Deutsche Asset & Wealth Management core funds Adapting to ... Archive/Misc... · 2 Deutsche Asset & Wealth Management core funds Fixed-income volatility is high 12/08 12/09 12/101

For registered representative use only. Not for public viewing or distribution.

4th quarter 2013

Deutsche Asset & Wealth Management core fundsAdapting to a new market reality

2 Deutsche Asset & Wealth Management core funds

Fixed-income volatility is high

12/1312/10 12/11 12/1212/0912/08

0.5%

1.5%

2.5%

3.5%

4.5%

Equity correlations are high

2010–20192000–20091980–1989

0.47

0.88

???

Today’s asset-allocation challenge may be more difficult than everFinancial markets have undergone extreme change, breaking down in unexpected and, at times, contradictory ways

Equity volatility is high

Some fixed-income correlations are high

Sources: Morningstar as of 12/31/13. Performance is historical and does not guarantee future results. These charts are for illustrative purposes only. Asset-class representation: equities, S&P 500 Index. Index returns do not reflect fees or expenses, and it is not possible to invest directly in an index. Correlation refers to how securities perform in relation to one another. A 1.0 correlation indicates that two security types move in exactly the same direction. A –1.0 correlation indicates movement in exactly opposite directions. A zero correlation implies no relation in the movements. The values of equity investments are more volatile than those of other securities. Fixed-income investments are subject to interest-rate risk, and their value will decline as interest rates rise. *GNMA is represented by the Barclays GNMA Index.

1 1 1 02 24 4 38

26 2522

25

1950s 1960s 1970s 1980s 1990s 2000s 2008–2013Number of days S&P 500 Index up > + 4%Number of days S&P 500 Index down > –4%

Stocks have been volatile, too: The S&P 500 Index had more + or –4% trading days from 2008 through 2013 (47) than in the previous 58 years combined (38) (1950 through 2007).

Higher equity correlations have led to decreased diversification benefits (MSCI EAFE Index correlation to the S&P 500 Index).

Rates rise 190 bps (12/18/08–6/10/09)

Rates rise 131 bps (10/12/10–2/8/11)

Rates rise 161 bps (7/25/12–12/31/13)

Rates fall 160 bps (4/5/10–10/08/10) Rates fall 221 bps (2/9/11–7/24/12)

5-year correlation10-year correlation

1.001.00

0.38 0.30

0.380.60

0.66–0.08

–0.11

0.76

GNMA*Intermediate-Term Bond

Bank LoanHigh-Yield Bond

S&P 500 Index

S&P 500 Index correlation with top-selling Morningstar categories reveals some high correlations.

The assetallocationchallenge

1

2 3

Volatility expectations1

Correlation expectations2

Deutsche Asset & Wealth Management core funds 3

Building a strong core can help solve many of today’s market challengesAre you looking for the opportunity to gain market share in today’s difficult environment? Consider a foundation of exposure to broad assets classes, such as U.S. stocks, U.S. bonds, international equities and alternatives—a portfolio Deutsche Asset & Wealth Management is uniquely positioned to help you formulate.

Source: Morningstar for chart above, Deutsche Asset & Wealth Management for chart at right, both as of 12/31/13. Performance is historical and does not guarantee future results. The chart above is for illustrative purposes only. Asset-class representation: stocks, S&P 500 Index; bonds, Barclays U.S. Aggregate Index. Equity index returns include reinvestment of all distributions. Index returns do not reflect fees or expenses, and it is not possible to invest directly in an index. The values of equity investments are more volatile than those of other securities. Fixed-income investments are subject to interest-rate risk, and their values will decline as interest rates rise. The chart at right shows the potential levels of risk vs. return within each Deutsche Asset & Wealth Management asset class. A fund’s location in the list represents its risk/return profile relative to the other funds in its asset class. This illustration is for comparative purposes and is intended to describe general characteristics. It is not intended to represent past or future performance. All funds involve a certain degree of risk. Risk is relative to the potential for return.

Tax-free income Taxable fixed income EquityAlternative and

multi-asset

DWS Strategic High Yield

Tax-Free Fund

DWS High Income Fund

DWS Global Small Cap

Growth Fund

DWS Enhanced Commodity Strategy

Fund

DWS Managed Municipal Bond Fund

DWS Floating Rate Fund

DWS World Dividend Fund

DWS Global Income Builder Fund

DWS Intermediate Tax/AMT Free Fund

DWS Unconstrained Income Fund

DWS RREEF Global Infrastructure Fund

DWS Alternative Allocation Suite

DWS Ultra-Short Duration Fund

DWS RREEF Global Real Estate Securities

Fund

DWS Diversified Market Neutral Fund

DWS Short Duration Fund

DWS RREEF Real Estate

Securities Fund

DWS RREEF Real Estate Securities

Income Fund

Hig

her

Ris

k/re

turn

po

ten

tial

Low

er

Equity returns are low, while 30 years of falling interest rates have led to lower income returns

1980–1999 2000–2009 2010–2019

Stocks +17.88% –0.95% ???

Bonds +10.04% +6.33% ???

Return expectations3


A | SMLAX C | SMLCX INST | SMLIX S | SCMBX

DWS Managed Municipal Bond Fund

Matthew J. Caggiano, CFA

24 years experience

Ashton P. Goodfield, CFA

27 years experience

Philip G. Condon

37 years experience

Michael J. Generazo

20 years experience

Portfolio management/industry experience

Strong portfolio diversification

— The fund (Class S) offers low correlation to other asset classes, including a

0.06 10-year correlation to the S&P 500 Index.1

Attractive income levels

— Municipal bonds offer comparable yields to corporate bonds before tax benefits are

even considered (see chart on page 5)—meaning income levels on municipal bonds

are attractive.

Consistent, strong return potential

— A conservative approach has led Class S shares to positive returns in 12 out of 13

calendar years, and over all but four 18-month periods since inception.2

DWS Intermediate Tax/AMT Free Fund

A | SZMAX C | SZMCX INST | SZMIX S | SCMTX

Shelly Deitert

16 years experience

Ashton P. Goodfield, CFA

27 years experience

Philip G. Condon

37 years experience

Municipal bonds have provided attractive 10-year volatility-adjusted returns

Any performance, ratings, rankings and correlations shown are historical, do not guarantee future results, and may be different for different share classes and time periods. Index returns do not reflect fees or expenses, and it is not possible to invest directly in an index. Please see page 15 for additional disclosure.

0% 3% 6% 9% 12%

0%

3%

6%

9%

12%

Volatility

Ret

urn Multi-sector bonds

6.06% return / 6.96% volatility

Municipal bonds (tax-adjusted)7.01% return / 4.46% volatility

Intermediate-term bonds4.33% return / 3.98% volatility

Municipal bonds4.29% return / 4.46% volatility

Source: Morningstar as of 12/31/13. Tax-adjusted returns are adjusted for the maximum federal income tax (43.4%). Volatility is measured by standard deviation.


Strong return potential with less volatility

— Municipal bonds offered higher volatility-adjusted returns over the last decade

than other segments of the fixed-income market.3

Powerful performance in up and down markets

— The fund is one of only 10 in its peer group to post upside capture greater than

100% and downside capture less than 100% for the 10-year period.4

Relative safety in all market conditions

— From 1970 to 2012, no Aaa-rated muni defaulted, and those rated Aa and A

defaulted just 0.01% and 0.05% of the time, respectively.5



Strong diversification potential

—The fund (Class A) has a low 0.28 10-year correlation to the S&P 500 Index.6

Powerful performance in up and down markets

— The fund is the only one of three in its peer group to post upside capture greater

than 100% and downside capture less than 100% for the 10-year period.7

Outstanding risk-adjusted returns

— The fund has produced higher returns with less volatility (as represented by

standard deviation) than its peer group over a 10-year time period.8

DWS Strategic High Yield Tax-Free Fund

A | NOTAX C | NOTCX INST | NOTIX S | SHYTX

A. Gene Caponi, CFA

29 years experience

Rebecca Flinn

28 years experience

Philip G. Condon

37 years experience

Municipal bonds are relatively cheap vs. taxable investments

Source: Morningstar as of 12/31/13. Asset-class representation: muni bonds, Barclays Municipal Bond Index; corporate bonds, Barclays U.S. Credit Index. Yield ratio is the municipal bond yield divided by the corporate bond yield. Tax-equivalent yield is the muni bond total return divided by the maximum federal tax bracket (43.4%). Income from municipal bonds is generally free from federal income tax; income from corporate bonds is subject to taxation.

Municipal bondtax-adjusted yield

Municipalbond yield

Corporatebond yield

5.57%

3.15% 3.19%

Municipal bonds currently offer investors comparable pre-tax

yields to taxable corporate bonds.



Unprepared for higher interest rates?

— Many income investors rely heavily on intermediate-term bonds, which tend to

carry significant interest-rate risk.9

Attractive results from short-term bonds

— Short-term bonds outperformed intermediate-term bonds when rates rose by one

percentage point or more in 12-month periods.10

Outperformance when rates rose

— Class S shares outperformed 77% of its Morningstar peer group when the 10-year

U.S. Treasury rose 155 basis points (from May 2, 2013 to September 5, 2013).11

DWS Short Duration Fund

A | PPIAX C | PPLCX INST | PPILX S | DBPIX

William Chepolis, CFA

28 years experience

Gary Russell, CFA

21 years experienceJohn Ryan

19 years experience

Eric Meyer, CFA

33 years experience

Short-term bonds delivered higher risk-adjusted returns with lower volatility

(15-year period ending 12/31/13)

Source: Morningstar as of 12/31/13. Asset class representation: short-term bonds, Barclays 1-3 Year U.S. Aggregate Index; intermediate-term bonds, Barclays 7-10 Year U.S. Aggregate Index; long-term bonds, Barclays 10+ Year U.S. Aggregate Index. Volatility is measured by standard deviation.

5.05%

8.84%

1.44%S

hort

-ter

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ds

Inte

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iate

-te

rm b

onds

Long

-ter

mbon

ds

0.740.49

1.17

Sho

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erm

bon

ds

Inte

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iate

-te

rm b

onds

Long

-ter

mbon

ds

Lower volatility Attractive Sharpe ratios





— Many income investors rely heavily on intermediate-term bonds, which tend

to carry significant interest-rate risk.12

Go low—low duration

— Bonds with no duration exposure outperformed those with higher durations

in 88% of rolling five-year periods during the last secular rising-rate market

(February 1960 through September 1981).13

Strong category rank

— Class S shares ranked in the top 3% (4/137) and 1% (1/110) in the Morningstar

Ultrashort category for the past two calendar years, respectively.14

DWS Ultra-Short Duration Fund

A | SDUAX C | SDUCX INST | MGSFX S | SDUSX


28 years experience

Gary Russell, CFA

21 years experienceJohn Ryan

19 years experience

Eric Meyer, CFA

33 years experience

Potential benefits of minimizing duration exposure during rising-rate

environments (2/1/60–9/30/81)

Source: Morningstar as of 12/31/13. For illustrative purposes only. Asset class representation: ultra-short duration bonds, Ibbotson/SBBI U.S. 1-Year Treasury Constant Maturity Yield Index; longer-duration bonds, Ibbotson/SBBI U.S. Long-Term Government Index. Because of their shorter maturities, short-term bonds are typically less vulnerable to rising interest rates than longer-term bonds.

Average annual total returns Consistent outperformance (five-year rolling periods)

Ultra-short duration bonds

Longer-duration bonds

5.90%

2.38%

Ultra-shortduration bonds

Longer-duration bonds

88%

12%

A | KSTAX C | KSTCX S | KSTSX

DWS Unconstrained Income Fund


You may be unprepared for interest-rate changes

— Wall Street economists incorrectly predicted the direction of rates 55% of the

time from June 1992 through June 2012.15

A flexible, diverse portfolio can help to adapt to rate changes

—Consider a multi-sector approach vs. direct bets on the direction of interest rates.

Strong risk-adjusted returns

— Over the five-year period, Class S shares have lower volatility (as measured by

standard deviation) than 70% of its Morningstar peers and has an above average

Sharpe Ratio.16

Philip G. Condon

37 years experience


28 years experience

Gary Russell, CFA

21 years experience

John Ryan

19 years experience

A diversified income portfolio performed well during rising-rate environments

(12-month periods, 5/1/93–12/31/13, when rates rose by more than 1%)

Source: Morningstar as of 12/31/13. For illustrative purposes only. Asset class representation: floating-rate loans, Credit Suisse Leveraged Loan Index; high-yield bonds, Barclays U.S. Corporate High Yield Index; emerging-market bonds, Barclays Emerging Market Index; diversified income portfolio, 25% Barclays U.S. Corporate Index/25% Barclays U.S. Corporate High Yield Index/15% Barclays GNMA Index/15% Barclays U.S. Treasury Index/10% BofA/ML All Convertible All Qualities Index/10% JPMorgan Emerging Market Bond Index; GNMAs, Barclays GNMA Index; corporate investment-grade bonds, Barclays U.S. Corporate Index; U.S. Treasuries, Barclays U.S. Treasury Index. The guarantee on U.S. Treasuries is to the timely repayment of principal and interest. Non-investment-grade bonds present greater risk of loss than investments in higher-quality securities. Fixed-income investments are subject to interest-rate risk, and their value will decline as interest rates rise.

Flo

atin

g-

rate

loan

s

Hig

h-y

ield

bo

nd

s

Em

erg

ing

-m

arke

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on

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Div

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inco

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GN

MA

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Cor

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ent-

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de

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U.S

. T

reas

uri

es

10.78%8.09% 7.02% 6.77% 0.40% 0.07% –1.90%




— Many of today’s income investors rely heavily on intermediate-term bonds, which

tend to carry significant interest-rate risk.17

Floating-rate loans outperformed when rates rose

— Over a 14-month span, prior to the last increase in the federal funds rate in

June 2004, floating-rate loans returned 8.06%.18

Top-notch long-term results

— Class S shares rank in the top third (40/124) in the Morningstar Bank Loan

category for the five-year period.19

DWS Floating Rate Fund

A | DFRAX C | DFRCX INST | DFRTX S | DFRPX

James T. Anderson

32 years experience

Eric Meyer, CFA

33 years experience

Floating-rate loans outperformed when interest rates have risen by 1% or more

(total percentage returns, 5/93-12/13)

Source: Morningstar as of 12/31/13. Performance is historical and does not guarantee future results. Asset class representation: floating-rate notes, Credit Suisse Leveraged Loan Index; high-yield bonds, Credit Suisse High Yield Index; short-term bonds, Barclays 1 -3 Year U.S. Aggregate Index; ultra-short-term bonds, Morningstar/Ibbotson SBBI U.S. 1-Year Treasury Constant Maturity Yield Index; intermediate-term bonds, Barclays 7-10 Year U.S. Aggregate Index; long-term bonds, Barclays 10+ Year U.S. Aggregate Index. This data is for illustrative purposes and does not represent any Deutsche Asset & Wealth Management product. Index returns do not reflect fees or expenses. It is not possible to invest directly in an index. Performance for other time periods may not be as favorable.

10.78%8.29% 2.05% 2.03%

–1.49% –4.94%

Flo

atin

g-r

ate

loan

s

Hig

h-y

ield

bo

nd

s

Ult

ra-s

ho

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term

bo

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s

Inte

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-te

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Sh

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Lon

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s


Missing out on income and unprepared for higher rates?

— Most (76%) of clients’ taxable fixed-income assets are in investments (including

intermediate-term bonds) with durations that are higher than yields.20

Higher income and strong performance when rates rose

— High-yield bonds offer yields of 5.64% vs. 3.26% for intermediate-term bonds,

1.44% for U.S. Treasuries and 1.89% for equities.21

—High-yield bonds have offered attractive returns when market rates have risen.22

Consistent performance

— The fund has outperformed the Morningstar peer group average for four consecutive

years, and has ranked in the 24th percentile over that time period.23

— Over the five-year period, Class S shares have lower volatility (as measured by

standard deviation) and higher Sharpe Ratio than its Morningstar peers, 67% and

65%, respectively.24

DWS High Income Fund

A | KHYAX C | KHYCX INST | KHYIX S | KHYSX

Gary Russell, CFA21 years experience

High-yield bonds have provided equity-type returns with less volatility

(1/1/86–12/31/13)

Source: Morningstar as of 12/31/13. For illustrative purposes only. Asset-class representation: high-yield bonds, Credit Suisse High Yield Index; equities, S&P 500 Index. Volatility is represented by standard deviation. The values of equity investments are more volatile than those of other securities. Fixed-income investments are subject to interest-rate risk, and their value will decline as interest rates rise.

Index performance

1-year return

5-year return

10-year return

1-year volatility

5-year volatility

10-year volatility

High-yield bonds 7.53% 18.08% 8.35% 4.75% 8.17% 9.56%

Equities 32.39% 17.94% 7.41% 8.48% 15.81% 14.62%

Returns Volatility

9.22% 10.59%15.49%

8.02%

High-yield bonds Equities




A strong diversifier to equities and income

— The Morningstar Real Estate category has a 0.78 correlation to U.S. equities and

an a 0.24 correlation to U.S. bonds over the past 10 years.27

A top-24 Morningstar category

— The Morningstar Real Estate category returned an average annual 7.84% over the

past 10 years, placing it in the top 24 categories over that period.28

Powerful upside, protective downside

— The Morningstar Real Estate category captured 129% of the upside of the S&P 500

Index over the past 10 years.29

DWS RREEF Real Estate Securities Fund

A | RRRAX C | RRRCX INST | RRRRX S | RRREX

John Vojticek17 years experience

John Robertson, CFA24 years experience

REITs have offered appealing annual dividend yields

0%

2%

4%

6%

10%

14%

8%

12%

16%

20132009 2011200720052003200119991997199519931991

Dividend yield, REITs Dividend yield, stocks

Source: FactSet, Bloomberg as of 12/31/13. Performance is historical and does not guarantee future results. For illustrative purposes only. REITs are represented by the FTSE NAREIT All REIT Index, stocks by the S&P 500 Index. Dividends are not guaranteed.

Joseph D. Fisher, CFA10 years experience

David Zonavetch, CPA17 years experience


Is now the right time for investing in real estate?

— After a selloff in the second quarter of 2013, U.S. REITs are now trading at a

5.00% discount relative to underlying property net asset values as of 12/31/13.

Historically, U.S. REITs trade at an average of a 3% premium to underlying

property.25 (See chart below.)

REITs have historically offered income and growth potential

— REITs typically offer higher dividend yields—supported by growing cash flows—

combined with potential capital appreciation. This may make them a compelling

alternative to bonds, which now offer low rates of return.26

Driving income potential through REIT investments and a covered call strategy

— By joining a covered call strategy with investments in common and preferred REITs

(both in the United States and Canada), DWS RREEF Real Estate Securities Income

Fund seeks to provide enhanced income potential compared to a REIT-only strategy.

DWS RREEF Real Estate Securities Income Fund

A | REFAX C | REFCX INST | REFIX S | REFSX



Joseph D. Fisher, CFA10 years experience

U.S. REITs are trading at discounts to their net asset values (as of 12/31/13)

Source: Green Street Advisors as of 12/31/13. U.S. REITs are represented by Green Street’s coverage universe, which includes 114 REITs and other publicly traded real estate companies.

12/1312/08 12/1012/0612/0412/00 12/0212/9812/94 12/9612/922/90

–50%

–30%

–10%

10%

30%

50%

U.S. REIT valuations Average

David Zonavetch, CPA17 years experience


Average: 3.06%



Global REIT yields are favorable relative to government bond yields

5.8

%

5.4

%

4.5

%

3.5

% 6.1

%

3.4

%

3.7

%

4.2

% 2.3

%

2.3

%

0.7

% 2.6

%

3.0

%

3.0

%

Australia Europeex-UnitedKingdom

Hong Kong Japan Singapore UnitedKingdom

UnitedStates

REIT yields 10-year government bond yields


The right time for investing in real estate

—REITs in many regions are trading at discounts to their net asset values.30

A top-31 Morningstar category

— The Morningstar Global Real Estate category returned 7.25% over the past

10 years, placing it in the top 31 Morningstar categories over that period.31

Powerful upside, protective downside — The Morningstar Global Real Estate category has captured 120% of the upside

of the S&P 500 Index over the past 10 years.32

DWS RREEF Global Real Estate Securities Fund

A | RRGAX C | RRGCX INST | RRGIX S | RRGTX

Daniel Ekins28 years experience


Source: Bloomberg and RREEF as of 12/31/13. Performance is historical and does not guarantee future results. For illustrative purposes only. REIT yields are represented by FTSE EPRA/NAREIT Developed Real Estate Index, 10-year government bond yields are represented by the 10-year government bond for each country (for Europe ex-United Kingdom, a weighted average of European sovereign bond yields with weights based on the country weights in the FTSE EPRA/NAREIT). There are special risks associated with an investment in real estate, including REITS. These risks include credit risk, interest-rate fluctuations and the impact of varied economic conditions. Fixed-income investments are subject to interest-rate risk, and their values will decline as interest rates rise.

John Hammond22 years experience


A | TOLLX C | TOLCX INST | TOLIX S | TOLSX

DWS RREEF Global Infrastructure Fund


The perfect storm

— Population growth, increasing urbanization, chronic underspending and new

energy sources are driving infrastructure-related activities.

— Listed infrastructure has shown positive EBITDA growth for more than a

decade, including two recessionary periods.33

An unprecedented approach

— The fund focuses on the pure-play portion of the infrastructure universe, which

allows it to replicate the investment characteristics of the asset class.

Powerful performance

— Strong returns and low volatility have led the fund to compelling three-year

Sharpe ratios (1.74) vs. domestic (1.30) and global (0.86) equity indices.34

Francis Greywitt III13 years experience

Manoj Patel, CFA10 years experience



Annual EBITDA growth (local currency)

Source: MSCI, Reuters, Bloomberg, Dow Jones and JP Morgan Quantitative Strategy as of 12/31/12 (the latest data available). For illustrative purposes only. Asset-class representation: global equities, MSCI World Index; global infrastructure equities, Dow Jones-Brookfield Global Infrastructure Index. Shaded bar indicates a recession, which took place from December 2007 to June 2009.

–12.

3%6.

9%

0.9%

14.2

%

14.6

%11

.0%

19.3

%14

.8% 6.6%

19.5

%

6.7% 21

.5%

10.4

%11

.3%

–16.

2%5.

1%

–0.5

%13

.3%

13.4

%

2002 2003 2004 2005 2006 2007 2008 2009 2010 20122011

9.7%

3.1% 6.

0%

Global equities Global infrastructure equities



A | SERAX C | SERCX INST | SERNX S | SCGEX

DWS World Dividend Fund


5,497% cumulative returns over the past 40 years

— Stocks that grew their dividends returned an average annual 10.1% from

1/31/72 to 12/31/13 vs. 2.3% for stocks that paid no dividend.35

Powerful protection in down markets

— During the past 50 years, in the years in which the S&P 500 Index had

a negative return, high-dividend-paying stocks returned an average

–4.94% vs. –13.65% for the index.36

— Forty-four percent of S&P 500 Index companies currently pay a dividend

that exceeds the yield on their intermediate-term corporate bond.37

Access to hundreds more opportunities overseas

— While there are 21 U.S. stocks with a dividend yield greater than 5%,

there are 174 overseas stocks that meet that criteria.38

Thomas Schuessler, PhD17 years experience

Fabian Degen6 years experience

Peter Steffen, CFA6 years experience

Oliver Pfeil, PhD13 years experience

U.S. dividend-growers and dividend-payers have generated long-term value(growth of $100 in S&P 500 Equal Weight Index stocks, 1/31/72–12/31/13)

Source: Ned Davis Research as of 12/31/13. The S&P 500 Equal Weight Index returned a cumulative 2,067% and an average annual 8% from 1/31/72 to 12/31/13.

2010 12/132005200019951990198519801975$0

$1,000

$2,000

$3,000

$4,000

$6,000

$5,000

Dividend growers Constant dividend payers S&P 500Non-dividend payers Dividend cutters

U.S. dividend-growing stocks have generated value, returning a cumulative 5,497% from 1/31/72 through 12/31/13.


Strong outperformance over large-cap stocks

— Since 12/31/26, the small-cap IA SBBI U.S. Small Cap Stock Index has beat the

large-cap IA SBBI S&P 500 Index by 238 basis points annually.39

Greater potential for principal protection

— During rolling 10-year periods from 1930 through 2013, small-cap stocks

produced a negative return just 0.2% of the time.40

— The only months small-cap stocks experienced a negative return over a 10-year

period were March and May of 1930.41

Access to hundreds more opportunities overseas

— There are 6,015 holdings in the small-cap S&P Developed SmallCap Index while

there are only 1,620 holdings in the large-cap MSCI World Index.42

DWS Global Small Cap Growth Fund

A | KGDAX C | KGDCX INST | KGDIX S | SGSCX

Joseph Axtell, CFA28 years experience

Percent of rolling periods in which small- and large-cap stocks had a negative return (1/1/30–12/31/13)

Source: Morningstar/Ibbotson and DeAWM as of 12/31/13. For illustrative purposes only. Asset-class representation: large-cap stocks, S&P 500 Index; small-cap stocks, IA SBBI U.S. Small Cap Stock Index.

3-month

3.9

%

9.7

%15

.8%

26

.0%

30

.2%

32

.9%

6-month 1-year 3-year 5-year 10-year

14

.6%

27

.4%32

.8%

36

.8%

8.9

%

0.2

%

Small-cap stocks Large-cap stocks

We believe after three years the performance potential of small-cap stocks may outweigh their volatility




Strong diversification potential vs. stocks and bonds

— The fund’s returns have been largely uncorrelated to the stock and

bond markets.43

A pure market-neutral approach for near-zero beta

— The fund invests equal dollar amounts, long and short, in stocks managers

believe are the most and least attractive, respectively.

A hedge-fund strategy with the benefits of a traditional mutual fund

— The fund’s multi-manager sleeve approach blends two global fundamental

market-neutral strategies with a U.S. centric quantitative market-neutral

strategy in search of diversified sources of returns.

Correlations to DWS Diversified Market Neutral Fund (10/1/08–12/31/13)

Source: Morningstar as of 12/31/13. Asset-class representation: international stocks, MSCI EAFE Index; emerging-market stocks, MSCI Emerging Markets Index; U.S. large-cap stocks, S&P 500 Index; U.S. small-cap stocks, Russell 2000 Index; U.S. bonds, Barclays U.S. Aggregate Index.


A | DDMAX C | DDMCX INST | DDMIX S | DDMSX

1.00

0.13

0.09

0.07

0.03

–0.06

–0.20 0.200.00 0.40 0.60 0.80 1.00


U.S. bonds

Emerging-market stocks

U.S. large-cap stocks

U.S. small-cap stocks

International stocks

Chris Umscheid19 years experience

Pankaj Bhatnagar, PhD20 years experience

Owen Fitzpatrick, CFA 27 years experience

DWS Global Income Builder Fund combines best ideas from strategies used by DWS World Dividend Fund and DWS Unconstrained Income Fund

Top

dow

nB

ott

om

up

Equity Fixed

income

Bestinvestment

ideas

Regional/sector allocationGlobal themes and trends

Fundamental analysisStock picking

Macro themesSector and credit

Fundamental credit analysisIndustry/issuer/issue

Asset allocation


A compelling choice for a low-yield world

— The fund combines the best ideas from strategies used by two diversified sources

of income: DWS World Dividend Fund and DWS Unconstrained Income Fund.

Income, growth and downside protection potential

— Managers can search developed and emerging nations for strong and consistent

dividend payers.

—See DWS World Dividend Fund for more information.

Diversified income for yield-starved investors

—Managers invest in a wide range of fixed-income assets.

—See DWS Unconstrained Income Fund for more information.

DWS Global Income Builder Fund

A | KTRAX C | KTRCX INST | KTRIX S | KTRSX

William Chepolis, CFA28 years experience

Thomas Schuessler, PhD17 years experience

John Ryan19 years experience

Fabian Degen6 years experience


10-year asset-class volatility

Source: Morningstar as of 12/31/13 (9/30/13 for managed futures). For illustrative purposes only. Volatility is measured by standard deviation. The values of equity investments are more volatile than those of other securities. Fixed-income investments are subject to interest-rate risk, and their values will decline as interest rates rise. Alternative investments can be less liquid and more volatile than traditional investments and often lack longer-term track records. See page 15, footnote 44, for asset-class representation.

36.37%

21.78%

13.26%

18.04%

11.26%14.62%

8.51%11.10%

3.37%

Gold Global real estate

Global infrastructure

Commodities U.S.stocks

Long/short

Managedfutures

Currency U.S. bonds

Alternative asset classes Traditional asset classes

A | AAAAX C | AAAPX INST | AAAZX S | AAASX

DWS Alternative Asset Allocation Fund


All-in-one exposure to a variety of alternative asset classes

— Designed for investors with a moderate risk profile, the fund provides access

to a broad mix of exchange-traded funds and Deutsche Asset & Wealth

Management mutual funds.

Active management for simplified alternative investing — An experienced team chooses the alternative asset classes, sets the strategic

allocations periodically and rebalances allocations monthly.

Alternatives for reduced volatility — Many alternative asset classes have demonstrated lower volatility than

U.S. stocks.44

Darwei Kung

7 years experience

Benjamin Pace

30 years experience

Pankaj Bhatnagar, PhD

20 years experience

A | SELAX C | SELEX INST | SELIX S | SELSX

DWS Select Alternative Allocation Fund


All-in-one exposure to a variety of alternative asset classes

— Designed for investors with a conservative risk profile, the fund provides

access to a broad mix of exchange-traded funds and Deutsche Asset &

Wealth Management mutual funds.

Active management for simplified alternative investing — An experienced team chooses the alternative asset classes, sets the strategic

allocations periodically and rebalances allocations monthly.

Alternatives for reduced volatility — Many alternative asset classes have demonstrated lower volatility than

U.S. stocks.45

Darwei Kung

7 years experience

Benjamin Pace

30 years experience

Pankaj Bhatnagar, PhD

20 years experience




Access to Deutsche Bank’s global commodities expertise

— The fund leverages the investment insights and active trading strategies of

Deutsche Bank in an effort to maximize alpha, control beta and reduce volatility.

Strong diversification potential with an inflation hedge

— Commodities are less correlated to U.S. equities relative to other asset classes

over the past 10 years, and they may benefit from an uptick in inflation.46

Best downside capture in category

— The fund sports the second-lowest downside capture in the Morningstar

Commodities Broad Basket category over the one- and two-year periods.47

The category’s second-lowest one-year and lowest two-year standard deviation

Source: Morningstar as of 12/31/13. Direxion Indexed Commodity Strategy (4.95%) and Compass EMP Commodity Strategies Volatility Weighted Fund (7.35%) had the lowest and third-lowest standard deviation, respectively, for the one-year period. Direxion Indexed Commodity Strategy (8.58%) and Old Westbury Real Return Fund (9.84%) had the second- and third -lowest standard deviation, respectively, for the two-year period.

DWS Enhanced Commodity Strategy Fund

A | SKNRX C | SKCRX INST | SKIRX S | SKSRX

John Ryan19 years experience

William Chepolis, CFA28 years experience

Eric Meyer, CFA33 years experience

Darwei Kung 7 years experience


Two-year standard deviationOne-year standard deviation

Morningstar category averageDWS Enhanced Commodity Strategy Fund (Class A)

9.49%

5.75%

12.38%

7.62%


1 Source: Morningstar as of 12/31/13.2 Source: Morningstar as of 12/31/13.3 Source: Morningstar as of 12/31/13.4 Source: Morningstar as of 12/31/13.5 Source: Moody’s Investor Service as of 12/31/12.6 Source: Morningstar as of 12/31/13.7 Source: Morningstar as of 12/31/13.8 Source: Morningstar as of 12/31/13. DWS Strategic High Yield Tax-Free Fund Class S shares 10-year return/standard deviation 4.33%/7.54%. Return and standard deviation for the Morningstar High Yield Muni category,

respectively, are as follows: one-year, –5.99% and 7.04%; five-year, 9.94% and 7.69%; and 10-year, 3.49% and 7.67%.9 Source: Morningstar as of 12/31/13. 10 Source: Morningstar as of 12/31/13. Asset-class representation: short-term bonds, Barclays 1-3 Year Aggregate Index; intermediate-term bonds, Barclays 7-10 Year Index. Returns for other time periods might not be as favorable.11 Morningstar as of 12/31/13. 12 Source: Morningstar as of 12/31/13. 13 Source: Morningstar as of 12/31/13. 14 Source: Morningstar as of 12/31/13. Class S shares rank as follows in the Morningstar Ultrashort category: one-year, 3% (4/137); three-year, 2% (2/94), five-year, 10% (9/82); 10-year, not available. 15 Source: Philadelphia Reserve Bank as of 6/30/12.16 Source: Morningstar as of 12/31/13. Standard deviation and Sharpe Ratio for the Morningstar Multisector Bond category, respectively, are as follows: one-year, 4.64% and 0.46; five-year, 6.18% and 1.80; and

10-year, 6.96% and 0.67.17 Source: Morningstar as of 12/31/13. 18 Source: Morningstar as of 12/31/13. 19 Source: Morningstar as of 12/31/13. Class S shares rank as follows in the Morningstar Bank Loan category: one-year, 54% (118/219); three-year, 67% (99/147); five-year, 32% (40/124); 10-year, not available. 20 Source: Morningstar as of 12/31/13.21 Source: Barclays as of 12/31/13 (1/3/14 for equities). Asset-class representation: high-yield bond bonds, Credit Suisse High Yield Index; intermediate-term bonds; Barclays U.S. Aggregate Index; equities,

S&P 500 Index; U.S. Treasuries, 10-year U.S. Treasury. Income yields are yields to worst; equity yield is dividend yield.22 Source: Morningstar as of 12/31/13. Since May 1993, high-yield bonds returned 8.09% when rates rose by one percentage point or more in 12-month periods. Asset-class representation: high-yield bonds,

Barclays U.S. Corporate High Yield Index. 23 Source: Morningstar as of 12/31/13. Class A shares rank as follows in the High Yield Bond category: one-year, 39% (260/662); three-year, 32% (172/540); five-year, 61% (283/466); 10-year, 37% (122/325).24 Source: Morningstar as of 12/31/13. Standard deviation and Sharpe Ratio for the High Yield Bond category, respectively, are as follows: one-year, 4.73% and 1.47; five-year, 8.45% and 1.84; and 10-year, 9.53% and 0.61.25 Source: Green Street Advisors as of 12/31/13. 26 Morningstar as of 12/31/13. For the 15-year period ending 12/31/13, the MSCI U.S. REIT Index returned 10.28%, while the S&P 500 Index returned 4.68%, the Nasdaq Composite Index returned 4.39% and the Dow Jones

Industrial Average returned 6.46%. As of 1/3/14, the S&P 500 Index dividend yield was 1.89%; as of 12/31/13, the MSCI REIT Index dividend yield was 4.16%.27 Source: Morningstar as of 12/31/13.28 Source: Morningstar as of 12/31/13.29 Source: Morningstar as of 12/31/13.30 Source: Deutsche Asset & Wealth Management as of 12/31/13.


31 Source: Morningstar as of 12/31/13.32 Source: Morningstar as of 12/31/13.33 Source: MSCI, Reuters, Bloomberg, Dow Jones and JPMorgan Quantitative Strategy as of 12/31/12. 34 Source: Morningstar of 12/31/13. Equity indices are the S&P 500 Index and MSCI World Index. Fund is Class A.35 Source: Ned Davis as of 12/31/13.36 Souce: Kenneth French as of 12/31/12 (the latest data available). 37 Source: FactSet as of 1/6/14.38 Source: FactSet as of 12/31/13. 39 Source: Morningstar as of 12/31/13.40 Source: Morningstar/Ibbotson and Deutsche Asset & Wealth Management as of 12/31/13.41 Source: Morningstar/Ibbotson and Deutsche Asset & Wealth Management as of 12/31/13.42 Source: Morningstar as of 12/31/13.43 Source: Morningstar as of 12/31/13.44 Source: Morningstar as of 12/31/13 (9/30/13 for managed futures). Asset-class representation: gold, S&P Global Gold Broad Market Index; global real estate, FTSE EPRA/NAREIT Developed Index; commodities, Dow Jones-UBS

Commodity Index; U.S. stocks, S&P 500 Index; global infrastructure, MSCI World Infrastructure Sector Capped Index; managed futures, Dow Jones Credit Suisse Managed Futures Index; long/short, Morningstar long/short equity

category; currency, Morningstar Currency category; U.S. bonds, Barclays U.S. Aggregate Index. 45 Source: Morningstar as of 12/31/13 (9/30/13 for managed futures). See footnote 44.46 Source: Morningstar as of 12/31/13.47 Source: Morningstar as of 12/31/13. Direxion Indexed Commodity Strategy Fund had the lowest downside capture for the one-year (43.02%) and two-year (55.03%) periods.

Any performance, ratings, rankings and correlations shown are historical, do not guarantee future results, and may be different for different share classes and time periods. Index returns do not reflect fees or expenses and

it is not possible to invest directly in an index. Ratings are based on risk-adjusted performance. The Overall rating for a fund is a weighted average of the ratings for the time periods indicated. Rankings are based on a fund’s

total return unadjusted for sales charges with distributions reinvested. ©2014 Morningstar, Inc. All rights reserved. Morningstar, Inc., shall not be responsible for investment decisions, damages or other losses resulting

from use of this rating. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar risk-adjusted return measure that accounts for variation in a fund’s monthly

performance (including, unless loadwaived, the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in a

category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale

and rated separately, which may cause slight variations in the distribution percentages.)

© 2014 Deutsche Bank AG. All rights reserved. PM135138 (2/14) R-28968-6 CORE-600

Important risk informationInvestments in mutual funds involve risk. Stocks may decline in value. Bond investments are subject to interest-rate and credit risks. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Investing in foreign securities, particularly those of emerging markets, presents certain risks, such as currency fluctuations, political and economic changes, and market risks. There are additional risks associated with investing in commodities, high-yield bonds, aggressive growth stocks, non-diversified/concentrated funds and small- and mid-cap stocks which are more fully explained in the prospectuses. Please read the prospectus for more information.

Obtain a prospectusTo obtain a summary prospectus, if available, or prospectus, download one from www.dws-investments.com for more information regarding the funds’ objectives, risks, charges and expenses.

Investment products: No bank guarantee | Not FDIC insured | May lose value

Investment products offered through DWS Investments Distributors, Inc. Advisory services offered through Deutsche Investment Management Americas, Inc.

For registered representative use only. Not for public viewing or distribution.

Deutsche Asset & Wealth Management represents the asset management and wealth management activities conducted by Deutsche Bank AG or any of its subsidiaries. Clients will be provided Deutsche Asset & Wealth Management products or services by one or more legal entities that will be identified to clients pursuant to the contracts, agreements, offering materials or other documentation relevant to such products or services.

DWS Investments Distributors, Inc.222 South Riverside Plaza Chicago, IL 60606-5808www.dws-investments.com [email protected] (800) 621-1148

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