UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-01236
DWS Market Trust
(Exact Name of Registrant as Specified in Charter)
345 Park Avenue
New York, NY 10154-0004
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 250-3220
Paul Schubert
60 Wall Street
New York, NY 10005
(Name and Address of Agent for Service)
| Date of fiscal year end: | 8/31 |
| Date of reporting period: | 2/28/2014 |
| ITEM 1. | REPORT TO STOCKHOLDERS |
February 28, 2014
Semiannual Report
to Shareholders
DWS Select Alternative Allocation Fund
Contents
3 Letter to Shareholders 4 Performance Summary 7 Portfolio Management Team 8 Portfolio Summary 9 Investment Portfolio 11 Statement of Assets and Liabilities 13 Statement of Operations 14 Statement of Changes in Net Assets 15 Financial Highlights 21 Notes to Financial Statements 30 Information About Your Fund's Expenses 32 Advisory Agreement Board Considerations and Fee Evaluation 37 Account Management Resources 39 Privacy Statement |
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, portfolio management may favor an asset category that underperforms other assets or markets as a whole. The fund expects to invest in underlying funds that emphasize alternatives or non-traditional asset categories or investment strategies, and as a result, it is subject to the risk factors of those underlying funds. Some of those risks include stock market risk, credit and interest rate risk, floating rate loan risk, volatility in commodity prices, infrastructure and high-yield debt securities, short sales risk and the political, general economic, liquidity and currency risks of foreign investments, which may be particularly significant for emerging markets. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Because Exchange Traded Funds (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. Short sales — which involve selling borrowed securities in anticipation of a price decline, then returning an equal number of the securities at some point in the future — could magnify losses and increase volatility. See the prospectus for additional risks and specific details regarding the fund's risk profile.
Deutsche Asset & Wealth Management represents the asset management and wealth management activities conducted by Deutsche Bank AG or any of its subsidiaries, including the Advisor and DWS Investments Distributors, Inc.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Dear Shareholder:
Having recently joined Deutsche Asset & Wealth Management as president of the DWS funds and head of Fund Administration, I'd like to take this opportunity to introduce myself. I come with 20 years of experience in asset management and the mutual fund industry. My job is to work closely with your fund board to ensure optimal oversight of the DWS funds' management and operations. I look forward to serving in this role on your behalf.
As for the economy, experts seem to agree that both the U.S. and global economies are recovering. Interest rates, while destined to rise to a level more in line with historical "normal" at some point, will likely remain relatively low for the foreseeable future. The stock markets continue to demonstrate strength as housing rebounds, American manufacturing strengthens, the U.S. budget deficit improves and unemployment continues to move lower. However, uncertainty persists regarding the pace of the recovery, the eventual tapering of government bond purchases, the potential for further political gridlock around the fiscal impasse and lingering effects of the financial crisis. All this uncertainty may well contribute to volatility in both the bond and stock markets.
It may help to remember that market fluctuations are not unusual. However, significant market swings may also reflect behavior that is driven more by investor emotion than any fundamental factors relating to the securities in question. If volatility is making you nervous, it may be time to review your investments. A trusted financial advisor can help you determine if a strategy change is appropriate and identify risk management strategies that serve your specific goals and situation.
Best regards,
Brian Binder
President, DWS Funds
| Class A | 6-Month‡ | 1-Year | 5-Year | Life of Fund* |
Average Annual Total Returns as of 2/28/14 | ||||
| Unadjusted for Sales Charge | 5.87% | 2.60% | 10.18% | 5.90% |
| Adjusted for the Maximum Sales Charge (max 5.75% load) | –0.22% | –3.30% | 8.88% | 4.75% |
MSCI World Index† | 14.67% | 21.68% | 19.98% | 8.97% |
Barclays U.S. Aggregate Bond Index† | 2.84% | 0.15% | 5.13% | 5.35% |
Blended Index† | 9.88% | 12.75% | 14.27% | 8.14% |
Average Annual Total Returns as of 12/31/13 (most recent calendar quarter end) | ||||
| Unadjusted for Sales Charge | 0.97% | 8.18% | 5.61% | |
| Adjusted for the Maximum Sales Charge (max 5.75% load) | –4.83% | 6.91% | 4.42% | |
MSCI World Index† | 26.68% | 15.02% | 9.03% | |
Barclays U.S. Aggregate Bond Index† | –2.02% | 4.44% | 5.11% | |
Blended Index† | 14.46% | 11.16% | 8.10% | |
| Class C | 6-Month‡ | 1-Year | 5-Year | Life of Fund* |
Average Annual Total Returns as of 2/28/14 | ||||
| Unadjusted for Sales Charge | 5.54% | 1.91% | 9.37% | 5.11% |
| Adjusted for the Maximum Sales Charge (max 1.00% CDSC) | 4.54% | 1.91% | 9.37% | 5.11% |
MSCI World Index† | 14.67% | 21.68% | 19.98% | 8.97% |
Barclays U.S. Aggregate Bond Index† | 2.84% | 0.15% | 5.13% | 5.35% |
Blended Index† | 9.88% | 12.75% | 14.27% | 8.14% |
Average Annual Total Returns as of 12/31/13 (most recent calendar quarter end) | ||||
| Unadjusted for Sales Charge | 0.21% | 7.37% | 4.81% | |
| Adjusted for the Maximum Sales Charge (max 1.00% CDSC) | 0.21% | 7.37% | 4.81% | |
MSCI World Index† | 26.68% | 15.02% | 9.03% | |
Barclays U.S. Aggregate Bond Index† | –2.02% | 4.44% | 5.11% | |
Blended Index† | 14.46% | 11.16% | 8.10% | |
| Class R | 6-Month‡ | 1-Year | 5-Year | Life of Fund* |
Average Annual Total Returns as of 2/28/14 | ||||
| No Sales Charges | 5.76% | 2.42% | 9.76% | 5.49% |
MSCI World Index† | 14.67% | 21.68% | 19.98% | 8.97% |
Barclays U.S. Aggregate Bond Index† | 2.84% | 0.15% | 5.13% | 5.35% |
Blended Index† | 9.88% | 12.75% | 14.27% | 8.14% |
Average Annual Total Returns as of 12/31/13 (most recent calendar quarter end) | ||||
| No Sales Charges | 0.71% | 7.77% | 5.20% | |
MSCI World Index† | 26.68% | 15.02% | 9.03% | |
Barclays U.S. Aggregate Bond Index† | –2.02% | 4.44% | 5.11% | |
Blended Index† | 14.46% | 11.16% | 8.10% | |
| Class S | 6-Month‡ | 1-Year | 5-Year | Life of Fund* |
Average Annual Total Returns as of 2/28/14 | ||||
| No Sales Charges | 6.03% | 2.85% | 10.42% | 6.13% |
MSCI World Index† | 14.67% | 21.68% | 19.98% | 8.97% |
Barclays U.S. Aggregate Bond Index† | 2.84% | 0.15% | 5.13% | 5.35% |
Blended Index† | 9.88% | 12.75% | 14.27% | 8.14% |
Average Annual Total Returns as of 12/31/13 (most recent calendar quarter end) | ||||
| No Sales Charges | 1.04% | 8.42% | 5.82% | |
MSCI World Index† | 26.68% | 15.02% | 9.03% | |
Barclays U.S. Aggregate Bond Index† | –2.02% | 4.44% | 5.11% | |
Blended Index† | 14.46% | 11.16% | 8.10% | |
| Institutional Class | 6-Month‡ | 1-Year | 5-Year | Life of Fund* |
Average Annual Total Returns as of 2/28/14 | ||||
| No Sales Charges | 6.07% | 3.08% | 10.51% | 6.20% |
MSCI World Index† | 14.67% | 21.68% | 19.98% | 8.97% |
Barclays U.S. Aggregate Bond Index† | 2.84% | 0.15% | 5.13% | 5.35% |
Blended Index† | 9.88% | 12.75% | 14.27% | 8.14% |
Average Annual Total Returns as of 12/31/13 (most recent calendar quarter end) | ||||
| No Sales Charges | 1.27% | 8.48% | 5.90% | |
MSCI World Index† | 26.68% | 15.02% | 9.03% | |
Barclays U.S. Aggregate Bond Index† | –2.02% | 4.44% | 5.11% | |
Blended Index† | 14.46% | 11.16% | 8.10% | |
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 dws-investments.com for the Fund's most recent month-end performance. Fund 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, 2013 are 1.73%, 2.49%, 2.18%, 1.60% and 1.44% for Class A, Class C, Class R, Class S and Institutional Class 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 do not reflect any fees or expenses and 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 R shares for the period prior to its inception on May 1, 2012 are derived from the historical performance of Class A shares of the DWS Select Alternative Allocation Fund during such periods have been adjusted to reflect the higher total annual operating expenses. Any difference in expenses will affect performance.
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
 |
 |
| Yearly periods ended February 28 |
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 October 1, 2008. The performance shown for each index is for the time period of September 30, 2008 through February 28, 2014 (through December 31, 2013 for the most recent calendar quarter end returns) which is based on the performance period of the life of the Fund.
† The Morgan Stanley Capital International (MSCI) World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The index consists of 24 developed market country indices. The index is calculated using closing local market prices and translates into U.S. dollars using the London close foreign exchange rates.
The Barclays U.S. Aggregate Bond Index is an unmanaged index representing domestic taxable investment-grade bonds, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities with an average maturity of one year or more.
The Blended Index consists of 60% in the MSCI World Index and 40% in the Barclays U.S. Aggregate Bond Index.
‡ Total returns shown for periods less than one year are not annualized.
| Class A | Class C | Class R | Class S | Institutional Class | ||||||||||||||||
| Net Asset Value | ||||||||||||||||||||
| 2/28/14 | $ | 11.41 | $ | 11.41 | $ | 11.47 | $ | 11.41 | $ | 11.41 | ||||||||||
| 8/31/13 | $ | 11.00 | $ | 10.95 | $ | 11.04 | $ | 11.00 | $ | 11.02 | ||||||||||
Distribution Information as of 2/28/14 | ||||||||||||||||||||
| Income Dividends, Six Months | $ | .21 | $ | .13 | $ | .18 | $ | .23 | $ | .25 | ||||||||||
| Capital Gain Distributions, Six Months | $ | .02 | $ | .02 | $ | .02 | $ | .02 | $ | .02 | ||||||||||
Pankaj Bhatnagar, PhD, Managing Director
Portfolio Manager of the fund. Joined the fund in 2013.
— Joined Deutsche Asset & Wealth Management in 2000 with seven years of industry experience; previously, served in Quantitative Strategy roles at Nomura Securities, Credit Suisse and Salomon Brothers.
— Portfolio Manager for the Quantitative Group: New York.
— Degree in Civil Engineering, Indian Institute of Technology; MBA, Kent State University; PhD in Finance, University of North Carolina at Chapel Hill.
Benjamin Pace, Managing Director
Portfolio Manager of the fund. Joined the fund in 2013.
— Joined Deutsche Asset & Wealth Management in 1994 after 11 years of industry experience. Prior to joining he served as a securities analyst and equity income fund manager for Princeton Bank and Trust. Before that, he held portfolio management positions at Midlantic Bank and United Jersey Bank.
— Chief Investment Officer and Head of Discretionary Portfolio Management for Wealth Management in the Americas, Member of the Wealth Management Global Investment Committee, Chair of the Americas Investment Committee and Member of the Wealth Management Americas Executive Committee and the Deutsche Asset & Wealth Management Americas Executive Committee: New York.
— BA in Economics, Columbia University; MBA in Finance, New York University.
Darwei Kung, Director
Portfolio Manager of the fund. Joined the fund in 2013.
— Joined Deutsche Asset & Wealth Management in 2006; previously has worked as a Director, Engineering and Business Development at Calpoint LLC from 2001–2004.
— Portfolio Manager: New York.
— BS and MS, University of Washington, Seattle; MS and MBA, Carnegie Mellon University.
| Shares | Value ($) | |||||||
| Mutual Funds 83.5% | ||||||||
| DWS Diversified Market Neutral Fund "Institutional" (a) | 10,436,056 | 91,628,574 | ||||||
| DWS Enhanced Commodity Strategy Fund "Institutional" (a) | 4,739,629 | 75,123,113 | ||||||
| DWS Enhanced Emerging Markets Fixed Income Fund "Institutional" (a) | 7,144,581 | 75,232,436 | ||||||
| DWS Floating Rate Fund "Institutional" (a) | 10,336,230 | 97,987,461 | ||||||
| DWS Global Inflation Fund "Institutional" (a) | 3,379,743 | 33,865,024 | ||||||
| DWS RREEF Global Infrastructure Fund "Institutional" (a) | 7,126,738 | 98,847,849 | ||||||
| DWS RREEF Global Real Estate Securities Fund "Institutional" (a) | 2,268,744 | 18,875,950 | ||||||
Total Mutual Funds (Cost $460,788,678) | 491,560,407 | |||||||
| Exchange-Traded Funds 16.5% | ||||||||
| PowerShares DB U.S. Dollar Index Bullish Fund* (b) | 564,739 | 12,074,120 | ||||||
| SPDR Barclays Convertible Securities Fund | 1,721,164 | 85,059,925 | ||||||
Total Exchange-Traded Funds (Cost $86,935,156) | 97,134,045 | |||||||
| % of Net Assets | Value ($) | |||||||
Total Investment Portfolio (Cost $547,723,834)† | 100.0 | 588,694,452 | ||||||
| Other Assets and Liabilities, Net | 0.0 | 233,928 | ||||||
| Net Assets | 100.0 | 588,928,380 | ||||||
* Non-income producing security.
† The cost for federal income tax purposes was $550,838,065. At February 28, 2014, net unrealized appreciation for all securities based on tax cost was $37,856,387. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $51,186,741 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $13,330,354.
(a) Affiliated fund managed by Deutsche Investment Management Americas Inc.
(b) Affiliated fund managed by DB Commodity Services LLC, a subsidiary of Deutsche Bank AG.
SPDR: Standard & Poor's Depositary Receipt
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 level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of February 28, 2014 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 | ||||||||||||
| Mutual Funds | $ | 491,560,407 | $ | — | $ | — | $ | 491,560,407 | ||||||||
| Exchange-Traded Funds | 97,134,045 | — | — | 97,134,045 | ||||||||||||
| Total | $ | 588,694,452 | $ | — | $ | — | $ | 588,694,452 | ||||||||
There have been no transfers between fair value measurement levels during the period ended February 28, 2014.
The accompanying notes are an integral part of the financial statements.
| as of February 28, 2014 (Unaudited) | ||||
| Assets | ||||
Investments: Investments in affiliated Underlying Funds, at value (cost $473,401,466) | $ | 503,634,527 | ||
| Investments in non-affiliated Underlying Funds, at value (cost $74,322,368) | 85,059,925 | |||
| Total investments, at value (cost $547,723,834) | 588,694,452 | |||
| Receivable for investments sold | 398,000 | |||
| Receivable for Fund shares sold | 1,567,079 | |||
| Interest receivable | 173 | |||
| Other assets | 59,435 | |||
| Total assets | 590,719,139 | |||
| Liabilities | ||||
| Cash overdraft | 16,360 | |||
| Payable for Fund shares redeemed | 1,279,097 | |||
| Accrued Trustees' fees | 7,049 | |||
| Other accrued expenses and payables | 488,253 | |||
| Total liabilities | 1,790,759 | |||
| Net assets, at value | $ | 588,928,380 | ||
| Net Assets Consist of | ||||
| Distributions in excess of net investment income | (826,976 | ) | ||
| Net unrealized appreciation (depreciation) on investments | 40,970,618 | |||
| Accumulated net realized gain (loss) | (4,213,242 | ) | ||
| Paid-in capital | 552,997,980 | |||
| Net assets, at value | $ | 588,928,380 | ||
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of February 28, 2014 (Unaudited) (continued) | ||||
| Net Asset Value | ||||
Class A Net Asset Value and redemption price per share ($443,835,139 ÷ 38,888,829 shares outstanding of beneficial interest, no par value, unlimited number of shares authorized) | $ | 11.41 | ||
| Maximum offering price per share (100 ÷ 94.25 of $11.41) | $ | 12.11 | ||
Class C Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($47,316,845 ÷ 4,147,697 shares outstanding of beneficial interest, no par value, unlimited number of shares authorized) | $ | 11.41 | ||
Class R Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($687,241 ÷ 59,908 shares outstanding of beneficial interest, no par value, unlimited number of shares authorized) | $ | 11.47 | ||
Class S Net Asset Value, offering and redemption price per share ($86,513,659 ÷ 7,584,994 shares outstanding of beneficial interest, no par value, unlimited number of shares authorized) | $ | 11.41 | ||
Institutional Class Net Asset Value, offering and redemption price per share ($10,575,496 ÷ 926,891 shares outstanding of beneficial interest, no par value, unlimited number of shares authorized) | $ | 11.41 | ||
The accompanying notes are an integral part of the financial statements.
| for the six months ended February 28, 2014 (Unaudited) | ||||
| Investment Income | ||||
Income: Dividends | $ | 2,040,588 | ||
| Income distributions from affiliated Underlying Funds | 5,197,219 | |||
| Total income | 7,237,807 | |||
Expenses: Administration fee | 308,813 | |||
| Services to shareholders | 461,539 | |||
| Distribution and service fees | 809,715 | |||
| Custodian fee | 8,746 | |||
| Professional fees | 41,709 | |||
| Reports to shareholders | 40,649 | |||
| Registration fees | 49,199 | |||
| Trustees' fees and expenses | 12,907 | |||
| Other | 8,781 | |||
| Total expenses before expense reductions | 1,742,058 | |||
| Expense reductions | (1,949 | ) | ||
| Total expenses after expense reductions | 1,740,109 | |||
| Net investment income | 5,497,698 | |||
| Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) from: Sale of affiliated Underlying Funds | (10,239,925 | ) | ||
| Sale of non-affiliated Underlying Funds | (3,779,630 | ) | ||
| Capital gain distributions from affiliated Underlying Funds | 12,927,991 | |||
| (1,091,564 | ) | |||
| Change in net unrealized appreciation (depreciation) on investments | 30,949,602 | |||
| Net gain (loss) | 29,858,038 | |||
| Net increase (decrease) in net assets resulting from operations | $ | 35,355,736 | ||
The accompanying notes are an integral part of the financial statements.
| Increase (Decrease) in Net Assets | Six Months Ended February 28, 2014 (Unaudited) | Year Ended August 31, 2013 | ||||||
Operations: Net investment income | $ | 5,497,698 | $ | 12,267,627 | ||||
Operations: Net investment income | $ | 5,497,698 | $ | 12,267,627 | ||||
| Net realized gain (loss) | (1,091,564 | ) | 2,528,422 | |||||
| Change in net unrealized appreciation (depreciation) | 30,949,602 | (18,819,035 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | 35,355,736 | (4,022,986 | ) | |||||
Distributions to shareholders from: Net investment income: Class A | (8,485,384 | ) | (11,578,032 | ) | ||||
| Class C | (539,055 | ) | (684,999 | ) | ||||
| Class R | (9,088 | ) | (887 | ) | ||||
| Class S | (1,898,827 | ) | (2,163,943 | ) | ||||
| Institutional Class | (221,428 | ) | (214,700 | ) | ||||
Net realized gains: Class A | (742,834 | ) | (880,448 | ) | ||||
| Class C | (79,545 | ) | (76,913 | ) | ||||
| Class R | (921 | ) | (116 | ) | ||||
| Class S | (154,021 | ) | (153,486 | ) | ||||
| Institutional Class | (16,126 | ) | (14,435 | ) | ||||
| Total distributions | (12,147,229 | ) | (15,767,959 | ) | ||||
Fund share transactions: Proceeds from shares sold | 53,206,526 | 295,300,075 | ||||||
| Reinvestment of distributions | 11,986,625 | 15,522,294 | ||||||
| Payments for shares redeemed | (153,243,709 | ) | (173,357,118 | ) | ||||
| Net increase (decrease) in net assets from Fund share transactions | (88,050,558 | ) | 137,465,251 | |||||
| Increase (decrease) in net assets | (64,842,051 | ) | 117,674,306 | |||||
| Net assets at beginning of period | 653,770,431 | 536,096,125 | ||||||
| Net assets at end of period (including distributions in excess of net investment income and undistributed net investment income of $826,976 and $4,829,108, respectively) | $ | 588,928,380 | $ | 653,770,431 | ||||
The accompanying notes are an integral part of the financial statements.
| Years Ended August 31, | ||||||||||||||||||||||||
| Class A | Six Months Ended 2/28/14 (Unaudited) | 2013 | 2012 | 2011 | 2010 | Period Ended 8/31/09a | ||||||||||||||||||
| Selected Per Share Data | ||||||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.00 | $ | 11.30 | $ | 11.35 | $ | 10.72 | $ | 9.89 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: Net investment incomeb | .10 | .22 | .35 | .35 | .23 | .13 | ||||||||||||||||||
| Net realized and unrealized gain (loss) | .54 | (.22 | ) | .03 | .48 | .85 | .20 | |||||||||||||||||
| Total from investment operations | .64 | (.00 | )*** | .38 | .83 | 1.08 | .33 | |||||||||||||||||
Less distributions from: Net investment income | (.21 | ) | (.28 | ) | (.36 | ) | (.20 | ) | (.21 | ) | (.44 | ) | ||||||||||||
| Net realized gains | (.02 | ) | (.02 | ) | (.07 | ) | — | (.04 | ) | — | ||||||||||||||
| Total distributions | (.23 | ) | (.30 | ) | (.43 | ) | (.20 | ) | (.25 | ) | (.44 | ) | ||||||||||||
| Net asset value, end of period | $ | 11.41 | $ | 11.00 | $ | 11.30 | $ | 11.35 | $ | 10.72 | $ | 9.89 | ||||||||||||
Total Return (%)c,e | 5.87 | ** | (.04 | )d | 3.54 | d | 7.80 | d | 11.08 | d | 3.96 | d** | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data | ||||||||||||||||||||||||
| Net assets, end of period ($ millions) | 444 | 491 | 438 | 320 | 191 | 71 | ||||||||||||||||||
Ratio of expenses before expense reductions (%)f | .53 | * | .53 | .54 | .54 | .60 | 1.43 | * | ||||||||||||||||
Ratio of expenses after expense reductions (%)f | .53 | * | .53 | .50 | .36 | .36 | .36 | * | ||||||||||||||||
| Ratio of net investment income (%) | 1.81 | * | 1.97 | 3.19 | 3.05 | 2.18 | 1.62 | * | ||||||||||||||||
| Portfolio turnover rate (%) | 16 | ** | 32 | 17 | 15 | 6 | 28 | ** | ||||||||||||||||
a For the period from October 1, 2008 (commencement of operations) to August 31, 2009. b Based on average shares outstanding during the period. c Total return does not reflect the effect of any sales charges. 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 affiliated Underlying Funds' expenses. f The Fund invests in other funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized *** Amount is less than $.005. | ||||||||||||||||||||||||
| Years Ended August 31, | ||||||||||||||||||||||||
| Class C | Six Months Ended 2/28/14 (Unaudited) | 2013 | 2012 | 2011 | 2010 | Period Ended 8/31/09a | ||||||||||||||||||
| Selected Per Share Data | ||||||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.95 | $ | 11.25 | $ | 11.30 | $ | 10.66 | $ | 9.84 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: Net investment incomeb | .06 | .13 | .26 | .26 | .15 | .07 | ||||||||||||||||||
| Net realized and unrealized gain (loss) | .55 | (.22 | ) | .03 | .50 | .84 | .19 | |||||||||||||||||
| Total from investment operations | .61 | (.09 | ) | .29 | .76 | .99 | .26 | |||||||||||||||||
Less distributions from: Net investment income | (.13 | ) | (.19 | ) | (.27 | ) | (.12 | ) | (.13 | ) | (.42 | ) | ||||||||||||
| Net realized gains | (.02 | ) | (.02 | ) | (.07 | ) | — | (.04 | ) | — | ||||||||||||||
| Total distributions | (.15 | ) | (.21 | ) | (.34 | ) | (.12 | ) | (.17 | ) | (.42 | ) | ||||||||||||
| Net asset value, end of period | $ | 11.41 | $ | 10.95 | $ | 11.25 | $ | 11.30 | $ | 10.66 | $ | 9.84 | ||||||||||||
Total Return (%)c,e | 5.54 | ** | (.84 | )d | 2.74 | d | 7.11 | d | 10.18 | d | 3.23 | d** | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data | ||||||||||||||||||||||||
| Net assets, end of period ($ millions) | 47 | 48 | 35 | 23 | 13 | 4 | ||||||||||||||||||
Ratio of expenses before expense reductions (%)f | 1.28 | * | 1.29 | 1.30 | 1.30 | 1.37 | 2.25 | * | ||||||||||||||||
Ratio of expenses after expense reductions (%)f | 1.28 | * | 1.28 | 1.27 | 1.11 | 1.11 | 1.11 | * | ||||||||||||||||
| Ratio of net investment income (%) | 1.07 | * | 1.19 | 2.34 | 2.30 | 1.43 | .87 | * | ||||||||||||||||
| Portfolio turnover rate (%) | 16 | ** | 32 | 17 | 15 | 6 | 28 | ** | ||||||||||||||||
a For the period from October 1, 2008 (commencement of operations) to August 31, 2009. b Based on average shares outstanding during the period. c Total return does not reflect the effect of any sales charges. 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 affiliated 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 | ||||||||||||||||||||||||
| Class R | Six Months Ended 2/28/14 (Unaudited) | Year Ended 8/31/13 | Period Ended 8/31/12a | |||||||||
| Selected Per Share Data | ||||||||||||
| Net asset value, beginning of period | $ | 11.04 | $ | 11.26 | $ | 11.12 | ||||||
Income (loss) from investment operations: Net investment incomeb | .08 | .13 | .02 | |||||||||
| Net realized and unrealized gain (loss) | .55 | (.17 | ) | .12 | ||||||||
| Total from investment operations | .63 | (.04 | ) | .14 | ||||||||
Less distributions from: Net investment income | (.18 | ) | (.16 | ) | — | |||||||
| Net realized gains | (.02 | ) | (.02 | ) | — | |||||||
| Total distributions | (.20 | ) | (.18 | ) | — | |||||||
| Net asset value, end of period | $ | 11.47 | $ | 11.04 | $ | 11.26 | ||||||
Total Return (%)c,d | 5.76 | ** | (.36 | ) | 1.26 | ** | ||||||
| Ratios to Average Net Assets and Supplemental Data | ||||||||||||
| Net assets, end of period ($ thousands) | 687 | 445 | 1 | |||||||||
Ratio of expenses before expense reductions (%)e | .89 | * | .98 | 2.62 | * | |||||||
Ratio of expenses after expense reductions (%)e | .82 | * | .79 | 1.51 | * | |||||||
| Ratio of net investment income (%) | 1.51 | * | 1.19 | .43 | * | |||||||
| Portfolio turnover rate (%) | 16 | ** | 32 | 17 | ** | |||||||
a For the period from May 1, 2012 (commencement of operations of Class R) to August 31, 2012. b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some affiliated Underlying Funds' expenses. e The Fund invests in other funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized | ||||||||||||
| Years Ended August 31, | ||||||||||||||||||||||||
| Class S | Six Months Ended 2/28/14 (Unaudited) | 2013 | 2012 | 2011 | 2010 | Period Ended 8/31/09a | ||||||||||||||||||
| Selected Per Share Data | ||||||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.00 | $ | 11.31 | $ | 11.36 | $ | 10.73 | $ | 9.90 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: Net investment incomeb | .11 | .23 | .36 | .37 | .25 | .15 | ||||||||||||||||||
| Net realized and unrealized gain (loss) | .55 | (.22 | ) | .04 | .49 | .86 | .19 | |||||||||||||||||
| Total from investment operations | .66 | .01 | .40 | .86 | 1.11 | .34 | ||||||||||||||||||
Less distributions from: Net investment income | (.23 | ) | (.30 | ) | (.38 | ) | (.23 | ) | (.24 | ) | (.44 | ) | ||||||||||||
| Net realized gains | (.02 | ) | (.02 | ) | (.07 | ) | — | (.04 | ) | — | ||||||||||||||
| Total distributions | (.25 | ) | (.32 | ) | (.45 | ) | (.23 | ) | (.28 | ) | (.44 | ) | ||||||||||||
| Net asset value, end of period | $ | 11.41 | $ | 11.00 | $ | 11.31 | $ | 11.36 | $ | 10.73 | $ | 9.90 | ||||||||||||
Total Return (%)d | 6.03 | ** | .05 | c | 3.81 | c | 8.07 | c | 11.35 | c | 4.13 | c** | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data | ||||||||||||||||||||||||
| Net assets, end of period ($ millions) | 87 | 102 | 59 | 22 | 12 | 2 | ||||||||||||||||||
Ratio of expenses before expense reductions (%)e | .38 | * | .40 | .36 | .37 | .44 | 1.15 | * | ||||||||||||||||
Ratio of expenses after expense reductions (%)e | .38 | * | .38 | .33 | .11 | .11 | .11 | * | ||||||||||||||||
| Ratio of net investment income (%) | 1.98 | * | 2.02 | 3.30 | 3.30 | 2.43 | 1.87 | * | ||||||||||||||||
| Portfolio turnover rate (%) | 16 | ** | 32 | 17 | 15 | 6 | 28 | ** | ||||||||||||||||
a For the period from October 1, 2008 (commencement of operations) to August 31, 2009. b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some affiliated Underlying Funds' expenses. e The Fund invests in other funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized | ||||||||||||||||||||||||
| Years Ended August 31, | ||||||||||||||||||||||||
| Institutional Class | Six Months Ended 2/28/14 (Unaudited) | 2013 | 2012 | 2011 | 2010 | Period Ended 8/31/09a | ||||||||||||||||||
| Selected Per Share Data | ||||||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.02 | $ | 11.32 | $ | 11.36 | $ | 10.72 | $ | 9.90 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: Net investment incomeb | .12 | .25 | .32 | .37 | .25 | .15 | ||||||||||||||||||
| Net realized and unrealized gain (loss) | .54 | (.21 | ) | .09 | .50 | .85 | .19 | |||||||||||||||||
| Total from investment operations | .66 | .04 | .41 | .87 | 1.10 | .34 | ||||||||||||||||||
Less distributions from: Net investment income | (.25 | ) | (.32 | ) | (.38 | ) | (.23 | ) | (.24 | ) | (.44 | ) | ||||||||||||
| Net realized gains | (.02 | ) | (.02 | ) | (.07 | ) | — | (.04 | ) | — | ||||||||||||||
| Total distributions | (.27 | ) | (.34 | ) | (.45 | ) | (.23 | ) | (.28 | ) | (.44 | ) | ||||||||||||
| Net asset value, end of period | $ | 11.41 | $ | 11.02 | $ | 11.32 | $ | 11.36 | $ | 10.72 | $ | 9.90 | ||||||||||||
Total Return (%)c,d | 6.07 | ** | .28 | 3.90 | 8.17 | 11.25 | 4.13 | ** | ||||||||||||||||
| Ratios to Average Net Assets and Supplemental Data | ||||||||||||||||||||||||
| Net assets, end of period ($ millions) | 11 | 11 | 4 | 1 | 1 | .6 | ||||||||||||||||||
Ratio of expenses before expense reductions (%)e | .23 | * | .24 | .21 | .22 | .26 | 1.11 | * | ||||||||||||||||
Ratio of expenses after expense reductions (%)e | .19 | * | .16 | .19 | .11 | .11 | .11 | * | ||||||||||||||||
| Ratio of net investment income (%) | 2.13 | * | 2.19 | 2.91 | 3.30 | 2.43 | 1.87 | * | ||||||||||||||||
| Portfolio turnover rate (%) | 16 | ** | 32 | 17 | 15 | 6 | 28 | ** | ||||||||||||||||
a For the period from October 1, 2008 (commencement of operations) to August 31, 2009. b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. d Total return would have been lower if the Advisor had not reduced some affiliated Underlying Funds' expenses. e The Fund invests in other funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. * Annualized ** Not annualized | ||||||||||||||||||||||||
A. Organization and Significant Accounting Policies
DWS Select Alternative Allocation Fund (the "Fund") is a diversified series of DWS Market Trust (the "Trust"), which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Massachusetts business trust. The Fund mainly invests in other affiliated DWS funds (i.e. mutual funds, exchange-traded funds and other pooled investment vehicles managed by Deutsche Investment Management Americas Inc. or one of its affiliates, together the "Underlying DWS Funds") and non-affiliated exchange-traded funds ("Non-affiliated ETFs"). Non-affiliated 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 Funds' financial statements and are available upon request.
The Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are offered to investors subject to an initial sales charge. Class 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 R shares are only available to participants in certain retirement plans and are offered to investors without an initial sales charge. Class S shares are not subject to initial or contingent deferred sales charges and are only available to a limited group of investors. Institutional Class shares are generally available only to qualified institutions, are not subject to initial or contingent deferred sales charges and generally have lower ongoing expenses than other classes.
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 the Fund have equal rights with respect to voting subject to class-specific arrangements.
The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
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 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 level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
Investments in Mutual Funds are valued at the net asset value per share of each class of the Mutual Fund and are categorized as Level 1.
ETFs are valued at the most recent sale price or official closing price reported on the exchange (U.S. 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 the Fund's Investment Portfolio.
Federal Income Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders.
The Fund has reviewed the tax positions for the open tax years as of August 31, 2013 and has determined that no provision for income tax and/or uncertain tax provisions is required in the Fund's financial statements. The Fund's 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 of the 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 the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. The fund may also make additional distributions for tax purposes if necessary.
The timing and characterization of certain income and capital gain 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 certain securities sold at a loss and capital gain distributions from Underlying Funds. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Expenses. Expenses of the Trust arising in connection with a specific fund are allocated to that fund. Other Trust expenses which cannot be directly attributed to a fund are apportioned among the funds in the Trust based upon the relative net assets or other appropriate measures.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment 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. Realized gains and losses from investment transactions are recorded on an identified cost basis.
B. Purchases and Sales of Underlying Funds
During the six months ended February 28, 2014, purchases and sales of affiliated Underlying Funds (excluding money market funds) aggregated $50,987,641 and $104,391,147, respectively. Purchases and sales of non-affiliated Underlying Funds (excluding money market funds) aggregated $46,083,971 and $74,090,438, respectively.
C. 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 the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund or delegates such responsibilities to the Fund's subadvisor. The Advisor has agreed not to be paid a management fee directly from the Fund for performing its services under the Investment Management Agreement. However, the Advisor will receive management fees from managing the Underlying DWS Funds in which the Fund invests.
The Fund does not invest in Underlying DWS Funds for the purpose of exercising management or control; however, investments may represent 5% or more of an Underlying DWS Funds' outstanding shares. At February 28, 2014, the Fund held greater than 5% of the following Underlying DWS Funds' outstanding shares: approximately 30% of DWS Global Inflation Fund, 29% of DWS Diversified Market Neutral Fund, 26% of DWS Enhanced Emerging Markets Fixed Income Fund and 10% of DWS Enhanced Commodity Strategy Fund.
For the period from September 1, 2013 through November 30, 2013, the Advisor had contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and indirect expenses of Underlying Funds) of each class as follows:
| Class A | .54% |
| Class C | 1.29% |
| Class R | .79% |
| Class S | .39% |
| Institutional Class | .29% |
In addition, for the period from September 1, 2013 through November 30, 2013, the Advisor has voluntarily agreed to waive its fees and/or reimburse certain operating expenses of Institutional Class shares to the extent necessary to maintain the operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and indirect expenses of Underlying Funds) at 0.16%. This voluntary waiver or reimbursement may be terminated at any time at the option of the Advisor.
For the period from December 1, 2013 through September 30, 2014, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and indirect expenses of Underlying Funds) of each class as follows:
| Class A | .60% |
| Class C | 1.35% |
| Class R | .85% |
| Class S | .45% |
| Institutional Class | .35% |
The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying DWS Funds and Non-affiliated ETFs in which it is invested.
For the six months ended February 28, 2014, fees waived and/or expenses reimbursed for each class are as follows:
| Class R | $ | 165 | ||
| Institutional Class | 1,784 | |||
| $ | 1,949 |
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's average daily net assets, computed and accrued daily and payable monthly. For the six months ended February 28, 2014, the Administration Fee was $308,813, of which $45,107 is unpaid.
Service Provider Fees. DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent of the Fund. 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 serving fee it receives from the Fund. For the six months ended February 28, 2014, the amounts charged to the Fund by DISC were as follows:
| Services to Shareholders | Total Aggregated | Unpaid at February 28, 2014 | ||||||
| Class A | $ | 8,093 | $ | 4,082 | ||||
| Class C | 4,066 | 1,935 | ||||||
| Class R | 103 | 70 | ||||||
| Class S | 11,336 | 5,302 | ||||||
| Institutional Class | 149 | 38 | ||||||
| $ | 23,747 | $ | 11,427 | |||||
Distribution and Service Fees. Under the Fund's Class C and Class R 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 Class C shares and 0.25% of average daily net assets of Class R shares. In accordance with the Fund's Underwriting and Distribution Service Agreement, DIDI enters into related selling group agreements with various firms at various rates for sales of Class C and R shares. For the six months ended February 28, 2014, the Distribution Fee was as follows:
| Distribution Fee | Total Aggregated | Unpaid at February 28, 2014 | ||||||
| Class C | $ | 180,142 | $ | 27,211 | ||||
| Class R | 649 | 122 | ||||||
| $ | 180,791 | $ | 27,333 | |||||
In addition, DIDI provides information and administrative services for a fee ("Service Fee") to Class A, Class C and Class R 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 six months ended February 28, 2014, the Service Fee was as follows:
| Service Fee | Total Aggregated | Unpaid at February 28, 2014 | Annualized Effective Rate | |||||||||
| Class A | $ | 568,228 | $ | 178,181 | .25 | % | ||||||
| Class C | 60,047 | 19,607 | .25 | % | ||||||||
| Class R | 649 | 246 | .25 | % | ||||||||
| $ | 628,924 | $ | 198,034 | |||||||||
Underwriting Agreement and Contingent Deferred Sales Charge. DIDI is the principal underwriter for the Fund. Underwriting commissions paid in connection with the distribution of Class A shares for the six months ended February 28, 2014 aggregated $4,505.
In addition, DIDI receives any contingent deferred sales charge ("CDSC") from 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 1% of the value of the shares redeemed for Class C. For the six months ended February 28, 2014, the CDSC for the Fund's Class C shares aggregated $6,911. A deferred sales charge of up to 0.75% is assessed on certain redemptions of Class A shares. For the six months ended February 28, 2014, DIDI received $4,177 for Class A shares.
Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Fund. For the six months ended February 28, 2014, the amount charged to the Fund by DIMA included in the Statement of Operations under "reports to shareholders" aggregated $10,297, of which $199 was unpaid.
Trustees' Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and Vice Chairperson and to each committee Chairperson.
Affiliated Cash Management Vehicles. The Fund may invest uninvested cash balances in Central Cash Management Fund and DWS Variable NAV Money Fund, affiliated money market funds which are managed by the Advisor. Each affiliated money market fund seeks to provide a high level of current income consistent with liquidity and the preservation of capital. Each affiliated money market fund is managed in accordance with Rule 2a-7 under the Investment Company Act of 1940, which governs the quality, maturity, diversity and liquidity of instruments in which a money market fund may invest. Central Cash Management Fund seeks to maintain a stable net asset value, and DWS Variable NAV Money Fund maintains a floating net asset value. The Fund indirectly bears its proportionate share of the expenses of each affiliated money market fund in which it invests. Central Cash Management Fund does not pay the Advisor an investment management fee.
D. Share Transactions
The following table summarizes share and dollar activity in the Fund:
Six Months Ended February 28, 2014 | Year Ended August 31, 2013 | |||||||||||||||
| Shares | Dollars | Shares | Dollars | |||||||||||||
| Shares sold | ||||||||||||||||
| Class A | 2,917,076 | $ | 32,715,123 | 15,704,258 | $ | 178,839,683 | ||||||||||
| Class C | 358,362 | 4,000,154 | 1,759,616 | 19,985,090 | ||||||||||||
| Class R | 24,411 | 275,154 | 43,044 | 488,625 | ||||||||||||
| Class S | 1,317,205 | 14,779,233 | 7,643,646 | 87,015,154 | ||||||||||||
| Institutional Class | 128,065 | 1,436,862 | 785,866 | 8,971,523 | ||||||||||||
| $ | 53,206,526 | $ | 295,300,075 | |||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||
| Class A | 826,561 | $ | 9,215,517 | 1,105,568 | $ | 12,415,525 | ||||||||||
| Class C | 55,013 | 613,875 | 67,160 | 754,208 | ||||||||||||
| Class R | 893 | 10,010 | 89 | 1,004 | ||||||||||||
| Class S | 177,578 | 1,978,086 | 190,444 | 2,136,787 | ||||||||||||
| Institutional Class | 15,184 | 169,137 | 19,142 | 214,770 | ||||||||||||
| $ | 11,986,625 | $ | 15,522,294 | |||||||||||||
| Shares redeemed | ||||||||||||||||
| Class A | (9,534,406 | ) | $ | (106,912,798 | ) | (10,880,238 | ) | $ | (123,180,498 | ) | ||||||
| Class C | (674,946 | ) | (7,547,434 | ) | (561,768 | ) | (6,357,183 | ) | ||||||||
| Class R | (5,734 | ) | (63,922 | ) | (2,885 | ) | (32,506 | ) | ||||||||
| Class S | (3,224,137 | ) | (36,126,832 | ) | (3,719,246 | ) | (42,170,157 | ) | ||||||||
| Institutional Class | (230,162 | ) | (2,592,723 | ) | (143,039 | ) | (1,616,774 | ) | ||||||||
| $ | (153,243,709 | ) | $ | (173,357,118 | ) | |||||||||||
| Net increase (decrease) | ||||||||||||||||
| Class A | (5,790,769 | ) | $ | (64,982,158 | ) | 5,929,588 | $ | 68,074,710 | ||||||||
| Class C | (261,571 | ) | (2,933,405 | ) | 1,265,008 | 14,382,115 | ||||||||||
| Class R | 19,570 | 221,242 | 40,248 | 457,123 | ||||||||||||
| Class S | (1,729,354 | ) | (19,369,513 | ) | 4,114,844 | 46,981,784 | ||||||||||
| Institutional Class | (86,913 | ) | (986,724 | ) | 661,969 | 7,569,519 | ||||||||||
| $ | (88,050,558 | ) | $ | 137,465,251 | ||||||||||||
E. Transactions with Affiliates
The Fund mainly invests in Underlying DWS Funds and Non-affiliated ETFs. The Underlying DWS Funds in which the Fund invests are considered to be affiliated investments. A summary of the Fund's transactions with affiliated Underlying DWS Funds during the six months ended February 28, 2014 is as follows:
| Affiliate | Value ($) at 8/31/2013 | Purchases Cost ($) | Sales Cost ($) | Realized Gain/ (Loss) ($) | Income Distributions ($) | Capital Gain Distributions ($) | Value ($) at 2/28/2014 | |||||||||||||||||||||
| DWS Diversified Market Neutral Fund | 101,584,886 | 10,731,911 | 11,324,000 | (400,584 | ) | — | 10,635,910 | 91,628,574 | ||||||||||||||||||||
| DWS Enhanced Commodity Strategy Fund | 92,122,806 | 274,000 | 18,729,000 | (7,146,791 | ) | — | — | 75,123,113 | ||||||||||||||||||||
| DWS Enhanced Emerging Markets Fixed Income Fund | 85,329,526 | 12,013,282 | 24,454,100 | (1,530,508 | ) | 1,423,282 | — | 75,232,436 | ||||||||||||||||||||
| DWS Floating Rate Fund | 101,135,330 | 5,739,624 | 9,412,000 | (44,996 | ) | 1,996,624 | — | 97,987,461 | ||||||||||||||||||||
| DWS Global Inflation Fund | 58,151,711 | 606,227 | 25,244,000 | (2,031,332 | ) | 365,227 | — | 33,865,024 | ||||||||||||||||||||
| DWS RREEF Global Infrastructure Fund | 88,883,772 | 10,988,408 | 12,086,000 | 353,407 | 741,328 | 2,292,081 | 98,847,849 | |||||||||||||||||||||
| DWS RREEF Global Real Estate Securities Fund | 16,174,113 | 4,231,987 | 2,534,000 | 87,593 | 669,987 | — | 18,875,950 | |||||||||||||||||||||
| PowerShares DB U.S. Dollar Index Bullish Fund | 6,737,172 | 6,402,202 | 608,047 | (35,345 | ) | — | — | 12,074,120 | ||||||||||||||||||||
| Central Cash Management Fund | 1,835,149 | 89,283,506 | 91,118,655 | — | 771 | — | — | |||||||||||||||||||||
| Total | 551,954,465 | 140,271,147 | 195,509,802 | (10,748,556 | ) | 5,197,219 | 12,927,991 | 503,634,527 | ||||||||||||||||||||
As an investor of the Fund, 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 table is intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In addition to the ongoing expenses which the Fund bears directly, the Fund's shareholders indirectly bear the expense of the Underlying Funds in which the Fund invests. These expenses are not included in the Fund's annualized expense ratios used to calculate the expense estimate in the table. In the most recent six-month period, the Fund limited the ongoing expenses the Fund bears directly; had it not done so, expenses would have been higher. The examples in the table are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (September 1, 2013 to February 28, 2014).
The table illustrates 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. Subject to certain exceptions, an account maintenance fee of $20.00 assessed once per calendar year for Classes A, C and S shares may apply for accounts with balances less than $10,000. This fee is not included in these tables. If it was, the estimate of expenses paid for Classes A, C and S shares during the period would be higher, and account value during the period would be lower, by this amount.
Expenses and Value of a $1,000 Investment for the six months ended February 28, 2014 (Unaudited) | ||||||||||||||||||||
| Actual Fund Return | Class A | Class C | Class R | Class S | Institutional Class | |||||||||||||||
| Beginning Account Value 9/1/13 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
| Ending Account Value 2/28/14 | $ | 1,058.70 | $ | 1,055.40 | $ | 1,057.60 | $ | 1,060.30 | $ | 1,060.70 | ||||||||||
| Expenses Paid per $1,000* | $ | 2.71 | $ | 6.52 | $ | 4.18 | $ | 1.94 | $ | .97 | ||||||||||
| Hypothetical 5% Fund Return | Class A | Class C | Class R | Class S | Institutional Class | |||||||||||||||
| Beginning Account Value 9/1/13 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||
| Ending Account Value 2/28/14 | $ | 1,022.17 | $ | 1,018.45 | $ | 1,020.73 | $ | 1,022.91 | $ | 1,023.85 | ||||||||||
| Expenses Paid per $1,000* | $ | 2.66 | $ | 6.41 | $ | 4.11 | $ | 1.91 | $ | .95 | ||||||||||
* Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365.
| Annualized Expense Ratios** | Class A | Class C | Class R | Class S | Institutional Class |
| DWS Select Alternative Allocation Fund | .53% | 1.28% | .82% | .38% | .19% |
** 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. These ratios do not include these indirect fees and expenses.
For more information, please refer to the Fund's prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to http://apps.finra.org/fundanalyzer/1/fa.aspx.
The Board of Trustees approved the renewal of DWS Select Alternative Allocation Fund's investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DIMA") in September 2013.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
— In September 2013, all but one of the Fund's Trustees were independent of DIMA and its affiliates.
— The Trustees met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board's Contract Committee, in coordination with the Board's Fixed Income and Asset Allocation Oversight Committee, reviewed comprehensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund's performance, fees and expenses, and profitability compiled by a fee consultant retained by the Fund's Independent Trustees (the "Fee Consultant"). The Board also received extensive information throughout the year regarding performance of the Fund.
— The Independent Trustees regularly meet privately with their independent counsel to discuss contract review and other matters. In addition, the Independent Trustees were also advised by the Fee Consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations.
— In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements.
— Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee's findings and recommendations.
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA has managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the Fund. DIMA is part of Deutsche Bank AG, a major global banking institution that is engaged in a wide range of financial services. The Board believes that there are advantages to being part of a global asset management business that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts with research capabilities in many countries throughout the world.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund's performance. In many cases, this led to a negotiation with DIMA of lower expense caps as part of the 2012 and 2013 contract review processes than had previously been in place. As part of these negotiations, the Board indicated that it would consider relaxing these new lower caps in future years following sustained improvements in performance, among other considerations.
In June 2012, Deutsche Bank AG ("DB"), DIMA's parent company, announced that DB would combine its Asset Management (of which DIMA was a part) and Wealth Management divisions. DB has advised the Independent Trustees that the U.S. asset management business is a critical and integral part of DB, and that it has, and will continue to, reinvest a significant portion of the substantial savings it expects to realize by combining its Asset Management and Wealth Management divisions into the new Asset and Wealth Management ("AWM") division, including ongoing enhancements to its investment capabilities. DB also has confirmed its commitment to maintaining strong legal and compliance groups within the AWM division.
While shareholders may focus primarily on fund performance and fees, the Fund's Board considers these and many other factors, including the quality and integrity of DIMA's personnel and such other issues as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel, the resources made available to such personnel, the ability of DIMA to attract and retain high-quality personnel, and the organizational depth and stability of DIMA. The Board reviewed the Fund's performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including market indices and a peer universe compiled by the Fee Consultant using information supplied by Morningstar Direct ("Morningstar"), an independent fund data service. The Board also noted that it has put into place a process of identifying "Focus Funds" (e.g., funds performing poorly relative to their benchmark or a peer universe compiled by an independent fund data service), and receives more frequent reporting and information from DIMA regarding such funds, along with DIMA's remedial plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that for the one- and three-year periods ended December 31, 2012, the Fund's performance (Class A shares) was in the 1st quartile of the applicable Morningstar universe (the 1st quartile being the best performers and the 4th quartile being the worst performers). The Board also observed that the Fund has underperformed its benchmark in the one- and three-year periods ended December 31, 2012.
Fees and Expenses. The Board considered the Fund's investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Lipper Inc. ("Lipper") and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Trustees noted that the Fund does not pay any Fund-level investment advisory fees, but does bear an administrative fee. As a result of the administrative fee, the total management fee rates paid by the Fund were lower than the median (1st quartile) of the applicable Lipper peer group (based on Lipper data provided as of December 31, 2012). The Board noted that the Fund's Class A shares total (net) operating expenses (excluding 12b-1 fees) were expected to be lower than the median (2nd quartile) of the applicable Lipper expense universe (based on Lipper data provided as of December 31, 2012, and analyzing Lipper expense universe Class A (net) expenses less any applicable 12b-1 fees) ("Lipper Universe Expenses"). The Board also reviewed data comparing each share class's total (net) operating expenses to the applicable Lipper Universe Expenses. The Board considered the Fund's management fee rate as compared to fees charged by DIMA to comparable funds and considered differences between the Fund and the comparable funds. The Board also considered how the Fund's total (net) operating expenses compared to the total (net) operating expenses of a more customized peer group selected by Lipper (based on such factors as asset size). The Board also noted that the expense limitations agreed to by DIMA helped to ensure that the Fund's total (net) operating expenses would remain competitive.
The information considered by the Board as part of its review of management fees included information regarding fees charged by DIMA and its affiliates to similar institutional accounts and to similar funds offered primarily to European investors ("DWS Europe funds"), in each case as applicable. The Board observed that advisory fee rates for institutional accounts generally were lower than the management fees charged by similarly managed DWS U.S. mutual funds ("DWS Funds"), but also took note of the differences in services provided to DWS Funds as compared to institutional accounts. In the case of DWS Europe funds, the Board observed that fee rates for DWS Europe funds generally were higher than for similarly managed DWS Funds, but noted that differences in the types of services provided to DWS Funds relative to DWS Europe funds made it difficult to compare such fees.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA from advising the DWS Funds along with the estimated costs and pre-tax profits realized by DIMA from advising the DWS Funds. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality. The Board did not receive profitability information with respect to the Fund (which, as noted above, does not pay any investment advisory fees), but did receive such information with respect to the funds in which the Fund invests. The Board also reviewed information regarding the profitability of certain similar investment management firms. The Board noted that while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates' overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of many comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board concluded that the Fund's fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities, along with the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board concluded that management fees were reasonable in light of these fallout benefits.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of both DIMA's chief compliance officer and the Fund's chief compliance officer; (ii) the large number of DIMA compliance personnel; and (iii) the substantial commitment of resources by DIMA and its affiliates to compliance matters.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and their independent counsel present. It is possible that individual Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
| 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 Shareholder Service representative by calling: (800) 728-3337 | |
| Web Site | dws-investments.com View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates by e-mail, and change your address, 24 hours a day. Obtain prospectuses and applications, blank forms, interactive worksheets, news about DWS funds, retirement planning information, and more. | |
| Written Correspondence | Deutsche Asset & Wealth Management PO Box 219151 Kansas 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 — dws-investments.com (click on "proxy voting"at the bottom of the page) — or on the SEC's Web site — sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at (800) 728-3337. | |
| Portfolio Holdings | Following the fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. This form will be available on the SEC's Web site at 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. The fund's portfolio holdings are also posted on dws-investments.com from time to time. Please see the fund's current prospectus for more information. | |
| Principal Underwriter | If you have questions, comments or complaints, contact: DWS Investments Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148 | |
| Investment Management | Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is part of Deutsche Asset & Wealth Management, is the investment advisor for the fund. 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 engaged in a wide variety of financial services, including investment management, retail, private and commercial banking, investment banking and insurance. Deutsche Asset & Wealth Management is the retail brand name in the U.S. for the wealth management and asset management activities of Deutsche Bank AG and DIMA. Deutsche Asset & Wealth Management is committed to delivering the investing expertise, insight and resources of this global investment platform to American investors. | |
| Class A | Class C | Class S | Institutional Class | ||
| Nasdaq Symbol | SELAX | SELEX | SELSX | SELIX | |
| CUSIP Number | 233376 722 | 233376 714 | 233376 698 | 233376 680 | |
| Fund Number | 488 | 788 | 2088 | 1488 |
| For shareholders of Class R | ||
| Automated Information Line | DWS Investments Flex Plan Access (800) 728-3337 24-hour access to your retirement plan account. | |
| Web Site | dws-investments.com Click "Retirement Plans" to reallocate assets, process transactions, review your funds, and subscribe to fund updates by e-mail through our secure online account access. Obtain prospectuses and applications, blank forms, interactive worksheets, news about DWS funds, retirement planning information, and more. | |
| For More Information | (800) 728-3337 To speak with a service representative. | |
| Written Correspondence | DWS Investments Service Company 222 South Riverside Plaza Chicago, IL 60606-5806 | |
| Nasdaq Symbol | SELRX | |
| CUSIP Number | 233376 664 | |
| Fund Number | 1588 | |
| FACTS | What Does Deutsche Asset & Wealth Management Do With Your Personal Information? | ||
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do. | ||
| What? | The types of personal information we collect and share can include: — Social Security number — Account balances — Purchase and transaction history — Bank account information — Contact information such as mailing address, e-mail address and telephone number | ||
| How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information, the reasons Deutsche Asset & Wealth Management chooses to share and whether you can limit this sharing. | ||
| Reasons we can share your personal information | Does Deutsche Asset & Wealth Management share? | Can you limit this sharing? | |
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders or legal investigations | Yes | No | |
For our marketing purposes — to offer our products and services to you | Yes | No | |
| For joint marketing with other financial companies | No | We do not share | |
For our affiliates' everyday business purposes — information about your transactions and experiences | No | We do not share | |
For our affiliates' everyday business purposes — information about your creditworthiness | No | We do not share | |
| For non-affiliates to market to you | No | We do not share | |
| Questions? | Call (800) 728-3337 or e-mail us at service@dws.com | ||
| Who we are | |||
| Who is providing this notice? | DWS Investments Distributors, Inc.; Deutsche Investment Management Americas Inc.; DeAM Investor Services, Inc.; DWS Trust Company; the DWS Funds | ||
| What we do | |||
| How does Deutsche Asset & Wealth Management protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. | ||
| How does Deutsche Asset & Wealth Management collect my personal information? | We collect your personal information, for example. When you: — open an account — give us your contact information — provide bank account information for ACH or wire transactions — tell us where to send money — seek advice about your investments | ||
| Why can't I limit all sharing? | Federal law gives you the right to limit only — sharing for affiliates' everyday business purposes — information about your creditworthiness — affiliates from using your information to market to you — sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. | ||
| Definitions | |||
| Affiliates | Companies related by common ownership or control. They can be financial or non-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank ("DB") name, such as DB AG Frankfurt and DB Alex Brown. | ||
| Non-affiliates | Companies not related by common ownership or control. They can be financial and non-financial companies. Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud. | ||
| Joint marketing | A formal agreement between non-affiliated financial companies that together market financial products or services to you. Deutsche Asset & Wealth Management does not jointly market. | ||
| Rev. 09/2013 | |||
| ITEM 2. | CODE OF ETHICS | |
| Not applicable. | ||
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT | |
| Not applicable | ||
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | |
| Not applicable | ||
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | |
| Not applicable | ||
| ITEM 6. | SCHEDULE OF INVESTMENTS | |
| Not applicable | ||
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
| Not applicable | ||
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
| Not applicable | ||
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
| Not applicable | ||
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
| 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 Kenneth C. Froewiss, Independent Chairman, DWS Mutual Funds, P.O. Box 78, Short Hills, NJ 07078. | ||
| ITEM 11. | CONTROLS AND PROCEDURES | |
| (a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. | |
| (b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the 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. | |
| ITEM 12. | EXHIBITS | |
| (a)(1) | Not applicable | |
| (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. | |
| (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. | |
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 Select Alternative Allocation Fund, a series of DWS Market Trust |
| By: | /s/Brian E. Binder Brian E. Binder President |
| Date: | April 29, 2014 |
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/Brian E. Binder Brian E. Binder President |
| Date: | April 29, 2014 |
| By: | /s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer |
| Date: | April 29, 2014 |