Wholesaler Compensation

DWS Distributors, Inc., has adopted an Incentive Plan (Plan) covering wholesalers that market shares of the DWS funds to financial representatives (DWS Wholesalers). These financial representatives in turn may recommend that investors purchase shares of a DWS fund. The Plan is an incentive program that combines monthly and quarterly incentive components - based on achieving certain sales and other performance metrics. Under the Plan, DWS Wholesalers will receive a monetary monthly incentive based on the amount of sales generated from their marketing of the funds, and that incentive will differ depending on the product tier of a fund. Each fund is assigned to one of four product tiers - taking into consideration, among other things, the following criteria, where applicable:

  • a fund’s consistency with DWS's branding and long-term strategy;
  • a fund’s competitive performance;
  • a fund’s Morningstar rating;
  • the length of time a fund’s Portfolio Managers have managed the fund/strategy;
  • market size for the fund tier;
  • a fund’s size, including sales and redemptions of the fund’s shares.

This information and other factors are discussed with senior representatives from various groups within the asset management division, who review on a regular basis the funds assigned to each product tier described above, and may make changes to those assignments periodically. No one factor, whether positive or negative, determines a fund’s placement in a given product tier; all these factors together are considered, and the designation of funds in a particular tier represents management’s judgment based on the above criteria. In addition, management may consider a fund’s profile over the course of several review periods before making a change to its tier assignment. DWS Wholesalers receive the highest compensation for Tier 1 funds, successively less for Tier 2 funds, successively less for Tier 3 funds and successively less for Tier 4 funds. The level of compensation among these product tiers may differ significantly.

In the normal course of business, DWS will from time to time introduce new funds into the DWS family of funds. As a general rule, new funds will be assigned to the product tier that is most appropriate to the type of fund at the time of its launch based on the criteria described above. As described above, the fund tier assignments are reviewed periodically and are subject to change.

The prospect of receiving, or the receipt of, additional compensation by a DWS Wholesalers under the Plan may provide an incentive to favor marketing funds in higher payout tiers over funds in lower payout tiers. The Plan, however, will not change the price that investors pay for shares of a fund. The DWS Compliance Department monitors DWS Wholesaler sales and other activity in an effort to detect unusual activity in the context of the compensation structure under the Plan. However, investors may wish to take the compensation structure into account when considering purchasing a fund or evaluating any recommendations relating to fund shares.

Product tiering structure

Mutual Funds Tier
DWS Core Equity Fund 1
DWS Enhanced Commodity Strategy Fund 1
DWS ESG Core Equity Fund 1
DWS Global Macro Fund 1
DWS High Income Fund 1
DWS Intermediate Tax-Free Fund 1
DWS RREEF Global Infrastructure Fund 1
DWS Small Cap Core Fund 1
DWS California Tax-Free Income Fund 1
DWS Managed Municipal Bond Fund 1
DWS Massachusetts Tax-Free Fund 1
DWS New York Tax-Free Income Fund 1
DWS RREEF Real Estate Securities Fund 1
DWS RREEF Real Assets Fund 1
DWS Short Duration Fund 1
DWS Capital Growth Fund 2
DWS CROCI Equity Dividend Fund 2
DWS Emerging Markets Equity Fund 2
DWS Equity Sector Strategy Fund 2
DWS ESG Global Bond Fund 2
DWS ESG International Core Equity Fund 2
DWS Global High-Income Fund 2
DWS Global Income Builder Fund 2
DWS Health and Wellness Fund 2
DWS International Growth Fund 2
DWS Large Cap Focus Growth Fund 2
DWS Latin America Equity Fund 2
DWS RREEF Global Real Estate Securities Fund 2
DWS Science and Technology Fund 2
DWS Short-Term Municipal Bond Fund 2
DWS Strategic High Yield Tax-Free Fund 2
DWS Total Return Bond Fund 2
DWS Communications Fund 3
DWS CROCI International Fund 3
DWS Emerging Markets Fixed Income Fund 3
DWS Floating Rate Fund 3
DWS Global Small Cap Fund 3
DWS Multi-Asset Conservative Allocation Fund 3
DWS Multi-Asset Moderate Allocation Fund 3
DWS Small Cap Growth Fund 3

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