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DWS InvestAnnual Report 2012

Investment Company with Variable Capital Incorporated under Luxembourg Law

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Contents

Annual report 2012

for the period from January 1, 2012, through December 31, 2012

Equity and bond markets 4

General information 8

Annual report DWS Invest SICAV

DWS Concept ets (formerly: DWS Invest Multi Asset Momentum) 12

DWS Invest Africa 14

DWS Invest Alpha Opportunities 16

DWS Invest Alpha Strategy 18

DWS Invest Asia Pacific ex-Japan 20

DWS Invest Asian Small/Mid Cap 22

DWS Invest Brazilian Equities 24

DWS Invest BRIC Plus 26

DWS Invest China Bonds 28

DWS Invest Chinese Equities 30

DWS Invest Clean Tech 32

DWS Invest Commodity Plus 34

DWS Invest Convertibles 36

DWS Invest Diversified Fixed Income Strategy 38

DWS Invest DYMOND (formerly: DWS Invest Multi Asset Balance) 40

DWS Invest Emerging Markets Corporates 41

DWS Invest Emerging Markets Satellites 43

DWS Invest Emerging Markets Top Dividend Plus 45

DWS Invest Euro Bonds (Premium) 47

DWS Invest Euro Bonds (Short) 49

DWS Invest Euro Corporate Bonds 51

DWS Invest Euro-Gov Bonds 53

DWS Invest Euro High Yield Corporates 55

DWS Invest European Bonds 57

DWS Invest European Equities 59

DWS Invest European Small/Mid Cap 61

DWS Invest European Value (formerly: DWS Invest Top Dividend Europe) 63

DWS Invest German Equities 65

DWS Invest Global Agribusiness 67

DWS Invest Global Bonds 69

2012

2

DWS Invest Global Equities 71

DWS Invest Global ex Japan (USD) 73

DWS Invest Global Inflation Linked Bonds 75

DWS Invest Global Inflation Strategy 77

DWS Invest Global Infrastructure 79

DWS Invest Global Thematic 81

DWS Invest Global Value 83

DWS Invest Gold and Precious Metals Equties 85

DWS Invest Government Liquidity Fund 87

DWS Invest Income Strategy Conservative 89

DWS Invest Income Strategy Currency 91

DWS Invest Income Strategy Dynamic 92

DWS Invest Income Strategy Plus 93

DWS Invest Income Strategy Systematic 94

DWS Invest Italian Equities 95

DWS Invest Japanese Equities 97

DWS Invest Latin American Equities (formerly: DWS Invest Tarvos) 98

DWS Invest Local Emerging Markets Bonds 100

DWS Invest Multi Asset Allocation 101

DWS Invest New Resources 103

DWS Invest Real Assets 105

DWS Invest Responsibility 107

DWS Invest RREEF Asia-Pacific Real Estate Securities 109

DWS Invest RREEF Global Real Estate Securities 111

DWS Invest Short Duration Credit 113

DWS Invest Small/Mid Cap Value 115

DWS Invest Sovereigns Plus 117

DWS Invest StepIn Akkumula 119

DWS Invest Top 50 Asia 121

DWS Invest Top Dividend 123

DWS Invest Top Dividend Premium 125

DWS Invest Top Euroland 127

DWS Invest US-Gov Bonds 129

DWS Invest US Value Equities 130

Investment portfolios for the reporting period

Investment portfolios, financial statements and statement

of changes in net assets 134

Report of the Rviseur dEntreprises agr 544

Equity and bond markets

4

Equity markets in the fiscal year through December 31, 2012

Equity markets impacted

by the debt crisis

From the start of 2012 through the end

of December 2012, prices in the

international equity markets rose

appreciably on balance. Even though

economic growth in the emerging-

market countries, particularly in China,

Brazil and India, was no longer as

pronounced as it had been in previous

years, the economies of export-strong

Western states performed solidly.

These included the United States and

Germany, in particular. In both coun-

tries, the primary impetus no longer

came predominantly from exports but

also increasingly from internal demand.

Temporary phases of weakness in the

capital markets were primarily the

result of the sovereign debt crisis in

the euro periphery. As part of its expan-

sive monetary policy, the European

Central Bank (ECB) announced that it

would buy the government bonds of

crisis-stricken eurozone countries for

an unlimited time and in an unlimited

volume in order to pave a way out of

the high level of debt and bring about

the start of a normalization in Europe.

This boosted equity prices in the

second half of 2012 as much as the

hope of progress in relation to the U.S.

budgetary consolidation (the fiscal

cliff) did towards the end of the year.

Additional impetus came from the

agreement among international

investors to rescue Greece. Overall,

the MSCI World index recorded strong

appreciation of 15.5% in U.S. dollar

terms over the 12-month period

(+12.8% in euro terms). At sector level,

high-growth industrials and consumer

goods that were well positioned

worldwide, in particular, made

above-average gains in the reporting

period.

U.S. equities profited from an improve-

ment in economic data, with recover-

ies in the U.S. housing and employ-

ment markets for example. Further

support came from a positive develop-

ment in consumer figures in the U.S.

and from economic development,

which was generally robust. In

addition, the prospect of further

stimulus measures from the U.S.

Federal Reserve helped the perfor-

mance of prices in the equity market,

which also benefited from a realloca-

tion of European assets to U.S.

equities against the backdrop of the

debt crisis in Europe. While the clear

outcome of the presidential elections

in the U.S. provided a tailwind, the

issue of government debt still created

uncertainty among market participants.

U.S. equities as measured by the

S&P 500 index recorded a gain of

15.3% in U.S. dollar terms (+12.6% in

euro) in the reporting period.

In Europe, the equity markets in

countries where state budgets were

comparatively well managed and which

featured a broad spectrum of equities

from high-growth companies with a

good position in world markets posted

an above average performance. These

included Germany in particular. Many

companies were buoyed here by their

strong international competitiveness.

The DAX rose robustly in the reporting

period by 29.1% in euro terms. In

contrast, the financially-weak, highly-

indebted countries of Southern Europe,

with their growth concerns, recorded

only relatively low price gains or even

significant losses. For example, Italian

equities, as measured by the FTSE

MIB, posted a gain of 7.1%. The

Spanish market fell by 5.1% (IBEX 35).

With a gain of 17.7%, the EURO

STOXX 50 index outperformed the

broader, Europe-wide STOXX

18.6(in U.S. dollars)

International equity marketsin the 2012 fiscal yearPerformance in %

DAXSTOXX Europe 50S&P 500

TOPIX

MSCI World

MSCI EmergingMarkets

29.1

12.615.3

12.620.9

6.3

12.8

15.9

15 350

In local currencyin euro

Equity indices:Germany: DAX Europe: STOXX Europe 50 U.S.: S&P 500 Japan: TOPIX worldwide: MSCI World emerging markets: MSCI Emerging Markets

10 20

15.5(in U.S. dollars)

25 305

Strong market movementsover a five-year period

130115100

85705540

Equity indices:

STOXX Europe 50

S&P 500 TOPIX DAX

Data on euro basis* December 28, 2007 = 100

STOXX is a registeredtrademark of STOXXLimited; DAX is aregistered trademark ofDeutsche Brse AG

12/1112/07* 12/08 12/09 12/10 12/12

Japan

U.S.

EuropeGermany

5

Europe 50 index, which gained 12.6%

(both percentages in euro terms).

The Japanese equity market too was

able to participate in price increases, as

a result of improved sentiment in the

capital markets, and profited from a

relaxation of the situation in Europe

and from the monetary policy meas-

ures taken by the Japanese central

bank. The appreciation of the yen

continued to pose a burden initially;

however the weakening of the

currency as the year progressed gave

the Japanese equity market a positive

boost and had a positive impact on the

performance of the equities of

export-oriented companies in particular.

As measured by the TOPIX index,

Japanese equities recorded a gain of

20.9% in the local currency during the

twelve months through the end of

December 2012 (+6.3% in euro terms).

In the emerging markets, the

economic climate cooled appreciably,

although still remained the strongest

by global comparison. This was not

solely down to global influences. In

China, for example, the state applied

the brakes to the real estate sector. As

part of this, fewer infrastructural

projects were given the go-ahead. In

addition, the number of building

permits was reduced. Restrictions

were also imposed on lending in this

sector. Brazilian growth also eased

noticeably. Reduced Chinese demand

for commodities put a dampener on

exports here. As in some other

emerging-market countries, the central

bank deployed measures to ease

monetary policy with the aim of

stimulating the domestic economy. In

India, growth slowed due to markedly

increasing inflation, among other

factors. Viewed as a whole, however,

the comparatively robust economic

performance in combination with the

relatively low levels of debt encour-

aged investment in the emerging-

market countries. On balance, the

MSCI Emerging Markets index

recorded appreciation of 15.9% in

euro terms. The MSCI BRIC however

gained only 12.2% likewise in

euro terms in this climate.

Strong fluctuations in

gold and crude oil

The price of gold experienced strong

fluctuations in the reporting period of

between 1550 and 1800 U.S. dollars

per troy ounce approximately. Gold

was particularly exposed to the

influence of the expansive monetary

policy of the central banks in Western

industrial countries, in light of the debt

crisis combined with the associated

negative real interest rates and

increasing inflation concerns. On the

other hand, significant corrections

occurred at times, due to fears of

globally weak growth. On balance, the

troy ounce of gold posted a gain of

around 6% in the twelve months

through the end of December 2012.

Crude oil too displayed considerable

price fluctuations. The overall robust

form of the global economy was a

factor in rising prices. In the meantime,

the oil embargo against Iran led to a

significant increase. However, as soon

as the sovereign debt problem in the

euro area reared its head, a consider-

able drop occurred, due to heightened

fears of a recession. In addition, the

historically high U.S. inventory

dampened the price, which, on

balance, fell in 2012 by around 7% to

approximately 92 U.S. dollars per barrel

(WTI). On the currency side, the euro

gained 2.0% against the greenback in

the year through the end of December

2012. Hopes of a stabilization in the

euro area as well as the significant

monetary easing by the Fed boosted

the euro. The U.S. dollar had to

relinquish its relative strength against

the euro due to capital outflows, which

were considerable at times. However,

the euro was prone to weakness in the

first half of the fiscal year in light of the

Spanish banking crisis and constantly

recurring speculation that Greece

would leave the euro.

Change in oil pricesince the end of 2010USD/barrel

120110100

908070

Oil price (WTI) Source: ThomsonFinancial Datastream

12/10 12/11 6/126/11 12/12

6

Bond markets in the fiscal year through December 31, 2012

Capital markets under the sway

of the debt crisis

The performance in the international

capital markets in 2012 was character-

ized by uncertainty, mainly triggered by

the sovereign debt crisis, predominant-

ly in the euro area and in the United

States, and the global economic

slowdown. While the U.S. economy

showed relatively modest growth,

clouds gathered over the European

economy. The comparatively robust

economic growth in the emerging-

market countries, particularly China and

India, slowed considerably. This difficult

fundamental environment, along with

with the debt problems in the euro

peripheral countries which escalated

into the summer months, especially in

heavily-indebted Greece, as well as the

banking crisis in Spain initially had a

negative impact on the capital markets.

Investor risk aversion was very high

until summer 2012 as a result.

Reputable interest-bearing instruments,

such as German and Swiss govern-

ment bonds, which were considered

safe havens for investment, profited

from this trend. In order to prevent a

credit crunch, the European Central

Bank (ECB) held fast to its expansive

monetary policy, most recently

expressed by its willingness to

purchase additional bonds. As a result,

the crisis in the euro area eased

considerably from August through the

end of 2012. This trend and the climate

of all-time low interest rates encour-

aged investors to search for higher

yields. The resulting surge in prices

enabled the capital markets to record

impressive gains over the year.

Significant price recovery

in the euro periphery

The sovereign debt crisis in the euro area,

which began in April 2010 with the Greek

financial crisis, expanded in the subse-

quent period to include the euro countries

Portugal, Italy, Ireland and Spain. The

measures taken by the European Union

(EU) and the International Monetary Fund

(IMF) initially failed to have the desired

impact and only had temporary stabilizing

effects. Instead, the financial markets

remained skeptical that the consolidation

efforts by the euro peripheral countries

would be successful, especially in the

Southern European debtor countries.

Alongside Greece, Spain also increasingly

attracted attention. Not only the weak-

ness of the euro areas fourth largest

economy, but also the crisis in the

Spanish banking sector, which required

government intervention, further reduced

the confidence of market participants and

initially increased the pressure on the

bonds of financially weak euro states.

However, since ECB president Draghi

announced at the end of July 2012 that

the European Central Bank would do all

that was necessary to uphold the euro,

prices on bonds of the euro periphery

countries rose noticeably, albeit to varying

degrees. Consequently, with the

exception of Spain, this brought about an

appreciable reduction in their risk

premiums in the second half of the year.

Ultimately, the bond markets of Ireland,

Italy, Portugal and above all Greece were

able to record a noticeable to strong gain

on an annual basis. In September 2012

this development was backed up by the

German Federal Constitutional Court

ruling that enabled Germany to join the

European Stability Mechanism (ESM) and

become involved in the fiscal pact. In

addition, at the beginning of September

the ECB indicated its willingness to buy

unlimited government bonds of financially

weak euro countries, in order to ensure

that the central banks would pursue a

uniform monetary policy in all countries of

the euro area. However, the countries

concerned would then be subject to strict

controls of the European Financial

Stability Facility. This announcement by

the ECB gave particular momentum to the

previously tarnished bonds from the euro

periphery. On balance, this investment

segment fared better as a result than

bond investments in the low interest-rate

core markets, for example Germany.

Economic growth in the U.S., the euro area, Japan, the BRIC countries(Brazil, Russia, India, China) and the worldEconomic growth compared to the previous year

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-0.0%

* EstimatesSource: Deutsche Bank

2011 2013*2012

U.S.Euro areaJapan

BRIC countries:BrazilRussiaIndiaChina

World

7

Corporate bonds displaying

a sharp price increase

The corporate bonds markets recorded

significant price increases overall with

fluctuations. The initial reticence of

investors was replaced in the second half

of the year with increasing interest from

investors seeking higher yields com-

pared to government bonds. This

culminated in a price rally for corporate

bonds. This development was also

supported by a reduction in debt at

company level and the positive refinanc-

ing opportunities due to the low

interest-rate policy pursued by central

banks. Over the year, high-yield bonds in

particular, but also corporate bonds with

ratings of BBB and higher by leading

rating agencies outperformed compara-

ble government bonds on balance.

Bonds of core countries

with historically low interest rates

In the search for safe investments,

investors took refuge, for instance, in

government bonds of core markets, e.g.

from Germany, Switzerland and the U.S.

As a result, yields on these bonds, which

were already low by international

comparison continued to fall and reached

all-time lows at times, while prices rose.

For example, the yield on German

government bonds with a term to

maturity of ten years was at a record low

of 1.13% p.a. on July 23, 2012. Later in

the period, however, a slight upturn set

in, not least in light of the ECB announce-

ment that it would purchase unlimited

bonds of financially weak euro countries.

Overall, in the 10-year maturity segment,

yields on German government bonds fell

from 1.8% to 1.3% p.a., U.S. government

bonds from 1.9% to 1.8% p.a. and Swiss

government bonds from 0.7% to

0.6% p.a. during the fiscal year through

the end of December 2012. After the

previous slight rise, yields on Japanese

government bonds were back down to

considerably below the one-percent

mark, most recently 0.8% p.a. from

May to the end of December 2012.

Given the high levels of uncertainty in

the capital markets, investors in German

government bonds, one of the few

European countries with an AAA rating

from the leading ratings agencies, even

accepted negative real interest rates in

the end, on the basis of the inflation rate

as at the reporting date.

Recent recovery of the euro

The government debt crisis in the euro

periphery, combined with the discussion

on Greece potentially leaving the

European Monetary Union and the

Spanish banking crisis, resulted in

considerable currency reallocations by

international investors. As a result, the

European common currency came under

significant pressure in the first half of

2012. It was listed at USD 1.2085 at the

end of July, a decline of 6.6% since the

beginning of the year. From August 2012,

however, hopes of a stabilization in the

euro area and the considerable monetary

easing by the Fed boosted the euro,

which then more than recouped its

previous losses. On balance, the euro

gained 2.0% against the greenback in

2012. The U.S. dollar had to relinquish its

relative strength against the euro due to

capital outflows, which were consider-

able at times. The reasons for this

included the high U.S. federal deficit and

the continued weakness in economic

growth in the U.S. In September 2012,

the latter caused the Fed to launch a

major bond purchasing program for the

third time since the outbreak of the

financial crisis. Accordingly, it intends to

purchase unlimited mortgage bonds for

USD 40 billion a month in future. In

addition, it aims to retain its low interest

policy (target range: 0.00-0.25% p.a.)

until 2015. The Bank of Japan continued

its virtually zero-interest policy and

expanded its bond purchasing program

in order to ease the pressure on Japans

export-oriented economy. At the end of

2012, the value of the yen against the

euro was 12.6% weaker than in the

previous year.

Risk premiums with respectto German government bondsfor ten-year government bondsfrom the euro periphery

% points

42

35

28

21

14

7

0

Source: ThomsonFinancial Datastream

PortugalItalyIrelandGreeceSpain

12/09 12/1212/1112/106/10 6/11 6/12

8

General information

The funds described in this report

are sub-funds of a SICAV (Socit

dInvestissement Capital Variable)

incorporated under Luxembourg law.

Performance

The investment return, or performance,

of a mutual fund investment is

meas ured by the change in value of the

funds shares. The net asset values per

share (= redemption prices) with the

addition of intervening distributions,

which are, for example, reinvested free

of charge within the scope of invest-

ment accounts at DWS, are used as

the basis for calculating the value.

Performance is calculated according to

the BVI method (used by the BVI, the

main German investment fund industry

association), i.e., excluding the initial

sales charge. Past performance is not

a guide to future results. The 63 sub-

funds currently offered are available in

up to 13 share classes (described in

this report). This may give rise to

differences in the performance of the

respective share classes. The corre-

sponding benchmarks if available

are also presented in the report.

All financial data in this publication is

as of December 31, 2012 unless

otherwise stated. For the realized gains

or losses reported in the financial

statements or in the statement of

changes in net assets of the respective

sub-funds, positive and negative results

within the same product category are

netted in each case; across product

categories, negative or positive result

balances on a gross basis are reported

as the realized loss or gain.

In accordance with the sales prospec-

tus, the expenses detailed in item 12(b)

are limited to 15% p.a. (for mixed

funds, bond funds and equity funds)

and 7.5% p.a. (for money market

funds). If this expense cap is exceeded,

the management fee shown in the

statement of income and expenses

is reduced accordingly.

Sales prospectuses

Sub-fund shares are purchased on the

basis of the current sales prospectus,

the by-laws of the SICAV and the

key investor information document

in combination with the latest audited

annual report and any semiannual

report that is more recent than the

latest annual report.

Publication of the net asset

value per share and of the

issue and redemption prices

The respective net asset values

per share, the current issue and

redemption prices including the initial

sales charge and the redemption fee,

as well as all other information for

shareholders may be requested at any

time at the registered office of the

Management Company and from the

paying agents. In addition, depending

on customary market practice, the net

asset values per share and/or the issue

and redemption prices are also

published in every country of distribu-

tion through appropriate media (such

as the Internet, electronic information

systems, newspapers, etc.).

9

Liquidations of share classes of sub-funds

The DS1H share class of the sub-fund DWS Invest Alpha Opportunities was closed effective December 19, 2012, by resolution of the management authorized by the Board of Directors of DWS Investment S.A.

The DS1H, A2H and E2H share classes of the sub-fund DWS Invest Alpha Strategy were closed effective December 19, 2012, by resolution of the management authorized by the Board of Directors of DWS Investment S.A.

Renamed sub-funds

The sub-fund DWS Invest Multi Asset Balance was renamed DWS Invest DYMOND effective April 1, 2012.

The sub-fund DWS Invest Top Dividend Europe was renamed DWS Invest European Value effective April 1, 2012.

The sub-fund DWS Invest Multi Asset Momentum was renamed DWS Concept ets effective April 1, 2012.

The sub-fund DWS Invest Tarvos was renamed DWS Latin American Equities effective October 1, 2012.

Renamed share classes

The sub-fund DWS Invest Top Dividend: The share classes A2H, CH2H and CH4H were renamed A2H (P), CH2H (P) and CH4H (P) effective April 1, 2012.

The sub-fund DWS Invest US Value Equities: The share classes LCH and NCH were renamed LCH (P) and NCH (P) effective April 1, 2012.

Mergers of SICAV-external funds with sub-funds of the SICAV

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the sub-fund DWS Institutional Euro Corporate Bonds of the SICAV DWS Institutional was incorporated into the sub-fund DWS Invest Euro Corporate Bonds (LD share class) effective July 16, 2012. The exchange factor was 102.6397847.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the fund DWS Euro-Corp High Yield was incorporated into the sub-fund DWS Invest Euro High Yield Corporates (LD share class) effective July 30, 2012. The exchange factor was 0.3351623.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the fund Global Fund was incorporated into the sub-fund DWS Invest Top Dividend (LD share class) effective August 30, 2012. The exchange factor was 0.5672409.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the fund DWS Brazil was incorporated into the sub-fund DWS Invest Brazilian Equities (LC share class) effective October 23, 2012. The exchange factor was 1.4148011.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the fund DWS Lateinamerika was incorporated into the sub-fund DWS Invest Latin American Equities (LC share class) effective October 26, 2012. The exchange factor was 3.2446552.

10

Liquidations of sub-funds

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the sub-fund DWS Invest Income Strategy Dynamic was liquidated effective March 29, 2012. The issue of new sub-fund shares was discontinued effective March 9, 2012. Investors could return sub-fund shares until March 22, 2012.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the sub-fund DWS Invest Diversified Fixed Income Strategy was liquidated effective October 31, 2012. The issue of new sub-fund shares was discontinued effective October 24, 2012. Investors could return sub-fund shares until October 24, 2012.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the sub-fund DWS Invest Real Assets was liquidated effective October 31, 2012. The issue of new sub-fund shares was discontinued effective October 22, 2012. Investors could return sub-fund shares until October 22, 2012.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the sub-fund DWS Invest RREEF Asia-Pacific Real Estate Securities was liquidated effective December 17, 2012. The issue of new sub-fund shares was discontinued effective December 10, 2012. Investors could return sub-fund shares until December 10, 2012.

Mergers of sub-funds within the SICAV

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the sub-fund DWS Invest Japanese Equities was incorporated into the sub-fund DWS Invest Top 50 Asia effective July 18, 2012.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the sub-fund DWS Invest US-Gov Bonds was incorporated into the sub-fund DWS Invest Government Liquidity Fund effective July 23, 2012.

Following a resolution to that effect adopted by the Board of Directors of the SICAV and the approval of the Luxembourg supervisory authority CSSF, the sub-fund DWS Invest Global Inflation Strategy was incorporated into the sub-fund DWS Invest Global Inflation Linked Bonds effective November 13, 2012.

2012Annual report

12

DWS Concept ets(until March 31, 2012: DWS Invest Multi Asset Momentum)

Investment objective and

performance in the reporting period

The objective of the investment policy of

DWS Concept ets (until March 31, 2012:

DWS Invest Multi Asset Momentum) is

to achieve sustained capital apprecia-

tion. The sub-fund invests in accordance

with the ETS QuAM methodology,

which pursues the objective of active

risk limitation when markets are bearish

and capitalization of the assets when

markets are bullish. The goal is thus to

achieve a positive long-term investment

performance, bearing in mind the

opportunities and risks in the interna-

tional equity and bond markets.

In 2012, the investment climate was

characterized by the sovereign debt

crisis, particularly in the euro periphery,

weakening global economic growth and

all-time low interest rates in the core

markets such as Germany. Against this

difficult backdrop, the sub-fund achieved

an appreciation of 5.1% per share (LC

share class, in euro terms; BVI method)

in the fiscal year from January 1, 2012,

through December 31, 2012.

Investment policy

in the reporting period

ETS QuAM methodology is a Global

Tactical Asset Allocation (GTAA) with

the target of controlling the risk of the

portfolio. The concept is based on a

quant driven Multimanager product

based on funds. The investment

process is objective and relies on the

systematic screening of a global and

diversified pool of investment funds

(with a focus on funds of the DWS

Group, Blackrock and Schroders as of

Performance of share classes (in euro)

Share class ISIN 1 year Since inception1)

Class LC LU0507267119 5.1% 6.3%

Class LD LU0507267465 5.1% 5.0%

Class NC LU0507267382 4.5% 5.0%

1) Classes LC and NC on August 2, 2010/Class LD on September 20, 2010

BVI method performance, i.e., excluding the initial sales charge. Past performance is no guide to future results. As of: December 31, 2012

DWS CONCEPT ETSPerformance since inception

107106105104103102101100

DWS Concept ets (LC share class) * Launched on August 2, 2010 = 100Data on euro basis

8/2/10*

BVI method performance, i.e., excluding the initial sales charge. Past performance is no guide to future results.As of: December 31, 2012

12/10 12/126/11 12/11 6/12

13

the reporting date) to eliminate any

human subjectivity without leverage

or shorting. Money market, fixed

income, balanced and equity funds are

all considered with no restriction

regarding the investment process. DWS

Concept ets is an ETS QuAM product

with a pre-set risk level defined by a

volatility limit of 10% and invested in

a large and diversified asset universe.

In line with this investment policy, the

sub-funds investments were broadly

diversified globally. As of the reporting

date at the end of December 2012, the

proportion of equity funds in the

portfolio had increased to around 49%

of the sub-funds net assets after

standing at 4.9% at the end of 2011.

This was the result of the continued

stabilization of the stock market

climate in the second half of the year.

While at 38.0% the share of the

sub-funds assets allocated to bond

funds was virtually unchanged from the

previous year (37.1%), the share of the

sub-funds assets allocated to money

market funds was 9.2% at the end of

2012 (end of 2011: 52.5% of the

sub-funds assets). Based on this asset

allocation, the sub-fund, viewed across

the entire fiscal year, was able to

noticeably limit price fluctuations and

avoid burdens on the net asset value

per share.

DWS CONCEPT ETSComposition

Investment fundsMoney market fundsCash and other assets

9.287.7

3.1

0 20In % of the funds net assets in securities As of: December 31, 2012

1006040 80

14

DWS Invest Africa



DWS Invest Africa, which focuses on

the African continent, generally invests

in companies with strong earnings, a

good market positioning and a solid

balance sheet. Abundance of natural

resources, infrastructure spending and

consumer growth play an especially big

part in the selection of individual

stocks. In the fiscal year through the

end of December 2012, the sub-fund

benefited from the continuing robust,

global economic performance, despite

the pressures of the sovereign debt

crisis in the euro area and the

U.S. fiscal cliff. In this environment, it

achieved an appreciation of 7.6%

(LC share class, BVI method) but was

thus behind its benchmark, the S&P

Africa 40 Net Index, which was up

8.8% (both percentages in euro terms).

Investment policy


The underperformance against the

benchmark was due primarily to the

high trading costs on the African stock

exchanges. As many of these markets

are still underdeveloped and therefore

relatively illiquid, pricing can be difficult.

This is particularly evident, for example,

in weak phases. Among other factors,

the political changes in North Africa

and the Middle East dampened the

sales and earnings of African compa-

nies. This perceptibly weakened the

performance of the sub-fund and also

that of the benchmark. In the first half

of the fiscal year, the portfolio partici-

pated in selected stocks in the

commodities sector. This included in

particular investments in the oil & gas

sector, for example, in Africa Oil,

whose share price was boosted by

greater development potential opening

up for the company in East Africa.

As the fiscal year progressed, DWS

Invest Africa profited from price gains

by Nigerian banks, which formed an

investment focus in the portfolio and

were acquired at attractive valuation

levels. The stocks benefited from the

favorable macropolitical development

in the country. At the end of the

reporting period, prices of smaller

banks contained in the sub-fund also

recorded gains.

In contrast, the underweight in South

African companies, particularly in the

banking and telecoms sectors, had a

dampening effect on performance.

Since some of these companies paid

high dividends, investments here were

Performance of share classes vs. benchmark (in euro)

Share class ISIN 1 year 3 years Since inception1)

Class LC LU0329759764 7.6% 14.9% 19.2%

Class LD LU0363465583 7.6% 14.9% 19.6%

Class NC LU0329759848 7.0% 12.9% 16.8%

Class FC LU0329759921 8.6% 18.1% 25.0%

Class A22) LU0329761075 9.8% 6.9% 2.6%

Class DS13) LU0399357671 5.1% 4.8% 81.1%

S&P Africa 40 Net Index (in euro) 8.8% 35.9% 37.5%

1) Classes LC, LD, NC, FC and A2 on July 10, 2008/Class DS1 on January 20, 20092) in USD3) in GBP


DWS INVEST AFRICAPerformance since inception

14513011510085705540

* Launched on July 10, 2008 = 100Data on euro basis

DWS Invest Africa (LC share class)

7/10/08*


12/1012/08 12/09 12/1212/11

15

particularly favored by more conser

vative investors. In spite of the higher

valuations, the shares profited to a

degree from their defensive character

istics, in particular the telecommunica

tions firms with a panAfrican

orientation.

In the Egyptian equity market, some

stocks like Commercial International

Bank had a good run. However,

DWS Invest Africa was only able to

participate in this partially because

the political and economic situation in

Egypt remained unstable; this fact was

also clear in the pronounced volatility

(price movements).

DWS INVEST AFRICASector allocation

Equities: 98.1MaterialsEnergyFinancialsTelecommunication ServicesConsumer DiscretionaryIndustrialsConsumer StaplesNot classified by MSCI systemCash and other assets

30.622.3

3.23.1

33.1

3.2

1.61.01.9

0 10In % of the funds net assets

20 30As of: December 31, 2012

40

16



The sub-fund seeks to achieve

sustained capital appreciation. On the

basis of a portfolio that approximates

the money market, the management

employs various alpha strategies*

while using derivative financial

instruments in order to profit from the

relative fluctuations in prices and rates

in the bond, currency and equity

markets. Indices/currencies and

instruments regarded positively are

bought (long positions), and/or issues

regarded negatively are sold (short

positions) at the same time. In the

process, derivatives are primarily

implemented in the form of long/short

pairs, and a market-neutral portfolio

structure is sought.

In 2012, the performance of the capital

markets was heavily impacted by the

sovereign debt crisis, particularly in the

euro periphery, weakening global

economic growth, all-time low interest

rates in the core markets such as

Germany and the United States, and

major fluctuations in the currency

markets. Against this backdrop, DWS

Invest Alpha Opportunities registered

a decline of 3.2% per share (LC share

class, in euro terms; BVI method) in

the twelve months through the end

of December 2012.

Investment policy


Given the uncertainty in the interna-

tional capital markets, the sub-fund

had a partially defensive orientation in

some phases. It focused its invest-

DWS Invest Alpha Opportunities (LC share class)

DWS INVEST ALPHA OPPORTUNITIESFive-year performance

105.0102.5100.097.595.092.590.087.5

* 12/2007 = 100Data on euro basis


12/07* 12/08 12/09 12/10 12/1212/11

DWS Invest Alpha Opportunities

2) in GBP

Liquidation of the share class

Share class ISIN Liquidation proceeds

Class DS1H2) LU0399357754 92.42


Share class ISIN 1 year 3 years 5 years Since inception1)

Class LC LU0298689307 -3.2% -8.0% -7.4% -3.5%

Class LD LU0363469494 -3.2% -7.9% -9.1%

Class NC LU0298696690 -3.7% -8.9% -9.2% -5.6%

Class FC LU0298696856 -2.7% -6.7% -5.0% -0.4%

Class DS1H2)3) LU0399357754 -2.0% -8.6% -7.6%

1) Classes LC, NC and FC on June 18, 2007/Class LD on July 1, 2008/Class DSH1 on March 23, 20092) in GBP3) Liquidated on December 19, 2012


17

ments on the currency and bond

markets. On the bond side, in view

of the all-time low interest rate

environment and the uncertainties

about interest rates, the management

went short in the first quarter and the

second half of 2012, for example in

Canadian and U.S. bonds with a

residual term of ten years. This allowed

the sub-fund to profit from the

temporary drop in prices in this

investment segment. The investments

on the bond side made an overall

positive contribution to performance.

However, investments on the currency

side had a negative impact on the

performance of DWS Invest Alpha

Opportunities and largely explain its

decline in value in 2012. In view of the

initial pressure on the euro, the

sub-fund held, for example, long

positions in the Japanese yen, the

Canadian and Australian dollars and in

the U.S. dollar. However, the single

European currency then unexpectedly

recovered against these currencies

towards the end of the year. This had

a significant adverse effect on the

investment performance.

* Additional information about Alpha Strategies is contained in the sales prospectus.

18

DWS Invest Alpha Strategy




sustained capital appreciation. On the

basis of a portfolio that approximates

the money market, the management

employs various alpha strategies*

while using derivative financial

instruments in order to profit from the

relative fluctuations in prices and rates

in the bond, currency and equity

markets. Indices/currencies and

instruments regarded positively are

bought (long positions), and/or issues

regarded negatively are sold (short

positions) at the same time. In the

process, derivatives are primarily

implemented in the form of long/short

pairs, and a market-neutral portfolio

structure is sought.

In 2012, the performance of the capital

markets was heavily impacted by the

sovereign debt crisis, particularly in

the euro periphery, weakening global

economic growth, all-time low interest

rates in the core markets such as

Germany and the United States, and

major fluctuations in the currency

markets. Against this backdrop, DWS

Invest Alpha Strategy registered a

decline of 1.6% per share in the 2012

fiscal year (LC share class, in euro

terms; BVI method).

Investment policy


Given the uncertainty in the inter-

national capital markets, the sub-fund

had a partially defensive orientation in

some phases. It focused its invest-



Class LC LU0195139711 -1.6% -1.8% 0.1% 14.3%

Class LD LU0363469577 -1.5% -1.8% -0.3%

Class NC LU0195140057 -2.0% -3.2% -2.1% 10.0%

Class FC LU0195140214 -1.1% -0.7% 2.2% 18.8%

Class A2H2)4) LU0273170067 -1.2% -7.8% -6.1% 14.5%

Class E2H2)4) LU0273179282 -0.5% -6.2% -1.3% 21.0%

Class DS1H3)4) LU0399357911 -0.9% -1.9% -0.2%

1) Classes LC, NC and FC on August 30, 2004/Classes A2H and E2H on November 20, 2006/Class LD on July 1, 2008/ Class DS1H on March 23, 2009

2) in USD3) in GBP4) Liquidated on December 19, 2012


1) in USD2) in GBP

Liquidation of the share classes

Share class ISIN Liquidation proceeds

Class A2H1) LU0273170067 114.51

Class E2H1) LU0273179282 121.00

Class DS1H2) LU0399357911 99.82

DWS INVEST ALPHA STRATEGYFive-year performance

1051041031021011009998

DWS Invest Alpha Strategy (LC share class)



12/09 12/10 12/11 12/1212/0812/07*

19

ments on the currency and bond

markets. On the bond side, in view of

the all-time low interest rate environ-

ment and the uncertainties about

interest rates, the management went

short in the first quarter and the second

half of 2012, for example in Canadian

and U.S. bonds with a residual term of

ten years. This allowed the sub-fund to

profit from the temporary drop in prices

in this investment segment. The

investments on the bond side made an

overall positive contribution to perfor-

mance. However, investments on the

currency side had a significantly

negative impact on the performance of

DWS Invest Alpha Strategy in 2012. In

view of the initial pressure on the euro,

the sub-fund held, for example, long

positions in the Japanese yen, the

Canadian and Australian dollars and in

the U.S. dollar. However, the single

European currency then unexpectedly

recovered against these currencies

towards the end of the year. This had an

adverse effect on the investment

performance.

* Additional information about Alpha Strategies is contained in the sales prospectus.

20

DWS Invest Asia Pacific ex-Japan



DWS Invest Asia Pacific ex-Japan

invested primarily in equities of issuers

having their registered offices or their

principal business activity in the

Asia-Pacific region (excluding Japan).

In the period from the beginning

of January through the end of

December 2012, the sub-fund achieved

an appreciation of 18.9% per share

(LC share class, BVI method). Its

benchmark, the MSCI AC Asia ex

Japan, recorded a gain of 19.8% in the

same period (both percentages in euro

terms).

Investment policy


The sub-fund lagged behind its

benchmark primarily due to its

underweighting of financial stocks,

which turned in an above-average

performance as a result of strong

investor demand. Furthermore, the

more heavily weighted investments

in the cyclical consumer goods and

industrial sectors failed to meet

expectations. The slowdown in

economic growth in China could be

seen clearly here.

Among the stocks recording a

below-average performance in the

reporting period were, for example,

the Chinese textile manufacturer

International Taifeng, whose share

price fell against the background of a

dividend cut. The investment in the

airline Air Asia also underperformed as

the announcement of the entry of a



Class LC LU0544569055 18.9% 1.5%

Class LD LU0544569139 18.9% 1.5%

Class NC LU0544569212 18.0% 0.5%

Class FC LU0544569303 20.0% 2.8%

MSCI AC Asia ex Japan (in euro) 19.8% 6.4%

1) Classes LC, LD, NC and FC on August 1, 2011


DWS INVEST ASIA PACIFIC EX-JAPANPerformance since inception

103.5100.096.593.089.586.082.579.0

DWS Invest Asia Pacific ex-Japan (LC share class) * Launched on August 1, 2011 = 100Data on euro basis

8/1/11* 9/11


12/11 3/12 6/12 12/129/12

21

competitor raised fears of increasing

competitive pressure. The Chinese

internet search engine Baidu, which is

included in the portfolio, was also hurt

by the emergence of a competitor.

The IT sector, however, yielded an

above average contribution to perfor-

mance overall. The position in Samsung

Electronics turned in a particularly

strong performance due to the growth

in the smartphone business. Also

recording a positive performance were

Tencent, which is included in the

portfolio, due to its advantageous

positioning in the market for online

games, and the position in Super

Group. The Singaporean manufacturer

of consumer products had strong sales

growth and an attractive valuation. In

the course of the reporting period,

profits were realized here to a certain

extent.

The fund management also added

China Medical System, among others,

to the portfolio in the reporting period.

The pharmaceutical industry service

provider was supported by its compara-

tively favorable valuation and high profit

margins.

DWS INVEST ASIA PACIFIC EX-JAPANSector allocation

Equities: 91.2FinancialsInformation TechnologyConsumer DiscretionaryIndustrialsEnergyTelecommunication ServicesConsumer StaplesMaterialsHealth CareUtilitiesNot classified by MSCI systemWarrantsCertificatesCash and other assets

24.519.5

10.25.5

15.2

5.04.7

2.02.0

1.80.8

6.6

1.4


15 3020As of: December 31, 2012

25

0.8

22

DWS Invest Asian Small/Mid Cap



The investment focus of DWS Invest

Asian Small/Mid Cap was on equities

of Asian companies with small and

medium market capitalizations. In the

fiscal year through the end of Decem-

ber 2012, the sub-fund recorded an

appreciation of 24.7% per share

(LC share class, BVI method). Its

benchmark recorded a gain of 18.8%

in the same period (both percentages

in euro terms).

Investment policy


The funds outperformance of its

benchmark was due primarily to the

successful selection of individual

stocks. The shares that posted an

above-average performance included,

for example, the foodstuffs manufac-

turers, Super Group (Singapore) and

Vitasoy (Hong Kong), which recorded

promising growth and profited from

the rise in consumption across Asia.

The companies furthermore benefited

from the fact that their profit margins

rose due to advantageous procurement

prices for raw materials.

Rising income levels across broad

social strata also favored a new

investment in the Indonesian shopping

center operator, Pakuwon Jati. The

leading Thai manufacturer of ceramic

tiles, Dynasty Ceramic, was a promis-

ing investment given its high balance

sheet quality, attractive returns on

capital and a shareholder-friendly

dividend policy.


Share class ISIN 1 year 3 years 5 years

Class LC LU0236153390 24.7% 25.6% 5.2%

Class LD LU0236153556 24.7% 25.7% 5.8%

Class NC LU0236154448 23.8% 23.2% 1.6%

Class FC LU0236154950 25.7% 28.4% 8.8%

Class LS LU0254485450 24.7% 29.0% 9.3%

Class A21) LU0273161744 26.4% 17.8% 0.0%

Class E21) LU0273175025 29.0% 20.9% 1.4%

MSCI AC Asia ex Japan Small Cap TR Net since April 12, 2012 (in euro) formerly: 18.8% 23.2% -5.2% FTSE Asia Pacific Smallcap ex Japan (Euro)

1) in USD


DWS INVEST ASIAN SMALL/MID CAPFive-year performance

1241121008876645240


DWS Invest Asian Small/Mid Cap (LC share class)


12/09 12/10 12/11 12/1212/0812/07*

23

On the other hand, AAC Technologies

and Airtac were removed from the

portfolio. The management realized

gains on the investment in AAC

Technologies following a strong

increase in the share price. The

potential for further price gains

appeared limited for the time being for

the producer of acoustic components.

This was also true for the manufacturer

of pneumatic components, Airtac, due

to a subdued business environment.

Xingda International, another company

in the portfolio, also started to feel the

effects of the deterioration in the

general business environment.

Increasing competitive pressure

and weak demand for the companys

products led to a below-average

performance for the tire cord manu-

facturers share price. The investment

in Comba Telecom also recorded a

disappointing performance. The

telecommunications equipment

suppliers operating environment

deteriorated due to large cuts in capital

spending by important customers.

DWS INVEST ASIAN SMALL/MID CAPSector allocation

Equities: 96.8Consumer DiscretionaryConsumer StaplesInformation TechnologyIndustrialsHealth CareMaterialsFinancialsUtilitiesCash and other assets

27.126.4

11.59.6

9.25.65.5

1.9

0 25In % of the funds net assets As of: December 31, 2012

105 15 35

3.2

20 30

24

DWS Invest Brazilian Equities



DWS Invest Brazilian Equities focuses

its investments on companies which

have their registered offices in Brazil or

conduct their business activities

predominantly in Brazil. In the relatively

short reporting period from October 1,

2012 (inception date) through the end

of December 2012 the sub-fund

recorded a decline of 1.8% per share

(LC share class, BVI method) in what

was a difficult market environment.

Its benchmark, the MSCI Brazil 10/40

Net TR, recorded a gain of 1.3% in the

same period (both percentages in euro

terms).

Investment policy


In a move to stimulate growth, the

Brazilian central bank cut interest rates

to a new all-time low and introduced

various incentives (e.g. tax relief, credit

lines, import duties). These measures

helped stimulate consumption but

were so far unable to bring about

significant growth in industrial produc-

tion. Against the backdrop of the

uncertain market environment and

sector-specific issues, the sub-fund

was underweighted in equities from

the banking and basic materials

sectors. However, stocks from both

segments reported an appreciable

price recovery in the reporting period,

after they had considerably underper-

formed other sectors in the first three

quarters of the 2012 calendar year. The

lower weighting of these equities in

the portfolio was also a key factor in


Share class ISIN Since inception1)

Class FC LU0616857586 1.9%

Class LC LU0616856935 -1.8%

Class NC LU0616857313 -1.9%

MSCI Brazil 10/40 Net TR in EUR (RI) 1.3%

1) Classes LC and NC on October 1, 2012/Class FC on October 24, 2012


DWS INVEST BRAZILIAN EQUITIESPerformance since inception

10099989796959493

DWS Invest Brazilian Equities (LC share class) * Launched on October 1, 2012 = 100Data on euro basis

10/1/12*


10/12 11/12 12/12

25

the underperformance of the sub-fund

compared to its benchmark. On the

other hand, the increased holding in

Gafisa from the real estate sector,

whose equities were acquired at a

noticeably reduced price, proved

favorable. The decline of the property

development business and higher

levels of debt within the sector initially

weighed on equity prices. The improve-

ment in business prospects later in the

period, underpinned by better-than-

expected quarterly results, however,

subsequently triggered an above-aver-

age increase in the stock price. The

holding in the drug store operator

Brazil Pharma, which profited from the

considerable recovery in consumer

spending and positive growth expecta-

tions, also made a solid contribution to

performance. Favorable growth

prospects also supported the decision

to invest in the trading company

Cia. Brasileira de Distribuicao. Never-

theless, increasing concerns of a stock

sale by a major investor weighed on

performance.

DWS INVEST BRAZILIAN EQUITIESSector allocation

Equities: 99.4FinancialsConsumer StaplesMaterialsConsumer DiscretionaryEnergyIndustrialsInformation TechnologyHealth CareCash and other assets

20.513.3

7.86.6

36.3

1.4

9.3

4.2

0.6

0 20 30 4010In % of the funds net assets As of: December 31, 2012

50

26

DWS Invest BRIC Plus



The sub-fund DWS Invest BRIC Plus

invests in Brazilian, Russian, Indian and

Chinese equities. In the fiscal year

through the end of December 2012,

the sub-fund operated in a tense

capital market climate in the wake of

the sovereign debt crisis in Europe

and the United States, weaker global

economic growth and at times severe

fluctuations in the currency markets.

The equity markets in the emerging

markets temporarily came under

heavy price pressure. Nevertheless,

the fundamental conditions for

economic growth in the international

context remained robust, supported

by solid domestic demand.

Against this backdrop, DWS Invest

BRIC Plus achieved a gain of 4.9% per

share (LC share class, BVI method) and

was thus behind its benchmark, the

MSCI BRIC, which rose by 12.2%

(both percentages in euro terms).

Investment policy


The underperformance in comparison

to the benchmark was due, among

other things, to the recovery of

underweighted Indian equities, which,

particularly at the start of the year, rose

significantly, supported by the weak-

ness of the rupee in the currency

markets.

In addition, the management adopted

an increasingly defensive approach in

order to limit price risks. The liquidity



Class LC LU0210301635 4.9% -7.5% -33.8% 79.5%

Class LD LU0210302013 4.9% -7.5% -33.8% 79.4%

Class NC LU0210302286 4.1% -9.4% -36.1% 69.5%

Class FC LU0210302369 5.7% -5.4% -31.1% 91.2%

Class A22) LU0273227784 6.8% -14.6% -38.3% 4.2%

Class E22) LU0273227354 7.8% -11.7% -37.7% 5.5%

Class DS13) LU0399358059 3.0% -14.7% 44.9%

MSCI BRIC (in euro) 12.2% 7.0% -14.9% 171.3%

1) Classes LC, LD, NC and FC on March 29, 2005/Classes A2 and E2 on November 20, 2006/ Class DS1 on January 19, 2009

2) in USD3) in GBP


DWS INVEST BRIC PLUSFive-year performance

10091827364554637

DWS Invest BRIC Plus (LC share class)



12/08 12/09 12/10 12/1112/07* 12/12

27

position was more than 4% of the

sub-funds net assets at times. In

general, the management also favored

more defensive equities with high

earnings transparency and liquidity

(blue chips) to the detriment of

medium-sized equities whose

weighting was reduced accordingly.

In view of the uncertainties surround-

ing the sovereign debt crisis, equities

in the financial sector were significantly

underweighted (in Asia); however, they

were among the outperformers.

To stimulate economic growth, the

Brazilian central bank reduced key

interest rates to a record low level

while at the same time introducing

additional stimulus measures (e.g.

tax cuts, expansion of credit, import

duties). These measures helped

stimulate consumption but have so

far been unable to support significant

growth in industrial production. In light

of the uncertain market environment,

bank equities recorded a significant

underperformance here, in spite of

good longer-term growth prospects.

Positions in the energy sector consider-

ably underperformed expectations

because of political uncertainties in

Mongolia.

DWS INVEST BRIC PLUSSector allocation

Equities: 98.5FinancialsEnergyMaterialsConsumer StaplesInformation TechnologyIndustrialsConsumer DiscretionaryTelecommunication ServicesHealth CareUtilitiesCash and other assets

32.617.1

9.08.1

5.75.6

11.9

6.1

1.60.81.5

In % of the funds net assets As of: December 31, 2012

0 10 20 30 40

28

DWS Invest China Bonds




sustained capital appreciation. To this

end, it invests in bonds of Chinese

issuers denominated in renminbi or

hedged against this currency or in

renminbi-denominated interest-bearing

instruments of global issuers.

In the reporting period, the investment

climate was characterized by the

sovereign debt crisis in the Western

industrial countries, weakening global

economic growth and all-time low

interest rates in the core markets such

as Germany and the United States.


China Bonds achieved an appreciation

of 7.6% per share in the 2012 fiscal

year (A2 share class, in U.S. dollar

terms; BVI method).

Investment policy


87% of the sub-funds assets were

invested in interest-bearing instru-

ments at the end of December 2012.

The management focused its invest-

ments on investment-grade corporate

bonds. On the reporting date most of

these securities had a credit rating of

BBB and better by the leading rating

agencies. High-yield bonds were

included selectively in the portfolio.

A smaller position in government

issues rounded out the portfolio.

In terms of sector allocation, the

sub-fund remained broadly diversified.

Regionally, the focus was on Chinese

issues, which made up approximately

Performance of share classes (in USD)


Class LCH2) LU0632805262 7.1% 6.0%

Class LDH2) LU0740830996 6.1%

Class NCH2) LU0740831614 5.8%

Class FCH2) LU0632808951 7.7% 6.8%

Class A2 LU0616856422 7.6% 6.5%

Class E2 LU0616856778 8.1% 7.3%

Class CH2H3) LU0813327896 0.2%

Class CH4H3) LU0813328357 0.3%

1) Classes A2, E2, FCH and LCH on August 16, 2011/Classes LDH and NCH on April 2, 2012/ Classes CH2H and CH4H on December 10, 2012

2) in euro3) in CHF


DWS INVEST CHINA BONDSPerformance since inception

107.5106.0104.5103.0101.5100.098.597.0

DWS Invest China Bonds (A2 share class)


12/11 3/12 12/129/118/16/11* 6/12

* Launched on August 16, 2011 = 100Data on USD basis

9/12

29

DWS INVEST CHINA BONDSRating distribution of the bonds in the portfolio*

AAAAAABBBBBB

1.16.9

27.249.5

9.06.3

0 10 30In % of the funds net assets in bonds(incl. pro-rata accrued interest)

20 40* Average values based primarily on ratings

by Standard & Poor's, Moody's and Fitch

50 60

Credit quality is adequate, with higher business andfinancial risk. Interest and principal payments aregenerally made without adverse effect on creditquality. The non-investment-grade rating is consistentwith the companys business model.The rating is not consistent with the companys long-term business model. The capacity to pay interest andrepay principal is potentially reduced in the long term.

As of: December 31, 2012

BBtoB

CCCandlower

Extremely strong capacity to pay interest and repay principalVery strong capacity to pay interest and repay principalStrong capacity to pay interest and repay principalAdequate capacity to pay interest and repay principal. Adverseeconomic or sector-specific conditions are more likely to leadto a weakened capacity to pay interest and repay principal.

AAAAAABBB

66% of the sub-funds assets. In

addition, DWS Invest China Bonds

invested in other emerging markets

such as Korea, as well as in Western

industrial countries such as the United

States, France, Japan and Germany.

The management regarded Chinas

disappointing economic growth and

the European debt problems as the

major risks. However, a noticeable

economic recovery commenced in

China in the second half of 2012. This

fact, combined with an emerging

stabilization of the sovereign debt crisis

in the euro periphery, provided a

tailwind for the credit markets. DWS

Invest China Bonds also profited from

its investments in corporate bonds,

which recorded considerable price

increases year on year accompanied

by falling yield spreads over govern-

ment bonds. At the end of the

reporting period, the sub-fund held

a cash position of 12.0%. It was thus

favorably positioned to take advantage

of investment opportunities arising in

the future. As of the end of December

2012, the sub-funds investments had

an average yield of 3.7% p.a.* with an

average term to maturity of 3.0 years.

* Average yield of the sub-funds investments as of the reporting date. This may differ from the nominal yield of the interest-bearing instruments held in the portfolio. The future performance of the sub-fund cannot be derived from this.

30

DWS Invest Chinese Equities



In the fiscal year through the end

of December 2012, the sub-fund

operated in a tough climate dominated

by the sovereign debt crisis in Europe

and the United States, weaker global

economic growth and at times severe

fluctuations in the currency markets.

The equity markets of the emerging-

market countries found themselves

under severe price pressure at times.

Although the fundamental conditions

for economic growth in an international

context remained robust, supported

by solid domestic demand.


Chinese Equities achieved an appre-

ciation of 13.3% per share (LC share

class, BVI method) and was thus

behind its benchmark, the MSCI China

10/40, which gained 20.7% (both

percentages in euro terms).

Investment policy


The underperformance of the portfolio in

2012 was mainly due to the stock

selection in the IT sector (e.g. ePro,

Netease, and the underweighting in

Tencent). Furthermore, the defensive

positioning curbed the sub-fund

development, while markets rallied on

speculation of potential economic

recovery driven by easing of macro

tightening policies by the Chinese

government, reflected in the negative

contribution from cash. The average

cash level was 4% with a negative

contribution to the performance. As the

equity market was volatile during most

months of the last fiscal year, market

timing had become very difficult.

The managements cautious view on

corporate earnings (with zero EPS

growth expected for MSCI China in

2012) was the main reason that the

sub-fund did not add those poor-quality

recovery stocks aggressively, such as

shipping or steel stocks, during the

market rebound, e.g., shipping and

steel stocks.

The management reduced weightings

in consumer discretionary due to poor

outlook for retail sales, and reduced

energy due to weak coal/oil prices,

while adding to financials and industri-

als for more recovery in the second

half of the year.

The portfolio was mainly overweighted

in sectors with good earnings visibility

and with less impact from macro

policy, such as healthcare and IT. Due



Class LC LU0273157635 13.3% 0.4% -11.4% 49.3%

Class NC LU0273145622 12.5% -1.8% -14.5% 43.0%

Class FC LU0273146190 14.2% 2.6% -7.8% 56.9%

Class FD2) LU0616869755 13.6% 9.3%

Class A23) LU0273164177 15.9% -6.8% -18.5% 53.3%

Class E23) LU0273176932 16.5% -5.0% -16.0% 59.4%

Class DS14) LU0333022746 12.2% -7.7% -1.4% -0.5%

MSCI China 10/40 (in euro) 20.7% 16.4% -2.8% 56.1%

1) Classes LC, NC, FC, A2 and E2 on December 15, 2006/Class DS1 on December 21, 2007/Class FD on August 16, 20112) Last share price calculation on December 21, 2012/liquidated on January 31, 2013 3) in USD4) in GBP


DWS INVEST CHINESE EQUITIESFive-year performance

108100928476686052

DWS Invest Chinese Equities (LC share class)


12/09 12/10 12/11 12/1212/0812/07*


31

to concerns on slowing economic

growth, the management under-

weighted equities in the consumer

discretionary and energy sectors. In

order to avoid policy risk on property

stocks, together with concerns on

asset quality of banks, the manage-

ment underweighted financials. The

underweight in consumer discretionary

(due to slower demand), staples

(due to rich valuation), and industrials

(due to slower demand) contributed

positively. The sub-funds underweight

in Financials contributed negatively, as

financials rebounded strongly in 2H on

expectation of more policy easing and

economic recovery.

China Overseas Grand Oceans Group,

a niche property developer focusing on

3rd/4th tier cities with fast growth,

performed above-average leveraged on

its strong brand name and good

reputation. The management sold

property stocks such as Longfor at a

profit after the rebound of property

sector. Additionally, the sub-fund

reduced coal stocks such as Shenhua

at a small profit on concerns of weaker

coal prices.

Furthermore, the management added

Biostime, a milk powder provider

benefiting from strong demand for

quality infant milk power products in

China. China Machinery Engineering, a

contractor for international engineering

projects, was bought at IPO given its

strong earnings growth expectations.

Both stocks showed significant gains.

The equities in the portfolio which

depreciated sharply included ePro,

added to the portfolio on the back of

positive expectations over the growth

of E-commerce. However, the stock

got hit despite its strong earnings

growth because investors avoided

growth stocks during the correction

in the equity markets.

DWS INVEST CHINESE EQUITIESSector allocation

Equities: 93.0FinancialsEnergyTelecommunication ServicesInformation TechnologyConsumer StaplesMaterialsIndustrialsUtilitiesHealth CareConsumer DiscretionaryNot classified by MSCI systemInvestment fundsCash and other assets

38.416.0

7.55.4

4.22.9

10.7

4.3

1.00.9

1.74.3

As of: December 31, 2012


10 50

2.7

20 40

32

DWS Invest Clean Tech



DWS Invest Clean Tech is primarily

involved with companies whose

products and services contribute to the

cleaner production of energy, facilitate

more efficient energy transmission and

help to reduce energy consumption in

general. In the reporting period from

the beginning of January through the

end of December 2012, the sub-fund

appreciated 1.5% per share (LC share

class, BVI method). Its benchmark,

the WilderHill New Energy Global

Innovation, declined by 5.7% in the

same period (both percentages in

euro terms).

Investment policy


In the 2012 fiscal year, the proportion

of North American securities was

increased considerably at the expense

of European stocks, as the fund

management saw the European debt

crisis as a major risk. An increase in

risk aversion among investors went

hand in hand with a deterioration of

the situation in the European peripheral

countries. Against this backdrop, the

management disposed of Spanish

companies from the renewable energy

segment such as Gamesa and Acciona,

whose performance was additionally

dampened by their higher dependency

on subsidies and the excess capacity

within the regenerative energy sector.

The underweighting of equities from

the solar and wind sectors also made

a major contribution to the funds

outperformance of its benchmark, in

light of the structural problems in the

sector. A positive performance,

however, came from Andritz, a

manufacturer of hydro-electric power

plant turbines. The Austrian company

enjoyed good business and equity

price performance, due to strong

demand for its products.

In the reporting period, the proportion

of equities from the natural gas

segment rose considerably, because

the energy source increased in

importance as an environmentally-

friendly and low-priced alternative to

other fossil fuels. The fund participated

in this performance with its invest-

ments in gas producers such as

Petronas Gas and EQT and stocks from

the gas infrastructure segment. The

latter included Flowserve, newly

included in the portfolio, which profited

from an improvement in the profit

margin and the implementation of

restructuring measures.

In the case of MYR Group, whose

activities focused on the field of

operating and expanding power

networks and which benefited from

higher investments in energy infra-



Class LC LU0298649426 1.5% -23.5% -52.9% -52.7%

Class NC LU0298650788 0.7% -25.2% -54.6% -54.7%

Class FC LU0298651596 2.4% -21.5% -50.8% -50.3%

Class A22) LU0298696344 3.2% -29.2% -58.2% -54.5%

Class DS13) LU0329762479 -0.6% -30.1% -48.1% -47.7%

Class K22) LU0329762719 3.4% -29.3% -54.0%

WilderHill New Energy Global Innovation (in euro) -5.7% (introduced on December 21, 2010)

1) Classes LC, NC, FC and A2 on May 14, 2007/Class DS1 on December 21, 2007/Class K2 on April 30, 20082) in USD3) in GBP


DWS Invest Clean Tech (LC share class)

DWS INVEST CLEAN TECHFive-year performance

10092847668605244


12/07*


12/0912/08 12/10 12/11 12/12

33

structure, the management took profits

following good performance. The same

applied to the battery producer Enersys

and the U.S. manufacturer of electric

cars Tesla Motors, which benefited

from strong demand for its car models.

The electrical mobility segment,

however, recorded an uneven perfor-

mance overall. The holding in Cum-

mins, a producer of energy-efficient

motors for use in trucks and construc-

tion machinery, fell short of expecta-

tions due to poor exports to China.

Furthermore, the supplier of batteries

for use in electrical vehicles A123

recorded disappointing performance as

a result of financial problems; the fund

management, however, removed the

companys equities from the portfolio

early on.

DWS INVEST CLEAN TECHSector allocation

Equities: 97.5Industrial MachinerySemiconductorsIndustrial ConglomeratesGas UtilitiesIndependent Electricity ProducersHeavy Electrical EquipmentAutomobile ManufacturersDiversified ChemicalsAerospace & DefenseOil/Gas Storage and TransportIT Consulting & Other ServicesOther sectorsCash and other assets

13.410.0

5.85.6

7.9

5.54.3

3.83.3

3.33.1

31.52.5

100In % of the funds net assets

20As of: December 31, 2012

4030

34

DWS Invest Commodity Plus



DWS Invest Commodity Plus seeks

to maximize long-term capital appre-

ciation by taking advantage of oppor-

tunities in the commodities markets.

The sub-fund carried out its investment

objective through investments in

swaps, forwards, and commodity-

related equities. The necessary liquidity

for the use of derivatives was provided

via a core portfolio of short-term fixed

income securities with investment

grade credit ratings. DWS Invest

Commodity Plus recorded a return

of -0.5% per share (LC share class,

in euro terms; BVI method) in the

fiscal year through the end of

December 2012.

Investment policy


Precious Metals and Agriculture were

among the best performing commodity

sectors. The best performing commodi-

ties were Gasoline, Soybeans and

Corn. Coffee and Natural Gas were

among the worst performing commodi-

ties. The worst performing commodity

sectors were Energy and Livestock.

DWS Invest Commodity Plus remained

almost fully invested in commodities in

the 2012 fiscal year. The sub-fund

benefited from a stronger weighted

position in the precious metals sector.

Specifically, platinum, gold and

palladium all contributed to perfor-

mance during the reporting period.

Platinum prices swung wildly during

the year as labor markets in South


Share class ISIN 1 year 3 years 5 years

Class LC LU0210303920 -0.5% -0.3% -19.3%

Class NC LU0210304068 -1.0% -1.8% -21.4%

Class FC LU0210304142 0.0% 1.4% -16.8%

Class A21) LU0273166545 1.4% -7.7% -27.3%

Class E21) LU0273178987 2.0% -5.5% -20.7%

1) in USD


DWS INVEST COMMODITY PLUSFive-year performance

122.5115.0107.5100.092.585.077.570.0

DWS Invest Commodity Plus (LC share class)



12/08 12/98 12/10 12/1112/07* 12/12

35

Africa disrupted production of the

white metal.

The sub-funds position in agricultural

commodities swung from a lower

weighting at the start of the fiscal

year to a stronger weighting by

mid-year and finally back to a moder-

ately lower weighted position by year

end. Although this positioning would

prove to be correct, the performance

of agricultural commodities was

dampened somewhat by the timing

of the positioning. Within the agricul-

ture sector, the sub-funds position in

3-month forward wheat detracted

from relative performance.

DWS Invest Commodity Plus also

maintained a position in a commodity

currency strategy. The strategy

included Australian dollar, Canadian

dollar, Norwegian krone, Russian

rouble, and South African rand. The

commodity currency strategy per-

formed well during the 2012 fiscal year.

The best performing currency during

the period was Norwegian krone, while

the worst performing currency was

South African rand. Norwegian krone

was viewed as an energy currency.

South African rand was viewed as an

industrial and precious metals currency

and suffered from the consequences of

the labor market unrest in the region.

DWS INVEST COMMODITY PLUSSector allocation

EnergyAgricultural Raw MaterialsIndustrial MetalsPrecious MetalsLivestock

25.332.2

20.7

16.8

5.0

0 10In % of the funds net assets in securities As of: December 31, 2012

403020

36

DWS Invest Convertibles



The sub-fund DWS Invest Convertibles

seeks to achieve sustained capital

appreciation and invests globally mainly

in convertible bonds. Its portfolio posi-

tions are systematically hedged against

currency risks. With this portfolio orien-

tation, it aims at a long-term participa-

tion in the performance of the capital

markets with a limited downward risk

exposure. Against the backdrop of the

positive performance in the interna-

tional equity markets and the easing

of tensions in the bond markets, the

sub-fund posted an appreciation of

8.3% per share (LC share class,

BVI method) in the fiscal year through

December 31, 2012. Its benchmark,

the ML Global 300 Convertible (hedged

in euro), gained 12.8% (both percent-

ages in euro terms).

Investment policy


The management regarded the sover-

eign debt crisis in the euro periphery

countries and the United States along-

side weaker global economic growth

as a major risk. For this reason, and

because of a lack of liquidity, regional

convertible bonds from the euro periph-

ery markets like Italy and Spain were

not given consideration in the sub-fund

in order to limit price risks. In regional

terms, at the beginning of the year

Europe was underweighted because

of the escalating sovereign debt crisis

and Asia and the United States were

overweighted. With the announce-

ment by the European Central Bank

(ECB) in summer 2012 that it would

buy unlimited bonds of financially

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