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 332,227 | $ 3,830,892 | 477,456 | $ 5,927,348 |
Class B | 47,693 | 546,007 | 78,378 | 974,497 |
Class C | 72,031 | 824,794 | 109,006 | 1,355,099 |
Class S | 376,277 | 4,340,690 | 618,370 | 7,661,428 |
|
| $ 9,542,383 |
| $ 15,918,372 |
Shares redeemed | ||||
Class A | (4,891,135) | $ (59,575,850) | (3,037,130) | $ (38,071,583) |
Class B | (496,366) | (5,942,322) | (444,075) | (5,551,461) |
Class C | (744,239) | (8,933,093) | (526,345) | (6,583,476) |
Class S | (3,666,216) | (44,694,525) | (3,244,684) | (40,399,732) |
|
| $ (119,145,790) |
| $ (90,606,252) |
Redemption fees | $ 737 |
| $ 2,719 | |
Net increase (decrease) | ||||
Class A | (1,765,640) | $ (21,517,624) | 1,776,305 | $ 22,236,001 |
Class B | (340,800) | (4,086,237) | (78,512) | (976,377) |
Class C | (405,998) | (4,883,513) | 147,858 | 1,816,294 |
Class S | (1,841,608) | (22,940,362) | (982,523) | (12,163,403) |
|
| $ (53,427,736) |
| $ 10,912,515 |
DWS LifeCompass 2020 Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2008 | Year Ended August 31, 2007 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 2,034,149 | $ 30,034,798 | 2,111,487 | $ 32,198,668 |
Class B | 120,657 | 1,763,862 | 239,514 | 3,616,053 |
Class C | 234,765 | 3,461,988 | 551,083 | 8,290,859 |
Class S | 1,415,901 | 21,025,875 | 1,274,652 | 19,476,211 |
|
| $ 56,286,523 |
| $ 63,581,791 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 211,265 | $ 3,192,197 | 169,251 | $ 2,538,768 |
Class B | 48,180 | 724,629 | 37,797 | 564,312 |
Class C | 62,094 | 933,929 | 44,908 | 670,479 |
Class S | 378,043 | 5,712,244 | 313,152 | 4,697,277 |
|
| $ 10,562,999 |
| $ 8,470,836 |
Shares redeemed | ||||
Class A | (2,503,854) | $ (37,395,180) | (1,858,294) | $ (28,297,125) |
Class B | (429,207) | (6,220,299) | (451,650) | (6,798,971) |
Class C | (662,539) | (9,553,963) | (516,545) | (7,845,671) |
Class S | (2,258,811) | (33,469,266) | (2,500,366) | (38,162,551) |
|
| $ (86,638,708) |
| $ (81,104,318) |
Redemption fees | $ 349 |
| $ 13,575 | |
Net increase (decrease) | ||||
Class A | (258,440) | $ (4,168,139) | 422,444 | $ 6,440,890 |
Class B | (260,370) | (3,731,788) | (174,339) | (2,618,584) |
Class C | (365,680) | (5,157,969) | 79,446 | 1,115,820 |
Class S | (464,867) | (6,730,941) | (912,562) | (13,976,242) |
|
| $ (19,788,837) |
| $ (9,038,116) |
DWS LifeCompass 2030 Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2008 | Year Ended August 31, 2007 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 1,030,534 | $ 11,597,876 | 971,807 | $ 11,826,317 |
Class B | 57,408 | 661,380 | 104,628 | 1,279,447 |
Class C | 144,619 | 1,629,579 | 362,985 | 4,408,201 |
Class S | 400,749 | 4,576,276 | 248,927 | 3,118,140 |
|
| $ 18,465,111 |
| $ 20,632,105 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 125,384 | $ 1,450,857 | 72,947 | $ 868,797 |
Class B | 17,887 | 207,126 | 12,667 | 150,864 |
Class C | 53,338 | 617,125 | 33,549 | 399,566 |
Class S | 35,109 | 406,252 | 16,133 | 192,140 |
|
| $ 2,681,360 |
| $ 1,611,367 |
Shares redeemed | ||||
Class A | (635,720) | $ (7,153,549) | (560,906) | $ (6,881,963) |
Class B | (106,755) | (1,173,459) | (50,427) | (615,971) |
Class C | (380,962) | (4,187,675) | (95,048) | (1,156,858) |
Class S | (121,766) | (1,343,737) | (197,943) | (2,349,346) |
|
| $ (13,858,420) |
| $ (11,004,138) |
Redemption fees | $ 90 |
| $ 169 | |
Net increase (decrease) | ||||
Class A | 520,198 | $ 5,895,184 | 483,848 | $ 5,813,220 |
Class B | (31,460) | (304,953) | 66,868 | 814,345 |
Class C | (183,005) | (1,940,881) | 301,486 | 3,650,915 |
Class S | 314,092 | 3,638,791 | 67,117 | 961,023 |
|
| $ 7,288,141 |
| $ 11,239,503 |
DWS LifeCompass 2040 Fund
The following table summarizes share and dollar activity in the Fund:
| Period Ended August 31, 2008* | |
| Shares | Dollars |
Shares sold | ||
Class A | 204,791 | $ 1,845,925 |
Class C | 23,151 | 210,057 |
Class S | 269,687 | 2,528,193 |
|
| $ 4,584,175 |
Shares issued to shareholders in reinvestment of distributions | ||
Class A | 570 | $ 5,583 |
Class C | 217 | 2,130 |
Class S | 3,559 | 34,879 |
|
| $ 42,592 |
Shares redeemed | ||
Class A | (2,747) | $ (25,280) |
Class S | (40,721) | (360,242) |
|
| $ (385,522) |
Net increase (decrease) | ||
Class A | 202,614 | $ 1,826,228 |
Class C | 23,368 | 212,187 |
Class S | 232,525 | 2,202,830 |
|
| $ 4,241,245 |
Initial Capital | ||
Class A | 6,667 | $ 66,667 |
Class C | 6,666 | 66,666 |
Class S | 6,667 | 66,667 |
|
| $ 200,000 |
Report of Independent Registered Public Accounting Firm
To the Trustees of DWS Target Date Series (formerly DWS Allocation Series) and the Shareholders of DWS LifeCompass Retirement Fund (formerly DWS Conservative Allocation Fund), DWS LifeCompass 2015 Fund (formerly DWS Moderate Allocation Fund), DWS LifeCompass 2020 Fund (formerly DWS Growth Allocation Fund), DWS LifeCompass 2030 Fund (formerly DWS Growth Plus Allocation Fund) and DWS LifeCompass 2040 Fund:
In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund, respectively (the five funds constituting DWS Target Date Series) (the "Trust") at August 31, 2008 and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2008 by correspondence with the custodian and transfer agent, provide a reasonable basis for our opinion.
Boston, Massachusetts | PricewaterhouseCoopers LLP |
The DWS LifeCompass 2030 Fund paid distributions of $0.449 per share from net long-term capital gains during its year ended August 31, 2008, of which 100% represents 15% rate gains.
Pursuant to Section 852 of the Internal Revenue Code, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund designate $1,634,000, $2,167,000 and $64,000, respectively, as capital gain dividends for its fiscal year ended August 31, 2008, of which 100% represents 15% rate gains.
For corporate shareholders, 100% of the income dividends paid during the fiscal year ended August 31, 2008, for DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund qualified for the dividends received deduction.
For federal income tax purposes, DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund designate $5,423,000, $8,732,000, $7,738,000, $754,000 and $26,000, respectively, or the maximum amount allowable under tax law, as qualified dividend income.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800) 621-1048.
Summary of Management Fee Evaluation by Independent Fee Consultant
DWS LifeCompass Retirement Fund
DWS LifeCompass 2015 Fund
DWS LifeCompass 2020 Fund
DWS LifeCompass 2030 Fund
October 26, 2007
Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively, "DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Scudder Funds. My duties include preparing an annual written evaluation of the management fees DeAM charges the Funds, considering among other factors the management fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for like services, DeAM's costs of supplying services under the management agreements and related profit margins, possible economies of scale if a Fund grows larger, and the nature and quality of DeAM's services, including fund performance. This report summarizes my evaluation for 2007, including my qualifications, the evaluation process for each of the DWS Scudder Funds, consideration of certain complex-level factors, and my conclusions.
Qualifications
For more than 30 years I have served in various professional capacities within the investment management business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist and director of investment policy with a large investment firm. I have also performed business management functions, including business development, financial management and marketing research and analysis.
Since 1991, I have been an independent consultant within the asset management industry. I have provided services to over 125 client organizations, including investment managers, mutual fund boards, product distributors and related organizations. Over the past several years I have completed a number of assignments for mutual fund boards, specifically including assisting boards with management contract renewal.
I hold a Master of Business Administration degree, with highest honors, from Harvard University; and Master of Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an independent director and audit committee financial expert for two closed-end mutual funds, serve on the board of directors of a private market research company, and have served in various leadership and financial oversight capacities with non-profit organizations.
Evaluation of Fees for each DWS Scudder Fund
My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 136 Fund portfolios in the DWS Scudder Fund family. For each Fund, I considered each of the key factors mentioned above, as well as any other relevant information. In doing so I worked closely with the Funds' Independent Directors in their annual contract renewal process, as well as in their approval of contracts for several new funds (documented separately).
In evaluating each Fund's fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including expense information prepared by Lipper Analytical, comparative performance information, profitability data, manager histories, and other materials. I also accessed certain additional information from the Lipper, Strategic Insight, and Morningstar databases and drew on my industry knowledge and experience.
To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing the key data elements in each area as well as additional analytics discussed below. This made it possible to consider each key data element in the context of the others.
In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation includes the effects of these changes.
Fees and Expenses Compared with Other Funds
The competitive fee and expense evaluation for each fund focused on two primary comparisons:
The Fund's contractual management fee (the advisory fee plus the administration fee where applicable) compared with those of a group of typically 12-15 funds in the same Lipper investment category (e.g. Large Capitalization Growth) having similar distribution arrangements and being of similar size.
The Fund's total expenses compared with a broader universe of funds from the same Lipper investment category and having similar distribution arrangements.
These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but also the total expense the Fund bears for all the services it receives, in comparison with the investment choices available in the Fund's investment category and distribution channel. The principal figure-of-merit used in these comparisons was the subject Fund's percentile ranking against peers.
DeAM's Fees for Similar Services to Others
DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment management accounts in any of the investment categories where there is a DWS Scudder Fund. These similar products included the other DWS Scudder Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts. Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the subject Fund's asset level.
Evaluating information regarding non-fund products is difficult because there are varying levels of services required for different types of accounts, with mutual funds generally requiring considerably more regulatory and administrative types of service as well as having more frequent cash flows than other types of accounts. Also, while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable insurance products), differences in underlying investment processes and other factors.
Costs and Profit Margins
DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the presentation would be more comparable to the available industry figures, I reviewed profit margins from investment management alone, from investment management plus other fund services (excluding distribution) provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including distribution. A later section comments on overall profitability.
Economies of Scale
Economies of scale — an expected decline in management cost per dollar of fund assets as fund assets grow — are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and lower total expenses than smaller funds. To see how each DWS Scudder Fund compares with this industry observation, I reviewed:
The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have declined as a percent of assets.
Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the Fund's break-points compare with those of the sub-advisory fee schedule.
How the Fund's contractual fee schedule compares with trends in the industry data. To accomplish this, I constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar funds relate to average fund assets, with the subject Fund's contractual fee schedule superimposed.
Quality of Service — Performance
The quality-of-service evaluation focused on investment performance, which is the principal result of the investment management service. Each Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as applicable, and compared with that of other funds in the same investment category and with a suitable market index.
In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds' returns and a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the Fund's return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively taking considerably more or less risk than is typical in its investment category.
I also received and considered the history of portfolio manager changes for each Fund, as this provided an important context for evaluating the performance results.
Complex-Level Considerations
While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the reasonableness of fees that can alternatively be considered across the whole fund complex:
I reviewed DeAM's profitability analysis for all DWS Scudder funds, with a view toward determining if the allocation procedures used were reasonable and how profit levels compared with public data for other investment managers.
I considered whether DeAM and affiliates receive any significant ancillary or "fall-out" benefits that should be considered in interpreting the direct profitability results. These would be situations where serving as the investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.
I considered how aggregated DWS Scudder Fund expenses had varied over the years, by asset class and in the context of trends in asset levels.
I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation of investment management and other professionals compared with industry data.
Findings
Based on the process and analysis discussed above, which included reviewing a wide range of information from management and external data sources and considering among other factors the fees DeAM charges other clients, the fees charged by other fund managers, DeAM's costs and profits associated with managing the Funds, economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the management fees charged the DWS Scudder Funds are reasonable.
DWS LifeCompass 2040 Fund
Pursuant to an Order entered into by Deutsche Asset Management (DeAM) with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Scudder Funds and have as part of my duties evaluated the reasonableness of the management fees charged by DeAM to the DWS LifeCompass 2040 Fund. My evaluation considered the following:
• Management fees charged by other mutual fund companies for like services, which included review of the management fees of the 29 other open-end fund of funds in the Lipper Mixed-Target Allocation 2030+ category (excluding any master-feeder, hub/spoke and underlying ETF funds, which in my opinion may have non-comparable fee structures). Also considered were the total expenses of the 39 Mixed-Target Allocation 2030+ funds offering standard A shares, including any underlying fund expenses.
• Management fees charged to institutional and other clients of DeAM for like services, encompassing the four DWS risk-based asset allocation fund-of-funds.
• Costs to DeAM and its affiliates of supplying services pursuant to the management agreements and profit margins from supplying such services. While this is a new fund with no profitability information, the level of the Fund's fee, DeAM's overall profitability derived from mutual funds, and DeAM's expectations for fund growth do not suggest excessive profitability.
• Possible economies of scale as the Fund grows larger, noting that the fee schedule does not include break-points, so that future sharing of economies will depend on imposition of break-points, economies in the underlying funds, or on other actions.
• The nature and quality of DeAM's services, including the DWS Fund's performance. This is a new fund, so performance and other service evaluations are not possible. DeAM has staffed the fund's management with individuals having appropriate education and experience.
Based on the foregoing considerations, in my opinion the proposed fees and expenses for the DWS LifeCompass 2040 Fund are reasonable.
The following table presents certain information regarding the Board Members and Officers of the Trust as of August 31, 2008. Each Board Member's year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33904. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the fund. Because the fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex. The Length of Time Served represents the year in which the Board Member joined the board of one or more DWS funds now overseen by the Board.
Independent Board Members | ||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen |
Dawn-Marie Driscoll (1946) Chairperson since 20042 Board Member since 1987 | President, Driscoll Associates (consulting firm); Executive Fellow, Center for Business Ethics, Bentley College; formerly, Partner, Palmer & Dodge (1988-1990); Vice President of Corporate Affairs and General Counsel, Filene's (1978-1988). Directorships: Trustee of eight open-end mutual funds managed by Sun Capital Advisers, Inc. (since 2007); Director of ICI Mutual Insurance Company (since 2007); Advisory Board, Center for Business Ethics, Bentley College; Trustee, Southwest Florida Community Foundation (charitable organization). Former Directorships: Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 133 |
Paul K. Freeman (1950) Vice Chairperson since 2008 Board Member since 1993 | Consultant, World Bank/Inter-American Development Bank; formerly, Project Leader, International Institute for Applied Systems Analysis (1998-2001); Chief Executive Officer, The Eric Group, Inc. (environmental insurance) (1986-1998) | 133 |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996-1998); Executive Vice President and Head of International Banking (1995-1996). Directorships: Healthways, Inc. (provider of disease and care management services); Portland General Electric (utility company); Stockwell Capital Investments PLC (private equity). Former Directorships: First Oak Brook Bancshares, Inc. and Oak Brook Bank | 133 |
Henry P. Becton, Jr. (1943) Board Member since 1990 | Vice Chair, WGBH Educational Foundation. Directorships: Association of Public Television Stations; Becton Dickinson and Company3 (medical technology company); Belo Corporation3 (media company); Boston Museum of Science; Public Radio International. Former Directorships: American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service | 133 |
Keith R. Fox (1954) Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private equity funds). Directorships: Progressive Holding Corporation (kitchen goods importer and distributor); Natural History, Inc. (magazine publisher); Box Top Media Inc. (advertising); The Kennel Shop (retailer) | 133 |
Kenneth C. Froewiss (1945) Board Member since 2001 | Clinical Professor of Finance, NYU Stern School of Business (1997-present); Member, Finance Committee, Association for Asian Studies (2002-present); Director, Mitsui Sumitomo Insurance Group (US) (2004-present); prior thereto, Managing Director, J.P. Morgan (investment banking firm) (until 1996) | 133 |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor, Finance Department, The Wharton School, University of Pennsylvania (since July 1972); Co-Director, Wharton Financial Institutions Center (since July 2000); Director, Japan Equity Fund, Inc. (since September 2007), Thai Capital Fund, Inc. (since September 2007), Singapore Fund, Inc. (since September 2007). Formerly, Vice Dean and Director, Wharton Undergraduate Division (July 1995-June 2000); Director, Lauder Institute of International Management Studies (July 2000-June 2006) | 133 |
William McClayton (1944) Board Member since 2004 | Managing Director, Diamond Management & Technology Consultants, Inc. (global management consulting firm) (2001-present); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966-2001); Trustee, Ravinia Festival | 133 |
Rebecca W. Rimel (1951) Board Member since 1995 | President and Chief Executive Officer, The Pew Charitable Trusts (charitable organization) (1994 to present); Trustee, Thomas Jefferson Foundation (charitable organization) (1994 to present); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001-2007); Trustee, Pro Publica (2007-present) (charitable organization). Formerly, Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983-2004); Board Member, Investor Education (charitable organization) (2004-2005); Director, Viasys Health Care3 (January 2007-June 2007) | 133 |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; Trustee of eight open-end mutual funds managed by Sun Capital Advisers, Inc. (since October 1998). Formerly, Pension & Savings Trust Officer, Sprint Corporation3 (telecommunications) (November 1989-September 2003) | 133 |
Jean Gleason Stromberg (1943) Board Member since 1997 | Retired. Formerly, Consultant (1997-2001); Director, US Government Accountability Office (1996-1997); Partner, Fulbright & Jaworski, L.L.P. (law firm) (1978-1996). Directorships: The William and Flora Hewlett Foundation; Service Source, Inc. Former Directorships: Mutual Fund Directors Forum (2002-2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987-1990 and 1994-1996) | 133 |
Robert H. Wadsworth (1940) Board Member since 1999 | President, Robert H. Wadsworth & Associates, Inc. (consulting firm) (1983 to present); Director, The Phoenix Boys Choir Association | 136 |
Interested Board Member | ||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in Fund Complex Overseen |
Axel Schwarzer4 (1958) Board Member since 2006 | Managing Director5, Deutsche Asset Management; Head of Deutsche Asset Management Americas; CEO of DWS Investments; formerly, board member of DWS Investments, Germany (1999-2005); formerly, Head of Sales and Product Management for the Retail and Private Banking Division of Deutsche Bank in Germany (1997-1999); formerly, various strategic and operational positions for Deutsche Bank Germany Retail and Private Banking Division in the field of investment funds, tax driven instruments and asset management for corporates (1989-1996) | 133 |
Officers6 | |
Name, Year of Birth, Position with the Fund and Length of Time Served7 | Principal Occupation(s) During Past 5 Years and Other Directorships Held |
Michael G. Clark8 (1965) President, 2006-present | Managing Director5, Deutsche Asset Management (2006-present); President of DWS family of funds; Director, ICI Mutual Insurance Company (since October 2007); formerly, Director of Fund Board Relations (2004-2006) and Director of Product Development (2000-2004), Merrill Lynch Investment Managers; Senior Vice President Operations, Merrill Lynch Asset Management (1999-2000) |
John Millette9 (1962) Vice President and Secretary, 1999-present | Director5, Deutsche Asset Management |
Paul H. Schubert8 (1963) Chief Financial Officer, 2004-present Treasurer, 2005-present | Managing Director5, Deutsche Asset Management (since July 2004); formerly, Executive Director, Head of Mutual Fund Services and Treasurer for UBS Family of Funds (1998-2004); Vice President and Director of Mutual Fund Finance at UBS Global Asset Management (1994-1998) |
Patricia DeFilippis10 (1963) Assistant Secretary, 2005-present | Vice President, Deutsche Asset Management (since June 2005); formerly, Counsel, New York Life Investment Management LLC (2003-2005); legal associate, Lord, Abbett & Co. LLC (1998-2003) |
Elisa D. Metzger10 (1962) Assistant Secretary 2005-present | Director5, Deutsche Asset Management (since September 2005); formerly, Counsel, Morrison and Foerster LLP (1999-2005) |
Caroline Pearson9 (1962) Assistant Secretary, 1997-present | Managing Director5, Deutsche Asset Management |
Paul Antosca9 (1957) Assistant Treasurer, 2007-present | Director5, Deutsche Asset Management (since 2006); Vice President, The Manufacturers Life Insurance Company (U.S.A.) (1990-2006) |
Jack Clark9 (1967) Assistant Treasurer, 2007-present | Director5, Deutsche Asset Management (since 2007); formerly, Vice President, State Street Corporation (2002-2007) |
Kathleen Sullivan D'Eramo9 (1957) Assistant Treasurer, 2003-present | Director5, Deutsche Asset Management |
Diane Kenneally9 (1966) Assistant Treasurer, 2007-present | Director5, Deutsche Asset Management |
Jason Vazquez10 (1972) Anti-Money Laundering Compliance Officer, 2007-present | Vice President, Deutsche Asset Management (since 2006); formerly, AML Operations Manager for Bear Stearns (2004-2006), Supervising Compliance Principal and Operations Manager for AXA Financial (1999-2004) |
Robert Kloby10 (1962) Chief Compliance Officer, 2006-present | Managing Director5, Deutsche Asset Management (2004-present); formerly, Chief Compliance Officer/Chief Risk Officer, Robeco USA (2000-2004); Vice President, The Prudential Insurance Company of America (1988-2000); E.F. Hutton and Company (1984-1988) |
J. Christopher Jackson10 (1951) Chief Legal Officer, 2006-present | Director5, Deutsche Asset Management (2006-present); formerly, Director, Senior Vice President, General Counsel and Assistant Secretary, Hansberger Global Investors, Inc. (1996-2006); Director, National Society of Compliance Professionals (2002-2005) (2006-2009) |
2 Represents the year Ms. Driscoll was first appointed Chairperson of certain DWS funds.
3 A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.
4 The mailing address of Axel Schwarzer is c/o Deutsche Investment Management Americas Inc., 345 Park Avenue, New York, New York 10154. Mr. Schwarzer is an interested Board Member by virtue of his positions with Deutsche Asset Management. As an interested person, Mr. Schwarzer receives no compensation from the fund.
5 Executive title, not a board directorship.
6 As a result of their respective positions held with the Advisor, these individuals are considered "interested persons" of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the fund.
7 The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds.
8 Address: 345 Park Avenue, New York, New York 10154.
9 Address: One Beacon Street, Boston, MA 02108.
10 Address: 280 Park Avenue, New York, New York 10017.
The fund's Statement of Additional Information ("SAI") includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the following toll-free number: (800) 621-1048.
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For More Information | The automated telephone system allows you to access personalized account information and obtain information on other DWS funds using either your voice or your telephone keypad. Certain account types within Classes A, B, C and S also have the ability to purchase, exchange or redeem shares using this system. For more information, contact your financial advisor. You may also access our automated telephone system or speak with a DWS Investments representative by calling the appropriate number below: For shareholders of Classes A, B and C: (800) 621-1048For shareholders of Class S: (800) 728-3337 |
Web Site | www.dws-investments.com View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day.Obtain prospectuses and applications, blank forms, interactive worksheets, news about DWS funds, subscription to fund updates by e-mail, retirement planning information, and more. |
Written Correspondence | DWS Investments PO Box 219151Kansas City, MO 64121-9151 |
Proxy Voting | The fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 are available on our Web site — www.dws-investments.com (click on "proxy voting"at the bottom of the page) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at (800) 621-1048. |
Principal Underwriter | If you have questions, comments or complaints, contact: DWS Investments Distributors, Inc. 222 South Riverside PlazaChicago, IL 60606-5808 (800) 621-1148 |
| Nasdaq Symbol | CUSIP | Fund |
DWS LifeCompass Retirement Fund — Class A | SUCAX | 23337A 608 | 480 |
DWS LifeCompass Retirement Fund — Class B | SUCBX | 23337A 707 | 680 |
DWS LifeCompass Retirement Fund — Class C | SUCCX | 23337A 806 | 780 |
DWS LifeCompass Retirement Fund — Class S | SCPCX | 23337A 871 | 2080 |
DWS LifeCompass 2015 Fund — Class A | SPDAX | 23337A 103 | 481 |
DWS LifeCompass 2015 Fund — Class B | SPDBX | 23337A 202 | 681 |
DWS LifeCompass 2015 Fund — Class C | SPDCX | 23337A 301 | 781 |
DWS LifeCompass 2015 Fund — Class S | SPBAX | 23337A 509 | 2081 |
DWS LifeCompass 2020 Fund — Class A | SUPAX | 23337A 863 | 482 |
DWS LifeCompass 2020 Fund — Class B | SUPBX | 23337A 855 | 682 |
DWS LifeCompass 2020 Fund — Class C | SUPCX | 23337A 848 | 782 |
DWS LifeCompass 2020 Fund — Class S | SPGRX | 23337A 822 | 2082 |
DWS LifeCompass 2030 Fund — Class A | PLUSX | 23337A 814 | 1084 |
DWS LifeCompass 2030 Fund — Class B | PLSBX | 23337A 798 | 1284 |
DWS LifeCompass 2030 Fund — Class C | PLSCX | 23337A 780 | 1384 |
DWS LifeCompass 2030 Fund — Class S | PPLSX | 23337A 772 | 2084 |
DWS LifeCompass 2040 Fund — Class A | TGTAX | 23337A 764 | 457 |
DWS LifeCompass 2040 Fund — Class C | TGTCX | 23337A 756 | 757 |
DWS LifeCompass 2040 Fund — Class S | TGTSX | 23337A 749 | 2057 |
ITEM 2. | CODE OF ETHICS |
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| As of the end of the period, August 31, 2008, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund, DWS LifeCompass 2040 Fund and DWS LifeCompass Retirement Fund, each a series of DWS Target Date Series have a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
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ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
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| The Funds’ audit committee is comprised solely of trustees who are “independent” (as such term has been defined by the Securities and Exchange Commission (“SEC”) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the “Regulations”)). The Funds’ Board of Trustees has determined that there are several “audit committee financial experts” (as such term has been defined by the Regulations) serving on the Funds’ audit committee including Mr. William McClayton, the chair of the Funds’ audit committee. The SEC has stated that an audit committee financial expert is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. |
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ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
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DWS LIFECOMPASS 2015 FUND
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that PricewaterhouseCoopers, LLP (“PWC”), the Fund’s independent registered public accounting firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year | Audit Fees Billed to Fund | Audit-Related | Tax Fees Billed to Fund | All |
2008 | $37,100 | $0 | $0 | $0 |
2007 | $38,000 | $0 | $0 | $0 |
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (“DeIM” or the “Adviser”), and any entity controlling, controlled by or under common control with DeIM (“Control
Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year | Audit-Related | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All |
2008 | $0 | $19,000 | $0 |
2007 | $98,500 | $25,000 | $0 |
The “Audit-Related Fees” were billed for services in connection with the agreed-upon procedures related to fund mergers and additional costs related to annual audits and the above “Tax Fees” were billed in connection with tax consultation and agreed-upon procedures.
Non-Audit Services
The following table shows the amount of fees that PWC billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PWC’s independence.
Fiscal Year | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) |
2008 | $0 | $19,000 | $600,000 | $619,000 |
2007 | $0 | $25,000 | $0 | $25,000 |
All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.
***
PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules. In the first instance, an employee of PwC had power of attorney over an account which included DWS funds. The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG. In the second instance, an employee of PwC served as a nominee shareholder
(effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG. The trustee relationship has ceased. PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X. PwC advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund. In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.
DWS LIFECOMPASS 2020 FUND
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that PricewaterhouseCoopers, LLP (“PWC”), the Fund’s independent registered public accounting firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year | Audit Fees Billed to Fund | Audit-Related | Tax Fees Billed to Fund | All |
2008 | $37,100 | $0 | $0 | $0 |
2007 | $38,000 | $0 | $0 | $0 |
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (“DeIM” or the “Adviser”), and any entity controlling, controlled by or under common control with DeIM (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year | Audit-Related | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All |
2008 | $0 | $19,000 | $0 |
2007 | $98,500 | $25,000 | $0 |
The “Audit-Related Fees” were billed for services in connection with the agreed-upon procedures related to fund mergers and additional costs related to annual audits and the above “Tax Fees” were billed in connection with tax consultation and agreed-upon procedures.
Non-Audit Services
The following table shows the amount of fees that PWC billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PWC’s independence.
Fiscal Year | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) |
2008 | $0 | $19,000 | $600,000 | $619,000 |
2007 | $0 | $25,000 | $0 | $25,000 |
All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.
***
PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules. In the first instance, an employee of PwC had power of attorney over an account which included DWS funds. The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG. In the second instance, an employee of PwC served as a nominee shareholder (effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG. The trustee relationship has ceased. PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X. PwC advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund. In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.
DWS LIFECOMPASS 2030 FUND
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that PricewaterhouseCoopers, LLP (“PWC”), the Fund’s independent registered public accounting firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year | Audit Fees Billed to Fund | Audit-Related | Tax Fees Billed to Fund | All |
2008 | $37,100 | $0 | $0 | $0 |
2007 | $38,000 | $0 | $0 | $0 |
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (“DeIM” or the “Adviser”), and any entity controlling, controlled by or under common control with DeIM (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year | Audit-Related | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All |
2008 | $0 | $19,000 | $0 |
2007 | $98,500 | $25,000 | $0 |
The “Audit-Related Fees” were billed for services in connection with the agreed-upon procedures related to fund mergers and additional costs related to annual audits and the above “Tax Fees” were billed in connection with tax consultation and agreed-upon procedures.
Non-Audit Services
The following table shows the amount of fees that PWC billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PWC’s independence.
Fiscal Year | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) |
2008 | $0 | $19,000 | $600,000 | $619,000 |
2007 | $0 | $25,000 | $0 | $25,000 |
All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.
***
PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules. In the first instance, an employee of PwC had power of attorney over an account which included DWS funds. The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG. In the second instance, an employee of PwC served as a nominee shareholder (effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG. The trustee relationship has ceased. PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X. PwC advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund. In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.
DWS LIFECOMPASS 2040 FUND
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that PricewaterhouseCoopers, LLP (“PWC”), the Fund’s independent registered public accounting firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year | Audit Fees Billed to Fund | Audit-Related | Tax Fees Billed to Fund | All |
2008 | $37,100 | $0 | $0 | $0 |
2007 | $38,000 | $0 | $0 | $0 |
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (“DeIM” or the “Adviser”), and any entity controlling, controlled by or under common control with DeIM (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year | Audit-Related | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All |
2008 | $0 | $19,000 | $0 |
2007 | $98,500 | $25,000 | $0 |
The “Audit-Related Fees” were billed for services in connection with the agreed-upon procedures related to fund mergers and additional costs related to annual audits and the above “Tax Fees” were billed in connection with tax consultation and agreed-upon procedures.
Non-Audit Services
The following table shows the amount of fees that PWC billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PWC’s independence.
Fiscal Year | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) |
2008 | $0 | $19,000 | $600,000 | $619,000 |
2007 | $0 | $25,000 | $0 | $25,000 |
All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.
***
PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules. In the first instance, an employee of PwC had power of attorney over an account which included DWS funds. The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG. In the second instance, an employee of PwC served as a nominee shareholder (effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG. The trustee relationship has ceased. PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X. PwC advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund. In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.
DWS LIFECOMPASS RETIREMENT FUND
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that PricewaterhouseCoopers, LLP (“PWC”), the Fund’s independent registered public accounting firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year | Audit Fees Billed to Fund | Audit-Related | Tax Fees Billed to Fund | All |
2008 | $37,100 | $0 | $0 | $0 |
2007 | $38,000 | $0 | $0 | $0 |
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (“DeIM” or the “Adviser”), and any entity controlling, controlled by or under common control with DeIM (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year | Audit-Related | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All |
2008 | $0 | $19,000 | $0 |
2007 | $98,500 | $25,000 | $0 |
The “Audit-Related Fees” were billed for services in connection with the agreed-upon procedures related to fund mergers and additional costs related to annual audits and the above “Tax Fees” were billed in connection with tax consultation and agreed-upon procedures.
Non-Audit Services
The following table shows the amount of fees that PWC billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PWC’s independence.
Fiscal Year | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) |
2008 | $0 | $19,000 | $600,000 | $619,000 |
2007 | $0 | $25,000 | $0 | $25,000 |
All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.
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PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules. In the first instance, an employee of PwC had power of attorney over an account which included DWS funds. The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG. In the second instance, an employee of PwC served as a nominee shareholder (effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG. The trustee relationship has ceased. PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X. PwC advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund. In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.
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ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
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| Not Applicable |
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ITEM 6. | SCHEDULE OF INVESTMENTS |
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| Not Applicable |
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ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
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| Not applicable. |
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ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
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| Not applicable. |
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
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| Not Applicable. |
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
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| The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Chairman of the Board, P.O. Box 100176, Cape Coral, FL 33910. |
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ITEM 11. | CONTROLS AND PROCEDURES |
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| (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. |
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| (b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. |
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ITEM 12. | EXHIBITS |
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| (a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
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| (a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
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| (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
Form N-CSR Item F
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund, DWS LifeCompass 2040 Fund and DWS LifeCompass Retirement Fund, each a series of DWS Target Date Series |
By: | /s/Michael G. Clark |
| Michael G. Clark |
President
Date: | October 30, 2008 |
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 LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund, DWS LifeCompass 2040 Fund and DWS LifeCompass Retirement Fund, each a series of DWS Target Date Series |
By: | /s/Michael G. Clark |
| Michael G. Clark |
President
Date: | October 30, 2008 |
By: | /s/Paul Schubert |
| Paul Schubert |
Chief Financial Officer and Treasurer
Date: | October 30, 2008 |