Filed electronically with the Securities and Exchange
Commission on April 29, 2008
File No. 2-78122
File No. 811-3495
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 45
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 41
DWS MONEY MARKET TRUST
(Exact name of Registrant as Specified in Charter)
345 Park Avenue, New York, NY 10154
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (617) 295-1000
Caroline Pearson
Deutsche Investment Management Americas Inc.
Two International Place, Boston MA 02110
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box):
/_/ Immediately upon filing pursuant to paragraph (b)
/X/ On May 1, 2008 pursuant to paragraph (b)
/_/ 60 days after filing pursuant to paragraph (a)(1)
/_/ On _____________ pursuant to paragraph (a)(1)
/_/ 75 days after filing pursuant to paragraph (a)(2)
/_/ On ____________ pursuant to paragraph (a)(2) of Rule 485
If appropriate, check the following box:
/_/ This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
EXPLANATORY NOTE
This post-effective amendment contains the prospectuses and Statement of
Additional Information relating to the following series of the registrant:
o DWS Money Market Series: Premium Class S Shares, Prime Reserve Class S
Shares, Managed Shares and Institutional Shares
This post-effective amendment is not intended to update or amend any other
prospectuses or Statement of Additional Information of the registrant's other
series or classes.
1
MAY 1, 2008
PROSPECTUS
INSTITUTIONAL SHARES
DWS MONEY MARKET SERIES
As with all mutual funds, the Securities and Exchange Commission (SEC) does not
approve or disapprove these shares or determine whether the information in this
prospectus is truthful or complete. It is a criminal offense for anyone to
inform you otherwise.
ONE GLOBAL FORCE. ONE FOCUS. YOU. [DWS SCUDDER Logo]
Deutsche Bank Group
CONTENTS
HOW THE FUND WORKS
4 The Fund's Main Investment
Strategy
6 The Main Risks of Investing in
the Fund
9 The Fund's Performance
History
10 How Much Investors Pay
12 Other Policies and Risks
12 Who Manages and Oversees
the Fund
15 Financial Highlights
|
HOW TO INVEST IN THE FUND
17 How to Buy Shares
18 How to Sell Shares
19 Policies You Should Know
About
31 Understanding Distributions
and Taxes
33 Appendix
|
HOW THE FUND WORKS
On the next few pages, you'll find information about the fund's investment
objective, the main strategies it uses to pursue that objective and the main
risks that could affect performance.
Whether you are considering investing in the fund or are already a shareholder,
you'll want to LOOK THIS INFORMATION OVER CAREFULLY. You may want to keep it on
hand for reference as well.
Remember that mutual funds are investments, not bank deposits. They're not
insured or guaranteed by the FDIC or any other government agency. Their share
prices will go up and down, and you could lose money by investing in them.
You can find all Institutional DWS money fund prospectuses on the Internet at
WWW.MONEYFUNDS.DEAM-US.DB.COM (the Web site does not form a part of this
prospectus).
Institutional Shares
ticker symbol ICAXX
fund number 2403
DWS MONEY MARKET SERIES
|
THE FUND'S MAIN INVESTMENT STRATEGY
The fund is a feeder fund that invests substantially all of its
assets in a "master portfolio," the Cash Management Portfolio (the
"Portfolio"), which will invest directly in securities and other
instruments. References to the fund may refer to actions undertaken
by the Portfolio.
The fund's goal is to seek a high level of current income
consistent with liquidity and the preservation of capital. The
fund, through the Portfolio, seeks to achieve its goal by investing
in high quality short-term money market instruments.
While the fund's Advisor gives priority to earning income and
maintaining the value of the fund's principal at $1.00 per share,
all money market instruments, including US government obligations,
can change in value when interest rates change or an issuer's
creditworthiness changes.
The fund maintains a dollar-weighted average maturity of 90 days or
less. The fund is managed in accordance with Rule
2a-7 under the Investment Company Act of 1940, as amended.
The fund follows policies designed to maintain a stable share
price:
- Fund securities are valued in US dollars and have remaining
maturities of 397 days (about 13 months) or less at the time of
purchase. The fund may also invest in securities that have
features that have the effect of reducing their maturities to
397 days or less at the time of purchase
- The fund buys US government debt obligations, money market
instruments and other debt obligations that at the time of
purchase:
- have received one of the two highest short-term ratings from
two nationally recognized statistical rating organizations
(NRSROs) or one NRSRO if that NRSRO is the only NRSRO that
rates such obligations;
4 | DWS Money Market Series
- are unrated, but are deemed by the Advisor to be of comparable
quality to one of the two highest short-term ratings; or
- have no short-term rating, but are rated in one of the top
three highest long-term rating categories by a NRSRO or are
deemed by the Advisor to be of comparable quality.
Principal investments
The fund invests in the following investments through the
Portfolio.
The fund may invest in high quality, short-term, US dollar
denominated money market instruments paying a fixed, variable or
floating interest rate. These include:
- Debt obligations issued by US and foreign banks, financial
institutions, corporations or other entities, including
certificates of deposit, euro-time deposits, commercial paper
(including asset-backed commercial paper), notes, funding
agreements and US government securities. Securities that do not
satisfy the maturity restrictions for a money market fund may be
specifically structured so that they are eligible investments
for money market funds. For example, some securities have
features which have the effect of shortening the security's
maturity.
- US government securities that are issued or guaranteed by the US
Treasury, or by agencies or instrumentalities of the US
government.
- Repurchase agreements, which are agreements to buy securities at
one price, with a simultaneous agreement to sell back the
securities at a future date at an agreed-upon price.
- Asset-backed securities, which are generally participations in a
pool of assets whose payment is derived from the payments
generated by the underlying assets. Payments on the asset-backed
security generally consist of interest and/
or principal.
Under normal market conditions the fund will invest more than 25%
of its total assets in the obligations of banks and other financial
institutions.
DWS Money Market Series | 5
The fund may invest up to 10% of its total assets in other money
market mutual funds in accordance with applicable regulations.
Working in consultation with the portfolio managers, a credit team
screens potential securities and develops a list of those that the
fund may buy. The portfolio managers, looking for attractive yield
and weighing considerations such as credit quality, economic
outlooks and possible interest rate movements, then decide which
securities on this list to buy. The portfolio managers may adjust
the fund's exposure to interest rate risk, typically seeking to
take advantage of possible rises in interest rates and to preserve
yield when interest rates appear likely to fall.
THE MAIN RISKS OF INVESTING IN THE FUND
There are several risk factors that could reduce the yield you get
from the fund or cause the fund's performance to trail that of
other investments.
The fund is exposed to the risk factors below even though the
Portfolio, not the fund, invests directly in the individual
securities.
INTEREST RATE RISK. Money market instruments, like all debt
securities, face the risk that the securities will decline in value
because of changes in interest rates. Generally, investments
subject to interest rate risk will decrease in value when interest
rates rise and increase in value when interest rates decline. To
minimize such price fluctuations, the fund limits the
dollar-weighted average maturity of the securities held by the fund
to 90 days or less. Generally, the price of short-term investments
fluctuates less than longer-term investments. Income earned on
floating or variable rate securities may vary as interest rates
decrease or increase.
CREDIT RISK. A money market instrument's credit quality depends on
the issuer's ability to pay interest on the security and repay the
debt; the lower the credit rating, the greater the risk that the
security's issuer will default, or fail to meet its payment
obligations. The credit risk of a security may also depend on the
credit quality of any bank or financial institution that provides
credit enhancement for it. To minimize credit risk, the fund only
buys high quality securities. Also, the fund only buys securities
with remaining maturities of 397 days (approximately 13 months) or
less. This reduces the risk that
6 | DWS Money Market Series
the issuer's creditworthiness will change, or that the issuer will
default on the principal and interest payments of the obligation.
Additionally, some securities issued by US government agencies or
instrumentalities are supported only by the credit of that agency
or instrumentality. There is no guarantee that the US government
will provide support to such agencies or instrumentalities and such
securities may involve risk of loss of principal and interest.
Securities that rely on third party guarantors to raise their
credit quality could fall in price or go into default if the
financial condition of the guarantor deteriorates.
MARKET RISK. Although individual securities may outperform the
market, the entire market may decline as a result of rising
interest rates, regulatory developments or deteriorating economic
conditions.
SECURITY SELECTION RISK. While the fund invests in short-term
securities, which by their nature are relatively stable
investments, the risk remains that the securities in which the fund
invests will not perform as expected. This could cause the fund's
returns to lag behind those of similar money market mutual funds.
REPURCHASE AGREEMENT RISK. A repurchase agreement exposes the fund
to the risk that the party that sells the securities may default on
its obligation to repurchase them. In this circumstance, the fund
can lose money because:
- it cannot sell the securities at the agreed-upon time and price;
or
- the securities lose value before they can be sold.
The fund seeks to reduce this risk by monitoring the
creditworthiness of the sellers with whom it enters into repurchase
agreements. The fund also monitors the value of the securities to
ensure that they are at least equal to the total amount of the
repurchase obligations, including interest and accrued interest.
CONCENTRATION RISK. Because the fund will invest more than 25% of
its total assets in the obligations of banks and other financial
institutions, it may be vulnerable to setbacks in that industry.
Banks and other financial institutions are highly dependent on
short-term interest rates and can be adversely affected by
downturns in the US and foreign economies or changes in banking
regulations.
DWS Money Market Series | 7
PREPAYMENT RISK. A bond issuer, such as an issuer of asset-backed
securities, may retain the right to pay off a high yielding bond
before it comes due. In that event, the fund may have to reinvest
the proceeds at lower interest rates. Thus, prepayment may reduce
the fund's income. It may also create a capital gains tax
liability, because bond issuers usually pay a premium for the right
to pay off bonds early.
FOREIGN INVESTMENT RISK. The fund may invest in money market
instruments of foreign issuers that are denominated in US dollars.
Foreign investments involve certain special risks, such as
unfavorable political and legal developments, limited financial
information, regulatory risk and economic and financial
instability.
An investment in the fund is not insured or guaranteed by the FDIC
or any other government agency. Although the fund seeks to preserve
the value of your investment at $1.00 per share, this share price
isn't guaranteed and you could lose money by investing in the fund.
8 | DWS Money Market Series
THE FUND'S PERFORMANCE HISTORY
While a fund's past performance isn't necessarily a sign of how it will do in
the future, it can be valuable for an investor to know.
The bar chart shows how the performance of the fund has varied from year to
year, which may give some idea of risk. The table shows how the fund's returns
over different periods average out. The "total return" of a fund is the change
in the value of an investment in the fund over a given period. Average annual
returns are calculated by averaging the year-by-year returns of the fund over a
given period. All figures include the effects of the fund's expenses and assume
reinvestment of dividends and distributions. As always, past performance is no
guarantee of future results.
The 7-DAY YIELD, which is often referred to as the "current yield," is the
income generated by the fund over a seven-day period. This amount is then
annualized, which means that we assume the fund generates the same income every
week for a year. To learn the current yield, investors may call (800) 730-1313.
Effective July 30, 2007, some of the fund's investment strategies changed. The
fund's past performance would have been different if the fund was managed using
the current strategies.
DWS Money Market Series
ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - Institutional Shares
[GRAPHIC APPEARS HERE]
5.52 5.26 6.52 4.14 1.74 1.09 1.30 3.19 5.05 5.34
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
|
2008 TOTAL RETURN AS OF MARCH 31: 0.98%
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 1.68%, Q4 2000 WORST QUARTER: 0.24%, Q3 2003
|
AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007
1 YEAR 5 YEARS 10 YEARS
Institutional Shares 5.34 3.18 3.90
|
Total returns would have been lower if operating expenses hadn't been
reduced.
DWS Money Market Series | 9
HOW MUCH INVESTORS PAY
The table below describes the fees and expenses that you may pay if you buy and
hold fund shares. This information doesn't include any fees that may be charged
by your financial advisor.
INSTITUTIONAL
FEE TABLE SHARES
SHAREHOLDER FEES, paid directly from
your investment None
______________________________________
ANNUAL OPERATING EXPENSES, deducted
from fund assets
______________________________________ _____
Management Fee1 0.13%
Distribution/Service (12b-1) Fee None
Other Expenses2 0.14
TOTAL ANNUAL OPERATING EXPENSES3 0.27
Less Fee Waiver/Expense
Reimbursement4,5 0.12
NET ANNUAL OPERATING EXPENSES6 0.15
|
1 Effective July 30, 2007 the fund became a feeder fund of Cash Management
Portfolio. The management fee is paid at the Portfolio level. Restated on
an annualized basis to reflect fee changes that took place on August 1,
2007.
2 "Other Expenses" include an administrative services fee paid to the Advisor
in the amount of 0.10% from the fund and 0.03% from the Portfolio.
3 Information on the annual operating expenses reflects the expenses of both
the fund and the Master Portfolio, in which the fund invests its assets.
4 The Portfolio's Advisor has contractually agreed through July 29, 2010 to
waive all or a portion of its management fee and reimburse or pay certain
operating expenses (excluding certain expenses such as extraordinary
expenses, taxes, brokerage and interest expenses) to the extent necessary
to maintain the annual expenses of the Portfolio at 0.15% of the
Portfolio's average daily net assets. (A further discussion of the
relationship between the fund and the Portfolio appears in the "Who Manages
and Oversees the Fund - Organizational Structure" section of this
prospectus.)
5 Through July 29, 2010, the Advisor has contractually agreed to waive all or
a portion of its administrative services fee and reimburse or pay operating
expenses of the fund to the extent necessary to maintain the fund's total
operating expenses at 0.15% for Institutional Shares, excluding certain
expenses such as extraordinary expenses, taxes, brokerage and interest
expenses.
6 Effective February 5, 2008, the Advisor has voluntarily agreed to waive
0.13% of the fund's total operating expenses. This voluntary waiver or
reimbursement may be terminated at any time at the option of the Advisor.
10 | DWS Money Market Series
Based on the costs above (including one year of capped expenses in the "1 Year"
period and two years of capped expenses in the "3 Years," "5 Years" and "10
Years" periods), this example helps you compare the expenses of the fund to
those of other mutual funds. This example assumes operating expenses remain the
same. It also assumes that you invested $10,000, earned 5% annual returns and
reinvested all dividends and distributions and sold your shares at the end of
each period. This is only an example; actual expenses will be different.
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Institutional Shares $15 $62 $127 $319
|
DWS Money Market Series | 11
OTHER POLICIES AND RISKS
While the previous pages describe the main points of the fund's
strategy and risks, there are a few other issues to know about:
- Although major changes tend to be infrequent, the fund's Board
could change the fund's investment objective without seeking
shareholder approval.
For more information
This prospectus doesn't tell you about every policy or risk of
investing in the fund.
If you want more information on the fund's allowable securities and
investment practices and the characteristics and risks of each one,
you may want to request a copy of the Statement of Additional
Information (the back cover tells you how to do this).
Keep in mind that there is no assurance that the fund will achieve
its objective.
A complete list of the fund's portfolio holdings is posted as of
each month end on or after the 14th day of the following month on
www.moneyfunds.deam-us.db.com (the Web site does not form a part of
this prospectus). This posted information generally remains
accessible at least until the date on which the fund files its Form
N-CSR or N-Q with the Securities and Exchange
Commission for the period that includes the date as of which the
posted information is current. The fund may also post on the Web
site, on a more frequent basis, a percentage breakdown of the
holdings of the fund by type of security. The fund's Statement of
Additional Information includes a description of the fund's policies
and procedures with respect to the disclosure of the fund's
portfolio holdings.
WHO MANAGES AND OVERSEES THE FUND
The investment advisor
Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), with headquarters at 345 Park Avenue, New York, NY
10154, is the investment advisor for the fund and the Portfolio.
Under the oversight of the Board, the Advisor makes
12 | Other Policies and Risks
investment decisions, buys and sells securities for the fund and the
Portfolio and conducts research that leads to these purchase and
sale decisions. The Advisor provides a full range of global
investment advisory services to institutional and retail clients.
DWS Scudder is part of Deutsche Asset Management, which is the
marketing name in the US for the asset management activities of
Deutsche Bank AG, DIMA, Deutsche Bank Trust Company Americas and DWS
Trust Company.
Deutsche Asset Management is a global asset management organization
that offers a wide range of investing expertise and resources,
including hundreds of portfolio managers and analysts and an office
network that reaches the world's major investment centers. This
well-resourced global investment platform brings together a wide
variety of experience and investment insight across industries,
regions, asset classes and investing styles.
The Advisor is an indirect, wholly owned subsidiary of Deutsche Bank
AG. Deutsche Bank AG is a major global banking institution that is
engaged in a wide range of financial services, including investment
management, mutual funds, retail, private and commercial banking,
investment banking and insurance.
MANAGEMENT FEE. The Advisor receives a management fee from the
Portfolio. Pursuant to the master/feeder structure noted earlier in
this prospectus, for the most recent fiscal year, the Portfolio paid
0.10% (reflects the effects of expense limitations and/or fee
waivers then in effect) as a percentage of average daily net assets.
Effective August 1, 2007, the Portfolio pays the Advisor a fee,
calculated daily and paid monthly, at the annual rate of 0.150% of
the first $3 billion of the Portfolio's average daily net assets,
0.1325% on the next $4.5 billion of the Portfolio's average daily
net assets, and 0.120% thereafter. The Advisor received a management
fee from the fund for the period from June 1, 2007 through July 29,
2007. The management fee paid by the fund for the most recent fiscal
year was 0.00% of the fund's average daily net assets, which
reflects the effect of expense limitations and/or fee waivers then
in effect.
Who Manages and Oversees the Fund | 13
A discussion regarding the basis for the Board's approval of the
investment management agreements for the Portfolio and the fund,
respectively, is contained in the most recent shareholder report for
the annual period ended December 31 (see "Shareholder reports" on
the back cover).
Under a separate administrative services agreement between the fund
and the Advisor, the fund pays the Advisor for providing most of the
fund's administrative services. In addition, the Portfolio has a
separate administrative services agreement with the Advisor pursuant
to which the Portfolio pays the Advisor for certain administrative
services.
ORGANIZATIONAL STRUCTURE. The fund is a "feeder fund" that invests
substantially all of its assets in a "master portfolio." The fund
and the Portfolio have the same investment objective. The Portfolio
is advised by DIMA. The Portfolio may accept investments from other
feeder funds. Each feeder fund bears the Portfolio's expenses in
proportion to that feeder fund's assets. Each feeder fund can set
its own transaction minimums, fund-specific expenses and other
conditions. The fund's board members may determine to withdraw the
fund's assets from the Portfolio if they believe doing so is in the
shareholders' best interests. If the board members withdraw the
fund's assets, they would then consider whether the fund should hire
its own investment advisor, invest in a different master portfolio
or take other action.
The portfolio managers
A group of investment professionals is responsible for the
day-to-day management of the fund. These investment professionals
have a broad range of experience managing money market funds.
14 | Who Manages and Oversees the Fund
FINANCIAL HIGHLIGHTS
The financial highlights are designed to help you understand recent financial
performance. The figures in the first part of the table are for a single share.
The total return figures represent the percentage that an investor in the fund
would have earned (or lost), assuming all dividends and distributions were
reinvested. This information has been audited by PricewaterhouseCoopers LLP,
independent registered public accounting firm, whose report, along with the
fund's financial statements, is included in the fund's annual report (see
"Shareholder reports" on the back cover).
DWS Money Market Series - Institutional Shares
YEARS ENDED DECEMBER 31, 2007a 2007c 2006c 2005c 2004c 2003c
SELECTED PER SHARE DATA
--------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------ ------ ------- ------- ------- ------- -------
Net investment income .030 .052 .039 .020 .010 .015
______________________________ _______ ________ ________ ________ ________ ________
Distributions from net
investment income ( .030) ( .052) ( .039) ( .020) ( .010) ( .015)
------------------------------ ------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------ ------- -------- -------- -------- -------- --------
Total Return (%)b 3.08** 5.37 4.02 1.98 .99 1.50
------------------------------ ------- -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------------------- --------
Net assets, end of period
($ millions) 21,262 17,469 8,637 12,214 8,646 9,261
______________________________ _______ ________ ________ ________ ________ ________
Ratio of expenses before
expense reductions including
expenses allocated from Cash
Management Portfolio (%)d .26* .24 .28 .27 .34 .35
______________________________ _______ ________ ________ ________ ________ ________
Ratio of expenses after
expense reductions including
expenses allocated from Cash
Management Portfolio (%)d .12* .10 .12 .13 .15 .15
______________________________ _______ ________ ________ ________ ________ ________
Ratio of net investment
income (%) 5.18* 5.26 3.89 1.99 .99 1.44
------------------------------ ------- -------- -------- -------- -------- --------
|
a For the period from June 1, 2007 through December 31, 2007. The fund
changed its fiscal year end from May 31 to December 31.
b Total returns would have been lower had certain expenses not been reduced.
c For the years ended May 31.
d On July 30, 2007, DWS Money Market Series became a feeder of Cash
Management Portfolio. Expense ratios disclosed prior to December 31, 2007
are for DWS Money Market Series as a stand-alone fund.
* Annualized
** Not annualized
Financial Highlights | 15
HOW TO INVEST IN THE FUND
THE FOLLOWING PAGES TELL YOU HOW TO INVEST IN THE FUND AND WHAT TO EXPECT AS A
SHAREHOLDER. The following pages also tell you about many of the services,
choices and benefits of being a shareholder. You'll also find information on
how to check the status of your account using the method that's most convenient
for you.
If you're investing directly with DWS Scudder, all of this information applies
to you. If you're investing through a "third party provider" - for example, a
workplace retirement plan, financial supermarket or financial advisor - your
provider may have its own policies or instructions and you should follow those.
You can find out more about the topics covered here by speaking with your
FINANCIAL ADVISOR OR A REPRESENTATIVE OF YOUR WORKPLACE RETIREMENT PLAN OR
OTHER INVESTMENT PROVIDER.
How to BUY Shares
FIRST INVESTMENT ADDITIONAL INVESTMENTS
$1,000,000 or more for all accounts No minimum amount
BY REGULAR, EXPRESS, REGISTERED OR
CERTIFIED MAIL
- Fill out and sign a purchase - Send a check and a letter with your
application name, account number, the full name
- Send it to us at the address below, of the fund and class, and your
along with an investment check made investment instructions to us at the
out to the complete fund and class address on the left
name
Mail to:
DWS Scudder Investments Service
Company, Institutional Money Funds-
Client Services
PO Box 219210
Kansas City, MO
64121-9210
BY WIRE
- Call (800) 730-1313 to open an account - Please contact your financial advisor
and get an account number for wire instructions on purchase
orders
- Please contact your financial advisor
for wire instructions on purchase
orders
- Complete a purchase application and
send it to us at the address below
E-MAIL ADDRESS -
ifunds@dws.com
|
How to Buy Shares | 17
How to SELL Shares
BY EXPEDITED REDEMPTION SERVICE
If Expedited Redemption Service has been elected on the Purchase
Application on
file with the Transfer Agent, redemption of shares may be requested
by:
- telephoning Client Services at (800) 730-1313
BY MAIL OR EXPRESS MAIL
Write a letter that includes:
- the fund, class, and account number from which you want to sell
shares
- the dollar amount or number of shares you want to sell
- your name(s), signature(s), and address, as they appear on your
account
- a daytime telephone number
Mail the letter to:
DWS Scudder Investments Service Company
Institutional Money Funds-Client Services
PO Box 219210
Kansas City, MO
64121-9210
BY PHONE
- Call (800) 730-1313 for instructions
|
18 | How to Sell Shares
POLICIES YOU SHOULD KNOW ABOUT
Along with the information on the previous pages, the policies below
may affect you as a shareholder. Some of this information, such as
the section on distributions and taxes, applies to all investors,
including those investing through a financial advisor.
If you are investing through a financial advisor or through a
retirement plan, check the materials you received from them about
how to buy and sell shares because particular financial advisors or
other intermediaries may adopt policies, procedures or limitations
that are separate from those described by the fund. Please note that
a financial advisor may charge fees separate from those charged by
the fund and may be compensated by the fund.
Keep in mind that the information in this prospectus applies only to
the shares offered herein. Other share classes are described in
separate prospectuses and have different fees, requirements and
services.
In order to reduce the amount of mail you receive and to help reduce
expenses, we generally send a single copy of any shareholder report
and prospectus to each household. If you do not want the mailing of
these documents to be combined with those for other members of your
household, please contact your financial advisor or call (800)
730-1313.
Financial intermediary support payments
The Advisor, DWS Scudder Distributors, Inc. (the "Distributor")
and/or their affiliates may pay additional compensation, out of
their own assets and not as an additional charge to the fund, to
selected financial advisors in connection with the sale and/or
distribution of fund shares or the retention and/or servicing of
fund investors and fund shares ("revenue sharing"). Such revenue
sharing payments are in addition to any distribution or service fees
payable under any Rule 12b-1 or service plan of the fund, any record
keeping/sub-transfer agency/networking fees payable by the fund
(generally through the Distributor or an affiliate) and/or the
Distributor to certain financial advisors for performing such
services and any sales charge, commissions, non-cash compensation
arrangements expressly permitted under applicable rules of the
Financial Industry Regulatory Authority or other concessions
described in the fee table or elsewhere in this prospectus or the
Statement of Additional Information as
Policies You Should Know About | 19
payable to all financial advisors. For example, the Advisor, the
Distributor and/or their affiliates may compensate financial
advisors for providing the fund with "shelf space" or access to a
third party platform or fund offering list or other marketing
programs, including, without limitation, inclusion of the fund on
preferred or recommended sales lists, mutual fund "supermarket"
platforms and other formal sales programs; granting the Distributor
access to the financial advisor's sales force; granting the
Distributor access to the financial advisor's conferences and
meetings; assistance in training and educating the financial
advisor's personnel; and obtaining other forms of marketing support.
The level of revenue sharing payments made to financial advisors may
be a fixed fee or based upon one or more of the following factors:
gross sales, current assets and/or number of accounts of the fund
attributable to the financial advisor, the particular fund or fund
type or other measures as agreed to by the Advisor, the Distributor
and/or their affiliates and the financial advisors or any
combination thereof. The amount of these revenue sharing payments is
determined at the discretion of the Advisor, the Distributor and/or
their affiliates from time to time, may be substantial, and may be
different for different financial advisors based on, for example,
the nature of the services provided by the financial advisor.
The Advisor, the Distributor and/or their affiliates currently make
revenue sharing payments from their own assets in connection with
the sale and/or distribution of DWS Fund shares or the retention
and/or servicing of investors and DWS Fund shares to financial
advisors in amounts that generally range from .01% up to .50% of
assets of the fund serviced and maintained by the financial advisor,
.10% to .25% of sales of the fund attributable to the financial
advisor, a flat fee of $13,350 up to $500,000, or any combination
thereof. These amounts are subject to change at the discretion of
the Advisor, the Distributor and/or their affiliates. Receipt of, or
the prospect of receiving, this additional compensation may
influence your financial advisor's recommendation of the fund or of
any particular share class of the fund. You should review your
financial advisor's compensation disclosure and/or talk to your
financial advisor to obtain more information on how this
compensation may have influenced your financial advisor's
recommendation of the fund. Additional information regarding these
revenue sharing payments is
20 | Policies You Should Know About
included in the fund's Statement of Additional Information, which is
available to you on request at no charge (see the back cover of this
prospectus for more information on how to request a copy of the
Statement of Additional Information).
The Advisor, the Distributor and/or their affiliates may also make
such revenue sharing payments to financial advisors under the terms
discussed above in connection with the distribution of both DWS
funds and non-DWS funds by financial advisors to retirement plans
that obtain record keeping services from ADP, Inc. on the DWS
Scudder branded retirement plan platform (the "Platform") with the
level of revenue sharing payments being based upon sales of both the
DWS funds and the non-DWS funds by the financial advisor on the
Platform or current assets of both the DWS funds and the non-DWS
funds serviced and maintained by the financial advisor on the
Platform.
It is likely that broker-dealers that execute portfolio transactions
for the fund will include firms that also sell shares of the DWS
funds to their customers. However, the Advisor will not consider
sales of DWS fund shares as a factor in the selection of
broker-dealers to execute portfolio transactions for the DWS funds.
Accordingly, the Advisor has implemented policies and procedures
reasonably designed to prevent its traders from considering sales of
DWS fund shares as a factor in the selection of broker-dealers to
execute portfolio transactions for the fund. In addition, the
Advisor, the Distributor and/or their affiliates will not use fund
brokerage to pay for their obligation to provide additional
compensation to financial advisors as described above.
Policies about transactions
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify and record information that
identifies each person who opens an account. What this means to you:
When you open an account, we will ask for your name, address, date
of birth and other information that will allow us to identify you.
Some or all of this information will be used to verify the identity
of all persons opening an account.
Policies You Should Know About | 21
We might request additional information about you (which may include
certain documents, such as articles of incorporation for companies)
to help us verify your identity and, in some cases, the information
and/or documents may be required to conduct the verification. The
information and documents will be used solely to verify your
identity.
We will attempt to collect any missing required and requested
information by contacting you or your financial advisor. If we are
unable to obtain this information within the time frames established
by the fund, then we may reject your application and order.
The fund will not invest your purchase until all required and
requested identification information has been provided and your
application has been submitted in "good order." After we receive all
the information, your application is deemed to be in good order and
we accept your purchase, you will receive the net asset value per
share next calculated.
If we are unable to verify your identity within time frames
established by the fund, after a reasonable effort to do so, you
will receive written notification.
With certain limited exceptions, only US residents may invest in the
fund.
Because orders placed through a financial advisor must be forwarded
to the transfer agent before they can be processed, you'll need to
allow extra time. Your financial advisor should be able to tell you
approximately when your order will be processed. It is the
responsibility of your financial advisor to forward your order to
the transfer agent in a timely manner.
TRANSACTION PROCESSING. Except as provided below, purchase,
redemption and exchange orders must be received in good order by
4:00 p.m. Eastern time (or prior to the close of the fund, if the
New York Stock Exchange closes early on such date) on a business day
on which the fund is open in order to be effective on that day;
otherwise such orders will be effective on the next business day.
However, on a normal business day that the fund calculates its share
price at 5:00 p.m. Eastern time as provided below, purchase orders
with payment sent by wire and redemption orders with proceeds to be
sent by wire, ACH or by
22 | Policies You Should Know About
check that are communicated by telephone (but not by the Automated
Information Line) and are received in good order by 5:00 p.m.
Eastern time on a business day will be effective on that business
day.
Orders for the purchase of shares by wire transfer will normally be
effective at the share price next computed after receipt of the wire
transfer of the amount to be invested. If a wire transfer purchase
order is received in good order before 5:00 p.m. Eastern time, it
will normally receive the dividend for that day.
Shareholders known to the fund may notify Institutional Investment
Services in advance of their wire transfer purchase by calling
Institutional Investment Services prior to the 5:00 p.m. Eastern
time cut-off time and providing the amount of the order. The
investor will receive a confirmation number for the trade. If the
fund receives the wire transfer before the close of the Federal
Funds wire system, the trade will be entitled to that day's
dividend. If the fund does not receive the wire transfer by the
close of the Federal Funds wire system, the trade may not receive
the dividend for that day and, depending upon the circumstances, the
trade may receive the dividend for the following business day or may
be canceled or rejected and, in any case, the investor may be
charged for any losses or fees that result, which may be paid by
deductions from their account or otherwise. The fund's Distributor
may refuse to allow any investor to trade with the fund in this
manner and may require that the wire transfer of purchase proceeds
be received before the trade is considered in good order.
Investments by check will be effective on the business day following
receipt and will earn dividends the following business day. If you
pay for shares by check and the check fails to clear, we have the
right to cancel your order, hold you liable or charge you or your
account for any losses or fees the fund or its agents have incurred.
Orders processed through dealers or other financial services firms
via Fund/SERV will be effected at the share price calculated on the
trade day (normally the date the order is received). Purchases
processed via Fund/SERV will begin earning dividends on the day the
fund receives the payment (typically the next business day). For
redemptions processed via Fund/SERV, you generally will receive
dividends accrued up to, but not including, the business day that
payment for your shares is made.
Policies You Should Know About | 23
When selling shares, shareholders generally receive dividends up to,
but not including, the business day following the day on which the
shares were sold. To sell shares, you must state whether you would
like to receive the proceeds by wire or check.
To sell by wire, contact Institutional Investment Services before
5:00 p.m. Eastern time. After you inform Institutional Investment
Services of the amount of your redemption, you will receive a trade
confirmation number. If the fund receives a sell request before 5:00
p.m. Eastern time and the request calls for proceeds to be sent out
by wire, the proceeds will normally be wired on the same day.
However, the shares sold will not earn that day's dividend.
As noted elsewhere in the prospectus, proceeds of a redemption may
be delayed. The ability to receive "same day" wire redemption
proceeds can be affected by a variety of circumstances including the
time that the request is made, the level of redemption requests and
purchase orders and general market conditions. Requests for same day
wire that are received earlier in the day will be given priority
over requests received later in the day in the event that it is
necessary to limit the amount of same day wire redemptions.
Your initial investment must be for at least $1,000,000. There are
no minimum subsequent investment requirements.
The minimum initial investment is waived for:
- Shareholders with existing accounts prior to August 13, 2004 who
met the previous minimum investment eligibility requirement.
- Investment advisory affiliates of Deutsche Bank Securities, Inc.,
DWS funds or Deutsche funds purchasing shares for the accounts of
their investment advisory clients.
- Employee benefit plans with assets of at least $50 million.
- Clients of the private banking division of Deutsche Bank AG.
- Institutional clients and qualified purchasers that are clients
of a division of Deutsche Bank AG.
- A current or former director or trustee of the Deutsche or DWS
funds.
24 | Policies You Should Know About
- An employee, the employee's spouse or life partner and children
or stepchildren age 21 or younger of Deutsche Bank or its affiliates
or a subadvisor to any fund in the DWS family of funds or a
broker-dealer authorized to sell shares of the funds.
- Registered investment advisors who trade through platforms
approved by the Advisor and whose client assets in the fund in
the aggregate meet (or, in the Advisor's judgment, will meet
within a reasonable period of time) the $1,000,000 minimum
investment.
The fund reserves the right to modify the above eligibility
requirements and investment minimum at any time.
SUB-MINIMUM BALANCES. The fund may close your account and send you
the proceeds if your balance falls below $1,000,000; we will give
you 60 days' notice so you can either increase your balance or close
your account (these policies don't apply to most retirement
accounts).
For more information on how to buy or sell shares by mail, refer to
"Policies about transactions - Transaction Processing" below.
WIRE:
BUYING: You may buy shares by wire only if your account is
authorized to do so. Instruct your bank to send payment by wire
using the wire instructions below.
BANK NAME: State Street Bank Boston
ROUTING NO: 011000028
ATTN: DWS Scudder
DDA NO: 99028102
FBO: (Account name) (Account number)
CREDIT: (Fund name, Fund number and, if applicable, class
name) (Refer to the start of "The Fund's Main
Investment Strategy" above for the fund number.)
|
Refer to your account statement for the account name and number.
Wire transfers normally take two or more hours to complete. Wire
transfers may be restricted on holidays and at certain other times.
Policies You Should Know About | 25
SELLING: You may sell shares by wire only if your account is
authorized to do so. You will be paid for redeemed shares by wire
transfer of funds to your financial advisor or bank upon receipt of
a duly authorized redemption request as promptly as feasible. For
your protection, you may not change the destination bank account
over the phone.
For more information on how to buy or sell shares by wire, refer to
"Policies about transactions - Transaction Processing" below.
TELEPHONE AND ELECTRONIC TRANSACTIONS. Generally, you are
automatically entitled to telephone and electronic transaction
privileges, but you may elect not to have them when you open your
account or by contacting Institutional Investment Services at (800)
730-1313 at a later date.
Since many transactions may be initiated by telephone or
electronically, it's important to understand that as long as we take
reasonable steps to ensure that an order to purchase or redeem
shares is genuine, such as recording calls or requesting
personalized security codes or other information, we are not
responsible for any losses that may occur as a result. For
transactions conducted over the Internet, we recommend the use of a
secure Internet browser. In addition, you should verify the accuracy
of your confirmation statements immediately after you receive them.
REGULAR INVESTMENTS AND WITHDRAWALS enable you to set up a link
between the fund account and a bank account. Once this link is in
place, you can move money between the two with a phone call. You'll
need to make sure your bank has Automated Clearing House (ACH)
services. Transactions take two to three days to be completed.
EXPEDITED REDEMPTIONS. Expedited Redemption Service allows you to
have proceeds from your sales of fund shares wired directly to a
bank account. To use this service, you'll need to designate the bank
account in advance. Follow the instructions on your application.
THE FUND DOES NOT ISSUE SHARE CERTIFICATES. However, if you
currently have shares in certificated form, you must include the
share certificates properly endorsed or accompanied by a duly
executed stock power when exchanging or redeeming shares. You may
not exchange or redeem shares in certificate form by telephone or
via the Internet.
26 | Policies You Should Know About
THE FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by check,
bank or Federal Funds wire transfer or by electronic bank transfer.
Please note that the fund does not accept cash, money orders,
traveler's checks, starter checks, third party checks (except checks
for retirement plan asset transfers and rollovers or for Uniform
Gifts to Minors Act/Uniform Transfers to Minors Act accounts),
checks drawn on foreign banks or checks issued by credit card
companies or Internet-based companies. Thus, subject to the
foregoing exceptions for certain third party checks, checks that are
otherwise permissible must be drawn by the account holder on a
domestic bank and must be payable to the fund.
SIGNATURE GUARANTEE. When you want to sell more than $100,000 worth
of shares or send proceeds to a third party or to a new address,
you'll usually need to place your order in writing and include a
signature guarantee. However, if you want money wired to a bank
account that is already on file with us, you don't need a signature
guarantee. Also, generally you don't need a signature guarantee for
an exchange, although we may require one in certain other
circumstances.
A signature guarantee is simply a certification of your signature -
a valuable safeguard against fraud. You can get a signature
guarantee from an eligible guarantor institution, including
commercial banks, savings and loans, trust companies, credit unions,
member firms of a national stock exchange or any member or
participant of an approved signature guarantor program. Note that
you can't get a signature guarantee from a notary public and we must
be provided the original guarantee.
SELLING SHARES OF TRUST ACCOUNTS AND BUSINESS OR ORGANIZATION
ACCOUNTS may require additional documentation. Please call (800)
730-1313 or contact your financial advisor for more information.
MONEY FROM SHARES YOU SELL is normally sent out within one business
day of the business day that your redemption order is effective.
There are circumstances when it could be longer, including, but not
limited to, when you are selling shares you bought recently by
check or ACH (the funds will be placed under a 10 calendar day hold
to ensure good funds) or when unusual circumstances prompt the SEC
to allow further delays. Certain expedited redemption processes
(e.g., redemption proceeds by wire) may also be delayed or
unavailable when you
Policies You Should Know About | 27
are selling shares recently purchased by check or ACH or in the
event of closing of the Federal Reserve wire payment system. The
fund reserves the right to suspend or postpone redemptions as
permitted pursuant to Section 22(e) of the Investment Company Act of
1940. Generally, those circumstances are when 1) the New York Stock
Exchange is closed other than customary weekend or holiday closings;
2) trading on the New York Stock Exchange is restricted; 3) an
emergency exists which makes the disposal of securities owned by the
fund or the fair determination of the value of the fund's net assets
not reasonably practicable; or 4) the SEC, by order, permits the
suspension of the right of redemption. Redemption payments by wire
may also be delayed in the event of a non-routine closure of the
Federal Reserve wire payment system. For additional rights reserved
by the fund, please see "Other rights we reserve."
You may obtain additional information about other ways to sell your
shares by contacting your financial advisor.
SHORT-TERM TRADING. Since money market funds hold short-term
instruments and are intended to provide liquidity to shareholders,
the Advisor does not monitor or limit short-term or excessive
trading activity in the fund and, accordingly, the Board of the fund
has not approved any policies and procedures designed to limit this
activity. However, the fund reserves the right to and may reject or
cancel a purchase or exchange order into the fund for any reason,
including if, in the opinion of the Advisor, there appears to be a
pattern of short-term or excessive trading by an investor in another
DWS fund.
How the fund calculates share price
To calculate net asset value, or NAV, each share class uses the
following equation:
TOTAL ASSETS - TOTAL LIABILITIES
----------------------------------------- = NAV
TOTAL NUMBER OF SHARES OUTSTANDING
|
The price at which you buy and sell shares is based on the NAV per
share next calculated after the order is received by the transfer
agent.
28 | Policies You Should Know About
IN VALUING SECURITIES, we typically use amortized cost (the method
used by most money market funds) to account for any premiums or
discounts above or below the face value of any securities the fund
buys, and round the per share NAV to the nearest whole cent.
THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
(the "Exchange") is open. Normally, the fund calculates its share
price once every business day at 5:00 p.m. Eastern time. The close
of regular trading on the Exchange is typically 4:00 p.m. Eastern
time, but sometimes earlier, as in the case of scheduled half-day
trading or unscheduled suspensions of trading. In the event of
scheduled partial day trading or unscheduled suspensions of trading
on the Exchange, the calculation of share price shall be as of the
close of trading on the Exchange. In such instances, the latest time
for receipt of wire purchase transactions entitled to receive same
day dividend treatment and for receipt of redemption orders for same
day wire transfer of proceeds will be the earlier of (a) 5:00 p.m.
Eastern time or (b) the early closing time of the Exchange. The fund
seeks to maintain a stable $1.00 share price.
The fund may, but is not required to, accept certain types of
purchase and redemption orders (not including exchanges) on days
that the Exchange is closed, or beyond an Exchange early closing
time (referred to as a "Limited Trading Period") if: (a) the Federal
Reserve system is open, (b) the primary trading markets for the
fund's portfolio instruments are open and (c) the Advisor believes
there will be adequate liquidity in the short-term markets. During
any such Limited Trading Period, the fund will only accept purchase
orders by wire with advance telephone notification and telephone
redemption orders with proceeds to be sent by wire, ACH or check and
will not accept orders by any other means. (Automated Telephone Line
orders are not permitted.) If redemption proceeds are requested by
ACH or check, the transmission of the ACH payment or the mailing of
the check, as the case may be, will be delayed by at least one
business day in comparison to normal trading periods. Orders
submitted by other means will be processed on the next day that the
Exchange is open. The calculation of share price will be as set
forth in the prospectus for normal trading days. Orders must be
submitted by the cut-off times for receipt of wire purchases
entitled to that day's dividend and for receipt of telephone
redemption orders for same day wire transfer, which will be the
earlier of: (a) the times set forth in the prospectus for
Policies You Should Know About | 29
normal trading days or (b) such earlier times that the fund
determines based on the criteria described above. If redemption
proceeds are requested by ACH or check, orders must be received
prior to the calculation of share price. Please call (877) 237-1131
or visit our Web site at www.moneyfunds.deam-us.db.com for
additional information about whether the fund will be open for
business on a particular day. Information concerning the intention
of the fund to be open for a Limited Trading Period will be
available at least one business day prior to the applicable day that
the Exchange is closed or is closing early in the case of scheduled
closings and as soon as practical in the case of unscheduled
closings.
Other rights we reserve
You should be aware that we may do any of the following:
- withdraw or suspend the offering of shares at any time
- withhold a portion of your distributions and redemption proceeds
for federal income tax purposes if we have been notified by the
IRS that you are subject to backup withholding or if you fail to
provide us with a correct taxpayer ID number and certain
certifications including certification that you are not subject
to backup withholding
- reject a new account application if you don't provide any
required or requested identifying information, or for any other
reason
- refuse, cancel, limit or rescind any purchase or exchange order,
without prior notice; freeze any account (meaning you will not be
able to purchase fund shares in your account); suspend account
services; and/or involuntarily redeem your account if we think
that the account is being used for fraudulent or illegal
purposes; one or more of these actions will be taken when, at our
sole discretion, they are deemed to be in the fund's best
interests or when the fund is requested or compelled to do so by
governmental authority or by applicable law
30 | Policies You Should Know About
- close and liquidate your account if we are unable to verify your
identity, or for other reasons; if we decide to close your account,
your fund shares will be redeemed at the net asset value per share
next calculated after we determine to close your account (less
applicable redemption fee, if any); you may recognize a gain or loss
on the redemption of your fund shares and you may incur a tax
liability
- change, add or withdraw various services, fees and account
policies (for example, we may adjust the fund's investment
minimums at any time)
UNDERSTANDING DISTRIBUTIONS AND TAXES
The fund intends to distribute to its shareholders virtually all of
its net earnings. The fund can earn money in two ways: by receiving
interest, dividends or other income from securities it holds and by
selling securities for more than it paid for them. (The fund's
earnings are separate from any gains or losses stemming from your
own purchase and sale of shares.) The fund may not always pay a
dividend or distribution for a given period.
THE FUND'S INCOME DIVIDENDS ARE DECLARED DAILY AND PAID MONTHLY TO
SHAREHOLDERS. The fund may take into account capital gains and
losses (other than net long-term capital gains) in its daily
dividend declarations. The fund may make additional distributions
for tax purposes if necessary.
Dividends or distributions declared to shareholders of record in the
last quarter of a given calendar year are treated for federal income
tax purposes as if they were received on December 31 of that year,
provided such dividends or distributions are paid by the end of the
following January.
For federal income tax purposes, income and capital gains
distributions are generally taxable to shareholders. However,
dividends and distributions received by retirement plans qualifying
for tax exemption under federal income tax laws generally will not
be taxable.
THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS
Because each shareholder's tax situation is unique, ask your tax professional
about the tax consequences of your investments, including any state and local
tax consequences.
Understanding Distributions and Taxes | 31
YOU CAN CHOOSE HOW TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS. You
can have them all automatically reinvested in fund shares (at NAV),
sent to you by check or wired to your bank account of record. Tell
us your preference on your application. If you don't indicate a
preference, your dividends and distributions will all be reinvested.
For retirement plans, reinvestment is the only option.
Distributions are treated the same for federal income tax purposes
whether you receive them in cash or reinvest them in additional
shares. For federal income tax purposes, an exchange is treated the
same as a sale.
Because the fund seeks to maintain a stable share price, you are
unlikely to have capital gains or losses when you sell fund shares.
For federal income tax purposes, distributions of investment income
are taxable as ordinary income. The fund does not expect to make
distributions that are eligible for taxation as long-term capital
gains or as qualified dividend income.
The use of a master/feeder structure could affect the amount, timing
and character of distributions, and therefore, may increase the
amount of taxes payable to shareholders.
Your fund will send you detailed federal income tax information
every January. These statements tell you the amount and the federal
income tax classification of any dividends or distributions you
received. They also have certain details on your purchases and sales
of shares.
The above discussion is applicable to shareholders who are US
persons. If you are a non-US person, please consult your own tax
advisor with respect to the US tax consequences to you of an
investment in the fund.
32 | Understanding Distributions and Taxes
APPENDIX
Hypothetical Expense Summary
Using the annual fund operating expense ratios presented in the fee
tables in the fund prospectus, the Hypothetical Expense Summary
shows the estimated fees and expenses, in actual dollars, that would
be charged on a hypothetical investment of $10,000 in the fund held
for the next 10 years and the impact of such fees and expenses on
fund returns for each year and cumulatively, assuming a 5% return
for each year. The tables also assume that all dividends and
distributions are reinvested. The annual fund expense ratios shown
are net of any contractual fee waivers or expense reimbursements, if
any, for the period of the contractual commitment. Also, please note
that if you are investing through a third party provider, that
provider may have fees and expenses separate from those of the fund
that are not reflected here. Mutual fund fees and expenses fluctuate
over time and actual expenses may be higher or lower than those
shown.
The Hypothetical Expense Summary should not be used or construed as
an offer to sell, a solicitation of an offer to buy or a
recommendation or endorsement of any specific mutual fund. You
should carefully review the fund's prospectus to consider the
investment objectives, risks, expenses and charges of the fund prior
to investing.
Appendix | 33
DWS Money Market Series - Institutional Shares
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
1 5.00% 0.15% 4.85% $ 10,485.00 $ 15.36
2 10.25% 0.15% 9.94% $ 10,993.52 $ 16.11
3 15.76% 0.27% 15.14% $ 11,513.52 $ 30.38
4 21.55% 0.27% 20.58% $ 12,058.11 $ 31.82
5 27.63% 0.27% 26.28% $ 12,628.45 $ 33.33
6 34.01% 0.27% 32.26% $ 13,225.78 $ 34.90
7 40.71% 0.27% 38.51% $ 13,851.36 $ 36.55
8 47.75% 0.27% 45.07% $ 14,506.53 $ 38.28
9 55.13% 0.27% 51.93% $ 15,192.69 $ 40.09
10 62.89% 0.27% 59.11% $ 15,911.30 $ 41.99
TOTAL $ 318.81
|
34 | Appendix
TO GET MORE INFORMATION
SHAREHOLDER REPORTS - These include commentary from the fund's management team
about recent market conditions and the effects of the fund's strategies on its
performance. They also have detailed performance figures, a list of everything
the fund owns, and its financial statements. Shareholders get these reports
automatically.
STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
fund's features and policies, including additional risk information. The SAI is
incorporated by reference into this document (meaning that it's legally part of
this prospectus).
For a free copy of any of these documents or to request other information about
the fund, call (800) 730-1313, or contact DWS Scudder at the address listed
below. The fund's SAI and shareholder reports are also available through the
DWS Scudder Web site at www.moneyfunds.deam-us.db.com. These documents and
other information about the fund are available from the EDGAR Database on the
SEC's Internet site at www.sec.gov. If you like, you may obtain copies of this
information, after paying a copying fee, by e-mailing a request to
publicinfo@sec.gov or by writing the SEC at the address listed below. You can
also review and copy these documents and other information about the fund,
including the fund's SAI, at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the SEC's Public Reference Room may be
obtained by calling (800) SEC-0330.
DWS SCUDDER SEC DISTRIBUTOR
---------------------- -------------------- -------------------------------
PO Box 219210 100 F Street, N.E. DWS Scudder Distributors, Inc.
Kansas City, MO Washington, D.C. 222 South Riverside Plaza
64121-9210 20549-0102 Chicago, IL 60606-5808
WWW.MONEYFUNDS.DEAM- WWW.SEC.GOV (800) 621-1148
US.DB.COM (800) SEC-0330
(800) 730-1313
|
SEC FILE NUMBER:
DWS Money Market Trust DWS Money Market Series 811-03495
|
(05/01/08) 403-2-106
[RECYCLE GRAPHIC APPEARS HERE]
[Logo]DWS
SCUDDER
Deutsche Bank Group
MAY 1, 2008
PROSPECTUS
MANAGED SHARES
DWS MONEY MARKET SERIES
As with all mutual funds, the Securities and Exchange Commission (SEC) does not
approve or disapprove these shares or determine whether the information in this
prospectus is truthful or complete. It is a criminal offense for anyone to
inform you otherwise.
ONE GLOBAL FORCE. ONE FOCUS. YOU. [DWS SCUDDER Logo]
Deutsche Bank Group
CONTENTS
HOW THE FUND WORKS
4 The Fund's Main Investment
Strategy
6 The Main Risks of Investing in
the Fund
9 The Fund's Performance
History
10 How Much Investors Pay
12 Other Policies and Risks
12 Who Manages and Oversees
the Fund
15 Financial Highlights
|
HOW TO INVEST IN THE FUND
17 How to Buy, Sell and
Exchange Shares
19 Policies You Should Know
About
30 Understanding Distributions
and Taxes
32 Appendix
|
HOW THE FUND WORKS
On the next few pages, you'll find information about the fund's investment
objective, the main strategies it uses to pursue that objective and the main
risks that could affect performance.
Whether you are considering investing in the fund or are already a shareholder,
you'll want to LOOK THIS INFORMATION OVER CAREFULLY. You may want to keep it on
hand for reference as well.
Remember that mutual funds are investments, not bank deposits. They're not
insured or guaranteed by the FDIC or any other government agency. Their share
prices will go up and down, and you could lose money by investing in them.
You can find all Institutional DWS money fund prospectuses on the Internet at
WWW.MONEYFUNDS.DEAM-US.DB.COM (the Web site does not form a part of this
prospectus).
Managed Shares
ticker symbol MCAXX
fund number 2023
DWS MONEY MARKET SERIES
|
THE FUND'S MAIN INVESTMENT STRATEGY
The fund is a feeder fund that invests substantially all of its
assets in a "master portfolio," the Cash Management Portfolio (the
"Portfolio"), which will invest directly in securities and other
instruments. References to the fund may refer to actions undertaken
by the Portfolio.
The fund's goal is to seek a high level of current income
consistent with liquidity and the preservation of capital. The
fund, through the Portfolio, seeks to achieve its goal by investing
in high quality short-term money market instruments.
While the fund's Advisor gives priority to earning income and
maintaining the value of the fund's principal at $1.00 per share,
all money market instruments, including US government obligations,
can change in value when interest rates change or an issuer's
creditworthiness changes.
The fund maintains a dollar-weighted average maturity of 90 days or
less. The fund is managed in accordance with Rule
2a-7 under the Investment Company Act of 1940, as amended.
The fund follows policies designed to maintain a stable share
price:
- Fund securities are valued in US dollars and have remaining
maturities of 397 days (about 13 months) or less at the time of
purchase. The fund may also invest in securities that have
features that have the effect of reducing their maturities to
397 days or less at the time of purchase
- The fund buys US government debt obligations, money market
instruments and other debt obligations that at the time of
purchase:
- have received one of the two highest short-term ratings from
two nationally recognized statistical rating organizations
(NRSROs) or one NRSRO if that NRSRO is the only NRSRO that
rates such obligations;
4 | DWS Money Market Series
- are unrated, but are deemed by the Advisor to be of comparable
quality to one of the two highest short-term ratings; or
- have no short-term rating, but are rated in one of the top
three highest long-term rating categories by a NRSRO or are
deemed by the Advisor to be of comparable quality.
Principal investments
The fund invests in the following investments through the
Portfolio.
The fund may invest in high quality, short-term, US dollar
denominated money market instruments paying a fixed, variable or
floating interest rate. These include:
- Debt obligations issued by US and foreign banks, financial
institutions, corporations or other entities, including
certificates of deposit, euro-time deposits, commercial paper
(including asset-backed commercial paper), notes, funding
agreements and US government securities. Securities that do not
satisfy the maturity restrictions for a money market fund may be
specifically structured so that they are eligible investments
for money market funds. For example, some securities have
features which have the effect of shortening the security's
maturity.
- US government securities that are issued or guaranteed by the US
Treasury, or by agencies or instrumentalities of the US
government.
- Repurchase agreements, which are agreements to buy securities at
one price, with a simultaneous agreement to sell back the
securities at a future date at an agreed-upon price.
- Asset-backed securities, which are generally participations in a
pool of assets whose payment is derived from the payments
generated by the underlying assets. Payments on the asset-backed
security generally consist of interest and/
or principal.
Under normal market conditions the fund will invest more than 25%
of its total assets in the obligations of banks and other financial
institutions.
DWS Money Market Series | 5
The fund may invest up to 10% of its total assets in other money
market mutual funds in accordance with applicable regulations.
Working in consultation with the portfolio managers, a credit team
screens potential securities and develops a list of those that the
fund may buy. The portfolio managers, looking for attractive yield
and weighing considerations such as credit quality, economic
outlooks and possible interest rate movements, then decide which
securities on this list to buy. The portfolio managers may adjust
the fund's exposure to interest rate risk, typically seeking to
take advantage of possible rises in interest rates and to preserve
yield when interest rates appear likely to fall.
THE MAIN RISKS OF INVESTING IN THE FUND
There are several risk factors that could reduce the yield you get
from the fund or cause the fund's performance to trail that of
other investments.
The fund is exposed to the risk factors below even though the
Portfolio, not the fund, invests directly in the individual
securities.
INTEREST RATE RISK. Money market instruments, like all debt
securities, face the risk that the securities will decline in value
because of changes in interest rates. Generally, investments
subject to interest rate risk will decrease in value when interest
rates rise and increase in value when interest rates decline. To
minimize such price fluctuations, the fund limits the
dollar-weighted average maturity of the securities held by the fund
to 90 days or less. Generally, the price of short-term investments
fluctuates less than longer-term investments. Income earned on
floating or variable rate securities may vary as interest rates
decrease or increase.
CREDIT RISK. A money market instrument's credit quality depends on
the issuer's ability to pay interest on the security and repay the
debt; the lower the credit rating, the greater the risk that the
security's issuer will default, or fail to meet its payment
obligations. The credit risk of a security may also depend on the
credit quality of any bank or financial institution that provides
credit enhancement for it. To minimize credit risk, the fund only
buys high quality securities. Also, the fund only buys securities
with remaining maturities of 397 days (approximately 13 months) or
less. This reduces the risk that
6 | DWS Money Market Series
the issuer's creditworthiness will change, or that the issuer will
default on the principal and interest payments of the obligation.
Additionally, some securities issued by US government agencies or
instrumentalities are supported only by the credit of that agency
or instrumentality. There is no guarantee that the US government
will provide support to such agencies or instrumentalities and such
securities may involve risk of loss of principal and interest.
Securities that rely on third party guarantors to raise their
credit quality could fall in price or go into default if the
financial condition of the guarantor deteriorates.
MARKET RISK. Although individual securities may outperform the
market, the entire market may decline as a result of rising
interest rates, regulatory developments or deteriorating economic
conditions.
SECURITY SELECTION RISK. While the fund invests in short-term
securities, which by their nature are relatively stable
investments, the risk remains that the securities in which the fund
invests will not perform as expected. This could cause the fund's
returns to lag behind those of similar money market mutual funds.
REPURCHASE AGREEMENT RISK. A repurchase agreement exposes the fund
to the risk that the party that sells the securities may default on
its obligation to repurchase them. In this circumstance, the fund
can lose money because:
- it cannot sell the securities at the agreed-upon time and price;
or
- the securities lose value before they can be sold.
The fund seeks to reduce this risk by monitoring the
creditworthiness of the sellers with whom it enters into repurchase
agreements. The fund also monitors the value of the securities to
ensure that they are at least equal to the total amount of the
repurchase obligations, including interest and accrued interest.
CONCENTRATION RISK. Because the fund will invest more than 25% of
its total assets in the obligations of banks and other financial
institutions, it may be vulnerable to setbacks in that industry.
Banks and other financial institutions are highly dependent on
short-term interest rates and can be adversely affected by
downturns in the US and foreign economies or changes in banking
regulations.
DWS Money Market Series | 7
PREPAYMENT RISK. A bond issuer, such as an issuer of asset-backed
securities, may retain the right to pay off a high yielding bond
before it comes due. In that event, the fund may have to reinvest
the proceeds at lower interest rates. Thus, prepayment may reduce
the fund's income. It may also create a capital gains tax
liability, because bond issuers usually pay a premium for the right
to pay off bonds early.
FOREIGN INVESTMENT RISK. The fund may invest in money market
instruments of foreign issuers that are denominated in US dollars.
Foreign investments involve certain special risks, such as
unfavorable political and legal developments, limited financial
information, regulatory risk and economic and financial
instability.
An investment in the fund is not insured or guaranteed by the FDIC
or any other government agency. Although the fund seeks to preserve
the value of your investment at $1.00 per share, this share price
isn't guaranteed and you could lose money by investing in the fund.
8 | DWS Money Market Series
THE FUND'S PERFORMANCE HISTORY
While a fund's past performance isn't necessarily a sign of how it will do in
the future, it can be valuable for an investor to know.
The bar chart shows how the performance of the fund has varied from year to
year, which may give some idea of risk. The table shows how the fund's returns
over different periods average out. The "total return" of a fund is the change
in the value of an investment in the fund over a given period. Average annual
returns are calculated by averaging the year-by-year returns of the fund over a
given period. All figures include the effects of the fund's expenses and assume
reinvestment of dividends and distributions. As always, past performance is no
guarantee of future results.
The 7-DAY YIELD, which is often referred to as the "current yield," is the
income generated by the fund over a seven-day period. This amount is then
annualized, which means that we assume the fund generates the same income every
week for a year. To learn the current yield, investors may call (800) 730-1313.
Effective July 30, 2007, some of the fund's investment strategies changed. The
fund's past performance would have been different if the fund was managed using
the current strategies.
DWS Money Market Series
ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - Managed Shares
[GRAPHIC APPEARS HERE]
5.33 5.16 6.33 3.98 1.59 0.97 1.26 3.15 5.00 5.32
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
|
2008 TOTAL RETURN AS OF MARCH 31: 0.98%
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 1.64%, Q4 2000 WORST QUARTER: 0.20%, Q3 2003
|
AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007
1 YEAR 5 YEARS 10 YEARS
Managed Shares 5.32 3.12 3.79
|
Total returns would have been lower if operating expenses hadn't been
reduced.
DWS Money Market Series | 9
HOW MUCH INVESTORS PAY
The table below describes the fees and expenses that you may pay if you buy and
hold fund shares. This information doesn't include any fees that may be charged
by your financial advisor.
MANAGED
FEE TABLE SHARES
SHAREHOLDER FEES, paid directly from
your investment None
______________________________________
ANNUAL OPERATING EXPENSES, deducted
from fund assets
______________________________________ _____
Management Fee1 0.13%
Distribution/Service (12b-1) Fee None
Other Expenses2 0.15
TOTAL ANNUAL OPERATING EXPENSES3 0.28
Less Fee Waiver/Expense
Reimbursement4,5 0.08
NET ANNUAL OPERATING EXPENSES6 0.20
|
1 Effective July 30, 2007 the fund became a feeder fund of Cash Management
Portfolio. The management fee is paid at the Portfolio level. Restated on
an annualized basis to reflect fee changes that took place on August 1,
2007.
2 "Other Expenses" include an administrative services fee paid to the Advisor
in the amount of 0.10% from the fund and 0.03% from the Portfolio.
3 Information on the annual operating expenses reflects the expenses of both
the fund and the Master Portfolio, in which the fund invests its assets.
4 The Portfolio's Advisor has contractually agreed through July 29, 2010 to
waive all or a portion of its management fee and reimburse or pay certain
operating expenses (excluding certain expenses such as extraordinary
expenses, taxes, brokerage and interest expenses) to the extent necessary
to maintain the annual expenses of the Portfolio at 0.15% of the
Portfolio's average daily net assets. (A further discussion of the
relationship between the fund and the Portfolio appears in the "Who Manages
and Oversees the Fund - Organizational Structure" section of this
prospectus.)
5 Through July 29, 2010, the Advisor has contractually agreed to waive all or
a portion of its administrative services fee and reimburse or pay operating
expenses of the fund to the extent necessary to maintain the fund's total
operating expenses at 0.20% for Managed Shares, excluding certain expenses
such as extraordinary expenses, taxes, brokerage and interest expenses.
6 Effective February 5, 2008, the Advisor has voluntarily agreed to waive
0.13% of the fund's total operating expenses. This voluntary waiver or
reimbursement may be terminated at any time at the option of the Advisor.
10 | DWS Money Market Series
Based on the costs above (including one year of capped expenses in the "1 Year"
period and two years of capped expenses in the "3 Years," "5 Years," and "10
Years" periods), this example helps you compare the expenses of the fund to
those of other mutual funds. This example assumes operating expenses remain the
same. It also assumes that you invested $10,000, earned 5% annual returns and
reinvested all dividends and distributions and sold your shares at the end of
each period. This is only an example; actual expenses will be different.
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Managed Shares $20 $73 $141 $340
|
DWS Money Market Series | 11
OTHER POLICIES AND RISKS
While the previous pages describe the main points of the fund's
strategy and risks, there are a few other issues to know about:
- Although major changes tend to be infrequent, the fund's Board
could change the fund's investment objective without seeking
shareholder approval.
For more information
This prospectus doesn't tell you about every policy or risk of
investing in the fund.
If you want more information on the fund's allowable securities and
investment practices and the characteristics and risks of each one,
you may want to request a copy of the Statement of Additional
Information (the back cover tells you how to do this).
Keep in mind that there is no assurance that the fund will achieve
its objective.
A complete list of the fund's portfolio holdings is posted as of
each month end on or after the 14th day of the following month on
www.moneyfunds.deam-us.db.com (the Web site does not form a part of
this prospectus). This posted information generally remains
accessible at least until the date on which the fund files its Form
N-CSR or N-Q with the Securities and Exchange
Commission for the period that includes the date as of which the
posted information is current. The fund may also post on the Web
site, on a more frequent basis, a percentage breakdown of the
holdings of the fund by type of security. The fund's Statement of
Additional Information includes a description of the fund's policies
and procedures with respect to the disclosure of the fund's
portfolio holdings.
WHO MANAGES AND OVERSEES THE FUND
The investment advisor
Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), with headquarters at 345 Park Avenue, New York, NY
10154, is the investment advisor for the fund and the Portfolio.
Under the oversight of the Board, the Advisor makes
12 | Other Policies and Risks
investment decisions, buys and sells securities for the fund and the
Portfolio and conducts research that leads to these purchase and
sale decisions. The Advisor provides a full range of global
investment advisory services to institutional and retail clients.
DWS Scudder is part of Deutsche Asset Management, which is the
marketing name in the US for the asset management activities of
Deutsche Bank AG, DIMA, Deutsche Bank Trust Company Americas and DWS
Trust Company.
Deutsche Asset Management is a global asset management organization
that offers a wide range of investing expertise and resources,
including hundreds of portfolio managers and analysts and an office
network that reaches the world's major investment centers. This
well-resourced global investment platform brings together a wide
variety of experience and investment insight across industries,
regions, asset classes and investing styles.
The Advisor is an indirect, wholly owned subsidiary of Deutsche Bank
AG. Deutsche Bank AG is a major global banking institution that is
engaged in a wide range of financial services, including investment
management, mutual funds, retail, private and commercial banking,
investment banking and insurance.
MANAGEMENT FEE. The Advisor receives a management fee from the
Portfolio. Pursuant to the master/feeder structure noted earlier in
this prospectus, for the most recent fiscal year, the Portfolio paid
0.10% (reflects the effects of expense limitations and/or fee
waivers then in effect) as a percentage of average daily net assets.
Effective August 1, 2007, the Portfolio pays the Advisor a fee,
calculated daily and paid monthly, at the annual rate of 0.150% of
the first $3 billion of the Portfolio's average daily net assets,
0.1325% on the next $4.5 billion of the Portfolio's average daily
net assets, and 0.120% thereafter. The Advisor received a management
fee from the fund for the period from June 1, 2007 through July 29,
2007. The management fee paid by the fund for the most recent fiscal
year was 0.00% of the fund's average daily net assets, which
reflects the effect of expense limitations and/or fee waivers then
in effect.
Who Manages and Oversees the Fund | 13
A discussion regarding the basis for the Board's approval of the
investment management agreements for the Portfolio and the fund,
respectively, is contained in the most recent shareholder report for
the annual period ended December 31 (see "Shareholder reports" on
the back cover).
Under a separate administrative services agreement between the fund
and the Advisor, the fund pays the Advisor for providing most of the
fund's administrative services. In addition, the Portfolio has a
separate administrative services agreement with the Advisor pursuant
to which the Portfolio pays the Advisor for certain administrative
services.
ORGANIZATIONAL STRUCTURE. The fund is a "feeder fund" that invests
substantially all of its assets in a "master portfolio." The fund
and the Portfolio have the same investment objective. The Portfolio
is advised by DIMA. The Portfolio may accept investments from other
feeder funds. Each feeder fund bears the Portfolio's expenses in
proportion to that feeder fund's assets. Each feeder fund can set
its own transaction minimums, fund-specific expenses and other
conditions. The fund's board members may determine to withdraw the
fund's assets from the Portfolio if they believe doing so is in the
shareholders' best interests. If the board members withdraw the
fund's assets, they would then consider whether the fund should hire
its own investment advisor, invest in a different master portfolio
or take other action.
The portfolio managers
A group of investment professionals is responsible for the
day-to-day management of the fund. These investment professionals
have a broad range of experience managing money market funds.
14 | Who Manages and Oversees the Fund
FINANCIAL HIGHLIGHTS
The financial highlights are designed to help you understand recent financial
performance. The figures in the first part of the table are for a single share.
The total return figures represent the percentage that an investor in the fund
would have earned (or lost), assuming all dividends and distributions were
reinvested. This information has been audited by PricewaterhouseCoopers LLP,
independent registered public accounting firm, whose report, along with the
fund's financial statements, is included in the fund's annual report (see
"Shareholder reports" on the back cover).
DWS Money Market Series - Managed Shares
YEARS ENDED DECEMBER 31, 2007a 2007c 2006c 2005c 2004c 2003c
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------ ------ ------- ------- ------- ------- -------
Net investment income .030 .052 .039 .019 .009 .013
______________________________ _______ ________ ________ ________ ________ ________
Distributions from net
investment income ( .030) ( .052) ( .039) ( .019) ( .009) ( .013)
------------------------------ ------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------ ------- -------- -------- -------- -------- --------
Total Return (%)b 3.06** 5.33 3.98 1.94 .91 1.34
------------------------------ ------- -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------- --------
Net assets, end of period
($ millions) 510 596 454 430 451 588
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of expenses before
expense reductions including
expenses allocated from Cash
Management Portfolio (%)d .28* .28 .32 .31 .48 .50
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of expenses after
expense reductions including
expenses allocated from Cash
Management Portfolio (%)d .14* .14 .15 .17 .24 .30
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of net investment
income (%) 5.16* 5.22 3.93 1.95 .90 1.29
------------------------------- ------- -------- -------- -------- -------- --------
|
a For the period from June 1, 2007 through December 31, 2007. The fund
changed its fiscal year end from May 31 to December 31.
b Total returns would have been lower had certain expenses not been reduced.
c For the years ended May 31.
d On July 30, 2007, DWS Money Market Series became a feeder of Cash
Management Portfolio. Expense ratios disclosed prior to December 31, 2007
are for DWS Money Market Series as a stand-alone fund.
* Annualized
** Non annualized
Financial Highlights | 15
HOW TO INVEST IN THE FUND
THE FOLLOWING PAGES TELL YOU HOW TO INVEST IN THE FUND AND WHAT TO EXPECT AS A
SHAREHOLDER. The following pages also tell you about many of the services,
choices and benefits of being a shareholder. You'll also find information on
how to check the status of your account using the method that's most convenient
for you.
If you're investing directly with DWS Scudder, all of this information applies
to you. If you're investing through a "third party provider" - for example, a
workplace retirement plan, financial supermarket or financial advisor - your
provider may have its own policies or instructions and you should follow those.
You can find out more about the topics covered here by speaking with your
FINANCIAL ADVISOR OR A REPRESENTATIVE OF YOUR WORKPLACE RETIREMENT PLAN OR
OTHER INVESTMENT PROVIDER.
How to Buy, Sell and Exchange Shares
BUYING SHARES: Use these instructions to invest directly.
FIRST INVESTMENT ADDITIONAL INVESTMENTS
$100,000 or more for all accounts $1,000 or more for regular accounts
$100 or more for IRAs
$50 or more with an Automatic
Investment Plan
BY MAIL OR EXPRESS MAIL (SEE BELOW)
Send a DWS Scudder investment slip or
- Fill out and sign an application
short note that includes:
- Send it to us at the appropriate
- fund, class name and account number
address, along with an investment
check - check payable to "DWS Scudder"
BY WIRE
- Call (800) 730-1313 for instructions - Call (800) 730-1313 for instructions
- Instruct the wiring bank to transmit - Instruct the wiring bank to transmit
the specified amount to: the specified amount to State Street
State Street Bank and Trust Company Bank and Trust Company with the
225 Franklin Street information stated to the left
Boston, MA 02110
ABA#0110-0002-8
DDA#9902-810-2
Attn: Money Market Series-Managed
Shares #2023
BY PHONE
Not available - Call (800) 730-1313 for instructions
WITH AN AUTOMATIC INVESTMENT PLAN
- Not available - To set up regular investments from a
bank checking account, call
(800) 730-1313
USING QuickBuy
Not available - Call (800) 730-1313 to make sure
QuickBuy is set up on your account; if
it is, you can request a transfer from
your bank account of any amount
between $50 and $250,000
ON THE INTERNET
- Go to - Call (800) 730-1313 to ensure you have
www.moneyfunds.deam-us.db.com electronic services
- Print out a prospectus and a new - Register at www.moneyfunds.deam-
account application us.db.com
- Complete and return the application - Follow the instructions for buying
with your check shares with money from your bank
account
|
REGULAR, EXPRESS, REGISTERED OR CERTIFIED MAIL: Deutsche Asset Management
Institutional Money Funds; Client Services, 210 West 10th Street, Kansas City,
MO 64105-1614
PHONE NUMBER: 1-800-730-1313
How to Buy, Sell and Exchange Shares | 17
EXCHANGING OR SELLING SHARES: Use these instructions to exchange or sell shares
in an account opened directly with DWS Scudder.
EXCHANGING INTO ANOTHER FUND SELLING SHARES
To open a new account: same minimum Some transactions, including most for
as for a first investment over $100,000, can only be ordered in
For exchanges between existing writing with a signature guarantee;
accounts: $1,000 or more please see "Signature Guarantee"
BY PHONE OR WIRE
- Call (800) 730-1313 for instructions - Call (800) 730-1313 for instructions
USING THE AUTOMATED INFORMATION LINE
- Call (800) 730-1313 for instructions - Call (800) 730-1313 for instructions
BY MAIL OR EXPRESS MAIL
(see previous page for address)
Your instructions should include: Your instructions should include:
- the fund, class and account number - the fund, class and account number
you're exchanging out of you're exchanging out of
- the dollar amount or number of shares - the dollar amount or number of shares
you want to exchange you want to exchange
- the name and class of the fund you - your name(s), signature(s) and
want to exchange into address, as they appear on your
account
- your name(s), signature(s) and
address, as they appear on your - a daytime telephone number
account
- a daytime telephone number
WITH AN AUTOMATIC EXCHANGE PLAN WITH AN AUTOMATIC WITHDRAWAL PLAN
- To set up regular exchanges from a - To set up regular withdrawals from a
fund account, call (800) 730-1313 fund account, call (800) 730-1313
USING QuickSell
Not available - Call (800) 730-1313 to make sure
QuickSell is set up on your account; if
it is, you can request a transfer to your
bank account of any amount between
$50 and $250,000
USING CHECKWRITING
Not available - Call (800) 730-1313 for instructions
ON THE INTERNET
- Register at www.moneyfunds.deam- - Register at www.moneyfunds.deam-
us.db.com us.db.com
- Follow the instructions for making - Follow the instructions for making
on-line exchanges on-line redemptions
|
18 | How to Buy, Sell and Exchange Shares
POLICIES YOU SHOULD KNOW ABOUT
Along with the information on the previous pages, the policies below
may affect you as a shareholder. Some of this information, such as
the section on distributions and taxes, applies to all investors,
including those investing through a financial advisor.
If you are investing through a financial advisor or through a
retirement plan, check the materials you received from them about
how to buy and sell shares because particular financial advisors or
other intermediaries may adopt policies, procedures or limitations
that are separate from those described by the fund. Please note that
a financial advisor may charge fees separate from those charged by
the fund and may be compensated by the fund.
Keep in mind that the information in this prospectus applies only to
the shares offered herein. Other share classes are described in
separate prospectuses and have different fees, requirements and
services.
In order to reduce the amount of mail you receive and to help reduce
expenses, we generally send a single copy of any shareholder report
and prospectus to each household. If you do not want the mailing of
these documents to be combined with those for other members of your
household, please contact your financial advisor or call (800)
730-1313.
Financial intermediary support payments
The Advisor, DWS Scudder Distributors, Inc. (the "Distributor")
and/or their affiliates may pay additional compensation, out of
their own assets and not as an additional charge to the fund, to
selected financial advisors in connection with the sale and/or
distribution of fund shares or the retention and/or servicing of
fund investors and fund shares ("revenue sharing"). Such revenue
sharing payments are in addition to any distribution or service fees
payable under any Rule 12b-1 or service plan of the fund, any record
keeping/sub-transfer agency/networking fees payable by the fund
(generally through the Distributor or an affiliate) and/or the
Distributor to certain financial advisors for performing such
services and any sales charge, commissions, non-cash compensation
arrangements expressly permitted under applicable rules of the
Financial Industry Regulatory Authority or other concessions
described in the fee table or elsewhere in this prospectus or the
Statement of Additional Information as
Policies You Should Know About | 19
payable to all financial advisors. For example, the Advisor, the
Distributor and/or their affiliates may compensate financial
advisors for providing the fund with "shelf space" or access to a
third party platform or fund offering list or other marketing
programs, including, without limitation, inclusion of the fund on
preferred or recommended sales lists, mutual fund "supermarket"
platforms and other formal sales programs; granting the Distributor
access to the financial advisor's sales force; granting the
Distributor access to the financial advisor's conferences and
meetings; assistance in training and educating the financial
advisor's personnel; and obtaining other forms of marketing support.
The level of revenue sharing payments made to financial advisors may
be a fixed fee or based upon one or more of the following factors:
gross sales, current assets and/or number of accounts of the fund
attributable to the financial advisor, the particular fund or fund
type or other measures as agreed to by the Advisor, the Distributor
and/or their affiliates and the financial advisors or any
combination thereof. The amount of these revenue sharing payments is
determined at the discretion of the Advisor, the Distributor and/or
their affiliates from time to time, may be substantial, and may be
different for different financial advisors based on, for example,
the nature of the services provided by the financial advisor.
The Advisor, the Distributor and/or their affiliates currently make
revenue sharing payments from their own assets in connection with
the sale and/or distribution of DWS Fund shares or the retention
and/or servicing of investors and DWS Fund shares to financial
advisors in amounts that generally range from .01% up to .50% of
assets of the fund serviced and maintained by the financial advisor,
.10% to .25% of sales of the fund attributable to the financial
advisor, a flat fee of $13,350 up to $500,000, or any combination
thereof. These amounts are subject to change at the discretion of
the Advisor, the Distributor and/or their affiliates. Receipt of, or
the prospect of receiving, this additional compensation may
influence your financial advisor's recommendation of the fund or of
any particular share class of the fund. You should review your
financial advisor's compensation disclosure and/or talk to your
financial advisor to obtain more information on how this
compensation may have influenced your financial advisor's
recommendation of the fund. Additional information regarding these
revenue sharing payments is
20 | Policies You Should Know About
included in the fund's Statement of Additional Information, which is
available to you on request at no charge (see the back cover of this
prospectus for more information on how to request a copy of the
Statement of Additional Information).
The Advisor, the Distributor and/or their affiliates may also make
such revenue sharing payments to financial advisors under the terms
discussed above in connection with the distribution of both DWS
funds and non-DWS funds by financial advisors to retirement plans
that obtain record keeping services from ADP, Inc. on the DWS
Scudder branded retirement plan platform (the "Platform") with the
level of revenue sharing payments being based upon sales of both the
DWS funds and the non-DWS funds by the financial advisor on the
Platform or current assets of both the DWS funds and the non-DWS
funds serviced and maintained by the financial advisor on the
Platform.
It is likely that broker-dealers that execute portfolio transactions
for the fund will include firms that also sell shares of the DWS
funds to their customers. However, the Advisor will not consider
sales of DWS fund shares as a factor in the selection of
broker-dealers to execute portfolio transactions for the DWS funds.
Accordingly, the Advisor has implemented policies and procedures
reasonably designed to prevent its traders from considering sales of
DWS fund shares as a factor in the selection of broker-dealers to
execute portfolio transactions for the fund. In addition, the
Advisor, the Distributor and/or their affiliates will not use fund
brokerage to pay for their obligation to provide additional
compensation to financial advisors as described above.
Policies about transactions
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify and record information that
identifies each person who opens an account. What this means to you:
When you open an account, we will ask for your name, address, date
of birth and other information that will allow us to identify you.
Some or all of this information will be used to verify the identity
of all persons opening an account.
Policies You Should Know About | 21
We might request additional information about you (which may include
certain documents, such as articles of incorporation for companies)
to help us verify your identity and, in some cases, the information
and/or documents may be required to conduct the verification. The
information and documents will be used solely to verify your
identity.
We will attempt to collect any missing required and requested
information by contacting you or your financial advisor. If we are
unable to obtain this information within the time frames established
by the fund, then we may reject your application and order.
The fund will not invest your purchase until all required and
requested identification information has been provided and your
application has been submitted in "good order." After we receive all
the information, your application is deemed to be in good order and
we accept your purchase, you will receive the net asset value per
share next calculated.
If we are unable to verify your identity within time frames
established by the fund, after a reasonable effort to do so, you
will receive written notification.
With certain limited exceptions, only US residents may invest in the
fund.
Because orders placed through a financial advisor must be forwarded
to the transfer agent before they can be processed, you'll need to
allow extra time. Your financial advisor should be able to tell you
approximately when your order will be processed. It is the
responsibility of your financial advisor to forward your order to
the transfer agent in a timely manner.
TRANSACTION PROCESSING. Except as provided below, purchase,
redemption and exchange orders must be received in good order by
4:00 p.m. Eastern time (or prior to the close of the fund, if the
New York Stock Exchange closes early on such date) on a business day
on which the fund is open in order to be effective on that day;
otherwise such orders will be effective on the next business day.
However, on a normal business day that the fund calculates its share
price at 5:00 p.m. Eastern time as provided below, purchase orders
with payment sent by wire and redemption orders with proceeds to be
sent by wire, ACH or by
22 | Policies You Should Know About
check that are communicated by telephone (but not by the Automated
Information Line) and are received in good order by 5:00 p.m.
Eastern time on a business day will be effective on that business
day.
Orders for the purchase of shares by wire transfer will normally be
effective at the share price next computed after receipt of the wire
transfer of the amount to be invested. If a wire transfer purchase
order is received in good order before 5:00 p.m. Eastern time, it
will normally receive the dividend for that day.
Shareholders known to the fund may notify Shareholder Services in
advance of their wire transfer purchase by calling Shareholder
Services prior to the 5:00 p.m. Eastern time cut-off time and
providing the amount of the order. The investor will receive a
confirmation number for the trade. If the fund receives the wire
transfer before the close of the Federal Funds wire system, the
trade will be entitled to that day's dividend. If the fund does not
receive the wire transfer by the close of the Federal Funds wire
system, the trade may not receive the dividend for that day and,
depending upon the circumstances, the trade may receive the dividend
for the following business day or may be canceled or rejected and,
in any case, the investor may be charged for any losses or fees that
result, which may be paid by deductions from their account or
otherwise. The fund's Distributor may refuse to allow any investor
to trade with the fund in this manner and may require that the wire
transfer of purchase proceeds be received before the trade is
considered in good order.
Investments by check will be effective on the business day following
receipt and will earn dividends the following business day. If you
pay for shares by check and the check fails to clear, we have the
right to cancel your order, hold you liable or charge you or your
account for any losses or fees the fund or its agents have incurred.
Orders processed through dealers or other financial services firms
via Fund/SERV will be effected at the share price calculated on the
trade day (normally the date the order is received). Purchases
processed via Fund/SERV will begin earning dividends on the day the
fund receives the payment (typically the next business day). For
redemptions processed via Fund/SERV, you generally will receive
dividends accrued up to, but not including, the business day that
payment for your shares is made.
Policies You Should Know About | 23
When selling shares, shareholders generally receive dividends up to,
but not including, the business day following the day on which the
shares were sold. To sell shares, you must state whether you would
like to receive the proceeds by wire or check.
To sell by wire, contact Shareholder Services before 5:00 p.m.
Eastern time. After you inform Shareholder Services of the amount of
your redemption, you will receive a trade confirmation number. If
the fund receives a sell request before 5:00 p.m. Eastern time and
the request calls for proceeds to be sent out by wire, the proceeds
will normally be wired on the same day. However, the shares sold
will not earn that day's dividend.
As noted elsewhere in the prospectus, proceeds of a redemption may
be delayed. The ability to receive "same day" wire redemption
proceeds can be affected by a variety of circumstances including the
time that the request is made, the level of redemption requests and
purchase orders and general market conditions. Requests for same day
wire that are received earlier in the day will be given priority
over requests received later in the day in the event that it is
necessary to limit the amount of same day wire redemptions.
SUB-MINIMUM BALANCES. The fund may close your account and send you
the proceeds if your balance falls below $100,000; we will give you
60 days' notice so you can either increase your balance or close
your account (these policies don't apply to most retirement
accounts).
THE AUTOMATED INFORMATION LINE IS AVAILABLE 24 HOURS A DAY BY
CALLING (800) 730-1313. You can use our automated phone services to
get information on DWS funds generally and on accounts held directly
at DWS Scudder. You can also use this service to make exchanges and
to purchase and sell shares.
QUICKBUY AND QUICKSELL let you set up a link between a DWS fund
account and a bank account. Once this link is in place, you can move
money between the two with a phone call. You'll need to make sure
your bank has Automated Clearing House (ACH) services. Transactions
take two to three days to be completed and there is a $50 minimum
and a $250,000 maximum. To set up QuickBuy or QuickSell on a new
account, see the account application; to add it to an existing
account, call (800) 730-1313.
24 | Policies You Should Know About
TELEPHONE AND ELECTRONIC TRANSACTIONS. Generally, you are
automatically entitled to telephone and electronic transaction
privileges, but you may elect not to have them when you open your
account or by contacting Shareholder Services at (800) 730-1313 at a
later date.
Since many transactions may be initiated by telephone or
electronically, it's important to understand that as long as we take
reasonable steps to ensure that an order to purchase or redeem
shares is genuine, such as recording calls or requesting
personalized security codes or other information, we are not
responsible for any losses that may occur as a result. For
transactions conducted over the Internet, we recommend the use of a
secure Internet browser. In addition, you should verify the accuracy
of your confirmation statements immediately after you receive them.
CHECKWRITING enables you to sell shares of the fund by writing a
check. Your investment keeps earning dividends until your check
clears. Please note that we will not accept checks for less than
$1,000. Please note that you should not write checks for more than
$5,000,000. Note as well that we can't honor any check larger than
your balance at the time the check is presented to us. It is not a
good idea to close out an account using a check because the account
balance could change between the time you write the check and the
time it is processed. Please keep in mind that if you make a
purchase by check and that check has not yet cleared, those funds
will not be available for immediate redemption.
THE FUND ACCEPTS AUTOMATED CLEARING HOUSE ("ACH") debit entries for
accounts that have elected the checkwriting redemption privilege.
Upon receipt of an ACH debit entry referencing your account number
you authorize us to redeem shares in your account to pay the entry
to the third party originating the debit. Your fund account
statement will show all ACH debit entries in your account. IN CASE
OF ERRORS OR QUESTIONS ABOUT YOUR TRANSACTIONS OR PRE-AUTHORIZED
TRANSFERS please contact your financial advisor as soon as possible
if you believe your statement reflects an improper charge or if you
need more information about an ACH debit entry transaction. Your
financial advisor must contact the Shareholder Service Agent within
sixty (60) days of the fund sending you the first fund account
statement on which an improper charge appears.
Policies You Should Know About | 25
THE FUND DOES NOT ISSUE SHARE CERTIFICATES. However, if you
currently have shares in certificated form, you must include the
share certificates properly endorsed or accompanied by a duly
executed stock power when exchanging or redeeming shares. You may
not exchange or redeem shares in certificate form by telephone or
via the Internet.
WHEN YOU ASK US TO SEND OR RECEIVE A WIRE, please note that while we
don't charge a fee to send or receive wires, it's possible that your
bank may do so. Wire transactions are generally completed within 24
hours. The fund can only send wires of $1,000 or more and accept
wires of $50 or more.
THE FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by check,
bank or Federal Funds wire transfer or by electronic bank transfer.
Please note that the fund does not accept cash, money orders,
traveler's checks, starter checks, third party checks (except checks
for retirement plan asset transfers and rollovers or for Uniform
Gifts to Minors Act/Uniform Transfers to Minors Act accounts),
checks drawn on foreign banks or checks issued by credit card
companies or Internet-based companies. Thus, subject to the
foregoing exceptions for certain third party checks, checks that are
otherwise permissible must be drawn by the account holder on a
domestic bank and must be payable to the fund.
SIGNATURE GUARANTEE. When you want to sell more than $100,000 worth
of shares or send proceeds to a third party or to a new address,
you'll usually need to place your order in writing and include a
signature guarantee. However, if you want money wired to a bank
account that is already on file with us, you don't need a signature
guarantee. Also, generally you don't need a signature guarantee for
an exchange, although we may require one in certain other
circumstances.
A signature guarantee is simply a certification of your signature -
a valuable safeguard against fraud. You can get a signature
guarantee from an eligible guarantor institution, including
commercial banks, savings and loans, trust companies, credit unions,
member firms of a national stock exchange or any member or
participant of an approved signature guarantor program. Note that
you can't get a signature guarantee from a notary public and we must
be provided the original guarantee.
26 | Policies You Should Know About
SELLING SHARES OF TRUST ACCOUNTS AND BUSINESS OR ORGANIZATION
ACCOUNTS may require additional documentation. Please call (800)
730-1313 or contact your financial advisor for more information.
MONEY FROM SHARES YOU SELL is normally sent out within one business
day of the business day that your redemption order is effective.
There are circumstances when it could be longer, including, but not
limited to, when you are selling shares you bought recently by
check or ACH (the funds will be placed under a 10 calendar day hold
to ensure good funds) or when unusual circumstances prompt the SEC
to allow further delays. Certain expedited redemption processes
(e.g., redemption proceeds by wire) may also be delayed or
unavailable when you are selling shares recently purchased by check
or ACH or in the event of closing of the Federal Reserve wire
payment system. The fund reserves the right to suspend or postpone
redemptions as permitted pursuant to Section 22(e) of the Investment
Company Act of 1940. Generally, those circumstances are when 1) the
New York Stock Exchange is closed other than customary weekend or
holiday closings; 2) trading on the New York Stock Exchange is
restricted; 3) an emergency exists which makes the disposal of
securities owned by the fund or the fair determination of the value
of the fund's net assets not reasonably practicable; or 4) the SEC,
by order, permits the suspension of the right of redemption.
Redemption payments by wire may also be delayed in the event of a
non-routine closure of the Federal Reserve wire payment system. For
additional rights reserved by the fund, please see "Other rights we
reserve."
You may obtain additional information about other ways to sell your
shares by contacting your financial advisor.
SHORT-TERM TRADING. Since money market funds hold short-term
instruments and are intended to provide liquidity to shareholders,
the Advisor does not monitor or limit short-term or excessive
trading activity in the fund and, accordingly, the Board of the fund
has not approved any policies and procedures designed to limit this
activity. However, the fund reserves the right to and may reject or
cancel a purchase or exchange order into the fund for any reason,
including if, in the opinion of the Advisor, there appears to be a
pattern of short-term or excessive trading by an investor in another
DWS fund.
Policies You Should Know About | 27
How the fund calculates share price
To calculate net asset value, or NAV, each share class uses the
following equation:
TOTAL ASSETS - TOTAL LIABILITIES
----------------------------------------- = NAV
TOTAL NUMBER OF SHARES OUTSTANDING
|
The price at which you buy and sell shares is based on the NAV per
share next calculated after the order is received by the transfer
agent.
IN VALUING SECURITIES, we typically use amortized cost (the method
used by most money market funds) to account for any premiums or
discounts above or below the face value of any securities the fund
buys, and round the per share NAV to the nearest whole cent.
THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
(the "Exchange") is open. Normally, the fund calculates its share
price once every business day at 5:00 p.m. Eastern time. The close
of regular trading on the Exchange is typically 4:00 p.m. Eastern
time, but sometimes earlier, as in the case of scheduled half-day
trading or unscheduled suspensions of trading. In the event of
scheduled partial day trading or unscheduled suspensions of trading
on the Exchange, the calculation of share price shall be as of the
close of trading on the Exchange. In such instances, the latest time
for receipt of wire purchase transactions entitled to receive same
day dividend treatment and for receipt of redemption orders for same
day wire transfer of proceeds will be the earlier of (a) 5:00 p.m.
Eastern time or (b) the early closing time of the Exchange. The fund
seeks to maintain a stable $1.00 share price.
The fund may, but is not required to, accept certain types of
purchase and redemption orders (not including exchanges) on days
that the Exchange is closed, or beyond an Exchange early closing
time (referred to as a "Limited Trading Period") if: (a) the Federal
Reserve system is open, (b) the primary trading markets for the
fund's portfolio instruments are open and (c) the Advisor believes
there will be adequate liquidity in the short-term markets. During
any such Limited Trading Period, the fund will only accept purchase
orders by wire with advance telephone notification and telephone
redemption orders with proceeds to be sent by wire, ACH or check and
will not accept orders by any other means. (Automated Telephone Line
orders are not
28 | Policies You Should Know About
permitted.) If redemption proceeds are requested by ACH or check,
the transmission of the ACH payment or the mailing of the check, as
the case may be, will be delayed by at least one business day in
comparison to normal trading periods. Orders submitted by other
means will be processed on the next day that the Exchange is open.
The calculation of share price will be as set forth in the
prospectus for normal trading days. Orders must be submitted by the
cut-off times for receipt of wire purchases entitled to that day's
dividend and for receipt of telephone redemption orders for same day
wire transfer, which will be the earlier of: (a) the times set forth
in the prospectus for normal trading days or (b) such earlier times
that the fund determines based on the criteria described above. If
redemption proceeds are requested by ACH or check, orders must be
received prior to the calculation of share price. Please call (877)
237-1131 or visit our Web site at www.moneyfunds.deam-us.db.com for
additional information about whether the fund will be open for
business on a particular day. Information concerning the intention
of the fund to be open for a Limited Trading Period will be
available at least one business day prior to the applicable day that
the Exchange is closed or is closing early in the case of scheduled
closings and as soon as practical in the case of unscheduled
closings.
Other rights we reserve
You should be aware that we may do any of the following:
- withdraw or suspend the offering of shares at any time
- withhold a portion of your distributions and redemption proceeds
for federal income tax purposes if we have been notified by the
IRS that you are subject to backup withholding or if you fail to
provide us with a correct taxpayer ID number and certain
certifications including certification that you are not subject
to backup withholding
- reject a new account application if you don't provide any
required or requested identifying information, or for any other
reason
Policies You Should Know About | 29
- refuse, cancel, limit or rescind any purchase or exchange order,
without prior notice; freeze any account (meaning you will not be
able to purchase fund shares in your account); suspend account
services; and/or involuntarily redeem your account if we think that
the account is being used for fraudulent or illegal purposes; one or
more of these actions will be taken when, at our sole discretion,
they are deemed to be in the fund's best interests or when the fund
is requested or compelled to do so by governmental authority or by
applicable law
- close and liquidate your account if we are unable to verify your
identity, or for other reasons; if we decide to close your
account, your fund shares will be redeemed at the net asset value
per share next calculated after we determine to close your
account (less applicable redemption fee, if any); you may
recognize a gain or loss on the redemption of your fund shares
and you may incur a tax liability
- change, add or withdraw various services, fees and account
policies (for example, we may adjust the fund's investment
minimums at any time)
UNDERSTANDING DISTRIBUTIONS AND TAXES
The fund intends to distribute to its shareholders virtually all of
its net earnings. The fund can earn money in two ways: by receiving
interest, dividends or other income from securities it holds and by
selling securities for more than it paid for them. (The fund's
earnings are separate from any gains or losses stemming from your
own purchase and sale of shares.) The fund may not always pay a
dividend or distribution for a given period.
THE FUND INTENDS TO DECLARE DIVIDENDS DAILY AND PAY THEM MONTHLY.
The fund may take into account capital gains and losses (other than
net long-term capital gains) in its daily dividend declarations. The
fund may make additional distributions for tax purposes, if
necessary.
Dividends or distributions declared to shareholders of record in the
last quarter of a given calendar year are treated for federal income
tax purposes as if they were received on December 31 of that year,
provided such dividends or distributions are paid by the end of the
following January.
THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS
Because each shareholder's tax situation is unique, ask your tax professional
about the tax consequences of your investments, including any state and local
tax consequences.
30 | Understanding Distributions and Taxes
For federal income tax purposes, income and capital gains
distributions are generally taxable to shareholders. However,
dividends and distributions received by retirement plans qualifying
for tax exemption under federal income tax laws generally will not
be taxable.
YOU CAN CHOOSE HOW TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS. You
can have them all automatically reinvested in fund shares (at NAV),
sent to you by check or wired to your bank account of record. Tell
us your preference on your application. If you don't indicate a
preference, your dividends and distributions will all be reinvested.
For retirement plans, reinvestment is the only option.
Distributions are treated the same for federal income tax purposes
whether you receive them in cash or reinvest them in additional
shares. For federal income tax purposes, an exchange is treated the
same as a sale.
Because the fund seeks to maintain a stable share price, you are
unlikely to have capital gains or losses when you sell fund shares.
For federal income tax purposes, distributions of investment income
are taxable as ordinary income. The fund does not expect to make
distributions that are eligible for taxation as long-term capital
gains or as qualified dividend income.
The use of a master/feeder structure could affect the amount, timing
and character of distributions, and therefore, may increase the
amount of taxes payable to shareholders.
Your fund will send you detailed federal income tax information
every January. These statements tell you the amount and the federal
income tax classification of any dividends or distributions you
received. They also have certain details on your purchases and sales
of shares.
The above discussion is applicable to shareholders who are US
persons. If you are a non-US person, please consult your own tax
advisor with respect to the US tax consequences to you of an
investment in the fund.
Understanding Distributions and Taxes | 31
APPENDIX
--------------------------------------------------------------------------------
Hypothetical Expense Summary
|
Using the annual fund operating expense ratios presented in the fee
tables in the fund prospectus, the Hypothetical Expense Summary
shows the estimated fees and expenses, in actual dollars, that would
be charged on a hypothetical investment of $10,000 in the fund held
for the next 10 years and the impact of such fees and expenses on
fund returns for each year and cumulatively, assuming a 5% return
for each year. The tables also assume that all dividends and
distributions are reinvested. The annual fund expense ratios shown
are net of any contractual fee waivers or expense reimbursements, if
any, for the period of the contractual commitment. Also, please note
that if you are investing through a third party provider, that
provider may have fees and expenses separate from those of the fund
that are not reflected here. Mutual fund fees and expenses fluctuate
over time and actual expenses may be higher or lower than those
shown.
The Hypothetical Expense Summary should not be used or construed as
an offer to sell, a solicitation of an offer to buy or a
recommendation or endorsement of any specific mutual fund. You
should carefully review the fund's prospectus to consider the
investment objectives, risks, expenses and charges of the fund prior
to investing.
32 | Appendix
DWS Money Market Series - Managed Shares
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
1 5.00% 0.20% 4.80% $ 10,480.00 $ 20.48
2 10.25% 0.20% 9.83% $ 10,983.04 $ 21.46
3 15.76% 0.28% 15.01% $ 11,501.44 $ 31.48
4 21.55% 0.28% 20.44% $ 12,044.31 $ 32.96
5 27.63% 0.28% 26.13% $ 12,612.80 $ 34.52
6 34.01% 0.28% 32.08% $ 13,208.12 $ 36.15
7 40.71% 0.28% 38.32% $ 13,831.55 $ 37.86
8 47.75% 0.28% 44.84% $ 14,484.40 $ 39.64
9 55.13% 0.28% 51.68% $ 15,168.06 $ 41.51
10 62.89% 0.28% 58.84% $ 15,883.99 $ 43.47
TOTAL $ 339.53
|
Appendix | 33
TO GET MORE INFORMATION
SHAREHOLDER REPORTS - These include commentary from the fund's management team
about recent market conditions and the effects of the fund's strategies on its
performance. They also have detailed performance figures, a list of everything
the fund owns, and its financial statements. Shareholders get these reports
automatically.
STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
fund's features and policies, including additional risk information. The SAI is
incorporated by reference into this document (meaning that it's legally part of
this prospectus).
For a free copy of any of these documents or to request other information about
the fund, call (800) 730-1313, or contact DWS Scudder at the address listed
below. The fund's SAI and shareholder reports are also available through the
DWS Scudder Web site at www.moneyfunds.deam-us.db.com. These documents and
other information about the fund are available from the EDGAR Database on the
SEC's Internet site at www.sec.gov. If you like, you may obtain copies of this
information, after paying a copying fee, by e-mailing a request to
publicinfo@sec.gov or by writing the SEC at the address listed below. You can
also review and copy these documents and other information about the fund,
including the fund's SAI, at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the SEC's Public Reference Room may be
obtained by calling (800) SEC-0330.
DWS SCUDDER SEC DISTRIBUTOR
---------------------- -------------------- -------------------------------
PO Box 219210 100 F Street, N.E. DWS Scudder Distributors, Inc.
Kansas City, MO Washington, D.C. 222 South Riverside Plaza
64121-9210 20549-0102 Chicago, IL 60606-5808
WWW.MONEYFUNDS.DEAM- WWW.SEC.GOV (800) 621-1148
US.DB.COM (800) SEC-0330
(800) 730-1313
|
SEC FILE NUMBER:
DWS Money Market Trust DWS Money Market Series 811-03495
|
(05/01/08) 23-2-106
[RECYCLE GRAPHIC APPEARS HERE]
[Logo]DWS
SCUDDER
Deutsche Bank Group
MAY 1, 2008
PROSPECTUS
PREMIUM CLASS S SHARES
PRIME RESERVE CLASS S SHARES
DWS MONEY MARKET SERIES
As with all mutual funds, the Securities and Exchange Commission (SEC) does not
approve or disapprove these shares or determine whether the information in this
prospectus is truthful or complete. It is a criminal offense for anyone to
inform you otherwise.
ONE GLOBAL FORCE. ONE FOCUS. YOU. [DWS SCUDDER Logo]
Deutsche Bank Group
CONTENTS
HOW THE FUND WORKS
4 The Fund's Main Investment
Strategy
6 The Main Risks of Investing in
the Fund
9 The Fund's Performance
History
10 How Much Investors Pay
12 Other Policies and Risks
12 Who Manages and Oversees
the Fund
15 Financial Highlights
|
HOW TO INVEST IN THE FUND
18 How to Buy, Sell and
Exchange Shares
20 Policies You Should Know
About
31 Understanding Distributions
and Taxes
33 Appendix
|
HOW THE FUND WORKS
On the next few pages, you'll find information about the fund's investment
objective, the main strategies it uses to pursue that objective and the main
risks that could affect performance.
Whether you are considering investing in the fund or are already a shareholder,
you'll want to LOOK THIS INFORMATION OVER CAREFULLY. You may want to keep it on
hand for reference as well.
CLASS S shares are generally only available to new investors through fee-based
programs of investment dealers that have special agreements with the fund's
distributor, through certain group retirement plans and through certain
registered investment advisors. These dealers and advisors typically charge
ongoing fees for services they provide.
Remember that mutual funds are investments, not bank deposits. They're not
insured or guaranteed by the FDIC or any other government agency. Their share
prices will go up and down, and you could lose money by investing in them.
The fund is a money fund, meaning that is seeks to maintain a stable $1.00
share price to preserve the value of your investment.
You can find DWS prospectuses on the Internet at WWW.DWS-SCUDDER.COM (the Web
site does not form a part of this prospectus).
Premium Prime Reserve
Class S Class S
ticker symbol SPMXX SCRXX
fund number 2402 2309
DWS MONEY MARKET SERIES
|
THE FUND'S MAIN INVESTMENT STRATEGY
The fund is a feeder fund that invests substantially all of its
assets in a "master portfolio," the Cash Management Portfolio (the
"Portfolio"), which will invest directly in securities and other
instruments. References to the fund may refer to actions undertaken
by the Portfolio.
The fund's goal is to seek a high level of current income
consistent with liquidity and the preservation of capital. The
fund, through the Portfolio, seeks to achieve its goal by investing
in high quality short-term money market instruments.
While the fund's Advisor gives priority to earning income and
maintaining the value of the fund's principal at $1.00 per share,
all money market instruments, including US government obligations,
can change in value when interest rates change or an issuer's
creditworthiness changes.
The fund maintains a dollar-weighted average maturity of 90 days or
less. The fund is managed in accordance with Rule
2a-7 under the Investment Company Act of 1940, as amended.
The fund follows policies designed to maintain a stable share
price:
- Fund securities are valued in US dollars and have remaining
maturities of 397 days (about 13 months) or less at the time of
purchase. The fund may also invest in securities that have
features that have the effect of reducing their maturities to
397 days or less at the time of purchase
- The fund buys US government debt obligations, money market
instruments and other debt obligations that at the time of
purchase:
4 | DWS Money Market Series
- have received one of the two highest short-term ratings from
two nationally recognized statistical rating organizations
(NRSROs) or one NRSRO if that NRSRO is the only NRSRO that
rates such obligations;
- are unrated, but are deemed by the Advisor to be of comparable
quality to one of the two highest short-term ratings; or
- have no short-term rating, but are rated in one of the top
three highest long-term rating categories by a NRSRO or are
deemed by the Advisor to be of comparable quality.
Principal investments
The fund invests in the following investments through the
Portfolio.
The fund may invest in high quality, short-term, US dollar
denominated money market instruments paying a fixed, variable or
floating interest rate. These include:
- Debt obligations issued by US and foreign banks, financial
institutions, corporations or other entities, including
certificates of deposit, euro-time deposits, commercial paper
(including asset-backed commercial paper), notes, funding
agreements and US government securities. Securities that do not
satisfy the maturity restrictions for a money market fund may be
specifically structured so that they are eligible investments
for money market funds. For example, some securities have
features which have the effect of shortening the security's
maturity.
- US government securities that are issued or guaranteed by the US
Treasury, or by agencies or instrumentalities of the US
government.
- Repurchase agreements, which are agreements to buy securities at
one price, with a simultaneous agreement to sell back the
securities at a future date at an agreed-upon price.
- Asset-backed securities, which are generally participations in a
pool of assets whose payment is derived from the payments
generated by the underlying assets. Payments on the asset-backed
security generally consist of interest and/
or principal.
DWS Money Market Series | 5
Under normal market conditions the fund will invest more than 25%
of its total assets in the obligations of banks and other financial
institutions.
The fund may invest up to 10% of its total assets in other money
market mutual funds in accordance with applicable regulations.
Working in consultation with the portfolio managers, a credit team
screens potential securities and develops a list of those that the
fund may buy. The portfolio managers, looking for attractive yield
and weighing considerations such as credit quality, economic
outlooks and possible interest rate movements, then decide which
securities on this list to buy. The portfolio managers may adjust
the fund's exposure to interest rate risk, typically seeking to
take advantage of possible rises in interest rates and to preserve
yield when interest rates appear likely to fall.
THE MAIN RISKS OF INVESTING IN THE FUND
There are several risk factors that could reduce the yield you get
from the fund or cause the fund's performance to trail that of
other investments.
The fund is exposed to the risk factors below even though the
Portfolio, not the fund, invests directly in the individual
securities.
INTEREST RATE RISK. Money market instruments, like all debt
securities, face the risk that the securities will decline in value
because of changes in interest rates. Generally, investments
subject to interest rate risk will decrease in value when interest
rates rise and increase in value when interest rates decline. To
minimize such price fluctuations, the fund limits the
dollar-weighted average maturity of the securities held by the fund
to 90 days or less. Generally, the price of short-term investments
fluctuates less than longer-term investments. Income earned on
floating or variable rate securities may vary as interest rates
decrease or increase.
CREDIT RISK. A money market instrument's credit quality depends on
the issuer's ability to pay interest on the security and repay the
debt; the lower the credit rating, the greater the risk that the
security's issuer will default, or fail to meet its payment
obligations. The credit risk of a security may also depend on the
credit quality of any bank or financial institution
6 | DWS Money Market Series
that provides credit enhancement for it. To minimize credit risk,
the fund only buys high quality securities. Also, the fund only
buys securities with remaining maturities of 397 days
(approximately 13 months) or less. This reduces the risk that the
issuer's creditworthiness will change, or that the issuer will
default on the principal and interest payments of the obligation.
Additionally, some securities issued by US government agencies or
instrumentalities are supported only by the credit of that agency
or instrumentality. There is no guarantee that the US government
will provide support to such agencies or instrumentalities and such
securities may involve risk of loss of principal and interest.
Securities that rely on third party guarantors to raise their
credit quality could fall in price or go into default if the
financial condition of the guarantor deteriorates.
MARKET RISK. Although individual securities may outperform the
market, the entire market may decline as a result of rising
interest rates, regulatory developments or deteriorating economic
conditions.
SECURITY SELECTION RISK. While the fund invests in short-term
securities, which by their nature are relatively stable
investments, the risk remains that the securities in which the fund
invests will not perform as expected. This could cause the fund's
returns to lag behind those of similar money market mutual funds.
REPURCHASE AGREEMENT RISK. A repurchase agreement exposes the fund
to the risk that the party that sells the securities may default on
its obligation to repurchase them. In this circumstance, the fund
can lose money because:
- it cannot sell the securities at the agreed-upon time and price;
or
- the securities lose value before they can be sold.
The fund seeks to reduce this risk by monitoring the
creditworthiness of the sellers with whom it enters into repurchase
agreements. The fund also monitors the value of the securities to
ensure that they are at least equal to the total amount of the
repurchase obligations, including interest and accrued interest.
DWS Money Market Series | 7
CONCENTRATION RISK. Because the fund will invest more than 25% of
its total assets in the obligations of banks and other financial
institutions, it may be vulnerable to setbacks in that industry.
Banks and other financial institutions are highly dependent on
short-term interest rates and can be adversely affected by
downturns in the US and foreign economies or changes in banking
regulations.
PREPAYMENT RISK. A bond issuer, such as an issuer of asset-backed
securities, may retain the right to pay off a high yielding bond
before it comes due. In that event, the fund may have to reinvest
the proceeds at lower interest rates. Thus, prepayment may reduce
the fund's income. It may also create a capital gains tax
liability, because bond issuers usually pay a premium for the right
to pay off bonds early.
FOREIGN INVESTMENT RISK. The fund may invest in money market
instruments of foreign issuers that are denominated in US dollars.
Foreign investments involve certain special risks, such as
unfavorable political and legal developments, limited financial
information, regulatory risk and economic and financial
instability.
An investment in the fund is not insured or guaranteed by the FDIC
or any other government agency. Although the fund seeks to preserve
the value of your investment at $1.00 per share, this share price
isn't guaranteed and you could lose money by investing in the fund.
8 | DWS Money Market Series
THE FUND'S PERFORMANCE HISTORY
While a fund's past performance isn't necessarily a sign of how it will do in
the future, it can be valuable for an investor to know.
The bar chart shows how the performance of the fund has varied from year to
year, which may give some idea of risk. The table shows how the fund's returns
over different periods average out. The "total return" of a fund is the change
in the value of an investment in the fund over a given period. Average annual
returns are calculated by averaging the year-by-year returns of the fund over a
given period. All figures include the effects of the fund's expenses and assume
reinvestment of dividends and distributions. As always, past performance is no
guarantee of future results.
The 7-DAY YIELD, which is often referred to as the "current yield," is the
income generated by the fund over a seven-day period. This amount is then
annualized, which means that we assume the fund generates the same income every
week for a year. To learn the current yield, investors may call (800) 728-3337.
The inception date for Premium Class S is August 4, 1997 and for Prime Reserve
Class S the inception date is October 15, 1998. Performance figures before
these dates for each share class reflect the historical performance of the
fund's original share class, DWS Money Market Series - Managed Shares and, in
the case of the Prime Reserve Class S shares, are adjusted to reflect the
higher gross total annual operating expenses of each class. Managed Shares are
offered in a different prospectus.
Effective July 30, 2007, some of the fund's investment strategies changed. The
fund's past performance would have been different if the fund was managed using
the current strategies.
DWS Money Market Series
ANNUAL TOTAL RETURN (%) AS OF 12/31 EACH YEAR - Premium Class S
[GRAPHIC APPEARS HERE]
5.46 5.20 6.40 3.93 1.54 0.89 1.19 3.18 5.01 5.30
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
|
2008 TOTAL RETURN AS OF MARCH 31: 0.97%
FOR THE PERIODS INCLUDED IN THE BAR CHART:
BEST QUARTER: 1.63%, Q3 2000 WORST QUARTER: 0.19%, Q3 2003
|
AVERAGE ANNUAL TOTAL RETURNS (%) as of 12/31/2007
1 YEAR 5 YEARS 10 YEARS
Premium Class S 5.30 3.10 3.79
Prime Reserve Class S 5.21 2.97 3.61
|
Total returns would have been lower if operating expenses hadn't been
reduced.
DWS Money Market Series | 9
HOW MUCH INVESTORS PAY
The table below describes the fees and expenses that you may pay if you buy and
hold fund shares. This information doesn't include any fees that may be charged
by your financial advisor.
PREMIUM PRIME RESERVE
FEE TABLE CLASS S CLASS S
SHAREHOLDER FEES, paid directly from
your investment None None
______________________________________
ANNUAL OPERATING EXPENSES, deducted
from fund assets
______________________________________ _____ _____
Management Fee1 0.13% 0.13%
Distribution/Service (12b-1) Fee None None
Other Expenses2 0.17 0.25
TOTAL ANNUAL OPERATING EXPENSES3 0.30 0.38
Less Fee Waiver/Expense
Reimbursement4,5 0.02 0.01
NET ANNUAL OPERATING EXPENSES6 0.28 0.37
|
1 Effective July 30, 2007 the fund became a feeder fund of Cash Management
Portfolio. The management fee is paid at the Portfolio level. Restated on
an annualized basis to reflect fee changes that took place on August 1,
2007.
2 "Other Expenses" include an administrative services fee paid to the Advisor
in the amount of 0.10% from the fund and 0.03% from the Portfolio.
3 Information on the annual operating expenses reflects the expenses of both
the fund and the Master Portfolio, in which the fund invests its assets.
4 The Portfolio's Advisor has contractually agreed through July 29, 2010 to
waive all or a portion of its management fee and reimburse or pay certain
operating expenses (excluding certain expenses such as extraordinary
expenses, taxes, brokerage and interest expenses) to the extent necessary
to maintain the annual expenses of the Portfolio at 0.15% of the
Portfolio's average daily net assets. (A further discussion of the
relationship between the fund and the Portfolio appears in the "Who Manages
and Oversees the Fund - Organizational Structure" section of this
prospectus.)
5 Through July 29, 2010, the Advisor has contractually agreed to waive all or
a portion of its administrative services fee and reimburse or pay operating
expenses of the fund to the extent necessary to maintain the fund's total
operating expenses at 0.28% for Premium Class S shares and 0.37% for Prime
Reserve Class S shares, excluding certain expenses such as extraordinary
expenses, taxes, brokerage and interest expenses.
6 Effective February 5, 2008, the Advisor has voluntarily agreed to waive
0.13% of the fund's total operating expenses. This voluntary waiver or
reimbursement may be terminated at any time at the option of the Advisor.
10 | DWS Money Market Series
Based on the costs above (including one year of capped expenses in the "1 Year"
period and two years of capped expenses in the "3 Years," "5 Years" and "10
Years" periods), this example helps you compare the expenses of the fund to
those of other mutual funds. This example assumes operating expenses remain the
same. It also assumes that you invested $10,000, earned 5% annual returns and
reinvested all dividends and distributions and sold your shares at the end of
each period. This is only an example; actual expenses will be different.
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Premium Class S
shares $29 $ 92 $165 $377
Prime Reserve
Class S shares 38 120 211 478
|
DWS Money Market Series | 11
OTHER POLICIES AND RISKS
While the previous pages describe the main points of the fund's
strategy and risks, there are a few other issues to know about:
- Although major changes tend to be infrequent, the fund's Board
could change the fund's investment objective without seeking
shareholder approval.
For more information
This prospectus doesn't tell you about every policy or risk of
investing in the fund.
If you want more information on the fund's allowable securities and
investment practices and the characteristics and risks of each one,
you may want to request a copy of the Statement of Additional
Information (the back cover tells you how to do this).
Keep in mind that there is no assurance that the fund will achieve
its objective.
A complete list of the fund's portfolio holdings is posted as of
each month end on or after the 14th day of the following month on
www.dws-scudder.com (the Web site does not form a part of this
prospectus). This posted information generally remains accessible at
least until the date on which the fund files its Form N-CSR or N-Q
with the Securities and Exchange
Commission for the period that includes the date as of which the
posted information is current. The fund may also post on the Web
site, on a more frequent basis, a percentage breakdown of the
holdings of the fund by type of security. The fund's Statement of
Additional Information includes a description of the fund's policies
and procedures with respect to the disclosure of the fund's
portfolio holdings.
WHO MANAGES AND OVERSEES THE FUND
The investment advisor
Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), with headquarters at 345 Park Avenue, New York, NY
10154, is the investment advisor for the fund and the Portfolio.
Under the oversight of the Board, the Advisor makes
12 | Other Policies and Risks
investment decisions, buys and sells securities for the fund and the
Portfolio and conducts research that leads to these purchase and
sale decisions. The Advisor provides a full range of global
investment advisory services to institutional and retail clients.
DWS Scudder is part of Deutsche Asset Management, which is the
marketing name in the US for the asset management activities of
Deutsche Bank AG, DIMA, Deutsche Bank Trust Company Americas and DWS
Trust Company.
Deutsche Asset Management is a global asset management organization
that offers a wide range of investing expertise and resources,
including hundreds of portfolio managers and analysts and an office
network that reaches the world's major investment centers. This
well-resourced global investment platform brings together a wide
variety of experience and investment insight across industries,
regions, asset classes and investing styles.
The Advisor is an indirect, wholly owned subsidiary of Deutsche Bank
AG. Deutsche Bank AG is a major global banking institution that is
engaged in a wide range of financial services, including investment
management, mutual funds, retail, private and commercial banking,
investment banking and insurance.
MANAGEMENT FEE. The Advisor receives a management fee from the
Portfolio. Pursuant to the master/feeder structure noted earlier in
this prospectus, for the most recent fiscal year, the Portfolio paid
0.10% (reflects the effects of expense limitations and/or fee
waivers then in effect) as a percentage of average daily net assets.
Effective August 1, 2007, the Portfolio pays the Advisor a fee,
calculated daily and paid monthly, at the annual rate of 0.150% of
the first $3 billion of the Portfolio's average daily net assets,
0.1325% on the next $4.5 billion of the Portfolio's average daily
net assets, and 0.120% thereafter. The Advisor received a management
fee from the fund for the period from June 1, 2007 through July 29,
2007. The management fee paid by the fund for the most recent fiscal
year was 0.00% of the fund's average daily net assets, which
reflects the effect of expense limitations and/or fee waivers then
in effect.
Who Manages and Oversees the Fund | 13
A discussion regarding the basis for the Board's approval of the
investment management agreements for the Portfolio and the fund,
respectively, is contained in the most recent shareholder report for
the annual period ended December 31 (see "Shareholder reports" on
the back cover).
Under a separate administrative services agreement between the fund
and the Advisor, the fund pays the Advisor for providing most of the
fund's administrative services. In addition, the Portfolio has a
separate administrative services agreement with the Advisor pursuant
to which the Portfolio pays the Advisor for certain administrative
services.
ORGANIZATIONAL STRUCTURE. The fund is a "feeder fund" that invests
substantially all of its assets in a "master portfolio." The fund
and the Portfolio have the same investment objective. The Portfolio
is advised by DIMA. The Portfolio may accept investments from other
feeder funds. Each feeder fund bears the Portfolio's expenses in
proportion to that feeder fund's assets. Each feeder fund can set
its own transaction minimums, fund-specific expenses and other
conditions. The fund's board members may determine to withdraw the
fund's assets from the Portfolio if they believe doing so is in the
shareholders' best interests. If the board members withdraw the
fund's assets, they would then consider whether the fund should hire
its own investment advisor, invest in a different master portfolio
or take other action.
The portfolio managers
A group of investment professionals is responsible for the
day-to-day management of the fund. These investment professionals
have a broad range of experience managing money market funds.
14 | Who Manages and Oversees the Fund
FINANCIAL HIGHLIGHTS
The financial highlights are designed to help you understand recent financial
performance. The figures in the first part of the table are for a single share.
The total return figures represent the percentage that an investor in the fund
would have earned (or lost), assuming all dividends and distributions were
reinvested. This information has been audited by PricewaterhouseCoopers LLP,
independent registered public accounting firm, whose report, along with the
fund's financial statements, is included in the fund's annual report (see
"Shareholder reports" on the back cover).
DWS Money Market Series - Premium Class S
YEARS ENDED DECEMBER 31, 2007a 2007c 2006c 2005c 2004c 2003c
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------ ------ ------- ------- ------- ------- -------
Net investment income .030 .052 .039 .019 .008 .013
______________________________ _______ ________ ________ ________ ________ ________
Distributions from net
investment income ( .030) ( .052) ( .039) ( .019) ( .008) ( .013)
------------------------------ ------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------ ------- -------- -------- -------- -------- --------
Total Return (%)b 3.06** 5.33 3.98 1.94 .81 1.29
------------------------------ ------- -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------- --------
Net assets, end of period
($ millions) 691 715 510 499 512 653
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of expenses before
expense reductions including
expenses allocated from Cash
Management Portfolio (%)d .29* .28 .31 .30 .49 .50
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of expenses after
expense reductions including
expenses allocated from Cash
Management Portfolio (%)d .15* .14 .15 .16 .33 .35
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of net investment
income (%) 5.15* 5.22 3.92 1.96 .81 1.24
------------------------------- ------- -------- -------- -------- -------- --------
|
a For the period from June 1, 2007 through December 31, 2007. The fund
changed its fiscal year end from May 31 to December 31.
b Total returns would have been lower had certain expenses not been reduced.
c For the years ended May 31.
d On July 30, 2007, DWS Money Market Series became a feeder of Cash
Management Portfolio. Expense ratios disclosed prior to December 31, 2007
are for DWS Money Market Series as a stand-alone fund.
* Annualized
** Not annualized
Financial Highlights | 15
DWS Money Market Series - Prime Reserve Class S
YEARS ENDED DECEMBER 31, 2007a 2007c 2006c 2005c 2004c 2003c
SELECTED PER SHARE DATA
---------------------------------------------------------------------------------------------------- -
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------ ------ ------- ------- ------- ------- -------
Net investment income .030 .051 .038 .018 .007 .011
______________________________ _______ ________ ________ ________ ________ ________
Distributions from net
investment income ( .030) ( .051) ( .038) ( .018) ( .007) ( .011)
------------------------------ ------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------ ------- -------- -------- -------- -------- --------
Total Return (%)b 3.01** 5.23 3.86 1.78 .66 1.14
------------------------------ ------- -------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------- --------
Net assets, end of period
($ millions) 112 111 41 48 38 48
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of expenses before
expense reductions including
expenses allocated from Cash
Management Portfolio (%)d .37* .37 .43 .46 .64 .65
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of expenses after
expense reductions including
expenses allocated from Cash
Management Portfolio (%)d .23* .23 .27 .32 .49 .50
_______________________________ _______ ________ ________ ________ ________ ________
Ratio of net investment
income (%) 5.07* 5.13 3.77 1.80 .65 1.09
------------------------------- ------- -------- -------- -------- -------- --------
|
a For the period from June 1, 2007 through December 31, 2007. The fund
changed its fiscal year end from May 31 to December 31.
b Total returns would have been lower had certain expenses not been reduced.
c For the years ended May 31.
d On July 30, 2007, DWS Money Market Series became a feeder of Cash
Management Portfolio. Expense ratios disclosed prior to December 31, 2007
are for DWS Money Market Series as a stand-alone fund.
* Annualized
** Not annualized
16 | Financial Highlights
HOW TO INVEST IN THE FUND
THE FOLLOWING PAGES TELL YOU HOW TO INVEST IN THE FUND AND WHAT TO EXPECT AS A
SHAREHOLDER. The following pages also tell you about many of the services,
choices and benefits of being a shareholder. You'll also find information on
how to check the status of your account using the method that's most convenient
for you.
If you're investing directly with DWS Scudder, all of this information applies
to you. If you're investing through a "third party provider" - for example, a
workplace retirement plan, financial supermarket or financial advisor - your
provider may have its own policies or instructions and you should follow those.
Please remember, CLASS S shares are generally only available to new investors
through fee-based programs of investment dealers that have special agreements
with the fund's distributor, through certain group retirement plans and through
certain registered investment advisors. These dealers and advisors typically
charge ongoing fees for services they provide.
You can find out more about the topics covered here by speaking with your
FINANCIAL ADVISOR OR A REPRESENTATIVE OF YOUR WORKPLACE RETIREMENT PLAN OR
OTHER INVESTMENT PROVIDER.
How to Buy, Sell and Exchange Shares
BUYING SHARES: Use these instructions to invest directly. Make out your check
to "DWS Scudder."
FIRST INVESTMENT ADDITIONAL INVESTMENTS
$10,000 or more for Prime Reserve $50 or more for regular accounts and
Class S; IRA accounts
$25,000 or more for Premium Class S $50 or more with an Automatic
Investment Plan
BY MAIL OR EXPRESS MAIL (SEE BELOW)
Send a DWS Scudder investment slip or
- Fill out and sign an application
short note that includes:
- Send it to us at the appropriate
- fund and class name
address, along with an investment
check - account number
- check payable to "DWS Scudder"
BY WIRE
- Call (800) 728-3337 for instructions - Call (800) 728-3337 for instructions
BY PHONE
Not available - Call (800) 728-3337 for instructions
WITH AN AUTOMATIC INVESTMENT PLAN
- Fill in the information on your - To set up regular investments from a
application and include a voided check bank checking account, call
(800) 728-3337
USING QuickBuy
Not available - Call (800) 728-3337 to make sure
QuickBuy is set up on your account; if
it is, you can request a transfer from
your bank account of any amount
between $50 and $250,000
ON THE INTERNET
- Go to www.dws-scudder.com - Call (800) 728-3337 to ensure you have
electronic services
- Print out a prospectus and a new
account application - Register at www.dws-scudder.com
- Complete and return the application - Follow the instructions for buying
with your check shares with money from your bank
account
|
REGULAR MAIL:
First Investment: DWS Scudder, PO Box 219356, Kansas City, MO 64121-9356
Additional Investments: DWS Scudder, PO Box 219154, Kansas City, MO 64121-9154
EXPRESS, REGISTERED OR CERTIFIED MAIL:
DWS Scudder, 210 West 10th Street, Kansas City, MO 64105-1614
18 | How to Buy, Sell and Exchange Shares
EXCHANGING OR SELLING SHARES: Use these instructions to exchange or sell shares
in an account opened directly with DWS Scudder.
EXCHANGING INTO ANOTHER FUND SELLING SHARES
To open a new account: same minimum Some transactions, including most for
as for a first investment over $100,000, can only be ordered in
For exchanges between existing writing with a signature guarantee;
accounts: $50 or more please see "Signature Guarantee"
BY PHONE OR WIRE
- Call (800) 728-3337 for instructions - Call (800) 728-3337 for instructions
USING THE AUTOMATED INFORMATION LINE
- Call (800) 728-3337 for instructions - Call (800) 728-3337 for instructions
BY MAIL OR EXPRESS MAIL
(see previous page for address)
Your instructions should include: Your instructions should include:
- the fund, class and account number - the fund, class and account number
you're exchanging out of you're exchanging out of
- the dollar amount or number of shares - the dollar amount or number of shares
you want to exchange you want to exchange
- the name and class of the fund you - your name(s), signature(s) and
want to exchange into address, as they appear on your
account
- your name(s), signature(s) and
address, as they appear on your - a daytime telephone number
account
- a daytime telephone number
WITH AN AUTOMATIC EXCHANGE PLAN WITH AN AUTOMATIC WITHDRAWAL PLAN
- To set up regular exchanges from a - To set up regular withdrawals from a
fund account, call (800) 728-3337 fund account, call (800) 728-3337
USING QuickSell
Not available - Call (800) 728-3337 to make sure
QuickSell is set up on your account; if
it is, you can request a transfer to your
bank account of any amount between
$50 and $250,000
USING CHECKWRITING
Not available - Write a check on your account. See
"Checkwriting" under "Policies about
transactions" for checkwriting
minimums
ON THE INTERNET
- Register at www.dws-scudder.com - Register at www.dws-scudder.com
- Follow the instructions for making - Follow the instructions for making
on-line exchanges on-line redemptions
|
How to Buy, Sell and Exchange Shares | 19
POLICIES YOU SHOULD KNOW ABOUT
Along with the information on the previous pages, the policies below
may affect you as a shareholder. Some of this information, such as
the section on distributions and taxes, applies to all investors,
including those investing through a financial advisor.
If you are investing through a financial advisor or through a
retirement plan, check the materials you received from them about
how to buy and sell shares because particular financial advisors or
other intermediaries may adopt policies, procedures or limitations
that are separate from those described by the fund. Please note that
a financial advisor may charge fees separate from those charged by
the fund and may be compensated by the fund.
Keep in mind that the information in this prospectus applies only to
the shares offered herein. Other share classes are described in
separate prospectuses and have different fees, requirements and
services.
In order to reduce the amount of mail you receive and to help reduce
expenses, we generally send a single copy of any shareholder report
and prospectus to each household. If you do not want the mailing of
these documents to be combined with those for other members of your
household, please contact your financial advisor or call (800)
728-3337.
Financial intermediary support payments
The Advisor, DWS Scudder Distributors, Inc. (the "Distributor")
and/or their affiliates may pay additional compensation, out of
their own assets and not as an additional charge to the fund, to
selected financial advisors in connection with the sale and/or
distribution of fund shares or the retention and/or servicing of
fund investors and fund shares ("revenue sharing"). Such revenue
sharing payments are in addition to any distribution or service fees
payable under any Rule 12b-1 or service plan of the fund, any record
keeping/sub-transfer agency/networking fees payable by the fund
(generally through the Distributor or an affiliate) and/or the
Distributor to certain financial advisors for performing such
services and any sales charge, commissions, non-cash compensation
arrangements expressly permitted under applicable rules of the
Financial Industry Regulatory Authority or other concessions
described in the fee table or elsewhere in this prospectus or the
Statement of Additional Information as
20 | Policies You Should Know About
payable to all financial advisors. For example, the Advisor, the
Distributor and/or their affiliates may compensate financial
advisors for providing the fund with "shelf space" or access to a
third party platform or fund offering list or other marketing
programs, including, without limitation, inclusion of the fund on
preferred or recommended sales lists, mutual fund "supermarket"
platforms and other formal sales programs; granting the Distributor
access to the financial advisor's sales force; granting the
Distributor access to the financial advisor's conferences and
meetings; assistance in training and educating the financial
advisor's personnel; and obtaining other forms of marketing support.
The level of revenue sharing payments made to financial advisors may
be a fixed fee or based upon one or more of the following factors:
gross sales, current assets and/or number of accounts of the fund
attributable to the financial advisor, the particular fund or fund
type or other measures as agreed to by the Advisor, the Distributor
and/or their affiliates and the financial advisors or any
combination thereof. The amount of these revenue sharing payments is
determined at the discretion of the Advisor, the Distributor and/or
their affiliates from time to time, may be substantial, and may be
different for different financial advisors based on, for example,
the nature of the services provided by the financial advisor.
The Advisor, the Distributor and/or their affiliates currently make
revenue sharing payments from their own assets in connection with
the sale and/or distribution of DWS Fund shares or the retention
and/or servicing of investors and DWS Fund shares to financial
advisors in amounts that generally range from .01% up to .50% of
assets of the fund serviced and maintained by the financial advisor,
.10% to .25% of sales of the fund attributable to the financial
advisor, a flat fee of $13,350 up to $500,000, or any combination
thereof. These amounts are subject to change at the discretion of
the Advisor, the Distributor and/or their affiliates. Receipt of, or
the prospect of receiving, this additional compensation may
influence your financial advisor's recommendation of the fund or of
any particular share class of the fund. You should review your
financial advisor's compensation disclosure and/or talk to your
financial advisor to obtain more information on how this
compensation may have influenced your financial advisor's
recommendation of the fund. Additional information regarding these
revenue sharing payments is
Policies You Should Know About | 21
included in the fund's Statement of Additional Information, which is
available to you on request at no charge (see the back cover of this
prospectus for more information on how to request a copy of the
Statement of Additional Information).
The Advisor, the Distributor and/or their affiliates may also make
such revenue sharing payments to financial advisors under the terms
discussed above in connection with the distribution of both DWS
funds and non-DWS funds by financial advisors to retirement plans
that obtain record keeping services from ADP, Inc. on the DWS
Scudder branded retirement plan platform (the "Platform") with the
level of revenue sharing payments being based upon sales of both the
DWS funds and the non-DWS funds by the financial advisor on the
Platform or current assets of both the DWS funds and the non-DWS
funds serviced and maintained by the financial advisor on the
Platform.
It is likely that broker-dealers that execute portfolio transactions
for the fund will include firms that also sell shares of the DWS
funds to their customers. However, the Advisor will not consider
sales of DWS fund shares as a factor in the selection of
broker-dealers to execute portfolio transactions for the DWS funds.
Accordingly, the Advisor has implemented policies and procedures
reasonably designed to prevent its traders from considering sales of
DWS fund shares as a factor in the selection of broker-dealers to
execute portfolio transactions for the fund. In addition, the
Advisor, the Distributor and/or their affiliates will not use fund
brokerage to pay for their obligation to provide additional
compensation to financial advisors as described above.
Policies about transactions
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify and record information that
identifies each person who opens an account. What this means to you:
When you open an account, we will ask for your name, address, date
of birth and other information that will allow us to identify you.
Some or all of this information will be used to verify the identity
of all persons opening an account.
22 | Policies You Should Know About
We might request additional information about you (which may include
certain documents, such as articles of incorporation for companies)
to help us verify your identity and, in some cases, the information
and/or documents may be required to conduct the verification. The
information and documents will be used solely to verify your
identity.
We will attempt to collect any missing required and requested
information by contacting you or your financial advisor. If we are
unable to obtain this information within the time frames established
by the fund, then we may reject your application and order.
The fund will not invest your purchase until all required and
requested identification information has been provided and your
application has been submitted in "good order." After we receive all
the information, your application is deemed to be in good order and
we accept your purchase, you will receive the net asset value per
share next calculated.
If we are unable to verify your identity within time frames
established by the fund, after a reasonable effort to do so, you
will receive written notification.
With certain limited exceptions, only US residents may invest in the
fund.
Because orders placed through a financial advisor must be forwarded
to the transfer agent before they can be processed, you'll need to
allow extra time. Your financial advisor should be able to tell you
approximately when your order will be processed. It is the
responsibility of your financial advisor to forward your order to
the transfer agent in a timely manner.
TRANSACTION PROCESSING. Except as provided below, purchase,
redemption and exchange orders must be received in good order by
4:00 p.m. Eastern time (or prior to the close of the fund, if the
New York Stock Exchange closes early on such date) on a business day
on which the fund is open in order to be effective on that day;
otherwise such orders will be effective on the next business day.
However, on a normal business day that the fund calculates its share
price at 5:00 p.m. Eastern time as provided below, purchase orders
with payment sent by wire and redemption orders with proceeds to be
sent by wire, ACH or by
Policies You Should Know About | 23
check that are communicated by telephone (but not by the Automated
Information Line) and are received in good order by 5:00 p.m.
Eastern time on a business day will be effective on that business
day.
Orders for the purchase of shares by wire transfer will normally be
effective at the share price next computed after receipt of the wire
transfer of the amount to be invested. If a wire transfer purchase
order is received in good order before 5:00 p.m. Eastern time, it
will normally receive the dividend for that day.
Investments by check will be effective on the business day following
receipt and will earn dividends the following business day. If you
pay for shares by check and the check fails to clear, we have the
right to cancel your order, hold you liable or charge you or your
account for any losses or fees the fund or its agents have incurred.
Orders processed through dealers or other financial services firms
via Fund/SERV will be effected at the share price calculated on the
trade day (normally the date the order is received). Purchases
processed via Fund/SERV will begin earning dividends on the day the
fund receives the payment (typically the next business day). For
redemptions processed via Fund/SERV, you generally will receive
dividends accrued up to, but not including, the business day that
payment for your shares is made.
When selling shares, shareholders generally receive dividends up to,
but not including, the business day following the day on which the
shares were sold. To sell shares, you must state whether you would
like to receive the proceeds by wire or check.
To sell by wire, contact Shareholder Services before 5:00 p.m.
Eastern time. After you inform Shareholder Services of the amount of
your redemption, you will receive a trade confirmation number. If
the fund receives a sell request before 5:00 p.m. Eastern time and
the request calls for proceeds to be sent out by wire, the proceeds
will normally be wired on the same day. However, the shares sold
will not earn that day's dividend.
As noted elsewhere in the prospectus, proceeds of a redemption may
be delayed. The ability to receive "same day" wire redemption
proceeds can be affected by a variety of circumstances including the
time that the request is made, the level of redemption requests and
purchase orders and general market
24 | Policies You Should Know About
conditions. Requests for same day wire that are received earlier in
the day will be given priority over requests received later in the
day in the event that it is necessary to limit the amount of same
day wire redemptions.
SUB-MINIMUM BALANCES. The fund may close your account and send you
the proceeds if your balance falls below the minimum for your share
class, which is $7,500 for Prime Reserve Class S and $20,000 for
Premium Class S; in either case, we will give you 60 days' notice
(90 days for retirement accounts) so you can either increase your
balance or close your account (these policies don't apply to
investors with $100,000 or more in DWS fund shares).
Because of the high cost of servicing accounts with low balances, an
account maintenance fee of $6.25 per quarter (for a $25 annual fee)
will be assessed on accounts whose balances fail to meet the minimum
initial investment requirement for a period of 90 days prior to the
assessment date. The quarterly assessment will occur on or about the
15th of the last month in each calendar quarter. Please note that
the fee will be assessed on accounts that fall below the minimum for
any reason, including due to market value fluctuations, redemptions
or exchanges. The account maintenance fee will apply to all
shareholders of the DWS Funds except for: accounts with an automatic
investment plan, accounts held in an omnibus account through a
financial services firm, accounts maintained on behalf of
participants in certain fee based and wrap programs offered through
certain financial intermediaries approved by the Advisor and
participant level accounts in group retirement plans held on the
records of a retirement plan record keeper.
THE AUTOMATED INFORMATION LINE IS AVAILABLE 24 HOURS A DAY BY
CALLING (800) 728-3337. You can use our automated phone services to
get information on DWS funds generally and on accounts held directly
at DWS Scudder. You can also use this service to make exchanges and
to purchase and sell shares.
QUICKBUY AND QUICKSELL let you set up a link between a DWS fund
account and a bank account. Once this link is in place, you can move
money between the two with a phone call. You'll need to make sure
your bank has Automated Clearing House
Policies You Should Know About | 25
(ACH) services. Transactions take two to three days to be completed
and there is a $50 minimum and a $250,000 maximum. To set up
QuickBuy or QuickSell on a new account, see the account application;
to add it to an existing account, call (800) 728-3337.
TELEPHONE AND ELECTRONIC TRANSACTIONS. Generally, you are
automatically entitled to telephone and electronic transaction
privileges, but you may elect not to have them when you open your
account or by contacting Shareholder Services at (800) 728-3337 at a
later date.
Since many transactions may be initiated by telephone or
electronically, it's important to understand that as long as we take
reasonable steps to ensure that an order to purchase or redeem
shares is genuine, such as recording calls or requesting
personalized security codes or other information, we are not
responsible for any losses that may occur as a result. For
transactions conducted over the Internet, we recommend the use of a
secure Internet browser. In addition, you should verify the accuracy
of your confirmation statements immediately after you receive them.
CHECKWRITING enables you to sell shares of the fund by writing a
check. Your investment keeps earning dividends until your check
clears. Please note that we will not accept checks for less than
$100. Please note that you should not write checks for more than
$5,000,000. Note as well that we can't honor any check larger than
your balance at the time the check is presented to us. It is not a
good idea to close out an account using a check because the account
balance could change between the time you write the check and the
time it is processed. Please keep in mind that if you make a
purchase by check and that check has not yet cleared, those funds
will not be available for immediate redemption.
THE FUND ACCEPTS AUTOMATED CLEARING HOUSE ("ACH") debit entries for
accounts that have elected the checkwriting redemption privilege.
Upon receipt of an ACH debit entry referencing your account number
you authorize us to redeem shares in your account to pay the entry
to the third party originating the debit. Your fund account
statement will show all ACH debit entries in your account. IN CASE
OF ERRORS OR QUESTIONS ABOUT YOUR TRANSACTIONS OR PRE-AUTHORIZED
TRANSFERS please contact your
26 | Policies You Should Know About
financial advisor as soon as possible if you believe your statement
reflects an improper charge or if you need more information about an
ACH debit entry transaction. Your financial advisor must contact the
Shareholder Service Agent within sixty (60) days of the fund sending
you the first fund account statement on which an improper charge
appears.
THE FUND DOES NOT ISSUE SHARE CERTIFICATES. However, if you
currently have shares in certificated form, you must include the
share certificates properly endorsed or accompanied by a duly
executed stock power when exchanging or redeeming shares. You may
not exchange or redeem shares in certificate form by telephone or
via the Internet.
WHEN YOU ASK US TO SEND OR RECEIVE A WIRE, please note that while we
don't charge a fee to send or receive wires, it's possible that your
bank may do so. Wire transactions are generally completed within 24
hours. The fund can only send wires of $1,000 or more and accept
wires of $50 or more.
THE FUND ACCEPTS PAYMENT FOR SHARES ONLY IN US DOLLARS by check,
bank or Federal Funds wire transfer or by electronic bank transfer.
Please note that the fund does not accept cash, money orders,
traveler's checks, starter checks, third party checks (except checks
for retirement plan asset transfers and rollovers or for Uniform
Gifts to Minors Act/Uniform Transfers to Minors Act accounts),
checks drawn on foreign banks or checks issued by credit card
companies or Internet-based companies. Thus, subject to the
foregoing exceptions for certain third party checks, checks that are
otherwise permissible must be drawn by the account holder on a
domestic bank and must be payable to the fund.
SIGNATURE GUARANTEE. When you want to sell more than $100,000 worth
of shares or send proceeds to a third party or to a new address,
you'll usually need to place your order in writing and include a
signature guarantee. However, if you want money wired to a bank
account that is already on file with us, you don't need a signature
guarantee. Also, generally you don't need a signature guarantee for
an exchange, although we may require one in certain other
circumstances.
Policies You Should Know About | 27
A signature guarantee is simply a certification of your signature -
a valuable safeguard against fraud. You can get a signature
guarantee from an eligible guarantor institution, including
commercial banks, savings and loans, trust companies, credit unions,
member firms of a national stock exchange or any member or
participant of an approved signature guarantor program. Note that
you can't get a signature guarantee from a notary public and we must
be provided the original guarantee.
SELLING SHARES OF TRUST ACCOUNTS AND BUSINESS OR ORGANIZATION
ACCOUNTS may require additional documentation. Please call (800)
728-3337 or contact your financial advisor for more information.
MONEY FROM SHARES YOU SELL is normally sent out within one business
day of the business day that your redemption order is effective.
There are circumstances when it could be longer, including, but not
limited to, when you are selling shares you bought recently by
check or ACH (the funds will be placed under a 10 calendar day hold
to ensure good funds) or when unusual circumstances prompt the SEC
to allow further delays. Certain expedited redemption processes
(e.g., redemption proceeds by wire) may also be delayed or
unavailable when you are selling shares recently purchased by check
or ACH or in the event of closing of the Federal Reserve wire
payment system. The fund reserves the right to suspend or postpone
redemptions as permitted pursuant to Section 22(e) of the Investment
Company Act of 1940. Generally, those circumstances are when 1) the
New York Stock Exchange is closed other than customary weekend or
holiday closings; 2) trading on the New York Stock Exchange is
restricted; 3) an emergency exists which makes the disposal of
securities owned by the fund or the fair determination of the value
of the fund's net assets not reasonably practicable; or 4) the SEC,
by order, permits the suspension of the right of redemption.
Redemption payments by wire may also be delayed in the event of a
non-routine closure of the Federal Reserve wire payment system. For
additional rights reserved by the fund, please see "Other rights we
reserve."
You may obtain additional information about other ways to sell your
shares by contacting your financial advisor.
SHORT-TERM TRADING. Since money market funds hold short-term
instruments and are intended to provide liquidity to shareholders,
the Advisor does not monitor or limit short-term or excessive
trading activity in the fund and, accordingly, the Board of
28 | Policies You Should Know About
the fund has not approved any policies and procedures designed to
limit this activity. However, the fund reserves the right to and may
reject or cancel a purchase or exchange order into the fund for any
reason, including if, in the opinion of the Advisor, there appears
to be a pattern of short-term or excessive trading by an investor in
another DWS fund.
How the fund calculates share price
To calculate net asset value, or NAV, each share class uses the
following equation:
TOTAL ASSETS - TOTAL LIABILITIES
----------------------------------------- = NAV
TOTAL NUMBER OF SHARES OUTSTANDING
|
The price at which you buy and sell shares is based on the NAV per
share next calculated after the order is received by the transfer
agent.
IN VALUING SECURITIES, we typically use amortized cost (the method
used by most money market funds) to account for any premiums or
discounts above or below the face value of any securities the fund
buys, and round the per share NAV to the nearest whole cent.
THE FUND IS OPEN FOR BUSINESS each day the New York Stock Exchange
(the "Exchange") is open. Normally, the fund calculates its share
price once every business day at 5:00 p.m. Eastern time. The close
of regular trading on the Exchange is typically 4:00 p.m. Eastern
time, but sometimes earlier, as in the case of scheduled half-day
trading or unscheduled suspensions of trading. In the event of
scheduled partial day trading or unscheduled suspensions of trading
on the Exchange, the calculation of share price shall be as of the
close of trading on the Exchange. In such instances, the latest time
for receipt of wire purchase transactions entitled to receive same
day dividend treatment and for receipt of redemption orders for same
day wire transfer of proceeds will be the earlier of (a) 5:00 p.m.
Eastern time or (b) the early closing time of the Exchange. The fund
seeks to maintain a stable $1.00 share price.
The fund may, but is not required to, accept certain types of
purchase and redemption orders (not including exchanges) on days
that the Exchange is closed, or beyond an Exchange early closing
time (referred to as a "Limited Trading Period") if: (a) the Federal
Reserve system is open, (b) the primary trading markets
Policies You Should Know About | 29
for the fund's portfolio instruments are open and (c) the Advisor
believes there will be adequate liquidity in the short-term markets.
During any such Limited Trading Period, the fund will only accept
purchase orders by wire and telephone redemption orders with
proceeds to be sent by wire, ACH or check and will not accept orders
by any other means. (Automated Telephone Line orders are not
permitted.) If redemption proceeds are requested by ACH or check,
the transmission of the ACH payment or the mailing of the check, as
the case may be, will be delayed by at least one business day in
comparison to normal trading periods. Orders submitted by other
means will be processed on the next day that the Exchange is open.
The calculation of share price will be as set forth in the
prospectus for normal trading days. Orders must be submitted by the
cut-off times for receipt of wire purchases entitled to that day's
dividend and for receipt of telephone redemption orders for same day
wire transfer, which will be the earlier of: (a) the times set forth
in the prospectus for normal trading days or (b) such earlier times
that the fund determines based on the criteria described above. If
redemption proceeds are requested by ACH or check, orders must be
received prior to the calculation of share price. Please call (877)
237-1131 or visit our Web site at www.dws-scudder.com for additional
information about whether the fund will be open for business on a
particular day. Information concerning the intention of the fund to
be open for a Limited Trading Period will be available at least one
business day prior to the applicable day that the Exchange is closed
or is closing early in the case of scheduled closings and as soon as
practical in the case of unscheduled closings.
Other rights we reserve
You should be aware that we may do any of the following:
- withdraw or suspend the offering of shares at any time
- withhold a portion of your distributions and redemption proceeds
for federal income tax purposes if we have been notified by the
IRS that you are subject to backup withholding or if you fail to
provide us with a correct taxpayer ID number and certain
certifications including certification that you are not subject
to backup withholding
- reject a new account application if you don't provide any
required or requested identifying information, or for any other
reason
30 | Policies You Should Know About
- refuse, cancel, limit or rescind any purchase or exchange order,
without prior notice; freeze any account (meaning you will not be
able to purchase fund shares in your account); suspend account
services; and/or involuntarily redeem your account if we think that
the account is being used for fraudulent or illegal purposes; one or
more of these actions will be taken when, at our sole discretion,
they are deemed to be in the fund's best interests or when the fund
is requested or compelled to do so by governmental authority or by
applicable law
- close and liquidate your account if we are unable to verify your
identity, or for other reasons; if we decide to close your
account, your fund shares will be redeemed at the net asset value
per share next calculated after we determine to close your
account (less applicable redemption fee, if any); you may
recognize a gain or loss on the redemption of your fund shares
and you may incur a tax liability
- change, add or withdraw various services, fees and account
policies (for example, we may adjust the fund's investment
minimums at any time)
UNDERSTANDING DISTRIBUTIONS AND TAXES
The fund intends to distribute to its shareholders virtually all of
its net earnings. The fund can earn money in two ways: by receiving
interest, dividends or other income from securities it holds and by
selling securities for more than it paid for them. (The fund's
earnings are separate from any gains or losses stemming from your
own purchase and sale of shares.) The fund may not always pay a
dividend or distribution for a given period.
THE FUND INTENDS TO DECLARE DIVIDENDS DAILY AND PAY THEM MONTHLY.
The fund may take into account capital gains and losses (other than
net long-term capital gains) in its daily dividend declarations. The
fund may make additional distributions for tax purposes, if
necessary.
Dividends or distributions declared to shareholders of record in the
last quarter of a given calendar year are treated for federal income
tax purposes as if they were received on December 31 of that year,
provided such dividends or distributions are paid by the end of the
following January.
THE FOLLOWING SIDEBAR TEXT APPEARS NEXT TO THE PRECEDING PARAGRAPHS
Because each shareholder's tax situation is unique, ask your tax professional
about the tax consequences of your investments, including any state and local
tax consequences.
Understanding Distributions and Taxes | 31
For federal income tax purposes, income and capital gains
distributions are generally taxable to shareholders. However,
dividends and distributions received by retirement plans qualifying
for tax exemption under federal income tax laws generally will not
be taxable.
YOU CAN CHOOSE HOW TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS. You
can have them all automatically reinvested in fund shares (at NAV),
sent to you by check or wired to your bank account of record. Tell
us your preference on your application. If you don't indicate a
preference, your dividends and distributions will all be reinvested.
For retirement plans, reinvestment is the only option.
Distributions are treated the same for federal income tax purposes
whether you receive them in cash or reinvest them in additional
shares. For federal income tax purposes, an exchange is treated the
same as a sale.
Because the fund seeks to maintain a stable share price, you are
unlikely to have capital gains or losses when you sell fund shares.
For federal income tax purposes, distributions of investment income
are taxable as ordinary income. The fund does not expect to make
distributions that are eligible for taxation as long-term capital
gains or as qualified dividend income.
The use of a master/feeder structure could affect the amount, timing
and character of distributions, and therefore, may increase the
amount of taxes payable to shareholders.
Your fund will send you detailed federal income tax information
every January. These statements tell you the amount and the federal
income tax classification of any dividends or distributions you
received. They also have certain details on your purchases and sales
of shares.
The above discussion is applicable to shareholders who are US
persons. If you are a non-US person, please consult your own tax
advisor with respect to the US tax consequences to you of an
investment in the fund.
32 | Understanding Distributions and Taxes
APPENDIX
Hypothetical Expense Summary
Using the annual fund operating expense ratios presented in the fee
tables in the fund prospectus, the Hypothetical Expense Summary
shows the estimated fees and expenses, in actual dollars, that would
be charged on a hypothetical investment of $10,000 in the fund held
for the next 10 years and the impact of such fees and expenses on
fund returns for each year and cumulatively, assuming a 5% return
for each year. The tables also assume that all dividends and
distributions are reinvested. The annual fund expense ratios shown
are net of any contractual fee waivers or expense reimbursements, if
any, for the period of the contractual commitment. Also, please note
that if you are investing through a third party provider, that
provider may have fees and expenses separate from those of the fund
that are not reflected here. Mutual fund fees and expenses fluctuate
over time and actual expenses may be higher or lower than those
shown.
The Hypothetical Expense Summary should not be used or construed as
an offer to sell, a solicitation of an offer to buy or a
recommendation or endorsement of any specific mutual fund. You
should carefully review the fund's prospectus to consider the
investment objectives, risks, expenses and charges of the fund prior
to investing.
Appendix | 33
DWS Money Market Series - Premium Class S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL FEES
FEES AND EXPENSE FEES AND FEES AND AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
1 5.00% 0.28% 4.72% $ 10,472.00 $ 28.66
2 10.25% 0.28% 9.66% $ 10,966.28 $ 30.01
3 15.76% 0.30% 14.82% $ 11,481.69 $ 33.67
4 21.55% 0.30% 20.21% $ 12,021.33 $ 35.25
5 27.63% 0.30% 25.86% $ 12,586.34 $ 36.91
6 34.01% 0.30% 31.78% $ 13,177.89 $ 38.65
7 40.71% 0.30% 37.97% $ 13,797.25 $ 40.46
8 47.75% 0.30% 44.46% $ 14,445.73 $ 42.36
9 55.13% 0.30% 51.25% $ 15,124.67 $ 44.36
10 62.89% 0.30% 58.36% $ 15,835.53 $ 46.44
TOTAL $ 376.77
|
DWS Money Market Series - Prime Reserve Class S
MAXIMUM INITIAL HYPOTHETICAL ASSUMED RATE
SALES CHARGE: INVESTMENT: OF RETURN:
0.00% $10,000 5%
HYPOTHETICAL
CUMULATIVE ANNUAL CUMULATIVE YEAR-END
RETURN BEFORE FUND RETURN AFTER BALANCE AFTER ANNUAL
FEES AND EXPENSE FEES AND FEES AND FEES AND
YEAR EXPENSES RATIOS EXPENSES EXPENSES EXPENSES
1 5.00% 0.37% 4.63% $ 10,463.00 $ 37.86
2 10.25% 0.37% 9.47% $ 10,947.44 $ 39.61
3 15.76% 0.38% 14.53% $ 11,453.21 $ 42.56
4 21.55% 0.38% 19.82% $ 11,982.35 $ 44.53
5 27.63% 0.38% 25.36% $ 12,535.93 $ 46.58
6 34.01% 0.38% 31.15% $ 13,115.09 $ 48.74
7 40.71% 0.38% 37.21% $ 13,721.01 $ 50.99
8 47.75% 0.38% 43.55% $ 14,354.92 $ 53.34
9 55.13% 0.38% 50.18% $ 15,018.12 $ 55.81
10 62.89% 0.38% 57.12% $ 15,711.95 $ 58.39
TOTAL $ 478.41
|
34 | Appendix
TO GET MORE INFORMATION
SHAREHOLDER REPORTS - These include commentary from the fund's management team
about recent market conditions and the effects of the fund's strategies on its
performance. They also have detailed performance figures, a list of everything
the fund owns, and its financial statements. Shareholders get these reports
automatically.
STATEMENT OF ADDITIONAL INFORMATION (SAI) - This tells you more about the
fund's features and policies, including additional risk information. The SAI is
incorporated by reference into this document (meaning that it's legally part of
this prospectus).
For a free copy of any of these documents or to request other information about
the fund, call (800) 728-3337, or contact DWS Scudder at the address listed
below. The fund's SAI and shareholder reports are also available through the
DWS Scudder Web site at www.dws-scudder.com. These documents and other
information about the fund are available from the EDGAR Database on the SEC's
Internet site at www.sec.gov. If you like, you may obtain copies of this
information, after paying a copying fee, by e-mailing a request to
publicinfo@sec.gov or by writing the SEC at the address listed below. You can
also review and copy these documents and other information about the fund,
including the fund's SAI, at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the SEC's Public Reference Room may be
obtained by calling (800) SEC-0330.
DWS SCUDDER SEC DISTRIBUTOR
--------------------- -------------------- -------------------------------
PO Box 219151 100 F Street, N.E. DWS Scudder Distributors, Inc.
Kansas City, MO Washington, D.C. 222 South Riverside Plaza
64121-9151 20549-0102 Chicago, IL 60606-5808
WWW.DWS-SCUDDER.COM WWW.SEC.GOV (800) 621-1148
(800) 728-3337 (800) SEC-0330
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SEC FILE NUMBER:
DWS Money Market Trust DWS Money Market Series 811-03495
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(05/01/08) 309/402-2
[RECYCLE GRAPHIC APPEARS HERE]
[Logo]DWS
SCUDDER
Deutsche Bank Group
DWS MONEY MARKET TRUST
DWS Money Market Series
Prime Reserve Class S
Premium Class S
Institutional Shares
Managed Shares
STATEMENT OF ADDITIONAL INFORMATION
May 1, 2008
This Statement of Additional Information is not a prospectus and should be read
in conjunction with the prospectuses for the Fund, dated May 1, 2008, as amended
from time to time, for DWS Money Market Series (the "Fund"), a series of DWS
Money Market Trust (the "Trust"), copies of which may be obtained without charge
by contacting DWS Scudder Distributors, Inc., 222 South Riverside Plaza,
Chicago, Illinois 60606, (800) 621-1148 or from the firm from which this
Statement of Additional Information was obtained. It is also available along
with other related materials on the Securities and Exchange Commission's
Internet Web site (http://www.sec.gov).
Effective, July 30, 2007, the Fund became a feeder fund in a master/feeder fund
arrangement. The Fund pursues its investment objective by investing
substantially all of its assets in a master portfolio -- the Cash Management
Portfolio (the "Portfolio"), which has the same investment objective and is
subject to the same investment risks as the Fund. References to actions
undertaken by the Fund may refer to actions undertaken by the Portfolio.
Portions of the Annual Report to Shareholders of the Fund, dated December 31,
2007, are incorporated by reference, as specified herein. A copy of the Fund's
Annual Reports may be obtained without charge by calling the Fund at the
toll-free number (800) 728-3337 for Prime Reserve Class S and Premium Class S
and (800) 730-1313 for Institutional Shares and Managed Shares.
This Statement of Additional Information is incorporated by reference into the
prospectuses.
TABLE OF CONTENTS
Page
----
INVESTMENT RESTRICTIONS.......................................................1
INVESTMENT POLICIES AND TECHNIQUES............................................2
Investment Techniques......................................................2
Portfolio Holdings .......................................................10
MANAGEMENT OF THE FUND.......................................................11
Investment Advisor........................................................11
SERVICE PROVIDERS............................................................19
Administrator.............................................................19
Distributor...............................................................20
Custodian.................................................................21
Transfer Agent and Shareholder Service Agent..............................21
Legal Counsel.............................................................23
Independent Registered Public Accounting Firm.............................23
PORTFOLIO TRANSACTIONS.......................................................25
PURCHASE AND REDEMPTION OF SHARES............................................29
DIVIDENDS....................................................................49
TAXES........................................................................50
NET ASSET VALUE..............................................................55
TRUSTEES AND OFFICERS........................................................56
TRUST ORGANIZATION...........................................................74
PROXY VOTING GUIDELINES......................................................76
FINANCIAL STATEMENTS.........................................................78
ADDITIONAL INFORMATION.......................................................78
APPENDIX.....................................................................79
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INVESTMENT RESTRICTIONS
Unless specified to the contrary, the following fundamental policies may not be
changed without the approval of a majority of the outstanding voting securities
of the Fund which, under the Investment Company Act of 1940, as amended (the
"1940 Act"), and the rules thereunder and as used in this Statement of
Additional Information, means the lesser of (1) 67% or more of the voting
securities present at a meeting, if the holders of more than 50% of the
outstanding voting securities of the Fund are present or represented by proxy,
or (2) more than 50% of the outstanding voting securities of the Fund.
Any investment restrictions herein which involve a maximum percentage of
securities or assets shall not be considered to be violated unless an excess
over the percentage occurs immediately after and is caused by an acquisition or
encumbrance of securities or assets of, or borrowings by, the Fund or Portfolio.
As a matter of fundamental policy, the Fund and the Portfolio may not:
(1) borrow money, except as permitted under the 1940 Act, and as
interpreted or modified by regulatory authority having jurisdiction,
from time to time;
(2) issue senior securities, except as permitted under the 1940 Act, and
as interpreted or modified by regulatory authority having
jurisdiction, from time to time;
(3) engage in the business of underwriting securities issued by others,
except to the extent that the Fund may be deemed to be an underwriter
in connection with the disposition of portfolio securities;
(4) purchase or sell real estate, which term does not include securities
of companies which deal in real estate or mortgages or investments
secured by real estate or interests therein, except that the Fund
reserves freedom of action to hold and to sell real estate acquired as
a result of the Fund's ownership of securities;
(5) purchase or sell commodities, except as permitted by the 1940 Act, and
as interpreted or modified by the regulatory authority have
jurisdiction, from time to time;
(6) make loans except as permitted under the 1940 Act, and as interpreted
or modified by regulatory authority having jurisdiction, from time to
time; or
(7) concentrate its investments in any particular industry (excluding US
Government Obligations), as that term is used in the 1940 Act, and as
interpreted or modified by the regulatory authority having
jurisdiction from time to time; except that the Fund will invest more
than 25% of its total assets in the obligations of banks and other
financial institutions.
In addition, as a matter of non-fundamental policy, the Fund and the Portfolio
currently do not intend to:
(1) borrow money in an amount greater than 5% of its total assets, except for
temporary or emergency purposes;
(2) lend portfolio securities in an amount greater than 5% of its total assets;
or
(3) acquire securities of registered open-end investment companies or
registered unit investment trusts in reliance on Sections 12(d)(1)(F) or
12(d)(1)(G) of the 1940 Act.
Non-fundamental policies may be changed by the Trustees of the Trust or
Portfolio without requiring approval of or, with certain exceptions, prior
notice to shareholders.
There will be no violation of any investment restrictions or policies (except
with respect to fundamental investment restriction (1) above) if that
restriction is complied with at the time the relevant action is taken,
notwithstanding a later change in the market value of an investment, in net or
total assets, or in the change of securities rating of the investment, or any
other later change.
INVESTMENT POLICIES AND TECHNIQUES
Investment Techniques
The Fund is a diversified investment portfolio of the Trust, a professionally
managed open-end, management investment company. The Fund seeks a high level of
current income consistent with liquidity and the preservation of capital. The
Fund invests substantially all of its assets in the Portfolio with the same goal
as the Fund. The Fund, through the Portfolio, seeks to achieve its goal by
investing in high quality, short-term money market instruments and maintains a
dollar-weighted average maturity of 90 days or less. The Fund may withdraw its
investments from the Portfolio at any time if the Trustees of the Trust
determine that it is in the best interests of the Fund to do so.
Since the investment characteristics of the Fund will correspond directly to
those of the Portfolio in which the Fund invests all of its assets, the
following is a discussion of the various investments of and techniques employed
by the Portfolio.
Quality and Maturity of the Portfolio's Securities. The Portfolio will maintain
a dollar-weighted average maturity of 90 days or less. All securities in which
the Portfolio invests will have, or be deemed to have, remaining maturities of
397 days or less on the date of their purchase and will be denominated in US
dollars. The Advisor, acting under the supervision of and procedures adopted by
the Board of Trustees of the Portfolio, will also determine that all securities
purchased by the Portfolio present minimal credit risks. The Advisor will cause
the Portfolio to dispose of any security as soon as practicable if the security
is no longer of the requisite quality, unless such action would not be in the
best interest of the Portfolio. High-quality, short-term instruments may result
in a lower yield than instruments with a lower quality or longer term.
Obligations of Banks and Other Financial Institutions. The Portfolio may invest
in US dollar-denominated high quality fixed rate or variable rate obligations of
US or foreign financial institutions, including banks, which have received one
of the two highest short-term ratings from two nationally recognized statistical
rating organizations ("NRSROs") (or one NRSRO if that NRSRO is the only NRSRO
that rates such obligations) or, are unrated, but are deemed by the Advisor to
be of comparable quality to one of the two highest short-term ratings; or, have
no short-term rating, but are rated in one of the top three highest long-term
rating categories by a NRSRO or are deemed by the Advisor to be of comparable
quality. Obligations of domestic and foreign financial institutions in which the
Portfolio may invest include (but are not limited to) certificates of deposit,
bankers' acceptances, bank time deposits, commercial paper, and other US
dollar-denominated instruments issued or supported by the credit of US or
foreign financial institutions, including banks.
For purposes of the Portfolio's investment policies with respect to bank
obligations, the assets of a bank will be deemed to include the assets of its
domestic and foreign branches. Obligations of foreign branches of US banks and
foreign banks may be general obligations of the parent bank in addition to the
issuing bank or may be limited by the terms of a specific obligation and by
government regulation. If the Advisor deems the instruments to present minimal
credit risk, the Portfolio may invest in obligations of foreign banks or foreign
branches of US banks, which may include banks located in the United Kingdom,
Grand Cayman Island, Nassau, Japan, Canada and Australia.
Investments in these obligations may entail risks that are different from those
of investments in obligations of US domestic banks because of differences in
political, regulatory and economic systems and conditions. These risks include
future political and economic developments, currency blockage, the possible
imposition of withholding taxes on interest payments, possible seizure or
nationalization of foreign deposits, difficulty or inability of pursuing legal
remedies and obtaining judgments in foreign courts, possible establishment of
exchange controls or the adoption of other foreign governmental restrictions
that might affect adversely the payment of principal and interest on bank
obligations. Foreign branches of US banks and foreign banks may also be subject
to less stringent reserve requirements and to different accounting, auditing,
reporting and record keeping standards than those applicable to domestic
branches of US banks.
Under normal market conditions, the Portfolio will invest a significant portion
of its assets in the bank and other financial institution obligations. The
Portfolio's concentration of its investments in the obligations of banks and
other financial institutions will cause the Portfolio to be subject to the risks
peculiar to these industries to a greater extent than if its investments were
not so concentrated.
Commercial Paper. The Portfolio may invest in fixed rate or variable rate
commercial paper, issued by US or foreign entities. Commercial paper consists of
short-term (usually up to one year) unsecured promissory notes issued by US or
foreign entities in order to finance their current operations.
Commercial paper when purchased by the Portfolio must be rated in the highest
short-term rating category by any two NRSROs (or one NRSRO if that NRSRO is the
only such NRSRO which rates such security) or, is unrated, but is deemed by the
Advisor to be of comparable quality to one of the two highest short-term
ratings; or, has no short-term rating, but is rated in one of the top three
highest long-term rating categories by a NRSRO or is deemed by the Advisor to be
of comparable quality. Investing in foreign commercial paper generally involves
risks similar to those described above relating to obligations of foreign banks
or foreign branches and subsidiaries of US and foreign banks. Any commercial
paper issued by a foreign entity and purchased by the Portfolio must be US
dollar-denominated and must not be subject to foreign withholding tax at the
time of purchase.
For a description of commercial paper ratings, see the Appendix to this SAI.
Variable Rate Master Demand Notes. Variable rate master demand notes are
unsecured instruments that permit the indebtedness there under to vary and
provide for periodic adjustments in the interest rate. Because variable rate
master demand notes are direct lending arrangements between the Portfolio and
the issuer, they are not ordinarily traded. Although no active secondary market
may exist for these notes, the Portfolio will purchase only those notes under
which it may demand and receive payment of principal and accrued interest daily
or may resell the note at any time to a third party. While the notes are not
typically rated by credit rating agencies, issuers of variable rate master
demand notes must satisfy the Advisor, acting under the supervision of the Board
of Trustees of the Portfolio, that the same criteria as set forth above for
issuers of commercial paper are met. In the event an issuer of a variable rate
master demand note defaulted on its payment obligation, the Portfolio might be
unable to dispose of the note because of the absence of an active secondary
market and could, for this or other reasons, suffer a loss to the extent of the
default. The face maturities of variable rate notes subject to a demand feature
may exceed 397 days in certain circumstances. (See "Quality and Maturity of the
Portfolio's Securities" herein.)
US Government Obligations. The Portfolio may invest in obligations issued or
guaranteed by the US government which include: (1) direct obligations of the US
Treasury and (2) obligations issued by US government agencies and
instrumentalities ("US Government Obligations"). Included among direct
obligations of the US are Treasury Bills, Treasury Notes and Treasury Bonds,
which differ in terms of their interest rates, maturities and dates of issuance.
Treasury Bills have maturities of less than one year, Treasury Notes have
maturities of one to 10 years and Treasury Bonds generally have maturities of
greater than 10 years at the date of issuance. Included among the obligations
issued by agencies and instrumentalities of the US are: instruments that are
supported by the full faith and credit of the US (such as certificates issued by
the Government National Mortgage Association ("GNMA" or "Ginnie Mae");
instruments that are supported by the right of the issuer to borrow from the US
Treasury (such as securities of Federal Home Loan Banks); and instruments that
are supported by the credit of the instrumentality (such as Federal National
Mortgage Association ("FNMA" or "Fannie Mae") and Federal Home Loan Mortgage
Corporation ("FHLMC" or "Freddie Mac").
Other US government securities the Portfolio may invest in include (but are not
limited to) securities issued or guaranteed by the Federal Housing
Administration, Farmers Home Loan Administration, Export-Import Bank of the US,
Small Business Administration, General Services Administration, Central Bank for
Cooperatives, Federal Farm Credit Banks, Federal Intermediate Credit Banks,
Federal Land Banks, Maritime Administration, Tennessee Valley Authority,
District of Columbia Armory Board and Student Loan Marketing Association.
Because the US government is not obligated by law to provide support to an
instrumentality it sponsors, the Portfolio will invest in obligations issued by
such an instrumentality only if the Advisor determines that the credit risk with
respect to the instrumentality does not make its securities unsuitable for
investment by the Portfolio.
The Portfolio may also invest in separately traded principal and interest
component of securities guaranteed or issued by the US government or its
agencies, instrumentalities or sponsored enterprises if such components trade
independently under the Separate Trading of Registered Interest and Principal of
Securities program ("STRIPS") or any similar program sponsored by the US
government. STRIPS are sold as zero coupon securities.
Other Debt Obligations. The Portfolio may invest in deposits, bonds, notes and
debentures and other debt obligations that at the time of purchase meet the
Portfolio's minimum credit quality standards, or, if unrated, have been
determined by the Advisor to be of comparable quality or, if the obligations
have no short-term rating, are rated in one of the top three highest long-term
rating categories or have been determined by the Advisor to be of comparable
quality.
Asset-Backed Securities. The Portfolio may invest in securities generally
referred to as asset-backed securities. Asset-backed securities are secured by
and payable from, or directly or indirectly represent undivided fractional
interests in, assets such as pools of consumer loans, trade receivables or other
types of loans held in a trust. Such assets are securitized through the use of
trusts and special purpose corporations. Asset-backed securities may provide
periodic payments that consist of interest and/or principal payments.
Consequently, the life of an asset-backed security varies with the prepayment
and loss experience of the underlying assets. Payments of principal and interest
are typically supported by some form of credit enhancement, such as a letter of
credit, surety bond, limited guarantee or senior/subordination. The degree of
credit enhancement varies, but generally amounts to only a fraction of the
asset-backed security's par value until exhausted. If the credit enhancement is
exhausted, certificate-holders may experience losses or delays in payment if the
required payments of principal and interest are not made to the trust with
respect to the underlying loans. The value of the securities also may change
because of changes in the market's perception of creditworthiness of the
servicing agent for the loan pool, the originator of the loans or the financial
institution providing the credit enhancement. Asset-backed securities are
ultimately dependent upon payment of loans and receivables by individuals,
businesses and other borrowers, and the certificate-holder generally has no
recourse against the entity that originated the loans.
The underlying assets of asset-backed securities include assets such as (but not
limited to) first lien mortgages, motor vehicle installment sale contracts,
other installment sale contracts, home equity loans, leases of various types of
real and personal property, receivables from revolving credit (credit card)
agreements and trade receivables. Payments or distributions of principal and
interest on asset-backed securities may be guaranteed up to certain amounts and
for a certain time period by a letter of credit or a pool insurance policy
issued by a financial institution unaffiliated with the issuer, or other credit
enhancements may be present.
Asset-backed securities present certain risks. Primarily, these securities do
not have the benefit of a security interest in the related collateral. Credit
card receivables are generally unsecured, and the debtors are entitled to the
protection of a number of state and federal consumer credit laws, many of which
give such debtors the right to avoid payment of certain amounts owed on the
credit cards, thereby reducing the balance due. Most issuers of automobile
receivables permit the servicer to retain possession of the underlying
obligations. If the servicer were to sell these obligations to another party,
there is a risk that the purchaser would acquire an interest superior to that of
the holders of the related automobile receivables. In addition, because of the
large number of vehicles involved in a typical issuance and technical
requirements under state laws, the trustee for the holders of the automobile
receivables may not have a proper security interest in all of the obligations
backing such receivables. Therefore, there is the possibility that recoveries on
repossessed collateral may not, in some cases, be available to support payments
on these securities.
The asset-backed securities in which the Portfolio may invest are limited to
those which satisfy the requirements contained in Rule 2a-7 under the Investment
Company Act of 1940 (the "1940 Act").
The yield characteristics of the asset-backed securities in which the Portfolio
may invest differ from those of traditional debt securities. Among the major
differences are that interest and principal payments are made more frequently on
asset-backed securities (usually monthly) and that principal may be prepaid at
any time because the underlying assets generally may be prepaid at any time. As
a result, if the Portfolio purchases these securities at a premium, a prepayment
rate that is faster than expected will reduce their yield, while a prepayment
rate that is slower than expected will have the opposite effect of increasing
yield. Conversely, if the Portfolio purchases these securities at a discount,
faster than expected prepayments will increase, while slower than expected
prepayments will reduce, the yield on these securities. Amounts available for
reinvestment by the Portfolio are likely to be greater during a period of
declining interest rates and, as a result, are likely to be reinvested at lower
interest rates than during a period of rising interest rates.
Repurchase Agreements. The Portfolio may engage in repurchase agreement
transactions with members of the Federal Reserve System, certain non-US banks
and certain non-bank entities. Under the terms of a typical repurchase
agreement, the Portfolio would acquire any underlying security for a relatively
short period (usually not more than one week), subject to an obligation of the
seller to repurchase, and the Portfolio to resell, the obligation at an agreed
price and time, thereby determining the yield during the Portfolio's holding
period. This arrangement results in a fixed rate of return that is not subject
to market fluctuations during the Portfolio's holding period. The value of the
underlying securities will be at least equal at all times to the total amount of
the repurchase obligation, including interest. The Portfolio bears a risk of
loss in the event of default by or bankruptcy of the other party to a repurchase
agreement. The Portfolio may be delayed in, or prevented from, exercising its
rights to dispose of the collateralized securities. To the extent that, in the
meantime, the value of the underlying securities had decreased or the value of
the collateralized securities had increased, the Portfolio could experience a
loss. The Advisor reviews the creditworthiness of those banks and dealers with
which the Portfolio enters into repurchase agreements and monitors on an ongoing
basis the value of the securities subject to repurchase agreements to ensure
that it is maintained at the required level. A repurchase agreement is
considered to be a loan under the 1940 Act.
Reverse Repurchase Agreements. The Portfolio may borrow funds by, among other
things, agreeing to sell portfolio securities to financial institutions that
meet the standards described under "Repurchase Agreements" and to repurchase
them at a mutually agreed date and price (a "reverse repurchase agreement"). The
Portfolio may enter into reverse repurchase agreements with banks and domestic
broker-dealers. At the time the Portfolio enters into a reverse repurchase
agreement it will identify on its books cash or liquid securities having a value
equal to the repurchase price, including accrued interest. The marked assets
will be marked-to-market daily and additional assets will be marked on any day
in which the assets fall below the repurchase price (plus accrued interest). The
Portfolio's liquidity and ability to manage its assets might be affected when it
sets aside cash or portfolio securities to cover such commitments. Reverse
repurchase agreements involve the risk that the market value of the securities
sold by the Portfolio may decline below the repurchase price of those
securities. In the event the buyer of securities under a reverse repurchase
agreement files for bankruptcy or becomes insolvent, such buyer or its trustee
or receiver may receive an extension of time to determine whether to enforce the
Portfolio's obligation to repurchase the securities, and the Portfolio's use of
the proceeds of the reverse repurchase agreement may effectively be restricted
pending such decision. Reverse repurchase agreements are considered to be
borrowings by the Portfolio under the 1940 Act.
When-Issued and Delayed-Delivery Securities. The Portfolio may purchase
securities on a when-issued or delayed-delivery basis. Delivery of and payment
for these securities can take place a month or more after the date of the
purchase commitment. The payment obligation and the interest rate that will be
received on when-issued and delayed-delivery securities are fixed at the time
the buyer enters into the commitment. Due to fluctuations in the value of
securities purchased or sold on a when-issued or delayed-delivery basis, the
yields obtained on such securities may be higher or lower than the yields
available in the market on the dates when the investments are actually delivered
to the buyers. When-issued securities may include securities purchased on a
"when, as and if issued" basis, under which the issuance of the security depends
on the occurrence of a subsequent event, such as approval of a merger, corporate
reorganization or debt restructuring. The value of such securities is subject to
market fluctuation during this period and no interest or income, as applicable,
accrues to the Portfolio until settlement takes place.
At the time the Portfolio make the commitment to purchase securities on a
when-issued or delayed delivery basis, it will record the transaction, reflect
the value each day of such securities in determining its net asset value and, if
applicable, calculate the maturity for the purposes of average maturity from
that date. At the time of settlement a when-issued security may be valued at
less than the purchase price. To facilitate such acquisitions, the Portfolio
identifies on its books cash or liquid assets in an amount at least equal to
such commitments. It may be expected that the Portfolio's net assets will
fluctuate to a greater degree when it sets aside portfolio securities to cover
such purchase commitments than when it sets aside cash. On delivery dates for
such transactions, the Portfolio will meet its obligations from maturities or
sales of the segregated securities and/or from cash flow. If the Portfolio
chooses to dispose of the right to acquire a when-issued security prior to its
acquisition, it could, as with the disposition of any other portfolio
obligation, incur a gain or loss due to market fluctuation. When the Portfolio
engages in when-issued or delayed-delivery transactions, it relies on the other
party to consummate the trade. Failure of the seller to do so may result in the
Portfolio's incurring a loss or missing an opportunity to obtain a price
considered to be advantageous.
Investment in Other Investment Companies. In accordance with applicable law, the
Portfolio may invest its assets in other money market funds with comparable
investment objectives. In general, the Portfolio may not (1) purchase more than
3% of any other money market fund's voting stock; (2) invest more than 5% of its
assets in any single money market fund; and (3) invest more than 10% of its
assets in other money market funds unless permitted to exceed these limitations
by an exemptive order of the Securities and Exchange Commission (the "SEC"). As
a shareholder of another money market fund, the Portfolio would bear, along with
other shareholders, their pro rata portion of the other money market fund's
expenses, including advisory fees. These expenses would be in addition to the
advisory and other expenses that the Portfolio bears directly (and the Fund
bears indirectly on a pro rata basis) in connection with its own operations.
Credit Enhancement. Certain of the Portfolio's acceptable investments may be
credit-enhanced by a guaranty, letter of credit, or insurance from a third
party. Any bankruptcy, receivership, default, or change in the credit quality of
the third party providing the credit enhancement may adversely affect the
quality and marketability of the underlying security and could cause losses to
the Portfolio and affect the Portfolio's share price. Subject to the
diversification limits contained in Rule 2a-7 under the 1940 Act, the Portfolio
may have more than 25% of its total assets invested in securities issued by or
credit-enhanced by banks or other financial institutions.
Lending of Portfolio Securities. The Portfolio has the authority to lend up to
30% of the total value of its portfolio securities (taken at market value). The
Portfolio may lend its investment securities to approved institutional
borrowers, including those who need to borrow securities in order to complete
certain transactions, such as covering short sales, avoiding failures to deliver
securities or completing arbitrage operations. By lending its investment
securities, the Portfolio attempts to increase its net investment income through
the receipt of interest on the loan. Any gain or loss in the market price of the
securities loaned that might occur during the term of the loan would belong to
the Portfolio. The Portfolio may lend its investment securities so long as the
terms, structure and the aggregate amount of such loans are not inconsistent
with the 1940 Act or the rules and regulations or interpretations of the SEC
there under, which currently require that (a) the borrower pledge and maintain
with the Portfolio collateral consisting of liquid, unencumbered assets having a
value at all times not less than 100% of the value of the securities loaned, (b)
the borrower add to such collateral whenever the price of the securities loaned
rises (i.e., the borrower "marks to the market" on a daily basis), (c) the loan
be made subject to termination by the Portfolio at any time, and (d) the
Portfolio receives reasonable interest on the loan (which may include the
Portfolio investing any cash collateral in interest bearing short-term
investments), and distributions on the loaned securities and any increase in
their market value. There may be risks of delay in recovery of the securities or
even loss of rights in the collateral should the borrower of the securities fail
financially. However, loans will be made only to borrowers selected by the
Portfolio's delegate after a commercially reasonable review of relevant facts
and circumstances, including the creditworthiness of the borrower. Payments
received by a Portfolio in lieu of any dividends paid on the loaned securities
will not be treated as "qualified dividend income" for purposes of determining
what portion of a Fund's dividends received by individuals may be taxed at the
rates generally applicable to ling-term capital gains. See "Taxes."
At the present time, the staff of the SEC does not object if an investment
company pays reasonable negotiated fees in connection with loaned securities, so
long as such fees are set forth in a written contract and approved by the
investment company's Board of Trustees. In addition, voting rights may pass with
the loaned securities, but if a material event occurs affecting an investment on
loan, the loan must be called and the securities voted. Pursuant to an exemptive
order granted by the SEC, cash collateral received by the Portfolio may be
invested in a money market fund managed by the Advisor (or one of its
affiliates).
Illiquid Securities. Historically, illiquid securities have included securities
subject to contractual or legal restrictions on resale because they have not
been registered under the Securities Act of 1933, as amended (the "1933 Act"),
securities which are otherwise not readily marketable and repurchase agreements
having a maturity of longer than seven days. Securities which have not been
registered under the 1933 Act are referred to as private placements or
restricted securities and are purchased directly from the issuer or in the
secondary market. Investments in non-publicly traded securities (including Rule
144A Securities, as defined below) may involve a high degree of business and
financial risk and may result in substantial losses. These securities may be
less liquid than publicly traded securities, and it may take longer to liquidate
these positions than would be the case for publicly traded securities. Companies
whose securities are not publicly traded may not be subject to the disclosure
and other investor protection requirements applicable to companies whose
securities are publicly traded. Limitations on resale may have an adverse effect
on the marketability of portfolio securities and a mutual fund might be unable
to dispose of restricted or other illiquid securities promptly or at reasonable
prices and might thereby experience difficulty satisfying redemptions within
seven days. An investment in illiquid securities is subject to the risk that,
should the Portfolio desire to sell any of these securities when a ready buyer
is not available at a price that is deemed to be representative of their value,
the value of the Portfolio's net assets could be adversely affected.
Mutual funds do not typically hold a significant amount of these restricted or
other illiquid securities because of the potential for delays on resale and
uncertainty in valuation. A mutual fund might also have to register such
restricted securities in order to dispose of them resulting in additional
expense and delay. Adverse market conditions could impede such a public offering
of securities.
A large institutional market has developed for certain securities that are not
registered under the 1933 Act, including repurchase agreements, commercial
paper, non-US securities, municipal securities and corporate bonds and notes.
Institutional investors depend on an efficient institutional market in which the
unregistered security can be readily resold or on an issuer's ability to honor a
demand for repayment. The fact that there are contractual or legal restrictions
on resale of such investments to the general public or to certain institutions
may not be indicative of their liquidity.
The SEC has adopted Rule 144A, which allows a broader institutional trading
market for securities otherwise subject to restriction on their resale to the
general public. Rule 144A establishes a "safe harbor" from the registration
requirements of the 1933 Act for resales of certain securities to qualified
institutional buyers ("Rule 144A Securities"). The Advisor anticipates that the
market for certain restricted securities such as institutional commercial paper
will expand further as a result of this regulation and the development of
automated systems for the trading, clearance and settlement of unregistered
securities of domestic and non-US issuers, such as the PORTAL System sponsored
by the Financial Industry Regulatory Authority ("FINRA").
An investment in Rule 144A Securities will be considered illiquid and therefore
subject to the Portfolio's limit on the purchase of illiquid securities unless
the Advisor determines that the Rule 144A Securities are liquid. In reaching
liquidity decisions, the Advisor may consider, inter alia, the following
factors: (i) the unregistered nature of the security; (ii) the frequency of
trades and quotes for the security; (iii) the number of dealers wishing to
purchase or sell the security and the number of other potential purchasers; (iv)
dealer undertakings to make a market in the security and (v) the nature of the
security and the nature of the marketplace trades (e.g., the time needed to
dispose of the security, the method of soliciting offers and the mechanics of
the transfer).
Investing in Rule 144A Securities could have the effect of increasing the level
of illiquidity in the Portfolio to the extent that qualified institutional
buyers are unavailable or uninterested in purchasing such securities from the
Portfolio. The Board has adopted guidelines and delegated to the Advisor the
daily function of determining and monitoring the liquidity of Rule 144A
Securities, although the Board will retain ultimate responsibility for any
liquidity determinations.
Impact of Sub-Prime Mortgage Market. The Fund may invest in mortgage-backed,
asset-backed and other fixed-income securities whose value and liquidity may be
adversely affected by the critical downturn in the sub-prime mortgage lending
market in the US. Sub-prime loans, which, have higher interest rates, are made
to borrowers with low credit ratings or other factors that increase the risk of
default. Concerns about widespread defaults on sub-prime loans have also created
heightened volatility and turmoil in the general credit markets. As a result,
the Fund's investments in certain fixed-income securities may decline in value,
their market value may be more difficult to determine, and the Fund may have
more difficulty disposing of them.
Impact of Large Redemptions and Purchases of Fund Shares. From time to time,
shareholders of the Fund (which may include affiliated and/or non-affiliated
registered investment companies that invest in the Fund) may make relatively
large redemptions or purchases of Fund shares. These transactions may cause the
Fund to have to sell securities or invest additional cash, as the case may be.
While it is impossible to predict the overall impact of these transactions over
time, there could be adverse effects on the Fund's performance to the extent
that the Fund may be required to sell securities or invest cash at times when it
would not otherwise do so. These transactions could also accelerate the
realization of taxable income if sales of securities resulted in capital gains
or other income and could also increase transaction costs, which may impact the
Fund's expense ratio.
Additional Risk Factors
In addition to the risks discussed above, the Portfolio's investments may be
subject to the following risk factors:
Special Information Concerning Master-Feeder Fund Structure. Unlike other
open-end management investment companies (mutual funds) which directly acquire
and manage their own portfolio securities, the Fund seeks to achieve its
investment objective by investing substantially all of its assets in the
Portfolio, a separate registered investment company with the same investment
objective as the Fund. Therefore, an investor's interest in the Portfolio's
securities is indirect. In addition to selling a beneficial interest to the
Fund, the Portfolio may sell beneficial interests to other mutual funds,
investment vehicles or institutional investors. Such investors will invest in
the Portfolio on the same terms and conditions and will pay a proportionate
share of the Portfolio's expenses. However, the other investors investing in the
Portfolio are not required to sell their shares at the same public offering
price as the Fund due to variations in sales commissions and other operating
expenses. Therefore, investors in the Fund should be aware that these
differences may result in differences in returns experienced by investors in the
different funds that invest in the Portfolio. Such differences in returns are
also present in other mutual fund structures. Information concerning other
holders of interests in the Portfolio is available from the Advisor at (800)
730-1313, with respect to Institutional Shares and Managed Shares, and at (800)
728-3337, with respect to Prime Reserve Class S Shares and Premium Class S
Shares.
Smaller funds investing in the Portfolio may be materially affected by the
actions of larger funds investing in the Portfolio. For example, if a large fund
withdraws from the Portfolio, the remaining funds may experience higher pro rata
operating expenses, thereby producing lower returns (however, this possibility
exists as well for traditionally structured funds which have large institutional
investors). Also, the Portfolio may be required to sell investments at a price
or time not advantageous to the Portfolio in order to meet such a redemption.
Additionally, the Portfolio may become less diverse, resulting in increased
portfolio risk. Also, funds with a greater pro rata ownership in the Portfolio
could have effective voting control of the operations of the Portfolio. Except
as permitted by the SEC, whenever the Fund is requested to vote on matters
pertaining to the Portfolio, the Fund will hold a meeting of shareholders of the
Fund and will cast all of its votes in the same proportion as the votes of the
Fund's shareholders.
Certain changes in the Portfolio's investment objectives, policies or
restrictions may require the Fund to withdraw its interest in the Portfolio. Any
such withdrawal could result in a distribution "in kind" of portfolio securities
(as opposed to a cash distribution from the Portfolio). If securities are
distributed, the Fund could incur brokerage, tax or other charges in converting
the securities to cash. In addition, the distribution in kind may result in a
less diversified portfolio of investments or adversely affect the liquidity of
the Fund. Notwithstanding the above, there are other means for meeting
redemption requests, such as borrowing.
The Fund may withdraw its investment from the Portfolio at any time, if the
Board of Trustees of DWS Money Market Trust (the "Trust") determines that it is
in the best interests of the shareholders of the Fund to do so. Upon any such
withdrawal, the Board of Trustees would consider what action might be taken,
including the investment of all the assets of the Fund in another pooled
investment entity having the same investment objective as the Fund or the
retaining of an investment advisor to manage the Fund's assets in accordance
with the investment policies described herein with respect to the Portfolio.
Rating Services. The ratings of Moody's Investor Service ("Moody's"), the
Standard & Poor's Division of The McGraw-Hill Companies ("S&P") and Fitch
Ratings ("Fitch") represent their opinions as to the quality of the securities
that they undertake to rate. It should be emphasized, however, that ratings are
relative and subjective and are not absolute standards of quality. Although
these ratings are an initial criterion for selection of portfolio investments,
the Advisor also makes its own evaluation of these securities, subject to review
by the Board of Trustees. After purchase by the Portfolio, an obligation may
cease to be rated or its rating may be reduced below the minimum required for
purchase by the Portfolio. The Advisor will cause the Portfolio to dispose of
any security as soon as practicable if the security is no longer of the
requisite quality, unless such action would not be in the best interest of the
Portfolio. A description of the ratings used herein and in the Prospectus is set
forth in the Appendix to this SAI.
Portfolio Holdings
In addition to the public disclosure of Fund portfolio holdings through required
Securities and Exchange Commission ("SEC") quarterly filings, the Fund may make
its portfolio holdings information publicly available on the DWS Funds' Web site
as described in the Fund's prospectus. The Fund does not disseminate non-public
information about portfolio holdings except in accordance with policies and
procedures adopted by the Fund.
The Fund's procedures permit non-public portfolio holdings information to be
shared with Deutsche Asset Management and its affiliates (collectively "DeAM"),
subadvisors, if any, custodians, independent registered public accounting firms,
attorneys, officers and trustees/directors and each of their respective
affiliates and advisers who require access to this information to fulfill their
duties to the Fund and are subject to the duties of confidentiality, including
the duty not to trade on non-public information, imposed by law or contract, or
by the Fund's procedures. This non-public information may also be disclosed,
subject to the requirements described below, to securities lending agents,
financial printers, proxy voting firms, mutual fund analysts and rating and
tracking agencies, or to shareholders in connection with in-kind redemptions
(collectively, "Authorized Third Parties").
Prior to any disclosure of the Fund's non-public portfolio holdings information
to Authorized Third Parties, a person authorized by the Fund's Trustees must
make a good faith determination in light of the facts then known that the Fund
has a legitimate business purpose for providing the information, that the
disclosure is in the best interest of the Fund, and that the recipient assents
or otherwise has a duty to keep the information confidential and to not trade
based on the information received while the information remains non-public. No
compensation is received by the Fund or DeAM for disclosing non-public holdings
information. Periodic reports regarding these procedures will be provided to the
Fund's Trustees.
Portfolio holdings information distributed by the trading desks of DeAM or a
subadvisor for the purpose of facilitating efficient trading of such securities
and receipt of relevant research is not subject to the foregoing requirements.
Non-public portfolio holding information does not include portfolio
characteristics (other than holdings or subsets of holdings) about the Fund and
information derived therefrom, including, but not limited to, how the Fund's
investments are divided among various sectors, industries, countries, value and
growth stocks, bonds, currencies and cash, types of bonds, bond maturities,
duration, bond coupons and bond credit quality ratings so long as the Fund's
holdings could not be derived from such information.
Registered investment companies that are subadvised by DeAM may be subject to
different portfolio holdings disclosure policies, and neither DeAM nor the
Fund's Trustees exercise control over such policies. In addition, separate
account clients of DeAM have access to their portfolio holdings and are not
subject to the Fund's portfolio holdings disclosure policy. The portfolio
holdings of some of the funds subadvised by DeAM and some of the separate
accounts managed by DeAM may substantially overlap with the portfolio holdings
of the Fund.
DeAM also manages certain unregistered commingled trusts and creates model
portfolios, the portfolio holdings of which may substantially overlap with the
portfolio holdings of the Fund. To the extent that investors in these commingled
trusts or recipients of model portfolio holdings information may receive
portfolio holdings information of their trust or of a model portfolio on a
different basis from that on which fund portfolio holdings information is made
public, DeAM has implemented procedures reasonably designed to encourage such
investors and recipients to keep such information confidential, and to prevent
those investors from trading on the basis of non-public holdings information.
There is no assurance that the Fund's policies and procedures with respect to
the disclosure of portfolio holdings information will protect the Fund from the
potential misuse of portfolio holdings information by those in possession of
that information.
MANAGEMENT OF THE FUND
Investment Advisor
Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is
part of Deutsche Asset Management, is the investment advisor for the Fund and
the Portfolio. The Fund seeks to achieve its investment objective by investing
substantially all its assets into the Portfolio. Under the supervision of the
Board of Trustees, DIMA, with headquarters at 345 Park Avenue, New York, New
York 10154, makes the Portfolio's investment decisions, buys and sells
securities for the Portfolio and conducts research that leads to these purchase
and sale decisions. The Advisor manages the Portfolio's daily investment and
business affairs subject to the policies established by the Board. DIMA and its
predecessors have more than 80 years of experience managing mutual funds. DIMA
provides a full range of investment advisory services to institutional and
retail clients. The Portfolio's investment advisor is also responsible for
selecting brokers and dealers and for negotiating brokerage commissions and
dealer charges.
DeAM is the marketing name in the US for the asset management activities of
Deutsche Bank AG, DIMA, Deutsche Asset Management, Inc., Deutsche Bank Trust
Company Americas and DWS Trust Company. DeAM is a global asset management
organization that offers a wide range of investing expertise and resources,
including hundreds of portfolio managers and analysts and an office network that
reaches the world's major investment centers. This well resourced global
investment platform brings together a wide variety of experience and investment
insight, across industries, regions, asset classes and investing styles. DIMA is
an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a
major global banking institution that is engaged in a wide range of financial
services, including investment management, mutual fund, retail, private and
commercial banking, investment banking and insurance. The term "DWS Scudder" is
the designation given to the products and services provided by DIMA and its
affiliates to the DWS Mutual Funds.
Pursuant to each investment management agreement with the Fund and the
Portfolio, the Advisor acts as investment advisor, manages its investments,
administers its business affairs, furnishes office facilities and equipment,
provides clerical and administrative services and permits its officers and
employees to serve without compensation as trustees or officers of the Fund and
Portfolio if elected to such positions. DIMA provides investment counsel for
many individuals and institutions, including insurance companies, industrial
corporations, and financial and banking organizations, as well as providing
investment advice to open- and closed-end SEC registered funds. In certain
cases, the investments for the Portfolio, and in some cases the Fund, are
managed by the same individuals who manage one or more other mutual funds
advised by the Advisor that have similar names, objectives and investment
styles. You should be aware that the Portfolio, and the Fund, if applicable, are
likely to differ from these other mutual funds in size, cash flow pattern and
tax matters. Accordingly, the holdings and performance of the Portfolio and the
Fund can be expected to vary from those of these other mutual funds.
Certain investments may be appropriate for the Portfolio or the Fund and also
for other clients advised by the Advisor. Investment decisions for the Portfolio
or the Fund and other clients are made with a view to achieving their respective
investment objectives and after consideration of such factors as their current
holdings, availability of cash for investment and the size of their investments
generally. Frequently, a particular security may be bought or sold for only one
client or in different amounts and at different times for more than one but less
than all clients. Likewise, a particular security may be bought for one or more
clients when one or more other clients are selling the security. In addition,
purchases or sales of the same security may be made for two or more clients on
the same day. In such event, such transactions will be allocated among the
clients in a manner believed by the Advisor to be equitable to each. In some
cases, this procedure could have an adverse effect on the price or amount of the
securities purchased or sold by the Portfolio or the Fund. Purchase and sale
orders for the Portfolio, or the Fund as appropriate, may be combined with those
of other clients of the Advisor in the interest of achieving the most favorable
net results to the Fund.
The Board and the shareholders of the Portfolio and the Fund, respectively,
approved an amended and restated investment management agreement (the
"Investment Management Agreements" and each an "Investment Management
Agreement"). Pursuant to the Investment Management Agreements, the Advisor
provides continuing investment management of the assets of the Fund and the
Portfolio. In addition to the investment management of the assets of the Fund
and the Portfolio, the Advisor determines the investments to be made for the
Fund and the Portfolio, including what portion of its assets remain uninvested
in cash or cash equivalents, and with whom the orders for investments are
placed, consistent with the policies set forth in its Prospectus and SAI, or as
adopted by the Board. The Advisor will also monitor, to the extent not monitored
by the administrator or other agent of the Fund or Portfolio, the compliance
with its investment and tax guidelines and other compliance policies.
The Advisor provides assistance to the Board in valuing the securities and other
instruments held by the Portfolio or Fund, as appropriate, to the extent
reasonably required by valuation policies and procedures that may be adopted by
the Portfolio or Fund.
Pursuant to the Investment Management Agreements, (unless otherwise provided in
the agreement or as determined by the Board and to the extent permitted by
applicable law), the Advisor pays the compensation and expenses of all the Board
members, officers, and executive employees of the Fund and Portfolio, including
its share of payroll taxes, who are affiliated persons of the Advisor.
The Investment Management Agreements provide that the Fund and the Portfolio are
each generally responsible for expenses that include: fees payable to the
Advisor; outside legal, accounting or auditing expenses, including with respect
to expenses related to negotiation, acquisition or distribution of portfolio
investments; maintenance of books and records that are maintained by the Fund
and the Portfolio, the custodian, or other agents of the Fund and the Portfolio,
respectively; taxes and governmental fees; fees and expenses of the Portfolio's,
or Fund's, accounting agent, custodian, sub-custodians, depositories, transfer
agents, dividend reimbursing agents and registrars; payment for portfolio
pricing or valuation services to pricing agents, accountants, bankers and other
specialists, if any; brokerage commissions or other costs of acquiring or
disposing of any portfolio securities or other instruments of the Fund and the
Portfolio; and litigation expenses and other extraordinary expenses not incurred
in the ordinary course of the Portfolio's, or Fund's, business.
The Investment Management Agreements allow the Advisor to delegate any of its
duties under each agreement to a subadvisor, subject to a majority vote of the
Board, including a majority of the Board who are not interested persons, and, if
required by applicable law, subject to a majority vote of the shareholders of
the Fund or Portfolio, as appropriate.
The Investment Management Agreements provide that the Advisor shall not be
liable for any error of judgment or mistake of law or for any loss suffered by
the Fund or Portfolio in connection with matters to which the agreement relates,
except a loss resulting from willful malfeasance, bad faith or gross negligence
on the part of the Advisor in the performance of its duties or from reckless
disregard by the Advisor of its obligations and duties under the agreement. The
Investment Management Agreements may be terminated at any time, without payment
of penalty, by either party or by vote of a majority of the outstanding voting
securities of the Portfolio on 60 days' written notice.
Effective July 30, 2007, for all services provided under the Investment
Management Agreement with the Fund, the Fund pays the Advisor a fee equal to
0.000% of the Fund's net assets if substantially all of the Fund's assets are
invested in the Portfolio. Otherwise the Fund will pay the Advisor a fee,
computed daily and paid monthly, at the annual rate as a percentage of net
assets shown below:
DWS Money Market Series 0.165% to $1.5 billion
0.150% next $1.75 billion
0.135% next $1.75 billion
0.120% thereafter
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Effective August 1, 2007, for all services provided under the Investment
Management Agreement with the Portfolio, the Portfolio pays the Advisor a fee,
computed and accrued daily and paid monthly, at the annual rate of 0.150% of the
first $3 billion of the Portfolio's average daily net assets, 0.133% of the next
$4.5 billion of the Portfolio's average daily net assets and 0.120% over $7.5
billion of the Portfolio's average daily net assets. For the period from May 14,
2007 through July 31, 2007, the Portfolio paid the Advisor a fee, computed and
accrued daily and paid monthly, at the annual rate of 0.150% of the first $5.5
billion of the Portfolio's average daily net assets, 0.135% of the next $5
billion of the Portfolio's average daily net assets and 0.120% over $10.5
billion of the Portfolio's average daily net assets. Prior to May 14, 2007, the
Portfolio paid the Advisor an annual advisory fee of 0.15%, based on its average
daily net assets, calculated daily and paid monthly.
For the Fund's period from June 1, 2007 through July 29, 2007, the Advisor
aggregated fees of $4,759,371, of which all were waived. For the Fund's fiscal
year ended May 31, 2007, the Advisor aggregated fees of $22,087,465, of which
all were waived. For the Fund's fiscal year ended May 31, 2006*, the Advisor did
not impose fees of $17,730,108 and did impose fees of $10,367,601. For the
Fund's fiscal year ended May 31, 2005*, the Advisor did not impose fees of
$15,647,929 and did impose fees of $12,557,013. Through July 31, 2004, the
Advisor had voluntarily agreed to waive a portion of its investment management
fee by 0.15%.
* Prior to June 1, 2006, these fees included an administrative service fee.
For the Portfolio's fiscal year ended December 31, 2007, the Advisor aggregated
fees of $27,236,671, of which $6,007,663 was waived.
Effective July 30, 2007, the management fee is accrued and paid by the Cash
Management Portfolio and allocated to the Fund.
The Portfolio's Advisor has contractually agreed through July 29, 2010 to waive
all or a portion of its management fee and reimburse or pay certain operating
expenses (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest expenses) to the extent necessary to maintain the annual
expenses of the Portfolio at 0.15% of the Portfolio's average daily net assets.
Effective February 5, 2008, the Advisor has voluntarily agreed to waive 0.13% of
the Fund's total operating expenses. This voluntary waiver or reimbursement may
be terminated at any time at the option of the Advisor. Through September 30,
2007, the Advisor has contractually agreed to waive all or a portion of its
management fee and reimburse or pay operating expenses of the fund to the extent
necessary to maintain the fund's total annual operating expenses at ratios no
higher than 0.28% for Premium Class S shares, 0.37% for Prime Reserve Class S
shares, 0.20% for Managed Shares and 0.15% for Institutional Shares,
respectively, excluding certain expenses such as extraordinary expenses, taxes,
brokerage, interest and organizational and offering expenses.
In reviewing the terms of the Investment Management Agreement and in discussions
with the Advisor concerning such agreement, the Trustees of the Trust who are
not "interested persons" of the Advisor are represented by independent counsel
at the Fund's expense.
Officers and employees of the Advisor from time to time may have transactions
with various banks, including the Fund's custodian bank. It is the Advisor's
opinion that the terms and conditions of those transactions which have occurred
were not influenced by existing or potential custodial or other Fund
relationships.
The Advisor may enter into arrangements with affiliates and third party service
providers to perform various administrative, back-office and other services
relating to client accounts. Such service providers may be located in the US or
in non-US jurisdictions.
In addition, the Board and shareholders have approved a new subadvisor approval
policy for the Fund and the Portfolio (the "Subadvisor Approval Policy"). The
Subadvisor Approval Policy permits the Advisor, subject to the approval of the
Board, including a majority of its independent board members, to appoint and
replace subadvisors and to amend sub-advisory contracts without obtaining
shareholder approval. Under the Subadvisor Approval Policy, the Board, including
its independent board members, will continue to evaluate and approve all new
sub-advisory contracts between the Advisor and any subadvisor, as well as all
changes to any existing sub-advisory contract. The Fund and the Portfolio cannot
implement the Subadvisor Approval Policy without the SEC either adopting
revisions to current rules (as it proposed to do in October 2003) or granting
the Fund and the Portfolio exemptive relief from existing rules. The Fund, the
Portfolio and the Advisor would be subject to certain conditions imposed by the
SEC (and certain conditions that may be imposed in the future within either
exemptive relief or a rule) to ensure that the interests of the Fund and the
Portfolio and their respective shareholders are adequately protected whenever
the Advisor acts under the Subadvisor Approval Policy, including any shareholder
notice requirements.
Code of Ethics
The Board of Trustees of the Trust has adopted a Code of Ethics pursuant to Rule
17j-1 under the 1940 Act. The Trust's Code of Ethics permits access persons of
the Fund/Portfolio (Board members, officers and employees of the Advisor), to
make personal securities transactions for their own accounts. This includes
transactions in securities that may be purchased or held by the Fund/Portfolio,
but requires compliance with the Code's pre-clearance requirements, subject to
certain exceptions. In addition, the Trust's Code of Ethics provides for trading
"blackout periods" that prohibit trading of personnel within periods of trading
by the Fund/Portfolio in the same security. The Trust's Code of Ethics also
prohibits short term trading profits and personal investment in initial public
offerings and requires prior approval with respect to purchases of securities in
private placements.
The Advisor and its affiliates (including the Fund's Distributor, DWS-SDI) have
each adopted a Code of Ethics pursuant to 17j-1 under the 1940 Act (the
"Consolidated Code"). The Consolidated Code permits access persons to trade in
securities that may be purchased or held by the Fund/Portfolio for their own
accounts, subject to compliance with the Consolidated Code's preclearance
requirements. In addition, the Consolidated Code also provides for trading
"blackout periods" that prohibit trading by personnel within periods of trading
by the Portfolio in the same security. The Consolidated Code also prohibits
short term trading profits, and personal investment in initial public offerings
and requires prior approval with respect to purchases of securities in private
placements.
Regulatory Matters and Legal Proceedings
On December 21, 2006, Deutsche Asset Management ("DeAM") settled proceedings
with the Securities and Exchange Commission ("SEC") and the New York Attorney
General on behalf of Deutsche Asset Management, Inc. ("DAMI") and DIMA, the
investment advisors to many of the DWS Scudder funds, regarding allegations of
improper trading of fund shares at DeAM and at the legacy Scudder and Kemper
organizations prior to their acquisition by DeAM in April 2002. These regulators
alleged that although the prospectuses for certain funds in the regulators' view
indicated that the funds did not permit market timing, DAMI and DIMA breached
their fiduciary duty to those funds in that their efforts to limit trading
activity in the funds were not effective at certain times. The regulators also
alleged that DAMI and DIMA breached their fiduciary duty to certain funds by
entering into certain market timing arrangements with investors. These trading
arrangements originated in businesses that existed prior to the currently
constituted DeAM organization, which came together as a result of various
mergers of the legacy Scudder, Kemper and Deutsche fund groups, and all of the
arrangements were terminated prior to the start of the regulatory investigations
that began in the summer of 2003. No current DeAM employee approved these
trading arrangements. Under the terms of the settlements, DAMI and DIMA neither
admitted nor denied any wrongdoing.
The terms of the SEC settlement, which identified improper trading in the legacy
Deutsche and Kemper mutual funds only, provide for payment of disgorgement in
the amount of $17.2 million. The terms of the settlement with the New York
Attorney General provide for payment of disgorgement in the amount of $102.3
million, which is inclusive of the amount payable under the SEC settlement, plus
a civil penalty in the amount of $20 million. The total amount payable by DeAM,
approximately $122.3 million, will be distributed to shareholders of the
affected funds in accordance with a distribution plan to be developed by a
distribution consultant. The funds' investment advisors do not believe these
amounts will have a material adverse financial impact on them or materially
affect their ability to perform under their investment management agreements
with the DWS funds. The above-described amounts are not material to Deutsche
Bank, and have already been reserved.
Among the terms of the settled orders, DeAM is subject to certain undertakings
regarding the conduct of its business in the future, including formation of a
Code of Ethics Oversight Committee to oversee all matters relating to issues
arising under the advisors' Code of Ethics; establishment of an Internal
Compliance Controls Committee having overall compliance oversight responsibility
of the advisors; engagement of an Independent Compliance Consultant to conduct a
comprehensive review of the advisors' supervisory compliance and other policies
and procedures designed to prevent and detect breaches of fiduciary duty,
breaches of the Code of Ethics and federal securities law violations by the
advisors and their employees; and commencing in 2008, the advisors shall undergo
a compliance review by an independent third party.
In addition, DeAM is subject to certain further undertakings relating to the
governance of the mutual funds, including that at least 75% of the members of
the Boards of Trustees/Directors overseeing the DWS Funds continue to be
independent of DeAM; the Chairmen of the DWS Funds' Boards of Trustees/Directors
continue to be independent of DeAM; DeAM maintain existing management fee
reductions for certain funds for a period of five years and not increase
management fees for these certain funds during this period; the funds retain a
senior officer (or independent consultants, as applicable) responsible for
assisting in the review of fee arrangements and monitoring compliance by the
funds and the investment advisors with securities laws, fiduciary duties, codes
of ethics and other compliance policies, the expense of which shall be borne by
DeAM; and periodic account statements, fund prospectuses and the mutual funds'
web site contain additional disclosure and/or tools that assist investors in
understanding the fees and costs associated with an investment in the funds and
the impact of fees and expenses on fund returns.
DeAM has also settled proceedings with the Illinois Secretary of State regarding
market timing matters. The terms of the Illinois settlement provide for investor
education contributions totaling approximately $4 million and a payment in the
amount of $2 million to the Securities Audit and Enforcement Fund.
On September 28, 2006, the SEC and the National Association of Securities
Dealers ("NASD") (now known as FINRA) announced final agreements in which
Deutsche Investment Management Americas Inc. ("DIMA"), Deutsche Asset
Management, Inc. ("DAMI") and Scudder Distributors, Inc. ("DWS-SDI") (now known
as DWS Scudder Distributors, Inc.) settled administrative proceedings regarding
disclosure of brokerage allocation practices in connection with sales of the
Scudder Funds' (now known as the DWS Scudder Funds) shares during 2001-2003. The
agreements with the SEC and NASD are reflected in orders which state, among
other things, that DIMA and DAMI failed to disclose potential conflicts of
interest to the funds' Boards and to shareholders relating to DWS-SDI's use of
certain funds' brokerage commissions to reduce revenue sharing costs to
broker-dealer firms with whom it had arrangements to market and distribute
Scudder Fund shares. These directed brokerage practices were discontinued in
October 2003.
Under the terms of the settlements, in which DIMA, DAMI and DWS-SDI neither
admitted nor denied any of the regulators' findings, DIMA, DAMI and DWS-SDI
agreed to pay disgorgement, prejudgment interest and civil penalties in the
total amount of $19.3 million. The portion of the settlements distributed to the
funds was approximately $17.8 million and was paid to the funds as prescribed by
the settlement orders based upon the amount of brokerage commissions from each
fund used to satisfy revenue sharing agreements with broker-dealers who sold
fund shares.
As part of the settlements, DIMA, DAMI and DWS-SDI also agreed to implement
certain measures and undertakings relating to revenue sharing payments including
making additional disclosures in the funds' Prospectuses or Statements of
Additional Information, adopting or modifying relevant policies and procedures
and providing regular reporting to the fund Boards.
Additional information announced by DeAM regarding the terms of the settlements
is available at www.dws-scudder.com/regulatory_settlements.
The matters alleged in the regulatory settlements described above also serve as
the general basis of a number of private class action lawsuits involving the DWS
funds. These lawsuits name as defendants various persons, including certain DWS
funds, the funds' investment advisors and their affiliates, and certain
individuals, including in some cases fund Trustees/Directors, officers, and
other parties. Each DWS fund's investment advisor has agreed to indemnify the
applicable DWS funds in connection with these lawsuits, or other lawsuits or
regulatory actions that may be filed making similar allegations.
Based on currently available information, the funds' investment advisors believe
the likelihood that the pending lawsuits will have a material adverse financial
impact on a DWS fund is remote and such actions are not likely to materially
affect their ability to perform under their investment management agreements
with the DWS funds.
SERVICE PROVIDERS
Administrator
The Fund and the Portfolio have entered into administrative services agreements
with DIMA (the "Administrator') (the "Administrative Services Agreement"),
pursuant to which the Administrator provides administrative services to the Fund
and Portfolio including, among others, providing the Fund and Portfolio with
personnel, preparing and making required filings on behalf of the Fund and
Portfolio, maintaining books and records for the Fund and Portfolio, and
monitoring the valuation of securities. For all services provided under the
Administrative Services Agreement, the Fund pays the Administrator a fee,
computed daily and paid monthly, of 0.100% of the Fund's average daily net
assets. For all services provided under the Administrative Services Agreement,
the Portfolio pays the Administrator a fee, computed daily and paid monthly, of
0.030% of the Portfolio's average daily net assets.
Under the Administrative Services Agreement, the Administrator is obligated on a
continuous basis to provide such administrative services as the Board of the
Fund and Portfolio reasonably deems necessary for the proper administration of
the Fund and Portfolio. The Administrator provides the Fund and Portfolio with
personnel; arranges for the preparation and filing of the Fund's and Portfolio's
tax returns; prepares and submits reports and meeting materials to the Board and
the shareholders; prepares and files updates to the Fund's and Portfolio's
prospectus and statement of additional information as well as other reports
required to be filed by the SEC; maintains the Fund's and Portfolio's records;
provides the Fund and Portfolio with office space, equipment and services;
supervises, negotiates the contracts of and monitors the performance of third
parties contractors; oversees the tabulation of proxies; monitors the valuation
of portfolio securities and monitors compliance with Board-approved valuation
procedures; assists in establishing the accounting and tax policies of the Fund
and Portfolio; assists in the resolution of accounting issues that may arise
with respect to the Fund and Portfolio; establishes and monitors the Fund's and
Portfolio's operating expense budgets; reviews and processes the Fund's and
Portfolio's bills; assists in determining the amount of dividends and
distributions available to be paid by the Fund and Portfolio, prepares and
arranges dividend notifications and provides information to agents to effect
payments thereof; provides to the Board periodic and special reports; provides
assistance with investor and public relations matters; and monitors the
registration of shares under applicable federal and state law. The Administrator
also performs certain fund accounting services under the Administrative Services
Agreement. The Administrative Services Agreement provides that the Administrator
will not be liable under the Administrative Services Agreement except for
willful misfeasance, bad faith or negligence in the performance of its duties or
from the reckless disregard by it of its duties and obligations thereunder.
Pursuant to an agreement between the Administrator and State Street Bank and
Trust Company, the Administrator has delegated certain administrative functions
to SSB. The costs and expenses of such delegation are borne by the
Administrator, not by the Fund and Portfolio.
The fee payable by the Fund and Portfolio to the Administrator pursuant to the
Administrative Services Agreement is reduced by the amount of any credit
received from the custodian for cash balances.
For the period June 1, 2007 through December 31, 2007, and for the year ended
May 31, 2007, the Advisor received $13,812,319 and $17,270,804, respectively, as
compensation for administrative services provided to the Fund, of which
$10,801,752 and $2,438,267, respectively, were waived.
Through July 29, 2010, the Advisor has contractually agreed to waive all or a
portion of its administrative services fee and reimburse or pay operating
expenses of the Fund to the extent necessary to maintain the Fund's total
operating expenses at 0.28% for Premium Class S shares, 0.37% for Prime Reserve
Class S shares, 0.15% for Institutional Shares and 0.20% for Managed Shares,
excluding certain expenses such as extraordinary expenses, taxes, brokerage and
interest.
For the one-month ended June 30, 2007, DIMA received $1,772,787 as compensation
for administrative services provided to the Fund, of which $411,904 was waived.
For the fiscal year ended May 31, 2007, DIMA received $17,270,804 as
compensation for administrative services provided to the Fund, of which
$2,438,367 was waived.
For the year ended December 31, 2007, the Advisor received $6,287,793 as
compensation for administrative services provided to the Portfolio, of which
$911,650 is unpaid as of December 31, 2007.
Prior to June 1, 2006, DWS Scudder Fund Accounting Corporation ("DWS-SFAC"), a
subsidiary of the Advisor, was responsible for determining the daily net asset
value per share of the Fund and maintaining portfolio and general accounting
records. For the fiscal year ended May 31, 2006, the amount charged to the Fund
by DWS-SFAC for accounting services aggregated $513,308. For the fiscal year
ended May 31, 2005, the amount charged to the Fund by DWS-SFAC for accounting
services aggregated $378,535.
Pursuant to DeAM procedures approved by the Boards on behalf of the DWS funds,
proof of claim forms are routinely filed on behalf of the DWS funds by a third
party service provider, with certain limited exceptions. The Boards of the DWS
funds receive periodic reports regarding the implementation of these procedures.
Distributor
Effective September 30, 2002, the Trust has an underwriting agreement with DWS
Scudder Distributors, Inc. ("DWS-SDI" or the "Distributor"), 222 South Riverside
Plaza, Chicago, Illinois 60606, an affiliate of the Advisor, serves as
distributor and principal underwriter for the Trust to provide information and
services for existing and potential shareholders. The distribution agreement
provides that DWS-SDI shall appoint various firms to provide cash management
services for their customers or clients through the Fund. The Trust's
underwriting agreement was last approved by the Trustees on September 19, 2007
and will remain in effect until September 30, 2008.
Under the underwriting agreement, the Fund is responsible for: the payment of
all fees and expenses in connection with the preparation and filing with the SEC
of its registration statement and prospectus and any amendments and supplements
thereto; the registration and qualification of shares for sale in the various
states, including registering the Fund as a broker or dealer in various states,
as required; the fees and expenses of preparing, printing and mailing
prospectuses annually to existing shareholders (see below for expenses relating
to prospectuses paid by the Distributor); notices, proxy statements, reports or
other communications to shareholders of the Fund; the cost of printing and
mailing confirmations of purchases of shares and any prospectuses accompanying
such confirmations; any issuance taxes and/or any initial transfer taxes; a
portion of shareholder toll-free telephone charges and expenses of shareholder
service representatives; the cost of wiring funds for share purchases and
redemptions (unless paid by the shareholder who initiates the transaction); the
cost of printing and postage of business reply envelopes; and a portion of the
cost of computer terminals used by both the Fund and the Distributor.
The Distributor will pay for printing and distributing prospectuses or reports
prepared for its use in connection with the offering of the Fund's shares to the
public and preparing, printing and mailing any other literature or advertising
in connection with the offering of shares of the Fund to the public. The
Distributor will pay all fees and expenses in connection with its qualification
and registration as a broker or dealer under federal and state laws, a portion
of the cost of toll-free telephone service and expenses of shareholder service
representatives, a portion of the cost of computer terminals, and expenses of
any activity which is primarily intended to result in the sale of shares issued
by the Fund.
The Distributor currently offers shares of the Fund on a continuous basis to
investors in all states in which shares of the Fund may from time to time be
registered or where permitted by applicable law. The underwriting agreement
provides that the Distributor accepts orders for shares at net asset value as no
sales commission or load is charged to the investor. The Distributor has made no
firm commitment to acquire shares of the Fund.
Although the Fund does not currently have a 12b-1 Plan, and the Trustees have no
current intention of adopting one, a Fund will also pay those fees and expenses
permitted to be paid or assumed by the Trust pursuant to a 12b-1 Plan, if any,
adopted by the Trust, notwithstanding any other provision to the contrary in the
underwriting agreement.
Custodian
State Street Bank and Trust Company, ("SSB" or the "Custodian"), 225 Franklin
Street, Boston, Massachusetts 02101, serves as custodian for the Trust and the
Portfolio. As Custodian, SSB holds the Portfolio's assets.
Transfer Agent and Shareholder Service Agent
DWS Scudder Investments Service Company ("DWS-SISC" or the "Transfer Agent"),
210 West 10th Street, Kansas City, Missouri 64105-1614, an affiliate of the
Advisor, is the transfer, dividend-paying and shareholder service agent for the
Fund and as such performs the customary services of a Transfer Agent and
dividend disbursing agent. These services include, but are not limited to: (i)
receiving for acceptance in proper form orders for the purchase or redemption of
Fund shares and promptly effecting such orders; (ii) recording purchases of Fund
shares and, if requested, issuing stock certificates; (iii) reinvesting
dividends and distributions in additional shares or transmitting payments
therefor; (iv) receiving for acceptance in proper form transfer requests and
effecting such transfers; (v) responding to shareholder inquiries and
correspondence regarding shareholder account status; (vi) reporting abandoned
property to the various states; and (vii) recording and monitoring daily the
issuance in each state of shares of the Fund of the Trust.
The Transfer Agent receives an annual service fee for each account of the Fund,
based on the type of account. For open retail accounts, the fee is a flat fee
ranging from $20.00 to $27.50 per account, for open wholesale money funds the
fee is $32.50 per account, while for certain retirement accounts serviced on the
recordkeeping system of ADP, Inc., the fee is a flat fee up to $3.60 per account
(as of 2007, indexed to inflation) plus an asset based fee of up to 0.25% of
average net assets. 1/12th of the annual service charge for each account is
charged and payable to the Transfer Agent each month. A fee is charged for any
account which at any time during the month had a share balance in the Fund.
Smaller fees are also charged for closed accounts for which information must be
retained on the Transfer Agent's system for up to 18 months after closing for
tax reporting purposes.
Certain out-of-pocket expenses incurred by the Transfer Agent, including
expenses of printing and mailing routine fund disclosure documents, costs of
record retention and transaction processing costs are reimbursed by the Fund or
are paid directly by the Fund. Certain additional out-of-pocket expenses,
including costs of computer hardware and software, third party record-keeping
and processing of proxy statements, may only be reimbursed by the Fund with the
prior approval of the Fund's Board.
Pursuant to a sub-transfer agency agreement between DWS-SISC and DST Systems,
Inc. ("DST"), DWS-SISC has delegated certain transfer agent, dividend paying
agent and shareholder servicing agent functions to DST. The costs and expenses
of such delegation are borne by DWS-SISC, not by the Fund.
For the fiscal year ended May 31, 2005, the following amounts were charged to
the classes of the Fund by DWS Scudder Corporation ("DWS-SSC") (the Fund's
former transfer agent through March 31, 2007):
Prime Reserve Class S $69,044
Premium Class S $196,414
Managed Shares $57,026
Institutional Shares $44,032
|
For the fiscal year ended May 31, 2006, the following amounts were charged to
the classes of the Fund by DWS-SSC:
Prime Reserve Class S $65,338
Premium Class S $182,806
Managed Shares $54,508
Institutional Shares $59,075
|
For the fiscal year ended May 31, 2007, the following amounts were charged to
the classes of the Fund by DWS-SISC and DWS-SSC (prior to April 1, 2007):
Prime Reserve Class S $137,289
Premium Class S $257,015
Managed Shares $26,509
Institutional Shares $423,368
|
For the period from June 1, 2007 through December 31, 2007, the following
amounts were charged to the classes of the Fund by DWS-SISC:
Unpaid at
December 31,
Fund Class Total Amount Waived 2007
---- ----- ----- ------------- ----
DWS Money Market Series Prime Reserve $76,387 $3,003 $19,688
Class S
DWS Money Market Series Premium Class S $150,890 $18,745 $24,495
DWS Money Market Series Managed Shares $9,404 $9,404 --
DWS Money Market Series Institutional $666,267 $594,794 --
Shares
|
Legal Counsel
Ropes and Gray LLP, One International Place, Boston, MA 02110 serves as legal
counsel for the Fund and the Independent Trustees of the Fund.
Independent Registered Public Accounting Firm
The financial highlights of the Fund included in the prospectuses and the
Financial Statements incorporated by reference in this Statement of Additional
Information have been so included or incorporated by reference in reliance on
the report of PricewaterhouseCoopers LLP, Independent Registered Public
Accounting Firm, 125 High Street, Boston, MA 02110-2624, independent
accountants, given on the authority of said firm as experts in auditing and
accounting. PricewaterhouseCoopers LLP audits the financial statements of the
Fund and provides other audit, tax and related services. Shareholders will
receive annual audited financial statements and semi-annual unaudited financial
statements.
PORTFOLIO TRANSACTIONS
The Advisor is generally responsible for placing the orders for the purchase and
sale of portfolio securities, including the allocation of brokerage. With
respect to those funds for which a sub-investment advisor manages the fund's
investments, references in this section to the "Advisor" should be read to mean
the Sub-Advisor, except as noted below.
The policy of the Advisor in placing orders for the purchase and sale of
securities for the Portfolio is to seek best execution, taking into account such
factors, among others, as price; commission (where applicable); the
broker-dealer's ability to ensure that securities will be delivered on
settlement date; the willingness of the broker-dealer to commit its capital and
purchase a thinly traded security for its own inventory; whether the
broker-dealer specializes in block orders or large program trades; the
broker-dealer's knowledge of the market and the security; the broker-dealer's
ability to maintain confidentiality; the broker-dealer's ability to provide
access to new issues; the broker-dealer's ability to provide support when
placing a difficult trade; the financial condition of the broker-dealer; and
whether the broker-dealer has the infrastructure and operational capabilities to
execute and settle the trade. The Advisor seeks to evaluate the overall
reasonableness of brokerage commissions with commissions charged on comparable
transactions and compares the brokerage commissions (if any) paid by the
Portfolio to reported commissions paid by others. The Advisor routinely reviews
commission rates, execution and settlement services performed and makes internal
and external comparisons.
Commission rates on transactions in equity securities on US securities exchanges
are subject to negotiation. Commission rates on transactions in equity
securities on foreign securities exchanges are generally fixed. Purchases and
sales of fixed-income securities and certain over-the-counter securities are
effected on a net basis, without the payment of brokerage commissions.
Transactions in fixed income and certain over-the-counter securities are
generally placed by the Advisor with the principal market makers for these
securities unless the Advisor reasonably believes more favorable results are
available elsewhere. Transactions with dealers serving as market makers reflect
the spread between the bid and asked prices. Purchases of underwritten issues
will include an underwriting fee paid to the underwriter. Money market
instruments are normally purchased in principal transactions directly from the
issuer or from an underwriter or market maker.
It is likely that the broker-dealers selected based on the considerations
described in this section will include firms that also sell shares of the
Portfolio to their customers. However, the Advisor does not consider sales of
shares of the Portfolio as a factor in the selection of broker-dealers to
execute portfolio transactions for the Portfolio and, accordingly, has
implemented policies and procedures reasonably designed to prevent its traders
from considering sales of shares of the Portfolio as a factor in the selection
of broker-dealers to execute portfolio transactions for the Portfolio.
The Advisor is permitted by Section 28(e) of the Securities Exchange Act of
1934, as amended ("1934 Act"), when placing portfolio transactions for a
Portfolio, to cause the Portfolio to pay brokerage commissions in excess of that
which another broker-dealer might charge for executing the same transaction in
order to obtain research and brokerage services if the Advisor determines that
such commissions are reasonable in relation to the overall services provided.
The Advisor may from time to time, in reliance on Section 28(e) of the 1934 Act,
execute portfolio transactions with broker-dealers that provide research and
brokerage services to the Advisor. Consistent with the Advisor's policy
regarding best execution, where more than one broker is believed to be capable
of providing best execution for a particular trade, the Advisor may take into
consideration the receipt of research and brokerage services in selecting the
broker-dealer to execute the trade. Although certain research and brokerage
services from broker-dealers may be useful to a Portfolio and to the Advisor, it
is the opinion of the Advisor that such information only supplements its own
research effort since the information must still be analyzed, weighed and
reviewed by the Advisor's staff. To the extent that research and brokerage
services of value are received by the Advisor, the Advisor may avoid expenses
that it might otherwise incur. Research and brokerage services received from a
broker-dealer may be useful to the Advisor and its affiliates in providing
investment management services to all or some of its clients, which includes a
Portfolio. Services received from broker-dealers that executed securities
transactions for a Portfolio will not necessarily be used by the Advisor
specifically to service such Portfolio.
Research and brokerage services provided by broker-dealers may include, but are
not limited to, information on the economy, industries, groups of securities,
individual companies, statistical information, accounting and tax law
interpretations, political developments, legal developments affecting portfolio
securities, technical market action, pricing and appraisal services, credit
analysis, risk measurement analysis, performance analysis and measurement and
analysis of corporate responsibility issues. Research and brokerage services are
typically received in the form of written or electronic reports, access to
specialized financial publications, telephone contacts and personal meetings
with security analysts, but may also be provided in the form of access to
various computer software and meetings arranged with corporate and industry
representatives.
The Advisor may also select broker-dealers and obtain from them research and
brokerage services that are used in connection with executing trades provided
that such services are consistent with interpretations under Section 28(e) of
the 1934 Act. Typically, these services take the form of computer software
and/or electronic communication services used by the Advisor to facilitate
trading activity with those broker-dealers.
Research and brokerage services may include products obtained from third parties
if the Advisor determines that such product or service constitutes brokerage and
research as defined in Section 28(e) and interpretations thereunder. Currently,
it is the Advisor's policy that Sub-Advisors may not execute portfolio
transactions on behalf of the Portfolio to obtain third party research and
brokerage services. The Advisor may, in the future, change this policy.
Regardless, certain Sub-Advisors may, as matter of internal policy, limit or
preclude third party research and brokerage services.
The Advisor may use brokerage commissions to obtain certain brokerage products
or services that have a mixed use (i.e., it also serves a function that does not
relate to the investment decision-making process). In those circumstances, the
Advisor will make a good faith judgment to evaluate the various benefits and
uses to which it intends to put the mixed use product or service and will pay
for that portion of the mixed use product or service that it reasonably believes
does not constitute research and brokerage services with its own resources.
DIMA will monitor regulatory developments and market practice in the use of
client commissions to obtain research and brokerage services and may adjust its
portfolio transactions policies in response thereto.
Investment decisions for each Portfolio and for other investment accounts
managed by the Advisor are made independently of each other in light of
differing conditions. However, the same investment decision may be made for two
or more of such accounts. In such cases, simultaneous transactions are
inevitable. To the extent permitted by law, the Advisor may aggregate the
securities to be sold or purchased for a Portfolio with those to be sold or
purchased for other accounts in executing transactions. Purchases or sales are
then averaged as to price and commission and allocated as to amount in a manner
deemed equitable to each account. While in some cases this practice could have a
detrimental effect on the price paid or received by, or on the size of the
position obtained or disposed of for, the Portfolio, in other cases it is
believed that the ability to engage in volume transactions will be beneficial to
the Portfolio.
DIMA and its affiliates and the Portfolio's management team manage other mutual
funds and separate accounts, some of which use short sales of securities as a
part of its investment strategy. The simultaneous management of long and short
portfolios creates potential conflicts of interest including the risk that short
sale activity could adversely affect the market value of the long positions (and
vice versa), the risk arising from sequential orders in long and short
positions, and the risks associated with receiving opposing orders at the same
time.
DIMA has adopted procedures that it believes are reasonably designed to mitigate
these potential conflicts of interest. Incorporated in the procedures are
specific guidelines developed to ensure fair and equitable treatment for all
clients. DIMA and the investment team have established monitoring procedures and
a protocol for supervisory reviews, as well as compliance oversight to ensure
that potential conflicts of interest relating to this type of activity are
properly addressed.
Deutsche Bank AG or one of its affiliates (or in the case of a Sub-Advisor, the
Sub-Advisor or one of its affiliates) may act as a broker for the Portfolio and
receive brokerage commissions or other transaction-related compensation from the
Portfolio in the purchase and sale of securities, options or futures contracts
when, in the judgment of the Advisor, and in accordance with procedures approved
by the Portfolio's Board, the affiliated broker will be able to obtain a price
and execution at least as favorable as those obtained from other qualified
brokers and if, in the transaction, the affiliated broker charges the Portfolio
a rate consistent with that charged to comparable unaffiliated customers in
similar transactions.
Money market instruments are normally purchased in principal transactions
directly from the issuer or from an underwriter or market maker. There usually
are no brokerage commissions paid by the Portfolio for such purchases. During
the last three fiscal years the Portfolio paid no portfolio brokerage
commissions. Purchases from underwriters will include a commission or concession
paid by the issuer to the underwriter, and purchases from dealers serving as
market makers will include the spread between the bid and asked prices.
During the last three fiscal years, neither the Portfolio nor the Fund paid any
brokerage commissions.
Portfolio Turnover
The Portfolio may attempt to increase yields by trading to take advantage of
short-term market variations, which results in higher portfolio turnover. This
policy does not result in higher brokerage commissions to the Portfolio as the
purchases and sales of portfolio securities are usually effected as principal
transactions. The Portfolio's turnover rates are not expected to have a material
effect on its income and have been and are expected to be zero for regulatory
reporting purposes.
PURCHASE AND REDEMPTION OF SHARES
General Information
Policies and procedures affecting transactions in Fund shares can be changed at
any time without notice, subject to applicable law. Transactions may be
contingent upon proper completion of application forms and other documents by
shareholders and their receipt by the Fund's agents. Transaction delays in
processing (and changing account features) due to circumstances within or beyond
the control of the Fund and its agents may occur. Shareholders (or their
financial service firms) are responsible for all losses and fees resulting from
bad checks, cancelled orders or the failure to consummate transactions effected
pursuant to instructions reasonably believed to be genuine.
A distribution will be reinvested in shares of the same Fund and class if the
distribution check is returned as undeliverable.
Minimum Balances for Managed Shares
The initial minimum investment requirement in the Managed Shares of the Fund is
$100,000. Shareholders should maintain a share balance worth at least $100,000
(which minimum amount may be changed by the Board of Trustees).
Shareholders whose account balance falls below $100,000 for at least 30 days
will be given 60 days' notice to bring the account back up to $100,000 or more.
Where a reduction in value has occurred due to a redemption or exchange out of
the account and the account balance is not increased in 60 days, the Advisor
reserves the right to redeem all shares and close the account and send the
proceeds to the shareholder's address of record. Reductions in value that result
solely from market activity will not trigger an involuntary redemption.
Minimum Balances for Prime Reserve Class S Shares
Initial minimum investment in these shares is $10,000. Shareholders should
maintain a share balance worth at least $7,500. Account balances will be
reviewed periodically and the Advisor reserves the right, following 60 days'
written notice to shareholders, to redeem all shares in accounts that have a
value below $7,500 where such a reduction in value has occurred due to a
redemption, exchange, or transfer out of the account.
Minimum Balances for Premium Class S Shares
Initial minimum investment in these shares is $25,000. Shareholders should
maintain a share balance worth at least $20,000. Account balances will be
reviewed periodically and the Advisor reserves the right, following 60 days'
written notice to shareholders, to redeem all shares in accounts that have a
value below $20,000 where such a reduction in value has occurred due to a
redemption, exchange, or transfer out of the account.
Minimum Balance for Institutional Shares of DWS Money Market Series
The initial minimum investment requirement in the Institutional Shares of the
Fund is $1,000,000. Shareholders should maintain a share balance worth at least
$1,000,000 (which minimum amount may be changed by the Board of Trustees).
Shareholders whose account balance falls below $1,000,000 for at least 30 days
may be given 60 days' notice to bring the account back up to $1,000,000 or more.
Where a reduction in value has occurred due to a redemption out of the account
and the account balance is not increased in 60 days, the Advisor reserves the
right to redeem all shares and close the account and send the proceeds to the
shareholder's address of record. Reductions in value that result solely from
market activity will not trigger an involuntary redemption.
Share Certificates
Due to the desire of the Fund's management to afford ease of redemption,
certificates will not be issued to indicate ownership in the Fund. Share
certificates now in a shareholder's possession may be sent to the Fund's
Transfer Agent for cancellation and credit to such shareholder's account.
Shareholders who prefer may hold the certificates in their possession until they
wish to exchange or redeem such shares.
Use of Financial Services Firms. Investment dealers and other firms provide
varying arrangements for their clients to purchase and redeem the Fund's shares,
including different minimum investments, and may assess transaction or other
fees. Firms may arrange with their clients for other investment or
administrative services. Such firms may independently establish and charge
additional amounts to their clients for such services. Firms also may hold the
Fund's shares in nominee or street name as agent for and on behalf of their
customers. In such instances, the Fund's transfer agent will have no information
with respect to or control over the accounts of specific shareholders. Such
shareholders may obtain access to their accounts and information about their
accounts only from their firm. Certain of these firms may receive compensation
from the Fund through the shareholder service agent for record-keeping and other
expenses relating to these nominee accounts. In addition, certain privileges
with respect to the purchase and redemption of shares or the reinvestment of
dividends may not be available through such firms. Some firms may participate in
a program allowing them access to their clients' accounts for servicing
including, without limitation, transfers of registration and dividend payee
changes; and may perform functions such as generation of confirmation statements
and disbursement of cash dividends. Such firms, including affiliates of DWS-SDI,
may receive compensation from the Fund through the Shareholder Service Agent for
these services.
The Fund has authorized one or more financial service institutions, including
certain members of the FINRA other than the Distributor ("financial
institutions"), to accept purchase and redemption orders for the Fund's shares.
Such financial institutions may also designate other parties, including plan
administrator intermediaries, to accept purchase and redemption orders on the
Fund's behalf. Orders for purchases or redemptions will be deemed to have been
received by the Fund when such financial institutions or, if applicable, their
authorized designees accept the orders. Subject to the terms of the contract
between the Fund and the financial institution, ordinarily orders will be priced
at the Fund's net asset value next computed after acceptance by such financial
institution or its authorized designees and accepted by the Fund. Further, if
purchases or redemptions of the Fund's shares are arranged and settlement is
made at an investor's election through any other authorized financial
institution, that financial institution may, at its discretion, charge a fee for
that service. The Board of Trustees and the Distributor, also the Fund's
principal underwriter, each has the right to limit the amount of purchases by,
and to refuse to sell to, any person. The Trustees and the Distributor may
suspend or terminate the offering of shares of the Fund at any time for any
reason.
DWS-SDI has adopted an Incentive Plan (the "Plan") covering wholesalers that are
regional vice presidents ("DWS Scudder Wholesalers"). Generally, DWS Scudder
Wholesalers market shares of the DWS funds to financial advisors, who in turn
may recommend that investors purchase shares of a DWS fund. The Plan is an
incentive program that combines a monthly incentive component with a quarterly
strategic bonus component. Under the Plan, DWS Scudder Wholesalers will receive
a monetary monthly incentive based on the amount of sales generated from their
marketing of the funds, and that incentive will differ depending on the product
category of the fund. Each fund is assigned to one of three product categories
-- "Strategic," "Tactical" or "all other funds" -- taking into consideration,
among other things, the following criteria, where applicable:
o The Fund's consistency with DWS Scudder's branding and long-term
strategy.
o The Fund's competitive performance;
o The Fund's Morningstar rating;
o The length of time the Fund's Portfolio Managers have managed the
Fund/Strategy
o Market size for the fund category;
o The Fund's size, including sales and redemptions of the Fund's shares
This information and other factors are presented to a committee comprised of
representatives from various groups within DWS Scudder, who review on a
quarterly basis the funds assigned to each product category described above, and
make any changes to those assignments at that time. No one factor, whether
positive or negative, determines a fund's placement in a given category; all
these factors together are considered, and the designation of funds in the
Strategic and Tactical categories represents management's judgment based on the
above criteria. In addition, management may consider a fund's profile over the
course of several review periods before making a change to its category
assignment. These category assignments will be posted quarterly to the DWS
funds' Web site at www.dws-scudder.com, approximately one month after the end of
each quarter. DWS Scudder Wholesalers receive the highest compensation for
Strategic funds, less for Tactical funds and the lowest for all other funds. The
level of compensation among these categories may differ significantly.
The prospect of receiving, or the receipt of, additional compensation by a DWS
Scudder Wholesaler under the Plan may provide an incentive to favor marketing
the Strategic or Tactical funds over all other funds. The Plan, however, will
not change the price that investors pay for shares of a fund. The DWS Scudder
Compliance Department monitors DWS Scudder Wholesaler sales and other activity
in an effort to detect unusual activity in the context of the compensation
structure under the Plan. However, investors may wish to take the Plan and the
product category of the fund into account when considering purchasing a fund or
evaluating any recommendations relating to fund shares.
Telephone and Electronic Transaction Procedures. Shareholders have various
telephone, Internet, wire and other electronic privileges available. The Fund or
its agents will not be liable for any losses, expenses or costs arising out of
fraudulent or unauthorized instructions pursuant to these privileges if the Fund
or its agents reasonably believe, based upon reasonable verification procedures,
that the instructions were genuine. Verification procedures include recording
instructions, requiring certain identifying information before acting upon
instructions and sending written confirmations. During periods when it is
difficult to contact the Shareholder Service Agent, it may be difficult to use
telephone, wire and other privileges.
Dividend Payment Option. Investors may have dividends and distributions
automatically deposited to their predesignated bank account through DWS
Scudder's Dividend Payment Option request form. Shareholders whose predesignated
checking account of record is with a member bank of Automated Clearing House
Network (ACH) can have income and capital gain distributions automatically
deposited to their personal bank account usually within three business days
after the Fund pays its distribution. A Dividend Payment Option request form can
be obtained by visiting our Web site at: www.dws-scudder.com or calling (800)
728-3337 for Premium Class S shares and Prime Reserve Class S shares and (800)
730-1313 for Managed Shares. Confirmation Statements will be mailed to
shareholders as notification that distributions have been deposited.
Tax-Sheltered Retirement Plans. The Shareholder Service Agent provides
retirement plan services and documents and the Distributor can establish
investor accounts in any of the following types of retirement plans: Brochures
describing these plans as well as model defined benefit plans, target benefit
plans, 457 plans, 401(k) plans, simple 401(k) plans and materials for
establishing them are available from the Shareholder Service Agent upon request.
Additional fees and transaction policies and procedures may apply to such plans.
Investors should consult with their own tax advisors before establishing a
retirement plan.
o Traditional, Roth and Education IRAs. This includes Savings Incentive
Match Plan for Employees of Small Employers ("SIMPLE"), Simplified
Employee Pension Plan ("SEP") IRA accounts and prototype documents.
o 403(b)(7) Custodial Accounts. This type of plan is available to
employees of most non-profit organizations.
o Prototype money purchase pension and profit-sharing plans may be
adopted by employers.
Purchases
The Fund reserves the right to withdraw all or any part of the offering made by
its prospectus and to reject purchase orders for any reason. Also, from time to
time, the Fund may temporarily suspend the offering of any class of its shares
to new investors. During the period of such suspension, persons who are already
shareholders of such class of such Fund may be permitted to continue to purchase
additional shares of such class and to have dividends reinvested.
To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account. For
more information, please see "Policies You Should Know About" in the Fund's
prospectuses.
Only certain investors are eligible to buy Prime Reserve Class S and Premium
Class S shares, as described in greater detail below.
A. The following investors may purchase Class S shares of DWS Funds either
(i) directly from DWS-SDI, the Fund's principal underwriter; or (ii)
through an intermediary relationship with a financial services firm
established with respect to the DWS Funds as of December 31, 2004.
1. Existing shareholders of Class S shares of any DWS Fund as of
December 31, 2004, and household members residing at the same
address.
2. Shareholders of Class S of any DWS Fund who became Class S
shareholders in connection with the consolidation of Class
AARP and Class S on July 17, 2006 and household members
residing at the same address.
3. Shareholders who have owned Class S shares continuously since
December 31, 2004 and household members residing at the same
address may open new accounts for Class S shares of any DWS
Fund.
4. Any participant who has owned Class S shares of any DWS Fund
through an employee sponsored retirement, employee stock,
bonus, pension or profit sharing plan continuously since
December 31, 2004 may open a new individual account for Class
S shares of any DWS Fund.
5. Any participant who owns Class S shares of any DWS Fund
through a retirement, employee stock, bonus, pension or profit
sharing plan may complete a direct rollover to an IRA account
that will hold Class S shares. This applies to individuals who
begin their retirement plan investments with a DWS Fund at any
time, including after December 31, 2004.
6. Officers, Fund Trustees and Directors, and full-time employees
and their family members, of the Advisor and its affiliates.
7. Class S shares are available to any accounts managed by the
Advisor, any advisory products offered by the Advisor or
DWS-SDI and to DWS Allocation Series or other fund of funds
managed by the Advisor or its affiliates.
8. Shareholders of Class S of DWS Emerging Markets Equity Fund
who became shareholders of the fund in connection with the
fund's acquisition of Scudder New Asia Fund, Inc. on April 17,
2006.
9. Shareholders of Class S of any DWS Fund who became Class S
shareholders in connection with the consolidation of Class M
and Class S on August 18, 2006 and household members residing
at the same address.
10. Shareholders of Class S of any DWS Fund who became Class S
shareholders in connection with the renaming or conversion of
Investment Class to Class S on October 23, 2006.
B. The following additional investors may purchase Class S shares of
DWS Funds.
1. Broker-dealers, banks and registered investment advisors
("RIAs") may purchase Class S shares in connection with a
comprehensive or "wrap" fee program or other fee based program.
2. Any group retirement, employee stock, bonus, pension or
profit-sharing plans.
3. Persons who purchase shares as part of an investment only
placement in a 529 College Savings Plan.
4. Persons who purchase shares through a Health Savings Account or
a Voluntary Employees' Benefit Association ("VEBA") Trust.
DWS-SDI may, at its discretion, require appropriate documentation that shows an
investor is eligible to purchase Prime Reserve Class S and Premium Class S
shares.
It is our policy to offer purchase privileges to current or former directors or
trustees of the Deutsche or DWS mutual funds, employees, their spouses or life
partners and children or stepchildren age 21 or younger of Deutsche Bank or its
affiliates or a sub-adviser to any fund in the DWS family of funds or a
broker-dealer authorized to sell shares of the funds. Qualified individuals will
generally be allowed to purchase shares in the class with the lowest expense
ratio, usually the Institutional Class. If the Fund does not offer Institutional
Class shares, these individuals will be allowed to buy Class A shares at NAV.
The Fund also reserves the right to waive the minimum account balance
requirement for employees and director accounts. Fees generally charged to IRA
accounts will be charged to accounts of employees and directors.
Revenue Sharing
In light of recent regulatory developments, the Advisor, the Distributor and
their affiliates have undertaken to furnish certain additional information below
regarding the level of payments made by them to selected affiliated and
unaffiliated brokers, dealers, participating insurance companies or other
financial intermediaries ("financial advisors") in connection with the sale
and/or distribution of Fund shares or the retention and/or servicing of
investors and Fund shares ("revenue sharing").
The Advisor, the Distributor and/or their affiliates may pay additional
compensation, out of their own assets and not as an additional charge to each
Fund, to financial advisors in connection with the sale and/or distribution of
Fund shares or the retention and/or servicing of Fund investors and Fund shares.
Such revenue sharing payments are in addition to any distribution or service
fees payable under any Rule 12b-1 or service plan of any fund, any record
keeping/sub-transfer agency/networking fees payable by each Fund (generally
through the Distributor or an affiliate) and/or the Distributor to certain
financial advisors for performing such services and any sales charges,
commissions, non-cash compensation arrangements expressly permitted under
applicable rules of FINRA or other concessions described in the fee table or
elsewhere in the Prospectuses or the SAI as payable to all financial advisors.
For example, the Advisor, the Distributor and/or their affiliates may compensate
financial advisors for providing each Fund with "shelf space" or access to a
third party platform or fund offering list, or other marketing programs
including, without limitation, inclusion of each Fund on preferred or
recommended sales lists, mutual fund "supermarket" platforms and other formal
sales programs; granting the Distributor access to the financial advisor's sales
force; granting the Distributor access to the financial advisor's conferences
and meetings; assistance in training and educating the financial advisor's
personnel; and, obtaining other forms of marketing support. The level of revenue
sharing payments made to financial advisors may be a fixed fee or based upon one
or more of the following factors: gross sales, current assets and/or number of
accounts of each Fund attributable to the financial advisor, the particular fund
or fund type or other measures as agreed to by the Advisor, the Distributor
and/or their affiliates and the financial advisors or any combination thereof.
The amount of these payments is determined at the discretion of the Advisor, the
Distributor and/or their affiliates from time to time, may be substantial, and
may be different for different financial advisors based on, for example, the
nature of the services provided by the financial advisor.
The Advisor, the Distributor and/or their affiliates currently make revenue
sharing payments from their own assets in connection with the sale and/or
distribution of DWS Fund shares, or the retention and/or servicing of investors,
to financial advisors in amounts that generally range from .01% up to .50% of
assets of the Fund serviced and maintained by the financial advisor, .10% to
.25% of sales of the Fund attributable to the financial advisor, a flat fee of
$13,350 up to $500,000, or any combination thereof. These amounts are annual
figures typically paid on a quarterly basis and are subject to change at the
discretion of the Advisor, the Distributor and/or their affiliates. Receipt of,
or the prospect of receiving, this additional compensation, may influence your
financial advisor's recommendation of this Fund or of any particular share class
of the Fund. You should review your financial advisor's compensation disclosure
and/or talk to your financial advisor to obtain more information on how this
compensation may have influenced your financial advisor's recommendation of this
Fund.
The Advisor, the Distributor and/or their affiliates may also make such revenue
sharing payments to financial advisors under the terms discussed above in
connection with the distribution of both DWS funds and non-DWS funds by
financial advisors to retirement plans that obtain record keeping services from
ADP, Inc. on the DWS Scudder branded retirement plan platform (the "Platform")
with the level of revenue sharing payments being based upon sales of both the
DWS funds and the non-DWS funds by the financial advisor on the Platform or
current assets of both the DWS funds and the non-DWS funds serviced and
maintained by the financial advisor on the Platform.
As of the date hereof, each Fund has been advised that the Advisor, the
Distributor and their affiliates expect that the following firms will receive
revenue sharing payments at different points during the coming year as described
above:
Channel: Broker-Dealers and Financial Advisors
AIG Advisors Group
Ameriprise
Cadaret, Grant & Co. Inc.
Capital Analyst, Incorporated
Citigroup Global Markets, Inc. (dba Smith Barney)
Commonwealth Equity Services, LLP (dba Commonwealth Financial Network)
Deutsche Bank group
First Clearing/Wachovia Securities
Fiserv Trust Company
HD Vest Investment Securities, Inc.
ING Group
John Hancock Distributors LLC
LPL Financial
M.L. Stern & Co.
Marsh Insurance and Investment Company
Meridien Financial Group
Merrill Lynch, Pierce, Fenner & Smith Inc.
Morgan Stanley
Oppenheimer & Co., Inc.
Raymond James & Associates
Raymond James Financial Services
RBC Dain Rauscher, Inc
Securities America, Inc.
UBS Financial Services
Wachovia Securities
Wells Fargo Investments, LLC
Channel: Cash Product Platform
Allegheny Investments LTD
Bank of New York (Hare & Co.)
Bear, Stearns Securities Corp.
Brown Brothers Harriman
Brown Investment Advisory & Trust Company
Cadaret Grant & Co.
Chicago Mercantile Exchange
D.A. Davidson & Company
Deutsche Bank Group
Emmett A. Larkin Company
Fiduciary Trust Co. - International
First Southwest Company
Huntleigh Securities
Lincoln Investment Planning
LPL Financial
Mellon Financial Markets LLC
Penson Financial Services
Pershing Choice Platform
ProFunds Distributors, Inc.
Ridge Clearing & Outsourcing Solutions
Romano Brothers and Company
SAMCO Capital Markets
Smith Moore & Company
Sungard Institutional Brokerage Inc.
US Bancorp
UBS
William Blair & Company
Channel: Third Party Insurance Platforms
Allstate Life Insurance Company of New York
Ameritas Life Insurance Group
Annuity Investors Life Insurance Company
Columbus Life Insurance Company
Commonwealth Annuity and Life Insurance Company
Companion Life Insurance Company
Connecticut General Life Insurance Company
Farmers New World Life Insurance Company
Fidelity Security Life Insurance Company
First Allmerica Financial Life Insurance Company
First Great West Life and Annuity Company
Genworth Life Insurance Company of New York
Genworth Life and Annuity Insurance Company
Great West Life and Annuity Insurance Company
Hartford Life Insurance Company
Integrity Life Insurance Company
John Hancock Life Insurance companies
Kemper Investors Life Insurance Company
Lincoln Benefit Life Insurance Company
Lincoln Life & Annuity Company of New York
Lincoln National Life Insurance Company
Massachusetts Mutual Life Insurance Group
MetLife Group
Minnesota Life Insurance
Company National Life Insurance Company
National Integrity Life Insurance Company
Nationwide Group
New York Life Insurance and Annuity Corporation
Phoenix Life Insurance Company
Protective Life Insurance
Provident Mutual Life Insurance
Prudential Insurance Company of America
Sun Life Group
Symetra Life Insurance Company
Transamerica Life Insurance Company
Union Central Life Insurance Company
United of Omaha Life Insurance Company
United Investors Life Insurance Company
Western Southern Life Assurance Company
Any additions, modifications or deletions to the financial advisors identified
above that have occurred since the date hereof are not reflected.
The Advisor, the Distributor or their affiliates may enter into additional
revenue sharing arrangements or change or discontinue existing arrangements with
financial advisors at any time without notice.
The prospect of receiving, or the receipt of additional compensation or
promotional incentives described above by financial advisors may provide such
financial advisors and/or their salespersons with an incentive to favor sales of
shares of the DWS funds or a particular DWS fund over sales of shares of mutual
funds (or non-mutual fund investments) with respect to which the financial
advisor does not receive additional compensation or promotional incentives, or
receives lower levels of additional compensation or promotional incentives.
Similarly, financial advisors may receive different compensation or incentives
that may influence their recommendation of any particular share class of the
Fund or of other funds. These payment arrangements, however, will not change the
price that an investor pays for Fund shares or the amount that the Fund receives
to invest on behalf of an investor and will not increase Fund expenses. You may
wish to take such payment arrangements into account when considering and
evaluating any recommendations relating to Fund shares and you should discuss
this matter with your financial advisor and review your financial advisor's
disclosures.
It is likely that broker-dealers that execute portfolio transactions for the
Fund will include firms that also sell shares of the DWS funds to their
customers. However, the Advisor will not consider sales of DWS fund shares as a
factor in the selection of broker-dealers to execute portfolio transactions for
the DWS funds. Accordingly, the Advisor has implemented policies and procedures
reasonably designed to prevent its traders from considering sales of DWS fund
shares as a factor in the selection of broker-dealers to execute portfolio
transactions for the Fund. In addition, the Advisor, the Distributor and/or
their affiliates will not use fund brokerage to pay for their obligation to
provide additional compensation to financial advisors as described above.
Automatic Investment Plan. A shareholder may purchase shares of the Fund through
an automatic investment program. With the Direct Deposit Purchase Plan ("Direct
Deposit"), investments are made automatically (minimum $10,000 for Prime Reserve
Class S shares and $25,000 for Premium Class S shares and maximum $250,000 for
initial investments and a minimum of $50 and maximum $250,000 subsequent
investments) from the shareholder's account at a bank, savings and loan or
credit union into the shareholder's Fund account. Termination by a shareholder
will become effective within thirty days after the DWS-SISC has received the
request. The Fund may immediately terminate a shareholder's Direct Deposit in
the event that any item is unpaid by the shareholder's financial institution.
Payroll Investment Plans. A shareholder may purchase shares through Payroll
Direct Deposit or Government Direct Deposit. Under these programs, all or a
portion of a shareholder's net pay or government check is invested each payment
period. A shareholder may terminate participation in these programs by giving
written notice to the shareholder's employer or government agency, as
appropriate. (A reasonable time to act is required.) The Fund is not responsible
for the efficiency of the employer or government agency making the payment or
any financial institutions transmitting payments.
Expedited Purchase Procedures for Existing Shareholders. Shareholders of other
DWS funds who have submitted an account application and have certified a tax
identification number, clients having a regular investment counsel account with
the Advisor or its affiliates and members of their immediate families, officers
and employees of the Advisor or of any affiliated organization and their
immediate families, members of the FINRA, and banks may open an account by wire
by calling (800) 728-3337 for Prime Reserve Class S and Premium Class S shares
and (800) 730-1313 for Institutional Shares and Managed Shares for instructions.
The investor must send a duly completed and signed application to the Fund
promptly. A subsequent purchase order for $10,000 or more that is not greater
than four times an account value may be placed by telephone, etc. by established
shareholders (except by DWS Scudder Individual Retirement Account (IRA), DWS
Scudder Profit Sharing and DWS Money Purchase Pension Plans, DWS Scudder 401(k)
and DWS Scudder 403(b) Plan holders), members of the FINRA, and banks.
Purchasing Shares -- Prime Reserve Class S, Premium Class S Shares,
Managed Shares
The Fund has specific minimum initial investment requirements for each class of
shares as follows:
Class of Shares Minimum Initial Investment Subsequent Minimum Investment
--------------- -------------------------- -----------------------------
Prime Reserve Class S $10,000 $50
Premium Class S $25,000 $50
Managed Shares $100,000 $1,000 (regular accounts)
$100 (IRAs)
$50 or more (Automatic Investment
Plan)
|
The minimum investment requirements may be waived or lowered for investments
effected through banks and other institutions that have entered into special
arrangements with the Fund and for investments effected on a group basis by
certain other entities and their employees, such as pursuant to a payroll
deduction plan and for investments made in an Individual Retirement Account
offered by the Fund. Investment minimums may also be waived for Trustees and
officers of the Trust. The Fund, the Distributor and the Cash Products Group
each reserve the right to reject any purchase order. The Fund will be invested
in full and fractional shares. Reductions in value that result solely from
market activity will not trigger an annual fee or involuntary redemption.
Shareholders with a combined household account balance in any of the DWS Funds
of $100,000 or more, as well as group retirement and certain other accounts will
not be subject to a fee or automatic redemption.
Fiduciary (e.g., IRA or Roth IRA) and custodial accounts (e.g., UGMA or UTMA)
with balances below $100 are subject to automatic redemption following 60 days'
written notice to applicable shareholders.
The quarterly subminimum account policy applies to all accounts in a household.
However, the fee will not apply to accounts enrolled in an automatic investment
program, IRAs or employer-sponsored employee benefit plans using the subaccount
record-keeping system made available through DWS-SISC.
Purchasing Shares -- Institutional Shares
The Fund has specific minimum initial investment requirements for Institutional
Shares as follows:
Class of Shares Minimum Initial Investment Subsequent Minimum Investment
--------------- -------------------------- -----------------------------
Institutional Shares $1,000,000 None
|
The minimum investment requirements may be waived or lowered for investments
effected through banks and other institutions that have entered into special
arrangements with the Fund and for investments effected on a group basis by
certain other entities and their employees, such as pursuant to a payroll
deduction plan and for investments made in an Individual Retirement Account
offered by the Fund. Investment minimums may also be waived for Trustees and
officers of the Trust and for employees of Deutsche Bank. The Fund and the
Distributor each reserve the right to reject any purchase order. The Fund will
be invested in full and fractional shares.
Wire Transfer of Federal Funds
Orders for shares of the Fund will become effective when an investor's bank wire
order or check is converted into federal funds (monies credited to the account
of State Street Bank and Trust Company (the "Custodian") with its registered
Federal Reserve Bank). If payment is transmitted by the Federal Reserve Wire
System, the order will become effective upon receipt. Orders will be executed at
5:00 p.m. on the same day if a bank wire or check is converted to federal funds
or a federal funds' wire is received by 5:00 p.m. In addition, if investors
known to the Fund notify the Fund by 5:00 p.m. that they intend to wire federal
funds to purchase shares of the Fund on any business day and if monies are
received in time to be invested, orders will be executed at the net asset value
per share determined at 5:00 p.m. the same day. Wire transmissions may, however,
be subject to delays of several hours, in which event the effectiveness of the
order will be delayed. Payments by a bank wire other than the Federal Reserve
Wire System may take longer to be converted into federal funds. When payment for
shares is by check drawn on any member of the Federal Reserve System, federal
funds normally become available to the Fund on the business day after the check
is deposited.
Purchase orders received between 4:00 p.m. and 5:00 p.m. Eastern time, for
effectiveness at the 5:00 p.m. Eastern time net asset value determination, may
be rejected based on certain guidelines. In particular, only investors known to
the Fund may submit wire purchase orders between 4:00 p.m. and 5:00 p.m. Eastern
time and acceptance of such an order will, among other things, be based upon the
level of purchase orders received by the Fund, the size of the order submitted,
general market conditions, and the availability of investments for the Fund.
Shares of the Fund may be purchased by writing or calling the Transfer Agent.
Orders for shares of a particular class of the Fund will be executed at the net
asset value per share of such class next determined after an order has become
effective.
Checks drawn on a non-member bank may take substantially longer to be converted
into federal funds and, accordingly, may delay the execution of an order. Checks
must be payable in US dollars and will be accepted subject to collection at full
face value. By investing in the Fund, a shareholder appoints the Transfer Agent
to establish an open account to which all shares purchased will be credited,
together with any dividends and capital gains distributions that are paid in
additional shares.
Additional Information about Subsequent Investments by QuickBuy
Shareholders, whose predesignated bank account of record is a member of the
Automated Clearing House Network (ACH) and who have elected to participate in
the QuickBuy program may purchase shares of the Fund by telephone. Through this
service shareholders may purchase up to $250,000. To purchase shares by
QuickBuy, shareholders should call before the close of regular trading on The
New York Stock Exchange, Inc. ("NYSE"), normally 4:00 p.m. Eastern time.
Proceeds in the amount of your purchase will be transferred from your bank
checking account two or three business days following your call. For requests
received by the close of regular trading on the Exchange, shares will be
purchased at the net asset value per share calculated at the close of trading on
the day of your call. QuickBuy requests received after the close of regular
trading on the Exchange will begin their processing and be purchased at the net
asset value calculated the following business day. If you purchase shares by
QuickBuy and redeem them within seven days of the purchase, the Fund may hold
the redemption proceeds for a period of up to seven business days. If you
purchase shares and there are insufficient funds in your bank account the
purchase will be canceled and you will be subject to any losses or fees incurred
in the transaction. QuickBuy transactions are not available for most retirement
plan accounts. However, QuickBuy transactions are available for DWS Scudder IRA
accounts.
In order to request purchases by QuickBuy, shareholders must have completed and
returned to the Transfer Agent the application, including the designation of a
bank account from which the purchase payment will be debited. New investors
wishing to establish QuickBuy may so indicate on the application. Existing
shareholders who wish to add QuickBuy to their account may do so by completing a
QuickBuy Enrollment Form. After sending in an enrollment form, shareholders
should allow 15 days for this service to be available.
The Fund employs procedures, including recording telephone calls, testing a
caller's identity, and sending written confirmation of telephone transactions,
designed to give reasonable assurance that instructions communicated by
telephone are genuine, and to discourage fraud. To the extent that the Fund does
not follow such procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions. The Fund will not be liable for acting upon
instructions communicated by telephone that it reasonably believes to be
genuine.
Other Information
The "Tax Identification Number" section of the Application must be completed
when opening an account. Applications and purchase orders without a certified
tax identification number and certain other certified information (e.g., from
exempt organizations a certification of exempt status), will be returned to the
investor. The Fund reserves the right, following 30 days' notice, to redeem all
shares in accounts without a correct certified Social Security or tax
identification number. A shareholder may avoid involuntary redemption by
providing the Fund with a tax identification number during the 30-day notice
period.
The Trust may issue shares at net asset value in connection with any merger or
consolidation with, or acquisition of the assets of, any investment company or
personal holding company, subject to the requirements of the 1940 Act.
Exchanges and Redemptions
Payment of redemption proceeds may be made in securities upon consent of a
redeeming shareholder. The Trust may suspend or postpone redemptions with
respect to the Fund as permitted pursuant to Section 22(e) of the Investment
Company Act of 1940. Generally, those circumstances are when: 1) the New York
Stock Exchange is closed other than customary weekend or holiday closings; 2)
trading on the New York Stock Exchange is restricted; 3) an emergency exists
which makes the disposal of securities owned by a portfolio or the fair
determination of the value of a portfolio's net assets not reasonably
practicable; or 4) the SEC, by order, permits the suspension of the right of
redemption. Redemption payments by wire may also be delayed in the event of a
nonroutine closure of the Federal Reserve wire payment system.
A shareholder's Fund account remains open for up to one year following complete
redemption and all costs during the period will be borne by the Trust. This
permits an investor to resume investments.
Exchanges
Exchanges are comprised of a redemption from one DWS fund and a purchase into
another DWS fund. The exchange privilege is not applicable for Institutional
Shares. The purchase side of the exchange either may be an additional investment
into an existing account or may involve opening a new account in the other fund.
When an exchange involves a new account, the new account will be established
with the same registration, tax identification number, address, telephone
redemption option, "DWS Automated Information Line" transaction authorization
and dividend option as the existing account. Other features will not carry over
automatically to the new account.
Class of Shares Minimum Exchange Amount
--------------- -----------------------
Prime Reserve Class S $50
Premium Class S $50
Managed Shares $1,000
|
Exchanges into other DWS Funds may have lower minimum exchange requirements.
When an exchange represents an additional investment into an existing account,
the account receiving the exchange proceeds must have identical registration,
tax identification number, address, and account options/features as the account
of origin. If the account receiving the exchange proceeds is to be different in
any respect, the exchange request must be in writing and must contain an
original signature guarantee.
Exchange orders received before the close of regular trading on the Exchange on
any business day ordinarily will be executed at the respective net asset values
determined on that day. Exchange orders received after the close of regular
trading on the Exchange will be executed on the following business day.
Investors may also request, at no extra charge, to have exchanges automatically
executed on a predetermined schedule from one DWS fund to an existing account in
another DWS fund, at current net asset value, through DWS's Automatic Exchange
Program. These exchanges must be for a minimum of $50. Shareholders may add this
free feature over the telephone or in writing. Automatic exchanges will continue
until the shareholder requests by telephone or in writing to have the feature
removed, or until the originating account is depleted. The Trust and the
Transfer Agent each reserves the right to suspend or terminate the privilege of
the Automatic Exchange Program at any time.
There is no charge to the shareholder for any exchange described above. An
exchange into another DWS fund is a redemption of shares, and therefore may
result in tax consequences (gain or loss) to the shareholder and the proceeds of
such exchange may be subject to backup withholding. (See "TAXES.")
Investors currently receive the exchange privilege, including exchange by
telephone, automatically without having to elect it. The Fund employs
procedures, including recording telephone calls, testing a caller's identity,
and sending written confirmation of telephone transactions, designed to give
reasonable assurance that instructions communicated by telephone are genuine,
and to discourage fraud. To the extent that the Fund does not follow such
procedures, it may be liable for losses due to unauthorized or fraudulent
telephone instructions. The Fund will not be liable for acting upon instructions
communicated by telephone that it reasonably believes to be genuine. The Fund
and the Transfer Agent each reserves the right to suspend or terminate the
privilege of exchanging by telephone at any time.
Before making an exchange, shareholders should obtain from DWS-SDI a prospectus
of the DWS fund into which the exchange is being contemplated. The exchange
privilege may not be available for certain DWS funds or classes of DWS Funds.
For more information, please call (800) 728-3337 for Prime Reserve Class S or
Premium Class S and (800) 730-1313 for Managed Shares. DWS retirement plans may
have different exchange requirements. Please refer to appropriate plan
literature.
Redemption by Telephone
(a) In order to request redemptions by telephone, shareholders must have
completed and returned to the Transfer Agent the application, including the
designation of a bank account to which the redemption proceeds are to be
sent. Shareholders currently receive the right to redeem up to $100,000,
unlimited for Institutional Shares, to their address of record
automatically, without having to elect it. Shareholders may also request to
have the proceeds mailed or wired to their pre-designated bank account. NEW
INVESTORS wishing to establish the telephone redemption privilege must
complete the appropriate section on the application.
(b) EXISTING SHAREHOLDERS (except those who are DWS Scudder IRA, DWS Scudder
pension and profit-sharing, DWS Scudder 401(k) and DWS Scudder 403(b)
Planholders) who wish to establish telephone redemption to a pre-designated
bank account or who want to change the bank account previously designated
to receive redemption proceeds should either return a Telephone Redemption
Option Form (available upon request) or send a letter identifying the
account and specifying the exact information to be changed. The letter must
be signed exactly as the shareholder's name(s) appears on the account. An
original signature and an original signature guarantee are required for
each person in whose name the account is registered.
Telephone redemption is not available with respect to shares represented by
share certificates or shares held in certain retirement accounts.
If a request for redemption to a shareholder's bank account is made by
telephone, payment will be by Federal Reserve bank wire to the bank account
designated on the application, unless a request is made that the redemption
check be mailed to the designated bank account.
Note: Investors designating a savings bank to receive their telephone
redemption proceeds are advised that if the savings bank is not a
participant in the Federal Reserve System, redemption proceeds must be
wired through a commercial bank which is a correspondent of the
savings bank. As this may delay receipt by the shareholder's account,
it is suggested that investors wishing to use a savings bank discuss
wire procedures with their bank and submit any special wire transfer
information with the telephone redemption authorization. If
appropriate wire information is not supplied, redemption proceeds will
be mailed to the designated bank.
The Fund employs procedures, including recording telephone calls, testing a
caller's identity, and sending written confirmation of telephone transactions,
designed to give reasonable assurance that instructions communicated by
telephone are genuine, and to discourage fraud. To the extent that the Fund does
not follow such procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions. The Fund will not be liable for acting upon
instructions communicated by telephone that it reasonably believes to be
genuine.
Redemption requests by telephone (technically a repurchase by agreement between
the Fund and the shareholder) of shares purchased by check will not be accepted
until the purchase check has cleared which may take up to seven business days.
Redemption by QuickSell
Shareholders whose predesignated bank account of record is a member of the
Automated Clearing House Network (ACH) and who have elected to participate in
the QuickSell program may sell shares of the Fund by telephone. Redemptions must
be for at least $50 and a maximum of $250,000. Proceeds in the amount of your
redemption will be transferred to your bank checking account two or three
business days following your call. For requests received by the close of regular
trading on the Exchange, normally 4:00 p.m. Eastern time, shares will be
redeemed at the net asset value per share calculated at the close of trading on
the day of your call. QuickSell requests received after the close of regular
trading on the Exchange will begin their processing and be redeemed at the net
asset value calculated the following business day. QuickSell transactions are
not available for DWS Scudder IRA accounts and most other retirement plan
accounts.
In order to request redemptions by QuickSell, shareholders must have completed
and returned to the Transfer Agent the application, including the designation of
a bank account to which redemption proceeds will be credited. New investors
wishing to establish QuickSell may so indicate on the application. Existing
shareholders who wish to add QuickSell to their account may do so by completing
a QuickSell Enrollment Form. After sending in an enrollment form, shareholders
should allow 15 days for this service to be available.
The Fund employs procedures, including recording telephone calls, testing a
caller's identity, and sending written confirmation of telephone transactions,
designed to give reasonable assurance that instructions communicated by
telephone are genuine, and to discourage fraud. To the extent that the Fund does
not follow such procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions. The Fund will not be liable for acting upon
instructions communicated by telephone that it reasonably believes to be
genuine.
Redemption by Mail
Any existing share certificates representing shares being redeemed must
accompany a request for redemption and be duly endorsed or accompanied by a
proper stock assignment form with signatures guaranteed.
In order to ensure proper authorization before redeeming shares, the Transfer
Agent may request additional documents such as, but not restricted to, stock
powers, trust instruments, certificates of death, appointments as executor,
certificates of corporate authority and waivers of tax (required in some states
when settling estates).
It is suggested that shareholders holding share certificates or shares
registered in other than individual names contact the Transfer Agent prior to
any redemptions to ensure that all necessary documents accompany the request.
When shares are held in the name of a corporation, trust, fiduciary agent,
attorney or partnership, the Transfer Agent requires, in addition to the stock
power, certified evidence of authority to sign. These procedures are for the
protection of shareholders and should be followed to ensure prompt payment.
Redemption requests must not be conditional as to date or price of the
redemption. Proceeds of a redemption will be sent within one business day of
when your order is processed.
The requirements for IRA redemptions are different from those for regular
accounts. For more information call (800) 728-3337 for Prime Reserve Class S and
Premium Class S and (800) 730-1313 for Managed Shares.
Redemption by Checkwriting
All new investors and existing shareholders who apply to UMB Bank for checks may
use them to pay any person, provided that each check is for at least $1,000 and
not more than $5 million. By using the checks, the shareholder will receive
daily dividend credit on his or her shares until the check has cleared the
banking system. Investors who purchased shares by check may write checks against
those shares only after they have been on the Fund's book for seven business
days. Shareholders who use this service may also use other redemption
procedures. No shareholder may write checks against certificated shares. The
Fund pays the bank charges for this service. However, the Fund will review the
cost of operation periodically and reserve the right to determine if direct
charges to the persons who avail themselves of this service would be
appropriate. The Fund, DWS-SISC and UMB Bank reserve the right at any time to
suspend or terminate the Checkwriting procedure.
Premium Class S Shares, Prime Reserve Class S Shares and Managed Shares of the
Fund accept Automated Clearing House ("ACH") debit entries for accounts that
have elected the checkwriting redemption privilege. An example of an ACH debit
is a transaction in which you have given your insurance company, mortgage
company, credit card company, utility company, health club, etc., the right to
withdraw your monthly payment from your fund account or the right to convert
your mailed check into an ACH debit. Sometimes, you may give a merchant from
whom you wish to purchase goods the right to convert your check to an ACH debit.
You may also authorize a third party to initiate an individual payment in a
specific amount from your account by providing your account information and
authorization to such third party via the Internet or telephone. You authorize
the fund upon receipt of an ACH debit entry referencing your account number, to
redeem fund shares in your account to pay the entry to the third party
originating the debit. The fund will make the payment on the basis of the
account number that you provide to your merchant and will not compare this
account number with the name on the account. The fund, the fund's transfer
agent, the Shareholder Service Agent or any other person or system handling the
transaction is not required to determine if there is a discrepancy between the
name and the account number shown on the transfer instructions.
The payment of any ACH debit entry will be subject to sufficient funds being
available in the designated account; the fund will not be able to honor an ACH
debit entry if sufficient funds are not available. ACH debit entry transactions
to your fund account should not be initiated or authorized by you in amounts
exceeding the value of the shares of the fund then in the account and available
for redemption. The fund may refuse to honor ACH debit entry transactions
whenever the right of redemption has been suspended or postponed, or whenever
the account is otherwise impaired. Your fund account statement will show any ACH
debit entries in your account; you will not receive any other separate notice.
(Merchants are permitted to convert your checks into ACH debits only with your
prior consent.)
You may authorize payment of a specific amount to be made from your account
directly by the fund to third parties on a continuing periodic basis. To arrange
for this service, you should contact the person or company you will be paying.
Any preauthorized transfers will be subject to sufficient funds being available
in the designated account. A preauthorized transfer will continue to be made
from the account in the same amount and frequency as initially established until
you terminate the preauthorized transfer instructions with the person or company
whom you have been paying. If regular preauthorized payments vary in amount, the
person or company you are going to pay should tell you ten (10) days before each
payment will be made and how much the payment will be.
If you wish to terminate the periodic preauthorized transfers, you should do so
with the person or company to whom you have been making payments. If you have
told the fund in advance to make regular payments out of your account, you may
stop any of these payments by writing or calling the Shareholder Service Agent
at the address and telephone number listed in the next paragraph in time for the
Shareholder Service Agent to receive your request three (3) business days or
more before the payment is scheduled to be made. If you call, the fund may also
require that you put your request in writing so that the fund will receive it
within 14 days after you call. If you order the fund to stop one of these
payments three (3) business days or more before the transfer is scheduled and
the fund does not do so, the fund will be liable for your loss or damages but
not in an amount exceeding the amount of the payment. A stop payment order will
stop only the designated periodic payment.
In case of errors or questions about your ACH debit entry transactions please
telephone ((800) 728-3337 for Prime Reserve Class S and Premium Class S or (800)
730-1313 for Managed Shares) or write (DWS Scudder Investments Service Company,
P.O. Box 219669, Kansas City, MO 64121-9669) the Shareholder Service Agent as
soon as possible if you think your statement is wrong or shows an improper
transfer or if you need more information about a transfer listed on the
statement. Our business days are Monday through Friday except holidays. The
Shareholder Service Agent must hear from you no later than 60 days after the
fund sent you the first fund account statement on which the problem or error
appeared. If you do not notify the Shareholder Service Agent within sixty (60)
days after the fund sends you the account statement, you may not get back any
money you have lost, and you may not get back any additional money you lose
after the sixty (60) days if the fund or Shareholder Service Agent could have
stopped someone from taking that money if you had notified the Shareholder
Service Agent in time.
When you report a suspected transaction, we will need your name and account
number, a description of the error or the transfer you are unsure about, an
explanation as to why you believe it is an error or why you need more
information and the dollar amount of the suspected error. If you tell the
Shareholder Service Agent orally, the Shareholder Service Agent may require that
you send your complaint or questions in writing within ten (10) business days.
The Shareholder Service Agent will determine whether an error occurred within
ten (10) business days after it hears from you and will correct any error
promptly. If the Shareholder Service Agent needs more time, however, it may take
up to 45 days (90 days for certain types of transactions) to investigate your
complaint or question. If the Shareholder Service Agent decides to do this, your
account will be credited with escrowed fund shares within ten (10) business days
for the amount you think is in error so that you will have the use of the money
during the time it takes the Shareholder Service Agent to complete its
investigation. If the Shareholder Service Agent asks you to put your complaint
or questions in writing and the Shareholder Service Agent does not receive it
within ten (10) business days, your account may not be credited. The Shareholder
Service Agent will tell you the results within three (3) business days after
completing its investigation. If the Shareholder Service Agent determines that
there was no error, the Shareholder Service Agent will send you a written
explanation. You may ask for copies of documents that were used by the
Shareholder Service Agent in the investigation.
In the event the fund, the fund's named transfer agent or the Shareholder
Service Agent does not complete a transfer from your account on time or in the
correct amount according to the fund's agreement with you, the fund may be
liable for your losses or damages. The fund will not be liable to you if (i)
there are not sufficient funds available in your account to complete the
transfer, (ii) circumstances beyond our control (such as fire or flood or
malfunction of equipment) prevent the transfer, (iii) you or another shareholder
have supplied a merchant with incorrect account information, or (iv) a merchant
has incorrectly formulated an ACH debit entry. In any case, the fund's liability
shall not exceed the amount of the transfer in question.
The fund, the fund's named transfer agent or the Shareholder Service Agent will
disclose information to third parties about your account or the transfers you
make: (1) where it is necessary for completing the transfers, (2) in order to
verify the existence or condition of your account for a third party such as a
credit bureau or a merchant, (3) in order to comply with government agencies or
court orders or (4) if you have given the fund written permission.
The acceptance and processing of ACH debit entry transactions is established
solely for your convenience and the fund reserves the right to suspend,
terminate or modify your ability to redeem fund shares by ACH debit entry
transactions at any time. ACH debit entry transactions are governed by the
National Automated Clearing House Association ("NACHA") Operating Rules and any
local ACH operating rules then in effect, as well as Regulation E of the Federal
Reserve Board.
Redemption-in-Kind
If conditions exist which make cash payments undesirable, upon consent of a
redeeming shareholder, the Trust may honor any request for redemption or
repurchase order by making payment in whole or in part in readily marketable
securities chosen by the Fund and valued as they are for purposes of computing
the Fund's net asset value (a redemption-in-kind). If payment is made in
securities, a shareholder may incur transaction expenses in converting these
securities into cash. The Trust has elected to be governed by Rule 18f-1 under
the 1940 Act as a result of which the Fund is obligated to redeem shares, with
respect to any one shareholder during any 90 day period, solely in cash up to
the lesser of $250,000 or 1% of the net asset value of that Fund at the
beginning of the period.
Expedited Redemption Service
In order to request the Expedited Redemption Service for Institutional Shares,
shareholders must have completed and returned to the Transfer Agent the
application electing this option. Redemption of shares may be requested by
calling (800) 730-1313. Expedited Redemption Service orders that arrive before
12 noon Eastern time will be processed that day, and, if possible, those
arriving between noon and 4:00 p.m. will be processed that day as well.
Expedited Redemption Service is not available between 4:00 p.m. and 5:00 p.m.,
but redemptions by other available means may be made until 5:00 p.m. Eastern
time.
Redemption by Wire
Shareholders may request to have redemption proceeds wired to their
pre-designated bank account. If a request for redemption to a shareholder's bank
account is made by telephone, payment will be by Federal Reserve bank wire to
the bank account designated on the application, unless a request is made that
the redemption check be mailed to the designated bank account. The Institutional
Shares do not charge a wire fee.
Note: Investors designating a savings bank to receive their telephone
redemption proceeds are advised that if the savings bank is not a
participant in the Federal Reserve System, redemption proceeds must be
wired through a commercial bank which is a correspondent of the
savings bank. As this may delay receipt by the shareholder's account,
it is suggested that investors wishing to use a savings bank discuss
wire procedures with their bank and submit any special wire transfer
information with the telephone redemption authorization. If
appropriate wire information is not supplied, redemption proceeds will
be mailed to the designated bank.
Automatic Withdrawal Plan
Non-retirement plan shareholders may establish an Automatic Withdrawal Plan to
receive monthly, quarterly or periodic redemptions from his or her account for
any designated amount of $50 or more. Shareholders may designate which day they
want the automatic withdrawal to be processed. The check amounts may be based on
the redemption of a fixed dollar amount, fixed share amount, percent of account
value or declining balance. The Plan provides for income dividends and capital
gains distributions, if any, to be reinvested in additional shares. Shares are
then liquidated as necessary to provide for withdrawal payments. Since the
withdrawals are in amounts selected by the investor and have no relationship to
yield or income, payments received cannot be considered as yield or income on
the investment and the resulting liquidations may deplete or possibly extinguish
the initial investment and any reinvested dividends and capital gains
distributions. Requests for increases in withdrawal amounts or to change the
payee must be submitted in writing, signed exactly as the account is registered,
and contain signature guarantee(s). Any such requests must be received by the
Fund's Transfer Agent ten days prior to the date of the first automatic
withdrawal. An Automatic Withdrawal Plan may be terminated at any time by the
shareholder, the Trust or its agent on written notice, and will be terminated
when all shares of the Fund under the Plan have been liquidated or upon receipt
by the Trust of notice of death of the shareholder.
The minimum account balance required to establish an automatic withdrawal plan
on regular accounts is $5,000. An Automatic Withdrawal Plan request form can be
obtained by calling (800) 728-3337 for Premium Class S shares and Prime Reserve
Class S shares.
DIVIDENDS
Dividends and Capital Gains Distribution Options -- Premium Class S, Prime
Reserve Class S and Managed Shares
Investors have freedom to choose whether to receive cash or to reinvest any
dividends from net investment income or distributions from realized capital
gains in additional shares of the Fund. For retirement plans, reinvestment is
the only option. A change of instructions for the method of payment must be
received by the Transfer Agent at least five days prior to a dividend record
date. Shareholders also may change their dividend option either by calling (800)
728-3337 for Premium Class S shares and Prime Reserve Class S shares and (800)
730-1313 for Managed Shares or by sending written instructions to the Transfer
Agent. Dividends and other distributions of the Fund in the aggregate amount of
$10 or less are automatically reinvested in shares of the Fund unless the
shareholder requests in writing that such policy not be applied to the
shareholder's account. Please include your account number with your written
request.
Reinvestment is usually made at the closing net asset value determined on the
business day following the record date. Investors may leave standing
instructions with the Transfer Agent designating their option for either
reinvestment or cash distribution of any income dividends or capital gains
distributions. If no election is made, dividends and distributions will be
invested in additional shares of the same class of the Fund.
Investors choosing to participate in DWS Scudder's Automatic Withdrawal Plan
must reinvest any dividends or capital gains. For most retirement plan accounts,
the reinvestment of dividends and capital gains is also required.
Transaction Summaries
Annual summaries of all transactions in each Fund account are available to
shareholders. The summaries may be obtained by calling (800) 728-3337 for
Premium Class S Shares, Prime Reserve Class S Shares or (800) 730-1313 for
Institutional and Managed Shares.
TAXES
The following discussion of US federal income tax consequences of investment in
the Fund is based on the Internal Revenue Code of 1986, as amended ("the Code"),
US Treasury regulations, and other applicable authority, as of the date of this
SAI. These authorities are subject to change by legislative or administrative
action, possibly with retroactive effect. The following discussion is only a
summary of some of the important US federal tax considerations generally
applicable to investments in the Fund. There may be other tax considerations
applicable to particular shareholders. Shareholders should consult their own tax
advisors regarding their particular situation and the possible application of
foreign, state and local tax laws.
Special tax rules apply to investments through defined contribution plans and
other tax-qualified plans. Shareholders should consult their tax advisers to
determine the suitability of shares of the Fund as an investment through such
plans and the precise effect of an investment on their particular tax situation.
Taxation of the Fund. The Fund intends to elect to be treated and to qualify
each year as a regulated investment company under Subchapter M of the Code. In
order to qualify for the special tax treatment accorded regulated investment
companies and their shareholders, the Fund must, among other things:
(a) derive at least 90% of its gross income for each taxable year from (i)
dividends, interest, payments with respect to certain securities loans, and
gains from the sale or other disposition of stock, securities or foreign
currencies, or other income (including but not limited to gains from
options, futures, or forward contracts) derived with respect to its
business of investing in such stock, securities, or currencies and (ii) net
income derived from interests in "qualified publicly traded partnerships"
(as defined below);
(b) diversify its holdings so that, at the end of each quarter of the Fund's
taxable year, (i) at least 50% of the maret value of the Fund's total
assets is represented by cash and cash items, US Government securities,
securities of other regulated investment companies, and other securities
limited in respect of any one issuer to a value not greater than 5% of the
value of the Fund's total assets and not more than 10% of the outstanding
voting securities of such issuer, and (ii) not more than 25% of the value
of the Fund's total assets is invested (x) in the securities (other than
those of the US Government or other regulated investment companies) of any
one issuer or of two or more issuers which the Fund controls and which are
engaged in the same, similar, or related trades or businesses, or (y) in
the securities of one or more qualified publicly traded partnerships (as
defined below); and
(c) distribute with respect to each taxable year at least 90% of the sum of its
investment company taxable income (as that term is defined in the Code
without regard to the deduction for dividends paid -- generally, taxable
ordinary income and the excess, if any, of net short-term capital gains
over net long-term capital losses) and net tax-exempt interest income, for
such year.
The Fund will be deemed to own its proportionate share of the Portfolio's assets
and to earn its proportionate share of the Portfolio's income for purposes of
determining whether the Fund satisfies the requirements described above.
In general, for purposes of the 90% gross income requirement described in
paragraph (a) above, income derived from a partnership will be treated as
qualifying income only to the extent such income is attributable to items of
income of the partnership which would be qualifying income if realized by the
regulated investment company. However, recent legislation provides that 100% of
the net income derived from an interest in a "qualified publicly traded
partnership" (defined as a partnership (x) interests in which are traded on an
established securities market or readily tradable on a secondary market or the
substantial equivalent thereof and (y) that derives at least 90% of its income
from the passive income sources defined in Code section 7704(d), and (z) that
derives less than 90% of its income from the qualifying income described in
paragraph (a)(i) above) will be treated as qualifying income. In addition,
although in general the passive loss rules of the Code do not apply to regulated
investment companies, such rules do apply to a regulated investment company with
respect to items attributable to an interest in a qualified publicly traded
partnership. Finally, for purposes of paragraph (b) above, the term "outstanding
voting securities of such issuer" will include the equity securities of a
qualified publicly traded partnership.
If the Fund qualifies as a regulated investment company that is accorded special
tax treatment, such Fund will not be subject to federal income tax on income
distributed in a timely manner to its shareholder in the form of dividends
(including Capital Gain Dividends, as defined below.
In determining its net capital gain for Capital Gain Dividend purposes, a
regulated investment company generally must treat any net capital loss or any
net long-term capital loss incurred after October 31 as if it had been incurred
in the succeeding year. Treasury regulations permit a regulated investment
company, in determining its taxable income, to elect to treat all or part of any
net capital loss, any net long-term capital loss or any foreign currency loss
incurred after October 31 as if it had been incurred in the succeeding year.
If for any taxable year the Fund does not qualify for the special federal income
tax treatment afforded regulated investment companies, all of its taxable income
will be subject to federal income tax at regular corporate rates (without any
deduction for distributions to its shareholders), and all distributions from
earnings and profits, including any distributions of net tax-exempt income and
net long-term capital gains, will be taxable to shareholders as ordinary income.
Such distributions however would generally be eligible (i) to be treated as
"qualified dividend income" in the case of individual and other noncorporate
shareholders, and (ii) for the 70% dividends received deduction in the case of
corporate shareholders. In addition, the Fund could be required to recognize
unrealized gains, pay substantial taxes and interest and make substantial
distributions before requalifying as a regulated investment company that is
accorded special tax treatment.
The Fund intends to distribute at least annually to its shareholders all or
substantially all of its investment company taxable income (computed without
regard to the dividends-paid deduction) and may distribute its net capital gain.
Investment company taxable income (which is retained by the Fund) will be
subject to tax at regular corporate rates. The Fund may also retain for
investment its net capital gain. If the Fund retains any net capital gain, it
will be subject to tax at regular corporate rates on the amount retained, but
may designate the retained amount as undistributed capital gains in a notice to
its shareholders who (i) will be required to include in income for federal
income tax purposes, as long-term capital gain, their shares of such
undistributed amount, and (ii) will be entitled to credit their proportionate
shares of the tax paid by the Fund on such undistributed amount against their
federal income tax liabilities, if any, and to claim refunds on a properly-filed
US tax return to the extent the credit exceeds such liabilities. For federal
income tax purposes, the tax basis of shares owned by a shareholder of the Fund
will be increased by an amount equal under current law to the difference between
the amount of undistributed capital gains included in the shareholder's gross
income and the tax deemed paid by the shareholder under clause (ii) of the
preceding sentence.
The Fund is subject to a nondeductible 4% excise tax on amounts required to be
but not distributed under a prescribed formula. The formula requires payment to
shareholders during a calendar year of distributions representing at least 98%
of the Fund's ordinary income for the calendar year and at least 98% of the
excess of its capital gains over capital losses realized during the one-year
period ending October 31 (in most cases) of such year as well as amounts that
were neither distributed nor taxed to the Fund during any prior calendar year. A
dividend paid to shareholders in January of a year generally is deemed to have
been paid by the Fund on December 31 of the preceding year, if the dividend was
declared and payable to shareholders of record on a date in October, November or
December of that preceding year. Although the Fund's distribution policies
should enable it to avoid excise tax liability, the Fund may retain (and be
subject to income and excise tax on) a portion of its capital gains or other
income if it appears to be in the interest of such Fund.
Taxation of Fund Distributions.
Dividends and distributions on the Fund's shares are generally subject to
federal income tax as described herein to the extent they do not exceed the
Fund's realized income and gains, even though such dividends and distributions
may economically represent a return of a particular shareholder's investment.
Such distributions are likely to occur in respect of shares purchased at a time
when the Fund's net asset value reflects gains that are either unrealized, or
realized but not distributed. Such realized gains may be required to be
distributed even when the Fund's net asset value also reflects unrealized
losses.
For federal income tax purposes, distributions of investment income are
generally taxable as ordinary income. Taxes on distributions of capital gains
are determined by how long the Fund owned the investments that generated them,
rather than how long a shareholder has owned his or her shares. Distributions of
net capital gains from the sale of investments that the Fund owned for more than
one year and that are properly designated by the Fund as capital gain dividends
("Capital Gain Dividends") will be taxable as ordinary income Distributions are
taxable whether shareholders receive them in cash or reinvest them in additional
shares through the reinvestment privilege.
Long-term capital gain rates applicable to individuals have been temporarily
reduced -- in general, to 15% with lower rates applying to taxpayers in the 10%
and 15% rate brackets -- for taxable years beginning before January 1, 2011. The
Fund does not expect to make any distributions that qualify as qualified
dividend income.
If the Fund makes a distribution to a shareholder in excess of the Fund's
current and accumulated earnings and profits in any taxable year, the excess
distribution will be treated as a return of capital to the extent of such
shareholder's tax basis in its shares, and thereafter as capital gain. A return
of capital is not taxable, but it reduces a shareholder's tax basis in its
shares, thus reducing any loss or increasing any gain on a subsequent taxable
disposition by the shareholder of its shares.
Taxation of Fund Investments. Because the Fund invests all of its assets in
shares of the Portfolio, which is taxed as a regulated investment company, its
distributable income and gains will normally consist of distributions from the
Portfolio and gains and losses on the disposition of shares of the Portfolio. To
the extent that the Portfolio realizes net losses on its investments for a given
taxable year, the Fund will not be able to recognize its share of those losses
(so as to offset distributions of net income or capital gains from other
underlying funds) until it disposes of shares of the Portfolio. Moreover, even
when the Fund does make such a disposition, a portion of its loss may be
recognized as a long-term capital loss, which will not be treated as favorably
for federal income tax purposes as a short-term capital loss or an ordinary
deduction. In particular, the Fund will not be able to offset any capital losses
from its dispositions of Portfolio shares against its ordinary income (including
distributions of any net short-term capital gains realized by the Portfolio).
In addition, in certain circumstances, the "wash sale" rules under Section 1091
of the Code may apply to the Fund's sales of the Portfolio's shares that have
generated losses. A wash sale occurs if the Portfolio's shares are sold by the
Fund at a loss and the Fund acquires additional Portfolio shares 30 days before
or after the date of the sale. The wash-sale rules could defer loses in the
Fund's hands on sales of Portfolio shares (to the extent such sales are wash
sales) for extended (and, in certain cases, potentially indefinite) periods of
time.
As a result of the foregoing rules, and certain other special rules, it is
possible that the amounts of net investment income and net capital gains that
the Fund will be required to distribute to shareholders will be greater than
such amounts would have been had the Fund invested directly in the securities
held by the Portfolio, rather than investing in shares of the Portfolio. For
similar reasons, the character of distributions from the Fund (e.g., long-term
capital gain, exempt interest, eligibility for dividends-received deduction,
etc.) will not necessarily be the same as it would have been had the Fund
invested directly in the securities held by the Portfolio.
Depending on the Fund's percentage ownership in the Portfolio both before and
after a redemption of Portfolio shares, the Fund's redemption of shares of the
Portfolio may cause the Fund to be treated as receiving a dividend taxable as
ordinary income on the full amount of the distribution instead of receiving
capital gain income on the shares of the Portfolio. This would be the case where
the Fund holds a significant interest in the Portfolio and redeems only a small
portion of such interest.
Transactions in Fund Shares. The sale, exchange or redemption of shares of the
Fund may give rise to a gain or loss. In general, any gain or loss realized upon
a taxable disposition of shares will be treated as long-term capital gain or
loss if the shares have been held for more than 12 months. Otherwise, the gain
or loss on the taxable disposition of shares of the Fund will be treated as
short-term capital gain or loss. However, any loss realized upon a taxable
disposition of shares held for six months or less will be treated as long-term,
rather than short-term, to the extent of any long-term capital gain
distributions received (or deemed received) by the shareholder with respect to
the shares. All or a portion of any loss realized upon a taxable disposition of
shares of the Fund will be disallowed if other substantially identical shares of
a Fund are purchased within 30 days before or after the disposition. In such a
case, the basis of the newly purchased shares will be adjusted to reflect the
disallowed loss. Because the Fund seeks to maintain a stable share price, you
are unlikely to have capital gains or losses when you sell Fund shares.
Under Treasury regulations, if a shareholder recognizes a loss of $2 million or
more for an individual shareholder or $10 million or more for a corporate
shareholder, the shareholder must file with the Internal Revenue Service ("IRS")
a disclosure statement on Form 8886. Direct shareholders of portfolio securities
are in many cases excepted from this reporting requirement, but under current
guidance, shareholders of a regulated investment company are not excepted.
Future guidance may extend the current exception from this reporting requirement
to shareholders of most or all regulated investment companies. The fact that a
loss is reportable under these regulations does not affect the legal
determination of whether the taxpayer's treatment of the loss is proper.
Shareholders should consult their tax advisers to determine the applicability of
these regulations in light of their individual circumstances.
In some cases, shareholders will not be permitted to take all or a portion of
their sales loads into account for purposes of determining the amount of gain or
loss realized on the disposition of their shares. This prohibition generally
applies where (1) the shareholder incurs a sales load in acquiring the shares of
the Fund, (2) the shares are disposed of before the 91st day after the date on
which they were acquired, and (3) the shareholder subsequently acquires shares
in the Fund or another regulated investment company and the otherwise applicable
sales charge is reduced under a "reinvestment right" received upon the initial
purchase of Fund shares. The term " reinvestment right" means any right to
acquire shares of one or more regulated investment companies without the payment
of a sales load or with the payment of a reduced sales charge. Sales charges
affected by this rule are treated as if they were incurred with respect to the
shares acquired under the reinvestment right. This provision may be applied to
successive acquisitions of Fund shares.
Withholding and Other Tax Considerations. Under the backup withholding
provisions of the Code, redemption proceeds as well as distributions may be
subject to federal income tax withholding for certain shareholders, including
those who fail to furnish a Fund with their taxpayer identification numbers and
certifications as to their tax status, who have underreported dividend or
interest income, or who fail to certify to the Fund that they are not subject to
such withholding.
Non-US Shareholders. Distributions properly designated Capital Gain Dividends
generally will not be subject to withholding of federal income tax. In general,
dividends (other than Capital Gain Dividends) paid by the Fund to a shareholder
that is not a "US person" within the meaning of the Code (a "foreign person")
are subject to withholding of US federal income tax at a rate of 30% (or lower
applicable treaty rate) even if they are funded by income or gains (such as
portfolio interest, short-term capital gains, or foreign-source dividend and
interest income) that, if paid to a foreign person directly, would not be
subject to withholding. However, effective for taxable years of the Fund
beginning before January 1, 2008, the Fund was not required to withhold any
amounts (i) with respect to distributions (other than distributions to a foreign
person (w) that has not provided a satisfactory statement that the beneficial
owner is not a US person, (x) to the extent that the dividend is attributable to
certain interest on an obligation if the foreign person is the issuer or is a
10% shareholder of the issuer, (y) that is within certain foreign countries that
have inadequate information exchange with the United States, or (z) to the
extent the dividend is attributable to interest paid by a person that is a
related person of the foreign person and the foreign person is a controlled
foreign corporation) from US source interest income that would not be subject to
US federal income tax if earned directly by an individual foreign person, to the
extent such distributions are properly designated by the Fund, and (ii) with
respect to distributions (other than distributions to an individual foreign
person who is present in the United States for a period or periods aggregating
183 days or more during the year of the distribution) of net short-term capital
gains in excess of net long-term capital losses, to the extent such
distributions are properly designated by the Fund. Depending on the
circumstances, the Fund may make such designations with respect to all, some or
none of its potentially eligible dividends and/or treat such dividends, in whole
or in part, as ineligible for this exemption from withholding. Pending
legislation would extend the exemption from withholding for interest-related and
short-term capital gain distributions for one year, i.e. for taxable years
beginning before January 1, 2009. At the time of this filing, it is unclear
whether the legislation will be enacted.
In order to qualify for this exemption from withholding, a foreign person will
need to comply with applicable certification requirements relating to its non-US
status (including, in general, furnishing an IRS Form W-8BEN or substitute
form). In the case of shares held through an intermediary, the intermediary may
withhold even if the Fund makes a designation with respect to a payment. Foreign
persons should consult their intermediaries with respect to the application of
these rules to their account.
A beneficial holder of shares who is a foreign person is not, in general,
subject to US federal income tax on gains (and is not allowed a deduction for
losses) realized on the sale of shares of the Fund or on Capital Gain Dividends
unless (i) such gain or dividend is effectively connected with the conduct of a
trade or business carried on by such holder within the United States or (ii) in
the case of an individual holder, the holder is present in the United States for
a period or periods aggregating 183 days or more during the year of the sale or
the receipt of the Capital Gain Dividend and certain other conditions are met.
In order for a foreign investor to qualify for exemption from the backup
withholding tax rates under income tax treaties, the foreign investor must
comply with special certification and filing requirements. Foreign investors in
the Fund should consult their tax advisers in this regard. Backup withholding is
not an additional tax. Any amounts withheld may be credited against the
shareholder's US federal income tax liability, provided the appropriate
information is furnished to the IRS.
If a shareholder is eligible for the benefits of a tax treaty, any effectively
connected income or gain will generally be subject to US federal income tax on a
net basis only if it is also attributable to a permanent establishment
maintained by the shareholder in the United States.
A beneficial holder of shares who is a foreign person may be subject to state
and local tax and to the US federal estate tax in addition to the federal tax on
income referred to above.
General Considerations. The federal income tax discussion set forth above is for
general information only. Investors are advised to consult their own tax
advisors with respect to their own circumstances of the above-described general
federal income taxation rules and with respect to other federal, state, local or
foreign tax consequences to them of an investment in shares of the Fund.
NET ASSET VALUE
The Portfolio values its portfolio instruments at amortized cost, which does not
take into account unrealized capital gains or losses. This involves initially
valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the market value of the instrument. While this
method provides certainty in valuation, it may result in periods during which
value, as determined by amortized cost, is higher or lower than the price the
Portfolio would receive if it sold the instrument. Calculations are made to
compare the value of the Portfolio's investments valued at amortized cost with
market values. Market valuations are obtained by using actual quotations
provided by market makers, estimates of market value, or values obtained from
yield data relating to classes of money market instruments published by
reputable sources at the mean between the bid and asked prices for the
instruments. If a deviation of 1/2 of 1% or more were to occur between the net
asset value per share calculated by reference to market values and the
Portfolio's $1.00 per share net asset value, or if there were any other
deviation that the Board of Trustees of the Portfolio believed would result in a
material dilution to shareholders or purchasers, the Board of Trustees would
promptly consider what action, if any, should be initiated. If the Portfolio's
net asset value per share (computed using market values) declined, or were
expected to decline, below $1.00 (computed using amortized cost), the Board of
Trustees of the Portfolio might temporarily reduce or suspend dividend payments
in an effort to maintain the net asset value at $1.00 per share. As a result of
such reduction or suspension of dividends or other action by the Board of
Trustees, an investor would receive less income during a given period than if
such a reduction or suspension had not taken place. Such action could result in
investors receiving no dividend for the period during which they hold their
shares and receiving, upon redemption, a price per share lower than that which
they paid. On the other hand, if the Portfolio's net asset value per share
(computed using market values) were to increase, or were anticipated to increase
above $1.00 (computed using amortized cost), the Board of Trustees of the
Portfolio might supplement dividends in an effort to maintain the net asset
value at $1.00 per share. Redemption orders received in connection with the
administration of checkwriting programs by certain dealers or other financial
services firms prior to the determination of the Portfolio's net asset value
also may be processed on a confirmed basis in accordance with the procedures
established by DWS-SDI.
Each investor in the Portfolio, including the Fund, may add to or reduce its
investment in the Portfolio on each day the Portfolio determines its NAV. At the
close of each such business day, the value of each investor's beneficial
interest in the Portfolio will be determined by multiplying the NAV of the
Portfolio by the percentage, effective for that day, which represents that
investor's share of the aggregate beneficial interests in the Portfolio. Any
additions or withdrawals, which are to be effected as of the close of business
on that day, will then be effected. The investor's percentage of the aggregate
beneficial interests in the Portfolio will then be recomputed as the percentage
equal to the fraction (i) the numerator of which is the value of such investor's
investment in the Portfolio as of the close of business on such day plus or
minus, as the case may be, the amount of net additions to or withdrawals from
the investor's investment in the Portfolio effected as of the close of business
on such day, and (ii) the denominator of which is the aggregate NAV of the
Portfolio as of the close of business on such day plus or minus, as the case may
be, the amount of net additions to or withdrawals from the aggregate investments
in the Portfolio by all investors in the Portfolio. The percentage so determined
will then be applied to determine the value of the investor's interest in the
Portfolio as of the close of the following business day.
TRUSTEES AND OFFICERS
The following table presents certain information regarding the Board Members of
the Trust. Each Board Member's year of birth is set forth in parentheses after
his or her name. Unless otherwise noted, (i) each Board Member has engaged in
the principal occupation(s) noted in the table for at least the most recent five
years, although not necessarily in the same capacity, and (ii) the address of
each Board Member that is not an "interested person" (as defined in the 1940
Act) of the Trust or the Advisor (each, an "Independent Board Member") is c/o
Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33904. The term of office for
each Board Member is until the election and qualification of a successor, or
until such Board Member sooner dies, resigns, is removed or as otherwise
provided in the governing documents of the Trust. Because the Fund does not hold
an annual meeting of shareholders, each Board Member will hold office for an
indeterminate period. The Board Members may also serve in similar capacities
with other funds in the DWS fund complex.
Independent Board Members
--------------------------------------------------------------------------------------------------------------------
Name, Year of Birth, Position Number of Funds
with the Trust and Length of Business Experience and in DWS Fund
Time Served(1) Directorships During the Past 5 Years Complex Overseen
--------------------------------------------------------------------------------------------------------------------
Dawn-Marie Driscoll (1946) President, Driscoll Associates (consulting firm); Executive 135
Chairperson since 2004,(2) and Fellow, Center for Business Ethics, Bentley College;
Board Member since 1987 formerly: Partner, Palmer & Dodge (1988-1990); Vice President
of Corporate Affairs and General Counsel, Filene's
(1978-1988); Directorships: Trustee of 8 open-end mutual
funds managed by Sun Capital Advisers, Inc. (since 2007);
Director of ICI Mutual Insurance Company (since 2007);
Advisory Board, Center for Business Ethics,
Bentley College; Trustee, Southwest Florida
Community Foundation (charitable
organization); former Directorships:
Investment Company Institute (audit,
executive, nominating committees) and
Independent Directors Council (governance,
executive
committees)
--------------------------------------------------------------------------------------------------------------------
Paul K. Freeman Consultant, World Bank/Inter-American Development Bank; 133
(1950) formerly: Project Leader, International Institute for Applied
Vice Chairperson since 2008, and Systems Analysis (1998-2001); Chief Executive Officer, The
Board Member since 1993 Eric Group, Inc. (environmental insurance) (1986-1998)
--------------------------------------------------------------------------------------------------------------------
John W. Ballantine (1946) Retired; formerly: Executive Vice President and Chief Risk 135
Board Member since 1999 Management Officer, First Chicago NBD Corporation/The First
National Bank of Chicago (1996-1998); Executive Vice
President and Head of International Banking (1995-1996);
Directorships: Healthways Inc. (provider of disease and care
management services); Portland General Electric (utility
company); Stockwell Capital Investments PLC (private equity);
former Directorships: First Oak Brook Bancshares, Inc. and
Oak Brook Bank
--------------------------------------------------------------------------------------------------------------------
Henry P. Becton, Jr. (1943) Vice Chair, WGBH Educational Foundation; Directorships: 135
Board Member since Association of Public Television Stations; Becton Dickinson
1990 and Company(3) (medical technology company); Belo
Corporation(3) (media company); Boston Museum
of Science; Public Radio International; former
Directorships: American Public Television;
Concord Academy; New England Aquarium; Mass.
Corporation for Educational
Telecommunications; Committee for Economic
Development; Public Broadcasting Service
--------------------------------------------------------------------------------------------------------------------
Keith R. Fox (1954) Managing General Partner, Exeter Capital Partners (a series 135
Board Member since of private equity funds); Directorships: Progressive Holding
1996 Corporation (kitchen goods importer and distributor); Natural
History, Inc. (magazine publisher); Box Top Media Inc.
(advertising); The Kennel Shop (retailer)
--------------------------------------------------------------------------------------------------------------------
Kenneth C. Froewiss Clinical Professor of Finance, NYU Stern School of Business 135
(1945) (1997-present); Member, Finance Committee, Association for
Board Member since Asian Studies (2002-present); Director, Mitsui Sumitomo
2001 Insurance Group (US) (2004-present); prior thereto, Managing
Director, J.P. Morgan (investment banking firm) (until 1996)
--------------------------------------------------------------------------------------------------------------------
Richard J. Herring Jacob Safra Professor of International Banking and Professor, 135
(1946) Finance Department, The Wharton School, University of
Board Member since Pennsylvania (since July 1972); Co-Director, Wharton
1990 Financial Institutions Center (since July 2000); Director,
Japan Equity Fund, Inc. (since September 2007), Thai Capital
Fund, Inc. (since September 2007), Singapore Fund, Inc.
(since September 2007); formerly: Vice Dean and Director,
Wharton Undergraduate Division (July 1995-June 2000);
Director, Lauder Institute of International Management
Studies (July 2000-June 2006)
--------------------------------------------------------------------------------------------------------------------
William McClayton (1944) Chief Administrative Officer, Diamond Management & Technology 135
Board Member since 2004 Consultants, Inc. (global management consulting firm)
(2001-present); Directorship: Board of Managers, YMCA of
Metropolitan Chicago; formerly: Senior Partner, Arthur
Andersen LLP (accounting) (1966-2001); Trustee, Ravinia
Festival
--------------------------------------------------------------------------------------------------------------------
Rebecca W. Rimel President and Chief Executive Officer, The Pew Charitable 135
(1951) Trusts (charitable organization) (1994 to present); Trustee,
Board Member since Thomas Jefferson Foundation (charitable organization) (1994
1995 to present); Trustee, Executive Committee, Philadelphia
Chamber of Commerce (2001 to 2007); Trustee,
Pro Publica (2007-present) (charitable
organization); formerly: Executive Vice
President, The Glenmede Trust Company
(investment trust and wealth management) (1983
to 2004); Board Member, Investor Education
(charitable organization) (2004-2005);
Director, Viasys Health Care(3) (January
2007-June 2007)
--------------------------------------------------------------------------------------------------------------------
William N. Searcy, Jr. Private investor since October 2003; Trustee of 8 open-end 135
(1946) mutual funds managed by Sun Capital Advisers, Inc. (since
Board Member since October 1998); formerly: Pension & Savings Trust Officer,
1993 Sprint Corporation(3) (telecommunications) (November
1989-September 2003)
--------------------------------------------------------------------------------------------------------------------
Jean Gleason Stromberg Retired; formerly: Consultant (1997-2001); Director, US 135
(1943) Government Accountability Office (1996-1997); Partner,
Board Member since Fulbright & Jaworski, L.L.P. (law firm) (1978-1996);
1997 Directorships: The William and Flora Hewlett Foundation;
Service Source, Inc.; former Directorships: Mutual Fund
Directors Forum (2002-2004), American Bar Retirement
Association (funding vehicle for retirement plans) (1987-1990
and 1994-1996)
--------------------------------------------------------------------------------------------------------------------
Robert H. Wadsworth (1940) President, Robert H. Wadsworth & Associates, Inc. (consulting 138
Board Member since 1999 firm) (1983 to present).
--------------------------------------------------------------------------------------------------------------------
Interested Board Member
--------------------------------------------------------------------------------------------------------------------
Name, Year of Birth, Position Business Experience and Number of Funds
with the Trust and Length of in DWS Fund
Time Served(1) Directorships During the Past 5 Years Complex Overseen
--------------------------------------------------------------------------------------------------------------------
Axel Schwarzer(4) Managing Director(5), Deutsche Asset Management; Head of 135
(1958) Deutsche Asset Management Americas; CEO of DWS Scudder;
Board Member since formerly: board member of DWS Investments, Germany
2006 (1999-2005); Head of Sales and Product Management for the
Retail and Private Banking Division of
Deutsche Bank in Germany (1997-1999); various
strategic and operational positions for
Deutsche Bank Germany Retail and Private
Banking Division in the field of investment
funds, tax driven instruments and asset
management for corporates (1989-1996)
--------------------------------------------------------------------------------------------------------------------
Officers(6)
--------------------------------------------------------------------------------------------------------------------
Name, Year of Birth, Position Business Experience and
with the Trust and Length of
Time Served(7) Directorships During the Past 5 Years
--------------------------------------------------------------------------------------------------------------------
Michael G. Clark(8) (1965) Managing Director(5), Deutsche Asset Management (2006-present); President of
President, 2006-present DWS family of funds; Director, ICI Mutual Insurance Company (since
October 2007); formerly: Director of Fund Board Relations (2004-2006) and
Director of Product Development (2000-2004), Merrill Lynch Investment Managers;
Senior Vice President Operations, Merrill Lynch Asset Management (1999-2000)
--------------------------------------------------------------------------------------------------------------------
John Millette(9) (1962) Director(5), Deutsche Asset Management
Vice President and Secretary,
1999-present
--------------------------------------------------------------------------------------------------------------------
Paul H. Schubert(8) (1963) Managing Director(5), Deutsche Asset Management (since July 2004); formerly:
Chief Financial Officer, Executive Director, Head of Mutual Fund Services and Treasurer for UBS Family
2004-present of Funds (1998-2004); Vice President and Director of Mutual Fund Finance at UBS
Treasurer, 2005-present Global Asset Management (1994-1998)
--------------------------------------------------------------------------------------------------------------------
Patricia DeFilippis(8) (1963) Vice President, Deutsche Asset Management (since June 2005); formerly: Counsel,
Assistant Secretary, New York Life Investment Management LLC (2003-2005); legal associate, Lord,
2005-present Abbett & Co. LLC (1998-2003)
--------------------------------------------------------------------------------------------------------------------
Elisa D. Metzger(8) (1962) Director(5), Deutsche Asset Management (since September 2005); formerly:
Assistant Secretary, Counsel, Morrison and Foerster LLP (1999-2005)
2005-present
--------------------------------------------------------------------------------------------------------------------
Caroline Pearson(9) (1962) Managing Director(5), Deutsche Asset Management
Assistant Secretary,
1997-present
--------------------------------------------------------------------------------------------------------------------
Paul Antosca(9) Director(5), Deutsche Asset Management (since 2006); formerly: Vice President,
(1957) The Manufacturers Life Insurance Company (U.S.A.) (1990-2006)
Assistant Treasurer,
2007-present
--------------------------------------------------------------------------------------------------------------------
Jack Clark (9) Director(5), Deutsche Asset Management (since 2007); formerly: Vice President,
(1967) State Street Corporation (2002-2007)
Assistant Treasurer,
2007-present
--------------------------------------------------------------------------------------------------------------------
Kathleen Sullivan D'Eramo(9) Director(5), Deutsche Asset Management
(1957)
Assistant Treasurer,
2003-present
--------------------------------------------------------------------------------------------------------------------
Diane Kenneally(9) Director(5), Deutsche Asset Management
(1966)
Assistant Treasurer,
2007-present
--------------------------------------------------------------------------------------------------------------------
Jason Vazquez(8) (1972) Vice President, Deutsche Asset Management (since 2006); formerly: AML
Anti-Money Laundering Operations Manager for Bear Stearns (2004-2006); Supervising Compliance
Compliance Officer, Principal and Operations Manager for AXA Financial (1999-2004)
2007-present
--------------------------------------------------------------------------------------------------------------------
Robert Kloby(8) (1962) Managing Director(5), Deutsche Asset Management (2004-present); formerly: Chief
Chief Compliance Officer, Compliance Officer/Chief Risk Officer, Robeco USA (2000-2004); Vice President,
2006-present The Prudential Insurance Company of America (1988-2000); E.F. Hutton and
Company (1984-1988)
--------------------------------------------------------------------------------------------------------------------
J. Christopher Jackson(8) Director(5), Deutsche Asset Management (2006-present); formerly: Director,
(1951) Chief Legal Officer, Senior Vice President, General Counsel, and Assistant Secretary, Hansberger Global
2006-present Investors, Inc. (1996-2006); Director, National Society of Compliance
Professionals (2002-2005) (2006-2009)
--------------------------------------------------------------------------------------------------------------------
|
(1) The length of time served represents the year in which the Board Member
joined the board of one or more DWS funds currently overseen by the
Board.
(2) Represents the year in which Ms. Driscoll was first appointed
Chairperson of certain DWS funds.
(3) A publicly held company with securities registered pursuant to
Section 12 of the Securities Exchange Act of 1934.
(4) The mailing address of Axel Schwarzer is c/o Deutsche Investment
Management Americas Inc., 345 Park Avenue, New York, New York 10154.
Mr. Schwarzer is an interested Board Member by virtue of his positions
with Deutsche Asset Management. As an interested person, Mr. Schwarzer
receives no compensation from the Fund.
(5) Executive title, not a board directorship.
(6) As a result of their respective positions held with the Advisor, these
individuals are considered "interested persons" of the Advisor within
the meaning of the 1940 Act. Interested persons receive no compensation
from the Fund.
(7) The length of time served represents the year in which the officer was
first elected in such capacity for one or more DWS funds.
(8) Address: 345 Park Avenue, New York, New York 10154.
(9) Address: Two International Place, Boston, Massachusetts 02110.
Certain officers hold similar positions for other investment companies for which
DIMA or an affiliate serves as the Advisor.
Officer's Role with Principal Underwriter: DWS Scudder Distributors, Inc.
------------------------------------------ ------------------------------
Paul H. Schubert: Vice President
Caroline Pearson: Secretary
|
Board Members' Responsibilities. The officers of the Trust manage its day-to-day
operations under the direction of the Board. The primary responsibility of the
Board is to represent the interests of the Fund and to provide oversight of the
management of the Fund.
Board Committees. The Board has established the following standing committees:
Audit Committee, Nominating and Governance Committee, Contract Committee, Equity
Oversight Committee, Fixed-Income and Quant Oversight Committee, Marketing and
Shareholder Services Committee, and Operations Committee. For each committee,
the Board has adopted a written charter setting forth each committee's
responsibilities. Each committee was reconstituted effective April 1, 2008.
Audit Committee: The Audit Committee, which consists entirely of Independent
Board Members, assists the Board in fulfilling its responsibility for oversight
of (1) the integrity of the financial statements, (2) the Fund's accounting and
financial reporting policies and procedures, (3) the Fund's compliance with
legal and regulatory requirements related to accounting and financial reporting
and (4) the qualifications, independence and performance of the independent
registered public accounting firm for the Fund. It also approves and recommends
to the Board the appointment, retention or termination of the independent
registered public accounting firm for the Fund, reviews the scope of audit and
internal controls, considers and reports to the Board on matters relating to the
Fund's accounting and financial reporting practices, and performs such other
tasks as the full Board deems necessary or appropriate. The Audit Committee
receives annual representations from the independent registered public
accounting firm as to its independence. The members of the Audit Committee are
William McClayton (Chair), Kenneth C. Froewiss (Vice Chair), John W. Ballantine,
Henry P. Becton, Jr., Keith R. Fox and William N. Searcy, Jr. During the
calendar year 2007, the Audit Committee of the Fund's Board held nine (9)
meetings.
Nominating and Governance Committee: The Nominating and Governance Committee,
which consists entirely of Independent Board Members, recommends individuals for
membership on the Board, nominates officers, board and committee chairs, vice
chairs and committee members, and oversees the operations of the Board. The
Nominating and Governance Committee also reviews recommendations by shareholders
for candidates for Board positions. Shareholders may recommend candidates for
Board positions by forwarding their correspondence by US mail or courier service
to Dawn-Marie Driscoll, P.O. Box 100176, Cape Coral, FL 33904. The members of
the Nominating and Governance Committee are Henry P. Becton, Jr. (Chair),
Rebecca W. Rimel (Vice Chair), Paul K. Freeman and William McClayton. During the
calendar year 2007, the Nominating/Corporate Governance Committee of the Fund's
Board performed similar functions and held three (3) meetings.
Contract Committee: The Contract Committee, which consists entirely of
Independent Board Members, reviews at least annually, (a) the Fund's financial
arrangements with DIMA and its affiliates, and (b) the Fund's expense ratios.
The members of the Contract Committee are Robert H. Wadsworth (Chair), Keith R.
Fox (Vice Chair), Henry P. Becton, Jr., Richard J. Herring, William McClayton
and Jean Gleason Stromberg.
Equity Oversight Committee: The Equity Oversight Committee reviews the
investment operations of those Funds that primarily invest in equity securities
(except for those funds managed by a quantitative investment team). The members
of the Equity Oversight Committee are John W. Ballantine (Chair), William
McClayton (Vice Chair), Henry P. Becton, Jr., Keith R. Fox, Richard J. Herring
and Rebecca W. Rimel. During the calendar year 2007, the Equity Oversight
Committee of the Fund's Board performed similar functions and held six (6)
meetings.
Fixed-Income and Quant Oversight Committee: The Fixed-Income and Quant Oversight
Committee reviews the investment operations of those Funds that primarily invest
in fixed-income securities or are managed by a quantitative investment team. The
members of the Fixed-Income and Quant Oversight Committee are William N. Searcy,
Jr. (Chair), Jean Gleason Stromberg (Vice Chair), Dawn-Marie Driscoll, Paul K.
Freeman, Kenneth C. Froewiss and Robert H. Wadsworth. During the calendar year
2007, the Fixed-Income Oversight Committee of the Fund's Board performed similar
functions and held six (6) meetings.
Marketing and Shareholder Services Committee: The Marketing and Shareholder
Services Committee reviews the Fund's marketing program, sales practices and
literature and shareholder services. The members of the Marketing and
Shareholder Services Committee are Richard J. Herring (Chair), Dawn-Marie
Driscoll (Vice Chair), Paul K. Freeman, Rebecca W. Rimel, Jean Gleason Stromberg
and Robert H. Wadsworth. During the calendar year 2007, the
Marketing/Distribution/Shareholder Service Committee of the Fund's Board
performed similar functions and held seven (7) meetings. ]
The Operations Committee: The Operations Committee reviews the administrative
operations, legal affairs and general compliance matters of the Fund. The
Operations Committee reviews administrative matters related to the operations of
the Fund, policies and procedures relating to portfolio transactions, custody
arrangements, fidelity bond and insurance arrangements, valuation of Fund assets
and securities and such other tasks as the full Board deems necessary or
appropriate. The Operations Committee also oversees the valuation of the Fund's
securities and other assets and determines, as needed, the fair value of Fund
securities or other assets under certain circumstances as described in the
Fund's Valuation Procedures. The Operations Committee has appointed a Valuation
Sub-Committee, which may make determinations of fair value required when the
Operations Committee is not in session. The members of the Operations Committee
are Paul K. Freeman (Chair), Dawn-Marie Driscoll (Vice Chair), John W.
Ballantine, Kenneth C. Froewiss, Rebecca W. Rimel and William N. Searcy, Jr. The
members of the Valuation Sub-Committee are Kenneth C. Froewiss (Chair), John W.
Ballantine, Dawn-Marie Driscoll (Alternate), Paul K. Freeman (Alternate),
Rebecca W. Rimel (Alternate) and William N. Searcy, Jr. (Alternate). During the
calendar year 2007, the Expenses/Operations Committee and Valuation Committee
performed similar functions and each held nine (9) meetings and six (6)meetings,
respectively.
Ad Hoc Committees. In addition to the standing committees described above, from
time to time the Board may also form ad hoc committees to consider specific
issues.
Remuneration. Each Independent Board Member receives compensation from the Fund
for his or her services, which includes an annual retainer and an attendance fee
for each meeting attended. No additional compensation is paid to any Independent
Board Member for travel time to meetings, attendance at directors' educational
seminars or conferences, service on industry or association committees,
participation as speakers at directors' conferences or service on special fund
industry director task forces or subcommittees. Independent Board Members do not
receive any employee benefits such as pension or retirement benefits or health
insurance from the Fund or any fund in the DWS fund complex.
Board Members who are officers, directors, employees or stockholders of Deutsche
Asset Management or its affiliates receive no direct compensation from the Fund,
although they are compensated as employees of Deutsche Asset Management, or its
affiliates, and as a result may be deemed to participate in fees paid by the
Fund. The following tables show compensation from the Fund and aggregate
compensation from all of the funds in the DWS fund complex received by each
Independent Board Member during the calendar year 2007. Mr. Schwarzer is an
interested person of the Fund and received no compensation from the Fund or any
fund in the DWS fund complex during the relevant periods.
Aggregate Compensation Aggregate Compensation Total Compensation
from DWS Money Market from Cash Management from Fund and
Name of Board Member Series Portfolio DWS Fund Complex(1)
-------------------- ------ --------- -------------------
John W. Ballantine $0 $0 $215,000
Henry P. Becton, Jr.(2) $33,817 $35,760 $200,000
Dawn-Marie Driscoll(2)(3) $41,978 $45,830 $253,000
Keith R. Fox(2) $34,003 $36,160 $203,000
Paul K. Freeman(4) $0 $0 $265,000
Kenneth C. Froewiss(2) $33,496 $35,612 $200,000
Richard J. Herring(2) $32,413 $35,052 $195,000
William McClayton(5) $0 $0 $205,000
Rebecca W. Rimel(2) $31,573 $34,139 $194,000
William N. Searcy, Jr.(2) $33,496 $35,612 $200,000
Jean Gleason Stromberg(2) $31,573 $33,742 $189,000
Robert H. Wadsworth $0 $0 $245,250
|
(1) The DWS fund complex is composed of 138 funds as of December 31, 2007.
(2) Aggregate compensation includes amounts paid to the Board Members for
special meetings of ad hoc committees of the board in connection with
the consolidation of the DWS fund boards and various funds, meetings
for considering fund expense simplification initiatives, and
consideration of issues specific to the Fund's direct shareholders
(i.e., those shareholders who did not purchase shares through financial
intermediaries). Such amounts totaled $1,000 for Mr. Becton, $1,000 for
Ms. Driscoll, $1,000 for Mr. Fox, $1,000 for Mr. Froewiss, $1,000 for
Dr. Herring, $5,000 for Ms. Rimel, $1,000 for Mr. Searcy and $1,000 for
Ms. Stromberg. These meeting fees were borne by the Advisor.
(3) Includes $50,000 in annual retainer fees received by Ms. Driscoll as
Chairperson of certain DWS funds.
(4) Includes $25,000 paid to Dr. Freeman for numerous special meetings of
an ad hoc committee in connection with board consolidation initiatives
and $50,000 in annual retainer fees received by Dr. Freeman as
Chairperson of certain DWS funds.
(5) Does not include $15,000 to be paid to Mr. McClayton in calendar year
2008 for numerous special meetings of an ad hoc committee of the former
Chicago Board in connection with board consolidation initiatives.
Dr. Freeman, prior to his service as Independent Board Member, served as a
board member of certain funds in the Deutsche Bank complex ("DB
Funds"). In connection with his resignation and the resignation of
certain other board members of the DB Funds on July 30, 2002 (the
"Effective Date"), which was part of a restructuring of the boards
overseeing the DB Funds, Deutsche Asset Management, Inc. ("DAMI")
agreed to recommend, and, if necessary obtain, directors and officers
("D&O") liability insurance coverage for the prior board members,
including Dr. Freeman, that is at least as equivalent in scope and
amount to the D&O coverage provided to the prior board members for the
six-year period following the Effective Date. In the event that D&O
insurance coverage is not available in the commercial marketplace on
commercially reasonable terms from a conventional third party insurer,
DeAM reserved the right to provide substantially equivalent protection
in the form of an indemnity or financial guarantee from an affiliate of
DeAM. The D&O policy in effect prior to the Effective Date provided
aggregate coverage of $25,000,000, subject to a $250,000 per claim
deductible.
Board Member Ownership in the Fund
The following table shows the dollar range of equity securities beneficially
owned by each Board Member in the Fund and DWS fund complex as of December 31,
2007.
Aggregate Dollar Range of
Dollar Range of Beneficial Ownership in all Funds Overseen by
Ownership Board Member
Board Member in DWS Money Market Series in the DWS Fund Complex(1)
------------ -------------------------- --------------------------
Independent Board Member:
-------------------------
John W. Ballantine None Over $100,000
Henry P. Becton, Jr. $10,001 - $50,000 Over $100,000
Dawn-Marie Driscoll $10,001 - $50,000 Over $100,000
Keith R. Fox None Over $100,000
Paul K. Freeman None Over $100,000
Kenneth C. Froewiss None Over $100,000
Richard J. Herring None Over $100,000
William McClayton None Over $100,000
Rebecca W. Rimel None Over $100,000
William N. Searcy, Jr. $10,001 - $50,000 Over $100,000
Jean Gleason Stromberg Over $100,000 Over $100,000
Robert H. Wadsworth None Over $100,000
Interested Board Member:
------------------------
Axel Schwarzer None Over $100,000
|
(1) Securities beneficially owned as defined under the 1934 Act include
direct and/or indirect ownership of securities where the Board Member's
economic interest is tied to the securities, employment ownership and
securities when the Board Member can exert voting power, and when the
Board Member has authority to sell the securities. The dollar ranges
are: None, $1-$10,000, $10,001-$50,000, $50,001-$100,000 and over
$100,000.
Ownership in Securities of the Advisor and Related Companies
As reported to the Fund, the information in the following table reflects
ownership by the Independent Board Members and their immediate family members of
certain securities as of December 31, 2007. Immediate family members can be a
spouse, children residing in the same household including step and adoptive
children, and any dependents. The securities represent ownership in the Advisor
or principal underwriter of the Fund and any persons (other than a registered
investment company) directly or indirectly controlling, controlled by, or under
common control with the Advisor or principal underwriter of the Fund (including
Deutsche Bank AG).
Value of Percent of
Owner and Securities on Class on an
Independent Relationship to Title of an Aggregate Aggregate
Board Member Board Member Company Class Basis Basis
------------ ------------ ------- ----- ----- -----
John W. Ballantine None
Henry P. Becton, Jr. None
Dawn-Marie Driscoll None
Keith R. Fox None
Paul K. Freeman None
Kenneth C. Froewiss None
Richard J. Herring None
William McClayton None
Rebecca W. Rimel None
William N. Searcy, Jr. None
Jean Gleason Stromberg None
Robert H. Wadsworth None
|
Securities Beneficially Owned
As of April 8, 2008, the Board Members and officers of the Trust owned, as a
group, less than 1% of the outstanding shares of the Fund.
To the best of the Fund's knowledge, as of April 8, 2008, no person owned of
record or beneficially 5% or more of any class of the Fund's outstanding shares,
except as noted below.
DWS Money Market Series
Name and Address of Investor Ownership Shares % of Total Shares
-------------------------------------- ------ -----------------
STABLE INVESTMENT CORPORATION 1,492,389,174.77 6.9% of Institutional Shares
ATTN RONG WANG
NORTH ST PONGCHENG DIST
BEIJING PR CHINA 100010
MELLON BANK NA 1,437,807,511.86 6.65% of Institutional Shares
PITTSBURGH PA 15258-0001
DEUTSCHE BANK TRUST CO AMERICAS 1,333,911,219.47 6.17% of Institutional Shares
ATTN ROBERT L BOHAN
TOTOWA NJ 07512-2564
WILMINGTON TRUST COMPANY 310,033,736.37 47.1% of Managed Shares
ATTN MUTUAL FUNDS
WILMINGTON DE 19890-0001
HARE & CO 76,963,007.61 11.69% of Managed Shares
SPECIAL PROCESSING DEPT
ATTN STIF DEPT
EAST SYRACUSE NY 13057-1382
KNOTFLOAT & CO 76,683,850.96 11.65% of Managed Shares
C/O STATE STREET BANK
QUINCY MA 02169-0938
TURTLE & CO 60,024,391.04 9.12% of Managed Shares
SWEEP
C/O STATE STREET BANK & TRUST
BOSTON MA 02206-5489
|
Agreement to Indemnify Independent Trustees for Certain Expenses
In connection with litigation or regulatory action related to possible improper
market timing or other improper trading activity or possible improper marketing
and sales activity in certain DWS Funds (the "Affected Funds"), DIMA has agreed
to indemnify and hold harmless the Affected Funds ("Fund Indemnification
Agreement") against any and all loss, damage, liability and expense, arising
from market timing or marketing and sales matters alleged in any enforcement
actions brought by governmental authorities involving or potentially affecting
the Affected Funds or DIMA ("Enforcement Actions") or that are the basis for
private actions brought by shareholders of the Affected Funds against the
Affected Funds, their directors and officers, DIMA and/or certain other parties
("Private Litigation"), or any proceedings or actions that may be threatened or
commenced in the future by any person (including governmental authorities),
arising from or similar to the matters alleged in the Enforcement Actions or
Private Litigation. In recognition of its undertaking to indemnify the Affected
Funds and in light of the rebuttable presumption generally afforded to
independent directors/trustees of investment companies that they have not
engaged in disabling conduct, DIMA has also agreed, subject to applicable law
and regulation, to indemnify certain (or, with respect to certain Affected
Funds, all) of the Independent Trustees of the Affected Funds, against certain
liabilities the Independent Trustees may incur from the matters alleged in any
Enforcement Actions or Private Litigation or arising from or similar to the
matters alleged in the Enforcement Actions or Private Litigation, and advance
expenses that may be incurred by the Independent Trustees in connection with any
Enforcement Actions or Private Litigation. DIMA is not, however, required to
provide indemnification and advancement of expenses: (1) with respect to any
proceeding or action which the Affected Funds' Board determines that the
Independent Trustees ultimately would not be entitled to indemnification or (2)
for any liability of the Independent Trustees to the Funds or their shareholders
to which the Independent Trustee would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of the
Independent Trustee's duties as a director or trustee of the Affected Funds as
determined in a final adjudication in such action or proceeding. The estimated
amount of any expenses that may be advanced to the Independent Trustees or
indemnity that may be payable under the indemnity agreements is currently
unknown. These agreements by DIMA will survive the termination of the investment
management agreements between DIMA and the Affected Funds.
TRUST ORGANIZATION
The Trustees have the authority to create additional Funds and to designate the
relative rights and preferences as between the different Funds. The Trustees
also may authorize the division of shares of a Fund into different classes,
which may bear different expenses. All shares issued and outstanding are fully
paid and non-assessable, transferable, have no pre-emptive or conversion rights
and are redeemable as described in the SAI and in the Fund's prospectus. Each
share has equal rights with each other share of the same class of the Fund as to
voting, dividends, exchanges, conversion features and liquidation. Shareholders
are entitled to one vote for each full share held and fractional votes for
fractional shares held. The Trustees may also terminate any Fund or class by
notice to the shareholders without shareholder approval. Currently, Prime
Reserve Class S, Premium Class S, Institutional Shares and Managed Shares are
offered.
Each Trustee serves until the next meeting of shareholders, if any, called for
the purpose of electing Trustees and until the election and qualification of a
successor or until such Trustee sooner dies, resigns, retires or is removed.
Any of the Trustees may be removed (provided the aggregate number of Trustees
after such removal shall not be less than one) with cause, by the action of
two-thirds of the remaining Trustees. Any Trustee may be removed at any meeting
of shareholders by vote of two-thirds of the outstanding shares. The Trustees
shall promptly call a meeting of the shareholders for the purpose of voting upon
the question of removal of any such Trustee or Trustees when requested in
writing to do so by the holders of not less than ten percent of the outstanding
shares, and in that connection, the Trustees will assist shareholder
communications to the extent provided for in Section 16(c) under the 1940 Act.
The Trust is a Massachusetts business trust organized under the laws of
Massachusetts and is governed by an Amended and Restated Declaration of Trust
that was approved by shareholders in 2006, as may be further amended from time
to time (the "Declaration of Trust"). All shares issued and outstanding are
fully paid and non-assessable, transferable, have no pre-emptive or conversion
rights (except as may be determined by the Board of Trustees) and are redeemable
as described in the SAI and a Fund's prospectus. Each share has equal rights
with each other share of the same class of the Fund as to voting, dividends,
exchanges, conversion features and liquidation. Shareholders are entitled to one
vote for each full share held and fractional votes for fractional shares held.
The Fund generally is not required to hold meetings of its shareholders. Under
the Declaration of Trust, however, shareholder meetings will be held in
connection with the following matters to the extent and as provided in the
Declaration of Trust and as required by applicable law: (a) the election or
removal of trustees if a meeting is called for such purpose; (b) the termination
of the Trust or a Fund; (c) an amendment of the Declaration of Trust; and (d)
such additional matters as may be required by law or as the Trustees may
determine to be necessary or desirable. Shareholders also vote upon changes in
fundamental policies or restrictions.
The Declaration of Trust provides that shareholder meeting quorum requirements
shall be established in the Trust's By-laws. The By-laws currently in effect
provide that the presence in person or by proxy of the holders of thirty percent
of the shares entitled to vote at a meeting (or of an individual series or class
if required to vote separately) shall constitute a quorum for the transaction of
business at meetings of shareholders of the Trust.
On any matter submitted to a vote of shareholders, all shares of the Trust
entitled to vote shall, except as otherwise provided in the Trust's By-Laws, be
voted in the aggregate as a single class without regard to series or classes of
shares, except (a) when required by applicable law or when the Trustees shall
have determined that the matter affects one or more series or classes of shares
materially differently, shares shall be voted by individual series or class; and
(b) when the Trustees have determined that the matter affects only the interests
of one or more series or classes, only shareholders of such series or classes
shall be entitled to vote thereon.
The Declaration of Trust provides that the Board of Trustees may, in its
discretion, establish minimum investment amounts for shareholder accounts,
impose fees on accounts that do not exceed a minimum investment amount and
involuntarily redeem shares in any such account in payment of such fees. The
Board of Trustees, in its sole discretion, also may cause the Trust to redeem
all of the shares of the Trust or one or more series or classes held by any
shareholder for any reason, to the extent permissible by the 1940 Act, including
(a) if the shareholder owns shares having an aggregate net asset value of less
than a specified minimum amount, (b) if a particular shareholder's ownership of
shares would disqualify a series from being a regulated investment company, (c)
upon a shareholder's failure to provide sufficient identification to permit the
Trust to verify the shareholder's identity, (d) upon a shareholder's failure to
pay for shares or meet or maintain the qualifications for ownership of a
particular class or series of shares, (e) if the Board of Trustees determines
(or pursuant to policies established by the Board it is determined) that share
ownership by a particular shareholder is not in the best interests of remaining
shareholders, (f) when a Fund is requested or compelled to do so by governmental
authority or applicable law and (g) upon a shareholder's failure to comply with
a request for information with respect to the direct or indirect ownership of
shares of the Trust. The Declaration of Trust also authorizes the Board of
Trustees to terminate a Fund or any class without shareholder approval, and the
Trust may suspend the right of shareholders to require the Trust to redeem
shares to the extent permissible under the 1940 Act.
Upon the termination of the Trust or any series, after paying or adequately
providing for the payment of all liabilities which may include the establishment
of a liquidating trust or similar vehicle, and upon receipt of such releases,
indemnities and refunding agreements as they deem necessary for their
protection, the Trustees may distribute the remaining Trust property or property
of the series, in cash or in kind or partly each, to the shareholders of the
Trust or the series involved, ratably according to the number of shares of the
Trust or such series held by the several shareholders of the Trust or such
series on the date of termination, except to the extent otherwise required or
permitted by the preferences and special or relative rights and privileges of
any classes of shares of a series involved, provided that any distribution to
the shareholders of a particular class of shares shall be made to such
shareholders pro rata in proportion to the number of shares of such class held
by each of them. The composition of any such distribution (e.g., cash,
securities or other assets) shall be determined by the Trust in its sole
discretion, and may be different among shareholders (including differences among
shareholders in the same series or class).
Under Massachusetts law, shareholders of a Massachusetts business trust could,
under certain circumstances, be held personally liable for obligations of a
Fund. The Declaration of Trust, however, disclaims shareholder liability for
acts or obligations of the Fund and requires that notice of such disclaimer be
given in each agreement, obligation, or instrument entered into or executed by
the Fund or the Fund's trustees. Moreover, the Declaration of Trust provides for
indemnification out of Fund property for all losses and expenses of any
shareholder held personally liable for the obligations of the Fund and the Fund
may be covered by insurance which the Trustees consider adequate to cover
foreseeable tort claims. Thus, the risk of a shareholder incurring financial
loss on account of shareholder liability is considered by the Advisor remote and
not material, since it is limited to circumstances in which a disclaimer is
inoperative and the Fund itself is unable to meet its obligations.
Cash Management Portfolio (prior to February 6, 2006 known as Scudder Cash
Management Portfolio and prior to May 16, 2003 known as Cash Management
Portfolio) was organized as a master trust fund under the laws of the State of
New York. Cash Management Portfolio's Declaration of Trust provides that the
Fund and other entities investing in the Portfolio (e.g., other investment
companies, insurance company separate accounts and common and commingled trust
funds) will each be liable for all obligations of the Portfolio. However, the
risk of the Fund incurring financial loss on account of such liability is
limited to circumstances in which both inadequate insurance existed and the
Portfolio itself was unable to meet its obligations. Accordingly, the Trustees
of the Trust believe that neither the Fund nor its shareholders will be
adversely affected by reason of the Fund's investing in the Portfolio. Whenever
the Trust is requested to vote on a matter pertaining to the Portfolio, the
Trust will vote its shares without a meeting of shareholders of the Fund if the
proposal is one, in which made with respect to the Fund, would not require the
vote of shareholders of the Fund as long as such action is permissible under
applicable statutory and regulatory requirements. In addition, whenever the
Trust is requested to vote on matters pertaining to the fundamental policies of
the Portfolio, the Trust will hold a meeting of the Fund's shareholders and will
cast its vote as instructed by the Fund's shareholders. The percentage of the
Trust's votes representing Fund shareholders not voting will be voted by the
Trustees of the Trust in the same proportion as the Fund shareholders who do, in
fact, vote. For all other matters requiring a vote, the Trust will hold a
meeting of shareholders of the Fund and, at the meeting of investors in the
Portfolio, the Trust will cast all of its votes in the same proportion as the
votes of the Portfolio's shareholders even if all Portfolio shareholders did not
vote. Even if the Portfolio votes all its shares at the Portfolio meeting, other
investors with a greater pro rata ownership of the Portfolio could have
effective voting control of the operations of the Portfolio.
PROXY VOTING GUIDELINES
The Portfolio has delegated proxy voting responsibilities to its investment
advisor, subject to the Board's general oversight. The Portfolio has delegated
proxy voting to the Advisor with the direction that proxies should be voted
consistent with the Portfolio's best economic interests. The Advisor has adopted
its own Proxy Voting Policies and Procedures ("Policies"), and Proxy Voting
Guidelines ("Guidelines") for this purpose. The Policies address, among other
things, conflicts of interest that may arise between the interests of the
Portfolio, and the interests of the Advisor and its affiliates, including the
Fund's principal underwriter. The Guidelines set forth the Advisor's general
position on various proposals, such as:
o Shareholder Rights -- The Advisor generally votes against proposals
that restrict shareholder rights.
o Corporate Governance -- The Advisor generally votes for confidential
and cumulative voting and against supermajority voting requirements for
charter and bylaw amendments. The Advisor generally votes for proposals
to restrict a chief executive officer from serving on more than three
outside boards of directors. The Advisor generally votes against
proposals that require a company to appoint a Chairman who is an
independent director.
o Anti-Takeover Matters -- The Advisor generally votes for proposals that
require shareholder ratification of poison pills or that request boards
to redeem poison pills, and votes against the adoption of poison pills
if they are submitted for shareholder ratification. The Advisor
generally votes for fair price proposals.
o Compensation Matters -- The Advisor generally votes for executive cash
compensation proposals, unless they are unreasonably excessive. The
Advisor generally votes against stock option plans that do not meet the
Advisor's criteria.
o Routine Matters -- The Advisor generally votes for the ratification of
auditors, procedural matters related to the annual meeting and changes
in company name, and against bundled proposals and adjournment.
The general provisions described above do not apply to investment companies. The
Advisor generally votes proxies solicited by investment companies in accordance
with the recommendations of an independent third party, except for proxies
solicited by or with respect to investment companies for which the Advisor or an
affiliate serves as investment advisor or principal underwriter ("affiliated
investment companies"). The Advisor votes affiliated investment company proxies
in the same proportion as the vote of the investment company's other
shareholders (sometimes called "mirror" or "echo" voting). Master fund proxies
solicited from feeder funds are voted in accordance with applicable requirements
of the Investment Company Act of 1940.
Although the Guidelines set forth the Advisor's general voting positions on
various proposals, the Advisor may, consistent with the Portfolio's best
interests, determine under some circumstances to vote contrary to those
positions.
The Guidelines on a particular issue may or may not reflect the view of
individual members of the Board or of a majority of the Board. In addition, the
Guidelines may reflect a voting position that differs from the actual practices
of the public companies within the Deutsche Bank organization or of the
investment companies for which the Advisor or an affiliate serves as investment
advisor or sponsor.
The Advisor may consider the views of a portfolio company's management in
deciding how to vote a proxy or in establishing general voting positions for the
Guidelines, but management's views are not determinative.
As mentioned above, the Policies describe the way in which the Advisor resolves
conflicts of interest. To resolve conflicts, the advisor, under normal
circumstances, votes proxies in accordance with its Guidelines. If the Advisor
departs from the Guidelines with respect to a particular proxy or if the
Guidelines do not specifically address a certain proxy proposal, a proxy voting
committee established by the advisor will vote the proxy. Before voting any such
proxy, however, the Advisor's conflicts review committee will conduct an
investigation to determine whether any potential conflicts of interest exist in
connection with the particular proxy proposal. If the conflicts review committee
determines that the Advisor has a material conflict of interest, or certain
individuals on the proxy voting committee should be recused from participating
in a particular proxy vote, it will inform the proxy voting committee. If
notified that the Advisor has a material conflict, or fewer than three voting
members are eligible to participate in the proxy vote, typically the Advisor
will engage an independent third party to vote the proxy or follow the proxy
voting recommendations of an independent third party.
Under certain circumstances, the Advisor may not be able to vote proxies or the
Advisor may find that the expected economic costs from voting outweigh the
benefits associated with voting. For example, the Advisor may not vote proxies
on certain foreign securities due to local restrictions or customs. The Advisor
generally does not vote proxies on securities subject to share blocking
restrictions.
You may obtain information about how a Fund voted proxies related to its
portfolio securities during the 12-month period ended June 30 by visiting the
Securities and Exchange Commission's Web site at www.sec.gov or by visiting our
Web site at: www.dws-scudder.com (click on "proxy voting" at the bottom of the
page).
FINANCIAL STATEMENTS
The financial statements, including the portfolio of investments, of DWS Money
Market Trust, together with the Report of Independent Registered Public
Accounting Firm, Financial Highlights and notes to financial statements in the
Annual Report to the Shareholders of the Fund dated December 31, 2007 are
incorporated herein by reference and are hereby deemed to be a part of this
combined Statement of Additional Information.
ADDITIONAL INFORMATION
The CUSIP number of the DWS Prime Reserve Class S is 23337T607.
The CUSIP number of the DWS Premium Class S is 23337T409.
The CUSIP number of the DWS Institutional Shares is 23337T201.
The CUSIP number of the DWS Managed Shares is 23337T102.
The Fund has a fiscal year end of December 31, ______.
On June 7, 2007, the Trust's Board of Trustees approved a change in the Fund's
fiscal year end from May 31 to December 31, effective December 31, 2007.
Information enumerated below is provided at the Fund level.
The Fund, on behalf of its Managed Shares, may enter into arrangements with
banks and other institutions which are omnibus account holders of shares of the
Managed Shares class providing for the payment of fees to the institution for
servicing and maintaining accounts of beneficial owners of the omnibus account.
Such payments are expenses of the Managed Shares class only.
The Fund's Prospectus and this Statement of Additional Information omit certain
information contained in the Registration Statement and its amendments which the
Trust has filed with the SEC under the Securities Act of 1933 and reference is
hereby made to the Registration Statement for further information with respect
to the Trust and the securities offered hereby. The Registration Statement and
its amendments are available for inspection by the public at the SEC in
Washington, D.C.
APPENDIX
The following is a description of the ratings given by Moody's, S&P and Fitch to
corporate and municipal bonds, corporate and municipal commercial paper and
municipal notes.
Corporate and Municipal Bonds
Moody's: The four highest ratings for corporate and municipal bonds are "Aaa,"
"Aa," "A" and "Baa." Bonds rated "Aaa" are judged to be of the "best quality"
and carry the smallest degree of investment risk. Bonds rated "Aa" are of "high
quality by all standards," but margins of protection or other elements make
long-term risks appear somewhat greater than "Aaa" rated bonds. Bonds rated "A"
possess many favorable investment attributes and are considered to be upper
medium grade obligations. Bonds rated "Baa" are considered to be medium grade
obligations, neither highly protected nor poorly secured. Moody's applies
numerical modifiers 1, 2 and 3 in each rating category from "Aa" through "Baa"
in its rating system. The modifier 1 indicates that the security ranks in the
higher end of the category; the modifier 2 indicates a mid-range ranking; and
the modifier 3 indicates that the issue ranks in the lower end.
S&P: The four highest ratings for corporate and municipal bonds are "AAA," "AA,"
"A" and "BBB." Bonds rated "AAA" have the highest ratings assigned by S&P and
have an extremely strong capacity to pay interest and repay principal. Bonds
rated "AA" have a "very strong capacity to pay interest and repay principal" and
differ "from the higher rated issues only in small degree." Bonds rated "A" have
a "strong capacity" to pay interest and repay principal, but are "somewhat more
susceptible to" adverse effects of changes in economic conditions or other
circumstances than bonds in higher rated categories. Bonds rated "BBB" are
regarded as having an "adequate capacity" to pay interest and repay principal,
but changes in economic conditions or other circumstances are more likely to
lead a "weakened capacity" to make such payments. The ratings from "AA" to "BBB"
may be modified by the addition of a plus or minus sign to show relative
standing within the category.
Fitch: The four highest ratings of Fitch for corporate and municipal bonds are
"AAA," "AA," "A" and "BBB." Bonds rated "AAA" are considered to be
investment-grade and of the highest credit quality. The obligor has an
exceptionally strong ability to pay interest and repay principal, which is
unlikely to be affected by reasonably foreseeable events. Bonds rated "AA" are
considered to be investment grade and of very high credit quality. The obligor's
ability to pay interest and repay principal is very strong, although not quite
as strong as bonds rated "AAA." Because bonds rated in the "AAA" and "AA"
categories are not significantly vulnerable to foreseeable future developments,
short-term debt of these issuers is generally rated "F1+." Bonds rated "A" are
considered to be investment grade and of high credit quality. The obligor's
ability to pay interest and repay principal is considered to be strong, but may
be more vulnerable to adverse changes in economic conditions and circumstances
than bonds with higher rates. Bonds rated "BBB" are considered to be investment
grade and of satisfactory credit quality. The obligor's ability to pay interest
and repay principal is considered to be adequate. Adverse changes in economic
conditions and circumstances, however, are more likely to have adverse effects
on these bonds, and therefore impair timely payment. The likelihood that the
ratings of these bonds will fall below investment grade is higher than for bonds
with greater ratings.
Corporate and Municipal Commercial Paper
Moody's: The highest rating for corporate and municipal commercial paper is
"P-1" (Prime-1). Issuers rated "P-1" have a "superior ability for repayment of
senior short-term obligations."
S&P: The "A-1" rating for corporate and municipal commercial paper indicates
that the "degree of safety regarding timely payment is strong." Commercial paper
with "overwhelming safety characteristics" will be rated "A-1+."
Fitch: The rating "F-1" is the highest rating assigned by Fitch. Among the
factors considered by Fitch in assigning this rating are: (1) the issuer's
liquidity; (2) its standing in the industry; (3) the size of its debt; (4) its
ability to service its debt; (5) its profitability; (6) its return on equity;
(7) its alternative sources of financing; and (8) its ability to access the
capital markets. Analysis of the relative strength or weakness of these factors
and others determines whether an issuer's commercial paper is rated "F-1."
Municipal Notes
Moody's: The highest ratings for state and municipal short-term obligations are
"MIG 1," "MIG 2," and "MIG 3" (or "VMIG 1," "VMIG 2" and "VMIG 3" in the case of
an issue having a variable rate demand feature). Notes rated "MIG 1" or "VMIG 1"
are judged to be of the "best quality." Notes rated "MIG 2" or "VMIG 2" are of
"high quality," with margins or protection "ample although not as large as in
the preceding group." Notes rated "MIG 3" or "VMIG 3" are of "favorable
quality," with all security elements accounted for but lacking the strength of
the preceding grades.
S&P: The "SP-1" rating reflects a "very strong or strong capacity to pay
principal and interest." Notes issued with "overwhelming safety characteristics"
will be rated "SP-1+." The "SP-2" rating reflects a "satisfactory capacity" to
pay principal and interest.
Fitch: The highest ratings for state and municipal short-term obligations are
"F-1+," "F-1" and "F-2."
PART C. OTHER INFORMATION
Item 23. Exhibits
-------- --------
(a) (1) Amended and Restated Declaration of Trust, dated June 27, 2006.
(Incorporated by reference to Post-Effective Amendment No. 42 to the Registrant's
Registration Statement.)
(2) Amended and Restated Designation of Series and Classes of Shares of Beneficial Interest,
dated June 27, 2006, with respect to DWS Money Market Trust.
(Incorporated by reference to Post-Effective Amendment No. 42 to the Registrant's
Registration Statement.)
(b) (1) By-laws of the Registrant dated June 27, 2006.
(Incorporated by reference to Post-Effective Amendment No. 42 to the Registrant's
Registration Statement.)
(c) Inapplicable.
(d) (1) Amended and Restated Investment Management Agreement, dated June 1, 2006 and as
revised as of February 14, 2007, between the Registrant and Deutsche Investment
Management Investment Management Americas Inc.
(Incorporated by reference to Post-Effective Amendment No. 43 to the Registrant's
Registration Statement.)
(e) (1) Underwriting Agreement between the Registrant and Scudder Distributors, Inc., dated
September 30, 2002.
(Incorporated by reference to Post-Effective Amendment No. 37 to the Registration
Statement.)
(f) Inapplicable.
(g) (1) Master Custodian Agreement with State Street Bank and Trust Company, dated March 22,
2007.
(Incorporated by reference to Post-Effective Amendment No. 43 to the Registrant's
Registration Statement.)
(h) (1) Letter of Indemnity to the Scudder Funds dated October 13, 2004.
(Incorporated by reference to Post-Effective Amendment No. 41 to the Registration
Statement.)
(2) Letter of Indemnity to the Independent Trustees dated October 13, 2004.
(Incorporated by reference to Post-Effective Amendment No. 41 to the Registration
Statement.)
(3) Administrative Service Agreement, dated June 1, 2006, as revised October 1, 2007.
(Filed herein.)
(4) Transfer Agency and Service Agreement between the Registrant and DWS Scudder Investments
Service Company dated June 1, 2006.
(Incorporated by reference to Post-Effective Amendment No. 42 to the Registrant's
Registration Statement.)
(5) Form of Mutual Fund Rule 22c-2 Information Sharing Agreement between DWS Scudder
Distributors, Inc. and certain financial intermediaries.
(Incorporated by reference to Post-Effective Amendment No. 43 to the Registrant's
Registration Statement.)
2
|
(6) Form of Expense Limitation Agreement, dated October 1, 2007, between the Registrant
and Deutsche Investment Management Americas Inc. (Filed herein.)
(i) Legal Opinion and Consent of Counsel.
(Incorporated by reference to Post-Effective Amendment No. 37 to the Registration
Statement.)
(j) Consent of Independent Registered Public Accounting Firm. (Filed herein.)
(k) Inapplicable.
(l) Inapplicable.
(m) Inapplicable.
(n) (1) Multi-Distribution Plan pursuant to Rule 18f-3.
(Incorporated by reference to Post-Effective Amendment No. 25 Exhibit (o) to the
Registrant's Registration Statement.)
(2) Plan with respect to Scudder Money Market Trust pursuant to Rule 18f-3.
(Incorporated by reference to Post-Effective Amendment No. 35 to the Registrant's
Registration Statement.)
(p) (1) Code of Ethics for Deutsche Asset Management - U.S., effective January 1, 2008.
(Filed herein.)
(2) Consolidated Fund Code of Ethics (All Funds).
(Incorporated by reference to Post-Effective Amendment No. 41 to the Registration
Statement.)
|
Item 24. Persons Controlled by or under Common Control with Registrant
None
Item 25. Indemnification
Article IV of the Registrant's Agreement and Declaration of
Trust (Exhibit (a)(17) hereto, which is incorporated herein by
reference) provides in effect that the Registrant will
indemnify its officers and trustees under certain
circumstances. However, in accordance with Section 17(h) and
17(i) of the Investment Company Act of 1940 and its own terms,
said Article of the Agreement and Declaration of Trust does
not protect any person against any liability to the Registrant
or its shareholders to which such Trustee would otherwise be
subject by reason of willful misfeasance, bad faith, gross
negligence, or reckless disregard of the duties involved in
the conduct of his or her office.
The Registrant has purchased insurance policies insuring its
officers and trustees against certain liabilities which such
officers and trustees may incur while acting in such
capacities and providing reimbursement to the Registrant for
sums which it may be permitted or required to pay to its
officers and trustees by way of indemnification against such
liabilities, subject to certain deductibles.
On April 5, 2002, Zurich Scudder Investments, Inc.
("Scudder"), the investment adviser, now known as Deutsche
Investment Management Americas Inc., was acquired by Deutsche
Bank AG, not including certain U.K. Operations (the
"Transaction"). In connection with the Trustees' evaluation of
the Transaction, Deutsche Bank agreed to indemnify, defend and
hold harmless Registrant and the trustees who were not
"interested persons" of Scudder, Deutsche Bank or Registrant
(the "Independent Trustees") for and against any liability and
claims and expenses based upon or arising from, whether in
3
whole or in part, or directly or indirectly, any untrue
statement or alleged untrue statement of a material fact made
to the Independent Trustees by Deutsche Bank in connection
with the Independent Trustees' consideration of the
Transaction, or any omission or alleged omission of a material
fact necessary in order to make statements made, in light of
the circumstances under which they were made, not misleading.
Deutsche Investment Management Americas Inc. (hereafter,
"DIMA"), the investment advisor, has agreed, subject to
applicable law and regulation, to indemnify and hold harmless
the Registrant against any loss, damage, liability and
expense, including, without limitation, the advancement and
payment, as incurred, of reasonable fees and expenses of
counsel (including counsel to the Registrant and counsel to
the Independent Trustees) and consultants, whether retained by
the Registrant or the Independent Trustees, and other
customary costs and expenses incurred by the Registrant in
connection with any litigation or regulatory action related to
possible improper market timing or other improper trading
activity or possible improper marketing and sales activity in
the Registrant ("Private Litigation and Enforcement Actions").
In the event that this indemnification is unavailable to the
Registrant for any reason, then DIMA has agreed to contribute
to the amount paid or payable by the Registrant as a result of
any loss, damage, liability or expense in such proportion as
is appropriate to reflect the relative fault of DIMA and the
Registrant with respect to the matters which resulted in such
loss, damage, liability or expense, as well as any other
relevant equitable considerations; provided, that if no final
determination is made in such action or proceeding as to the
relative fault of DIMA and the Registrant, then DIMA shall pay
the entire amount of such loss, damage, liability or expense.
In recognition of its undertaking to indemnify the Registrant,
and in light of the rebuttable presumption generally afforded
to non-interested board members of an investment company that
they have not engaged in disabling conduct, DIMA has also
agreed, subject to applicable law and regulation, to indemnify
and hold harmless each of the Independent Trustees against any
and all loss, damage, liability and expense, including without
limitation the advancement and payment as incurred of
reasonable fees and expenses of counsel and consultants, and
other customary costs and expenses incurred by the Independent
Trustees, arising from the matters alleged in any Private
Litigation and Enforcement Actions or matters arising from or
similar in subject matter to the matters alleged in the
Private Litigation and Enforcement Actions (collectively,
"Covered Matters"), including without limitation:
1. all reasonable legal and other expenses incurred by
the Independent Trustees in connection with the
Private Litigation and Enforcement Actions, and any
actions that may be threatened or commenced in the
future by any person (including any governmental
authority), arising from or similar to the matters
alleged in the Private Litigation and Enforcement
Actions, including without limitation expenses
related to the defense of, service as a witness in,
or monitoring of such proceedings or actions;
2. all liabilities and reasonable legal and other
expenses incurred by any Independent Trustee in
connection with any judgment resulting from, or
settlement of, any such proceeding, action or matter;
3. any loss or reasonable legal and other expenses
incurred by any Independent Trustee as a result of
the denial of, or dispute about, any insurance claim
under, or actual or purported rescission or
termination of, any policy of insurance arranged by
DIMA (or by a representative of DIMA acting as such,
acting as a representative of the Registrant or of
the Independent Trustees or acting otherwise) for the
benefit of the Independent Trustee, to the extent
that such denial, dispute or rescission is based in
whole or in part upon any alleged misrepresentation
made in the application for such policy or any other
alleged improper conduct on the part of DIMA, any of
its corporate affiliates, or any of their directors,
officers or employees;
4
4. any loss or reasonable legal and other expenses
incurred by any Independent Trustee, whether or not
such loss or expense is incurred with respect to a
Covered Matter, which is otherwise covered under the
terms of any specified policy of insurance, but for
which the Independent Trustee is unable to obtain
advancement of expenses or indemnification under that
policy of insurance, due to the exhaustion of policy
limits which is due in whole or in part to DIMA or
any affiliate thereof having received advancement of
expenses or indemnification under that policy for or
with respect to any Covered Matter; provided, that
the total amount that DIMA will be obligated to pay
under this provision for all loss or expense shall
not exceed the amount that DIMA and any of its
affiliates actually receive under that policy of
insurance for or with respect to any and all Covered
Matters; and
5. all liabilities and reasonable legal and other
expenses incurred by any Independent Trustee in
connection with any proceeding or action to enforce
his or her rights under the agreement, unless DIMA
prevails on the merits of any such dispute in a
final, nonappealable court order.
DIMA is not required to pay costs or expenses or provide
indemnification to or for any individual Independent Trustee
(i) with respect to any particular proceeding or action as to
which the Board of the Registrant has determined that such
Independent Trustee ultimately would not be entitled to
indemnification with respect thereto, or (ii) for any
liability of the Independent Trustee to the Registrant or its
shareholders to which such Independent Trustee would otherwise
be subject by reason of willful misfeasance, bad faith, gross
negligence, or reckless disregard of the Independent Trustee's
duties as a Trustee of the Registrant as determined in a final
adjudication in such proceeding or action. In addition, to the
extent that DIMA has paid costs or expenses under the
agreement to any individual Independent Trustee with respect
to a particular proceeding or action, and there is a final
adjudication in such proceeding or action of the Independent
Trustee's liability to the Registrant or its shareholders by
reason of willful misfeasance, bad faith, gross negligence, or
reckless disregard of the Independent Trustee's duties as a
Trustee of the Registrant, such Independent Trustee has
undertaken to repay such costs or expenses to DIMA.
Item 26. Business and Other Connections of Investment Advisor
During the last two fiscal years, no director or officer of
Deutsche Investment Management Americas Inc., the investment
advisor, has engaged in any other business, profession,
vocation or employment of a substantial nature other than that
of the business of investment management and, through
affiliates, investment banking.
Item 27. Principal Underwriters
(a)
DWS Scudder Distributors, Inc. acts as principal underwriter
of the Registrant's shares and acts as principal underwriter
for registered open-end management investment companies other
funds managed by Deutsche Investment Management Americas Inc.
5
(b)
Information on the officers and directors of DWS Scudder
Distributors, Inc., principal underwriter for the Registrant,
is set forth below. The principal business address is 222
South Riverside Plaza, Chicago, Illinois 60606.
(1) (2) (3)
DWS Scudder Distributors, Inc.
Name and Principal Positions and Offices with Positions and
Business Address DWS Scudder Distributors, Inc. Offices with Registrant
---------------- ------------------------------ -----------------------
Philipp Hensler Director, Chairman of the Board and None
345 Park Avenue CEO
New York, NY 10154
Michael Colon Director and Chief Operating Officer None
345 Park Avenue
New York, NY 10154
Thomas Winnick Director and President None
345 Park Avenue
New York, NY 10154
Cliff Goldstein Chief Financial Officer and None
60 Wall Street Treasurer
New York, NY 10005
Robert Froehlich Vice President None
222 South Riverside Plaza
Chicago, IL 60606
Paul Schubert Vice President Chief Financial Officer
345 Park Avenue and Treasurer
New York, NY 10154
Mark Perrelli Vice President None
222 South Riverside Plaza
Chicago, IL 60606
Donna White Chief Compliance Officer None
345 Park Avenue
New York, NY 10154
Jason Vazquez Vice President and AML Compliance AML Compliance Officer
345 Park Avenue Officer
New York, NY 10154
Caroline Pearson Secretary Assistant Secretary
Two International Place
Boston, MA 02110
Philip J. Collora Assistant Secretary None
222 South Riverside Plaza
Chicago, IL 60606
6
|
(1) (2) (3)
DWS Scudder Distributors, Inc.
Name and Principal Positions and Offices with Positions and
Business Address DWS Scudder Distributors, Inc. Offices with Registrant
---------------- ------------------------------ -----------------------
Anjie LaRocca Assistant Secretary None
345 Park Avenue
New York, NY 10154
|
(c) Not applicable
Item 28. Location of Accounts and Records
Certain accounts, books and other documents required to be
maintained by Section 31(a) of the 1940 Act and the Rules
promulgated thereunder are maintained by Deutsche Investment
Management Americas Inc., 345 Park Avenue, New York, NY 10154.
Records relating to the duties of the Registrant's custodian
are maintained by State Street Bank and Trust Company, 225
Franklin Street, Boston, Massachusetts, 02110. Records
relating to the duties of the Registrant's transfer agent are
maintained by DWS Scudder Investments Services Company
("DWS-SISC"), 222 South Riverside Plaza, Chicago, IL 60606 and
DST (as sub transfer agent), 811 Main Street, Kansas City, MO,
64105.
Item 29. Management Services
Inapplicable.
Item 30. Undertakings
Inapplicable.
7
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this amendment
to its Registration Statement to be signed on its behalf by the undersigned,
thereto duly authorized, in the City of New York and the State of New York on
the 15th day of April 2008.
DWS MONEY MARKET TRUST
By: /s/Michael G. Clark
____________________________
Michael G. Clark
|
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment to its Registration Statement has been signed below by
the following persons in the capacities and on the dates indicated:
SIGNATURE TITLE DATE
--------- ----- ----
/s/Michael G. Clark
-------------------------------------
Michael G. Clark President April 15, 2008
/s/Paul H. Schubert
-------------------------------------
Paul H. Schubert Chief Financial Officer and Treasurer April 15, 2008
/s/John W. Ballantine
-------------------------------------
John W. Ballantine* Trustee April 15, 2008
/s/Henry P. Becton, Jr.
-------------------------------------
Henry P. Becton, Jr.* Trustee April 15, 2008
/s/Dawn-Marie Driscoll
-------------------------------------
Dawn-Marie Driscoll* Chairperson and Trustee April 15, 2008
/s/Keith R. Fox
-------------------------------------
Keith R. Fox* Trustee April 15, 2008
/s/Paul K. Freeman
-------------------------------------
Paul K. Freeman* Vice Chairperson and Trustee April 15, 2008
/s/Kenneth C. Froewiss
-------------------------------------
Kenneth C. Froewiss* Trustee April 15, 2008
/s/Richard J. Herring
-------------------------------------
Richard J. Herring* Trustee April 15, 2008
/s/William McClayton
-------------------------------------
William McClayton* Trustee April 15, 2008
/s/Rebecca W. Rimel
-------------------------------------
Rebecca W. Rimel* Trustee April 15, 2008
/s/William N. Searcy, Jr.
-------------------------------------
William N. Searcy, Jr.* Trustee April 15, 2008
|
SIGNATURE TITLE DATE
--------- ----- ----
/s/Jean Gleason Stromberg
-------------------------------------
Jean Gleason Stromberg* Trustee April 15, 2008
/s/Robert H. Wadsworth
-------------------------------------
Robert H. Wadsworth* Trustee April 15, 2008
/s/Axel Schwarzer
-------------------------------------
Axel Schwarzer* Trustee April 15, 2008
|
*By: /s/Caroline Pearson
------------------------------
Caroline Pearson**
Assistant Secretary
|
** Attorney-in-fact pursuant to the powers of attorney as filed herein.
2
SIGNATURES
Pursuant to the requirements of the Investment Company Act of 1940, CASH
MANAGEMENT PORTFOLIO has duly caused this Amendment No. 24 to the Registration
Statement on Form N-1A to be signed on its behalf by the undersigned, thereto
duly authorized, in the City of New York and the State of New York on the 15th
day of April 2008.
CASH MANAGEMENT PORTFOLIO
By: /s/ Michael Clark
---------------------------------------
Michael Clark
President
|
DWS MONEY MARKET TRUST
Power of Attorney
KNOW ALL PERSONS BY THESE PRESENTS, that the following persons, whose signatures
appear below, do hereby constitute and appoint Thomas Connors, John Millette and
Caroline Pearson, and each of them, severally, or if more than one acts, a
majority of them, their true and lawful attorney and agent to execute in their
name, place and stead (in such capacity) any and all amendments to enable DWS
MONEY MARKET TRUST (the "Fund") to comply with the Securities Act of 1933, as
amended (the "1933 Act") and the Investment Company Act of 1940, as amended (the
"1940 Act"), and any rules, regulations or requirements of the Securities and
Exchange Commission in respect thereof, in connection with the Fund's
Registration Statement on Form N-1A pursuant to the 1933 Act and the 1940 Act,
together with any and all pre- and post-effective amendments thereto, including
specifically, but without limiting the generality of the foregoing, the power
and authority to sign in the name and on behalf of the undersigned as a trustee
of the Fund such Registration Statement and any and all such pre- and
post-effective amendments filed with the Securities and Exchange Commission
under the 1933 Act and the 1940 Act, and any other instruments or documents
related thereto, and the undersigned does hereby ratify and confirm all that
said attorney-in-fact and agent, or either of them or their substitute or
substitutes, shall lawfully do or cause to be done by virtue hereof.
---------------------------------------------------------- ----------------------------- -----------------------------------
SIGNATURES TITLE DATE
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/John W. Ballantine Trustee April 1, 2008
John W. Ballantine
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Henry P. Becton, Jr. Trustee April 1, 2008
Henry P. Becton, Jr.
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Dawn-Marie Driscoll Trustee April 1, 2008
Dawn-Marie Driscoll
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Keith R. Fox Trustee April 1, 2008
Keith R. Fox
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Paul K. Freeman Trustee April 1, 2008
Paul K. Freeman
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Kenneth C. Froewiss Trustee April 1, 2008
Kenneth C. Froewiss
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Richard J. Herring Trustee April 1, 2008
Richard J. Herring
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/William McClayton Trustee April 1, 2008
William McClayton
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Rebecca W. Rimel Trustee April 1, 2008
Rebecca W. Rimel
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/William N. Searcy, Jr. Trustee April 1, 2008
William N. Searcy, Jr.
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Jean Gleason Stromberg Trustee April 1, 2008
Jean Gleason Stromberg
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Robert H. Wadsworth Trustee April 1, 2008
Robert H. Wadsworth
---------------------------------------------------------- ----------------------------- -----------------------------------
/s/Axel Schwarzer Trustee April 1, 2008
Axel Schwarzer
---------------------------------------------------------- ----------------------------- -----------------------------------
|
File No. 2-78122
File No. 811-3495
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
EXHIBITS
TO
FORM N-1A
POST-EFFECTIVE AMENDMENT NO. 45
TO REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
AND
AMENDMENT NO. 41
TO REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940
DWS MONEY MARKET TRUST
8
DWS MONEY MARKET TRUST
EXHIBIT INDEX
(h)(3)
(h)(6)
(j)
(p)(1)
9
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