Sales Prospectus. December 21, DWS Invest. An investment company with variable capital incorporated under Luxembourg law

Transcription

1 Sales Prospectus December 21, 2007 DWS Invest An investment company with variable capital incorporated under Luxembourg law

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3 Table of Contents A. Sales Prospectus 2 General section Additional information for investors in the Federal Republic of Germany 4 Information for investors in Austria 9 B. Sales Prospectus 27 Special section Sub-fund product annexes DWS Invest Alpha Conservative (formerly: DWS Invest Total Return Conservative)* 27 DWS Invest Alpha Opportunities 29 DWS Invest Alpha Strategy 31 DWS Invest Asian Bonds (USD) 33 DWS Invest Asian Currencies 35 DWS Invest Asian Currencies (USD) 37 DWS Invest Asian Equities 130/30 39 DWS Invest Asian Small/Mid Cap 40 DWS Invest Biotech 42 DWS Invest Brazilian Equities 43 DWS Invest BRIC Plus 45 DWS Invest Chinese Equities 47 DWS Invest Climate Change 49 DWS Invest Commodity Plus 51 DWS Invest Convertibles 53 DWS Invest Corporate Spread Dynamic 54 DWS Invest Duration Strategy 56 DWS Invest Dynamic Allocator 57 DWS Invest Emerging Markets Bonds (USD) 61 DWS Invest Emerging Markets Equities 130/30 63 DWS Invest Emerging Markets Top Dividend Plus 65 DWS Invest Emerging Yield Plus 66 DWS Invest Emerging Yield Plus (USD) 68 DWS Invest Energy 70 DWS Invest Euro Bonds (Premium) 72 DWS Invest Euro Bonds (Short) 73 DWS Invest Euro Bonds (X-tra long) 74 DWS Invest Euro Corp Bonds 75 DWS Invest Euro Corp Bonds 130/30 76 DWS Invest EURO Emerging Markets Bonds 77 DWS Invest Euro-Gov Bonds 78 DWS Invest EURO Reserve 79 DWS Invest European Bonds 130/30 81 DWS Invest European Dividend Plus 82 DWS Invest European Equities 85 DWS Invest European Equities (Premium) 84 DWS Invest European Equities 130/30 85 DWS Invest European Small/Mid Cap 87 DWS Invest European Stars 89 DWS Invest European Value 90 DWS Invest FX Opportunities 91 DWS Invest FX Opportunities (USD) 93 DWS Invest German Equities 95 DWS Invest Global Agribusiness** 96 DWS Invest Global Bonds 98 DWS Invest Global Convergence Bonds 99 DWS Invest Global Equities 101 DWS Invest Global Equities 130/ DWS Invest Global ex Japan (USD) 104 DWS Invest Global High Yield Bonds*** 105 DWS Invest Global Infrastructure 106 DWS Invest Global Thematic**** 108 DWS Invest Global Value 110 DWS Invest Gold and Precious Metals Equities***** 111 DWS Invest Indian Equities 112 DWS Invest Inflation Protect 114 DWS Invest Italian Equities 116 DWS Invest Japanese Equities 117 DWS Invest Japanese Small/Mid Cap 119 DWS Invest Life Science 121 DWS Invest New Resources 123 DWS Invest Responsibility****** 125 DWS Invest Technology 127 DWS Invest Top 50 Asia 128 DWS Invest Top 50 Asia 130/ DWS Invest Top Europe******* 131 DWS Invest Top 50 World 132 DWS Invest Total Return Bonds 133 DWS Invest Total Return Flexible 135 DWS Invest USD Bonds 136 DWS Invest USD Reserve (USD) 137 DWS Invest US Equities 139 DWS Invest Yield Spread Strategy 141 * The sub-fund DWS Invest Total Return Conservative has been renamed as DWS Invest Alpha Conservative effective December 21, ** The sub-fund DWS Invest Global Agribusiness (USD) has been renamed as DWS Invest Global Agribusiness effective December 21, *** The sub-fund DWS Invest Global High Yield Bonds (USD) has been renamed as DWS Invest Global High Yield Bonds effective December 21, **** The sub-fund DWS Invest Global Thematic (USD) has been renamed as DWS Invest Global Thematic effective December 21, ***** The sub-fund DWS Invest Gold and Precious Metals (USD) has been renamed as DWS Invest Gold and Precious Metals Equities effective December 21, ****** The sub-fund DWS Invest Sustainability Leaders has been renamed as DWS Invest Responsibility effective July 1, ****** The sub-fund DWS Invest Top 50 Europe has been renamed as DWS Invest Top Europe effective July 1,

4 A. Sales Prospectus General section Management and administration Investment Company DWS Invest 2, Boulevard Konrad Adenauer 1115 Luxembourg, Luxembourg Investment Company board of directors Chairman Klaus-Michael Vogel Managing member of the board of directors of DWS Investment S.A., Luxembourg Member of the board of directors of Deutsche Bank Luxembourg S.A., Luxembourg Alan Crutchett (up to December 31,2007) Managing director of DWS Investment GmbH, Frankfurt/Main, Germany Ernst Wilhelm Contzen (as of January 1, 2008) Managing member of the board of directors of Deutsche Bank Luxembourg S.A., Luxembourg Dorothee Wetzel DWS Investment GmbH, Frankfurt/Main Jochen Wiesbach Managing director of DWS Investment GmbH, Frankfurt/Main, Germany Promoter, Management Company and head office Transfer Agent, Registrar and Main Distributor DWS Investment S.A. 2, Boulevard Konrad Adenauer 1115 Luxembourg, Luxembourg Management Company board of directors Dr. Stephan Kunze Chairman Managing director of DWS Investment GmbH Frankfurt/Main, Germany Udo Behrenwaldt Vice-chairman, Deutsche Asset Management Frankfurt/Main, Germany Ernst Wilhelm Contzen Managing member of the board of directors of Deutsche Bank Luxembourg S.A., Luxembourg Klaus-Michael Vogel Managing member of the board of directors Member of the board of directors of Deutsche Bank Luxembourg S.A., Luxembourg Jochen Wiesbach Managing director of DWS Investment GmbH Frankfurt/Main, Germany Management Company management Klaus-Michael Vogel Managing member of the board of directors of DWS Investment S.A., Luxembourg Member of the board of directors of Deutsche Bank Luxembourg S.A., Luxembourg Günter Graw Member of the board of directors of DWS Investment S.A., Luxembourg Doris Marx Member of the board of directors of DWS Investment S.A., Luxembourg Fund managers for the sub-fund DWS Invest Chinese Equities: Deutsche Asset Management (Hong Kong) Limited 48/F Cheung Kong Center, 2 Queen s Road Central Hong Kong for the sub-funds DWS Invest Asian Bonds (USD), DWS Invest Asian Small/Mid Cap, DWS Invest Asian Equities 130/30 and DWS Invest Indian Equities: Deutsche Asset Management (Asia) Ltd One Raffles Quay #17 10 South Tower Singapore for the sub-funds DWS Invest Global Thematic, DWS Invest Global Agribusiness and DWS Invest Global ex Japan (USD): Deutsche Investment Management Americas, Inc. 345 Park Avenue New York, NY United States for the sub-funds DWS Invest Japanese Equities and DWS Invest Japanese Small/Mid Cap: Deutsche Asset Management (Japan) Limited 17th Floor, Sanno Park Tower, Nagatacho, Chiyoda-ku Tokyo Japan for the sub-fund DWS Invest Gold and Precious Metals Equities: Deutsche Asset Management (Australia) Limited Deutsche Bank Place Cnr. Hunter and Phillip Streets Sydney, New South Wales 2000 Australia For all other sub-funds: DWS Finanz-Service GmbH Mainzer Landstr Frankfurt/Main, Germany 2

5 Sales and paying agents Luxembourg Deutsche Bank Luxembourg S.A. 2, Boulevard Konrad Adenauer 1115 Luxembourg, Luxembourg Germany Deutsche Bank AG Taunusanlage Frankfurt/Main, Germany and its branches Deutsche Bank Privat- und Geschäftskunden AG Theodor-Heuss-Allee Frankfurt/Main, Germany and its branches Belgium Deutsche Bank NV/S.A , Avenue Marnix 1000 Bruxelles, Belgium France Société Générale 29, Boulevard Haussmann Paris, France Spain Deutsche Bank S.A.E. Ronda General Mitre Barcelona, Spain Investment Advisors Investment advisor to Deutsche Asset Management (Hong Kong) Limited: Harvest Fund Management Co., Ltd Room 1702, AURORA Plaza 99# Fucheng Road Shanghai, PRC Investment advisor to DWS Finanz-Service GmbH for the investment management of the sub-fund DWS Invest Global Infrastructure: Deutsche Investment Management Americas, Inc. 345 Park Avenue New York, NY United States Custodian and administrator State Street Bank Luxembourg S.A. 49, Avenue J.F. Kennedy 1855 Luxembourg, Luxembourg Auditor KPMG Audit 31, Allée Scheffer 2520 Luxembourg, Luxembourg Sales and paying agents (continued) Italy Deutsche Bank S.p.A. Piazza del Calendario, Milano, Italy Finanza & Futuro Banca S.p.A. Via Melchiorre Gioia, Milano, Italy Deutsche Asset Management SIM S.p.A. Via Melchiorre Gioia, Milano, Italy Switzerland Deutsche Bank (Suisse) S.A. 3, place des Bergues 1211 Genève, Switzerland Deutsche Bank (Schweiz) AG Bahnhofquai 9/ Zürich, Switzerland Deutsche Bank (Svizzera) S.A. Via Ferruccio Pelli Lugano, Switzerland Portugal Deutsche Bank (Portugal) S.A. Rua Castilho, n Lisboa, Portugal Netherlands Deutsche Bank AG, Amsterdam Branch Herengracht CA Amsterdam, The Netherlands Austria Deutsche Bank AG Vienna Branch Hohenstaufengasse Wien, Austria Singapore Singapore Representative Deutsche Asset Management (Asia) Limited 20 Raffles Place, Ocean Towers Singapore Korea Korea Investment and Securities Company 27-1 Youido-dong, Youngdungpo-gu Seoul, Korea Sweden SKANDINAVISKA ENSKILDA BANKEN AB (publ) through ist entity SEB Merchant Banking Rissneleden 110 SE Stockholm 3

6 Additional information for investors in the Federal Republic of Germany The by-laws, the full Sales Prospectus, the simplified Sales Prospectus, the annual and semi-annual reports as well as the issue and redemption prices may be obtained free of charge from the Management Company and the paying agents. The Management Company agreement, the Custodian agreement, the fund management agreement and investment advisory agreements may be inspected on any bank business day in Frankfurt/Main during customary business hours at the offices of the paying and information agents indicated below. Also available from the paying and information agents are the current net asset values per share and the issue and redemption prices of the shares. Redemption and exchange requests may be submitted to the German paying agents. All payments (redemption proceeds, possible distributions and any other payments) are paid to shareholders through the German paying agents. The issue and redemption prices of the shares, as well as any other letters to shareholders, are published in the Börsen-Zeitung, with Frankfurt/Main, Germany, as the place of publication. The sales and paying agents for Germany are: Deutsche Bank AG Taunusanlage Frankfurt/Main, Germany and its branches Deutsche Bank Privat- und Geschäftskunden AG Theodor-Heuss-Allee Frankfurt/Main, Germany and its branches Right of revocation for investors in the Federal Republic of Germany If the purchase of fund shares occurs by verbal agreement off the regular business premises of the party selling the shares or brokering their sale without the purchaser having requested from the seller or broker the negotiations resulting in the transaction, then the purchaser may, under Article 126 of the Investment Act (Investmentgesetz; InvG), rescind the agreement to purchase (right of revocation). Revocation must be communicated in writing to the Investment Company within a period of two weeks. The notice period shall not commence until the copy of the application to buy fund shares or an invoice for the purchase has been delivered to the purchaser. Compliance with the deadline requires only that the notice of revocation be sent by this deadline. The right of revocation is not available to a businessperson who has acquired the shares as business assets. If the purchaser has already made payments before the revocation, the Investment Company must, in exchange for the shares being returned, refund the value of the shares paid for on the day after receipt of the notice of revocation, along with the costs paid. The right of revocation also applies to the sale of shares. Special arrangements for distribution in Germany: With the exception of the sub-funds DWS Invest EURO Reserve and DWS Invest Alpha Conservative there is no public distribution of the NC share class. With the exception of the sub-fund DWS Invest Emerging Yield Plus (USD) there is no public distribution of the C4 share class. Regarding the sub-fund DWS Invest US Equities there is no public distribution of the share class NCH. 4

7 SUMMARY OF TAX REGULATIONS The following general tax information is based on current tax laws (as of September 2007). The taxable income of the investment fund is taxed on the level of the investor. The treatment of fund income at investor level is dependent on the tax regulations applicable to the individual investor. In determining taxable income, tax legislation requires that certain distinctions be made with regard to income components. Shares held as personal assets (German tax residents) 1. General information The following statements on tax regulations only apply for investors who are subject, without limitation, to taxation in the Federal Republic of Germany and also hold shares as personal assets. Distributed income and (reinvested) income equivalent to distributions, as well as any interim profits, are considered income as defined by Article 20 (1) No. 1 of the Income Tax Act (Einkommensteuergesetz; EStG) for investors holding the shares as personal assets. The resulting taxable income constitutes income from capital assets that is taxed at the level of the individual investor if such income combined with other capital gains exceeds the annual saver s allowance, including the standard deduction for income-related expenses annually of EUR 801 for single taxpayers or married taxpayers assessed separately or EUR 1,602 for married taxpayers assessed jointly. In addition, the sale of investment fund shares can result in income from personal sales transactions as defined by Article 23 (1), Sentence 1, No. 2, EStG. For private investors, the timing of income is governed by Article 11 EStG (accrual principle). Distributed income is thus reported in the tax year in which it was received. (Reinvested) income equivalent to distributions is considered to have accrued for tax purposes in the tax year in which it was collected by the investment fund. 2. Interest and income equivalent to interest Interest and income equivalent to interest is generally subject to income tax for the investor. This applies irrespective of whether such income is reinvested or distributed. In the case of shares held in custody in Germany (domestic custody), interest income tax (30% interest income tax plus 5.5% solidarity surcharge) will be withheld from the portion of a distribution that is liable to interest income tax. The tax on interest income is a tax prepayment that can be offset against the investor s final income tax liability. It does not, however, encompass the entire taxable distribution or the entire reinvested income of the investment fund, only interest income. The following remain exempt from tax on interest income: foreign and domestic dividends, capital gains from the sale of securities and subscription rights to shares in corporations, gains from forward transactions, as well as income that the Federal Republic of Germany has no right to tax pursuant to double taxation conventions. Please consult the annual report and the notices announcing the bases of taxation for details on the interest income tax withheld from income distributed by or reinvested in the investment fund. The tax on interest income can be waived in the case of domestic custody if the investor submits a sufficient exemption form. Investors who submit a non-assessment certificate are exempt from interest income tax to an unlimited amount. If the exemption form or non-assessment certificate is not submitted, or not submitted in time, the investor will receive from the institution that maintains the custody account a tax statement of the interest income tax and solidarity surcharge withheld. The investor may then offset this interest income tax withheld against his tax liability when preparing his income tax return. The same applies for any amounts exceeding the exemption form. For reinvesting funds, interest income tax is not withheld at the time of the reinvestment, not even if shares are held in custody in Germany. However, the income amounts liable to interest income tax will be accrued and the tax will be deducted from the total by the domestic institution maintaining the custody account when the shares are sold. Here, too, the domestic institution maintaining the custody account may refrain from withholding interest income tax if the investor submits an exemption form or an appropriate non-assessment certificate. If share certificates of distributing funds are not kept in a custody account (shares held in own custody) and coupons are presented to a domestic credit institution (so-called over-thecounter transactions), an interest income tax in the amount of 35% (in addition to 5.5% solidarity surcharge) shall be deducted. Upon request, the shareholder shall receive a tax certificate that enables him to offset the tax on interest income in his income tax assessment. In the case of reinvesting funds for which shareholders hold shares in own custody, the tax on interest income is 30% (plus 5.5% solidarity surcharge). The shareholder must submit an application for credit of the interest income tax on his income tax return, and must accompany such application with the required documentation. Taxation of interim profits Taxation of interim profits was reintroduced on January 1, If investment fund shares are sold or redeemed, the so-called interim profits are also subject to income tax as investment income. In general, interim profits consist of income from interest received or accrued that is included in the sale or redemption price but has not yet been distributed or reinvested and has therefore not yet become taxable for the investor. The interest and interest claims earned from the investment fund are subject to income and withholding tax if the shares are sold or redeemed by German tax residents. The withholding tax on obtained interim profits is 30% if the shares are held in a custody account and 35% if they are held in own custody (the 5.5% solidarity surcharge is added to the withholding tax in both cases). The retained tax is an advance payment of income tax and must be entered in the Anlage KAP. Interim profits paid during the purchase are deductible in the year of payment as negative income from capital assets. When tax is deducted, they are taken into account to reduce tax liability. On balance, therefore, returns received from interest on an investment are only considered taxable on a pro-rata basis for the duration they are held. Furthermore, no tax is deducted if an exemption form or non-assessment certificate take effect. In this case, non-resident taxpayers are also generally exempted from tax deduction. The interim profit is determined each time the net asset value per share is determined and published on each valuation day. The interim profits to be entered in Anlage KAP result from the multiplication of the respective interim profit per share by the number of shares indicated in the purchase or sale confirmation. The interim profits can also be regularly checked in the account statements from the institution maintaining the custody account. 3. Foreign and domestic dividends Only one half of foreign and domestic dividends distributed or reinvested by the investment fund is subject to income tax for individual investors ( half-income procedure ). 4. Gains from the sale of securities and gains from forward transactions at fund level Capital gains from the sale of securities and gains from forward transactions attained at the level of the investment fund are always non-taxable for the individual investor. This is not the case in financial innovations established for tax purposes. 5. Capital gains at the level of the individual investor Capital gains from the sale of an individual investor s investment fund shares are subject to income tax if the sale is made within one year from the date of purchase (speculative period). The profits are not taxed for individual investors if the sale takes place after the one-year period has ended. Capital losses may also be offset against capital gains from the preceding year or from subsequent years. When determining the capital gains, the interim profits at the time of purchase must be subtracted from the cost of purchasing the shares, and the interim profits at the time of selling the shares must be subtracted from the selling price to prevent double income taxation of interim profits. The half-income procedure is not applied to the capital gains. The gains are tax-exempt if the total gain generated from all personal sales transactions in a calendar year is less than EUR 512 (exemption limit). If this exemption limit is exceeded, capital gains are taxable to the full amount. 6. Negative income for tax purposes If the investment fund s net taxable incomes in the same income category are negative, that negative income is carried forward at the level of the investment fund and can be offset against future positive taxable incomes at the level of the investment fund in future years. Direct allocation of negative taxable income to the investor is not possible. In this way, this negative income only affects the investor for income 5

8 tax purposes in the tax year in which the fiscal year of the investment fund ends or in which the distribution for the fiscal year of the investment fund occurred for which the negative taxable income was offset at the level of the investment fund. Earlier consideration to the investor s income tax is not possible. Shares held as business assets (German tax residents) 1. General information The following statements on tax regulations only apply for investors who are subject, without limitation, to taxation in the Federal Republic of Germany and also hold shares as business assets. Investors holding the shares as business assets are subject to taxation on distributed income or income equivalent to distributions, as well as on capital gains from the sale of the shares and on the interim profits recorded. In the case of investors that keep tax accounts, the general legal principles governing tax balance sheets apply to distributed income. This means that distributed income is reported when the claim to it arises. For other business investors, the timing of income is governed by Article 11 EStG (accrual principle). (Reinvested) income equivalent to distributions is considered to have accrued in the tax year in which it was collected by the investment fund. 2. Interest and income equivalent to interest Interest and income equivalent to interest is generally taxable for the investor. This applies irrespective of whether such income is reinvested or distributed. In the case of shares of distributing funds held in domestic custody, interest income tax will be withheld from the portion of a distribution that is subject to interest income tax. The tax on interest income is a tax prepayment that can be offset against the investor s final tax liability. It does not, however, encompass the entire taxable distribution or the entire reinvested income of the investment fund, only interest income. The following remain exempt from tax on interest income: foreign and domestic dividends, capital gains from the sale of securities and subscription rights to shares in corporations, gains from forward transactions, as well as income that the Federal Republic of Germany has no right to tax pursuant to double taxation conventions. Please consult the annual report and the notices announcing the bases of taxation for details on the interest income tax withheld from income distributed by or reinvested in the investment fund. If shares are held as business assets, it is only possible to avoid the interest income tax or to obtain reimbursement of the withholding tax by submitting an appropriate exemption form. Otherwise, the investor will receive a tax statement indicating the amount of tax on interest income and the deductible withholding tax. For reinvesting funds, interest income tax is not withheld at the time of the reinvestment, not even if shares are held in custody in Germany. However, the income amounts liable to interest income tax will be accrued and the tax will be deducted from the total by the domestic institution maintaining the custody account when the shares are sold. Here, too, the domestic institution maintaining the custody account may refrain from withholding interest income tax if the investor submits an appropriate non-assessment certificate. 3. Foreign and domestic dividends Dividends from domestic and foreign corporations that are distributed on or reinvested in shares held as business assets are 95% tax-exempt for corporate entities (5% of these dividends constitute non-deductible operating expenses). In the case of sole proprietorships and partnerships, one half of this income is taxable (half-income procedure) as in the case of individual investors. 4. Gains from the sale of securities and gains from forward transactions at fund level Gains from the sale of securities and gains from forward transactions attained on the level of the investment fund are irrelevant for tax purposes for the investor if they are reinvested. If these gains are distributed, they have to be considered at investor level for tax purposes. For investors that are corporations, capital gains on equities are generally tax-exempt, 5% of the capital gains on equities constitute non-deductible operating expenses. In the case of other business investors (e.g. sole proprietorships), 50% of capital gains on equities are tax-exempt. Capital gains from bonds and gains from forward transactions, on the other hand, are fully taxable. For credit institutions, financial services institutions and other finance companies, special regulations apply pursuant to Article 8 b (7) and (8) of the Corporation Tax Act (Körperschaftsteuergesetz; KStG). 5. Capital gains at the level of the business investor Gains from the sale of shares held as business assets are generally tax-exempt for corporate entities, provided the gains emanate from dividends and realized and unrealized capital gains of the investment fund from foreign and domestic equities (so-called equity gain). One half of these capital gains are taxable for sole proprietorships. With regard to retail mutual funds, the Investment Company can choose whether or not to calculate and publish the equity gain. If the equity gain is to be published, such publication will take place on each valuation day, with the gain expressed as a percentage of the redemption price. 6. Negative income for tax purposes If the investment fund s net taxable incomes of the same kind are negative after being offset against positive incomes of the same kind, that negative income is carried forward at the level of the investment fund and can be offset against future positive taxable incomes of the same kind in future years. Direct allocation of negative taxable income to the investor is not possible. In this way, this negative income only affects the investor for income tax or corporation tax purposes in the tax year in which the fiscal year of the investment fund ends or in which the distribution for the fiscal year of the investment fund occurred for which the negative taxable income was offset at the level of the investment fund. Earlier consideration to the investor s income tax or corporation tax is not possible. Investors not resident in Germany for tax purposes (custody in Germany) The following statements only apply for investors who are not resident in the Federal Republic of Germany. If a non-resident investor holds shares of distributing funds held in custody by a domestic credit institution (custody arrangement), no interest income tax will be withheld, provided that the investor submits verification of foreign domicile. The extent to which the offsetting or refunding of investment income tax is possible for the non-resident investor depends on the double taxation convention in place between the tax residence of the investor and the Federal Republic of Germany. If the financial institution acting as Custodian is not aware of the investor s foreign domicile, or if it is not verified in time, the investor can apply for a refund of the incorrectly withheld interest income using the reimbursement procedure defined in Article 37 (2) of the German Fiscal Code (Abgabenordnung; AO). In order to do so, it is necessary to submit an informal application to the tax office having jurisdiction over the business operations of the financial institution maintaining the custody account. If the customer s foreign domicile does not become known until later, the tax withheld on interest income can be refunded subsequently by the tax office having jurisdiction over the business operations of the financial institution maintaining the custody account using the procedure defined in Article 37 (2) of the German Fiscal Code. If the foreign investor does not have his shares held in custody accounts with domestic credit institutions, and if he presents the coupons for payment at a domestic credit institution (over-the-counter transaction), tax on interest income shall be deducted at a rate of 35%. In the case of shares of reinvesting funds for which the shareholders hold the shares in their own custody, the tax on interest income is 30%. In these cases, the foreign investor can apply for a refund of the interest income tax withheld, via the tax office having jurisdiction over the business operations of the financial institution maintaining the custody account, using the procedure defined in Article 37 (2) of the German Fiscal Code. Moreover, we recommend that the investor resident outside Germany for tax purposes should individually discuss any possible tax consequences in his country of residence with his tax consultant. Solidarity surcharge Withholding tax and interest income tax withheld on distributions or reinvestments is subject to an additional solidarity surcharge of 5.5%. The solidarity surcharge can be offset as part of a tax assessment. If there is no investment income tax or if there is a credit of investment income tax on 6

9 reinvestment, e.g. in the case of a sufficient exemption form, a non-assessment certificate or proof of non-resident status, no solidarity surcharge shall be withheld or, in the case of reinvestment, the retained solidarity surcharge shall be credited. Foreign withholding tax Local withholding tax is in some cases levied on income generated abroad. The Investment Company can deduct such creditable withholding tax as income-related expenses at the level of the investment fund. In such a case, foreign withholding tax cannot be offset or deducted at investor level. If the Investment Company chooses not to exercise its option to deduct foreign withholding tax at fund level, the creditable withholding tax can be deducted in whole or in part at the request of the investor when the total income is calculated, or it can be offset in whole or in part against the portion of the investor s German income tax or corporation tax that is attributable to the corresponding income. Providing documentation for taxation bases If the Federal Tax Office (Bundeszentralamt für Steuern) requires it to do so, a foreign investment company must, within three months after receiving the request, provide the Federal Tax Office with documentation about the bases of taxation in the case of full distribution, partial reinvestment and full reinvestment, as applicable, as well as about the income deemed to have accrued but on which no tax deductions have yet taken place. Should this require corrections to the amounts in the income statement, the correction amount must be included in the announcement notice for the fiscal year in which the disclosure request was received. Results of mergers between investment funds If investment funds are transferred to a different investment fund within the scope of a tax-neutral transfer as defined by Articles 14 and 17a of the InvStG, a distributing fund is, in its final fiscal year before the amalgamation, to be treated for tax purposes like a reinvesting fund. This also applies with respect to the pending transactions arising from financial innovations. For the investors, the amalgamation does not result in the disclosure and taxation of the unrealized gains residing in the shares of the transferred investment fund. For individual investors, the personal tax-relevant holding period will not re-start as a result of the amalgamation in respect of the shares of the absorbing fund. These provisions do not apply to foreign incorporated funds (e.g. SICAV-type funds). At the level of the individual investor, a merger has the effect of a sale of shares with a corresponding purchase of shares. Transparent, semi-transparent and non-transparent taxation The above taxation principles (so-called transparent taxation) apply only if the taxation bases are made known as defined by Article 5 (1) of the Investment Tax Act (Investmentsteuergesetz; InvStG). This also applies if the investment fund has acquired shares in other foreign or domestic investment funds (target fund as defined in Article 10 InvStG). If the information pursuant to Article 5 (1) No. 1 (c) or (f) InvStG is not provided, all income is taxable in its entirety (so-called semi-transparent taxation). If the notification requirement pursuant to Article 5 (1) InvStG is violated and there is no instance of semi-transparent taxation, all distributions plus 70% of the positive difference between the first and the last redemption price of the investment fund share determined in the calendar year shall be assessed for taxation at investor level; at least 6% of the last redemption price determined in the calendar year shall be assessed (so-called non-transparent taxation). EU Savings Tax Directive, Interest Information Regulation Council Directive 2003/48/EC of June 3, 2003, on taxation of savings income in the form of interest payments (EU Savings Tax Directive) came into force on July 1, The objective of the EU Savings Tax Directive is to ensure effective taxation of cross-border interest payments to natural persons and certain equivalent institutions that are resident within the European Union. The EU has agreements in place with certain third countries (Andorra, Liechtenstein, Monaco, San Marino, Switzerland), as well as associated and dependent territories of EU member states, that are largely consistent with the EU Savings Tax Directive. In Luxembourg, the E.U. Savings Tax Directive was implemented via the law of June 21, According to this law, a paying agent with its registered office in Luxembourg must disclose interest payments that it pays to a physical person resident in an E.U. member state, or in one of the aforementioned third-party states or associated or dependent territories or to an equivalent institution, to the relevant Luxembourg tax authority. The Luxembourg tax authority then forwards this information to the foreign recipient s local tax authorities. Investors receiving interest payments from a paying agent in their country of residence are not affected by the EU Savings Tax Directive or the Interest Information Regulation. If the paying agent is in Belgium, Luxembourg or Austria, such information is only disclosed if the recipient authorizes the relevant paying agent to exchange information. Alternatively, these countries will deduct withholding tax on the interest payments, which can be offset or refunded by means of a German tax return (E.U. withholding tax is 15%, rising to 20% as of July 1, 2008, and to 35% as of July 1, 2011). Fund distributions and proceeds from selling or redeeming shares can result in interest income as defined by the E.U. Savings Tax Directive. The E.U. Savings Tax Directive stipulates that it must be specified for each foreign and domestic fund whether it is subject to the E.U. Savings Tax Directive or not. The E.U. Savings Tax Directive contains two decisive investment limits for this assessment. If the assets of a fund consist of no more than 15% in claims as defined by the E.U. Savings Tax Directive, the paying agents that ultimately make use of the data disclosed by the Investment Company must not send reports to the relevant tax authorities in the event of a distribution. If that 15% limit is crossed, the paying agents must report to the tax authorities the EU interest portion contained in the distribution. If the assets of a fund consist of more than 40% in claims as defined by the E.U. Savings Tax Directive, the interest portion contained in the redemption or selling price must be reported. Notice The information included here is based on our understanding of current tax laws. No responsibility can be assumed for potential changes in the tax structure through legislation, court decisions or the orders of the tax authorities. Such changes may also be introduced with retroactive effect, which could negatively affect the tax consequences described above. On July 6, 2007, the upper house of the German parliament (Bundesrat) approved the Company Tax Reform Act 2008 (Unternehmensteuerreformgesetz 2008). The adoption of this act also sees the introduction of a final withholding tax on capital gains for the Federal Republic of Germany from January 1, Please note that the introduction of this final withholding tax will foreseeably bring about changes to the fiscal treatment of income from investment funds for private investors. In particular, the current version of the Company Tax Reform Act 2008 (Unternehmensteuerreformgesetz 2008) specifies that distributed income and income that is regarded as distributed (such as, in particular, reinvested income and dividends) shall always be subject in the final withholding tax regime to a tax rate of 25% (plus solidarity surcharge and, if necessary, church tax). In this sense, dividends shall be taken into account in full (omission of the half-income procedure). In the case of a distribution or the disposal of investment shares, the financial institution maintaining the custody account (in the case of national custody) will regularly carry out a tax deduction. In certain circumstances, specifications in the tax return may still be necessary, especially if no tax deduction has been implemented, if specific disposal procedures were followed or if extraordinary debits are claimed in the tax return. Moreover, any possible specifications for the purposes of church tax shall be required even if the tax deduction of 25% has been carried out. Specifications in the tax return may also be advisable in certain circumstances. For instance, the personal tax rate shall be taken as the relevant basis if it is lower than 25% and details about capital gains have been disclosed in the tax return. Income-related expenses in relation to income from capital assets can no longer be claimed. The saver s tax allowance and the flat allowance for income-related expenses shall be replaced by a saver s flat allowance of EUR 801 (or EUR 1602 for jointly taxed married couples). 7

10 Special rules shall apply to distributed gains from securities sales and forward transactions. Insofar as securities are sold and/or forward transactions are concluded which were acquired and/or entered into before January 1, 2009, any resulting gains may still be distributed tax-free to private investors. In future, the gains from the sale of investment shares of a private investor shall be subject to final withholding tax, regardless of the length of retention. However, investment shares that were acquired before January 1, 2009 can still be sold free of tax, insofar as the sale takes place outside the one-year speculative period. This summary does not purport to be a comprehensive discussion of all tax considerations that may be of relevance to a particular investor based on his personal circumstances. Accordingly, persons who wish to acquire investment shares, who possess such shares or who intend to issue a mandate concerning investment shares are advised to consult a professional tax advisor or similar professional about the individual tax consequences of acquiring, holding, or selling the investment fund shares described in this Prospectus. 8

11 Information for investors in Austria The sales and paying agent in Austria is At this office, Deutsche Bank AG Vienna Branch Hohenstaufengasse Wien, Austria shares may be redeemed and redemption requests may be submitted, investors can obtain all the information, such as Sales Prospectuses together with Terms and Conditions, annual reports and semiannual reports, as well as the offering and redemption prices, and request or inspect other information and documentation, payments to shareholders may be forwarded. The sub-funds DWS Invest Alpha Opportunities, DWS Invest Asian Equities 130/30, DWS Invest Duration Strategy, DWS Invest Emerging Markets Top Dividend Plus, DWS Invest Euro Corp Bonds 130/30, DWS Invest European Bonds 130/30, DWS Invest European Equities (Premium), DWS Invest European Equities 130/30, DWS Invest European Stars, DWS Invest European Value, DWS Invest German Equities, DWS Invest Global Equities 130/30, DWS Invest Global Infrastructure and DWS Invest Top 50 Asia 130/30 listed in this Prospectus are not authorized for distribution in Austria. Annual reports and semiannual reports are also available in electronic form on the Internet pages at and 9

12 General The following provisions apply to all of the subfunds set up under DWS Invest, SICAV. The respective special regulations for each of the individual sub-funds are contained in the special section of the Sales Prospectus. Notes The legal basis for the sale of fund shares is the current Sales Prospectus. It is prohibited to provide any information or deliver any statements other than those of this Sales Prospectus. The Company shall not be liable if such divergent information or explanations are supplied. The Sales Prospectus, the simplified Sales Prospectus and the annual and semi-annual reports may be obtained free of charge from the Investment Company, the Management Company or the paying agents. Other important information will be communicated to shareholders in a suitable form by the Management Company. General risk warnings Investing in shares of the fund involves risks. These can encompass or involve risks associated with equity or bond markets, exchange rates, interest rates, credit and volatility, as well as political risks. Any of these risks may also occur along with other risks. Some of these risk factors are addressed briefly below. Potential investors should possess experience of investing in instruments that are employed within the scope of the proposed investment policy. Investors should also have a clear picture of the risks involved in investing in the shares and should not make a decision to invest until they have fully consulted their legal, tax and financial advisors, auditors or other advisors about (i) the suitability of investing in the shares, taking into account their personal financial and tax situation and other circumstances, (ii) the information contained in this Sales Prospectus, and (iii) the fund s investment policy. It must be noted that investments made by a fund also contain risks in addition to the opportunities for price increases. The fund s shares are securities, the value of which is determined by the price fluctuations of the assets contained in the fund. Accordingly, the value of the shares may rise or fall in comparison with the purchase price. No assurance can therefore be given that the investment objectives will be achieved. Market risk This risk is of a general nature and exists in all forms of investment. The principal factor affecting the price performance of securities is the performance of capital markets and the economic performance of individual issuers, which in turn are influenced by the general condition of the world economy, as well as the basic economic and political conditions in the particular countries (market risk). Legal and tax risk The legal and tax treatment of funds may change in ways that cannot be predicted or influenced. In case of a correction with tax consequences that are essentially disadvantageous for the investor, changes to the fund s taxation bases for preceding fiscal years made because these bases are found to be incorrect can result in the investor having to bear the tax burden resulting from the correction of preceding fiscal years, even though he may not have had an investment in the investment fund at the time. On the other hand, the investor may also not benefit from an essentially advantageous correction for the current or preceding fiscal years during which he had an investment in the investment fund if the shares are redeemed or sold before the correction takes place. In addition, a correction of tax data can result in a situation where taxable income or tax benefits are actually assessed for tax in a different assessment period to the applicable one and that this has a negative effect on the individual investor. Interest-rate risk Investors should be aware that investing in shares of the fund may involve interest-rate risks. These risks may be incurred in the event of interest-rate fluctuations in the denomination currency of the securities or the fund. Credit risk Investors should be absolutely clear that an investment of this type may involve credit risks. Bonds or debt instruments involve a credit risk with regard to the issuers, for which the issuer s credit rating can be used as a benchmark. Bonds or debt instruments floated by issuers with a lower rating are generally viewed as securities with a higher credit risk and greater risk of default on the part of the issuer than those instruments that are floated by issuers with a better rating. If an issuer of bonds or debt instruments runs into financial or economic difficulties, this can affect the value of the bonds or debt instruments (this value could drop to zero) and the payments made on the basis of these bonds or debt instruments (these payments could drop to zero). Risk of default In addition to the general trends on capital markets, the particular performance of each individual issuer also affects the price of an investment. The risk of a decline in the assets of issuers, for example, cannot be eliminated even by the most careful selection of the securities. Liquidity risk Liquidity risks arise when a particular security is difficult to dispose of. In principle, acquisitions for the fund must only consist of securities that can be sold again at any time. Nevertheless, it may be difficult to sell particular securities at the desired time during certain phases or in particular exchange segments. There is also the risk that securities traded in a rather narrow market segment will be subject to considerable price volatility. Assets in the emerging markets Investing in assets from the emerging markets generally entails a greater risk (potentially including considerable legal, economic and political risks) than investing in assets from the markets of industrialized countries. Emerging markets are markets that are, by definition, in a state of transition and are therefore exposed to rapid political change and economic declines. During the past few years, there have been significant political, economic and societal changes in many emerging-market countries. In many cases, political considerations have led to substantial economic and societal tensions, and in some cases these countries have experienced both political and economic instability. Political or economic instability can influence investor confidence, which in turn can have a negative effect on exchange rates, security prices or other assets in emerging markets. The exchange rates and the prices of securities and other assets in the emerging markets are often extremely volatile. Among other things, changes to these prices are caused by interest rates, changes to the balance of demand and supply, external forces affecting the market (especially in connection with important trading partners), trade-related, tax-related or monetary policies, governmental policies as well as international political and economic events. In most cases, the securities markets in the emerging markets are still in their primary stage of development. This may result in risks and practices (such as increased volatility) that usually do not occur in developed securities markets and which may have a negative influence on the securities listed on the stock exchanges of these countries. Moreover, the markets in emerging-market countries are frequently characterized by illiquidity in the form of low turnover of some of the listed securities. In comparison to other types of investment that carry a smaller risk, it is important to note that exchange rates, securities and other assets from emerging markets are more likely to be sold as a result of the flight into quality effect in times of economic stagnation. Investments in Russia If provided for in the respective product annex for a particular sub-fund, sub-funds may, within the scope of their respective investment policies, invest in securities that are traded on the Russian Trading System Stock Exchange (RTS) or on the Moscow Interbank Currency Exchange (MICEX). These two exchanges are recognized and regulated markets as defined by Article 41 (1) of the Luxembourg law of December 20, Additional details are specified in the respective product annex. Custody and registration risk in Russia Even though commitments in the Russian equity markets are well covered through the use of GDRs and ADRs, individual sub funds may, in accordance with their investment policies, invest in securities that might require the use of local depositary and/or custodial services. At present, the proof of legal ownership of equities in Russia is delivered in book-entry form. The shareholder register is of decisive importance in the custody and registration procedure. Registrars are not subject to any real government supervision, and the sub-fund could lose its registration through fraud, negligence or just plain oversight. Moreover, in practice, there was and is no really strict ad- 10