DWS Variable NAV Money Fund
Annual Report
to Shareholders
August 31, 2012
Contents
4
Portfolio Management Review
12
Statement of Assets and Liabilities
13
Statement of Operations
14
Statement of Changes in Net Assets
16
Notes to Financial Statements
21
Report of Independent Registered Public Accounting Firm
22
Information About Your Fund's Expenses
24
Summary of Management Fee Evaluation by Independent Fee Consultant
28
Board Members and Officers
33
Account Management Resources
|
This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the fund. Please read the prospectus carefully before you invest.
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks preservation of capital, the net asset value per share of the fund will fluctuate, and you could lose money by investing in the fund. Unlike a traditional money market fund, the fund will not use the amortized cost method of valuation and does not seek to maintain a stable share price of $1.00. As a result, the fund's share price, which is its net asset value per share (NAV), will vary and reflect the effects of unrealized appreciation and depreciation and realized losses and gains.
Money Market investments are subject to interest-rate and credit risks. When interest rates rise, prices generally fall. In addition, any unexpected behavior in interest rates could increase the volatility of the fund's yield and could hurt fund performance. Prepayments could also create capital gain tax liability in some instances. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. 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. Any investments in money market instruments of foreign issuers are subject to some of the risks of foreign investing, such as unfavorable political and legal developments, limited financial information, and regulatory risk and, economic and financial instability. Portfolio management could be wrong in its analysis of industries, companies, economic trends and favor a security that underperforms the market. See the prospectus for details.
DWS Investments is part of Deutsche Bank's Asset Management division and, within the U.S., represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Portfolio Management Review
Market Overview and Fund Performance
All performance information below is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit www.dbadvisorsliquidity.com/US for the fund's most recent month-end performance. The yield quotation more closely reflects the current earnings of the fund rather than the total return quotation. The 7-day current yield refers to the income paid by the fund over a 7-day period expressed as an annual percentage rate of the fund's shares outstanding. Yields fluctuate and are not guaranteed.
For the 12 months ended August 31, 2012, DWS Variable NAV Money Fund posted a total return of 0.26%. The fund's 7-day yield as of August 31, 2012 was 0.28%.
DWS Variable NAV Money Fund seeks to provide a high level of current income consistent with liquidity and the preservation of capital. The fund is managed in accordance with Rule 2a-7 under the Investment Company Act of 1940, as amended, which governs the quality, maturity, diversity and liquidity of instruments in which a money fund may invest.
|
DWS Variable NAV Money Fund invests in high-quality, short-term, U.S.-dollar-denominated money market instruments paying a fixed, variable or floating interest rate.
|
The fund is a money market fund that is designed to serve as a complementary product to traditional stable-value money market funds. Unlike a traditional money market fund, the fund will not use the amortized cost method of valuation and does not seek to maintain a stable share price of $1.00. As a result, the fund's share price, which is its net asset value per share (NAV), varies daily and reflects the effects of unrealized appreciation and depreciation and realized losses and gains.
DWS Variable NAV Money Fund invests in high-quality, short-term, U.S.-dollar-denominated money market instruments paying a fixed, variable or floating interest rate.
Market Overview
Over the fund's most recent 12-month period ended August 31, 2012, money markets continued to respond to alternating degrees of perceived risk in the global financial markets, with short-term rates rising or falling slightly in response to the current state of the European sovereign debt crisis. In late summer 2011, Standard & Poor's decided to downgrade U.S. debt from AAA to AA+. However, the United States' role as a perceived "safe haven" for fixed-income investors worldwide has remained unchanged. During the first quarter of 2012, efforts by the European Central Bank (ECB) to ensure adequate funding access at low rates for the Continent's major banks momentarily reassured investors and led to a rally in global financial markets. However, in May we saw another dramatic "flight to quality," as worries concerning Greece's upcoming elections and continuingly worsening conditions for Spanish and Italian banks led global and domestic investors to abandon risk assets. Toward the close of the period, any negative economic data was overshadowed by investor anticipation of more substantial central bank actions. First, the ECB lowered its interest rate for bank reserves. Then, the head of the ECB, Mario Draghi, stated that the central bank would do "whatever is needed" to preserve the euro. In addition, the fact that Germany has hinted that it may be willing to participate in a European quantitative easing program provided substantial encouragement to investors.
Positive Contributors to Fund Performance
Given ongoing economic and market uncertainty, we continued to hold a large percentage of portfolio assets in short-maturity instruments for yield, high-quality and liquidity purposes. We also maintained a conservative average maturity, with fund assets broadly diversified among a number of sectors, including banks, asset-backed commercial paper, corporate issues, floating rate municipal securities, and sovereign and U.S. government debt. In addition, we focused on more favorable geographical areas for money market investment, such as Canada, Australia, Scandinavia and Japan. Lastly, the fund retained a large cash position in order to solidify its liquidity structure.
Negative Contributors to Fund Performance
Preferring a cautious approach at a time of market uncertainty, we tilted the fund toward securities that tended to have lower yields than issues carrying more risk. While this strategy cost the fund some yield, we believe that it represented a prudent approach to preserving principal.
Outlook and Positioning
Given the ECB's recently stated willingness to be much more proactive in bolstering Europe's banks, we note a more optimistic tone in the short-term fixed-income markets than we have observed in quite some time. We are hopeful that a new quantitative easing plan for the Continent to be introduced over the coming weeks could be a watershed event that turns investment markets in Europe and worldwide in a significantly more positive direction. In the United States, we continue to foresee an artificially low interest-rate environment. Our view is based on a declining money market supply, the principal from a large number of money market issues needing to be reinvested and strong demand from investors seeking principal stability and safety. At present, we believe that the main risk to U.S. growth comes from the impending "fiscal cliff" (significant tax hikes and spending cuts that will occur in early 2013 unless Congress takes action to head them off).
Going forward, we will remain cautious with regard to the fund's duration, and continue to be highly selective when adding credits in longer maturities. We also plan to remain flexible in order to react quickly to any shift in the tone of the investment markets based on the perceived success or failure of anticipated stimulus measures from the European Central Bank.
We insist on the highest credit quality within the fund, and plan to maintain our conservative investment strategies and standards. We continue to apply a careful approach to investing on behalf of the fund and to seek competitive yield for our shareholders.
Portfolio Performance
(as of August 31, 2012)
Performance is historical and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks preservation of capital, the net asset value per share of the fund will fluctuate, and you could lose money by investing in the fund. Unlike a traditional money market fund, the fund does not use the amortized cost method of valuation and does not seek to maintain a stable share price of $1.00. As a result, the fund's share price, which is its net asset value per share (NAV), will vary and reflect the effects of unrealized appreciation and depreciation and realized losses and gains.
|
|
|
7-Day Current Yield
|
|
|
August 31, 2012
|
|
|
.28
|
%
|
Yields are historical, will fluctuate and do not guarantee future performance. The 7-day current yield refers to the income paid by the portfolio over a 7-day period expressed as an annual percentage rate of the fund's shares outstanding. Please call the Service Center at (800) 730-1313 for the fund's most recent month-end performance.
Portfolio Management Team
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.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team's views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
Terms to Know
Duration,
which is expressed in years, measures the sensitivity of the price of a bond or bond fund to a change in interest rates.
Credit quality
measures a bond issuer's ability to repay interest and principal in a timely manner. Rating agencies assign letter designations, such as AAA, AA and so forth. The lower the rating, the higher the probability of default. Credit quality does not remove market risk and is subject to change.
Sovereign debt
is debt that is issued by a national government.
Floating Rate Municipal Securities
have an interest rate that adjusts periodically based on indices such as the Securities Industry and Financial Markets Association Index of Variable Rate Demand Notes. Because the interest rates of these instruments adjust as market conditions change, they provide flexibility in an uncertain interest rate environment. The Securities Industry and Financial Markets Association Index of Variable Rate Demand Notes is a weekly high-grade market index consisting of seven-day, tax-exempt, variable-rate demand notes produced by Municipal Market Data Group. Actual issues are selected from Municipal Market Data's database of more than 10,000 active issues.
Diversification
neither insures a profit nor guarantees against a loss.
Investment Portfolio
as of August 31, 2012
|
|
|
Principal Amount ($)
|
|
|
Value ($)
|
|
|
|
|
|
|
|
Certificates of Deposit and Bank Notes 19.3%
|
|
|
Bank of Tokyo-Mitsubishi UFJ Ltd., 0.33%, 12/4/2012
|
|
|
500,000
|
|
|
|
499,910
|
|
|
Industrial & Commercial Bank of China, 0.28%, 9/19/2012
|
|
|
500,000
|
|
|
|
500,015
|
|
|
Mizuho Corporate Bank Ltd., 0.25%, 9/7/2012
|
|
|
502,000
|
|
|
|
502,005
|
|
|
Natixis, 0.4%, 10/1/2012
|
|
|
529,000
|
|
|
|
528,995
|
|
|
Norinchukin Bank, 0.38%, 11/2/2012
|
|
|
500,000
|
|
|
|
500,000
|
|
|
Svenska Handelsbanken AB, 0.185%, 9/10/2012
|
|
|
500,000
|
|
|
|
500,000
|
|
|
Total Certificates of Deposit and Bank Notes
(Cost $3,031,072)
|
|
|
|
3,030,925
|
|
|
|
|
|
Commercial Paper 45.7%
|
|
|
Issued at Discount*
|
|
|
Autobahn Funding Co., LLC, 144A, 0.5%, 9/14/2012
|
|
|
500,000
|
|
|
|
499,955
|
|
|
Barclays Bank PLC, 0.18%, 9/6/2012
|
|
|
500,000
|
|
|
|
499,985
|
|
|
BHP Billiton Finance (U.S.A.) Ltd., 144A, 0.17%, 10/15/2012
|
|
|
603,000
|
|
|
|
602,795
|
|
|
Erste Abwicklungsanstalt:
|
|
|
0.385%, 9/10/2012
|
|
|
350,000
|
|
|
|
349,975
|
|
|
0.52%, 3/15/2013
|
|
|
250,000
|
|
|
|
249,333
|
|
|
Google, Inc., 0.12%, 10/2/2012
|
|
|
250,000
|
|
|
|
249,970
|
|
|
Illinois Tool Works, Inc., 0.16%, 9/4/2012
|
|
|
701,000
|
|
|
|
700,992
|
|
|
Kells Funding LLC, 144A, 0.58%, 9/20/2012
|
|
|
401,000
|
|
|
|
400,956
|
|
|
Kreditanstalt Fuer Wiederaufbau, 144A, 0.25%, 10/29/2012
|
|
|
500,000
|
|
|
|
499,875
|
|
|
Oversea-Chinese Banking Corp., Ltd., 0.43%, 11/27/2012
|
|
|
501,000
|
|
|
|
500,684
|
|
|
Regency Markets No. 1 LLC, 144A, 0.21%, 9/18/2012
|
|
|
501,000
|
|
|
|
500,945
|
|
|
Siemens Capital Co., LLC, 144A, 0.2%, 9/13/2012
|
|
|
250,000
|
|
|
|
249,985
|
|
|
Societe Generale North America, Inc., 0.16%, 9/4/2012
|
|
|
500,000
|
|
|
|
499,992
|
|
|
Standard Chartered Bank, 0.33%, 10/1/2012
|
|
|
600,000
|
|
|
|
599,874
|
|
|
Straight-A Funding LLC, 144A, 0.18%, 10/4/2012
|
|
|
294,000
|
|
|
|
293,953
|
|
|
White Point Funding, Inc., 144A, 0.51%, 11/19/2012
|
|
|
500,000
|
|
|
|
499,665
|
|
|
Total Commercial Paper
(Cost $7,198,307)
|
|
|
|
7,198,934
|
|
|
|
|
|
Short-Term Notes 4.8%
|
|
|
Bank of Nova Scotia, 0.39%, 11/9/2012
|
|
|
500,000
|
|
|
|
500,080
|
|
|
Rabobank Nederland NV, 144A, 0.593%, 1/22/2013
|
|
|
250,000
|
|
|
|
249,913
|
|
|
Total Short-Term Notes
(Cost $750,116)
|
|
|
|
749,993
|
|
|
|
|
|
Municipal Investments 14.5%
|
|
|
Harris County, TX, Cultural Education Facilities Finance Corp., Special Facilities Revenue, Texas Medical Center, Series B-2, 0.18%**, 9/1/2031, LOC: JPMorgan Chase & Co.
|
|
|
335,000
|
|
|
|
335,000
|
|
|
Illinois, State Finance Authority Industrial Development Revenue, Fitzpatrick Brothers, Inc., 0.17%**, 4/1/2033, LOC: Northern Trust Co.
|
|
|
200,000
|
|
|
|
200,000
|
|
|
Nuveen Premier Income Municipal Fund 2, Inc., Series 1-4895, 144A, AMT, 0.29%**, 5/5/2041, LIQ: Barclays Bank PLC
|
|
|
500,000
|
|
|
|
500,000
|
|
|
Pennsylvania, State Economic Development Financing Authority Revenue, NHS-AVS LLC, 0.19%**, 12/1/2038, LOC: TD Bank NA
|
|
|
305,000
|
|
|
|
305,000
|
|
|
Port Authority of New York & New Jersey, Series ZZ, 1.0%, 12/1/2012
|
|
|
550,000
|
|
|
|
550,946
|
|
|
San Jose, CA, Financing Authority Lease Revenue, 0.5%, 9/18/2012
|
|
|
400,000
|
|
|
|
400,008
|
|
|
Total Municipal Bonds and Notes
(Cost $2,290,953)
|
|
|
|
2,290,954
|
|
|
|
|
|
Government & Agency Obligations 8.4%
|
|
|
U.S. Treasury Obligations
|
|
|
U.S. Treasury Bills:
|
|
|
|
|
|
|
|
|
|
0.087%*, 10/18/2012
|
|
|
102,000
|
|
|
|
101,990
|
|
|
0.13%, 9/17/2012
|
|
|
250,000
|
|
|
|
249,991
|
|
|
U.S. Treasury Notes:
|
|
|
0.625%, 2/28/2013
|
|
|
100,000
|
|
|
|
100,231
|
|
|
1.375%, 10/15/2012
|
|
|
200,000
|
|
|
|
200,281
|
|
|
1.375%, 1/15/2013
|
|
|
175,000
|
|
|
|
175,779
|
|
|
2.875%, 1/31/2013
|
|
|
485,000
|
|
|
|
490,343
|
|
|
Total Government & Agency Obligations
(Cost $1,318,710)
|
|
|
|
1,318,615
|
|
|
|
|
|
Repurchase Agreements 7.3%
|
|
|
BNP Paribas, 0.2%, dated 8/31/2012, to be repurchased at $1,152,982 on 9/4/2012 (a) (Cost $1,152,956)
|
|
|
1,152,956
|
|
|
|
1,152,956
|
|
|
|
|
% of Net Assets
|
|
|
Value ($)
|
|
|
|
|
|
|
|
Total Investment Portfolio
(Cost $15,742,114)
†
|
|
|
100.0
|
|
|
|
15,742,377
|
|
|
Other Assets and Liabilities, Net
|
|
|
0.0
|
|
|
|
(3,318
|
)
|
|
Net Assets
|
|
|
100.0
|
|
|
|
15,739,059
|
|
* Annualized yield at time of purchase; not a coupon rate.
** Variable rate demand notes and variable rate demand preferred shares are securities whose interest rates are reset periodically at market levels. These securities are payable on demand and are shown at their current rates as of August 31, 2012.
†
The cost for federal income tax purposes was $15,742,114. At August 31, 2012, net unrealized appreciation for all securities based on tax cost was $263. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $834 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $571.
(a) Collateralized by $1,072,642 Federal National Mortgage Association, 4.0%, maturing on 12/1/2025 with a value of $1,176,015.
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
AMT: Subject to alternative minimum tax
LIQ: Liquidity Facility
LOC: Letter of Credit
Fair Value Measurements
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of August 31, 2012 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
|
Assets
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
Investments in Securities (b)
|
|
$
|
—
|
|
|
$
|
14,589,421
|
|
|
$
|
—
|
|
|
$
|
14,589,421
|
|
|
Repurchase Agreements
|
|
|
—
|
|
|
|
1,152,956
|
|
|
|
—
|
|
|
|
1,152,956
|
|
|
Total
|
|
$
|
—
|
|
|
$
|
15,742,377
|
|
|
$
|
—
|
|
|
$
|
15,742,377
|
|
There have been no transfers between Level 1 and Level 2 fair value measurements during the year ended August 31, 2012.
(b) See Investment Portfolio for additional detailed categorizations.
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities
|
as of August 31, 2012
|
|
|
Assets
|
|
|
Investments in non-affiliated securities, at value (cost $15,742,114)
|
|
$
|
15,742,377
|
|
|
|
|
|
|
|
|
25,000
|
|
|
Receivable for investments sold
|
|
|
25,000
|
|
|
Receivable for investments sold
|
|
|
25,000
|
|
|
Interest receivable
|
|
|
4,967
|
|
|
Due from Advisor
|
|
|
5,847
|
|
|
Other assets
|
|
|
88
|
|
|
Total assets
|
|
|
15,778,279
|
|
|
Liabilities
|
|
|
Accrued Trustees' fees
|
|
|
652
|
|
|
Accrued expenses
|
|
|
38,568
|
|
|
Total liabilities
|
|
|
39,220
|
|
|
Net assets, at value
|
|
$
|
15,739,059
|
|
|
Net Assets Consist of
|
|
|
Undistributed net investment income
|
|
|
346
|
|
|
Net unrealized appreciation (depreciation) on investments
|
|
|
263
|
|
|
Paid-in capital
|
|
|
15,738,450
|
|
|
Paid-in capital
|
|
|
15,738,450
|
|
|
Net assets, at value
|
|
$
|
15,739,059
|
|
|
Net Asset Value
|
|
|
Net Asset Value
, offering and redemption price per share ($15,739,059 ÷ 1,573,788 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)
|
|
$
|
10.001
|
|
The accompanying notes are an integral part of the financial statements.
Statement of Operations
|
for the year ended August 31, 2012
|
|
|
Investment Income
|
|
|
Income:
Interest
|
|
$
|
35,933
|
|
|
Expenses:
Management fee
|
|
|
22,545
|
|
|
Administration fee
|
|
|
15,030
|
|
|
Services to shareholders
|
|
|
99,999
|
|
|
Audit fee
|
|
|
31,830
|
|
|
Legal fees
|
|
|
12,532
|
|
|
Reports to shareholders
|
|
|
13,997
|
|
|
Trustees' fees and expenses
|
|
|
1,647
|
|
|
Organization and offering expense
|
|
|
29,562
|
|
|
Other
|
|
|
19,141
|
|
|
Total expenses before expense reductions
|
|
|
246,283
|
|
|
Expense reductions
|
|
|
(246,283
|
)
|
|
Total expenses after expense reductions
|
|
|
—
|
|
|
Net investment income
|
|
|
35,933
|
|
|
Realized and Unrealized Gain (Loss)
|
|
|
Net realized gain (loss) from investments
|
|
|
326
|
|
|
Change in net unrealized appreciation (depreciation) on investments
|
|
|
(58
|
)
|
|
Net gain (loss)
|
|
|
268
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
$
|
36,201
|
|
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets
|
Increase (Decrease) in Net Assets
|
|
Year Ended August 31, 2012
|
|
|
Period Ended August 31, 2011
*
|
|
|
Operations:
Net investment income
|
|
$
|
35,933
|
|
|
$
|
15,804
|
|
|
Net realized gain (loss)
|
|
|
326
|
|
|
|
20
|
|
|
Change in net unrealized appreciation (depreciation)
|
|
|
(58
|
)
|
|
|
321
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
36,201
|
|
|
|
16,145
|
|
|
Distribution to shareholders from:
Net investment income
|
|
|
(35,933
|
)
|
|
|
(15,804
|
)
|
|
Fund share transactions:
Proceeds from shares sold
|
|
|
5,687,565
|
|
|
|
—
|
|
|
Reinvestment of distributions
|
|
|
35,081
|
|
|
|
15,804
|
|
|
Payments for shares redeemed
|
|
|
(10,000,000
|
)
|
|
|
—
|
|
|
Net increase (decrease) in net assets from Fund share transactions
|
|
|
(4,277,354
|
)
|
|
|
15,804
|
|
|
Increase (decrease) in net assets
|
|
|
(4,277,086
|
)
|
|
|
16,145
|
|
|
Net assets at beginning of period
|
|
|
20,016,145
|
|
|
|
20,000,000
|
**
|
|
Net assets at end of period (including undistributed net investment income of $346 and $20, respectively)
|
|
$
|
15,739,059
|
|
|
$
|
20,016,145
|
|
|
Other Information
|
|
|
Shares outstanding at beginning of period
|
|
|
2,001,581
|
|
|
|
2,000,000
|
**
|
|
Shares sold
|
|
|
568,699
|
|
|
|
—
|
|
|
Shares issued to shareholders in reinvestment of distributions
|
|
|
3,508
|
|
|
|
1,581
|
|
|
Shares redeemed
|
|
|
(1,000,000
|
)
|
|
|
—
|
|
|
Net increase (decrease) in Fund shares
|
|
|
(427,793
|
)
|
|
|
1,581
|
|
|
Shares outstanding at end of period
|
|
|
1,573,788
|
|
|
|
2,001,581
|
|
*
For the period from April 18, 2011 (commencement of operations) to August 31, 2011.
**
Initial capital
The accompanying notes are an integral part of the financial statements.
Financial Highlights
|
|
Year Ended 8/31/12
|
|
|
Period Ended 8/31/11
a
|
|
|
Selected Per Share Data
|
|
|
Net asset value, beginning of period
|
|
$
|
10.000
|
|
|
$
|
10.000
|
|
|
Income (loss) from investment operations:
Net investment income
|
|
|
.025
|
|
|
|
.008
|
|
|
Net realized and unrealized gain (loss)
|
|
|
.001
|
|
|
|
.000
|
***
|
|
Total from investment operations
|
|
|
.026
|
|
|
|
.008
|
|
|
Less distributions from:
Net investment income
|
|
|
(.025
|
)
|
|
|
(.008
|
)
|
|
Net asset value, end of period
|
|
$
|
10.001
|
|
|
$
|
10.000
|
|
|
Total Return (%)
b
|
|
|
.26
|
|
|
|
.08
|
**
|
|
Ratios to Average Net Assets and Supplemental Data
|
|
|
Net assets, end of period ($ millions)
|
|
|
16
|
|
|
|
20
|
|
|
Ratio of expenses before expense reductions (%)
|
|
|
1.64
|
|
|
|
1.92
|
*
|
|
Ratio of expenses after expense reductions (%)
|
|
|
.00
|
|
|
|
.00
|
|
|
Ratio of net investment income (%)
|
|
|
.24
|
|
|
|
.21
|
*
|
|
a
For the period from April 18, 2011 (commencement of operations) to August 31, 2011.
b
Total return would have been lower had certain expenses not been reduced.
*
Annualized
**
Not annualized
***
Amount is less than $.0005.
|
|
Notes to Financial Statements
A. Organization and Significant Accounting Policies
DWS Variable NAV Money Fund (the "Fund") is a diversified series of Investors Cash Trust (the "Trust"), which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Massachusetts business trust.
The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
Security Valuation.
Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Debt securities are valued at prices supplied by independent pricing services approved by the Fund's Board. If the pricing services are unable to provide valuations, municipal debt securities are valued at the mean of the most recent bid and asked quotations or evaluated prices, as applicable, obtained from one or more broker-dealers, and other debt securities are valued at the most recent bid quotation or evaluated price, as applicable, obtained from one or more broker-dealers. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. These securities are generally categorized as Level 2.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund's valuation procedures, factors used in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security's disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company's or issuer's financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold and with respect to debt securities; the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Disclosure about the classification of fair value measurements is included in a table following the Fund's Investment Portfolio.
Repurchase Agreements.
The Fund may enter into repurchase agreements with certain banks and broker/dealers whereby the Fund, through its custodian or a sub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the value is equal to at least the principal amount of the repurchase price plus accrued interest. The custodial bank or another designated subcustodian holds the collateral in a separate account until the agreement matures. If the value of the securities falls below the principal amount of the repurchase agreement plus accrued interest, the financial institution deposits additional collateral by the following business day. If the financial institution either fails to deposit the required additional collateral or fails to repurchase the securities as agreed, the Fund has the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Fund's claims on the collateral may be subject to legal proceedings.
New Accounting Pronouncement.
In December 2011, Accounting Standards Update 2011-11 (ASU 2011-11), Disclosures about Offsetting Assets and Liabilities, was issued and is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. Management is currently evaluating the application of ASU 2011-11 and its impact, if any, on the Fund's financial statements.
Federal Income Taxes.
The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders.
The Fund has reviewed the tax positions for the open tax year as of August 31, 2012 and has determined that no provision for income tax is required in the Fund's financial statements. The Fund's federal tax returns for the prior two fiscal years remain open subject to examination by the Internal Revenue Service.
Distributions of Income and Gains.
Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. The Fund may take into account capital gains and losses in its daily dividend declarations. The Fund may also make additional distributions for tax purposes if necessary.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid-in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were no significant book-to-tax differences for the Fund.
At August 31, 2012, the Fund's components of distributable earnings (accumulated losses) on a tax basis are as follows:
|
Undistributed ordinary income*
|
|
$
|
346
|
|
|
Net unrealized appreciation (depreciation) on investments
|
|
$
|
263
|
|
In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
|
|
|
Year Ended August 31,
2012
|
|
|
Period Ended August 31,
2011**
|
|
|
Distributions from ordinary income*
|
|
$
|
35,933
|
|
|
$
|
15,804
|
|
|
Distributions from ordinary income*
|
|
$
|
35,933
|
|
|
$
|
15,804
|
|
* For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
** For the period from April 18, 2011 (commencement of operations) to August 31, 2011.
Offering Costs.
Offering costs for the Fund were paid in connection with the offering of shares and were amortized over one year.
Expenses.
Expenses of the Trust arising in connection with a specific fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a fund are apportioned among the funds in the Trust based upon the relative net assets or other appropriate measures.
Contingencies.
In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other.
Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
B. Fees and Transactions with Affiliates
Management Agreement.
Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
Pursuant to the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the Fund's average daily net assets, computed and accrued daily and payable monthly, at the following annual rates:
|
First $1 billion of the Fund's average daily net assets
|
|
|
.1500
|
%
|
|
Next $3 billion of such net assets
|
|
|
.1325
|
%
|
|
Over $4 billion of such net assets
|
|
|
.1200
|
%
|
For the period from September 1, 2011 through November 30, 2012, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund shares to the extent necessary to maintain the operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.15% of the Fund's average daily net assets.
For the period from September 1, 2011 through August 31, 2012, the Advisor has voluntarily agreed to waive its fees and/or reimburse certain operating expenses to the extent necessary to maintain the operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.00%. This voluntary waiver or reimbursement may be terminated at any time at the option of the Advisor.
Accordingly, for the year ended August 31, 2012, the fee pursuant to the Investment Management Agreement aggregated $22,545, all of which was waived, resulting in an annual effective rate of 0.00% of the Fund's average daily net assets.
In addition, for the year ended August 31, 2012, the Advisor reimbursed $108,709 of other expenses.
Administration Fee.
Pursuant to the Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's average daily net assets, computed and accrued daily and payable monthly. For the year ended August 31, 2012, the Administration Fee was $15,030, all of which was waived.
Service Provider Fees.
DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement between DISC and DST Systems, Inc. ("DST"), DISC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended August 31, 2012, the amount charged to the Fund by DISC aggregated $99,999, all of which was waived.
Typesetting and Filing Service Fees.
Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Fund. For the year ended August 31, 2012, the amount charged to the Fund by DIMA included in the Statement of Operations under "reports to shareholders" aggregated $13,997, of which $4,655 was unpaid.
Trustees' Fees and Expenses.
The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
C. Ownership of the Fund
At August 31, 2012, there was one affiliated shareholder account that held approximately 64% and one non-affiliated shareholder account that held approximately 30% of the outstanding shares of the Fund.
D. Line of Credit
The Fund and other affiliated funds (the "Participants") shared in a $375 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal Funds Rate the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at August 31, 2012.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Investors Cash Trust and the Shareholders of DWS Variable NAV Money Fund:
We have audited the accompanying statement of assets and liabilities of DWS Variable NAV Money Fund (the "Fund"), a series of Investors Cash Trust (the "Trust"), including the investment portfolio as of August 31, 2012, the related Statement of Operations for the year then ended, and the statement of changes in net assets and the financial highlights for the year ended August 31, 2012 and for the period from April 18, 2011 (commencement of operations) to August 31, 2011. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principals used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of August 31, 2012, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position and the results of operations of DWS Variable NAV Money Fund at August 31, 2012, the changes in its net assets and the financial highlights for the year ended August 31, 2012 and for the period from April 18, 2011 (commencement of operations) to August 31, 2011, in conformity with U.S. generally accepted accounting principles.
|
|
|
|
|
Boston, Massachusetts
October 25, 2012
|
|
|
Information About Your Fund's Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, the Fund limited these expenses; had it not done so, expenses would have been higher. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (March 1, 2012 to August 31, 2012).
The tables illustrate your Fund's expenses in two ways:
•
Actual Fund Return.
This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.
•
Hypothetical 5% Fund Return.
This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
|
Expenses and Value of a $1,000 Investment
for the period ended August 31, 2012 (Unaudited)
|
|
|
Actual Fund Return
|
|
|
|
|
Beginning Account Value 3/1/12
|
|
$
|
1,000.00
|
|
|
Ending Account Value 8/31/12
|
|
$
|
1,001.50
|
|
|
Expenses Paid per $1,000*
|
|
$
|
.00
|
|
|
Hypothetical 5% Fund Return
|
|
|
|
|
|
Beginning Account Value 3/1/12
|
|
$
|
1,000.00
|
|
|
Ending Account Value 8/31/12
|
|
$
|
1,025.14
|
|
|
Expenses Paid per $1,000*
|
|
$
|
.00
|
|
*
Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 366.
|
Annualized Expense Ratio
|
|
|
DWS Variable NAV Money Fund
|
.00%
|
For more information, please refer to the Fund's prospectus.
Tax Information
(Unaudited)
A total of 4% of the dividends distributed during the fiscal year was derived from interest on U.S. government securities, which is generally exempt from state income tax.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800) 621-1048.
Summary of Management Fee Evaluation by Independent Fee Consultant
September 26, 2011
Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively, "DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds). My duties include preparing an annual written evaluation of the management fees DeAM charges the Funds, considering among other factors the management fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for like services, DeAM's costs of supplying services under the management agreements and related profit margins, possible economies of scale if a Fund grows larger, and the nature and quality of DeAM's services, including fund performance. This report summarizes my evaluation for 2011, including my qualifications, the evaluation process for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in substantially the same capacity in 2007, 2008, 2009 and 2010.
Qualifications
For more than 35 years I have served in various professional capacities within the investment management business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist and director of investment policy with a large investment firm. I have also performed business management functions, including business development, financial management and marketing research and analysis.
Since 1991, I have been an independent consultant within the asset management industry. I have provided services to over 125 client organizations, including investment managers, mutual fund boards, product distributors and related organizations. Over the past ten years I have completed a number of assignments for mutual fund boards, specifically including assisting boards with management contract renewal.
I hold a Master of Business Administration degree, with highest honors, from Harvard University and Master of Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an independent director and audit committee financial expert for two closed-end mutual funds and have served in various leadership and financial oversight capacities with non-profit organizations.
Evaluation of Fees for each DWS Fund
My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 109 mutual fund portfolios in the DWS Fund family. For each Fund, I considered each of the key factors mentioned above, as well as any other relevant information. In doing so I worked closely with the Funds' Independent Directors in their annual contract renewal process, as well as in their approval of contracts for several new funds (documented separately).
In evaluating each Fund's fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including expense information prepared by Lipper Analytical, comparative performance information, profitability data, manager histories, and other materials. I also accessed certain additional information from the Lipper and Morningstar databases and drew on my industry knowledge and experience.
To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing the key data elements in each area as well as additional analytics discussed below. This made it possible to consider each key data element in the context of the others.
In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation includes the effects of these changes.
Fees and Expenses Compared with Other Funds
The competitive fee and expense evaluation for each fund focused on two primary comparisons:
The Fund's contractual management fee (the advisory fee plus the administration fee where applicable) compared with those of a group of typically 12-15 funds in the same Lipper investment category (e.g. Large Capitalization Growth) having similar distribution arrangements and being of similar size.
The Fund's total expenses compared with a broader universe of funds from the same Lipper investment category and having similar distribution arrangements.
These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but also the total expense the Fund bears for all the services it receives, in comparison with the investment choices available in the Fund's investment category and distribution channel. The principal figure-of-merit used in these comparisons was the subject Fund's percentile ranking against peers.
DeAM's Fees for Similar Services to Others
DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment management accounts in any of the investment categories where there is a DWS Fund. These similar products included the other DWS Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts. Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the subject Fund's asset level.
Evaluating information regarding non-fund products is difficult because there are varying levels of services required for different types of accounts, with mutual funds generally requiring considerably more regulatory and administrative types of service as well as having more frequent cash flows than other types of accounts. Also, while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable insurance products), differences in underlying investment processes and other factors.
Costs and Profit Margins
DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the presentation would be more comparable to the available industry figures, I reviewed profit margins from investment management alone, from investment management plus other fund services (excluding distribution) provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including distribution. A later section comments on overall profitability.
Economies of Scale
Economies of scale — an expected decline in management cost per dollar of fund assets as fund assets grow — are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and lower total expenses than smaller funds. To see how each DWS Fund compares with this industry observation, I reviewed:
The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have declined as a percent of assets.
Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the Fund's break-points compare with those of the sub-advisory fee schedule.
How the Fund's contractual fee schedule compares with trends in the industry data. To accomplish this, I constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar funds relate to average fund assets, with the subject Fund's contractual fee schedule superimposed.
Quality of Service — Performance
The quality-of-service evaluation focused on investment performance, which is the principal result of the investment management service. Each Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as applicable, and compared with that of other funds in the same investment category and with a suitable market index.
In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds' returns and a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the Fund's return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively taking considerably more or less risk than is typical in its investment category.
I also received and considered the history of portfolio manager changes for each Fund, as this provided an important context for evaluating the performance results.
Complex-Level Considerations
While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the reasonableness of fees that can alternatively be considered across the whole fund complex:
I reviewed DeAM's profitability analysis for all DWS Funds, with a view toward determining if the allocation procedures used were reasonable and how profit levels compared with public data for other investment managers.
I considered whether DeAM and affiliates receive any significant ancillary or "fall-out" benefits that should be considered in interpreting the direct profitability results. These would be situations where serving as the investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.
I considered how aggregated DWS Fund expenses had varied over the years, by asset class and in the context of trends in asset levels.
I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation of investment management and other professionals compared with industry data.
Findings
Based on the process and analysis discussed above, which included reviewing a wide range of information from management and external data sources and considering among other factors the fees DeAM charges other clients, the fees charged by other fund managers, DeAM's costs and profits associated with managing the Funds, economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the management fees charged the DWS Funds are reasonable.
Thomas H. Mack
President, Thomas H. Mack & Co., Inc.
Board Members and Officers
The following table presents certain information regarding the Board Members and Officers of the fund as of August 31, 2012. Each Board Member's year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Paul K. Freeman, Independent Chairman, DWS Funds, PO Box 101833, Denver, CO 80250-1833. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the fund. Because the fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex. The Length of Time Served represents the year in which the Board Member joined the Board of one or more DWS funds now overseen by the Board.
|
Independent Board Members
|
|
Name, Year of Birth, Position with the Fund and Length of Time Served
1
|
|
Business Experience and Directorships During the Past Five Years
|
Number of Funds in DWS Fund Complex Overseen
|
Other Directorships Held by Board Member
|
|
Paul K. Freeman (1950)
Chairperson since 2009
Board Member since 1993
|
|
Consultant, World Bank/Inter-American Development Bank; Executive and Governing Council of the Independent Directors Council (Chairman of Education Committee); formerly: Project Leader, International Institute for Applied Systems Analysis (1998-2001); Chief Executive Officer, The Eric Group, Inc. (environmental insurance) (1986-1998)
|
104
|
—
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|
John W. Ballantine (1946)
Board Member since 1999
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|
Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996-1998); Executive Vice President and Head of International Banking (1995-1996). Directorships: Chairman of the Board, Healthways, Inc. (provider of disease and care management services); Portland General Electric (utility company); Stockwell Capital Investments PLC (private equity); former Directorships: First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International
|
104
|
—
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|
Henry P. Becton, Jr. (1943)
Board Member since 1990
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|
Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); The PBS Foundation; North Bennett Street School (Boston); former Directorships: Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College
|
104
|
Lead Director, Becton Dickinson and Company
2
(medical technology company); Lead Director, Belo Corporation
2
(media company)
|
|
Dawn-Marie Driscoll (1946)
Board Member since 1987
|
|
President, Driscoll Associates (consulting firm); Executive Fellow, Center for Business Ethics, Bentley University; formerly, Partner, Palmer & Dodge (1988-1990); Vice President of Corporate Affairs and General Counsel, Filene's (1978-1988). Directorships: Director of ICI Mutual Insurance Company (since 2007); Advisory Board, Center for Business Ethics, Bentley University; Trustee, Southwest Florida Community Foundation (charitable organization); former Directorships: Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees)
|
104
|
Trustee, Sun Capital Advisers, Inc. (22 open-end mutual funds advised by Sun Capital Advisers, Inc.) (since 2007)
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|
Keith R. Fox, CFA (1954)
Board Member since 1996
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|
Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); BoxTop Media Inc. (advertising); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies
|
104
|
Trustee, Sun Capital Advisers, Inc. (22 open-end mutual funds advised by Sun Capital Advisers, Inc.) (since 2011)
|
|
Kenneth C. Froewiss (1945)
Board Member since 2001
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|
Adjunct Professor of Finance, NYU Stern School of Business (September 2009-present; Clinical Professor from 1997-September 2009); Member, Finance Committee, Association for Asian Studies (2002-present); Director, Mitsui Sumitomo Insurance Group (US) (2004-present); prior thereto, Managing Director, J.P. Morgan (investment banking firm) (until 1996)
|
104
|
—
|
|
Richard J. Herring (1946)
Board Member since 1990
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|
Jacob Safra Professor of International Banking and Professor, Finance Department, The Wharton School, University of Pennsylvania (since July 1972); Co-Director, Wharton Financial Institutions Center (since July 2000); Co-Chair, U.S. Shadow Financial Regulatory Committee; Executive Director, Financial Economists Roundtable; formerly: Vice Dean and Director, Wharton Undergraduate Division (July 1995-June 2000); Director, Lauder Institute of International Management Studies (July 2000-June 2006)
|
104
|
Director, Japan Equity Fund, Inc. (since September 2007), Thai Capital Fund, Inc. (since September 2007), Singapore Fund, Inc. (since September 2007), Independent Director of Barclays Bank Delaware (since September 2010)
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William McClayton (1944)
Board Member since 2004
|
|
Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001-2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966-2001); Trustee, Ravinia Festival
|
104
|
—
|
|
Rebecca W. Rimel (1951)
Board Member since 1995
|
|
President and Chief Executive Officer, The Pew Charitable Trusts (charitable organization) (1994 to present); Trustee, Washington College (2011 to present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983-2004); Board Member, Investor Education (charitable organization) (2004-2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001-2007); Trustee, Pro Publica (charitable organization) (2007-2010); Trustee, Thomas Jefferson Foundation (charitable organization) (1994 to 2012)
|
104
|
Director, CardioNet, Inc.
2
(health care) (2009- present); Director, Viasys Health Care
2
(January 2007- June 2007)
|
|
William N. Searcy, Jr. (1946)
Board Member since 1993
|
|
Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation
2
(telecommunications) (November 1989-September 2003)
|
104
|
Trustee, Sun Capital Advisers, Inc. (22 open-end mutual funds advised by Sun Capital Advisers, Inc.) (since 1998)
|
|
Jean Gleason Stromberg (1943)
Board Member since 1997
|
|
Retired. Formerly, Consultant (1997-2001); Director, Financial Markets U.S. Government Accountability Office (1996-1997); Partner, Fulbright & Jaworski, L.L.P. (law firm) (1978-1996). Directorships: The William and Flora Hewlett Foundation; former Directorships: Service Source, Inc., Mutual Fund Directors Forum (2002-2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987-1990 and 1994-1996)
|
104
|
—
|
|
Robert H. Wadsworth
(1940)
Board Member since 1999
|
|
President, Robert H. Wadsworth & Associates, Inc. (consulting firm) (1983 to present); Director, National Horizon, Inc. (non-profit organization); Director and Treasurer, The Phoenix Boys Choir Association
|
107
|
—
|
|
Officers
4
|
|
Name, Year of Birth, Position with the Fund and Length of Time Served
5
|
|
Principal Occupation(s) During Past 5 Years and Other Directorships Held
|
|
W. Douglas Beck, CFA
6
(1967)
President, 2011-present
|
|
Managing Director
3
, Deutsche Asset Management (2006-present); President of DWS family of funds and Head of Product Management, U.S. for DWS Investments; formerly, Executive Director, Head of Product Management (2002-2006) and President (2005-2006) of the UBS Funds at UBS Global Asset Management; Co-Head of Manager Research/Managed Solutions Group, Merrill Lynch (1998-2002)
|
|
John Millette
7
(1962)
Vice President and Secretary, 1999-present
|
|
Director
3
, Deutsche Asset Management
|
|
Paul H. Schubert
6
(1963)
Chief Financial Officer, 2004-present
Treasurer, 2005-present
|
|
Managing Director
3
, Deutsche Asset Management (since July 2004); formerly, Executive Director, Head of Mutual Fund Services and Treasurer for UBS Family of Funds (1998-2004); Vice President and Director of Mutual Fund Finance at UBS Global Asset Management (1994-1998)
|
|
Caroline Pearson
7
(1962)
Chief Legal Officer, 2010-present
|
|
Managing Director
3
, Deutsche Asset Management; formerly, Assistant Secretary for DWS family of funds (1997-2010)
|
|
Melinda Morrow
6
(1970)
Vice President,
2012-present
|
|
Director
3
, Deutsche Asset Management
|
|
Paul Antosca
7
(1957)
Assistant Treasurer, 2007-present
|
|
Director
3
, Deutsche Asset Management
|
|
Jack Clark
7
(1967)
Assistant Treasurer, 2007-present
|
|
Director
3
, Deutsche Asset Management
|
|
Diane Kenneally
7
(1966)
Assistant Treasurer, 2007-present
|
|
Director
3
, Deutsche Asset Management
|
|
John Caruso
6
(1965)
Anti-Money Laundering Compliance Officer, 2010-present
|
|
Managing Director
3
, Deutsche Asset Management
|
|
Robert Kloby
6
(1962)
Chief Compliance Officer, 2006-present
|
|
Managing Director
3
, Deutsche Asset Management
|
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
A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.
3
Executive title, not a board directorship.
4
As a result of their respective positions held with the Advisor, these individuals are considered "interested persons" of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the fund.
5
The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds.
6
Address: 60 Wall Street, New York, NY 10005.
7
Address: One Beacon Street, Boston, MA 02108.
The fund's Statement of Additional Information ("SAI") includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the following toll-free number: (800) 621-1048.
Account Management Resources
|
|
|
Automated Information Line
|
|
Institutional Investor Services (800) 730-1313
Personalized account information, information on other DeAM funds and services via touchtone telephone and the ability to exchange or redeem shares.
|
|
Web Site
|
|
www.dbadvisorsliquidity.com/US
View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day.
Obtain prospectuses and applications,
blank forms, interactive worksheets, news about the funds, subscription to fund updates by e-mail, retirement planning information, and more.
|
|
For More Information
|
|
(800) 730-1313, option 1
To speak with a fund service representative.
|
|
Written Correspondence
|
|
Deutsche Asset Management
PO Box 219210
Kansas City, MO
64121-9210
|
|
Proxy Voting
|
|
The fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 are available on our Web site — www.dws-investments.com (click on "proxy voting"at the bottom of the page) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at (800) 621-1048.
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|
Portfolio Holdings
|
|
Following the fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. In addition, each month, information about the fund and its portfolio holdings is filed with the SEC on Form N-MFP. The SEC delays the public availability of the information filed on Form N-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC's Web site at www.sec.gov, and they may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330. The fund's portfolio holdings are also posted on www.dws-investments.com from time to time. Please see the fund's current prospectus for more information.
|
|
Principal Underwriter
|
|
If you have questions, comments or complaints, contact:
DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808
www.dws-investments.com
(800) 621-1148
|
|
Investment Management
|
|
Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), which is part of Deutsche Asset Management, is the investment advisor for the fund. DIMA and its predecessors have more than 80 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients.
DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution engaged in a wide variety of financial services, including investment management, retail, private and commercial banking, investment banking and insurance.
DWS Investments is the retail brand name in the U.S. for the asset management activities of Deutsche Bank AG and DIMA. As such, DWS is committed to delivering the investing expertise, insight and resources of this global investment platform to American investors.
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CUSIP Number
|
|
461473845
|
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Fund Number
|
|
1011
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