UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number | 811-08606 |
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: (201) 593-6408
Paul Schubert
100 Plaza One
Jersey City, NJ 07311
(Name and Address of Agent for Service)
Date of fiscal year end: | 8/31 |
Date of reporting period: | 8/31/2010 |
ITEM 1. | REPORT TO STOCKHOLDERS |
AUGUST 31, 2010 Annual Report |
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DWS Target Date Series DWS LifeCompass Retirement Fund DWS LifeCompass 2015 Fund DWS LifeCompass 2020 Fund DWS LifeCompass 2030 Fund DWS LifeCompass 2040 Fund |
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Contents
4 Performance Summaries 19 Information About Each Fund's Expenses 23 Portfolio Management Review 28 Portfolio Summaries 30 Investment Portfolios 45 Statements of Assets and Liabilities 49 Statements of Operations 51 Statements of Changes in Net Assets 56 Financial Highlights 75 Notes to Financial Statements 91 Report of Independent Registered Public Accounting Firm 92 Tax Information 93 Shareholder Meeting Results 94 New Sub-Advisory Agreements Approval 97 Summary of Management Fee Evaluation by Independent Fee Consultant 102 Board Members and Officers 106 Account Management Resources |
This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the fund. Please read the prospectus carefully before you invest.
Although allocation among different asset categories generally limits risk, the investment advisor may favor an asset category that underperforms other assets or markets as a whole. Bond investments are subject to interest-rate and credit risks. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increased volatility. Because ETFs trade on a securities exchange, their shares may trade at a premium or discount to their net asset value. ETFs also incur fees and expenses so they may not fully match the performance of the indexes they are designed to track. Investing in foreign securities, particularly those of emerging markets, presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Stocks may decline in value. See the prospectus for details.
Target date funds are designed for investors seeking to meet their respective investment goals, such as retirement, around the target date year. The target date is the approximate date when investors plan to start withdrawing their money in the fund. 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 principal value of the funds is not guaranteed at any time, including at the target date. There is no guarantee that the fund will provide adequate income at and through retirement.
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, 2010
DWS LifeCompass Retirement Fund
Average Annual Total Returns as of 8/31/10 | ||||
Unadjusted for Sales Charge | 1-Year | 3-Year | 5-Year | 10-Year |
Class A | 6.67% | -2.33% | 1.22% | 1.79% |
Class B | 5.87% | -3.06% | 0.47% | 1.05% |
Class C | 5.88% | -3.07% | 0.48% | 1.04% |
Adjusted for the Maximum Sales Charge |
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Class A (max 5.75% load) | 0.54% | -4.24% | 0.02% | 1.19% |
Class B (max 4.00% CDSC) | 2.87% | -3.66% | 0.30% | 1.05% |
Class C (max 1.00% CDSC) | 5.88% | -3.07% | 0.48% | 1.04% |
No Sales Charges |
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Class S | 6.84% | -2.11% | 1.46% | 2.03% |
Russell® 1000 Index+ | 5.55% | -8.34% | -0.71% | -1.55% |
Russell® 2000 Index++ | 6.60% | -7.44% | -0.69% | 2.48% |
Barclays Capital Intermediate U.S. Aggregate Bond Index+++ | 8.25% | 7.30% | 5.88% | 6.21% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
Performance in the Average Annual Total Returns table above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit www.dws-investments.com for the Fund's most recent month-end performance. Performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated December 1, 2009 are 1.39%, 2.18%, 2.07% and 1.12% for Class A, Class B, Class C and Class S shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. These expense ratios include net expenses of the underlying funds in which the Fund invests.
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.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
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.
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++ [] Barclays Capital Intermediate U.S. Aggregate Bond Index+++ |
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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.
The growth of $10,000 is cumulative.
Performance of other share classes will vary based on the sales charges and the fee structure of those classes.
+ 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.
+++ The Barclays Capital Intermediate U.S. Aggregate Bond 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.
DWS LifeCompass Retirement Fund
Net Asset Value and Distribution Information | ||||
| Class A | Class B | Class C | Class S |
Net Asset Value: 8/31/10 | $ 10.47 | $ 10.47 | $ 10.46 | $ 10.46 |
8/31/09 | $ 10.08 | $ 10.08 | $ 10.07 | $ 10.08 |
Distribution Information: Twelve Months as of 8/31/10:Income Dividends | $ .28 | $ .20 | $ .20 | $ .31 |
Lipper Rankings — Mixed-Asset Target Allocation Conservative Funds Category as of 8/31/10 | ||||
Period | Rank |
| Number of Fund Classes Tracked | Percentile Ranking (%) |
Class A 1-Year | 351 | of | 450 | 78 |
3-Year | 359 | of | 383 | 94 |
5-Year | 228 | of | 264 | 87 |
Class B 1-Year | 402 | of | 450 | 90 |
3-Year | 369 | of | 383 | 97 |
5-Year | 249 | of | 264 | 94 |
Class C 1-Year | 400 | of | 450 | 89 |
3-Year | 370 | of | 383 | 97 |
5-Year | 248 | of | 264 | 94 |
Class S 1-Year | 341 | of | 450 | 76 |
3-Year | 357 | of | 383 | 93 |
5-Year | 212 | of | 264 | 80 |
10-Year | 70 | of | 82 | 85 |
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.
Average Annual Total Returns as of 8/31/10 | ||||
Unadjusted for Sales Charge | 1-Year | 3-Year | 5-Year | 10-Year |
Class A | 5.61% | -5.04% | 0.04% | 0.01% |
Class B | 4.82% | -5.75% | -0.72% | -0.73% |
Class C | 4.83% | -5.74% | -0.70% | -0.72% |
Adjusted for the Maximum Sales Charge |
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Class A (max 5.75% load) | -0.46% | -6.90% | -1.14% | -0.58% |
Class B (max 4.00% CDSC) | 1.82% | -6.34% | -0.89% | -0.73% |
Class C (max 1.00% CDSC) | 4.83% | -5.74% | -0.70% | -0.72% |
No Sales Charges |
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Class S | 5.89% | -4.79% | 0.27% | 0.24% |
Russell 1000 Index+ | 5.55% | -8.34% | -0.71% | -1.55% |
Russell 2000 Index++ | 6.60% | -7.44% | -0.69% | 2.48% |
Barclays Capital U.S. Aggregate Bond Index+++ | 9.18% | 7.65% | 5.96% | 6.47% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
Performance in the Average Annual Total Returns table above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit www.dws-investments.com for the Fund's most recent month-end performance. Performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated December 1, 2009 are 1.30%, 2.09%, 2.02% and 1.07% for Class A, Class B, Class C and Class S shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. These expense ratios include net expenses of the underlying funds in which the Fund invests.
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.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
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 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.
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++ [] Barclays Capital U.S. Aggregate Bond Index+++ |
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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.
The growth of $10,000 is cumulative.
Performance of other share classes will vary based on the sales charges and the fee structure of those classes.
+ 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.
+++ The Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market-value-weighted measure of Treasury issues, agency issues corporate bond issues and mortgage securities.
DWS LifeCompass 2015 Fund
Net Asset Value and Distribution Information | ||||
| Class A | Class B | Class C | Class S |
Net Asset Value: 8/31/10 | $ 9.70 | $ 9.69 | $ 9.69 | $ 9.69 |
8/31/09 | $ 9.39 | $ 9.38 | $ 9.38 | $ 9.38 |
Distribution Information: Twelve Months as of 8/31/10:Income Dividends | $ .22 | $ .14 | $ .14 | $ .24 |
Lipper Rankings — Mixed-Asset Target 2015 Funds Category as of 8/31/10 | ||||
Period | Rank |
| Number of Fund Classes Tracked | Percentile Ranking (%) |
Class A 1-Year | 109 | of | 126 | 86 |
3-Year | 71 | of | 90 | 79 |
5-Year | 27 | of | 31 | 85 |
Class B 1-Year | 120 | of | 126 | 95 |
3-Year | 79 | of | 90 | 87 |
5-Year | 31 | of | 31 | 97 |
Class C 1-Year | 119 | of | 126 | 94 |
3-Year | 77 | of | 90 | 85 |
5-Year | 30 | of | 31 | 94 |
Class S 1-Year | 105 | of | 126 | 83 |
3-Year | 69 | of | 90 | 76 |
5-Year | 25 | of | 31 | 79 |
10-Year | 5 | of | 5 | 84 |
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.
Average Annual Total Returns as of 8/31/10 | ||||
Unadjusted for Sales Charge | 1-Year | 3-Year | 5-Year | 10-Year |
Class A | 5.10% | -6.16% | -0.12% | -0.90% |
Class B | 4.24% | -6.86% | -0.86% | -1.63% |
Class C | 4.24% | -6.85% | -0.85% | -1.63% |
Adjusted for the Maximum Sales Charge |
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Class A (max 5.75% load) | -0.94% | -7.99% | -1.29% | -1.48% |
Class B (max 4.00% CDSC) | 1.24% | -7.44% | -1.03% | -1.63% |
Class C (max 1.00% CDSC) | 4.24% | -6.85% | -0.85% | -1.63% |
No Sales Charges |
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Class S | 5.36% | -5.93% | 0.13% | -0.67% |
Russell 1000 Index+ | 5.55% | -8.34% | -0.71% | -1.55% |
Russell 2000 Index++ | 6.60% | -7.44% | -0.69% | 2.48% |
Barclays Capital U.S. Aggregate Bond Index+++ | 9.18% | 7.65% | 5.96% | 6.47% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
Performance in the Average Annual Total Returns table above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit www.dws-investments.com for the Fund's most recent month-end performance. Performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated December 1, 2009 are 1.33%, 2.09%, 2.06% and 1.13% for Class A, Class B, Class C and Class S shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. These expense ratios include net expenses of the underlying funds in which the Fund invests.
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.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
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 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.
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++ [] Barclays Capital U.S. Aggregate Bond Index+++ |
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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.
The growth of $10,000 is cumulative.
Performance of other share classes will vary based on the sales charges and the fee structure of those classes.
+ 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.
+++ The Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market-value-weighted measure of Treasury issues, agency issues, corporate bond issues and mortgage securities.
DWS LifeCompass 2020 Fund
Net Asset Value and Distribution Information | ||||
| Class A | Class B | Class C | Class S |
Net Asset Value: 8/31/10 | $ 11.56 | $ 11.45 | $ 11.45 | $ 11.58 |
8/31/09 | $ 11.21 | $ 11.11 | $ 11.11 | $ 11.23 |
Distribution Information: Twelve Months as of 8/31/10:Income Dividends | $ .23 | $ .14 | $ .14 | $ .26 |
Lipper Rankings — Mixed-Asset Target 2020 Funds Category as of 8/31/10 | ||||
Period | Rank |
| Number of Fund Classes Tracked | Percentile Ranking (%) |
Class A 1-Year | 159 | of | 173 | 92 |
3-Year | 112 | of | 129 | 87 |
5-Year | 51 | of | 57 | 88 |
Class B 1-Year | 168 | of | 173 | 97 |
3-Year | 116 | of | 129 | 90 |
5-Year | 57 | of | 57 | 99 |
Class C 1-Year | 168 | of | 173 | 97 |
3-Year | 115 | of | 129 | 89 |
5-Year | 56 | of | 57 | 97 |
Class S 1-Year | 155 | of | 173 | 90 |
3-Year | 110 | of | 129 | 85 |
5-Year | 46 | of | 57 | 80 |
10-Year | 8 | of | 8 | 89 |
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.
Average Annual Total Returns as of 8/31/10 | ||||
Unadjusted for Sales Charge | 1-Year | 3-Year | 5-Year | Life of Fund* |
Class A | 3.63% | -8.16% | -0.81% | 0.82% |
Class B | 2.98% | -8.78% | -1.54% | 0.10% |
Class C | 2.99% | -8.82% | -1.55% | 0.08% |
Adjusted for the Maximum Sales Charge |
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Class A (max 5.75% load) | -2.33% | -9.95% | -1.98% | -0.20% |
Class B (max 4.00% CDSC) | -0.02% | -9.31% | -1.70% | -0.04% |
Class C (max 1.00% CDSC) | 2.99% | -8.82% | -1.55% | 0.08% |
No Sales Charges |
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Class S | 4.02% | -7.93% | -0.57% | 1.07% |
Russell 1000 Index+ | 5.55% | -8.34% | -0.71% | 1.24% |
Russell 2000 Index++ | 6.60% | -7.44% | -0.69% | 1.86% |
Barclays Capital U.S. Aggregate Bond Index+++ | 9.18% | 7.65% | 5.96% | 5.62% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
* The Fund commenced operations on November 1, 2004. Index returns began on October 31, 2004.Performance in the Average Annual Total Returns table above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit www.dws-investments.com for the Fund's most recent month-end performance. Performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated December 1, 2009 are 1.82%, 2.72%, 2.61% and 1.62% for Class A, Class B, Class C and Class S shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. These expense ratios include net expenses of the underlying funds in which the Fund invests.
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.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
DWS LifeCompass 2030 Fund
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] DWS LifeCompass 2030 Fund — Class A [] Russell 1000 Index+ [] Russell 2000 Index++ [] Barclays Capital U.S. Aggregate Bond Index+++ |
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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.
The growth of $10,000 is cumulative.
Performance of other share classes will vary based on the sales charges and the fee structure of those classes.
* 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.
+++ The Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market-value-weighted measure of Treasury issues, agency issues, corporate bond issues and mortgage securities.
DWS LifeCompass 2030 Fund
Net Asset Value and Distribution Information | ||||
| Class A | Class B | Class C | Class S |
Net Asset Value: 8/31/10 | $ 8.04 | $ 8.02 | $ 8.01 | $ 8.05 |
8/31/09 | $ 7.87 | $ 7.84 | $ 7.83 | $ 7.87 |
Distribution Information: Twelve Months as of 8/31/10:Income Dividends | $ .12 | $ .06 | $ .06 | $ .14 |
Lipper Rankings — Mixed-Asset Target 2030 Funds Category as of 8/31/10 | ||||
Period | Rank |
| Number of Fund Classes Tracked | Percentile Ranking (%) |
Class A 1-Year | 162 | of | 170 | 95 |
3-Year | 109 | of | 126 | 86 |
5-Year | 50 | of | 54 | 91 |
Class B 1-Year | 170 | of | 170 | 100 |
3-Year | 110 | of | 126 | 87 |
5-Year | 53 | of | 54 | 97 |
Class C 1-Year | 169 | of | 170 | 99 |
3-Year | 111 | of | 126 | 88 |
5-Year | 54 | of | 54 | 99 |
Class S 1-Year | 157 | of | 170 | 92 |
3-Year | 108 | of | 126 | 86 |
5-Year | 43 | of | 54 | 79 |
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.
Average Annual Total Returns as of 8/31/10 | ||
Unadjusted for Sales Charge | 1-Year | Life of Fund* |
Class A | 3.58% | -9.17% |
Class C | 2.81% | -9.82% |
Adjusted for the Maximum Sales Charge |
|
|
Class A (max 5.75% load) | -2.38% | -11.07% |
Class C (max 1.00% CDSC) | 2.81% | -9.82% |
No Sales Charges |
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Class S | 3.83% | -8.90% |
Russell 1000 Index+ | 5.55% | -9.44% |
Russell 2000 Index++ | 6.60% | -7.11% |
Barclays Capital U.S. Aggregate Bond Index+++ | 9.18% | 7.03% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
* The Fund commenced operations on November 15, 2007. Index returns began on November 30, 2007.Performance in the Average Annual Total Returns table above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit www.dws-investments.com for the Fund's most recent month-end performance. Performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated December 1, 2009 are 3.56%, 4.52% and 3.36% for Class A, Class C and Class S shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. These expense ratios include net expenses of the underlying funds in which the Fund invests.
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.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
DWS LifeCompass 2040 Fund
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] DWS LifeCompass 2040 Fund — Class A [] Russell 1000 Index+ [] Russell 2000 Index++ [] Barclays Capital U.S. Aggregate Bond Index+++ |
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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.
The growth of $10,000 is cumulative.
Performance of other share classes will vary based on the sales charges and the fee structure of those classes.
* 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.
+++ The Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market-value-weighted measure of Treasury issues, agency issues, corporate bond issues and mortgage securities.
DWS LifeCompass 2040 Fund
Net Asset Value and Distribution Information | |||
| Class A | Class C | Class S |
Net Asset Value: 8/31/10 | $ 7.14 | $ 7.11 | $ 7.16 |
8/31/09 | $ 6.97 | $ 6.94 | $ 6.99 |
Distribution Information: Twelve Months as of 8/31/10:Income Dividends | $ .08 | $ .03 | $ .10 |
Lipper Rankings — Mixed-Asset Target 2040 Funds Category as of 8/31/10 | ||||
Period | Rank |
| Number of Fund Classes Tracked | Percentile Ranking (%) |
Class A 1-Year | 146 | of | 168 | 87 |
Class C 1-Year | 158 | of | 168 | 94 |
Class S 1-Year | 142 | of | 168 | 85 |
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.
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) 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 Funds and to help you compare these expenses with the ongoing expenses of investing in mutual funds. In addition to the ongoing expenses which the Funds bear directly, the Funds' shareholders indirectly bear the expenses of the Underlying Funds in which the Funds invest. These expenses are not included in the Funds' annualized expense ratios used to calculate the expense estimate in the tables. 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 the ongoing expenses the Funds bear directly; 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 six-month period and held for the entire period (March 1, 2010 to August 31, 2010).
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
Expenses and Value of a $1,000 Investment for the six months ended August 31, 2010 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 1,013.70 | $ 1,010.80 | $ 1,009.90 | $ 1,014.90 |
Expenses Paid per $1,000* | $ 3.15 | $ 6.94 | $ 7.04 | $ 1.88 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 1,022.08 | $ 1,018.30 | $ 1,018.20 | $ 1,023.34 |
Expenses Paid per $1,000* | $ 3.16 | $ 6.97 | $ 7.07 | $ 1.89 |
Annualized Expense Ratios** | Class A | Class B | Class C | Class S |
DWS LifeCompass Retirement Fund | .62% | 1.37% | 1.37% | .37% |
For more information, please refer to the Fund's prospectus.
DWS LifeCompass 2015 Fund
Expenses and Value of a $1,000 Investment for the six months ended August 31, 2010 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 998.80 | $ 995.00 | $ 995.10 | $ 1,000.03 |
Expenses Paid per $1,000* | $ 2.92 | $ 6.79 | $ 6.89 | $ 1.66 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 1,022.28 | $ 1,018.40 | $ 1,018.30 | $ 1,023.54 |
Expenses Paid per $1,000* | $ 2.96 | $ 6.87 | $ 6.97 | $ 1.68 |
Annualized Expense Ratios** | Class A | Class B | Class C | Class S |
DWS LifeCompass 2015 Fund | .58% | 1.33% | 1.33% | .33% |
For more information, please refer to the Fund's prospectus.
DWS LifeCompass 2020 Fund
Expenses and Value of a $1,000 Investment for the six months ended August 31, 2010 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 989.70 | $ 986.20 | $ 986.20 | $ 990.60 |
Expenses Paid per $1,000* | $ 2.96 | $ 6.71 | $ 6.71 | $ 1.71 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 1,022.23 | $ 1,018.45 | $ 1,018.45 | $ 1,023.49 |
Expenses Paid per $1,000* | $ 3.01 | $ 6.82 | $ 6.82 | $ 1.73 |
Annualized Expense Ratios** | Class A | Class B | Class C | Class S |
DWS LifeCompass 2020 Fund | .59% | 1.34% | 1.34% | .34% |
For more information, please refer to the Fund's prospectus.
DWS LifeCompass 2030 Fund
Expenses and Value of a $1,000 Investment for the six months ended August 31, 2010 | ||||
Actual Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 971.00 | $ 968.60 | $ 968.60 | $ 972.20 |
Expenses Paid per $1,000* | $ 2.88 | $ 6.60 | $ 6.60 | $ 1.64 |
Hypothetical 5% Fund Return | Class A | Class B | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 1,022.28 | $ 1,018.50 | $ 1,018.50 | $ 1,023.54 |
Expenses Paid per $1,000* | $ 2.96 | $ 6.77 | $ 6.77 | $ 1.68 |
Annualized Expense Ratios** | Class A | Class B | Class C | Class S |
DWS LifeCompass 2030 Fund | .58% | 1.33% | 1.33% | .33% |
For more information, please refer to the Fund's prospectus.
DWS LifeCompass 2040 Fund
Expenses and Value of a $1,000 Investment for the six months ended August 31, 2010 | |||
Actual Fund Return | Class A | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 968.80 | $ 966.00 | $ 970.20 |
Expenses Paid per $1,000* | $ 2.73 | $ 6.44 | $ 1.49 |
Hypothetical 5% Fund Return | Class A | Class C | Class S |
Beginning Account Value 3/1/10 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 8/31/10 | $ 1,022.43 | $ 1,018.65 | $ 1,023.69 |
Expenses Paid per $1,000* | $ 2.80 | $ 6.61 | $ 1.53 |
Annualized Expense Ratios** | Class A | Class C | Class S |
DWS LifeCompass 2040 Fund | .55% | 1.30% | .30% |
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 both institutional and retail clients.
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.
DWS Investments is the retail brand name of the US asset management activities of Deutsche Bank AG and DIMA, representing 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.
QS Investors, LLC, New York, New York, is the subadvisor for the fund. Please see Note B. Related Parties in the Notes to Financial Statements for details.
Portfolio Management Team
Inna Okounkova
Robert Wang
Portfolio Managers, QS Investors, LLC
Market Overview and Fund Performance
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. Current and future portfolio holdings are subject to risk.
The performance of the global financial markets throughout the past 12 months reflected the shifting outlook for the global economy. During the first eight months of the period, an environment of robust corporate earnings, improving growth and stimulative policies by global governments contributed to strong performance for global equities and non-government bonds. At the same time, the improving economic outlook, together with a steady revival of investors' risk appetites, led to a gradual — albeit uneven — uptrend in government bond yields.
The investment environment began to change for the worse near the beginning of May, however. The onset of the European sovereign debt crisis, together with efforts by the Chinese government to rein in the country's overheating real estate sector, fueled fears that the global economy may be on the verge of a "double dip." This concern was reinforced by a series of weaker-than-expected economic reports in the United States. Investors rapidly grew more risk-averse, leading to a sharp sell-off in stocks and exceptionally strong performance for government bonds in the final three months of the period.
Although the concerns about the global economy caused the markets to weaken during the spring and summer, most major indices finished the annual period in positive territory. The Russell 3000® Index, a measure of broad US stock market performance, rose 5.64%.1 Within the index, domestic small-cap stocks — as measured by the Russell 2000® Index, gained 6.60% and outperformed large caps (based on the 5.55% return of the Russell 1000® Index).2,3 With regard to investment styles, the 6.21% return of the Russell 3000® Growth Index outpaced the 5.08% return generated by the Russell 3000® Value Index.4,5
Overseas, developed-market international stocks lagged the US market by a wide margin, as gauged by the -2.34% return of the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index, due largely to underperformance in Europe.6 However, the emerging markets produced a strong return of 18.02% (based on the MSCI Emerging Markets Index).7 Emerging economies held up very well during the economic downturn in the developed world, thanks to strong government finances, sound fiscal policies and rising domestic demand.
The prospect of slowing economic growth provided a firm underpinning for the 12-month return of government bonds. The Barclays Capital U.S. Treasury Bond Index, which measures the performance of US Treasury notes with a variety of maturities, returned 8.13%.8 At the same time, corporate bonds were boosted by investors' search for higher-yielding alternatives to government issues. The Barclays Capital U.S. Aggregate Bond Index, which gauges the performance of the US bond market as a whole, returned 9.18%, while the Barclays Capital U.S. Corporate High-Yield Bond Index, which measures the performance of high-yield bonds, surged 21.52%.9,10
The DWS Target Date Series provides a one-stop method for investors to achieve extensive portfolio diversification.11 Each fund in the series follows a dynamic "glide path" — or a shifting mix of various asset classes — throughout the life of the fund. This path is designed to make the weightings in each fund more conservative as the targeted retirement date approaches. In this way, we manage the portfolios with each fund's specific target date in mind. The funds' investments are allocated to both DWS mutual funds and exchange-traded funds, or ETFs.12
For the one-year period ended August 31, 2010, all five funds in the DWS Target Date Series underperformed the average return of the funds in their respective Lipper peer groups.
Positive Contributors to Fund Performance
Among our positions in the DWS LifeCompass Retirement, 2015, 2020, 2030 and 2040 mutual funds, the largest positive contributions to performance — relative to our strategic asset allocation — came from the DWS RREEF Global Real Estate Securities Fund and DWS Gold & Precious Metals Fund. Global real estate was helped by strength in the Asian property market, while gold-related shares gained a boost from investor worries about the declining value of major world currencies. In DWS LifeCompass Retirement Fund, which has the highest allocation to fixed income, the largest contributions relative to our strategic asset allocation came from DWS Floating Rate Plus Fund and DWS Short Duration Plus Fund.
Among our positions in country ETFs, our investment in iShares MSCI Canada Index Fund was the strongest contributor across all five funds.13 Canadian stocks performed well, due to strength in the natural resource space.
Negative Contributors to Fund Performance
On the fund level, DWS International Fund — which lagged its benchmark — proved to be the largest detractor to relative performance in all five portfolios. DWS S&P 500 Plus Fund also detracted from the performance of all five funds. A position in the Financial Select Sector SPDR Fund, which is no longer held, was a further detractor from the funds' performance.14
Among country ETFs, iShares MSCI Australia Index Fund was the largest detractor in the 2030 fund, while iShares MSCI Germany Index Fund weighed on relative performance across all other funds in the LifeCompass series.15,16
We also experienced underperformance from our tactical asset allocation, or TAA. In this aspect of our strategy, we implement underweights or overweights of a particular asset class relative to its longer-term target.17 TAAs are updated every month using both fundamental analysis and quantitative models.
Outlook and Positioning
We are maintaining a rigorous approach to strategic and tactical asset allocation, combined with diligent risk management. As the market environment continues to evolve, we will review these strategic allocations annually and alter the asset mix as we deem appropriate.
1 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.2 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.
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.
4 The Russell 3000 Growth Index measures the performance of the broad growth segment of the US equity universe. It includes those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth values.
5 The Russell 3000 Value Index measures the performance of the broad value segment of the US equity universe. It includes those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values.
Index returns assume reinvested dividends and, unlike fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
6 The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index is an unmanaged, capitalization-weighted index that tracks international stock performance in the 21 developed markets of Europe, Australasia and the Far East. The index is calculated using closing local market prices and translates into US dollars using the London close foreign exchange rates.
7 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.
8 The Barclays Capital U.S. Treasury Bond Index is an unmanaged index reflecting the performance of all public obligations and does not focus on one particular segment of the Treasury market.
9 The Barclays Capital U.S. Aggregate Bond Index is an unmanaged, market-value- weighted measure of Treasury issues, agency issues, corporate bond issues and mortgage securities.
10 The Barclays Capital U.S. Corporate High-Yield Bond Index covers the US dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.
Index returns assume reinvested dividends and, unlike fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
11 Diversification neither assures a profit nor guarantees against a loss.
12 An exchange-traded fund (ETF) is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.
13 The iShares MSCI Canada Index Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the Canadian market, as measured by the MSCI Canada Index.
14 The Financial Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Financial Select Sector Index.
15 The iShares MSCI Australia Index Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the Australian market, as represented by the MSCI Australia Index.
16 The iShares MSCI Germany Index Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the German market, as measured by the MSCI Germany Index.
17 "Overweight" means the fund holds a higher weighting in a given sector or security than the benchmark. "Underweight" means the fund holds a lower weighting.
DWS LifeCompass Retirement Fund
Asset Allocation (As a % of Investment Portfolio) | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income — Money Market Fund | 1% | 4% |
Fixed Income — Bond Funds | 63% | 60% |
Equity — Equity Funds | 30% | 27% |
Equity — Exchange-Traded Funds | 6% | 9% |
| 100% | 100% |
Target Allocation | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income Funds | 65% | 65% |
Equity Funds | 35% | 35% |
Asset allocation is subject to change.
DWS LifeCompass 2015 Fund
Asset Allocation (As a % of Investment Portfolio) | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income — Money Market Fund | 1% | 3% |
Fixed Income — Bond Funds | 40% | 36% |
Equity — Equity Funds | 49% | 54% |
Equity — Exchange-Traded Funds | 10% | 7% |
| 100% | 100% |
Target Allocation | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income Funds | 40% | 40% |
Equity Funds | 60% | 60% |
Asset allocation is subject to change.
DWS LifeCompass 2020 Fund
Asset Allocation (As a % of Investment Portfolio) | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income — Money Market Fund | 1% | 3% |
Fixed Income — Bond Funds | 29% | 26% |
Equity — Equity Funds | 59% | 64% |
Equity — Exchange-Traded Funds | 11% | 7% |
| 100% | 100% |
Target Allocation | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income Funds | 30% | 30% |
Equity Funds | 70% | 70% |
Asset allocation is subject to change.
DWS LifeCompass 2030 Fund
Asset Allocation (As a % of Investment Portfolio) | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income — Money Market Fund | 1% | 2% |
Fixed Income — Bond Funds | 8% | 7% |
Equity — Equity Funds | 77% | 76% |
Equity — Exchange-Traded Funds | 14% | 15% |
| 100% | 100% |
Target Allocation | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income Funds | 10% | 10% |
Equity Funds | 90% | 90% |
Asset allocation is subject to change.
DWS LifeCompass 2040 Fund
Asset Allocation (As a % of Investment Portfolio) | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income — Money Market Fund | 2% | 2% |
Fixed Income — Bond Funds | 3% | 4% |
Equity — Equity Funds | 81% | 74% |
Equity — Exchange-Traded Funds | 14% | 20% |
| 100% | 100% |
Target Allocation | 8/31/10 | 8/31/09 |
|
|
|
Fixed Income Funds | 5% | 5% |
Equity Funds | 95% | 95% |
Asset allocation is subject to change.
For more complete details about each Fund's investment portfolio, see pages 30-43. A quarterly Fact Sheet is available upon request. Please see the Account Management Resources section for contact information.
Following each 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. A complete list of each Fund's portfolio holdings is also posted on www.dws-investments.com from time to time. Please see the Funds' current prospectus for more information.
Investment Portfolios as of August 31, 2010
DWS LifeCompass Retirement Fund
|
| Value ($) |
|
| |
Equity — Equity Funds 29.1% | ||
DWS Capital Growth Fund "Institutional" | 32,048 | 1,411,378 |
DWS Communications Fund "Institutional" | 709 | 11,345 |
DWS Disciplined Market Neutral Fund "Institutional" | 24,031 | 228,773 |
DWS Diversified International Equity Fund "Institutional" | 341,265 | 2,146,557 |
DWS Dreman International Value Fund "Institutional"* | 4,962 | 38,658 |
DWS Dreman Mid Cap Value Fund "Institutional" | 19,575 | 177,935 |
DWS Dreman Small Cap Value Fund "Institutional" | 25,391 | 759,185 |
DWS Emerging Markets Equity Fund "Institutional" | 27,699 | 452,604 |
DWS Equity 500 Index Portfolio "Institutional" | 30,725 | 3,670,684 |
DWS Europe Equity Fund "Institutional" | 30,698 | 633,297 |
DWS Global Small Cap Growth Fund "Institutional"* | 15,244 | 491,000 |
DWS Global Thematic Fund "Institutional" | 14,743 | 298,404 |
DWS Gold & Precious Metals Fund "Institutional" | 10,811 | 246,265 |
DWS Growth & Income Fund "Institutional" | 182,766 | 2,472,819 |
DWS Health Care Fund "Institutional"* | 30,288 | 658,761 |
DWS International Fund "Institutional" | 48,152 | 1,902,505 |
DWS Large Cap Focus Growth Fund "Institutional" | 70 | 1,666 |
DWS Large Cap Value Fund "Institutional" | 94,692 | 1,444,993 |
DWS RREEF Global Infrastructure Fund "Institutional"* | 34,810 | 305,633 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 38,131 | 261,195 |
DWS RREEF Real Estate Securities Fund "Institutional" | 31,958 | 504,931 |
DWS S&P 500 Plus Fund "S" | 264,351 | 2,632,931 |
DWS Small Cap Core Fund "S" | 70,185 | 930,659 |
DWS Small Cap Growth Fund "Institutional"* | 22,044 | 366,364 |
DWS Strategic Value Fund "Institutional" | 125,065 | 3,443,047 |
DWS Technology Fund "Institutional"* | 150,637 | 1,673,580 |
Total Equity — Equity Funds (Cost $27,422,515) | 27,165,169 | |
| ||
Equity — Exchange-Traded Funds 6.6% | ||
iShares MSCI Australia Index Fund | 36,862 | 777,051 |
iShares MSCI Canada Index Fund | 30,369 | 792,631 |
iShares MSCI EAFE Small Cap Index Fund | 14,120 | 484,034 |
iShares MSCI France Index Fund | 11,918 | 248,490 |
iShares MSCI Germany Index Fund | 29,825 | 575,623 |
iShares MSCI Japan Index Fund | 86,761 | 813,818 |
iShares MSCI Switzerland Index Fund | 5,985 | 129,096 |
iShares MSCI United Kingdom Index Fund | 153,113 | 2,290,570 |
Total Equity — Exchange-Traded Funds (Cost $6,054,829) | 6,111,313 | |
| ||
Fixed Income — Bond Funds 61.2% | ||
DWS Core Fixed Income Fund "Institutional" | 1,658,204 | 15,736,356 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 82,285 | 920,769 |
DWS Floating Rate Plus Fund "Institutional" | 308,916 | 2,804,953 |
DWS Global Bond Fund "S" | 3,610 | 37,723 |
DWS Global Inflation Plus Fund "Institutional" | 272,019 | 2,799,080 |
DWS GNMA Fund "Institutional" | 174,695 | 2,714,766 |
DWS High Income Fund "Institutional" | 588,295 | 2,747,340 |
DWS Short Duration Plus Fund "Institutional" | 1,595,366 | 15,203,841 |
DWS US Bond Index Fund "Institutional" | 1,295,786 | 14,162,944 |
Total Fixed Income — Bond Funds (Cost $57,241,819) | 57,127,772 | |
| ||
Fixed Income — Money Market Fund 0.5% | ||
Central Cash Management Fund (Cost $446,542) | 446,542 | 446,542 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $91,165,705)+ | 97.4 | 90,850,796 |
Other Assets and Liabilities, Net | 2.6 | 2,458,254 |
Net Assets | 100.0 | 93,309,050 |
+ The cost for federal income tax purposes was $92,984,441. At August 31, 2010, net unrealized depreciation for all securities based on tax cost was $2,133,645. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $2,756,634 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $4,890,279.
During the year ended August 31, 2010, purchases and sales of Underlying Affiliated Funds (excluding money market funds) aggregated $46,505,911 and $49,091,090, respectively. Purchases and sales of Underlying Non-affiliated Funds (excluding money market funds) aggregated $3,457,234 and $5,813,581, respectively.
MSCI: Morgan Stanley Capital International
EAFE: Europe, Australasia and Far East
Fair Value Measurements
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of August 31, 2010 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total |
| ||||
Equity Funds | $ 27,165,169 | $ — | $ — | $ 27,165,169 |
Exchange-Traded Funds | 6,111,313 | — | — | 6,111,313 |
Bond Funds | 57,127,772 | — | — | 57,127,772 |
Money Market Funds | 446,542 | — | — | 446,542 |
Total | $ 90,850,796 | $ — | $ — | $ 90,850,796 |
There have been no significant transfers in and out of Level 1 and Level 2 fair value measurements during the year ended August 31, 2010.
The accompanying notes are an integral part of the financial statements.
|
| Value ($) |
|
| |
Equity — Equity Funds 49.1% | ||
DWS Capital Growth Fund "Institutional" | 90,562 | 3,988,334 |
DWS Communications Fund "Institutional" | 17,182 | 274,905 |
DWS Disciplined Market Neutral Fund "Institutional" | 25,809 | 245,701 |
DWS Diversified International Equity Fund "Institutional" | 849,505 | 5,343,386 |
DWS Dreman International Value Fund "Institutional"* | 46,530 | 362,470 |
DWS Dreman Mid Cap Value Fund "Institutional" | 67,106 | 609,996 |
DWS Dreman Small Cap Value Fund "Institutional" | 91,793 | 2,744,602 |
DWS Emerging Markets Equity Fund "Institutional" | 201,115 | 3,286,222 |
DWS Equity 500 Index Portfolio "Institutional" | 102,947 | 12,299,128 |
DWS Europe Equity Fund "Institutional" | 196,527 | 4,054,357 |
DWS Global Small Cap Growth Fund "Institutional"* | 39,393 | 1,268,864 |
DWS Global Thematic Fund "Institutional" | 51,887 | 1,050,196 |
DWS Gold & Precious Metals Fund "Institutional" | 28,577 | 650,993 |
DWS Growth & Income Fund "Institutional" | 512,921 | 6,939,822 |
DWS Health Care Fund "Institutional"* | 119,274 | 2,594,213 |
DWS International Fund "Institutional" | 73,011 | 2,884,656 |
DWS Large Cap Focus Growth Fund "Institutional" | 10,069 | 240,741 |
DWS Large Cap Value Fund "Institutional" | 421,330 | 6,429,502 |
DWS RREEF Global Infrastructure Fund "Institutional"* | 72,785 | 639,051 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 97,185 | 665,719 |
DWS RREEF Real Estate Securities Fund "Institutional" | 52,869 | 835,327 |
DWS S&P 500 Plus Fund "S" | 703,162 | 7,003,493 |
DWS Small Cap Core Fund "S" | 275,130 | 3,648,222 |
DWS Small Cap Growth Fund "Institutional"* | 70,104 | 1,165,131 |
DWS Strategic Value Fund "Institutional" | 241,467 | 6,647,584 |
DWS Technology Fund "Institutional"* | 441,968 | 4,910,270 |
Total Equity — Equity Funds (Cost $86,336,405) | 80,782,885 | |
| ||
Equity — Exchange-Traded Funds 10.4% | ||
iShares MSCI Australia Index Fund | 104,575 | 2,204,441 |
iShares MSCI Canada Index Fund | 80,067 | 2,089,749 |
iShares MSCI EAFE Small Cap Index Fund | 51,062 | 1,750,405 |
iShares MSCI France Index Fund | 7,605 | 158,564 |
iShares MSCI Germany Index Fund | 76,336 | 1,473,285 |
iShares MSCI Japan Index Fund | 326,145 | 3,059,240 |
iShares MSCI United Kingdom Index Fund | 430,425 | 6,439,158 |
Total Equity — Exchange-Traded Funds (Cost $17,257,868) | 17,174,842 | |
| ||
Fixed Income — Bond Funds 39.5% | ||
DWS Core Fixed Income Fund "Institutional" | 2,275,116 | 21,590,852 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 272,267 | 3,046,668 |
DWS Enhanced Commodity Strategy Fund "Institutional" | 234,490 | 841,820 |
DWS Floating Rate Plus Fund "Institutional" | 168,740 | 1,532,158 |
DWS Global Bond Fund "S" | 40,529 | 423,529 |
DWS Global Inflation Plus Fund "Institutional" | 420,494 | 4,326,884 |
DWS GNMA Fund "Institutional" | 169,668 | 2,636,633 |
DWS High Income Fund "Institutional" | 1,368,241 | 6,389,684 |
DWS Short Duration Plus Fund "Institutional" | 635,966 | 6,060,753 |
DWS US Bond Index Fund "Institutional" | 1,672,704 | 18,282,650 |
Total Fixed Income — Bond Funds (Cost $65,304,641) | 65,131,631 | |
| ||
Fixed Income — Money Market Fund 1.1% | ||
Central Cash Management Fund (Cost $1,868,667) | 1,868,667 | 1,868,667 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $170,767,581)+ | 100.1 | 164,958,025 |
Other Assets and Liabilities, Net | (0.1) | (236,313) |
Net Assets | 100.0 | 164,721,712 |
+ The cost for federal income tax purposes was $176,291,298. At August 31, 2010, net unrealized depreciation for all securities based on tax cost was $11,333,273. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $4,296,386 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $15,629,659.
During the year ended August 31, 2010, purchases and sales of Underlying Affiliated Funds (excluding money market funds) aggregated $72,006,229 and $91,994,666, respectively. Purchases and sales of Underlying Non-affiliated Funds (excluding money market funds) aggregated $16,130,707 and $11,995,562, respectively.
MSCI: Morgan Stanley Capital International
EAFE: Europe, Australasia and Far East
Fair Value Measurements
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of August 31, 2010 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total |
| ||||
Equity Funds | $ 80,782,885 | $ — | $ — | $ 80,782,885 |
Exchange-Traded Funds | 17,174,842 | — | — | 17,174,842 |
Bond Funds | 65,131,631 | — | — | 65,131,631 |
Money Market Funds | 1,868,667 | — | — | 1,868,667 |
Total | $ 164,958,025 | $ — | $ — | $ 164,958,025 |
There have been no significant transfers in and out of Level 1 and Level 2 fair value measurements during the year ended August 31, 2010.
The accompanying notes are an integral part of the financial statements.
|
| Value ($) |
|
| |
Equity — Equity Funds 59.6% | ||
DWS Capital Growth Fund "Institutional" | 83,230 | 3,665,451 |
DWS Communications Fund "Institutional" | 44,212 | 707,398 |
DWS Disciplined Market Neutral Fund "Institutional" | 22,027 | 209,701 |
DWS Diversified International Equity Fund "Institutional" | 1,397,282 | 8,788,903 |
DWS Dreman International Value Fund "Institutional"* | 96,043 | 748,172 |
DWS Dreman Mid Cap Value Fund "Institutional" | 102,593 | 932,574 |
DWS Dreman Small Cap Value Fund "Institutional" | 130,113 | 3,890,380 |
DWS Emerging Markets Equity Fund "Institutional" | 313,730 | 5,126,350 |
DWS Equity 500 Index Portfolio "Institutional" | 182,993 | 21,862,213 |
DWS Europe Equity Fund "Institutional" | 309,152 | 6,377,812 |
DWS Global Small Cap Growth Fund "Institutional"* | 55,655 | 1,792,659 |
DWS Global Thematic Fund "Institutional" | 128,172 | 2,594,210 |
DWS Gold & Precious Metals Fund "Institutional" | 34,746 | 791,516 |
DWS Growth & Income Fund "Institutional" | 631,005 | 8,537,503 |
DWS Health Care Fund "Institutional"* | 175,937 | 3,826,633 |
DWS International Fund "Institutional" | 112,604 | 4,449,000 |
DWS Large Cap Focus Growth Fund "Institutional" | 105,510 | 2,522,737 |
DWS Large Cap Value Fund "Institutional" | 678,099 | 10,347,795 |
DWS RREEF Global Infrastructure Fund "Institutional"* | 110,759 | 972,468 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 162,694 | 1,114,456 |
DWS RREEF Real Estate Securities Fund "Institutional" | 98,474 | 1,555,895 |
DWS S&P 500 Plus Fund "S" | 919,151 | 9,154,742 |
DWS Small Cap Core Fund "S" | 393,314 | 5,215,343 |
DWS Small Cap Growth Fund "Institutional"* | 99,054 | 1,646,277 |
DWS Strategic Value Fund "Institutional" | 309,402 | 8,517,846 |
DWS Technology Fund "Institutional"* | 575,122 | 6,389,601 |
Total Equity — Equity Funds (Cost $133,408,578) | 121,737,635 | |
| ||
Equity — Exchange-Traded Funds 11.1% | ||
iShares MSCI Australia Index Fund | 121,961 | 2,570,938 |
iShares MSCI Canada Index Fund | 119,607 | 3,121,743 |
iShares MSCI EAFE Small Cap Index Fund | 63,111 | 2,163,445 |
iShares MSCI France Index Fund | 8,667 | 180,707 |
iShares MSCI Germany Index Fund | 101,727 | 1,963,331 |
iShares MSCI Japan Index Fund | 464,031 | 4,352,611 |
iShares MSCI Netherlands Investable Market Index Fund | 2,486 | 44,151 |
iShares MSCI United Kingdom Index Fund | 544,230 | 8,141,681 |
Total Equity — Exchange-Traded Funds (Cost $22,906,888) | 22,538,607 | |
| ||
Fixed Income — Bond Funds 28.6% | ||
DWS Core Fixed Income Fund "Institutional" | 1,739,877 | 16,511,431 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 336,461 | 3,764,995 |
DWS Enhanced Commodity Strategy Fund "Institutional" | 292,964 | 1,051,742 |
DWS Floating Rate Plus Fund "Institutional" | 141,090 | 1,281,099 |
DWS Global Bond Fund "S" | 36,205 | 378,344 |
DWS Global Inflation Plus Fund "Institutional" | 313,861 | 3,229,629 |
DWS GNMA Fund "Institutional" | 142,494 | 2,214,363 |
DWS High Income Fund "Institutional" | 1,699,522 | 7,936,769 |
DWS Short Duration Plus Fund "Institutional" | 534,493 | 5,093,716 |
DWS US Bond Index Fund "Institutional" | 1,553,543 | 16,980,225 |
Total Fixed Income — Bond Funds (Cost $57,953,641) | 58,442,313 | |
| ||
Fixed Income — Money Market Fund 0.5% | ||
Central Cash Management Fund (Cost $1,066,105) | 1,066,105 | 1,066,105 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $215,335,212)+ | 99.8 | 203,784,660 |
Other Assets and Liabilities, Net | 0.2 | 408,855 |
Net Assets | 100.0 | 204,193,515 |
+ The cost for federal income tax purposes was $221,373,871. At August 31, 2010, net unrealized depreciation for all securities based on tax cost was $17,589,211 This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $4,242,951 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $21,832,162.
During the year ended August 31, 2010, purchases and sales of Underlying Affiliated Funds (excluding money market funds) aggregated $84,488,238 and $99,325,053, respectively. Purchases and sales of Underlying Non-affiliated Funds (excluding money market funds) aggregated $20,660,976 and $12,218,882, respectively.
MSCI: Morgan Stanley Capital International
EAFE: Europe, Australasia and Far East
Fair Value Measurements
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of August 31, 2010 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total |
| ||||
Equity Funds | $ 121,737,635 | $ — | $ — | $ 121,737,635 |
Exchange-Traded Funds | 22,538,607 | — | — | 22,538,607 |
Bond Funds | 58,442,313 | — | — | 58,442,313 |
Money Market Funds | 1,066,105 | — | — | 1,066,105 |
Total | $ 203,784,660 | $ — | $ — | $ 203,784,660 |
There have been no significant transfers in and out of Level 1 and Level 2 fair value measurements during the year ended August 31, 2010.
The accompanying notes are an integral part of the financial statements.
|
| Value ($) |
|
| |
Equity — Equity Funds 76.3% | ||
DWS Capital Growth Fund "Institutional" | 47,273 | 2,081,918 |
DWS Communications Fund "Institutional" | 11,061 | 176,969 |
DWS Disciplined Market Neutral Fund "Institutional" | 1,127 | 10,732 |
DWS Diversified International Equity Fund "Institutional" | 656,927 | 4,132,070 |
DWS Dreman International Value Fund "Institutional"* | 66,964 | 521,648 |
DWS Dreman Mid Cap Value Fund "Institutional" | 22,628 | 205,686 |
DWS Dreman Small Cap Value Fund "Institutional" | 44,192 | 1,321,330 |
DWS Emerging Markets Equity Fund "Institutional" | 115,383 | 1,885,352 |
DWS Equity 500 Index Portfolio "Institutional" | 44,869 | 5,360,477 |
DWS Europe Equity Fund "Institutional" | 89,210 | 1,840,392 |
DWS Global Small Cap Growth Fund "Institutional"* | 19,991 | 643,909 |
DWS Global Thematic Fund "Institutional" | 37,833 | 765,738 |
DWS Gold & Precious Metals Fund "Institutional" | 16,774 | 382,121 |
DWS Growth & Income Fund "Institutional" | 252,114 | 3,411,106 |
DWS Health Care Fund "Institutional"* | 58,238 | 1,266,671 |
DWS International Fund "Institutional" | 38,903 | 1,537,060 |
DWS Large Cap Focus Growth Fund "Institutional" | 11,614 | 277,699 |
DWS Large Cap Value Fund "Institutional" | 194,542 | 2,968,707 |
DWS Mid Cap Growth Fund "Institutional"* | 2,289 | 27,174 |
DWS RREEF Global Infrastructure Fund "Institutional"* | 17,907 | 157,227 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 71,428 | 489,285 |
DWS RREEF Real Estate Securities Fund "Institutional" | 55,777 | 881,277 |
DWS S&P 500 Plus Fund "S" | 390,560 | 3,889,974 |
DWS Small Cap Core Fund "S" | 130,927 | 1,736,098 |
DWS Small Cap Growth Fund "Institutional"* | 34,451 | 572,568 |
DWS Strategic Value Fund "Institutional" | 162,368 | 4,469,996 |
DWS Technology Fund "Institutional"* | 294,800 | 3,275,232 |
Total Equity — Equity Funds (Cost $46,540,436) | 44,288,416 | |
| ||
Equity — Exchange-Traded Funds 13.9% | ||
iShares MSCI Australia Index Fund | 44,960 | 947,757 |
iShares MSCI Canada Index Fund | 38,242 | 998,116 |
iShares MSCI EAFE Small Cap Index Fund | 34,982 | 1,199,183 |
iShares MSCI France Index Fund | 2,088 | 43,535 |
iShares MSCI Germany Index Fund | 41,897 | 808,612 |
iShares MSCI Japan Index Fund | 140,910 | 1,321,736 |
iShares MSCI Switzerland Index Fund | 1,427 | 30,780 |
iShares MSCI United Kingdom Index Fund | 182,297 | 2,727,163 |
Total Equity — Exchange-Traded Funds (Cost $8,146,783) | 8,076,882 | |
| ||
Fixed Income — Bond Funds 7.5% | ||
DWS Core Fixed Income Fund "Institutional" | 69,361 | 658,236 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 82,170 | 919,487 |
DWS Enhanced Commodity Strategy Fund "Institutional" | 81,675 | 293,213 |
DWS Floating Rate Plus Fund "Institutional" | 6,712 | 60,945 |
DWS Global Bond Fund "S" | 10,847 | 113,347 |
DWS Global Inflation Plus Fund "Institutional" | 29,798 | 306,620 |
DWS GNMA Fund "Institutional" | 5,693 | 88,476 |
DWS High Income Fund "Institutional" | 192,901 | 900,847 |
DWS Short Duration Plus Fund "Institutional" | 25,281 | 240,927 |
DWS US Bond Index Fund "Institutional" | 72,484 | 792,245 |
Total Fixed Income — Bond Funds (Cost $4,164,752) | 4,374,343 | |
| ||
Fixed Income — Money Market Fund 1.0% | ||
Central Cash Management Fund (Cost $576,451) | 576,451 | 576,451 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $59,428,422)+ | 98.7 | 57,316,092 |
Other Assets and Liabilities, Net | 1.3 | 765,400 |
Net Assets | 100.0 | 58,081,492 |
+ The cost for federal income tax purposes was $61,088,322. At August 31, 2010, net unrealized depreciation for all securities based on tax cost was $3,772,230. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $1,682,266 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $5,454,496.
During the year ended August 31, 2010, purchases and sales of Underlying Affiliated Funds (excluding money market funds) aggregated $28,410,507 and $18,589,825, respectively. Purchases and sales of Underlying Non-affiliated Funds (excluding money market funds) aggregated $7,089,676 and $5,619,347, respectively.
MSCI: Morgan Stanley Capital International
EAFE: Europe, Australasia and Far East
Fair Value Measurements
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of August 31, 2010 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total |
| ||||
Equity Funds | $ 44,288,416 | $ — | $ — | $ 44,288,416 |
Exchange-Traded Funds | 8,076,882 | — | — | 8,076,882 |
Bond Funds | 4,374,343 | — | — | 4,374,343 |
Money Market Funds | 576,451 | — | — | 576,451 |
Total | $ 57,316,092 | $ — | $ — | $ 57,316,092 |
There have been no significant transfers in and out of Level 1 and Level 2 fair value measurements during the year ended August 31, 2010.
The accompanying notes are an integral part of the financial statements.
DWS LifeCompass 2040 Fund
|
| Value ($) |
|
| |
Equity — Equity Funds 80.0% | ||
DWS Capital Growth Fund "Institutional" | 21,835 | 961,623 |
DWS Communications Fund "Institutional" | 5,234 | 83,744 |
DWS Disciplined Market Neutral Fund "Institutional" | 61 | 577 |
DWS Diversified International Equity Fund "Institutional" | 279,474 | 1,757,893 |
DWS Dreman International Value Fund "Institutional"* | 15,896 | 123,831 |
DWS Dreman Mid Cap Value Fund "Institutional" | 15,923 | 144,741 |
DWS Dreman Small Cap Value Fund "Institutional" | 20,404 | 610,072 |
DWS Emerging Markets Equity Fund "Institutional" | 59,715 | 975,750 |
DWS Equity 500 Index Portfolio "Institutional" | 20,114 | 2,403,024 |
DWS Europe Equity Fund "Institutional" | 34,650 | 714,822 |
DWS Global Small Cap Growth Fund "Institutional"* | 9,905 | 319,055 |
DWS Global Thematic Fund "Institutional" | 17,593 | 356,077 |
DWS Gold & Precious Metals Fund "Institutional" | 7,603 | 173,189 |
DWS Growth & Income Fund "Institutional" | 119,850 | 1,621,569 |
DWS Health Care Fund "Institutional"* | 22,662 | 492,906 |
DWS International Fund "Institutional" | 20,736 | 819,264 |
DWS Large Cap Focus Growth Fund "Institutional" | 3,153 | 75,394 |
DWS Large Cap Value Fund "Institutional" | 77,861 | 1,188,155 |
DWS Mid Cap Growth Fund "Institutional"* | 126 | 1,490 |
DWS RREEF Global Infrastructure Fund "Institutional"* | 22,128 | 194,281 |
DWS RREEF Global Real Estate Securities Fund "Institutional" | 34,742 | 237,981 |
DWS RREEF Real Estate Securities Fund "Institutional" | 24,356 | 384,824 |
DWS S&P 500 Plus Fund "S" | 177,605 | 1,768,943 |
DWS Small Cap Core Fund "S" | 59,381 | 787,392 |
DWS Small Cap Growth Fund "Institutional"* | 15,303 | 254,339 |
DWS Strategic Value Fund "Institutional" | 70,780 | 1,948,576 |
DWS Technology Fund "Institutional"* | 121,880 | 1,354,087 |
Total Equity — Equity Funds (Cost $19,417,670) | 19,753,599 | |
| ||
Equity — Exchange-Traded Funds 13.8% | ||
iShares MSCI Australia Index Fund | 16,751 | 353,111 |
iShares MSCI Canada Index Fund | 17,982 | 469,330 |
iShares MSCI EAFE Small Cap Index Fund | 14,203 | 486,879 |
iShares MSCI France Index Fund | 1,592 | 33,193 |
iShares MSCI Germany Index Fund | 13,231 | 255,359 |
iShares MSCI Japan Index Fund | 64,371 | 603,800 |
iShares MSCI Netherlands Investable Market Index Fund | 249 | 4,422 |
iShares MSCI Switzerland Index Fund | 282 | 6,083 |
iShares MSCI United Kingdom Index Fund | 80,676 | 1,206,913 |
Total Equity — Exchange-Traded Funds (Cost $3,495,958) | 3,419,090 | |
| ||
Fixed Income — Bond Funds 3.0% | ||
DWS Core Fixed Income Fund "Institutional" | 6,911 | 65,584 |
DWS Emerging Markets Fixed Income Fund "Institutional" | 22,937 | 256,670 |
DWS Enhanced Commodity Strategy Fund "Institutional" | 36,339 | 130,457 |
DWS Floating Rate Plus Fund "Institutional" | 1,198 | 10,874 |
DWS Global Bond Fund "S" | 4,586 | 47,927 |
DWS GNMA Fund "Institutional" | 729 | 11,333 |
DWS High Income Fund "Institutional" | 26,543 | 123,954 |
DWS Short Duration Plus Fund "Institutional" | 2,825 | 26,924 |
DWS US Bond Index Fund "Institutional" | 5,965 | 65,197 |
Total Fixed Income — Bond Funds (Cost $711,275) | 738,920 | |
| ||
Fixed Income — Money Market Fund 2.1% | ||
Central Cash Management Fund (Cost $525,450) | 525,450 | 525,450 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $24,150,353)+ | 98.9 | 24,437,059 |
Other Assets and Liabilities, Net | 1.1 | 267,625 |
Net Assets | 100.0 | 24,704,684 |
+ The cost for federal income tax purposes was $24,429,709. At August 31, 2010, net unrealized appreciation for all securities based on tax cost was $7,350. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $557,248 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $549,898.
During the year ended August 31, 2010, purchases and sales of Underlying Affiliated Funds (excluding money market funds) aggregated $15,452,282 and $5,184,000, respectively. Purchases and sales of Underlying Non-affiliated Funds (excluding money market funds) aggregated $3,618,355 and $2,826,986, respectively.
MSCI: Morgan Stanley Capital International
EAFE: Europe, Australasia and Far East
Fair Value Measurements
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of August 31, 2010 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total |
| ||||
Equity Funds | $ 19,753,599 | $ — | $ — | $ 19,753,599 |
Exchange-Traded Funds | 3,419,090 | — | — | 3,419,090 |
Bond Funds | 738,920 | — | — | 738,920 |
Money Market Funds | 525,450 | — | — | 525,450 |
Total | $ 24,437,059 | $ — | $ — | $ 24,437,059 |
There have been no significant transfers in and out of Level 1 and Level 2 fair value measurements during the year ended August 31, 2010.
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities
as of August 31, 2010 | |||
Assets | DWS LifeCompass Retirement Fund | DWS LifeCompass 2015 Fund | DWS LifeCompass 2020 Fund |
Investments in Underlying Affiliated Funds, at value (cost $85,110,876, $153,509,713 and $192,428,324) | $ 84,739,483 | $ 147,783,183 | $ 181,246,053 |
Investments in Non-Affiliated Funds, at value (cost $6,054,829, $17,257,868 and $22,906,888) | 6,111,313 | 17,174,842 | 22,538,607 |
Total investments, at value (cost $91,165,705, $170,767,581 and $215,335,212) | 90,850,796 | 164,958,025 | 203,784,660 |
Receivable for investments sold | 1,290,000 | — | 900,000 |
Receivable for Fund shares sold | 2,772,697 | 767,605 | 1,211,672 |
Dividends receivable | 13,232 | 20,305 | 15,583 |
Interest receivable | 77 | 509 | 353 |
Other assets | 17,008 | 17,958 | 18,151 |
Total assets | 94,943,810 | 165,764,402 | 205,930,419 |
Liabilities | |||
Payable for Fund shares redeemed | 1,503,297 | 837,137 | 1,452,240 |
Other accrued expenses and liabilities | 131,463 | 205,553 | 284,664 |
Total liabilities | 1,634,760 | 1,042,690 | 1,736,904 |
Net assets, at value | $ 93,309,050 | $ 164,721,712 | $ 204,193,515 |
Net Assets Consist of | |||
Undistributed net investment income | 294,994 | 221,762 | 3,220,196 |
Net unrealized appreciation (depreciation) on investments | (314,909) | (5,809,556) | (11,550,552) |
Accumulated net realized gain (loss) | (20,946,743) | (56,547,073) | (47,243,081) |
Paid-in capital | 114,275,708 | 226,856,579 | 259,766,952 |
Net assets, at value | $ 93,309,050 | $ 164,721,712 | $ 204,193,515 |
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of August 31, 2010 (continued) | ||
Assets | DWS LifeCompass 2030 Fund | DWS LifeCompass 2040 Fund |
Investments in Underlying Affiliated Funds, at value (cost $51,281,639 and $20,654,395) | $ 49,239,210 | $ 21,017,969 |
Investments in Non-Affiliated Funds, at value (cost $8,146,783 and $3,495,958) | 8,076,882 | 3,419,090 |
Total investments, at value (cost $59,428,422 and $24,150,353) | 57,316,092 | 24,437,059 |
Receivable for Fund shares sold | 893,622 | 323,172 |
Dividends receivable | 603 | 61 |
Interest receivable | 129 | 87 |
Due from Advisor | 11,899 | 6,088 |
Other assets | 32,728 | 8,634 |
Total assets | 58,255,073 | 24,775,101 |
Liabilities | ||
Payable for Fund shares redeemed | 76,828 | 8,459 |
Other accrued expenses and liabilities | 96,753 | 61,958 |
Total liabilities | 173,581 | 70,417 |
Net assets, at value | $ 58,081,492 | $ 24,704,684 |
Net Assets Consist of | ||
Undistributed net investment income | 350,193 | 85,650 |
Net unrealized appreciation (depreciation) on investments | (2,112,330) | 286,706 |
Accumulated net realized gain (loss) | (8,723,370) | (128,193) |
Paid-in capital | 68,566,999 | 24,460,521 |
Net assets, at value | $ 58,081,492 | $ 24,704,684 |
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of August 31, 2010 (continued) | |||
Net Asset Value | DWS LifeCompass Retirement Fund | DWS LifeCompass 2015 Fund | DWS LifeCompass 2020 Fund |
Class A Net assets applicable to shares outstanding | $ 31,428,706 | $ 69,524,588 | $ 80,133,838 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 3,002,498 | 7,166,676 | 6,933,119 |
Net Asset Value and redemption price per share | $ 10.47 | $ 9.70 | $ 11.56 |
Maximum offering price per share (100 ÷ 94.25 of net asset value) | $ 11.11 | $ 10.29 | $ 12.27 |
Class B Net assets applicable to shares outstanding | $ 2,245,655 | $ 7,064,320 | $ 10,397,091 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 214,575 | 728,950 | 908,034 |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share | $ 10.47 | $ 9.69 | $ 11.45 |
Class C Net assets applicable to shares outstanding | $ 6,718,047 | $ 15,212,278 | $ 17,648,969 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 642,279 | 1,570,229 | 1,541,122 |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share | $ 10.46 | $ 9.69 | $ 11.45 |
Class S Net assets applicable to shares outstanding | $ 52,916,642 | $ 72,920,526 | $ 96,013,617 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 5,056,613 | 7,526,699 | 8,290,926 |
Net Asset Value, offering and redemption price per share | $ 10.46 | $ 9.69 | $ 11.58 |
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of August 31, 2010 (continued) | ||
Net Asset Value | DWS LifeCompass 2030 Fund | DWS LifeCompass 2040 Fund |
Class A Net assets applicable to shares outstanding | $ 40,403,157 | $ 16,530,583 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 5,022,231 | 2,314,522 |
Net Asset Value and redemption price per share | $ 8.04 | $ 7.14 |
Maximum offering price per share (100 ÷ 94.25 of net asset value) | $ 8.53 | $ 7.58 |
Class B Net assets applicable to shares outstanding | $ 1,773,487 | — |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 221,246 | — |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share | $ 8.02 | — |
Class C Net assets applicable to shares outstanding | $ 5,137,889 | $ 187,566 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 641,381 | 26,383 |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share | $ 8.01 | $ 7.11 |
Class S Net assets applicable to shares outstanding | $ 10,766,959 | $ 7,986,535 |
Shares outstanding of beneficial interest, $.01 par value, unlimited number of shares authorized | 1,336,867 | 1,115,365 |
Net Asset Value, offering and redemption price per share | $ 8.05 | $ 7.16 |
The accompanying notes are an integral part of the financial statements.
for the year ended August 31, 2010 | |||
Investment Income | DWS LifeCompass Retirement Fund | DWS LifeCompass 2015 Fund | DWS LifeCompass 2020 Fund |
Income distributions from Underlying Affiliated Funds | $ 2,642,305 | $ 4,002,058 | $ 4,465,838 |
Dividends | 253,419 | 616,881 | 727,199 |
Income distributions — Affiliated cash management vehicles | 2,083 | 5,796 | 6,149 |
Total income | 2,897,807 | 4,624,735 | 5,199,186 |
Expenses: Administration fees | 96,426 | 178,196 | 216,779 |
Distribution and service fees | 184,415 | 441,727 | 529,409 |
Services to shareholders | 186,493 | 399,328 | 559,008 |
Custodian fees | 9,698 | 9,610 | 9,672 |
Audit and tax fees | 44,216 | 42,899 | 43,612 |
Legal fees | 13,264 | 9,134 | 16,168 |
Trustees' fees and expenses | 5,447 | 7,624 | 7,299 |
Reports to shareholders | 21,041 | 18,780 | 26,710 |
Registration fees | 46,131 | 47,545 | 45,938 |
Other | 5,739 | 8,711 | 8,125 |
Total expenses before expense reductions | 612,870 | 1,163,554 | 1,462,720 |
Expense reductions | (77,692) | (133,378) | (203,138) |
Total expenses after expense reductions | 535,178 | 1,030,176 | 1,259,582 |
Net investment income | 2,362,629 | 3,594,559 | 3,939,604 |
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) from: Sale of Underlying Affiliated Funds | (2,749,305) | (12,062,911) | (12,807,894) |
Sale of Underlying Non-Affiliated Funds | (605,559) | (1,291,038) | (1,006,739) |
Capital gain distributions from Underlying Affiliated Funds | 98,875 | 109,388 | 102,080 |
| (3,255,989) | (13,244,561) | (13,712,553) |
Change in net unrealized appreciation (depreciation) on investments | 7,236,634 | 19,969,231 | 20,619,702 |
Net gain (loss) | 3,980,645 | 6,724,670 | 6,907,149 |
Net increase (decrease) in net assets resulting from operations | $ 6,343,274 | $ 10,319,229 | $ 10,846,753 |
The accompanying notes are an integral part of the financial statements.
Statements of Operations for the year ended August 31, 2010 (continued) | ||
Investment Income | DWS LifeCompass 2030 Fund | DWS LifeCompass 2040 Fund |
Income distributions from Underlying Affiliated Funds | $ 769,937 | $ 232,333 |
Dividends | 291,461 | 123,728 |
Income distributions — Affiliated cash management vehicles | 1,952 | 850 |
Total income | 1,063,350 | 356,911 |
Expenses: Administration fees | 56,482 | 21,523 |
Distribution and service fees | 169,931 | 35,781 |
Services to shareholders | 153,462 | 61,258 |
Custodian fees | 6,980 | 7,095 |
Audit and tax fees | 43,609 | 44,756 |
Legal fees | 12,701 | 18,532 |
Trustees' fees and expenses | 4,992 | 3,558 |
Reports to shareholders | 17,123 | 14,130 |
Registration fees | 39,829 | 40,844 |
Other | 3,586 | 2,410 |
Total expenses before expense reductions | 508,695 | 249,887 |
Expense reductions | (163,677) | (148,812) |
Total expenses after expense reductions | 345,018 | 101,075 |
Net investment income | 718,332 | 255,836 |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) from: Sale of Underlying Affiliated Funds | (1,966,706) | 544,406 |
Sale of Underlying Non-Affiliated Funds | (566,676) | 174,258 |
Capital gain distributions from Underlying Affiliated Funds | 40,076 | 14,298 |
| (2,493,306) | 732,962 |
Change in net unrealized appreciation (depreciation) on investments | 3,248,171 | (737,656) |
Net gain (loss) | 754,865 | (4,694) |
Net increase (decrease) in net assets resulting from operations | $ 1,473,197 | $ 251,142 |
The accompanying notes are an integral part of the financial statements.
Statements of Changes in Net Assets
DWS LifeCompass Retirement Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2010 | 2009 | |
Operations: Net investment income | $ 2,362,629 | $ 3,521,236 |
Net realized gain (loss) | (3,255,989) | (16,481,368) |
Change in net unrealized appreciation (depreciation) | 7,236,634 | 506,156 |
Net increase (decrease) in net assets resulting from operations | 6,343,274 | (12,453,976) |
Distributions to shareholders from: Net investment income: Class A | (852,158) | (1,149,288) |
Class B | (57,533) | (135,853) |
Class C | (146,757) | (325,124) |
Class S | (1,563,614) | (2,463,810) |
Total distributions | (2,620,062) | (4,074,075) |
Fund share transactions: Proceeds from shares sold | 16,267,422 | 20,503,691 |
Reinvestment of distributions | 2,426,284 | 3,736,641 |
Cost of shares redeemed | (23,863,835) | (36,462,557) |
Net increase (decrease) in net assets from Fund share transactions | (5,170,129) | (12,222,225) |
Increase (decrease) in net assets | (1,446,917) | (28,750,276) |
Net assets at beginning of period | 94,755,967 | 123,506,243 |
Net assets at end of period (including undistributed net investment income of $294,994 and $469,764, respectively) | $ 93,309,050 | $ 94,755,967 |
The accompanying notes are an integral part of the financial statements.
Statements of Changes in Net Assets (continued) | ||
DWS LifeCompass 2015 Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2010 | 2009 | |
Operations: Net investment income | $ 3,594,559 | $ 5,163,898 |
Net realized gain (loss) | (13,244,561) | (33,083,867) |
Change in net unrealized appreciation (depreciation) | 19,969,231 | (6,446,454) |
Net increase (decrease) in net assets resulting from operations | 10,319,229 | (34,366,423) |
Distributions to shareholders from: Net investment income: Class A | (1,707,355) | (2,553,379) |
Class B | (132,705) | (316,665) |
Class C | (254,655) | (529,104) |
Class S | (1,850,771) | (2,702,785) |
Total distributions | (3,945,486) | (6,101,933) |
Fund share transactions: Proceeds from shares sold | 28,017,041 | 32,361,282 |
Reinvestment of distributions | 3,806,958 | 5,835,747 |
Cost of shares redeemed | (50,028,583) | (63,716,804) |
Net increase (decrease) in net assets from Fund share transactions | (18,204,584) | (25,519,775) |
Increase (decrease) in net assets | (11,830,841) | (65,988,131) |
Net assets at beginning of period | 176,552,553 | 242,540,684 |
Net assets at end of period (including undistributed net investment income of $221,762 and $469,466, respectively) | $ 164,721,712 | $ 176,552,553 |
The accompanying notes are an integral part of the financial statements.
Statements of Changes in Net Assets (continued) | ||
DWS LifeCompass 2020 Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2010 | 2009 | |
Operations: Net investment income | $ 3,939,604 | $ 4,976,607 |
Net realized gain (loss) | (13,712,553) | (31,719,962) |
Change in net unrealized appreciation (depreciation) | 20,619,702 | (13,302,410) |
Net increase (decrease) in net assets resulting from operations | 10,846,753 | (40,045,765) |
Distributions to shareholders from: Net investment income: Class A | (1,627,598) | (2,242,542) |
Class B | (155,939) | (429,433) |
Class C | (234,266) | (588,485) |
Class S | (2,180,817) | (3,561,414) |
Net realized gains: Class A | — | (486,268) |
Class B | — | (118,124) |
Class C | — | (161,320) |
Class S | — | (723,692) |
Total distributions | (4,198,620) | (8,311,278) |
Fund share transactions: Proceeds from shares sold | 36,400,735 | 40,422,167 |
Reinvestment of distributions | 4,078,829 | 7,976,405 |
Cost of shares redeemed | (51,167,752) | (56,812,789) |
Net increase (decrease) in net assets from Fund share transactions | (10,688,188) | (8,414,217) |
Increase from regulatory settlements (see Note F) | 123,831 | — |
Increase (decrease) in net assets | (3,916,224) | (56,771,260) |
Net assets at beginning of period | 208,109,739 | 264,880,999 |
Net assets at end of period (including undistributed net investment income of $3,220,196 and $3,258,557, respectively) | $ 204,193,515 | $ 208,109,739 |
The accompanying notes are an integral part of the financial statements.
Statements of Changes in Net Assets (continued) | ||
DWS LifeCompass 2030 Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2010 | 2009 | |
Operations: Net investment income | $ 718,332 | $ 540,592 |
Net realized gain (loss) | (2,493,306) | (5,997,566) |
Change in net unrealized appreciation (depreciation) | 3,248,171 | 214,123 |
Net increase (decrease) in net assets resulting from operations | 1,473,197 | (5,242,851) |
Distributions to shareholders from: Net investment income: Class A | (558,830) | (252,084) |
Class B | (14,046) | (15,008) |
Class C | (39,083) | (40,019) |
Class S | (147,512) | (88,332) |
Net realized gains: Class A | — | (1,062,809) |
Class B | — | (121,711) |
Class C | — | (328,534) |
Class S | — | (318,801) |
Total distributions | (759,471) | (2,227,298) |
Fund share transactions: Proceeds from shares sold | 25,073,624 | 21,608,678 |
Reinvestment of distributions | 753,339 | 2,152,590 |
Cost of shares redeemed | (13,878,085) | (10,482,792) |
Net increase (decrease) in net assets from Fund share transactions | 11,948,878 | 13,278,476 |
Increase (decrease) in net assets | 12,662,604 | 5,808,327 |
Net assets at beginning of period | 45,418,888 | 39,610,561 |
Net assets at end of period (including undistributed net investment income of $350,193 and $358,349, respectively) | $ 58,081,492 | $ 45,418,888 |
The accompanying notes are an integral part of the financial statements.
Statements of Changes in Net Assets (continued) | ||
DWS LifeCompass 2040 Fund | ||
Increase (Decrease) in Net Assets | Years Ended August 31, | |
2010 | 2009 | |
Operations: Net investment income | $ 255,836 | $ 81,913 |
Net realized gain (loss) | 732,962 | (825,505) |
Change in net unrealized appreciation (depreciation) | (737,656) | 1,319,064 |
Net increase (decrease) in net assets resulting from operations | 251,142 | 575,472 |
Distributions to shareholders from: Net investment income: Class A | (163,816) | (18,238) |
Class C | (611) | (244) |
Class S | (77,597) | (22,032) |
Net realized gains: Class A | — | (30,115) |
Class C | — | (2,162) |
Class S | — | (28,578) |
Total distributions | (242,024) | (101,369) |
Fund share transactions: Proceeds from shares sold | 17,118,940 | 10,525,505 |
Reinvestment of distributions | 241,975 | 101,354 |
Cost of shares redeemed | (5,759,622) | (2,205,483) |
Net increase (decrease) in net assets from Fund share transactions | 11,601,293 | 8,421,376 |
Increase (decrease) in net assets | 11,610,411 | 8,895,479 |
Net assets at beginning of period | 13,094,273 | 4,198,794 |
Net assets at end of period (undistributed net investment income of $85,650 and $58,628, respectively) | $ 24,704,684 | $ 13,094,273 |
The accompanying notes are an integral part of the financial statements.
DWS LifeCompass Retirement Fund — Class A | |||||
Years Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 10.08 | $ 11.49 | $ 12.51 | $ 12.16 | $ 11.83 |
Income (loss) from investment operations: Net investment incomea | .25 | .36 | .40 | .38 | .33 |
Net realized and unrealized gain (loss) | .42 | (1.36) | (.98) | .57 | .33 |
Total from investment operations | .67 | (1.00) | (.58) | .95 | .66 |
Less distributions from: Net investment income | (.28) | (.41) | (.44) | (.60) | (.33) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 10.47 | $ 10.08 | $ 11.49 | $ 12.51 | $ 12.16 |
Total Return (%)b,c,d | 6.67 | (8.29) | (4.76) | 7.90 | 5.66 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 31 | 31 | 34 | 47 | 41 |
Ratio of expenses before expense reductions (%)e | .74 | .77 | .69 | .63 | .88 |
Ratio of expenses after expense reductions (%)e | .61 | .52 | .56 | .62 | .61 |
Ratio of net investment income (%) | 2.39 | 3.84 | 3.24 | 3.04 | 2.74 |
Portfolio turnover rate (%) | 53 | 41 | 48 | 21 | 69 |
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 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, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 10.08 | $ 11.49 | $ 12.52 | $ 12.16 | $ 11.83 |
Income (loss) from investment operations: Net investment incomea | .17 | .29 | .30 | .29 | .24 |
Net realized and unrealized gain (loss) | .42 | (1.36) | (.97) | .57 | .33 |
Total from investment operations | .59 | (1.07) | (.67) | .86 | .57 |
Less distributions from: Net investment income | (.20) | (.34) | (.36) | (.50) | (.24) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 10.47 | $ 10.08 | $ 11.49 | $ 12.52 | $ 12.16 |
Total Return (%)b,c,d | 5.87 | (8.99) | (5.46) | 7.16 | 4.87 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 2 | 3 | 6 | 8 | 8 |
Ratio of expenses before expense reductions (%)e | 1.43 | 1.56 | 1.42 | 1.34 | 1.65 |
Ratio of expenses after expense reductions (%)e | 1.36 | 1.27 | 1.31 | 1.34 | 1.36 |
Ratio of net investment income (%) | 1.64 | 3.09 | 2.49 | 2.32 | 1.99 |
Portfolio turnover rate (%) | 53 | 41 | 48 | 21 | 69 |
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 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, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 10.07 | $ 11.49 | $ 12.52 | $ 12.16 | $ 11.82 |
Income (loss) from investment operations: Net investment incomea | .17 | .29 | .31 | .30 | .24 |
Net realized and unrealized gain (loss) | .42 | (1.37) | (.98) | .56 | .34 |
Total from investment operations | .59 | (1.08) | (.67) | .86 | .58 |
Less distributions from: Net investment income | (.20) | (.34) | (.36) | (.50) | (.24) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 10.46 | $ 10.07 | $ 11.49 | $ 12.52 | $ 12.16 |
Total Return (%)b,c,d | 5.88 | (9.06) | (5.43) | 7.26 | 4.87 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 7 | 8 | 13 | 14 | 12 |
Ratio of expenses before expense reductions (%)e | 1.40 | 1.45 | 1.38 | 1.34 | 1.45 |
Ratio of expenses after expense reductions (%)e | 1.36 | 1.27 | 1.29 | 1.29 | 1.36 |
Ratio of net investment income (%) | 1.64 | 3.09 | 2.51 | 2.37 | 1.99 |
Portfolio turnover rate (%) | 53 | 41 | 48 | 21 | 69 |
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 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, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 10.08 | $ 11.49 | $ 12.51 | $ 12.16 | $ 11.83 |
Income (loss) from investment operations: Net investment incomea | .28 | .38 | .43 | .41 | .36 |
Net realized and unrealized gain (loss) | .41 | (1.35) | (.98) | .57 | .33 |
Total from investment operations | .69 | (.97) | (.55) | .98 | .69 |
Less distributions from: Net investment income | (.31) | (.44) | (.47) | (.63) | (.36) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 10.46 | $ 10.08 | $ 11.49 | $ 12.51 | $ 12.16 |
Total Return (%)b,c | 6.84 | (8.04) | (4.52) | 8.18 | 5.93 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 53 | 53 | 71 | 81 | 80 |
Ratio of expenses before expense reductions (%)d | .42 | .50 | .44 | .48 | .65 |
Ratio of expenses after expense reductions (%)d | .36 | .27 | .30 | .37 | .35 |
Ratio of net investment income (%) | 2.64 | 4.09 | 3.50 | 3.29 | 3.00 |
Portfolio turnover rate (%) | 53 | 41 | 48 | 21 | 69 |
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 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, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 9.39 | $ 11.12 | $ 12.47 | $ 11.98 | $ 11.55 |
Income (loss) from investment operations: Net investment incomea | .20 | .26 | .29 | .29 | .25 |
Net realized and unrealized gain (loss) | .33 | (1.68) | (1.20) | .86 | .50 |
Total from investment operations | .53 | (1.42) | (.91) | 1.15 | .75 |
Less distributions from: Net investment income | (.22) | (.31) | (.44) | (.66) | (.32) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 9.70 | $ 9.39 | $ 11.12 | $ 12.47 | $ 11.98 |
Total Return (%)b,c,d | 5.61 | (12.46) | (7.39) | 9.78 | 6.59 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 70 | 77 | 97 | 131 | 104 |
Ratio of expenses before expense reductions (%)e | .65 | .69 | .64 | .61 | .80 |
Ratio of expenses after expense reductions (%)e | .57 | .48 | .51 | .57 | .61 |
Ratio of net investment income (%) | 2.02 | 3.05 | 2.37 | 2.28 | 2.14 |
Portfolio turnover rate (%) | 51 | 32 | 29 | 21 | 52 |
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 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, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 9.38 | $ 11.11 | $ 12.47 | $ 11.98 | $ 11.54 |
Income (loss) from investment operations: Net investment incomea | .13 | .20 | .19 | .19 | .16 |
Net realized and unrealized gain (loss) | .32 | (1.69) | (1.19) | .86 | .51 |
Total from investment operations | .45 | (1.49) | (1.00) | 1.05 | .67 |
Less distributions from: Net investment income | (.14) | (.24) | (.36) | (.56) | (.23) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 9.69 | $ 9.38 | $ 11.11 | $ 12.47 | $ 11.98 |
Total Return (%)b,c,d | 4.82 | (13.14) | (8.06) | 8.94 | 5.78 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 7 | 10 | 17 | 24 | 24 |
Ratio of expenses before expense reductions (%)e | 1.37 | 1.48 | 1.39 | 1.37 | 1.42 |
Ratio of expenses after expense reductions (%)e | 1.32 | 1.23 | 1.26 | 1.34 | 1.37 |
Ratio of net investment income (%) | 1.27 | 2.30 | 1.62 | 1.51 | 1.38 |
Portfolio turnover rate (%) | 51 | 32 | 29 | 21 | 52 |
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 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, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 9.38 | $ 11.10 | $ 12.47 | $ 11.97 | $ 11.54 |
Income (loss) from investment operations: Net investment incomea | .13 | .20 | .20 | .20 | .16 |
Net realized and unrealized gain (loss) | .32 | (1.68) | (1.20) | .86 | .50 |
Total from investment operations | .45 | (1.48) | (1.00) | 1.06 | .66 |
Less distributions from: Net investment income | (.14) | (.24) | (.37) | (.56) | (.23) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 9.69 | $ 9.38 | $ 11.10 | $ 12.47 | $ 11.97 |
Total Return (%)b,c,d | 4.83 | (13.05) | (8.12) | 8.96 | 5.82 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 15 | 18 | 28 | 37 | 34 |
Ratio of expenses before expense reductions (%)e | 1.34 | 1.41 | 1.33 | 1.31 | 1.35 |
Ratio of expenses after expense reductions (%)e | 1.32 | 1.23 | 1.25 | 1.30 | 1.34 |
Ratio of net investment income (%) | 1.28 | 2.30 | 1.63 | 1.55 | 1.41 |
Portfolio turnover rate (%) | 51 | 32 | 29 | 21 | 52 |
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 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, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 9.38 | $ 11.11 | $ 12.45 | $ 11.96 | $ 11.54 |
Income (loss) from investment operations: Net investment incomea | .22 | .28 | .32 | .32 | .28 |
Net realized and unrealized gain (loss) | .33 | (1.68) | (1.19) | .86 | .49 |
Total from investment operations | .55 | (1.40) | (.87) | 1.18 | .77 |
Less distributions from: Net investment income | (.24) | (.33) | (.47) | (.69) | (.35) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 9.69 | $ 9.38 | $ 11.11 | $ 12.45 | $ 11.96 |
Total Return (%)b,c | 5.89 | (12.25) | (7.10) | 9.97 | 6.78 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 73 | 71 | 100 | 135 | 142 |
Ratio of expenses before expense reductions (%)d | .41 | .46 | .41 | .40 | .54 |
Ratio of expenses after expense reductions (%)d | .32 | .23 | .26 | .35 | .36 |
Ratio of net investment income (%) | 2.27 | 3.30 | 2.62 | 2.50 | 2.39 |
Portfolio turnover rate (%) | 51 | 32 | 29 | 21 | 52 |
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 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, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 11.21 | $ 13.66 | $ 15.47 | $ 14.29 | $ 13.49 |
Income (loss) from investment operations: Net investment incomea | .21 | .27 | .29 | .26 | .23 |
Net realized and unrealized gain (loss) | .36 | (2.27) | (1.55) | 1.35 | .84 |
Total from investment operations | .57 | (2.00) | (1.26) | 1.61 | 1.07 |
Less distributions from: Net investment income | (.23) | (.37) | (.55) | (.43) | (.27) |
Net realized gains | — | (.08) | — | — | — |
Total distributions | (.23) | (.45) | (.55) | (.43) | (.27) |
Increase from regulatory settlements | .01f | — | — | — | — |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 11.56 | $ 11.21 | $13.66 | $ 15.47 | $ 14.29 |
Total Return (%)b,c,d | 5.10f | (14.08) | (8.48) | 11.33 | 8.06 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 80 | 77 | 85 | 100 | 86 |
Ratio of expenses before expense reductions (%)e | .67 | .71 | .66 | .67 | .76 |
Ratio of expenses after expense reductions (%)e | .58 | .49 | .52 | .62 | .61 |
Ratio of net investment income (%) | 1.82 | 2.63 | 1.96 | 1.70 | 1.59 |
Portfolio turnover rate (%) | 50 | 32 | 31 | 22 | 59 |
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 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. f Includes a non-recurring payment from the Advisor which amounted to $.0004 per share recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements (see Note F). The Fund also received $.0063 per share of non-affiliated regulatory settlements. Excluding these non-recurring payments, total return would have been 0.06% lower. * Amount is less than $.005. |
DWS LifeCompass 2020 Fund — Class B | |||||
Years Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 11.11 | $ 13.53 | $ 15.32 | $ 14.15 | $ 13.35 |
Income (loss) from investment operations: Net investment incomea | .13 | .19 | .18 | .15 | .12 |
Net realized and unrealized gain (loss) | .34 | (2.24) | (1.54) | 1.33 | .85 |
Total from investment operations | .47 | (2.05) | (1.36) | 1.48 | .97 |
Less distributions from: Net investment income | (.14) | (.29) | (.43) | (.31) | (.17) |
Net realized gains | — | (.08) | — | — | — |
Total distributions | (.14) | (.37) | (.43) | (.31) | (.17) |
Increase from regulatory settlements | .01f | — | — | — | — |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 11.45 | $ 11.11 | $ 13.53 | $ 15.32 | $ 14.15 |
Total Return (%)b,c,d | 4.24f | (14.69) | (9.15) | 10.49 | 7.31 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 10 | 14 | 22 | 28 | 29 |
Ratio of expenses before expense reductions (%)e | 1.39 | 1.47 | 1.42 | 1.40 | 1.46 |
Ratio of expenses after expense reductions (%)e | 1.33 | 1.24 | 1.28 | 1.35 | 1.36 |
Ratio of net investment income (%) | 1.07 | 1.88 | 1.20 | .97 | .84 |
Portfolio turnover rate (%) | 50 | 32 | 31 | 22 | 59 |
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 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. f Includes a non-recurring payment from the Advisor which amounted to $.0004 per share recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements (see Note F). The Fund also received $.0063 per share of non-affiliated regulatory settlements. Excluding these non-recurring payments, total return would have been 0.06% lower. * Amount is less than $.005. |
DWS LifeCompass 2020 Fund — Class C | |||||
Years Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 11.11 | $ 13.54 | $ 15.32 | $ 14.15 | $ 13.35 |
Income (loss) from investment operations: Net investment incomea | .13 | .19 | .18 | .15 | .12 |
Net realized and unrealized gain (loss) | .34 | (2.25) | (1.52) | 1.33 | .85 |
Total from investment operations | .47 | (2.06) | (1.34) | 1.48 | .97 |
Less distributions from: Net investment income | (.14) | (.29) | (.44) | (.31) | (.17) |
Net realized gains | — | (.08) | — | — | — |
Total distributions | (.14) | (.37) | (.44) | (.31) | (.17) |
Increase from regulatory settlements | .01f | — | — | — | — |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 11.45 | $ 11.11 | $ 13.54 | $ 15.32 | $ 14.15 |
Total Return (%)b,c,d | 4.24f | (14.74) | (9.05) | 10.49 | 7.30 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 18 | 21 | 30 | 40 | 36 |
Ratio of expenses before expense reductions (%)e | 1.37 | 1.44 | 1.38 | 1.37 | 1.41 |
Ratio of expenses after expense reductions (%)e | 1.33 | 1.24 | 1.27 | 1.32 | 1.36 |
Ratio of net investment income (%) | 1.07 | 1.88 | 1.21 | 1.00 | .84 |
Portfolio turnover rate (%) | 50 | 32 | 31 | 22 | 59 |
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 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. f Includes a non-recurring payment from the Advisor which amounted to $.0004 per share recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements (see Note F). The Fund also received $.0063 per share of non-affiliated regulatory settlements. Excluding these non-recurring payments, total return would have been 0.06% lower. * Amount is less than $.005. |
DWS LifeCompass 2020 Fund — Class S | |||||
Years Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 11.23 | $ 13.69 | $ 15.50 | $ 14.32 | $ 13.52 |
Income (loss) from investment operations: Net investment incomea | .24 | .29 | .32 | .29 | .26 |
Net realized and unrealized gain (loss) | .36 | (2.28) | (1.54) | 1.36 | .85 |
Total from investment operations | .60 | (1.99) | (1.22) | 1.65 | 1.11 |
Less distributions from: Net investment income | (.26) | (.39) | (.59) | (.47) | (.31) |
Net realized gains | — | (.08) | — | — | — |
Total distributions | (.26) | (.47) | (.59) | (.47) | (.31) |
Increase from regulatory settlements | .01e | — | — | — | — |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 11.58 | $ 11.23 | $ 13.69 | $ 15.50 | $ 14.32 |
Total Return (%)b,c | 5.36e | (13.90) | (8.22) | 11.60 | 8.33 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 96 | 96 | 129 | 153 | 154 |
Ratio of expenses before expense reductions (%)d | .45 | .51 | .45 | .48 | .53 |
Ratio of expenses after expense reductions (%)d | .33 | .24 | .28 | .37 | .36 |
Ratio of net investment income (%) | 2.07 | 2.88 | 2.20 | 1.95 | 1.84 |
Portfolio turnover rate (%) | 50 | 32 | 31 | 22 | 59 |
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 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. e Includes a non-recurring payment from the Advisor which amounted to $.0004 per share recorded as a result of the Advisor's settlement with the SEC and NY Attorney General in connection with certain trading arrangements (see Note F). The Fund also received $.0063 per share of non-affiliated regulatory settlements. Excluding these non-recurring payments, total return would have been 0.06% lower. * Amount is less than $.005. |
DWS LifeCompass 2030 Fund — Class A | |||||
Years Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 7.87 | $ 10.26 | $ 12.27 | $ 11.50 | $ 10.82 |
Income (loss) from investment operations: Net investment incomea | .11 | .13 | .14 | .10 | .08 |
Net realized and unrealized gain (loss) | .18 | (1.94) | (1.32) | 1.39 | .93 |
Total from investment operations | .29 | (1.81) | (1.18) | 1.49 | 1.01 |
Less distributions from: Net investment income | (.12) | (.11) | (.38) | (.29) | (.23) |
Net realized gains | — | (.47) | (.45) | (.43) | (.10) |
Total distributions | (.12) | (.58) | (.83) | (.72) | (.33) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 8.04 | $ 7.87 | $ 10.26 | $ 12.27 | $ 11.50 |
Total Return (%)b,c,d | 3.63 | (16.57) | (10.40) | 13.17 | 9.52 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 40 | 31 | 23 | 21 | 14 |
Ratio of expenses before expense reductions (%)e | .85 | 1.17 | .99 | 1.00 | 1.60 |
Ratio of expenses after expense reductions (%)e | .55 | .45 | .47 | .55 | .58 |
Ratio of net investment income (%) | 1.33 | 1.83 | 1.27 | .88 | .77 |
Portfolio turnover rate (%) | 44 | 40 | 30 | 20 | 63 |
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 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 B | |||||
Years Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 7.84 | $ 10.21 | $ 12.21 | $ 11.45 | $ 10.78 |
Income (loss) from investment operations: Net investment incomea | .05 | .08 | .06 | .01 | .00* |
Net realized and unrealized gain (loss) | .19 | (1.92) | (1.33) | 1.37 | .92 |
Total from investment operations | .24 | (1.84) | (1.27) | 1.38 | .92 |
Less distributions from: Net investment income | (.06) | (.06) | (.28) | (.19) | (.15) |
Net realized gains | — | (.47) | (.45) | (.43) | (.10) |
Total distributions | (.06) | (.53) | (.73) | (.62) | (.25) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 8.02 | $ 7.84 | $ 10.21 | $ 12.21 | $ 11.45 |
Total Return (%)b,c,d | 2.98 | (17.11) | (11.09) | 12.26 | 8.61 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 2 | 2 | 3 | 4 | 3 |
Ratio of expenses before expense reductions (%)e | 1.63 | 2.07 | 1.80 | 1.81 | 2.38 |
Ratio of expenses after expense reductions (%)e | 1.30 | 1.20 | 1.22 | 1.30 | 1.33 |
Ratio of net investment income (%) | .59 | 1.08 | .51 | .13 | .02 |
Portfolio turnover rate (%) | 44 | 40 | 30 | 20 | 63 |
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 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 C | |||||
Years Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 7.83 | $ 10.21 | $ 12.21 | $ 11.44 | $ 10.77 |
Income (loss) from investment operations: Net investment incomea | .05 | .08 | .06 | .01 | .00* |
Net realized and unrealized gain (loss) | .19 | (1.93) | (1.33) | 1.38 | .92 |
Total from investment operations | .24 | (1.85) | (1.27) | 1.39 | .92 |
Less distributions from: Net investment income | (.06) | (.06) | (.28) | (.19) | (.15) |
Net realized gains | — | (.47) | (.45) | (.43) | (.10) |
Total distributions | (.06) | (.53) | (.73) | (.62) | (.25) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 8.01 | $ 7.83 | $ 10.21 | $ 12.21 | $ 11.44 |
Total Return (%)b,c,d | 2.99 | (17.22) | (11.09) | 12.35 | 8.62 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 5 | 6 | 8 | 11 | 7 |
Ratio of expenses before expense reductions (%)e | 1.54 | 1.96 | 1.74 | 1.74 | 2.33 |
Ratio of expenses after expense reductions (%)e | 1.30 | 1.20 | 1.23 | 1.30 | 1.33 |
Ratio of net investment income (%) | .59 | 1.08 | .51 | .13 | .02 |
Portfolio turnover rate (%) | 44 | 40 | 30 | 20 | 63 |
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 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 S | |||||
Years Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 7.87 | $ 10.27 | $ 12.29 | $ 11.51 | $ 10.84 |
Income (loss) from investment operations: Net investment incomea | .13 | .15 | .17 | .13 | .11 |
Net realized and unrealized gain (loss) | .19 | (1.95) | (1.33) | 1.40 | .92 |
Total from investment operations | .32 | (1.80) | (1.16) | 1.53 | 1.03 |
Less distributions from: Net investment income | (.14) | (.13) | (.41) | (.32) | (.26) |
Net realized gains | — | (.47) | (.45) | (.43) | (.10) |
Total distributions | (.14) | (.60) | (.86) | (.75) | (.36) |
Redemption fees | — | — | .00* | .00* | .00* |
Net asset value, end of period | $ 8.05 | $ 7.87 | $ 10.27 | $ 12.29 | $ 11.51 |
Total Return (%)b,c | 4.02 | (16.43) | (10.23) | 13.54 | 9.69 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 11 | 7 | 6 | 4 | 3 |
Ratio of expenses before expense reductions (%)d | .59 | .97 | .77 | .78 | 1.37 |
Ratio of expenses after expense reductions (%)d | .30 | .20 | .21 | .30 | .33 |
Ratio of net investment income (%) | 1.58 | 2.08 | 1.52 | 1.13 | 1.02 |
Portfolio turnover rate (%) | 44 | 40 | 30 | 20 | 63 |
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 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 2040 Fund — Class A | |||
Years Ended August 31, | 2010 | 2009 | 2008a |
Selected Per Share Data | |||
Net asset value, beginning of period | $ 6.97 | $ 8.77 | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .08 | .08 | .06 |
Net realized and unrealized gain (loss) | .17c | (1.74) | (.96) |
Total from investment operations | .25 | (1.66) | (.90) |
Less distributions from: Net investment income | (.08) | (.05) | (.33) |
Net realized gains | — | (.09) | — |
Total distributions | (.08) | (.14) | (.33) |
Net asset value, end of period | $ 7.14 | $ 6.97 | $ 8.77 |
Total Return (%)d,e,f | 3.58 | (18.67) | (9.24)** |
Ratios to Average Net Assets and Supplemental Data | |||
Net assets, end of period ($ millions) | 17 | 9 | 2 |
Ratio of expenses before expense reductions (%)g | 1.22 | 2.90 | 7.14* |
Ratio of expenses after expense reductions (%)g | .54 | .49 | .49* |
Ratio of net investment income (%) | 1.12 | 1.32 | .86* |
Portfolio turnover rate (%) | 39 | 30 | 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 Because of the timing of subscriptions and redemptions in relation to fluctuating markets at value, the amount shown may not agree with the change in aggregate gains and losses. d Total return does not reflect the effect of any sales charge. e Total return would have been lower had certain expenses not been reduced. f Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. g 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 | |||
Years Ended August 31, | 2010 | 2009 | 2008a |
Selected Per Share Data | |||
Net asset value, beginning of period | $ 6.94 | $ 8.73 | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .03 | .04 | .01 |
Net realized and unrealized gain (loss) | .17c | (1.73) | (.96) |
Total from investment operations | .20 | (1.69) | (.95) |
Less distributions from: Net investment income | (.03) | (.01) | (.32) |
Net realized gains | — | (.09) | — |
Total distributions | (.03) | (.10) | (.32) |
Net asset value, end of period | $ 7.11 | $ 6.94 | $ 8.73 |
Total Return (%)d,e,f | 2.81 | (19.43) | (9.54)** |
Ratios to Average Net Assets and Supplemental Data | |||
Net assets, end of period ($ millions) | .2 | .2 | .3 |
Ratio of expenses before expense reductions (%)g | 2.20 | 3.86 | 7.87* |
Ratio of expenses after expense reductions (%)g | 1.28 | 1.24 | 1.24* |
Ratio of net investment income (%) | .37 | .57 | .11* |
Portfolio turnover rate (%) | 39 | 30 | 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 Because of the timing of subscriptions and redemptions in relation to fluctuating markets at value, the amount shown may not agree with the change in aggregate gains and losses. d Total return does not reflect the effect of any sales charge. e Total return would have been lower had certain expenses not been reduced. f Total return would have been lower if the Advisor had not reduced some Underlying Funds' expenses. g 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 | |||
Years Ended August 31, | 2010 | 2009 | 2008a |
Selected Per Share Data | |||
Net asset value, beginning of period | $ 6.99 | $ 8.79 | $ 10.00 |
Income (loss) from investment operations: Net investment incomeb | .10 | .10 | .08 |
Net realized and unrealized gain (loss) | .17c | (1.74) | (.96) |
Total from investment operations | .27 | (1.64) | (.88) |
Less distributions from: Net investment income | (.10) | (.07) | (.33) |
Net realized gains | — | (.09) | — |
Total distributions | (.10) | (.16) | (.33) |
Net asset value, end of period | $ 7.16 | $ 6.99 | $ 8.79 |
Total Return (%)d,e | 3.83 | (18.32) | (9.11)** |
Ratios to Average Net Assets and Supplemental Data | |||
Net assets, end of period ($ millions) | 8 | 4 | 2 |
Ratio of expenses before expense reductions (%)f | .99 | 2.70 | 6.98* |
Ratio of expenses after expense reductions (%)f | .29 | .24 | .24* |
Ratio of net investment income (%) | 1.37 | 1.57 | 1.11* |
Portfolio turnover rate (%) | 39 | 30 | 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 Because of the timing of subscriptions and redemptions in relation to fluctuating markets at value, the amount shown may not agree with the change in aggregate gains and losses. 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 |
A. Organization and Significant Accounting Policies
DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 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 (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 affiliated DWS funds (the "Underlying DWS Funds") and exchange-traded funds ("ETFs"). ETFs and Underlying DWS Funds are collectively referred to as "Underlying 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 of the Fund are closed to new purchases, except exchanges or the reinvestment of dividends or other distributions. Class B shares were offered to investors without an initial sales charge and 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 automatically 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 are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.
Various inputs are used in determining the value of each Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Investments in the Underlying DWS Funds are valued at the net asset value per share of each class of the Underlying DWS Fund and are categorized as Level 1.
ETFs are valued at the most recent sale price or official closing price reported on the exchange (US or foreign) or over-the-counter market on which they trade and are categorized as Level 1 securities. 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.
Disclosure about the classification of fair value measurements is included in a table following each Fund's Investment Portfolio.
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, 2010, DWS LifeCompass Retirement Fund had a net tax basis capital loss carryforward of approximately $15,529,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until August 31, 2012 ($38,000), August 31, 2017 ($1,780,000) and August 31, 2018 ($13,711,000), the respective expiration dates, whichever occurs first.
At August 31, 2010, DWS LifeCompass 2015 Fund had a net tax basis capital loss carryforward of approximately $38,912,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until August 31, 2012 ($7,136,000), August 31, 2017 ($2,422,000) and August 31, 2018 ($29,354,000), the respective expiration dates, whichever occurs first.
At August 31, 2010, DWS LifeCompass 2020 Fund had a net tax basis capital loss carryforward of approximately $29,897,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until August 31, 2017 ($1,856,000) and August 31, 2018 ($28,041,000), the respective expiration dates, whichever occurs first.
At August 31, 2010, DWS LifeCompass 2030 Fund had a net tax basis capital loss carryforward of approximately $4,988,000, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until August 31, 2017 ($209,000) and August 31, 2018 ($4,779,000), the respective expiration dates, whichever occurs first.
During the year ended August 31, 2010, DWS LifeCompass 2040 Fund utilized $33,000 of prior year capital loss carryforward.
In addition, from November 1, 2009 through August 31, 2010, DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund incurred approximately $3,599,000, $12,112,000, $11,307,000 and $2,076,000, respectively, of net realized capital losses. As permitted by tax regulations, the Funds intend to elect to defer these losses and treat them as arising in the fiscal year ending August 31, 2011.
The Funds have reviewed the tax positions for the open tax years as of August 31, 2010 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 open 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.
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, 2010, DWS LifeCompass Retirement Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 294,994 |
Capital loss carryforwards | $ (15,529,000) |
Net unrealized appreciation (depreciation) on investments | $ (2,133,645) |
In addition, during the years ended August 31, 2010 and August 31, 2009, the tax character of distributions paid to shareholders by DWS LifeCompass Retirement Fund is summarized as follows:
| Years Ended August 31, | |
| 2010 | 2009 |
Distributions from ordinary income* | $ 2,620,062 | $ 4,074,075 |
At August 31, 2010, DWS LifeCompass 2015 Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 221,762 |
Capital loss carryforwards | $ (38,912,000) |
Net unrealized appreciation (depreciation) on investments | $ (11,333,273) |
In addition, during the years ended August 31, 2010 and August 31, 2009, the tax character of distributions paid to shareholders by DWS LifeCompass 2015 Fund is summarized as follows:
| Years Ended August 31, | |
| 2010 | 2009 |
Distributions from ordinary income* | $ 3,945,486 | $ 6,101,933 |
At August 31, 2010, DWS LifeCompass 2020 Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 3,220,196 |
Capital loss carryforwards | $ (29,897,000) |
Net unrealized appreciation (depreciation) on investments | $ (17,589,211) |
In addition, during the years ended August 31, 2010 and August 31, 2009, the tax character of distributions paid to shareholders by DWS LifeCompass 2020 Fund is summarized as follows:
| Years Ended August 31, | |
| 2010 | 2009 |
Distributions from ordinary income* | $ 4,198,620 | $ 6,826,115 |
Distributions from long-term capital gains | $ — | $ 1,485,163 |
At August 31, 2010, DWS LifeCompass 2030 Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 350,193 |
Capital loss carryforwards | $ (4,988,000) |
Net unrealized appreciation (depreciation) on investments | $ (3,772,230) |
In addition, during the years ended August 31, 2010 and August 31, 2009 the tax character of distributions paid to shareholders by DWS LifeCompass 2030 Fund is summarized as follows:
| Years Ended August 31, | |
| 2010 | 2009 |
Distributions from ordinary income* | $ 759,471 | $ 403,028 |
Distributions from long-term capital gains | $ — | $ 1,824,270 |
At August 31, 2010, DWS LifeCompass 2040 Fund's components of distributable earnings (accumulated losses) on a tax-basis are as follows:
Undistributed ordinary income* | $ 93,430 |
Undistributed long-term capital gains | $ 143,383 |
Net unrealized appreciation (depreciation) on investments | $ 7,350 |
In addition, during the years ended August 31, 2010 and August 31, 2009, the tax character of distributions paid to shareholders by DWS LifeCompass 2040 Fund is summarized as follows:
| Years Ended August 31, | |
| 2010 | 2009 |
Distributions from ordinary income* | $ 242,024 | $ 42,044 |
Distributions from long-term capital gains | $ — | $ 59,325 |
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.
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 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 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.
QS Investors, LLC ("QS Investors") acts as investment subadvisor to the Funds. On August 1, 2010, members of the Advisor's Quantitative Strategies Group ("QS Group"), including members of the portfolio management teams of the Funds, separated from the Advisor and formed QS Investors as a separate investment advisory firm unaffiliated with the Advisor (the "Separation"). As an investment subadvisor to the Funds, QS Investors renders strategic asset allocation services to the Funds. QS Investors is paid by the Advisor, not the Funds, for the services QS Investors provides to the Funds.
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 outstanding shares. At August 31, 2010, DWS LifeCompass 2015 Fund held the following Underlying DWS Fund's outstanding shares: approximately 6% of DWS Small Cap Core Fund, 5% of DWS S&P 500 Plus Fund and 5% of DWS Diversified International Equity Fund. At August 31, 2010, DWS LifeCompass 2020 Fund held the following Underlying DWS Fund's outstanding shares: approximately 9% of DWS Diversified International Equity Fund, 8% of DWS Small Cap Core Fund and 6% of DWS S&P 500 Plus Fund. At August 31, 2010, DWS LifeCompass Retirement Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund did not invest in more than 5% of any Underlying DWS Fund.
For the period from September 1, 2009 through September 30, 2009, 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 and DWS LifeCompass 2020 Fund's operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and indirect expenses of Underlying Funds) as a percentage of average daily net assets as follows:
| LifeCompass Retirement Fund | LifeCompass 2015 Fund | LifeCompass 2020 Fund |
Class A | .52% | .48% | .49% |
Class B | 1.27% | 1.23% | 1.24% |
Class C | 1.27% | 1.23% | 1.24% |
Class S | .27% | .23% | .24% |
For the period from September 1, 2009 through November 30, 2009, the Advisor had contractually agreed to reimburse or pay certain operating expenses to the extent necessary to maintain 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 Funds) as a percentage of average daily net assets as follows:
| LifeCompass 2030 Fund | LifeCompass 2040 Fund |
Class A | .45% | .49% |
Class B | 1.20% | — |
Class C | 1.20% | 1.24% |
Class S | .20% | .24% |
For the period from October 1, 2009 through November 30, 2010, 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 and DWS LifeCompass 2020 Fund's operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and indirect expenses of Underlying Funds) as a percentage of average daily net assets as follows:
| LifeCompass Retirement Fund | LifeCompass 2015 Fund | LifeCompass 2020 Fund |
Class A | .62% | .58% | .59% |
Class B | 1.37% | 1.33% | 1.34% |
Class C | 1.37% | 1.33% | 1.34% |
Class S | .37% | .33% | .34% |
For the period from December 1, 2009 through November 30, 2010, the Advisor has contractually agreed to reimburse or pay certain operating expenses to the extent necessary to maintain 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 Funds) as a percentage of average daily net assets as follows:
| LifeCompass 2030 Fund | LifeCompass 2040 Fund |
Class A | .58% | .55% |
Class B | 1.33% | — |
Class C | 1.33% | 1.30% |
Class S | .33% | .30% |
Each Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying DWS Funds and ETFs in which it is invested.
For the year ended August 31, 2010, the Advisor reimbursed DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund $101 and $79, respectively, of sub-recordkeeping expenses for Class S shares.
In addition, for the year ended August 31, 2010, the Advisor reimbursed DWS LifeCompass 2040 Fund $70,804 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, 2010, the Administration Fee for each Fund was as follows:
Administration Fee | Total Aggregated | Waived | Unpaid at August 31, 2010 |
DWS LifeCompass Retirement Fund | $ 96,426 | $ — | $ 7,926 |
DWS LifeCompass 2015 Fund | $ 178,196 | $ — | $ 14,300 |
DWS LifeCompass 2020 Fund | $ 216,779 | $ — | $ 17,801 |
DWS LifeCompass 2030 Fund | $ 56,482 | $ 23,418 | $ 4,151 |
DWS LifeCompass 2040 Fund | $ 21,523 | $ 21,523 | $ — |
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, 2010, the amounts charged to the Funds by DISC were as follows:
Services to Shareholders | Total Aggregated | Waived | Unpaid at August 31, 2010 |
DWS LifeCompass Retirement Fund | |||
Class A | $ 70,306 | $ 40,556 | $ 889 |
Class B | 3,833 | 2,163 | 138 |
Class C | 8,436 | 3,164 | 513 |
Class S | 80,865 | 31,809 | 12,411 |
| $ 163,440 | $ 77,692 | $ 13,951 |
DWS LifeCompass 2015 Fund | |||
Class A | $ 165,210 | $ 58,349 | $ 26,164 |
Class B | 13,449 | 4,222 | 3,126 |
Class C | 23,951 | 2,745 | 6,444 |
Class S | 162,779 | 68,062 | 24,673 |
| $ 365,389 | $ 133,378 | $ 60,407 |
DWS LifeCompass 2020 Fund | |||
Class A | $ 195,015 | $ 73,572 | $ 41,367 |
Class B | 20,077 | 7,435 | 6,228 |
Class C | 30,254 | 7,659 | 9,058 |
Class S | 253,022 | 114,472 | 49,201 |
| $ 498,368 | $ 203,138 | $ 105,854 |
DWS LifeCompass 2030 Fund | |||
Class A | $ 98,859 | $ 98,859 | $ — |
Class B | 5,245 | 5,245 | — |
Class C | 9,869 | 9,869 | — |
Class S | 22,742 | 22,742 | — |
| $ 136,715 | $ 136,715 | $ — |
DWS LifeCompass 2040 Fund | |||
Class A | $ 39,860 | $ 37,823 | $ — |
Class C | 869 | 869 | — |
Class S | 17,702 | 17,702 | — |
| $ 58,431 | $ 56,394 | $ — |
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, 2010, the Distribution Fees were as follows:
Distribution Fees | Total Aggregated | Unpaid at August 31, 2010 |
DWS LifeCompass Retirement Fund | ||
Class B | $ 22,313 | $ 1,495 |
Class C | 57,492 | 4,389 |
| $ 79,805 | $ 5,884 |
DWS LifeCompass 2015 Fund | ||
Class B | $ 68,081 | $ 4,744 |
Class C | 130,789 | 9,890 |
| $ 198,870 | $ 14,634 |
DWS LifeCompass 2020 Fund | ||
Class B | $ 97,249 | $ 6,909 |
Class C | 150,002 | 11,065 |
| $ 247,251 | $ 17,974 |
DWS LifeCompass 2030 Fund | ||
Class B | $ 15,212 | $ 1,139 |
Class C | 42,308 | 3,203 |
| $ 57,520 | $ 4,342 |
DWS LifeCompass 2040 Fund | ||
Class C | $ 1,369 | $ 123 |
In addition, DIDI provides information and administrative services for a fee ("Service Fee") to Class A, B and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. 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, 2010, the Service Fees were as follows:
Service Fees | Total Aggregated | Waived | Unpaid at August 31, 2010 | Annual Effective Rate |
DWS LifeCompass Retirement Fund | ||||
Class A | $ 77,932 | $ — | $ 18,442 | .24% |
Class B | 7,188 | — | 1,501 | .24% |
Class C | 19,490 | — | 3,140 | .25% |
| $ 104,610 | $ — | $ 23,083 |
|
DWS LifeCompass 2015 Fund | ||||
Class A | $ 179,849 | $ — | $ 32,770 | .23% |
Class B | 21,455 | — | 3,255 | .24% |
Class C | 41,553 | — | 7,496 | .24% |
| $ 242,857 | $ — | $ 43,521 |
|
DWS LifeCompass 2020 Fund | ||||
Class A | $ 200,722 | $ — | $ 46,798 | .24% |
Class B | 32,068 | — | 6,927 | .25% |
Class C | 49,368 | — | 9,733 | .25% |
| $ 282,158 | $ — | $ 63,458 |
|
DWS LifeCompass 2030 Fund | ||||
Class A | $ 93,581 | $ 1,065 | $ 23,658 | .24% |
Class B | 4,944 | 736 | 483 | .21% |
Class C | 13,886 | 1,642 | 2,221 | .22% |
| $ 112,411 | $ 3,443 | $ 26,362 |
|
DWS LifeCompass 2040 Fund | ||||
Class A | $ 33,958 | $ — | $ 9,318 | .23% |
Class C | 454 | 12 | 83 | .24% |
| $ 34,412 | $ 12 | $ 9,401 |
|
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, 2010 for DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund, DWS LifeCompass 2040 Fund aggregated $1,596, $4,484, $7,426, $6,240 and $2,001, 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, 2010, the CDSC for Class B shares aggregated $5,359, $20,977, $34,787 and $3,777 and Class C shares aggregated $189, $206, $1,608 and $709, respectively, for DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund and DWS LifeCompass 2030 Fund. For the year ended August 31, 2010, the CDSC for Class C shares aggregated $48 for DWS LifeCompass 2040 Fund. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares. For the year ended August 31, 2010, DIDI received $25, $3, $20, $10 and $11, respectively, for Class A shares of DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund.
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, 2010, the amounts charged to the Funds by DIMA included in the Statements of Operations under "reports to shareholders" were as follows:
Typesetting and Filing Service Fees | Total Aggregated | Unpaid at August 31, 2010 |
DWS LifeCompass Retirement Fund | $ 8,219 | $ 2,863 |
DWS LifeCompass 2015 Fund | $ 10,420 | $ 3,951 |
DWS LifeCompass 2020 Fund | $ 7,061 | $ 2,109 |
DWS LifeCompass 2030 Fund | $ 7,649 | $ 2,809 |
DWS LifeCompass 2040 Fund | $ 9,024 | $ 2,470 |
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.
Affiliated Cash Management Vehicles. Each Fund may invest uninvested cash balances in affiliated funds managed by the Advisor. Affiliated cash management vehicles do not pay the Advisor a management fee. Each Fund currently invests in Central Cash Management Fund. Prior to October 2, 2009, each Fund invested in Cash Management QP Trust ("QP Trust"). Effective October 2, 2009, QP Trust merged into Central Cash Management Fund. Central Cash Management Fund seeks to provide a high level of current income consistent with liquidity and the preservation of capital.
C. Concentration of Ownership
From time to time, the Funds may have a concentration of several shareholder accounts holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Funds. At August 31, 2010, there was one shareholder account that held approximately 10% of the outstanding shares of DWS LifeCompass 2015 Fund and one shareholder account that held approximately 11% of the outstanding shares of DWS LifeCompass 2040 Fund.
D. Line of Credit
The Funds and other affiliated funds (the "Participants") shared in a $450 million revolving credit facility provided by a syndication of banks. The Funds could 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 a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal Funds Rate the amount of such excess. The Funds could borrow up to a maximum of 20 percent of their net assets under the agreement.
Effective April 1, 2010, the Funds elected not to participate in the revolving credit facility.
E. Share Transactions
DWS LifeCompass Retirement Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2010 | Year Ended August 31, 2009 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 1,050,403 | $ 10,955,141 | 1,301,577 | $ 12,165,210 |
Class B | 12,364 | 129,126 | 33,345 | 308,898 |
Class C | 66,988 | 696,503 | 105,910 | 1,080,300 |
Class S | 424,560 | 4,486,652 | 749,332 | 6,949,283 |
|
| $ 16,267,422 |
| $ 20,503,691 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 80,097 | $ 836,024 | 119,105 | $ 1,108,298 |
Class B | 5,016 | 52,432 | 12,754 | 119,002 |
Class C | 11,926 | 124,534 | 28,934 | 269,072 |
Class S | 135,616 | 1,413,294 | 240,310 | 2,240,269 |
|
| $ 2,426,284 |
| $ 3,736,641 |
Shares redeemed | ||||
Class A | (1,166,588) | $ (12,253,339) | (1,363,176) | $ (12,690,311) |
Class B | (135,265) | (1,423,728) | (198,967) | (1,829,661) |
Class C | (255,718) | (2,680,660) | (426,183) | (3,984,664) |
Class S | (713,564) | (7,506,108) | (1,949,370) | (17,957,921) |
|
| $ (23,863,835) |
| $ (36,462,557) |
Net increase (decrease) | ||||
Class A | (36,088) | $ (462,174) | 57,506 | $ 583,197 |
Class B | (117,885) | (1,242,170) | (152,868) | (1,401,761) |
Class C | (176,804) | (1,859,623) | (291,339) | (2,635,292) |
Class S | (153,388) | (1,606,162) | (959,728) | (8,768,369) |
|
| $ (5,170,129) |
| $ (12,222,225) |
DWS LifeCompass 2015 Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2010 | Year Ended August 31, 2009 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 1,820,763 | $ 17,848,954 | 2,297,347 | $ 19,454,966 |
Class B | 14,636 | 142,845 | 48,604 | 411,026 |
Class C | 86,220 | 849,974 | 146,009 | 1,226,753 |
Class S | 922,866 | 9,175,268 | 1,351,159 | 11,268,537 |
|
| $ 28,017,041 |
| $ 32,361,282 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 165,505 | $ 1,632,553 | 287,120 | $ 2,427,627 |
Class B | 12,485 | 123,347 | 34,390 | 290,012 |
Class C | 21,891 | 216,295 | 52,639 | 443,810 |
Class S | 186,548 | 1,834,763 | 315,748 | 2,674,298 |
|
| $ 3,806,958 |
| $ 5,835,747 |
Shares redeemed | ||||
Class A | (3,026,237) | $ (29,948,393) | (3,108,037) | $ (26,434,953) |
Class B | (384,775) | (3,807,982) | (540,996) | (4,563,139) |
Class C | (490,764) | (4,823,483) | (794,117) | (6,749,656) |
Class S | (1,156,535) | (11,448,725) | (3,099,381) | (25,969,056) |
|
| $ (50,028,583) |
| $ (63,716,804) |
Net increase (decrease) | ||||
Class A | (1,039,969) | $ (10,466,886) | (523,570) | $ (4,552,360) |
Class B | (357,654) | (3,541,790) | (458,002) | (3,862,101) |
Class C | (382,653) | (3,757,214) | (595,469) | (5,079,093) |
Class S | (47,121) | (438,694) | (1,432,474) | (12,026,221) |
|
| $ (18,204,584) |
| $ (25,519,775) |
DWS LifeCompass 2020 Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2010 | Year Ended August 31, 2009 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 2,233,654 | $ 26,335,909 | 2,681,918 | $ 26,943,216 |
Class B | 24,882 | 292,777 | 107,803 | 1,075,849 |
Class C | 103,805 | 1,221,960 | 184,540 | 1,840,547 |
Class S | 716,051 | 8,550,089 | 1,065,504 | 10,562,555 |
|
| $ 36,400,735 |
| $ 40,422,167 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 134,696 | $ 1,600,193 | 276,905 | $ 2,649,988 |
Class B | 12,432 | 147,065 | 53,336 | 508,310 |
Class C | 17,111 | 202,426 | 66,693 | 635,585 |
Class S | 179,070 | 2,129,145 | 437,045 | 4,182,522 |
|
| $ 4,078,829 |
| $ 7,976,405 |
Shares redeemed | ||||
Class A | (2,333,317) | $ (27,598,566) | (2,250,217) | $ (22,549,258) |
Class B | (414,494) | (4,868,091) | (470,061) | (4,729,404) |
Class C | (447,608) | (5,260,557) | (606,523) | (6,012,207) |
Class S | (1,127,830) | (13,440,538) | (2,376,055) | (23,521,920) |
|
| $ (51,167,752) |
| $ (56,812,789) |
Net increase (decrease) | ||||
Class A | 35,033 | $ 337,536 | 708,606 | $ 7,043,946 |
Class B | (377,180) | (4,428,249) | (308,922) | (3,145,245) |
Class C | (326,692) | (3,836,171) | (355,290) | (3,536,075) |
Class S | (232,709) | (2,761,304) | (873,506) | (8,776,843) |
|
| $ (10,688,188) |
| $ (8,414,217) |
DWS LifeCompass 2030 Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2010 | Year Ended August 31, 2009 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 2,352,262 | $ 19,552,196 | 2,299,673 | $ 16,205,308 |
Class B | 14,593 | 123,771 | 33,560 | 237,813 |
Class C | 51,533 | 436,054 | 114,336 | 804,393 |
Class S | 585,122 | 4,961,603 | 649,106 | 4,361,164 |
|
| $ 25,073,624 |
| $ 21,608,678 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 65,328 | $ 555,287 | 193,823 | $ 1,275,355 |
Class B | 1,595 | 13,585 | 19,358 | 127,567 |
Class C | 4,389 | 37,354 | 52,013 | 342,768 |
Class S | 17,307 | 147,113 | 61,839 | 406,900 |
|
| $ 753,339 |
| $ 2,152,590 |
Shares redeemed | ||||
Class A | (1,283,862) | $ (10,840,631) | (821,596) | $ (5,765,725) |
Class B | (57,730) | (484,647) | (65,629) | (455,463) |
Class C | (124,195) | (1,031,482) | (210,839) | (1,416,481) |
Class S | (182,191) | (1,521,325) | (414,165) | (2,845,123) |
|
| $ (13,878,085) |
| $ (10,482,792) |
Net increase (decrease) | ||||
Class A | 1,133,728 | $ 9,266,852 | 1,671,900 | $ 11,714,938 |
Class B | (41,542) | (347,291) | (12,711) | (90,083) |
Class C | (68,273) | (558,074) | (44,490) | (269,320) |
Class S | 420,238 | 3,587,391 | 296,780 | 1,922,941 |
|
| $ 11,948,878 |
| $ 13,278,476 |
DWS LifeCompass 2040 Fund
The following table summarizes share and dollar activity in the Fund:
| Year Ended August 31, 2010 | Year Ended August 31, 2009 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | ||||
Class A | 1,662,022 | $ 12,214,441 | 1,151,838 | $ 7,133,499 |
Class C | 15,359 | 112,610 | 15,423 | 88,640 |
Class S | 636,969 | 4,791,889 | 568,483 | 3,303,366 |
|
| $ 17,118,940 |
| $ 10,525,505 |
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 21,612 | $ 163,816 | 8,265 | $ 48,353 |
Class C | 74 | 562 | 409 | 2,392 |
Class S | 10,223 | 77,597 | 8,651 | 50,609 |
|
| $ 241,975 |
| $ 101,354 |
Shares redeemed | ||||
Class A | (603,412) | $ (4,522,635) | (135,084) | $ (846,410) |
Class C | (23,975) | (177,371) | (10,941) | (83,252) |
Class S | (140,253) | (1,059,616) | (207,900) | (1,275,821) |
|
| $ (5,759,622) |
| $ (2,205,483) |
Net increase (decrease) | ||||
Class A | 1,080,222 | $ 7,855,622 | 1,025,019 | $ 6,335,442 |
Class C | (8,542) | (64,199) | 4,891 | 7,780 |
Class S | 506,939 | 3,809,870 | 369,234 | 2,078,154 |
|
| $ 11,601,293 |
| $ 8,421,376 |
F. Regulatory Settlements
On December 21, 2006, the Advisor settled proceedings with the SEC and the New York Attorney General regarding alleged improper trading of fund shares. In accordance with the distribution plan, developed by a distribution consultant, settlement proceeds were distributed to shareholders of DWS LifeCompass 2020 Fund, and any unclaimed proceeds were then distributed to the Fund in the amount of $8,229. In addition, the Fund received $115,602 of non-affiliated regulatory settlements. These payments are included in "Increase from regulatory settlements" on the Statement of Changes in Net Assets.
G. Review for Subsequent Events
Management has evaluated the events and transactions subsequent to year end through the date the financial statements were available to be issued, and has determined that there were no material events that would require disclosure in the Funds' financial statements.
Report of Independent Registered Public Accounting Firm
To the Trustees of DWS Target Date Series and the Shareholders of DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 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, 2010 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, 2010 by correspondence with the custodian and transfer agent, provide a reasonable basis for our opinion.
Boston, Massachusetts | PricewaterhouseCoopers LLP |
Pursuant to Section 852 of the Internal Revenue Code, DWS LifeCompass 2040 Fund designates $158,000 as capital gain dividends for its year ended August 31, 2010, of which 100% represents 15% rate gains.
For corporate shareholders, 100%, 100%, 100%, 100% and 100% of the ordinary dividends (i.e., income dividends plus short-term capital gains) paid during the fiscal year ended August 31, 2010, for DWS LifeCompass Retirement Fund, DWS LifeCompass 2015 Fund, DWS LifeCompass 2020 Fund, DWS LifeCompass 2030 Fund and DWS LifeCompass 2040 Fund, respectively, 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 $3,185,000, $5,081,000, $5,712,000, $1,168,000 and $407,000, 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.
A Special Meeting of the Shareholders (the "Meeting") of DWS LifeCompass 2040 Fund (the "Fund"), a series of DWS Target Date Series, was held on July 28, 2010, at the offices of Deutsche Investment Management Americas Inc., 345 Park Avenue, New York, New York. At the Meeting, the following matters were voted upon by the shareholders (the resulting votes are presented below).
1. Approval of a Sub-Advisory Agreement between Deutsche Investment Management Americas Inc. and QS Investors, LLC with respect to the Fund.
Number of Votes: | ||
For | Against | Abstain |
1,727,049.991 | 54.566 | 24,565.659 |
2. Approval of a Sub-Advisor Approval Policy for Affiliated and Non-Affiliated Sub-Advisors.
Number of Votes: | ||
For | Against | Abstain |
1,727,049.991 | 54.566 | 24,565.659 |
New Sub-Advisory Agreements Approval
The Board of Trustees, including the Independent Trustees, unanimously approved the New Sub-Advisory Agreements (the "New Agreements") between Deutsche Investment Management Americas Inc. ("DWS") and QS Investors, LLC ("QS Investors") in May 2010.
In terms of the process that the Board followed prior to approving the New Agreements, shareholders should know that:
• In May 2010, all of the Funds' Trustees were independent of DWS and its affiliates.
• The Board engaged in a comprehensive review of the operational, financial and investment capabilities of QS Investors and the terms of the proposed Separation. As part of this review, the Board also reviewed and considered the terms of the New Agreements.
• To facilitate its review, the Board created several ad hoc subcommittees, each focused on different aspects of the Board's consideration of the Separation, and each comprised solely of Independent Trustees.
• The Board and its subcommittees conducted numerous meetings between January 2010 and May 2010 to review and discuss the Separation, including the New Agreements, and were assisted in this review by their independent legal counsel and fund counsel.
• In the course of its review, the Board requested and received substantial additional information.
• As part of its review process, the Board and its subcommittees met with various representatives of DWS and QS Investors, including key investment personnel and other members of senior management.
• The Board requested and evaluated all information that it deemed reasonably necessary to evaluate the New Agreements.
In connection with the approval of the New Agreements, the Board considered the factors described below, among others.
Continuity of Investment Management Services. In reviewing the New Agreements, the Board considered that it had renewed the investment management agreements between DWS and the Funds as part of the annual contract renewal process (the "Annual Review") in September 2009, at which time it had determined that such renewals were in the best interests of the Funds, given the nature, quality and extent of services provided by DWS (among other considerations). In considering the New Agreements, the Board noted that in light of the transition of the group within DWS responsible for day-to-day portfolio management of the Funds to a separate, unaffiliated firm (i.e., QS Investors), it was necessary to approve sub-advisory agreements between DWS and QS Investors to secure continued access to these same personnel and services. The Board also considered that, despite the change in corporate identity of the portfolio management services provider and the fact that it would no longer be affiliated with DWS, the nature, quality and extent of services provided to the Funds are not expected to change under the New Agreements.
Fees and Expenses. The Board noted that it had concluded during the Annual Review that the overall investment management fees paid by the Funds are reasonable and appropriate in light of the nature, quality and extent of services provided. The Board considered that, under the New Agreements, QS Investors' sub-advisory fee would be paid by DWS out of its management fee and not directly by the Funds, and therefore there would be no change in the Funds' overall investment management fees under the New Agreements.
Profitability. The Board noted that it had considered the profitability of DWS during the Annual Review. The Board did not consider the profitability of QS Investors to be a material factor. In particular, the Board noted that QS Investors has not yet commenced operations, and that any projections of profitability are likely to be of limited value. The Board also noted that DWS would pay QS Investors' sub-advisory fee out of its management fee, and further noted that the sub-advisory fee arrangement with respect to the Funds was the product of an arm's length negotiation.
Other Benefits to QS Investors. The Board noted that it had considered fallout benefits to DWS during the Annual Review in its determination that management fees paid were reasonable. The Board also considered the character and amount of incidental benefits expected to be realized by QS Investors in light of the New Agreements, including the incidental public relations benefits to QS Investors related to DWS US mutual funds advertising and cross-selling opportunities among DWS products and services. The Board noted that QS Investors did not propose to implement a "soft dollar" program. The Board reaffirmed its determination from the Annual Review process that management fees paid were reasonable in light of fallout benefits to its investment advisory service providers.
Compliance. The Board considered QS Investors' proposed compliance program and resources. The Board also considered that DWS would oversee QS Investors' compliance program and its compliance with applicable Fund policies and procedures, and considered the attention and resources DWS would dedicate to that oversight. The Board also noted that it had considered DWS's compliance monitoring capabilities in connection with the Annual Review, at which time it had noted (i) the experience and seniority of both DWS's chief compliance officer and the Funds' chief compliance officer; (ii) the large number of DWS compliance personnel; and (iii) the substantial commitment of resources by DWS and its affiliates to compliance matters.
Based on all of the information considered and the conclusions reached, the Board unanimously (including the Independent Trustees) determined that the terms of the New Agreements are fair and reasonable and that the approval of the New Agreements is in the best interests of the Funds. In reaching this conclusion, the Board did not give particular weight to any single factor identified above. It is possible that individual Trustees may have weighed these factors differently in reaching their individual decisions to approve the New Agreements.
Summary of Management Fee Evaluation by Independent Fee Consultant
October 9, 2009, As Revised November 20, 2009
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 Funds (formerly 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 2009, including my qualifications, the evaluation process for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in substantially the same capacity in 2007 and 2008.
Qualifications
For more than 35 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 ten 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 and serve in various leadership and financial oversight capacities with non-profit organizations.
Evaluation of Fees for each DWS Fund
My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 124 publicly offered Fund portfolios in the DWS 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 Fund. These similar products included the other DWS 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 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 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 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 Funds are reasonable.
Thomas H. Mack
The following table presents certain information regarding the Board Members and Officers of the Trust as of August 31, 2010. 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 Paul K. Freeman, Independent Chairman, DWS Funds, PO Box 101833, Denver, CO 80250-1833. 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 |
Paul K. Freeman (1950) Chairperson since 2009 Board Member since 1993 | Consultant, World Bank/Inter-American Development Bank; Governing Council of the Independent Directors Council (governance, education committees); formerly, Project Leader, International Institute for Applied Systems Analysis (1998-2001); Chief Executive Officer, The Eric Group, Inc. (environmental insurance) (1986-1998) | 123 |
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; Prisma Energy International | 123 |
Henry P. Becton, Jr. (1943) Board Member since 1990 | Vice Chair and former President, WGBH Educational Foundation. Directorships: Association of Public Television Stations; Lead Director, Becton Dickinson and Company3 (medical technology company); Lead Director, Belo Corporation3 (media company); Public Radio International; Public Radio Exchange (PRX); The PBS Foundation. Former Directorships: Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service | 123 |
Dawn-Marie Driscoll (1946) Board Member since 1987 | President, Driscoll Associates (consulting firm); Executive Fellow, Center for Business Ethics, Bentley University; formerly, Partner, Palmer & Dodge (1988-1990); Vice President of Corporate Affairs and General Counsel, Filene's (1978-1988). Directorships: Trustee of 20 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 University; Trustee, Southwest Florida Community Foundation (charitable organization). Former Directorships: Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 123 |
Keith R. Fox (1954) Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds). Directorships: Progressive Holding Corporation (kitchen goods importer and distributor); Box Top Media Inc. (advertising); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies | 123 |
Kenneth C. Froewiss (1945) Board Member since 2001 | Adjunct Professor of Finance, NYU Stern School of Business (September 2009-present; Clinical Professor from 1997-September 2009); 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) | 123 |
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) | 123 |
William McClayton (1944) Board Member since 2004+ | Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001-2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966-2001); Trustee, Ravinia Festival | 123 |
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); Director, CardioNet, Inc.2 (2009-present) (health care). 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 Care2 (January 2007-June 2007) | 123 |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; Trustee of 20 open-end mutual funds managed by Sun Capital Advisers, Inc. (since October 1998). Formerly, Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989-September 2003) | 123 |
Jean Gleason Stromberg (1943) Board Member since 1997 | Retired. Formerly, Consultant (1997-2001); Director, Financial Markets US Government Accountability Office (1996-1997); Partner, Fulbright & Jaworski, L.L.P. (law firm) (1978-1996). Directorships: The William and Flora Hewlett Foundation. Former Directorships: Service Source, Inc., Mutual Fund Directors Forum (2002-2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987-1990 and 1994-1996) | 123 |
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 | 126 |
Officers4 | |
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Principal Occupation(s) During Past 5 Years and Other Directorships Held |
Michael G. Clark6 (1965) President, 2006-present | Managing Director3, 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) |
Ingo Gefeke7 (1967) Executive Vice President since 2010 | Managing Director3, Deutsche Asset Management; Global Head of Distribution and Product Management, DWS Global Head of Trading and Securities Lending. Member of the Board of Directors of DWS Investment GmbH Frankfurt (since July 2009) and DWS Holding & Service GmbH Frankfurt (since January 2010); formerly, Global Chief Administrative Officer, Deutsche Asset Management (2004-2009); Global Chief Operating Officer, Global Transaction Banking, Deutsche Bank AG, New York (2001-2004); Chief Operating Officer, Global Banking Division Americas, Deutsche Bank AG, New York (1999-2001); Central Management, Global Banking Services, Deutsche Bank AG, Frankfurt (1998-1999); Relationship Management, Deutsche Bank AG, Tokyo, Japan (1997-1998) |
John Millette8 (1962) Vice President and Secretary, 1999-present | Director3, Deutsche Asset Management |
Paul H. Schubert6 (1963) Chief Financial Officer, 2004-present Treasurer, 2005-present | Managing Director3, 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) |
Caroline Pearson8 (1962) Chief Legal Officer, April 2010-present | Managing Director3, Deutsche Asset Management; formerly, Assistant Secretary for DWS family of funds (1997-2010) |
Rita Rubin9 (1970) Assistant Secretary, 2009-present | Vice President and Counsel, Deutsche Asset Management (since October 2007); formerly, Vice President, Morgan Stanley Investment Management (2004-2007) |
Paul Antosca8 (1957) Assistant Treasurer, 2007-present | Director3, Deutsche Asset Management (since 2006); Vice President, The Manufacturers Life Insurance Company (U.S.A.) (1990-2006) |
Jack Clark8 (1967) Assistant Treasurer, 2007-present | Director3, Deutsche Asset Management (since 2007); formerly, Vice President, State Street Corporation (2002-2007) |
Diane Kenneally8 (1966) Assistant Treasurer, 2007-present | Director3, Deutsche Asset Management |
John Caruso10 (1965) Anti-Money Laundering Compliance Officer, 2010-present | Managing Director3, Deutsche Asset Management |
Robert Kloby9 (1962) Chief Compliance Officer, 2006-present | Managing Director3, Deutsche Asset Management |
2 A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.
3 Executive title, not a board directorship.
4 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.
5 The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds.
6 Address: 100 Plaza One, Jersey City, NJ 07311.
7 The mailing address of Mr. Gefeke is 345 Park Avenue, New York, New York 10154. In addition, Mr. Gefeke is an interested Board Member of certain DWS funds by virtue of his positions with Deutsche Asset Management. As an interested person, Mr. Gefeke receives no compensation from the fund.
8 Address: One Beacon Street, Boston, MA 02108.
9 Address: 280 Park Avenue, New York, New York 10017.
10 Address: 60 Wall Street, New York, New York 10005.
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 |
DWS LifeCompass Retirement Fund
| Class A | Class B | Class C | Class S |
Nasdaq Symbol | SUCAX | SUCBX | SUCCX | SCPCX |
CUSIP Number | 23337A 608 | 23337A 707 | 23337A 806 | 23337A 871 |
Fund Number | 480 | 680 | 780 | 2080 |
DWS LifeCompass 2015 Fund
| Class A | Class B | Class C | Class S |
Nasdaq Symbol | SPDAX | SPDBX | SPDCX | SPBAX |
CUSIP Number | 23337A 103 | 23337A 202 | 23337A 301 | 23337A 509 |
Fund Number | 481 | 681 | 781 | 2081 |
DWS LifeCompass 2020 Fund
| Class A | Class B | Class C | Class S |
Nasdaq Symbol | SUPAX | SUPBX | SUPCX | SPGRX |
CUSIP Number | 23337A 863 | 23337A 855 | 23337A 848 | 23337A 822 |
Fund Number | 482 | 682 | 782 | 2082 |
DWS LifeCompass 2030 Fund
| Class A | Class B | Class C | Class S |
Nasdaq Symbol | PLUSX | PLSBX | PLSCX | PPLSX |
CUSIP Number | 23337A 814 | 23337A 798 | 23337A 780 | 23337A 772 |
Fund Number | 1084 | 1284 | 1384 | 2084 |
DWS LifeCompass 2040 Fund
| Class A | Class B | Class C | Class S |
Nasdaq Symbol | TGTAX | — | TGTCX | TGTSX |
CUSIP Number | 23337A 764 | — | 23337A 756 | 23337A 749 |
Fund Number | 457 | — | 757 | 2057 |
Notes
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ITEM 2. | CODE OF ETHICS |
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| As of the end of the period covered by this report, the registrant has adopted 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 fund’s 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 fund’s 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 fund’s audit committee including Mr. William McClayton, the chair of the fund’s audit committee. 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” 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 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.
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 |
2010 | $37,781 | $0 | $0 | $0 |
2009 | $37,041 | $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 |
2010 | $7,500 | $0 | $0 |
2009 | $2,000 | $0 | $0 |
The “Audit-Related Fees” were billed for services in connection with the 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) |
2010 | $0 | $0 | $100,000 | $100,000 |
2009 | $0 | $0 | $0 | $0 |
All other engagement fees were billed for services in connection with an internal control review of a subadvisor.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
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.
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 |
2010 | $37,781 | $0 | $0 | $0 |
2009 | $37,041 | $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 |
2010 | $7,500 | $0 | $0 |
2009 | $2,000 | $0 | $0 |
The “Audit-Related Fees” were billed for services in connection with the 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) |
2010 | $0 | $0 | $100,000 | $100,000 |
2009 | $0 | $0 | $0 | $0 |
All other engagement fees were billed for services in connection with an internal control review of a subadvisor.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
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.
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 |
2010 | $37,781 | $0 | $0 | $0 |
2009 | $37,041 | $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 |
2010 | $7,500 | $0 | $0 |
2009 | $2,000 | $0 | $0 |
The “Audit-Related Fees” were billed for services in connection with the 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) |
2010 | $0 | $0 | $100,000 | $100,000 |
2009 | $0 | $0 | $0 | $0 |
All other engagement fees were billed for services in connection with an internal control review of a subadvisor.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
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.
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 |
2010 | $37,781 | $0 | $0 | $0 |
2009 | $37,041 | $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 |
2010 | $7,500 | $0 | $0 |
2009 | $2,000 | $0 | $0 |
The “Audit-Related Fees” were billed for services in connection with the 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) |
2010 | $0 | $0 | $100,000 | $100,000 |
2009 | $0 | $0 | $0 | $0 |
All other engagement fees were billed for services in connection with an internal control review of a subadvisor.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
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.
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 |
2010 | $37,781 | $0 | $0 | $0 |
2009 | $37,041 | $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 |
2010 | $7,500 | $0 | $0 |
2009 | $2,000 | $0 | $0 |
The “Audit-Related Fees” were billed for services in connection with the 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) |
2010 | $0 | $0 | $100,000 | $100,000 |
2009 | $0 | $0 | $0 | $0 |
All other engagement fees were billed for services in connection with an internal control review of a subadvisor.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
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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 |
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ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
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| Not Applicable. |
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ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
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| There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. 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 Paul K. Freeman, Independent Chairman, DWS Funds, P.O. Box 101833, Denver, CO 80250-1833. |
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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 Target Date Series |
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By: | /s/Michael G. Clark Michael G. Clark President |
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Date: | October 29, 2010 |
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.
By: | /s/Michael G. Clark Michael G. Clark President |
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Date: | October 29, 2010 |
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By: | /s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer |
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Date: | October 29, 2010 |