Prospectus
August 1, 2023
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DWS
Tax-Exempt Portfolio | ||
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CLASS/TICKER |
DWS
TAX-EXEMPT MONEY FUND |
DTBXX |
As
with all mutual funds, the Securities and Exchange Commission (SEC) does not
approve or disapprove these shares or
determine whether the information in this prospectus is truthful or complete. It
is a criminal offense for anyone to inform you
otherwise.
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Account
Maintenance Fee (annually, for fund account balances
below
$10,000 and subject to certain exceptions) |
$ |
(expenses that you pay each year as a % of the value of your investment)
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Management
fee |
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Distribution/service
(12b-1) fees |
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Other
expenses |
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Total
annual fund operating expenses |
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Fee
waiver/expense reimbursement |
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Total
annual fund operating expenses after fee waiver/
expense
reimbursement |
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1
Year |
3
Years |
5
Years |
10
Years |
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$ |
$ |
$ |
$ |
| Prospectus August 1, 2023 | 1 | DWS Tax-Exempt Portfolio |
Money
market fund risk. You could lose
money by investing in the fund. Although the fund
seeks to preserve the value of your
investment at $1.00 per share, it cannot guarantee it will do
so. The fund may impose
a fee upon the sale of your
shares or may temporarily suspend your ability to sell shares if the fund’s
liquidity falls below required minimums because of market conditions or other
factors .
An investment in the
fund is not insured or guaranteed by the Federal Deposit Insurance Corporation
or any other government agency. The fund’s sponsor
has no legal obligation to
provide financial support to the fund, and you should not expect that the
sponsor will provide financial support to the fund at any
time.
Prospectus August 1,
2023
2
DWS Tax-Exempt
Portfolio
Prospectus August 1,
2023
3
DWS Tax-Exempt
Portfolio
Prospectus August 1,
2023
4
DWS Tax-Exempt
Portfolio
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(For periods ended 12/31/2022 expressed as a %) (DWS Tax-Exempt Money Fund)
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Class
Inception |
1
Year |
5
Years |
10
Years |
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Management
Investment
Advisor
DWS Investment
Management Americas, Inc.
Purchase
and Sale of Fund Shares
Minimum
Initial Investment ($)
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Non-IRA |
IRAs |
Automatic
Investment
Plans |
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1,000 |
500 |
500 |
The minimum
additional investment is $50.
To
Place Orders
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Mail |
All
Requests |
DWS
PO Box
219151
Kansas City,
MO 64121-9151 |
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Expedited
Mail |
DWS
430 West 7th
Street
Suite
219151
Kansas City,
MO 64105-1407 | |
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Web
Site |
dws.com | |
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Telephone |
(800)
728-3337, M – F 8 a.m. – 7 p.m. ET | |
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Hearing
Impaired |
For hearing
impaired assistance, please
call us using
a relay service | |
The fund is generally open on days
when the New York Stock Exchange is open for regular trading. If you invest with
the fund directly through the transfer agent, you can open a new fund account
and make an initial investment on the Internet at dws.com , by using the mobile app or by
mail. You can make additional investments or sell shares of the fund on any
business day by visiting the fund’s Web site, by using the mobile app, by mail,
or by telephone; however you may have to elect certain privileges on your
initial account application. The ability to open new fund accounts and to
transact online or using the mobile app varies depending on share class and
account type. If you are working with a financial representative, contact your
financial representative for assistance with buying or selling fund shares. A
financial representative separately may impose its own policies and procedures
for buying and selling fund shares.
The
fund’s shares are available for purchase only by natural persons. The fund has
implemented policies and procedures that are reasonably designed to limit
beneficial ownership of the fund’s shares to natural persons.
Any new investors
wishing to purchase shares of the fund may be required to demonstrate
eligibility. If the fund subsequently determines that a beneficial owner of fund
shares is not a natural person, then the fund, upon notice, will involuntarily
redeem all of the shares of such ineligible investor and send the net proceeds
to the investor.
Prospectus August 1,
2023
5
DWS Tax-Exempt
Portfolio
Tax
Information
The fund's
distributions are generally exempt from regular federal income tax. A portion of
the fund's dividends may be subject to federal income tax, including the federal
alternative minimum tax.
Payments
to Broker-Dealers and
Other Financial Intermediaries
Other Financial Intermediaries
If you purchase
shares of the fund through a broker-dealer or other financial intermediary (such
as a bank), the fund, the Advisor, and/or the Advisor’s affiliates may pay the
intermediary for the sale of fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend the fund over another investment.
Ask your salesperson or visit your financial intermediary’s Web site for more
information.
Prospectus August 1,
2023
6
DWS Tax-Exempt
Portfolio
Fund
Details
Additional
Information About Fund Strategies and Risks
Investment
Objective
The fund seeks to
provide maximum current income that is exempt from federal income taxes to the
extent consistent with stability of capital.
Principal
Investment Strategies
Main
investments. The fund normally
invests at least 80% of its net assets, plus the amount of any borrowings for
investment purposes, in municipal securities, the income from which is free from
regular federal income tax and alternative minimum tax (AMT). This policy is
fundamental and may not be changed without shareholder approval. The fund may
invest in municipal securities of various locales, including any territory or
Commonwealth of the US.
The fund is a money
market fund that is managed in accordance with federal regulations, which govern
the quality, maturity, diversity and liquidity of instruments in which a money
market fund may invest. The fund follows policies designed to seek to maintain a
stable $1.00 share price:
◾
Fund securities are
denominated in US dollars and, at the time of purchase, have remaining
maturities of 397 days (about 13 months) or less, or have certain maturity
shortening features (such as interest rate resets and demand features) that have
the effect of reducing their maturities to 397 days or less.
◾
The fund maintains a
dollar-weighted average maturity of (i) 60 days or less and (ii) 120 days or
less determined without regard to interest rate resets.
◾
The fund maintains
certain minimum liquidity standards such that:
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the fund may not
purchase a security other than a security offering weekly liquidity if,
immediately after purchase, the fund would have invested less than 30% of its
total assets in securities offering weekly liquidity (includes securities that
mature or are subject to demand within five business days, cash, direct US
government obligations and government agency discount notes with remaining
maturities of 60 days or less); and
-
the fund may not
purchase an illiquid security if, immediately after purchase, the fund would
have invested more than 5% of its total assets in illiquid securities
(securities that cannot be sold or disposed of in the ordinary course of
business within seven days at approximately the market value ascribed to them by
the fund).
The fund pursues its
objective by investing in high quality, short-term municipal
obligations.
The fund is designed
for investors in a moderate to high tax bracket who are interested in federal
tax-exempt income along with the liquidity and stability that a money market
fund is designed to offer.
In July 2023, changes to the federal
regulations that govern money market funds, including government money market
funds like the fund, were adopted. The changes will be effective at various
times in 2023 and 2024. Among the changes are: (i) an increase in the minimum
investment percentages in securities offering daily and weekly liquidity and
(ii) removal of the ability to temporarily suspend (gate)
redemptions.
The fund primarily
invests in the following types of investments:
◾
Municipal trust
receipts (MTRs), also called municipal asset-backed securities, floating rate
trust certificates, or municipal securities trust receipts. MTRs are trusts that
hold municipal securities and that offer purchasers (such as the fund) a
conditional right to sell their interest in the underlying securities to a
financial institution at par value plus accrued interest. The fund may invest up
to 50% of its net assets in MTRs, as well as an additional 10% of net assets on
a temporary basis to manage inflows into the fund.
◾
General obligation
notes and bonds, which an issuer backs with its full faith and credit (taxing
power).
◾
Revenue notes and
bonds, which are payable from specific revenue sources. These are often tied to
the public works projects the bonds are financing, but are not generally backed
by the issuer’s taxing power.
◾
Tax-exempt
commercial paper, which is tax-exempt debt of borrowers that typically matures
in 270 days or less.
◾
Short-term municipal
notes, such as tax anticipation notes, that are issued in anticipation of the
receipt of tax revenues.
| Prospectus August 1, 2023 | 7 | Fund Details |
◾
Municipal
obligations backed by letters of credit (a document issued by a bank
guaranteeing the issuer’s payments for a stated amount), general bank guarantees
or municipal bond insurance.
◾
Floating rate bonds,
whose interest rates vary with changes in specified market rates or indices. The
fund may invest in high quality floating rate bonds with maturities of one year
or more if it has the right to sell them back at their face value within 397
days of purchase.
◾
Tax-exempt private
activity bonds, which are revenue bonds that finance non-governmental
activities, such as private industry construction and which meet certain tax law
requirements.
◾
Securities of other
investment companies, including variable rate demand preferred securities of
closed-end investment companies that are eligible for purchase by money market
funds (generally, because such preferred securities are structured as
unconditional demand instruments with a third party demand provider, i.e.,
guarantor).
◾
Obligations of the
territories and Commonwealths of the US, such as Puerto Rico, the US Virgin
Islands, Guam and their agencies and authorities.
Management
process. The fund buys
short-term municipal obligations that the Advisor determines present minimal
credit risks.
In considering
whether a security presents minimal credit risks, the Advisor will analyze the
capacity of the security’s issuer or guarantor to meet its financial
obligations, which includes, as appropriate, with respect to the issuer or
guarantor the following factors: (i) financial condition, (ii) sources of
liquidity, (iii) ability to react to future market-wide and issuer specific
events, including ability to repay debt in a highly adverse situation; and (iv)
competitive position within its industry and industry strength within the
economy and relative to economic trends.
Working in
consultation with portfolio management, a credit team screens potential
securities and develops a list of those that the fund may buy. Portfolio
management, looking for attractive yield and weighing considerations such as
credit quality, economic outlooks and possible interest rate movements, then
decides which securities on this list to buy.
Portfolio management
may adjust the fund’s exposure to interest rate risk, typically seeking to take
advantage of possible rises in interest rates and to preserve yield when
interest rates appear likely to fall.
Main
Risks
There are several
risk factors that could reduce the yield you get from the fund, cause the fund’s
performance to trail that of other investments, or cause you to lose
money.
Money
market fund risk. You could lose
money by investing in the fund. Although the fund
seeks to preserve the value of your investment at $1.00 per share, it cannot
guarantee it will do
so.The
fund may impose a fee upon the sale of your
shares or may temporarily suspend your ability to sell shares if the fund’s
liquidity falls below required minimums because of market conditions or other
factors. An investment in the
fund is not insured or guaranteed by the Federal Deposit Insurance Corporation
or any other government agency.The fund’s sponsor
has no legal obligation to
provide financial support to the fund, and you should not expect that the
sponsor will provide financial support to the fund at any time.
Market disruption
risk. Economies and financial markets
throughout the world are becoming increasingly interconnected, which increases
the likelihood that events or conditions in one country or region will adversely
impact markets or issuers in other countries or regions. The value of the fund’s
investments may be negatively affected by adverse changes in overall economic or
market conditions, such as the level of economic activity and productivity,
unemployment and labor force participation rates, inflation or deflation (and
expectations for inflation or deflation), interest rates, demand and supply for particular
products or resources including labor, and debt levels and credit ratings, among
other factors. Such adverse conditions may contribute to an overall economic
contraction across entire economies or markets, which may negatively impact the
profitability of issuers operating in those economies or markets. In addition,
geopolitical and other globally interconnected occurrences, including war,
terrorism, economic or financial crises, uncertainty or contagion, trade
disputes, government debt crises (including defaults or downgrades) or
uncertainty about government debt payments, public health crises, natural disasters, climate change
and related events or conditions have led, and in the future may lead, to
disruptions in the US and world economies and markets, which may increase
financial market volatility and have significant adverse direct or indirect
effects on the fund and its investments. Adverse market conditions or
disruptions could cause the fund to lose money, experience significant
redemptions, and encounter operational difficulties. Although multiple asset
classes may be affected by adverse market conditions or a particular market
disruption, the duration and effects may not be the same for all types of
assets.
Russia's military incursions in
Ukraine have led to, and may lead to, additional sanctions being levied by the
United States, European Union and other countries against Russia. Russia's
military incursions and the resulting sanctions could adversely affect global
energy, commodities and financial markets
and thus could affect the value of the fund's investments. The extent and
duration of the military action, sanctions and resulting market disruptions are
impossible to predict, but could be substantial.
Other market disruption events
include the pandemic spread of the novel coronavirus known as COVID-19, which at
times has caused significant uncertainty, market volatility, decreased economic
and other activity, increased
Prospectus August 1,
2023
8
Fund
Details
government activity, including
economic stimulus measures, and supply chain disruptions. While COVID-19 is no
longer considered to be a public health
emergency, the fund and its investments may be
adversely affected by its lingering effects well into the future.
Adverse market conditions or
particular market disruptions, such as those caused by Russian military action
and the COVID-19 pandemic, may magnify the impact of each of the other risks
described in this “MAIN RISKS” section and may increase volatility in one or
more markets in which the fund invests leading to the potential for greater
losses for the fund.
Interest rate
risk. Rising interest
rates could cause the value of the fund’s investments — and therefore its share
price as well — to decline. A rising interest rate environment may cause
investors to move out of fixed-income securities and related markets on a large
scale, which could adversely affect the price and liquidity of such securities
and could also result in increased redemptions from the fund. Increased
redemptions from the fund may force the fund to sell investments at a time when
it is not advantageous to do so, which could result in losses. Recently, there
have been signs of inflationary price movements. As such, fixed-income and
related markets may experience heightened levels of interest rate volatility and
liquidity risk. A sharp rise in interest rates could cause the value of the
fund’s investments to decline and impair the fund’s ability to maintain a stable
$1.00 share price. Conversely, any decline in interest rates is likely to cause
the fund’s yield to decline, and during periods of unusually low or negative
interest rates, the fund’s yield may approach or fall below zero. A low or
negative interest rate environment may prevent the fund from providing a
positive yield or paying fund expenses out of current income and, at times,
could impair the fund’s ability to maintain a stable $1.00 share price. Over
time, the total return of a money market fund may not keep pace with inflation,
which could result in a net loss of purchasing power for long-term investors.
Interest rates can change in response to the supply and demand for credit,
government and/or central bank monetary policy and action, inflation rates, and
other factors. Recent and potential future changes in monetary policy made by
central banks or governments are likely to affect the level of interest rates.
Changing interest rates may have unpredictable effects on markets, may result in
heightened market volatility and potential illiquidity and may detract from fund
performance to the extent the fund is exposed to such interest rates and/or
volatility. Money market funds try to minimize interest rate risk by purchasing
short-term securities.
London Interbank Offered Rate
(LIBOR), a common benchmark rate previously used for certain floating rate
securities, has been phased out as of the end of 2021 for most maturities and
currencies. As of the end of June 2023, certain remaining widely used US Dollar
LIBOR rates that were published for an additional period of time
to assist with the transition were
also phased out. The transition process from LIBOR to Secured Overnight
Financing Rate (SOFR) for US Dollar LIBOR rates has become
increasingly well defined, especially following the signing of the federal
Adjustable Interest Rate (LIBOR) Act in March 2022, and the adoption
of implementing regulations in December 2022, which replaced LIBOR-based
benchmark rates in instruments with no, or insufficient, alternative
rate-setting provisions with a SOFR-based rate following the cessation of LIBOR.
There is no assurance that the composition or characteristics of any such
alternative reference rate will be similar to or produce the same value or
economic equivalence as LIBOR or that it will have the same volume or liquidity
as did LIBOR prior to its discontinuance or unavailability, which may affect the
value or liquidity of, or return on, certain of the fund's
investments.
Credit risk.
The fund's performance
could be hurt and the fund's share price could fall below $1.00 if an issuer of
a debt security suffers an adverse change in financial condition that results in
the issuer not making timely payments of interest or principal, a security
downgrade or an inability to meet a financial obligation.
For securities that
rely on third-party guarantors to support their credit quality, the same risks
may apply if the financial condition of the guarantor deteriorates or the
guarantor ceases to insure securities. Because guarantors may insure many types
of securities, including subprime mortgage bonds and other high-risk bonds,
their financial condition could deteriorate as a result of events that have
little or no connection to securities owned by the fund.
Liquidity
and transaction risk. The liquidity of
portfolio securities can deteriorate rapidly due to credit events affecting
issuers or guarantors or due to general market conditions and a lack of willing
buyers. When there are no willing buyers and an instrument cannot be readily
sold at a desired time or price, the fund may have to accept a lower price or
may not be able to sell the instrument at all. The potential for liquidity risk
may be magnified by a rising interest rate environment or other circumstances
where investor redemptions from money market funds may be higher than normal,
potentially causing increased supply in the market due to selling activity. If
dealer capacity in debt instruments is insufficient for market conditions, it
may further inhibit liquidity and increase volatility in the debt markets.
Additionally, market participants other than the fund may attempt to sell debt
holdings at the same time as the fund, which could cause downward pricing
pressure and contribute to illiquidity. An inability to sell one or more
portfolio securities can adversely affect the fund’s ability to maintain a $1.00
share price or prevent the fund from being able to take advantage of other
investment opportunities.
Unusual market
conditions, an unusually high volume of redemption requests or other similar
conditions could cause the fund to be unable to pay redemption proceeds
Prospectus August 1,
2023
9
Fund
Details
within a short
period of time. If the fund is forced to sell securities at an unfavorable time
and/or under unfavorable conditions, such sales may adversely affect the fund’s
ability to maintain a $1.00 share price.
Municipal
securities risk.
Municipal instruments may be susceptible to periods of economic stress, which
could affect the market values and marketability of many or all municipal
obligations of issuers in a state, US territory, or possession. For example, the
COVID-19 pandemic has significantly stressed the financial resources of some
municipal issuers, which may impair a municipal issuer’s ability to meet its
financial obligations when due and could adversely impact the value of its
bonds, which could negatively impact the performance of the fund. The fund could
also be impacted by events in the municipal securities market, including the
supply and demand for municipal securities. Negative events, such as severe
fiscal difficulties, bankruptcy of one or more issuers, an economic downturn,
unfavorable legislation, court rulings or political developments, or reduced
monetary support from the federal government could hurt fund performance. The
municipal securities market can be susceptible to increases in volatility and
decreases in liquidity. Liquidity can decline unpredictably in response to
overall economic conditions or credit tightening. Increases in volatility and
decreases in liquidity may be caused by a rise in interest rates (or the
expectation of a rise in interest rates). Municipal securities may include
revenue bonds, which are generally backed by revenue from a specific project or
tax. The issuer of a revenue bond makes interest and principal payments from
revenues generated from a particular source or facility, such as a tax on
particular property or revenues generated from a municipal water or sewer
utility or an airport. Revenue bonds generally are not backed by the full faith
and credit and general taxing power of the issuer. The value of municipal
securities is strongly influenced by the value of tax-exempt income to
investors. Changes in tax and other laws, including changes to individual or
corporate tax rates, could alter the attractiveness and overall demand for
municipal securities. Municipal securities may also have exposure to potential
physical risks resulting from climate change, including extreme weather,
flooding and fires. Climate risks, if they materialize, can adversely impact a
municipal issuer’s financial plans in current or future years or may impair a
facility or other source generating revenues backing a municipal issuer’s
revenue bonds. As a result, the impact of climate risks may adversely impact the
value of the fund’s shares.
Certain sectors of the municipal
securities market such as hospitals, airports and mass transit providers may be
disproportionately impacted by COVID-19 related cost increases and revenue
declines, potentially resulting in heightened credit risk for issuers in these
sectors. Municipal securities may also have
exposure to potential physical risks resulting from climate change, including
extreme weather, flooding and fires. Climate risks, if they
materialize, can adversely impact a
municipal issuer’s financial plans in current or future years or may impair a
facility or other source generating revenues backing a municipal issuer’s
revenue bonds. As a result, the impact of climate risks may adversely impact the
value of the fund’s shares.
Factors contributing
to the economic stress on municipal issuers may include the costs associated
with combatting the COVID-19 pandemic, lower sales tax revenue as a result of
decreased consumer spending, lower income tax revenue due to higher
unemployment, and lower revenues generated by projects and facilities backing
revenue bonds due to closures, curtailment of services and/or changes in
consumer behavior. In light of the uncertainty surrounding the magnitude,
duration, reach, costs and effects of the pandemic, as well as actions that have
been or could be taken by governmental authorities or other third parties, it is
difficult to predict the level of financial stress and duration of such stress
municipal issuers may experience.
Security
selection risk. Although short-term
securities are relatively stable investments, it is possible that the securities
in which the fund invests will not perform as expected. This could cause the
fund's returns to lag behind those of similar money market funds and could
result in a decline in share price.
Municipal
trust receipts risk. The fund’s
investment in MTRs is subject to similar risks as other investments in debt
obligations, including interest rate risk, credit risk and security selection
risk. Additionally, investments in MTRs raise certain tax issues that may not be
presented by direct investments in municipal securities. There is some risk that
certain issues could be resolved in a manner that could adversely impact the
performance of the fund.
Tax
risk.
Any distributions to shareholders that represent income from taxable securities
will generally be taxable as ordinary income at both the state and federal
levels, while other distributions, such as capital gains, are taxable to the
same extent they would be for any mutual fund. New federal or state governmental
action could adversely affect the tax-exempt status of securities held by the
fund, resulting in a higher tax liability for shareholders and potentially
hurting fund performance as well.
Counterparty
risk. A
financial institution or other counterparty with whom the fund does business, or
that underwrites, distributes or guarantees any investments or contracts that
the fund owns or is otherwise exposed to, may decline in financial health and
become unable to honor its commitments. This could cause losses for the fund or
could delay the return or delivery of collateral or other assets to the
fund.
US
territory and Commonwealth obligations risk.
Adverse
political and economic conditions and developments affecting any territory or
Commonwealth of the US may, in turn, negatively affect the value of the fund’s
holdings in such obligations.
Prospectus August 1,
2023
10
Fund
Details
Prepayment
and extension risk. When interest rates
fall, issuers of high interest debt obligations may pay off the debts earlier
than expected (prepayment risk), and the fund may have to reinvest the proceeds
at lower yields. When interest rates rise, issuers of lower interest debt
obligations may pay off the debts later than expected (extension risk), thus
keeping the fund’s assets tied up in lower interest debt obligations.
Ultimately, any unexpected behavior in interest rates could increase the
volatility of the fund’s yield and could hurt fund performance. Prepayments
could also create capital gains tax liability in some instances.
Risks
of holding cash. The fund will at
times hold cash positions, which may hurt the fund’s performance. Cash positions
may also subject the fund to additional risks and costs, including any fees
imposed by the fund’s custodian for large cash balances.
Inflation
risk.
Inflation risk is the risk that the real value of certain assets or real income
from investments (the value of such assets or income after accounting for
inflation) will be less in the future as inflation decreases the value of money.
Inflation, and investors’ expectation of future inflation, can impact the
current value of the fund's portfolio, resulting in lower asset values and
losses to shareholders. This risk may be elevated compared to historical market
conditions because of recent monetary policy measures and the current interest
rate environment.
Fees
and gates risk. The fund has
adopted policies and procedures such that the fund will be able to impose
liquidity fees on redemptions and/or temporarily suspend (gate) redemptions for
up to 10 business days in any 90 day period in the event that the fund's
liquidity falls below required minimums. A liquidity fee would reduce the amount
shareholders receive upon redemption of shares. Redemption gates would prevent
shareholders from redeeming fund shares.
Operational
and technology risk. Cyber-attacks,
disruptions or failures that affect the fund’s service providers or
counterparties, issuers of securities held by the fund, or other market
participants may adversely affect the fund and its shareholders, including by
causing losses for the fund or impairing fund operations. For example, the
fund’s or its service providers’ assets or sensitive or confidential information
may be misappropriated, data may be corrupted and operations may be disrupted
(e.g., cyber-attacks, operational failures or broader disruptions may cause the
release of private shareholder information or confidential fund information,
interfere with the processing of shareholder transactions, impact the ability to
calculate the fund’s net asset value and impede trading). Market events and
disruptions also may trigger a volume of transactions that overloads current
information technology and communication systems and processes, impacting the
ability to conduct the fund’s operations.
While the fund and
its service providers may establish business continuity and other plans and
processes that seek to address the possibility of and fallout from
cyber-attacks, disruptions or failures, there are inherent limitations in such
plans and systems, including that they do not apply to third parties, such as
fund counterparties, issuers of securities held by the fund or other market
participants, as well as the possibility that certain risks have not been
identified or that unknown threats may emerge in the future and there is no
assurance that such plans and processes will be effective. Among other
situations, disruptions (for example, pandemics or health crises) that cause
prolonged periods of remote work or significant employee absences at the fund’s
service providers could impact the ability to conduct the fund’s operations. In
addition, the fund cannot directly control any cybersecurity plans and systems
put in place by its service providers, fund counterparties, issuers of
securities held by the fund or other market participants.
Cyber-attacks may
include unauthorized attempts by third parties to improperly access, modify,
disrupt the operations of, or prevent access to the systems of the fund’s
service providers or counterparties, issuers of securities held by the fund or
other market participants or data within them. In addition, power or
communications outages, acts of god, information technology equipment
malfunctions, operational errors, and inaccuracies within software or data
processing systems may also disrupt business operations or impact critical
data.
Cyber-attacks,
disruptions, or failures may adversely affect the fund and its shareholders or
cause reputational damage and subject the fund to regulatory fines, litigation
costs, penalties or financial losses, reimbursement or other compensation costs,
and/or additional compliance costs. In addition, cyber-attacks, disruptions, or
failures involving a fund counterparty could affect such counterparty’s ability
to meet its obligations to the fund, which may result in losses to the fund and
its shareholders. Similar types of operational and technology risks are also
present for issuers of securities held by the fund, which could have material
adverse consequences for such issuers, and may cause the fund’s investments to
lose value. Furthermore, as a result of cyber-attacks, disruptions, or failures,
an exchange or market may close or issue trading halts on specific securities or
the entire market, which may result in the fund being, among other things,
unable to buy or sell certain securities or financial instruments or unable to
accurately price its investments.
For example, the
fund relies on various sources to calculate its NAV. Therefore, the fund is
subject to certain operational risks associated with reliance on third party
service providers and data sources. NAV calculation may be impacted by
operational risks arising from factors such as failures in systems and
technology. Such failures may result in delays in the calculation of the fund’s
NAV and/or
Prospectus August 1,
2023
11
Fund
Details
the inability to
calculate NAV over extended time periods. The fund may be unable to recover any
losses associated with such failures.
Other
Policies
While the previous
pages describe the main points of the fund’s strategy and risks, there are a few
other matters to know about:
◾
Although major
changes tend to be infrequent, the fund's Board could change the fund's
investment objective without shareholder approval.
◾
For temporary
defensive purposes, or when acceptable short-term municipal securities are not
available, more than 20% of the fund’s net assets may be held in cash or
invested in short-term taxable instruments, including obligations of the US
government, its agencies or instrumentalities, other short-term high quality
rated debt securities or, if unrated, determined to be of comparable quality in
the opinion of the Advisor, commercial paper, bank obligations, including
negotiable certificates of deposit, time deposits and bankers’ acceptances, and
repurchase agreements. Short-term investments may also include shares of money
market funds. To the extent the fund invests in such instruments, the fund will
not be pursuing its investment objective. However, portfolio management may
choose not to use these strategies for various reasons, even in volatile market
conditions.
◾
Purchase and redemption decisions by
institutional investors in money market funds may be highly sensitive to changes
in portfolio yield and, as a result, the fund's assets may fluctuate
significantly over short periods of time in response to changes in the fund's
yield relative to other money market funds. Large redemptions by these
shareholders may impact the fund's ability to maintain a $1.00 share
price.
◾
From time to time,
the fund may have a concentration of shareholder accounts holding a significant
percentage of shares outstanding. Investment activities of these shareholders
could have a material impact on the fund.
◾
Your fund assets may
be at risk of being transferred to the appropriate state if you fail to maintain
a valid address and/or if certain activity does not occur in your account within
the time specified by state abandoned property law. Contact your financial
representative or the transfer agent for additional
information.
◾
Shareholders of the
fund (which may include affiliated and/or non-affiliated registered investment
companies that invest in the fund) may make relatively large redemptions or
purchases of fund shares. These transactions may cause the fund to have to sell
securities or invest additional cash, as the case may be. While it is impossible
to predict the overall impact of these transactions over time, there could be
adverse effects on the fund’s performance to the extent that the fund may be
required to sell securities or invest cash at times when it would not otherwise
do so. These transactions could
adversely impact the
fund’s liquidity, accelerate the realization of taxable income if sales of
securities resulted in capital gains or other income and increase transaction
costs, which may adversely affect the fund’s performance. These transactions
could also adversely impact the fund’s ability to implement its investment
strategies and pursue its investment objective, and, as a result, a larger
portion of the fund’s assets may be held in cash or cash equivalents. In
addition, large redemptions could significantly reduce the fund’s assets, which
may result in an increase in the fund’s expense ratio on account of expenses
being spread over a smaller asset base and/or the loss of fee
breakpoints.
For
More Information
This prospectus
doesn’t tell you about every policy or risk of investing in the fund. If you
want more information on the fund’s allowable securities and investment
practices and the characteristics and risks of each one, you may want to request
a copy of the Statement of Additional Information (the back cover
tells you how to do this).
Keep in mind that
there is no assurance that the fund will achieve its objective.
A schedule of the
fund’s portfolio holdings, including information required by applicable
regulations, is posted once each month on dws.com (the Web site does
not form a part of this prospectus). Portfolio holdings as of each month-end are
posted to the Web site within five business days of the date of the applicable
portfolio holdings information. More frequent posting of portfolio holdings
information may be made from time to time on dws.com. The posted
portfolio holdings information is available by fund and generally remains
accessible for a period of not less than six months. The fund also may post on
the Web site, on the same or a more frequent basis, various depictions of
portfolio characteristics such as the allocation of the portfolio across various
security types, market sectors and sub-sectors and maturities, liquidity and
risk characteristics of the portfolio. The fund’s Statement of Additional
Information includes a description of the fund’s policies and procedures with
respect to the disclosure of the fund’s portfolio holdings.
Who
Manages and Oversees the Fund
The
Investment Advisor
DWS Investment
Management Americas, Inc. (“DIMA” or the “Advisor”), with headquarters at 875
Third Avenue, New York, NY 10022, is the investment advisor for the fund. Under
the oversight of the Board, the Advisor makes investment decisions, buys and
sells securities for the fund and conducts research that leads to these purchase
and sale decisions. The Advisor is an indirect, wholly-owned subsidiary of DWS
Group GmbH & Co. KGaA (“DWS Group”), a separate, publicly-listed financial
services firm that is an indirect, majority-owned subsidiary of Deutsche Bank
AG. The Advisor and its predecessors
Prospectus August 1,
2023
12
Fund
Details
have more than 90
years of experience managing mutual funds and provide a full range of global
investment advisory services to institutional and retail clients.
DWS represents the
asset management activities conducted by DWS Group or any of its subsidiaries,
including DIMA, other affiliated investment advisors and DWS Distributors, Inc.
(“DDI” or the “Distributor”). DWS is a global organization that offers a wide
range of investing expertise and resources, including hundreds of portfolio
managers and analysts and an office network that reaches the world’s major
investment centers. This well-resourced global investment platform brings
together a wide variety of experience and investment insight across industries,
regions, asset classes and investing styles.
Management
Fee.
The Advisor receives a management fee from the fund. Below is the actual rate
paid by the fund for the most recent fiscal year, as a percentage of the fund’s
average daily net assets.
|
Fund
Name |
Fee
Paid |
|
DWS
Tax-Exempt Portfolio |
0.00
%* |
*
Reflecting the effect
of expense limitations and/or fee waivers then in effect.
The management fee
for the fund is computed based on the combined average daily net assets of DWS
Government & Agency Securities Portfolio and DWS Tax-Exempt Portfolio, each
a series of Cash Account Trust, and is allocated to the fund based upon the
fund's relative net assets.
The Advisor has contractually agreed
through July 31, 2024 to waive its fees and/or reimburse certain operating
expenses of the DWS Tax-Exempt Money Fund of the DWS Tax-Exempt Portfolio to the
extent necessary to maintain the total annual operating expenses (excluding
certain expenses such as extraordinary expenses, taxes, brokerage and interest
expenses) at a ratio no higher than 0.40%. The agreement may only be terminated
with the consent of the fund’s Board.
From time to time,
the Advisor may voluntarily waive a portion of its fees and/or reimburse certain
operating expenses of the fund. These voluntary waivers and/or reimbursements
may be terminated at any time at the option of the Advisor. These voluntary
waivers and/or reimbursements are in addition to any existing contractual
expense limitations.
The Advisor and its
affiliates may voluntarily waive a portion of their fees and/or reimburse
certain expenses to the extent necessary to assist the fund in attempting to
avoid a negative yield. There is no guarantee that the fund will avoid a
negative yield. These voluntary waivers and/or reimbursements may be amended or
terminated at any time at the option of the Advisor. These voluntary waivers
and/or reimbursements are in addition to any existing contractual expense
limitations.
A discussion
regarding the basis for the Board's approval of the fund’s investment management
agreement is contained in the most recent shareholder report for the annual
period ended April 30 and the semi-annual period ended October 31 (see
“Shareholder reports” on the back cover).
Under a separate
administrative services agreement between the fund and the Advisor, the fund
pays the Advisor a fee of 0.097% of the fund’s average daily net assets for
providing most of the fund's administrative services. The administrative
services fee discussed above is included in the fees and expenses table under
“Other expenses.”
Multi-Manager
Structure. The Advisor,
subject to the approval of the Board, has ultimate responsibility to oversee any
subadvisor to the fund and to recommend the hiring, termination and replacement
of subadvisors. The fund and the Advisor have received an order from the SEC
that permits the Advisor to appoint or replace certain subadvisors, to manage
all or a portion of the fund’s assets and enter into, amend or terminate a
subadvisory agreement with certain subadvisors, in each case subject to the
approval of the fund’s Board but without obtaining shareholder approval
(“multi-manager structure”). The multi-manager structure applies to subadvisors
that are not affiliated with the fund or the Advisor (“nonaffiliated
subadvisors”), as well as subadvisors that are indirect or direct, wholly-owned
subsidiaries of the Advisor or that are indirect or direct, wholly-owned
subsidiaries of the same company that, indirectly or directly, wholly owns the
Advisor (“wholly-owned subadvisors”). Pursuant to the SEC order, the Advisor,
with the approval of the fund’s Board, has the discretion to terminate any
subadvisor and allocate and reallocate the fund’s assets among any other
nonaffiliated subadvisors or wholly-owned subadvisors (including terminating a
nonaffiliated subadvisor and replacing it with a wholly-owned subadvisor). The
fund and the Advisor are subject to the conditions imposed by the SEC order,
including the condition that within 90 days of hiring a new subadvisor pursuant
to the multi-manager structure, the fund will provide shareholders with an
information statement containing information about the new subadvisor. The
shareholders of the fund have approved the multi-manager structure described
herein.
Management
A group of
investment professionals is responsible for the day-to-day management of the
fund. These investment professionals have a broad range of experience managing
money market funds.
Prospectus August 1,
2023
13
Fund
Details
Investing in the
Fund
The following pages
tell you how to invest in the fund and what to expect as a shareholder. The
following pages also tell you about many of the services, choices and benefits
of being a shareholder. You’ll also find information on how to check the status
of your account using the method that’s most convenient for you.
If you’re investing directly with
the fund’s transfer agent, all of this information applies to you. If you’re
investing through a “third party provider” — for example, a workplace retirement
plan, financial supermarket or financial representative — your provider may have
its own policies or instructions and you should follow those.
You can find out
more about the topics covered here by speaking with your financial
representative or a representative of your workplace retirement plan or other
investment provider. For an analysis of the fees associated with an investment
in the fund or similar funds, please refer to tools.finra.org/fund_analyzer/
(this Web site does not form a part of this prospectus).
Buying,
Exchanging and Selling Shares
To
contact DWS
By
TELEPhone
(800)
728-3337
By
Mail
|
Type |
Address |
|
Expedited
mail |
|
|
All
Requests |
DWS
430 West 7th
Street
Suite
219151
Kansas City,
MO 64105-1407 |
|
Regular
mail |
|
|
All
Requests |
DWS
P.O. Box
219151
Kansas City,
MO 64121-9151 |
How
to Buy Shares
Please note that your account cannot
be opened until we receive a completed account application. Eligibility to open
new accounts and to process transactions on the Internet or using the mobile app
varies by account type and share class.
Minimum
Initial Investment ($)
|
|
Non-IRA |
IRAs |
Automatic
Investment
Plans |
|
|
1,000 |
500 |
500 |
The minimum
additional investment is $50.
Through
a Financial Representative
Contact your
financial representative to obtain a new account application or for instructions
about how to set up a new account. Your financial representative can also assist
with making additional investments into an existing account.
On the
Internet
Register at dws.com to establish a new account or to
set up online access to your existing account(s), or log in to the Web site if
you have previously registered. Follow the instructions on the Web site to
request a purchase with money from the bank account you have established on your
DWS fund account(s). Electronic purchases using the Automated Clearing House
system (ACH) take two to three days to be completed and there is a $250,000
maximum. If establishing a new account online, you can also elect to make your
initial investment by mailing a check to the address provided in the new account
application process.
Using the
Mobile App
Download the mobile app (available
for both iOS and Android) and register to establish a new account or to set up
mobile access to your existing account(s), or log in using the mobile app if you
have previously registered. Follow the instructions on the mobile app to request
a purchase with money from the bank account you have established on your DWS
fund account(s). Electronic purchases using ACH take two to three days to be
| Prospectus August 1, 2023 | 14 | Investing in the Fund |
completed and there is a $250,000
maximum. If establishing a new account using the mobile app, you can also elect
to make your initial investment by mailing a check to the address provided in
the new account application process.
By
Mail or Expedited Mail
To establish an account, simply
complete the appropriate application and mail it to the address provided on the
form. With your application, include your check made payable to “DWS Funds” for
the required initial minimum investment.
Once your account is established, to
make additional investments, send a check made payable to “DWS Funds” and an
investment slip to the appropriate address. If you do not have an investment
slip, include a letter with your name, account number, the full fund name and
share class, and your investment instructions. If your check fails to clear, the
fund has the right to cancel your order, hold you liable or charge you or your
account for any losses or fees the fund or its agents have
incurred.
By
Automatic Investment Plan
If you wish to take advantage of the
lower initial investment minimums by establishing an Automatic Investment Plan,
make sure to complete that section on the new account application. If you are establishing an account
by mail you will need to attach a voided check for the bank account from which
the funds will be drawn. Subsequent investments are made automatically from the
shareholder’s account at a bank, savings and loan or credit union into the
shareholder’s fund account. The maximum Automatic Investment Plan investment is
$250,000. Termination by a shareholder will become effective within thirty days
after DWS has received the request. The fund may immediately terminate a
shareholder’s Automatic Investment Plan in the event that any item is unpaid by
the shareholder’s financial institution.
Other
Ways to Buy Shares
The following
privileges must be established on your account before an investment request is
made. This can either be done by completing the applicable section(s) on the new
account application or by contacting a customer service representative for
instructions.
By Telephone (for
additional investments only). Call DWS and use our automated
system to place your purchase using the Automated Clearing House system (ACH) or
choose to be transferred to a customer service representative to complete your
request. Transactions take two to three days to be completed and there is a $50
minimum and a $250,000 maximum.
The
fund’s shares are available for purchase only by natural persons. The fund has
implemented policies and procedures that are reasonably designed to limit
beneficial ownership of the fund’s shares to natural persons. Natural persons
may invest in the fund directly or through certain
tax-advantaged
savings accounts, trusts and other retirement accounts, which may include
participant directed defined contribution plans, individual retirement accounts,
simplified employee pension arrangements, simple retirement accounts, custodial
accounts, deferred compensation plans, medical savings accounts, college savings
plans, health savings account plans, or certain other accounts where the
ultimate decision maker is an institution (e.g., an investment adviser managing
discretionary investment accounts for natural persons or a plan sponsor of a
retirement account).
Any new investors
wishing to purchase shares of the fund may be required to demonstrate
eligibility. If the fund subsequently determines that a beneficial owner of fund
shares is not a natural person, then the fund, upon notice, will involuntarily
redeem all of the shares of such ineligible investor and send the net proceeds
to the investor.
How
to Exchange Shares
Requirements
and Limits
|
Class |
Exchanging
into Another Fund ($) |
|
DWS
Tax-Exempt
Money
Fund |
1,000
minimum into new non-IRA accounts per
fund
500
minimum into new IRA accounts per fund
50
minimum into all existing accounts per
fund |
Shares may be
exchanged with Class A shares of another DWS fund as described in such fund’s
applicable prospectus. Shares may also be exchanged with the following money
market fund shares as described in each such fund's respective prospectus: DWS
Government & Agency Securities Portfolio - DWS Government & Agency Money
Fund shares or DWS Money Market Prime Series - DWS Money Market Fund
shares.
Shareholders who
exchange their shares into Class A shares of certain other DWS funds will
generally be subject to the applicable sales charge (not including shares
acquired by dividend reinvestment or shares that have previously paid a sales
charge).
DWS Tax-Exempt Money
Fund shares acquired in an exchange from shares of another DWS fund that were
subject to a CDSC at the time of the exchange will continue to be subject to the
contingent deferred sales charge (CDSC) schedule of the shares of the fund you
originally purchased.
Through
a Financial Representative
In addition to what
is detailed below, your financial representative can assist you with exchanging
shares. Please contact your financial representative using the method that is
most convenient for you.
Prospectus August 1,
2023
15
Investing in the
Fund
On the
Internet
Register at dws.com to set up online
access to your account(s), or log in to the Web site if you have previously
registered. Follow the instructions on the Web site to request an exchange to
another DWS fund.
Using the
Mobile App
Download the mobile app and
register, or log in using the mobile app if you have previously registered.
Follow the instructions on the mobile app to request an exchange to another DWS
fund.
By
Telephone
Call DWS and use our
automated system to place your exchange or choose to be transferred to a
customer service representative to complete your request. For accounts with
$5,000 or more, you may also establish a Systematic Exchange Plan of a minimum
of $50 to another DWS fund on a regular basis. A representative can assist you
with establishing this privilege.
By
Mail or Expedited Mail
Write a letter that
includes the following information: the name(s) of all owners and address as
they appear on your account, the fund name, share class, and account number from
which you want to exchange, the dollar amount or number of shares you wish to
exchange, and the name of the fund into which you want to exchange. Also include
a daytime telephone number if we have any questions. All owners should sign the
letter and it should be mailed to the appropriate address for exchanges and
redemptions.
How
to Sell Shares
Requirements
and Limits
|
Class |
Selling
Shares ($) |
|
DWS
Tax-Exempt
Money
Fund |
Check
redemption:
Up to
100,000, more than 100,000 see
“Signature
Guarantee”
Automated
Clearing House (ACH) to your bank:
Minimum 50,
maximum 250,000
Wire
redemption to your bank: Minimum 1,000
Checkwriting:
Minimum 500,
maximum 5,000,000 |
Requirements and limits apply no
matter how you make your redemption request. Not all transactions can be
processed on the Internet or using the mobile app.
Through
a Financial Representative
In addition to what
is detailed below, your financial representative can assist you with selling
shares. Please contact your financial representative using the method that is
most convenient for you.
On the
Internet
Register at dws.com to set up online access to your
account(s), or log in to the Web site if you have previously registered. Follow
the instructions on the Web site to request a redemption from your account using
the desired method from your available options.
Using the
Mobile App
Download the mobile app and
register, or log in using the mobile app if you have previously registered.
Follow the instructions on the mobile app to request a redemption from your
account using the desired method from your available options.
By
Telephone
Call DWS and use our
automated system or choose to be transferred to a customer service
representative to complete your request. You may request a check for the
redemption amount sent to the address on the account. You may elect overnight
delivery of your check for a $20 fee ($25 for Saturday delivery), which will be
paid by redeeming a portion of your shares equal to the amount of the fee.
Overnight delivery is not available to a P.O. Box.
By
Mail or Expedited Mail
Write a letter that
includes the following information: the name(s) of all owners and address as
they appear on your account, the fund name, share class, and account number from
which you want to sell shares, the dollar amount or number of shares you wish to
sell, and a daytime telephone number if we have questions. All owners should
sign the letter and it should be mailed to the appropriate address. You may
elect overnight delivery of your check for a $20 fee ($25 for Saturday
delivery), which will be paid by redeeming a portion of your shares equal to the
amount of the fee. Overnight delivery is not available to a P.O.
Box.
Some redemptions can
only be ordered in writing with a Medallion Signature Guarantee. For more
information, please contact DWS (see telephone number on the back
cover).
Other
Ways to Sell Shares
The following
privileges must be established on your account before a redemption request is
made. This can either be done by completing the applicable section(s) on the new
account application when you establish your account or by contacting a customer
service representative for instructions. Depending on the method you choose to
request these redemptions, different transaction maximums may
apply.
By
Telephone. Call DWS and
use our automated system to request a redemption or choose to be transferred to
a customer service representative (see table for applicable minimum and maximum
amounts). The proceeds are sent via the Automated Clearing House system (ACH) to
your bank. Transactions generally take two to three days to be completed. For
accounts with $5,000 or more, you may
Prospectus August 1,
2023
16
Investing in the
Fund
also establish a
Systematic Withdrawal Plan of a minimum of $50 to be sent on a regular basis as
you direct. The $5,000 value does not apply to IRA accounts.
By
Wire.
You may sell shares by wire only if your account is authorized to do so. You
will be paid for redeemed shares by wire transfer of funds to your financial
representative or bank upon receipt of a duly authorized redemption request. For
your protection, you may not change the destination bank account over the
telephone.
By
Writing a Check. You may sell
shares of the fund by writing a check drawn from your account (see table for
applicable minimum and maximum amounts). Your investment will keep earning
dividends until your check clears. A $10 service charge will be assessed for
checks that are written for less than $500. You'll also be charged a $10 service
fee when you write a check that's larger than your available balance at the time
the check is presented to us, and we will not be able to honor the check. It is
not a good idea to close out your account using a check because your account
balance could change between the time you write the check and the time it is
processed. You should also keep in mind that if you make a purchase by check and
that check has not yet cleared your bank account, that purchase amount will not
be available for immediate redemption.
Financial
Intermediary Support Payments
The Advisor, the Distributor and/or
their affiliates may pay additional compensation, out of their own assets and
not as an additional charge to the fund, to selected affiliated and unaffiliated
brokers, dealers, participating insurance companies or other financial
intermediaries (“financial representatives”) in connection with the sale and/or
distribution of fund shares or the retention and/or servicing of fund investors
and fund shares (“revenue sharing”). Such revenue sharing payments are in
addition to any distribution or service fees payable under any Rule 12b-1 or
service plan of the fund, any recordkeeping/sub-transfer agency/networking fees
payable by the fund (generally through the Distributor or an affiliate) and/or
the Distributor or Advisor to certain financial representatives for performing
such services and any sales charges, commissions, non-cash compensation
arrangements expressly permitted under applicable rules of the Financial
Industry Regulatory Authority or other concessions described in the fee table or
elsewhere in this prospectus or the Statement of Additional Information as
payable to all financial representatives. For example, the Advisor, the
Distributor and/or their affiliates may, using their legitimate profits,
compensate financial representatives for providing the fund with “shelf space”
or access to a third party platform (including the costs associated with
establishing and maintaining the fund on such platform) or fund offering list or
other marketing programs, including, without limitation, inclusion of the fund
on preferred or recommended sales
lists, mutual fund
“supermarket” platforms and other formal sales programs; granting the
Distributor access to the financial representative’s sales force; granting the
Distributor access to the financial representative’s conferences and meetings;
assistance in training and educating the financial representative’s personnel;
and obtaining other forms of marketing support. In addition, revenue sharing
payments may consist of the Distributor’s and/or its affiliates’ payment or
reimbursement of ticket charges that would otherwise be assessed by a financial
representative on an investor’s fund transactions.
The level of revenue
sharing payments made to financial representatives may be a fixed fee or based
upon one or more of the following factors: gross sales, current assets and/or
number of accounts of the fund attributable to the financial representative, the
particular fund or fund type or other measures as agreed to by the Advisor, the
Distributor and/or their affiliates and the financial representatives or any
combination thereof. The amount of these payments is determined at the
discretion of the Advisor, the Distributor and/or their affiliates from time to
time, may be substantial, and may be different for different financial
representatives based on, for example, the nature of the services provided by
the financial representative.
The Advisor, the
Distributor and/or their affiliates currently make revenue sharing payments from
their own assets in connection with the sale and/or distribution of DWS fund
shares or the retention and/or servicing of investors to financial
representatives in amounts that generally range from 0.01% up to 0.52% of assets
of the fund serviced and maintained by the financial representative, 0.05% to
0.25% of sales of the fund attributable to the financial representative, a flat
fee of up to $95,000, or any combination thereof. These amounts are annual
figures typically paid on a quarterly basis and are subject to change at the
discretion of the Advisor, the Distributor and/or their affiliates. Receipt of,
or the prospect of receiving, this additional compensation may influence your
financial representative’s recommendation of the fund or of any particular share
class of the fund. You should review your financial representative’s
compensation disclosure and/or talk to your financial representative to obtain
more information on how this compensation may have influenced your financial
representative’s recommendation of the fund. Additional information regarding
these revenue sharing payments is included in the fund’s Statement of Additional
Information, which is available to you on request at no charge (see the back
cover of this prospectus for more information on how to request a copy of the
Statement of Additional Information).
The Advisor, the
Distributor and/or their affiliates may also make such revenue sharing payments
to financial representatives under the terms discussed above in connection with
the distribution of both DWS funds and non-DWS funds by financial
representatives to retirement plans that obtain recordkeeping services from ADP,
Inc. or to 403(b)
Prospectus August 1,
2023
17
Investing in the
Fund
plans that obtain
recordkeeping services from Ascensus, Inc. on the DWS-branded retirement plan
platform (the “Platform”). The level of revenue sharing payments is based upon
sales of both the DWS funds and the non-DWS funds by the financial
representative on the Platform or current assets of both the DWS funds and the
non-DWS funds serviced and maintained by the financial representative on the
Platform.
It is likely that
broker-dealers that execute portfolio transactions for the fund will include
firms that also sell shares of the DWS funds to their customers. However, the
Advisor will not consider sales of DWS fund shares as a factor in the selection
of broker-dealers to execute portfolio transactions for the DWS funds.
Accordingly, the Advisor has implemented policies and procedures reasonably
designed to prevent its traders from considering sales of DWS fund shares as a
factor in the selection of broker-dealers to execute portfolio transactions for
the fund. In addition, the Advisor, the Distributor and/or their affiliates will
not use fund brokerage to pay for their obligation to provide additional
compensation to financial representatives as described above.
Policies
You Should Know About
Along with the
information on the previous pages, the policies below may affect you as a
shareholder. Some of this information, such as the section on distributions and
taxes, applies to all investors, including those investing through a financial
representative.
If you are investing
through a financial representative or through a retirement plan, check the
materials you received from them about how to buy and sell shares because
particular financial representatives or other intermediaries may adopt policies,
procedures or limitations that are separate from those described in this
prospectus. Please note that a financial representative or other intermediary
may charge fees separate from those charged by the fund and may be compensated
by the fund.
Keep in mind that
the information in this prospectus applies only to the shares offered herein.
Other share classes are described in separate prospectuses and have different
fees, requirements and services.
Policies
About Transactions
In accordance with
requirements under anti-money laundering regulations, we may request additional
information and/or documents to verify your identity. This information includes,
but is not limited to, your name, address, date of birth and other identifying
documentation. If after reasonable effort we are unable to obtain this
information to verify your identity, in accordance with federal regulations,
within the time frames established by the fund, we will provide you with written
notification and we may reject your application and order.
All transactions are
processed at the share price next calculated after the order or instruction is
received in “good order.”
Because orders
placed through a financial representative must be forwarded to the transfer
agent, you’ll need to allow extra time for your order to be processed. Your
financial representative should be able to tell you approximately when your
order will be processed. It is the responsibility of your financial
representative to forward your order to the transfer agent in a timely
manner.
In the exercise of
its sole discretion, the fund at any time may, without prior notice, refuse,
cancel, limit or rescind any purchase; cancel or rescind any purchase order
placed through a financial intermediary no later than the business day after the
order is received by the financial intermediary; freeze account activity; and/or
involuntarily redeem and close an existing account. Specifically, the fund
reserves the right to involuntarily redeem an account (i) in case of actual or
suspected fraudulent, illegal or suspicious activity by the account owner or any
other individual associated with the account; or (ii) if the account owner fails
to provide legally required information, including information and/or
documentation related to identity verification, to the fund. The fund is not
required to provide justification to a potential or existing shareholder for
taking any such action. Please be advised that if the fund involuntarily redeems
and closes your account, under tax laws, you may be required to recognize a gain
or a loss or otherwise incur tax consequences.
With certain limited
exceptions, only US residents may invest in the fund.
Good
order.
We reserve the right to reject any order or instruction that is not in “good
order.” Good order generally means that the order or instruction:
◾
is complete and
accurate (e.g., includes the account number, fund name, and amount of the
transaction);
◾
is provided by a
person authorized to act for your account;
◾
is accompanied by
any required signatures, including signature guarantees or notarized signatures;
and
◾
is accompanied by
any required supporting documentation.
Good order
requirements are established by the fund or the transfer agent, depend on the
type of account or transaction, and may be changed or waived at any time.
Contact DWS if you have any questions.
Transaction
Processing. Orders for the
purchase of shares by wire transfer will normally be effective at the share
price next computed after receipt of the wire transfer of the amount to be
invested. If a wire transfer purchase order is received in good order before
3:00 p.m. Eastern time (or prior to the close of the fund, if the New York Stock
Exchange (the “Exchange”) closes early on such date), it will normally receive
the dividend for that day.
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Investments by check
will be effective on the business day following receipt and will earn dividends
the following business day.
Please contact your
financial representative for wire instructions and purchase orders.
Orders processed
through dealers or other financial services firms via Fund/SERV will be effected
at the share price calculated on the trade day (normally the date the order is
received). Purchases processed via Fund/SERV will begin earning dividends on the
day the fund receives the payment (typically the next business day). For
redemptions processed via Fund/SERV, you generally will receive dividends
accrued up to, but not including, the business day that payment for your shares
is made.
When selling shares,
shareholders generally receive dividends up to, but not including, the business
day following the day on which the shares were sold. To sell shares, you must
state whether you would like to receive the proceeds by wire or
check.
In order to receive
proceeds by wire, contact Shareholder Services before 3:00 p.m. Eastern time.
After you inform Shareholder Services of the amount of your redemption, you will
receive a trade confirmation number. If the fund receives a sell request before
3:00 p.m. Eastern time and the request calls for proceeds to be sent out by
wire, the proceeds will normally be wired on the same day. However, the shares
sold will not earn that day’s dividend.
As noted below,
proceeds of a redemption may be delayed. The ability to receive “same day” wire
redemption proceeds can be affected by a variety of circumstances including the
time that the request is made, the level of redemption requests and purchase
orders and general market conditions. A request for a same day wire redemption
that is received earlier in the day will be given priority over a request
received later in the day in the event that it is necessary to limit the amount
of same day wire redemptions.
Special
Limitations on Redemptions. The fund has
adopted policies and procedures such that the fund is able to impose liquidity
fees on redemptions and/or temporarily suspend redemptions for up to 10 business
days in any 90 day period in the event that the fund's weekly liquid assets were
to fall below designated thresholds, subject to a determination by the fund's
Board that such a liquidity fee or redemption gate is in the fund's best
interest. If the fund's weekly liquid assets fall below 30% of its total assets,
the fund may impose a liquidity fee of up to 2% of the value of the shares
redeemed and/or temporarily suspend redemptions, if the Board, including a
majority of board members, who are not “interested persons” (as defined in the
Investment Company Act of 1940, as amended (“Independent Board Members”)),
determines that imposing a liquidity fee or temporarily suspending redemptions
is in the fund's best interest.
If the fund's weekly liquid assets
fall below 10% of its total assets at the end of any business day, the fund will
impose a liquidity fee of 1% on all redemptions beginning on the next business
day, unless the Board, including a majority of the Independent Board Members,
determines that imposing such a fee would not be in the best interests of the
fund or determines that a lower or higher fee (not to exceed 2%) would be in the
best interests of the fund, which would remain in effect until weekly liquid
assets return to 30% or the Board determines that the fee is no longer in the
best interests of the fund. The fund’s Board may also determine it is not in the
fund’s best interest to continue operating. In the event the Board determines
that it is not in the fund’s best interest to continue operating, the fund’s
assets would be liquidated in an equitable manner. All liquidity fees payable by
shareholders of the fund would be payable to the fund and thereafter would be an
asset of the fund and may be used for various purposes, including to offset any
losses realized by the fund when seeking to honor redemption requests during
times of market stress. In the event that the Board determines to liquidate the
fund, payment of redemption proceeds may be delayed.
Weekly liquid assets
include (i) cash, (ii) direct obligations of the US government, (iii) government
securities that are issued by a person controlled or supervised by and acting as
an instrumentality of the US government pursuant to authority granted by
Congress that are issued at a discount to the principal amount to be repaid at
maturity without provision for the payment of interest and have a remaining
maturity date of 60 days or less, (iv) securities that will mature or are
subject to a demand feature that is exercisable and payable within five business
days, or (v) amounts receivable and due unconditionally within five business
days on pending sales of portfolio securities.
A liquidity fee or
redemption gate must automatically terminate at the beginning of the next
business day once the fund’s weekly liquid assets reach at least 30% of its
total assets. Additionally, redemption gates may only be put in place for up to
10 business days in any 90 day period. In addition, the Board may, in its
discretion, terminate a liquidity fee or redemption gate at any time if it
believes such action to be in the best interest of the fund.
After the fund
implements a liquidity fee, the liquidity fee would generally apply to all
redemptions at the first net asset value calculation on the next business day
following notification to financial intermediaries and shareholders. However,
the Board, in its discretion, may elect to impose a liquidity fee on an
intra-day basis. A liquidity fee will be charged on all redemption orders
submitted after the effective time of the imposition of the fee by the Board. A
liquidity fee would reduce the amount you receive upon redemption of your
shares.
In the event that a
fund imposes a redemption gate, the fund or any financial intermediary will not
accept a redemption request until the fund provides notice that the
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redemption gate has
been removed. A redemption gate would be implemented concurrently with the
notification to financial intermediaries and shareholders. Redemption requests
that are received when a redemption gate is imposed will be cancelled without
further notice. If you wish to redeem once the redemption gate has been lifted,
you will need to submit a new redemption request. The fund will communicate the
decision to impose a liquidity fee or redemption gate to shareholders via the
fund’s Web site (dws.com) and through a
supplement to the funds’ prospectus.
When a liquidity fee
or redemption gate is in place, the fund may elect to continue to permit the
purchase of fund shares.
Sub-Minimum
Balances. The fund may close
your account if your balance falls below $1,000 ($500 for accounts with an
Automatic Investment Plan funded with $50 or more per month in subsequent
investments), or below $500 for retirement accounts. We will give you 60 days’
notice (90 days for retirement accounts) so you can either increase your balance
or close your account (these policies don’t apply to investors with $100,000 or
more in DWS fund shares, investors in certain fee-based and wrap programs
offered through certain financial intermediaries approved by the Advisor, or
group retirement plans and certain other accounts having lower minimum share
balance requirements).
Account
Maintenance Fee. The fund charges a
$20 account maintenance fee for each fund account that has a balance below
$10,000. Except as otherwise noted below, fund accounts are not aggregated by
share class or fund. The assessment will occur once per calendar year and may be
assessed through the automatic redemption of fund shares in your account. The
fee will be assessed on each fund account that falls below the minimum for any
reason, including market value fluctuations, redemptions or
exchanges.
The account
maintenance fee will also not apply to: (i) accounts with an automatic
investment plan; (ii) accounts held in an omnibus account through a financial
services firm; (iii) accounts maintained on behalf of participants in certain
fee based and wrap programs offered through certain financial intermediaries
approved by the Advisor; (iv) participant level accounts in group retirement
plans held on the records of a retirement plan record keeper; (v) accounts held
by shareholders who maintain $50,000 or more in aggregate assets in DWS fund
shares; (vi) shareholders who consent to electronic delivery for all documents
(which include statements, prospectuses, annual and semi-annual reports, and
other materials), except for tax forms; (vii) Uniform Gift to Minors (UGMA) and
Uniform Transfer to Minors (UTMA) accounts; (viii) Coverdell Education Savings
Account (ESA) accounts; and (ix) IRA accounts for shareholders beginning in the
year in which they turn age 70 1/2. You may elect to receive
electronic delivery of DWS fund
materials by registering on dws.com, by using the mobile app or by
calling the telephone number on the back cover.
Overnight
delivery of DWS fund materials. You may request to
receive a paper copy of any DWS fund materials via overnight delivery by calling
the telephone number on the back cover. If you request an overnight delivery you
will be charged a $20 fee ($25 for Saturday delivery) for each request, which
will be paid by redeeming a portion of your shares equal to the amount of the
fee. Overnight delivery is not available to a P.O. Box.
The
automated information line is available 24
hours a day by calling DWS at the telephone number on the back cover. You can
use our automated telephone service to get information on DWS funds generally
and on accounts held directly at DWS. You can also use this service to request
share transactions.
24 hour access
via Internet and mobile. By registering your fund accounts
online at dws.com or by downloading and registering on the mobile app, you
can:
◾
access account information 24 hours
a day, 7 days a week,
◾
view your account
balances,
◾
buy, exchange and sell fund
shares,
◾
access transaction history,
statements and tax forms,
◾
update personal information,
and
◾
make certain account elections
including delivery preferences.
Purchase and redemption orders may
be placed at any time, but will only be processed during normal business hours
on business days, as detailed in this prospectus. Not all transactions are
eligible for processing online or through the mobile app. The ability to open
new accounts online or through the mobile app is available only to accounts that
are established directly with the fund’s transfer agent, and is limited to
certain account types and share classes. Processing certain transactions or
opening certain types of accounts may require you to obtain, complete and mail
the appropriate form.
When registering online at dws.com
or through the mobile app, you will be asked to accept certain terms and
conditions, create a user profile and establish a password. The same user
profile and password will provide both online and mobile app access. Accessing
your fund account and transacting online or through the mobile app requires the
transmission of personal financial information over the Internet and/or a mobile
data network, and is not without risk. Digital communication channels such as
those described above are not necessarily secure and are subject to the risk,
among others, that any confidential or sensitive information that you send or
view may be intercepted or accessed by a third party and subsequently sold or
used, including for instance, to gain access to your fund account and redeem
shares. We recommend that you take steps to protect your account information,
including the use of a secure Internet browser, keeping user IDs and
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passwords confidential, and taking
steps to restrict access to your computer and mobile devices. As long as we
follow reasonable security procedures and act on instructions that we reasonably
believe are genuine, we will not be responsible for any losses that may occur
from unauthorized requests. The fund may modify, suspend, or terminate online or
mobile account access or services at any time.
During periods of extreme volume
that may result from dramatic economic or stock market events, it is possible
that you may have difficulty accessing your account online or using the mobile
app. Your online account and/or the mobile app may be unavailable during certain
periods due to unforeseen technology issues or for other reasons such as routine
maintenance or updates. If you are unable to access your account online or using
the mobile app you can reach DWS by mail or by telephone (see contact
information on the back cover).
Telephone
transactions.
Generally, you are automatically entitled to telephone redemption and exchange
privileges, but you may elect not to have them when you open your account (paper
applications only) or by calling the appropriate telephone number on the back
cover.
Transactions by telephone are not
without risk. We recommend that you take steps to protect your account
information. As long as we follow reasonable security procedures and act on
instructions received over the telephone that we reasonably believe are genuine,
we will not be responsible for any losses that may occur from unauthorized
requests.
During periods of extreme volume
that may result from dramatic economic or stock market events or due to
unforeseen technology issues, it is possible that you may have difficulty
reaching DWS by phone. If you are unable to reach us by phone you may be able to
view account information or request transactions online or using the mobile app,
or you can mail inquiries to the address on the back cover.
Responsibility
for fraud. The fund and its
service providers, including DWS, shall not be liable for any loss incurred by
reason of the fund accepting unauthorized transaction requests for your account
if the fund reasonably believes the instructions to be genuine. In order to
safeguard your account, you should keep all account information private and
review all confirmation statements and other account-related communications as
soon as you receive them. We will consider all transactions to be properly
processed if discrepancies are not reported promptly. Contact us immediately if
you suspect that someone has gained unauthorized access to your account. The DWS
Account Security Program provides further information on how you can protect
your account. Visit the Investor Resource Center at dws.com for more
information.
Checkwriting enables you to sell
shares of the fund by writing a check. Your investment keeps earning dividends
until your check clears. Please note that we will not accept checks for less
than $500. Please note that you should not write checks for more than
$5,000,000. Note as well that we can’t honor any check larger than your balance
at the time the check is presented to us. A $10 service charge will be assessed
for checks that are written for less than $500. You'll also be charged a $10
service fee when you write a check that's larger than your available balance at
the time the check is presented to us, and we will not be able to honor the
check. It is not a good idea to close out an account using a check because the
account balance could change between the time you write the check and the time
it is processed. Please keep in mind that if you make a purchase by check and
that check has not yet cleared, those funds will not be available for immediate
redemption.
The
fund accepts Automated Clearing House (“ACH”) debit entries for
accounts that have elected the checkwriting redemption privilege. Upon receipt
of an ACH debit entry referencing your account number you authorize us to redeem
shares in your account to pay the entry to the third party originating the
debit. Your fund account statement will show all ACH debit entries in your
account. In
case of errors or questions about your transactions or pre-authorized transfers
please
contact your financial representative as soon as possible if you believe your
statement reflects an improper charge or if you need more information about an
ACH debit entry transaction. Your financial representative must contact the
Shareholder Service Agent within 60 days of the fund sending you the first fund
account statement on which an improper charge appears.
The
fund does not issue share certificates.
When
you ask us to send or receive a wire, please note that
while we don’t charge a fee to send or receive wires, it’s possible that your
bank may do so. Wire transactions are generally completed within 24 hours. The
fund can only send wires of $1,000 or more and accept wires of $50 or
more.
The fund accepts
payment for shares only in US dollars by a check drawn on a US bank, a
bank or Federal Funds wire transfer or an electronic bank transfer. The fund
does not accept third party checks. A third party check is a check made payable
to one or more parties and offered as payment to one or more other parties
(e.g., a check made payable to you that you offer as payment to someone else).
Checks should be payable to “DWS Funds” and drawn by you or a financial
institution on your behalf with your name or account number included with the
check. If you pay for shares by check and the check fails to clear, we have the
right to cancel your order, hold you liable or charge you or your account for
any losses or fees the fund or its agents have incurred.
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Signature
Guarantee. When you
want to sell more than $100,000 worth of shares or send proceeds to a third
party or to a new address, you’ll usually need to place your order in writing
and have your signature guaranteed. However, if you want money transferred
electronically to a bank account that is already on file with us, you don’t need
a signature guarantee (but other limits may apply). Also, generally you don’t
need a signature guarantee for an exchange, although we may require one in
certain other circumstances.
A signature guarantee is a
certification of your signature — a valuable safeguard against fraud. The fund
accepts Medallion Signature Guarantees, which can be obtained from an eligible
guarantor. Eligible guarantor institutions include commercial banks, savings and
loans, trust companies, credit unions, member firms of a national stock exchange
or any member or participant of an approved signature guarantor program. A
signature guarantee cannot be provided by a notary public.
Selling
shares of trust accounts and business or organization accounts may require
additional documentation. Please call DWS (see telephone number on the back
cover) or contact your financial representative for more
information.
Money
from shares you sell is normally sent
out within one business day of when your order is processed (not when it is
received). In addition, as described above under “Transaction Processing,”
requests for redemptions by wire received before the daily cut-off time will
normally result in proceeds being sent out by wire on the same day. Redemptions
could be delayed for up to seven days. There are circumstances when it could be
longer, including, but not limited to, when you are selling shares you bought
recently by check or ACH (the funds will be placed under a 10 calendar day hold
to ensure good funds) or when unusual circumstances prompt the SEC to allow
further delays. Certain expedited redemption processes (e.g., redemption
proceeds by wire) may also be delayed or unavailable when you are selling shares
recently purchased or in the event of a non-routine closure of the Federal
Reserve wire payment system.
Redemptions will
generally be in the form of cash, though the fund reserves the right to redeem
in kind (as described under “Other Rights We Reserve”). The fund typically
expects to satisfy redemption requests by using available cash or by selling
portfolio securities if available cash is not sufficient to meet redemptions.
The fund may also utilize inter-fund lending, though such use is expected to be
rare. The fund may use any of these methods of satisfying redemption requests
under normal or stressed market conditions.
The fund reserves
the right to suspend or postpone redemptions as permitted pursuant to Section
22(e) of the 1940 Act. Generally, those circumstances are when 1) the Exchange
is closed other than customary weekend or holiday closings; 2) the SEC
determines that trading on the
Exchange is
restricted; 3) the SEC determines that an emergency exists which makes the
disposal of securities owned by the fund or the fair determination of the value
of the fund’s net assets not reasonably practicable; or 4) the SEC, by
order or rule, permits the
suspension of the right of redemption. Redemption payments by wire may also be
delayed in the event of a non-routine closure of the Federal Reserve wire
payment system. Additionally, the
fund may impose a fee upon the sale of your shares or may temporarily suspend
your ability to sell shares (a redemption “gate”) if the fund’s liquidity falls
below required minimums. See “Special Limitations on Redemptions,” above. For
additional rights reserved by the fund, please see “Other Rights We
Reserve.”
Short-Term
Trading. Since money market
funds hold short-term instruments and are intended to provide liquidity to
shareholders, the Advisor does not monitor or limit short-term or excessive
trading activity in the fund and, accordingly, the Board of the fund has not
approved any policies and procedures designed to limit this activity. However,
the fund reserves the right to and may reject or cancel a purchase or exchange
order into the fund for any reason, including if, in the opinion of the Advisor,
there appears to be a pattern of short-term or excessive trading by an investor
in another DWS fund.
How
the Fund Calculates Share Price
To calculate net
asset value, or NAV, the fund uses the following equation:
|
( |
Total
Assets |
− |
Total
Liabilities |
) |
÷ |
Total
Number of
Shares
Outstanding |
= |
NAV |
The price at which
you buy and sell shares is based on the NAV per share next calculated after the
order is received and accepted by the transfer agent.
In
valuing securities, we typically use
amortized cost to account for any premiums or discounts above or below the face
value of any securities the fund buys, and round the per share NAV to the
nearest whole cent.
The
fund is open for business each day the
Exchange is open. Normally, the fund calculates its share price once every
business day as of the close of
regular trading on the Exchange (typically 4:00 p.m. Eastern time, but sometimes
earlier, as in the case of scheduled half-day trading, shortened trading hours
due to emergency circumstances or unscheduled suspensions of trading). In the
event of scheduled partial day trading, shortened trading hours due to emergency
circumstances or unscheduled suspensions of trading on the Exchange, the
calculation of share price shall be as of the close of trading on the Exchange.
In such instances, the latest time for receipt of wire purchase transactions
entitled to receive same day dividend treatment and for receipt of redemption
orders for same day wire transfer of proceeds will be the earlier of: (a) 3:00
p.m. Eastern time or (b) the early closing time of the
Exchange.
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The fund may, but is not required
to, accept certain types of purchase, exchange and redemption orders on
days that the Exchange is closed, or beyond an Exchange early closing time
(referred to as a ”Limited Trading Period”) if: (a) the Federal Reserve system
is open, (b) the primary trading markets for the fund’s portfolio instruments
are open and (c) the Advisor believes there will be adequate liquidity in the
short-term markets. The calculation of share price will be as set forth in the
prospectus for normal trading days. Orders must be submitted by the cut-off
times for receipt of wire purchases entitled to that day’s dividend and for
receipt of telephone redemption orders for same day wire transfer, which will be
the earlier of: (a) the times set forth in the prospectus for normal trading
days or (b) such earlier times that the fund determines based on the criteria
described above. Please call (877) 237-1131 or visit our Web site at dws.com
(the Web site does not form part of this prospectus) for additional information
about whether the fund will be open for business on a particular day.
Information concerning the intention of the fund to be open for a Limited
Trading Period will be available at least one business day prior to the
applicable day that the Exchange is closed or is closing early in the case of
scheduled closings and as soon as practical in the case of unscheduled
closings.
Other
Rights We Reserve
You should be aware
that we may do any of the following:
◾
withdraw or suspend
the offering of shares at any time
◾
withhold a portion
of your distributions and redemption proceeds if we have been notified by the
Internal Revenue Service that you are subject to backup withholding, if you fail
to provide us with the correct taxpayer ID number and certain certifications,
including certification that you are not subject to backup withholding, or if
you are otherwise subject to withholding
◾
reject a new account
application if you don’t provide any required or requested identifying
information, or for any other reason
◾
refuse, cancel,
limit or rescind any purchase or exchange order, without prior notice; freeze
any account (meaning you will not be able to purchase fund shares in your
account); suspend account services; and/or involuntarily redeem your account if
we think that the account is being used for fraudulent or illegal purposes; one
or more of these actions will be taken when, at our sole discretion, they are
deemed to be in the fund’s best interests or when the fund is requested or
compelled to do so by governmental authority or by applicable law
◾
close and liquidate
your account if we are unable to verify your identity, or for other reasons; if
we decide to close your account, your fund shares will be redeemed at the net
asset value per share next calculated after we determine to close your account;
you may recognize a gain or loss on the redemption of your fund shares and you
may incur a tax liability
◾
pay you for shares
you sell by “redeeming in kind,” that is, by giving you securities (which
typically will involve brokerage costs for you to liquidate) rather than cash,
but which will be taxable to the same extent as a redemption for cash; the fund
generally won’t make a redemption in kind unless your requests over a 90-day
period total more than $250,000 or 1% of the value of the fund’s net assets,
whichever is less
◾
change, add or
withdraw various services, fees and account policies (for example, we may adjust
the fund’s investment minimums at any time). All orders to purchase shares of
the fund are subject to acceptance and are not binding until confirmed or
accepted in writing
Understanding
Distributions and Taxes
The fund intends to
distribute to its shareholders virtually all of its net earnings. The fund can
earn money in two ways: by receiving interest, dividends or other income from
securities it holds and by selling securities for more than it paid for them.
(The fund’s earnings are separate from any gains or losses stemming from your
own purchase and sale of shares.) The fund may not always pay a dividend or
distribution for a given period.
The
fund's income dividends are declared daily and paid monthly to
shareholders. The fund may take
into account capital gains and losses (other than net long-term capital gains)
in its daily dividend declarations. The fund may make additional distributions
for tax purposes, if necessary.
Dividends declared
and payable to shareholders of record in the last quarter of a given calendar
year are treated for federal income tax purposes as if they were received by
shareholders and paid by the fund on December 31 of that year, if such dividends
are actually paid in January of the following year.
You
can choose how to receive your dividends and distributions. You may have them
all automatically reinvested in fund shares (at NAV), all deposited directly to
your bank account or all sent to you by check, by wire, have one type reinvested
and the other sent to you by check or have them invested in a different fund.
Tell us your preference on your application. If you don’t indicate a preference,
your dividends and distributions will all be reinvested. You will receive any
unpaid dividends upon redeeming your entire account, unless you elect to receive
unpaid dividends on the next monthly dividend payment date.
Dividends and
distributions are treated the same for federal income tax purposes whether you
receive them in cash or reinvest them in additional shares.
Because the fund
seeks to maintain a stable share price, you are unlikely to have capital gains
or losses when you sell fund shares.
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However, there can
be no assurance that the fund will be able to maintain a stable share price. If
the fund is not able to maintain a stable share price or your basis in your fund
shares differs from the amount received for the shares when the shares are sold,
the sale may result in a taxable gain or loss for federal income tax purposes.
Unless you elect the simplified NAV method of accounting (discussed below), you
will generally recognize gain or loss equal to the difference between the amount
realized on the sale and your basis in your shares that were sold. In general,
any gain or loss realized upon a taxable disposition of shares will be treated
for federal income tax purposes as long-term capital gain or loss if the shares
have been held for more than twelve months. Otherwise, the gain or loss on the
taxable disposition of shares of the fund will generally be treated for federal
income tax purposes as short-term capital gain or loss. Capital losses may be
subject to limitations on their use by a shareholder. For federal income tax
purposes, an exchange is treated the same as a sale.
If you elect to
adopt the simplified NAV method of accounting, rather than computing gain or
loss on every taxable disposition of fund shares as described above, you would
recognize gain or loss based on the aggregate value of your fund shares during
the computation period. Your gain or loss would generally equal (i) the
aggregate fair market value of your shares in the fund at the end of the
computation period, (ii) minus the aggregate fair market value of your shares at
the end of the prior computation period, (iii) minus your “net investment” in
the fund for the computation period. Your net investment is the aggregate cost
of fund shares purchased during the computation period (including reinvested
dividends) minus the aggregate amount received in taxable redemptions of fund
shares during the same period. The computation period may be your taxable year
or a shorter period, as long as all computation periods contain days from only
one taxable year and every day during the taxable year falls within one and only
one computation period. Any capital gain or loss realized under the NAV method
will be a short-term capital gain or loss. Please consult your own tax advisor
to determine if the NAV method is appropriate for your individual
circumstances.
Effect
of Liquidity Fees. A liquidity fee
imposed by the fund will reduce the amount you will receive upon the redemption
of your shares and will decrease the amount of any capital gain or increase the
amount of any capital loss you will recognize from such redemption. There is
some degree of uncertainty with respect to the tax treatment of liquidity fees
received by money market funds. Such tax treatment may be the subject of future
guidance issued by the Internal Revenue Service. If the fund receives liquidity
fees, it will consider the appropriate tax treatment of such fees to the fund at
that time.
For federal income
tax purposes, distributions of net investment income (other than
“exempt-interest dividends”) are taxable as ordinary income. The fund does not
expect to make distributions that are eligible for taxation as long-term capital
gains or as qualified dividend income.
For most
shareholders, dividends from the fund are generally exempt from federal income
tax. However, there are a few exceptions:
◾
A portion of the
fund’s dividends may be taxable if it came from investments in taxable
securities, tax-exempt market discount bonds, or as the result of short or
long-term capital gains.
◾
Because the fund can
invest up to 20% of its net assets in securities whose income is subject to the
AMT, you may owe taxes on a portion of your dividends if you are among those
investors who must pay AMT. In addition, if you receive social security or
railroad retirement benefits, you should consult your tax advisor to determine
what effect, if any, an investment in the fund may have on the federal taxation
of your benefits.
Your
fund will send you detailed federal income tax information early each
year.
These statements tell you the amount and the federal income tax classification
of any dividends or distributions you received.
A 3.8% Medicare
contribution tax is imposed on the “net investment income” of individuals,
estates and trusts to the extent their income exceeds certain threshold amounts.
For this purpose, net investment income generally includes dividends that are
taxable for federal income tax purposes and net gains recognized on the sale,
redemption or exchange of fund shares.
If the fund's
distributions exceed its current and accumulated earnings and profits, the
excess will be treated for federal income tax purposes as a return of capital to
the extent of your basis in your shares and thereafter as a capital gain. A
return of capital distribution reduces the basis of your shares. As a result,
even though the fund seeks to maintain a stable share price, you may recognize a
capital gain when you sell your shares if you have received a return of capital
distribution.
Because each
shareholder’s tax situation is unique, ask your tax professional about the tax
consequences of your investment, including any state and local tax
consequences.
The above discussion
summarizes certain federal income tax consequences for shareholders who are US
persons. If you are a non-US person, please consult your own tax advisor with
respect to the US and foreign tax consequences to you of an investment in the
fund. For more information, see “Taxes” in the Statement of Additional
Information.
Prospectus August 1,
2023
24
Investing in the
Fund
Financial
Highlights
The financial
highlights are designed to help you understand recent financial performance. The
figures in the first part of the tables are for a single share. The total return
figures represent the percentage that an investor in the fund would have earned
(or lost), assuming all dividends and distributions were reinvested. This
information has
been audited by
Ernst & Young LLP, an independent registered public accounting firm, whose
report, along with the fund’s financial statements, is included in the fund’s
annual report (see “Shareholder reports” on the back cover).
|
DWS
Tax-Exempt Portfolio — DWS Tax-Exempt Money Fund | |||||
|
|
Years Ended
April 30, | ||||
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
|
Selected
Per Share Data |
|
|
|
|
|
|
Net
asset value, beginning of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Income
(loss) from investment operations: |
|
|
|
|
|
|
Net
investment income |
.018 |
.000
* |
.000
* |
.012 |
.013 |
|
Net realized
gain (loss) |
.000
* |
.000
* |
(.000
)* |
.000
* |
.000
* |
|
Total
from investment operations |
.018 |
.000
* |
.000
* |
.012 |
.013 |
|
Less
distributions from: |
|
|
|
|
|
|
Net
investment income |
(.019
) |
(.000
)* |
(.000
)* |
(.012
) |
(.013
) |
|
Net
asset value, end of period |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
$1.00 |
|
Total Return
(%)a |
1.91 |
.04 |
.03 |
1.25 |
1.34 |
|
Ratios
to Average Net Assets and Supplemental Data | |||||
|
Net assets,
end of period ($ millions) |
81 |
93 |
109 |
117 |
124 |
|
Ratio of
expenses before expense
reductions (%) |
.41 |
.37 |
.35 |
.35 |
.38 |
|
Ratio of
expenses after expense
reductions (%) |
.22 |
.10 |
.17 |
.22 |
.22 |
|
Ratio of net
investment income (%) |
1.79 |
.04 |
.03 |
1.24 |
1.33 |
|
a |
Total
return would have been lower had certain expenses not been
reduced. |
|
* |
Amount
is less than $.0005. |
| Prospectus August 1, 2023 | 25 | Financial Highlights |
Appendix
Hypothetical
Expense Summary
Using the annual
fund operating expense ratios presented in the fee tables in the fund’s
prospectus, the Hypothetical Expense Summary shows the estimated fees and
expenses, in actual dollars, that would be charged on a hypothetical investment
of $10,000 in the fund held for the next 10 years and the impact of such fees
and expenses on fund returns for each year and cumulatively, assuming a 5%
return for each year. The historical rate of return for the fund may be higher
or lower than 5% and, for money market funds, is typically less than 5%. The
tables also assume that all dividends and distributions are reinvested. The
annual fund expense ratios shown are net of any contractual fee waivers or
expense reimbursements, if
any, for the period
of the contractual commitment. Also, please note that if you are investing
through a third party provider, that provider may have fees and expenses
separate from those of the fund that are not reflected here. Mutual fund fees
and expenses fluctuate over time and actual expenses may be higher or lower than
those shown.
The Hypothetical
Expense Summary should not be used or construed as an offer to sell, a
solicitation of an offer to buy or a recommendation or endorsement of any
specific mutual fund. You should carefully review the fund’s prospectus to
consider the investment objective, risks, expenses and charges of the fund prior
to investing.
DWS
Tax-Exempt Portfolio — DWS Tax-Exempt Money Fund
|
|
Maximum
Sales
Charge:
0.00% |
Initial
Hypothetical
Investment:
$10,000 |
Assumed
Rate
of
Return:
5% | ||
|
Year |
Cumulative
Return
Before
Fees
&
Expenses |
Annual
Fund
Expense
Ratios |
Cumulative
Return
After
Fees
&
Expenses |
Hypothetical
Year-End
Balance
After
Fees
&
Expenses |
Annual
Fees
&
Expenses |
|
1 |
5.00% |
0.40% |
4.60% |
$10,460.00 |
$40.92 |
|
2 |
10.25% |
0.41% |
9.40% |
$10,940.11 |
$43.87 |
|
3 |
15.76% |
0.41% |
14.42% |
$11,442.27 |
$45.88 |
|
4 |
21.55% |
0.41% |
19.67% |
$11,967.47 |
$47.99 |
|
5 |
27.63% |
0.41% |
25.17% |
$12,516.77 |
$50.19 |
|
6 |
34.01% |
0.41% |
30.91% |
$13,091.29 |
$52.50 |
|
7 |
40.71% |
0.41% |
36.92% |
$13,692.18 |
$54.91 |
|
8 |
47.75% |
0.41% |
43.21% |
$14,320.65 |
$57.43 |
|
9 |
55.13% |
0.41% |
49.78% |
$14,977.97 |
$60.06 |
|
10 |
62.89% |
0.41% |
56.65% |
$15,665.46 |
$62.82 |
|
Total |
$516.57 | ||||
| Prospectus August 1, 2023 | 26 | Appendix |
To
Get More Information
Shareholder
reports. Additional
information about the fund’s investments is available in the fund’s annual and
semi-annual reports to shareholders. In the annual report, you will find a
discussion of the market conditions and investment strategies that significantly
affected fund performance during its last fiscal year.
Statement
of Additional Information (SAI). This tells you more
about the fund’s features and policies, including additional risk information.
The SAI is incorporated by reference into this document (meaning that it’s
legally part of this prospectus).
For a free copy of
any of these documents or to request other information about the fund, contact
DWS at the telephone number or address listed below. SAIs and shareholder
reports are also available through the DWS Web site at dws.com. These documents and
other information about the fund are available from the EDGAR Database on the
SEC’s Internet site at sec.gov. If you like, you may obtain copies of this
information, after paying a duplicating fee, by e-mailing a request to
[email protected].
In order to reduce
the amount of mail you receive and to help reduce expenses, we generally send a
single copy of any shareholder report and prospectus to each household. If you
do not want the mailing of these documents to be combined with those for other
members of your household, please contact your financial representative or call
the telephone number provided.
Contact
Information
|
DWS |
PO
Box 219151
Kansas
City, MO
64121-9151
dws.com |
|
|
(800)
728-3337 |
|
Distributor |
DWS
Distributors, Inc.
222
South Riverside Plaza
Chicago,
IL 60606-5808
(800)
621-1148 |
|
SEC
File Number |
Cash
Account Trust
DWS
Tax-Exempt Portfolio
811-05970
|
(08/01/23)
DTEMF-1