the Sales Prospectus, including the assets mentioned in Article 2.A. j). The proportion of convertible bonds may not exceed 25% of the sub-fund’s assets. Any shares or other equity instruments acquired through the exercise of conversion rights must be sold within a rea- sonable period of time.
Non-deliverable forwards (NDFs) are forward currency transactions, which can be used to hedge the exchange rate between a freely convertible currency (usually the U.S. dollar or the euro) and a currency that is not freely con- vertible.
Specific risks: Currency risk
If the sub-fund holds assets denominated in foreign currency, it is exposed to currency risk (to the extent that foreign currency positions are not hedged). Any devaluation of the for- eign currency in relation to the base currency of the sub-fund will lead to a decline in the value of the asset denominated in the foreign currency.
Where investments are exposed to the risks of currencies that are subject to transfer restrictions, derivative financial instruments may be used that are based on such currencies and which provide for delivery and payment in freely convertible currencies (e.g., so-called non-deliverable forward agreements – NDFs). Given the investment pol- icy, which also provides for investment in sec- ondary currencies and in currencies that are not freely convertible, currency risks may occur in the sub-fund. These risks include, in the short term, the tendency of exchange rates to undergo unpre- dictable and sudden changes and, in the longer term, the fund management incorrectly forecast- ing trends in exchange rate developments. Using currencies that are not freely convertible entails a higher exchange-rate risk than using freely con- vertible currencies.
Fund manager of the sub-fund
The fund manager of the sub-fund is DWS Investment GmbH.
Performance of share classes (in euro)
Share class
ISIN
1 year
3 years
Since inception
1)Class LC
LU0273151430
3.0%
7.0%
7.4%
Class LD
LU0363469908
2.0%
2)–
3.5%
3)Class NC
LU0273149376
2.6%
5.7%
6.0%
Class FC
LU0273149533
3.5%
8.7%
9.2%
Class FD
LU0298697748
3.7%
–
8.9%
1)Classes LC, NC and FC on November 20, 2006 / Class FD on May 14, 2007 / Class LD on July 1, 2008 2)Liquidated on June 22, 2009 / Performance from January 1, 2009, through June 22, 2009
3)Liquidated on June 22, 2009 / Performance from July 1, 2008, through June 22, 2009
“BVI method” performance, i.e., excluding the initial sales charge. Past performance is no guide to future results. As of December 31, 2009
* 3% based on the gross investment correspond approx. to 3.09% based on the net investment. ** 1.5% based on the gross investment correspond approx. to 1.52% based on the net investment. *** For additional costs, see Article 12 in the general section of the Sales Prospectus.
**** Effective up to December 31, 2010: For the share classes NC, FC, LC and LD, the Management Com- pany shall receive from the sub-fund’s assets an additional performance-related fee per share class equal to 25% of the amount by which the performance of the sub-fund exceeds the return from a money market investment specified below. The calculation basis for the NC, LC, FC and LD share classes is the performance of the EONIA (capitalized) Index, plus 300 basis points (target return, no benchmark). The performance-related fee for the respective share class is calculated daily and settled annually. In accordance with the result of the daily comparison, any performance-related fee incurred is deferred in the sub-fund for each share class. If share performance during any fiscal year falls short of the preceding target return, any provisions for a performance-related fee already deferred in that fis- cal year shall be dissolved in accordance with the daily comparison. The amount of deferred perfor- mance-related fee existing at the end of the fiscal year may be withdrawn. There is no requirement to make up for a negative performance in a subsequent accounting period.
Effective from January 1, 2011: For the share classes NC, FC, LC and LD, the Management Com-
pany shall receive from the subfund’s assets an additional performance-related fee per share class equal to 25% of the amount by which the performance of the sub-fund exceeds the return from a money market investment specified below. The calculation basis for the NC, LC, FC and LD share classes is the performance of the EONIA (capitalized) Index, plus 300 basis points (target return, no benchmark). The performance-related fee for the respective share class is calculated daily and settled semi-annually. In accordance with the result of the daily comparison, any performance-related fee in- curred is deferred in the sub-fund for each share class. If share performance during any fiscal six-month period falls short of the preceding target return, any provisions for a performance-related fee already deferred in that fiscal six-month period shall be dissolved in accordance with the daily comparison. The amount of deferred performance-related fee existing at the end of the fiscal six-month period may be withdrawn. There is a requirement to make up any underperformance relative to the target return from previous accounting periods before any performance fee may be charged (High Water Mark). The sub-fund DWS Invest Global Macro Opportu-
nities Fund has been renamed as DWS Invest Income Strategy Dynamic effective July 1, 2010. For the sub-fund with the name DWS Invest Income Strategy Dynamic, the following provi- sions shall apply in addition to the terms contained in the general section of the Sales Prospectus.
Investment policy
The objective of the investment policy of DWS Invest Income Strategy Dynamic is to achieve an appreciation as high as possible of capital in- vested.
The sub-fund targets a higher level of annual volatility. However, no assurance can be given that the investment objective will be achieved. The majority of the sub-fund’s assets are invested in money market and cash instruments, interest- bearing debt securities, index certificates on un- derlying bond indices, asset backed securities and derivatives thereof. The sub-fund’s investments in asset backed securities shall be limited to 20% of the subfund’s net asset value.
In addition the sub-fund may invest in equities, derivatives thereof and certificates on commodity futures, commodity indices and precious metals. The fund also uses a wide range of techniques and instruments in order to profit from price movements in the bond and currency markets (e.g. forward foreign-exchange transactions, inter- est-rate futures contracts, call and put options on interest rates, interest rate swaps and forward rate agreements). Credit default swaps may be acquired for investment and hedging purpose to the extent permitted by law.
In addition, the sub-fund may invest in all other permissible assets as specified in Article 2 of the general section of the Sales Prospectus. The described investment policy could also be implemented by using Synthetic Dynamic Under- lyings (SDU).
Fund manager of the sub-fund
The fund manager of the sub-fund is DWS Investment GmbH.
Share class Security codes ISIN
LC DWS0E8 LU0298697318
FC DWS0FA LU0298697581
NC DWS0E9 LU0298697409
LD DWS0V5 LU0399358729
Investor Profile Growth-oriented
Currency of sub-fund EUR
Nature of shares Registered shares or bearer shares represented by a global
certificate
Date of launch and initial subscription
LC, FC and NC: May 14, 2007
LD: The date of launch and initial subscription will be determined by the Board of Directors. The Sales Prospectus will be updated accordingly.
Initial NAV per share LC, FC, NC and LD: EUR 100.00
Calculation of the NAV per share Each bank business day in Luxembourg
Front-end load
(payable by the investor)
LC and LD: up to 3% based on the gross investment* NC: up to 1.5% based on the gross investment**
FC: 0%
Allocation of income FC, LC and NC: Reinvestment
LD: Distribution
Management Company fee
(payable by the sub-fund)***
FC: up to 0.8% p.a. plus an additional performance- related fee****
LC and LD: up to 1.3% p.a. plus an additional performance- related fee****
NC: up to 1.7% p.a. plus an additional performance- related fee****
Expense cap
(see Art. 12 b)
Not to exceed 15% of the Management Company fee
Service fee of the main distributor
(payable by the sub-fund)***
NC: 0.1% p.a. LC, FC and LD: 0% p.a.
Taxe d’abonnement FC, LC, NC and LD: 0.05% p.a.
Order acceptance All subscription, redemption and exchange orders are placed
on the basis of an unknown net asset value per share. Orders received by the Transfer Agent at or before 4:00 PM Luxem-
bourg time on a valuation date are processed on the basis of
the net asset value per share on that valuation date. Orders received after 4:00 PM Luxembourg time are processed on the basis of the net asset value per share on the next valuation date.
Value date In a purchase, the equivalent value is debited three bank
business days after issue of the shares. The equivalent value is credited three bank business days after redemption of the shares.