UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549  FORM N-CSRS  Investment Company Act file number
        811-2719
  DWS Strategic Government Securities Fund (Exact Name of Registrant as Specified in Charter)  345 Park Avenue New York, NY 10154-0004 (Address of Principal Executive Offices) (Zip Code)  Registrants Telephone Number, including Area Code:(212) 454-7190  Paul Schubert 345 Park Avenue New York, NY 10154-0004 (Name and Address of Agent for Service)  Date of fiscal year end:
        10/31
  Date of reporting period:
        04/30/09
   ITEM 1.REPORT TO STOCKHOLDERS


|APRIL 30, 2009
Semiannual Report
to Shareholders
|------------------------------------------------
|                                                
|DWS Strategic Government
Securities Fund        
|sgs_cove350                                     

Contents

|4Performance Summary
9Information About Your Fund's Expenses
11Portfolio Management Review
16Portfolio Summary
17Investment Portfolio
25Financial Statements
29Financial Highlights
34Notes to Financial Statements
45Summary of Management Fee Evaluation by Independent
Fee Consultant
50Summary of Administrative Fee Evaluation by Independent
Fee Consultant
51Account Management Resources
52Privacy Statement
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This report must be preceded or accompanied by a prospectus. To obtain a
prospectus for any of our funds, refer to the Account Management Resources
information provided in the back of this booklet. We advise you to consider the
fund's objectives, risks, charges and expenses carefully before investing. The
prospectus contains this and other important information about the fund. Please
read the prospectus carefully before you invest.

Investments in mutual funds involve risk. Some funds have more risk than others. In the
current market environment, mortgage-backed securities are experiencing increased
volatility. The guarantee on US government guaranteed securities relates only to the
prompt payment of principal and interest and does not remove market risks. Bond
investments are subject to interest rate risk such that when interest rates rise, the prices
of the bonds, and thus the value of the bond fund, can decline and the investor can lose
principal value. The fund invests in derivatives seeking to hedge positions in certain
securities and to generate income in order to enhance the fund's returns. Derivatives can
be more volatile and less liquid than traditional fixed-income securities. Please read this
fund's prospectus for specific details regarding its investments and risk profile.

DWS Investments is part of Deutsche Bank's Asset Management division and, within the US,
represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust
Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust
Company.

NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Performance SummaryApril 30, 2009

Classes A, B, C and Institutional Class

All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment return
and principal value fluctuate with changing market conditions so that, when
redeemed, shares may be worth more or less than their original cost. Current
performance may be lower or higher than the performance quoted. Please visit
www.dws-investments.com for the Fund's most recent month-end performance.

Until May 31, 2009 the maximum sales charge for Class A shares is 4.50%. Effective
June 1, 2009 the maximum sales charge for Class A shares was lowered to 2.75%.
For Class B shares, the maximum contingent deferred sales charge (CDSC) is 4%
within the first year after purchase, declining to 0% after six years. Class C shares
have no front-end sales charge but redemptions within one year of purchase may
be subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and
would have been lower if they had. Institutional Class shares are not subject to
sales charges.

The total annual fund operating expense ratios, gross of any fee waivers or expense
reimbursements, as stated in the fee table of the prospectus dated February 1, 2009
are 0.80%, 1.73%, 1.60% and 0.62% for Class A, Class B, Class C and Institutional
Class shares, respectively. Please see the Information About Your Fund's Expenses,
the Financial Highlights and Notes to the Financial Statements (Note C, Related
Parties) sections of this report for gross and net expense related disclosure for the
period ended April 30, 2009.

To discourage short-term trading, the Fund imposed a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which had the effect of
lowering total return.

Returns and rankings during all periods shown for Class B shares and the 1-year, 3-year,
5-year and 10-year periods for Class A, C and Institutional Class shares reflect a fee waiver
and/or expense reimbursement. Without this waiver/reimbursement, returns and rankings
would have been lower.

Performance figures do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. Returns and rankings may differ by
share class.

|Average Annual Total Returns(Unadjusted for Sales Charge) as of 4/30/09
|-----------------------------------------------------------------------
|DWS Strategic Government
Securities Fund                               
|Class A                                                                
|Class B                                                                
|Class C                                                                
|Institutional Class                                                    
|Barclays Capital GNMA Index+                                           

Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.

|Net Asset Value and Distribution Information                       
|-------------------------------------------------------------------
|                                                                   
|Net Asset Value:
4/30/09                                           
|10/31/08                                                           
|Distribution Information:
Six Months as of 4/30/09:Income Dividends
|April Income Dividend                                              
|SEC 30-day Yield as of 4/30/09++                                   
|Current Annualized Distribution Rate as of
4/30/09++               

|Class A Lipper Rankings  GNMA Funds Categoryas of 4/30/09
|----------------------------------------------------------
|Period                                                    
|1-Year                                                    
|3-Year                                                    
|5-Year                                                    
|10-Year                                                   

Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings
are based on total return unadjusted for sales charges with distributions reinvested. If
sales charges had been included, rankings might have been less than favorable.
Rankings are for Class A shares; other share classes may vary.

|Growth of an Assumed $10,000 Investment(Adjusted for Maximum Sales Charge)         
|-----------------------------------------------------------------------------------
|[]DWS Strategic Government Securities Fund  Class A
[]Barclays Capital GNMA Index+
|sgs_g10k2c0                                                                        
|Yearly periods ended April 30                                                      

The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales
charge of 4.50%. This results in a net initial investment of $9,550.

|Comparative Results(Adjusted for Maximum Sales Charge) as of 4/30/09
|--------------------------------------------------------------------
|DWS Strategic Government
Securities Fund                            
|Class A                                                             
|Average annual total return                                         
|Class B                                                             
|Average annual total return                                         
|Class C                                                             
|Average annual total return                                         
|Barclays Capital
GNMA Index+                                        
|Average annual total return                                         

The growth of $10,000 is cumulative.

|Growth of an Assumed $1,000,000 Investment                                                     
|-----------------------------------------------------------------------------------------------
|[]DWS Strategic Government Securities Fund  Institutional Class
[]Barclays Capital GNMA Index+
|sgs_g10k2b0                                                                                    
|Yearly periods ended April 30                                                                  

|Comparative Resultsas of 4/30/09
|--------------------------------

|DWS Strategic Government
Securities Fund | 1-Year               | 3-Year     | 5-Year     | 10-Year   
|---------------------------------------- | -------------------- | ---------- | ---------- | ----------
|Institutional
Class                      | Growth of $1,000,000 | $1,059,600 | $1,206,700 | $1,275,700
|Average annual total return              | 5.96%                | 6.46%      | 4.99%      | 5.30%     
|Barclays Capital
GNMA Index+             | Growth of $1,000,000 | $1,078,300 | $1,241,400 | $1,331,200
|Average annual total return              | 7.83%                | 7.48%      | 5.89%      | 6.04%     

The growth of $1,000,000 is cumulative.

The minimum initial investment for Institutional Class is $1,000,000.

Class S

Class S shares are generally not available to new investors except under certain
circumstances. (Please refer to the Fund's Statement of Additional Information.)

All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment return
and principal value fluctuate with changing market conditions so that, when
redeemed, shares may be worth more or less than their original cost. Current
performance may be lower or higher than the performance quoted. Please visit
www.dws-investments.com for the Fund's most recent month-end performance.

The total annual fund operating expense ratio, gross of any fee waivers or expense
reimbursements, as stated in the fee table of the prospectus dated February 1, 2009
is 0.62% for Class S shares. Please see the Information About Your Fund's Expenses,
the Financial Highlights and Notes to the Financial Statements (Note C, Related
Parties) sections of this report for gross and net expense related disclosure for the
period ended April 30, 2009.

To discourage short-term trading, the Fund imposed a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which has the effect of
lowering total return.

Returns and rankings during the 1-year, 3-year and the Life of Class periods shown reflect
a fee waiver and/or expense reimbursement. Without this waiver/reimbursement, returns
and rankings would have been lower.

Performance figures do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. Returns may differ by share class.

|Average Annual Total Returnsas of 4/30/09
|-----------------------------------------
|DWS Strategic Government
Securities Fund 
|Class S                                  
|Barclays Capital GNMA Index+             

Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.

|Net Asset Value and Distribution Information                       
|-------------------------------------------------------------------
|                                                                   
|Net Asset Value:
4/30/09                                           
|10/31/08                                                           
|Distribution Information:
Six Months as of 4/30/09:Income Dividends
|April Income Dividend                                              
|SEC 30-day Yield as of 4/30/09++                                   
|Current Annualized Distribution Rate as of 4/30/09++               

|Class S Lipper Rankings  GNMA Funds Categoryas of 4/30/09
|----------------------------------------------------------
|Period                                                    
|1-Year                                                    
|3-Year                                                    

Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings
are based on total return with distributions reinvested. Rankings are for Class S shares;
other share classes may vary.

|Growth of an Assumed $10,000 Investment                                            
|-----------------------------------------------------------------------------------
|[]DWS Strategic Government Securities Fund  Class S
[]Barclays Capital GNMA Index+
|sgs_g10k2a0                                                                        
|                                                                                   

|Comparative Resultsas of 4/30/09        
|----------------------------------------
|DWS Strategic Government Securities Fund
|Class S                                 
|Average annual total return             
|Barclays Capital GNMA Index+            
|Average annual total return             

The growth of $10,000 is cumulative.

Information About Your Fund's Expenses

As an investor of the Fund, you incur two types of costs: ongoing expenses
and transaction costs. Ongoing expenses include management fees,
distribution and service (12b-1) fees and other Fund expenses. Examples of
transaction costs include sales charges (loads), redemption fees and
account maintenance fees, which are not shown in this section. The
following tables are intended to help you understand your ongoing expenses
(in dollars) of investing in the Fund and to help you compare these expenses
with the ongoing expenses of investing in other mutual funds. In the most
recent six-month period, Class B shares limited these expenses; had it not
done so, expenses would have been higher. The example in the table is
based on an investment of $1,000 invested at the beginning of the
six-month period and held for the entire period(November 1, 2008 to April
30, 2009).

The tables illustrate your Fund's expenses in two ways:

•    Actual Fund Return. This helps you estimate the actual dollar amount of
ongoing expenses (but not transaction costs) paid on a $1,000
investment in the Fund using the Fund's actual return during the period.
To estimate the expenses you paid over the period, simply divide your
account value by $1,000 (for example, an $8,600 account value divided
by $1,000 = 8.6), then multiply the result by the number in the
"Expenses Paid per $1,000" line under the share class you hold.

•    Hypothetical 5% Fund Return. This helps you to compare your Fund's
ongoing expenses (but not transaction costs) with those of other mutual
funds using the Fund's actual expense ratio and a hypothetical rate of
return of 5% per year before expenses. Examples using a 5%
hypothetical fund return may be found in the shareholder reports of other
mutual funds. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you
paid for the period.

Please note that the expenses shown in these tables are meant to highlight
your ongoing expenses only and do not reflect any transaction costs. The
"Expenses Paid per $1,000" line of the tables is useful in comparing
ongoing expenses only and will not help you determine the relative total
expense of owning different funds. An account maintenance fee of $6.25
per quarter for Class S shares may apply for certain accounts whose
balances do not meet the applicable minimum initial investment. This fee is
not included in these tables. If it was, the estimate of expenses paid for
Class S shares during the period would be higher, and account value during
the period would be lower, by this amount.

|Expenses and Value of a $1,000 Investmentfor the six months ended April 30, 2009
|--------------------------------------------------------------------------------
|Actual Fund Return                                                              
|Beginning Account Value 11/1/08                                                 
|Ending Account Value 4/30/09                                                    
|Expenses Paid per $1,000*                                                       
|Hypothetical 5% Fund Return                                                     
|Beginning Account Value 11/1/08                                                 
|Ending Account Value 4/30/09                                                    
|Expenses Paid per $1,000*                                                       

|Annualized Expense Ratios                | Class A | Class B | Class C | Class S | Institutional
Class
|---------------------------------------- | ------- | ------- | ------- | ------- | -------------------
|DWS Strategic Government
Securities Fund | .83%    | 1.71%   | 1.61%   | .66%    | .59%               

For more information, please refer to the Fund's prospectus.

Portfolio Management Review

In the following interview, the portfolio managers discuss market
conditions and the fund's investment strategy during the semiannual
period ended April 30, 2009.

The views expressed in the following discussion reflect those of the portfolio management
team only through the end of the period of the report as stated on the cover. The management
team's views are subject to change at any time based on market and other conditions and
should not be construed as a recommendation. Past performance is no guarantee of future
results. Current and future portfolio holdings are subject to risk.

Q: Could you describe the investing environment over the
six-month period ended April 30, 2009?

A:As the period began, sentiment in the credit markets continued
to be poor in the wake of the September 2008 turmoil among
leading global financial institutions. Even high-quality
non-government sectors saw significant declines in November, as
investors placed a tremendous premium on safety. Conditions
stabilized to a degree in December, and investor risk appetites
began to return over the first quarter of 2009, as the extensive
government actions to support the financial sector gained traction
with market participants. GNMA securities provided attractive
returns for the six months, as they were much less impacted by the
volatility during the early part of the period than other, lower-quality
sectors.

GNMA investors pay close attention to the direction of interest
rates, as falling rates can lead to increased prepayments on
underlying loans. These prepayments must then be reinvested at
the prevailing lower interest rates. During the six-month period, the
US Federal Reserve Board (the Fed) did everything it could to bring
rates down, including lowering the federal funds rate from 1% to
the unprecedented 0% to 0.25% range in December of 2008.1
Treasury yields finished lower along the length of the curve.2 To
illustrate, the two-year Treasury yield fell by 65 basis points, from
1.55% to 0.90%, while the 10-year fell 83 basis points, from 3.95%
to 3.12% (100 basis points equals one percentage point). Mortgage
rates fell as well over the period, approaching historical lows, as the
cuts in the fed funds rate and other government actions designed to
lower costs for borrowers took hold.

Q: How did the fund perform in this environment?

A:For the six months ended April 30, 2009, the fund's Class A
shares posted a 8.28% total return, compared with the 8.03%
return of its benchmark, the Barclays Capital GNMA Index (Returns
are unadjusted for sales charges. If sales charges had been
included, returns would have been lower. Past performance is no
guarantee of future results. Please see pages 4 through 8 for
more performance information.)3 The fund's return exceeded the
8.02% return of its average peer in the Lipper GNMA Funds
category.4 At the close of the period, the fund's duration (or level of
sensitivity to changes in interest rates) stood at 2.0 years, compared
with 2.3 years for the Barclays Capital GNMA Index.5

Q: Can you give us an overview of how you manage the fund?

A:In managing the fund, we seek high current income, liquidity and
security of principal. Our first focus is on the fund's allocation
between GNMAs and US Treasury securities  both of which are
backed by the full faith and credit of the US government.6 We will
adjust the fund's Treasury exposure up or down based on our view
of the relative value provided by GNMAs versus Treasuries and of
how we expect the interest rate environment to impact each sector.

In putting together our GNMA allocation, we monitor mortgage
refinancing activity closely, as this is a good indicator of the
fund's exposure to prepayment risk.7 We conduct extensive analysis
of prepayment expectations for individual securities.Mortgage
characteristics that we evaluate on an ongoing basis include loan
age, loan size, geographic concentrations and mortgage pool
originator. For instance, smaller loan sizes generally mean a slower
rate of prepayment, and homeowners in certain regions tend to
refinance less frequently.We believe that through this assessment
we can help to control the fund's prepayment risk and maintain
higher dividends. Conversely, we may also look to purchase
securities trading at a price below par and which we hope will
prepay at a higher rate, thereby increasing our holding yield.

We do not try to choose securities based on their duration - a
measure of interest rate sensitivity based on when investors can
expect payments of principal and interest from a bond. Instead, we
look for securities that we feel are cheap relative to the Barclays
Capital GNMA Index.

Q: What were the fund's primary strategies during the period?

A:We have for some time had the fund positioned in expectation of
an overall environment of lower interest rates, based on the Fed's
clear commitment to bring borrowing costs down. Such an
environment normally leads to more rapid prepayment of underlying
mortgages and makes investors less willing to pay for threatened
cash flows from higher-coupon mortgages.8 In order to protect
against such a scenario, we have been focusing on structures
resistant to prepayment, such as lower-coupon securities backed by
seasoned mortgages. In this vein, early in the six-month period we
were able to purchase low-coupon GNMAs at a discount. These
securities finished the period substantially above par as mortgage
rates fell and investor concerns over the risk of mortgage
prepayments increased. Within the collateralized mortgage
obligation (CMO) sector, we had exposure to tranches structured to
benefit from any accelerated return of principal driven by a rise in
prepayments, and these holdings performed strongly as well.

We continued to minimize exposure to US Treasury securities, given
the extraordinary decline in Treasury yields that has occurred. Still,
even our modest exposure to US Treasuries held back relative
performance, as GNMAs outperformed for the six months. For a
portion of the period we had a position of 5% or less in Treasury
Inflation Protected Securities (TIPS). We sold this position late in the
period as TIPS valuations rebounded, spurred by the market moving
away from a deflationary outlook.

Finally, as part of our approach, we seek to enhance total returns by
employing a global tactical asset allocation overlay strategy.9 This
strategy which we call iGAP (integrated global alpha platform), seeks
to identify the relative value to be found among global bond and
currency markets, and then to benefit from disparities through the
use of global bond futures and currency forward contracts. For the
period, the iGAP strategy was essentially a neutral factor in the
fund's performance.

|GNMA securities in a nutshell
Government National Mortgage Association (GNMA) securities,
commonly called "Ginnie Mae" securities, are backed by the full faith
and credit of the US government with respect to payment of principal
and interest. Each GNMA mortgage-backed security represents an
aggregated pool of homeowners' mortgages from which investors
receive principal and interest payments each month. If interest rates
fall, homeowners tend to refinance and pay off their existing
mortgages earlier, and mortgage-backed investors are forced to
reinvest the proceeds at lower prevailing rates. If interest rates rise,
principal for the mortgages underlying GNMA securities tends to be
repaid more slowly and an investor receives the coupon interest on
the security over a longer time horizon. The value of GNMAs issued
recently with coupons that reflect lower prevailing rates can be less
attractive to investors and may experience a greater price decline if
market interest rates rise, reducing returns to investors. As a result,
funds that invest primarily in GNMAs tend to perform best in
environments in which interest rates do not change dramatically.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Q: How do you assess the economic environment for mortgage
securities at present?

A:We remain very focused on the potential impact on interest rates
and GNMA prepayment rates of US government policy. In this vein,
we continue to expect the Fed and Treasury to do whatever it takes
to get credit flowing and lending back on track. This policy objective
continues to carry with it the strong potential for an increase in
refinancing by homeowners and in mortgage prepayment rates. Any
increase in refinancing may be restrained to a degree by the
tightening in mortgage underwriting standards that has occurred
and by homeowners with negative equity following the collapse in
home prices. Nonetheless, we believe a continued focus on low
coupons, smaller loan balances and other characteristics resistant to
prepayment makes sense for now, given that mortgage rates have
fallen to the historically low 4.5% range.

More broadly, while GNMAs have enjoyed strong performance
in recent months, they continue to appear favorably valued
versus Treasuries. At the close of the period, GNMAs provided
a yield advantage versus equivalent-maturity Treasuries of close
to 200 basis points.

Portfolio Summary

|Asset Allocation(As a % of Investment Portfolio
excluding Securities Lending Collateral) | 4/30/09 | 10/31/08
|---------------------------------------------------------------------------------------- | ------- | --------
|                                                                                         |         |         
|Mortgage-Backed Securities Pass-Throughs                                                 | 75%     | 80%     
|Collateralized Mortgage Obligations                                                      | 11%     | 14%     
|Government & Agency Obligations                                                          | 11%     | 4%      
|Cash Equivalents                                                                         | 3%      | 2%      
|                                                                                         | 100%    | 100%    

|Coupons*         | 4/30/09 | 10/31/08
|---------------- | ------- | --------
|                 |         |         
|Less than 4.5%   | 13%     | 8%      
|4.5%-5.49%       | 23%     | 25%     
|5.5%-6.49%       | 47%     | 50%     
|6.5%-7.49%       | 12%     | 12%     
|7.5% and Greater | 5%      | 5%      
|                 | 100%    | 100%    

|Credit Quality             | 4/30/09 | 10/31/08
|-------------------------- | ------- | --------
|                           |         |         
|US Government and Agencies | 93%     | 98%     
|AAA**                      | 7%      | 2%      
|                           | 100%    | 100%    

|Interest Rate Sensitivity | 4/30/09   | 10/31/08 
|------------------------- | --------- | ---------
|                          |           |          
|Effective Maturity        | 4.4 years | 7.1 years
|Average Duration          | 2.0 years | 4.5 years

Asset allocation, coupons, credit quality and interest rate sensitivity are subject to change.

The quality ratings represents the lower of Moody's Investors Service, Inc. ("Moody's") or
Standard & Poor's Corporation ("S&P") credit ratings. The ratings of Moody's and S&P
represent their opinions as to the quality of the securities they rate. Ratings are relative and
subjective and are not absolute standards of quality. The Fund's credit quality does not remove
market risk.

For more complete details about the Fund's investment portfolio, see page 17. A quarterly Fact
Sheet is available upon request. A complete list of the Fund's portfolio holdings is posted as of
the month end on www.dws-investments.com on or about the 15th day of the following
month. More frequent posting of portfolio holdings information may be made from time to time
on www.dws-investments.com. Please see the Account Management Resources section for
contact information.

Following the Fund's fiscal first and third quarter-end, a complete portfolio
holdings listing is filed with the SEC on Form N-Q. The form will be available
on the SEC's Web site at www.sec.gov, and it also may be reviewed and
copied at the SEC's Public Reference Room in Washington, D.C. Information
on the operation of the SEC's Public Reference Room may be obtained by
calling (800) SEC-0330.

Investment Portfolioas of April 30, 2009 (Unaudited)

|                                                                                                                                | Principal
Amount ($) | Value ($)  
|------------------------------------------------------------------------------------------------------------------------------- | -------------------- | -----------
|                                                                                                                                |                     
|Mortgage-Backed Securities Pass-Throughs 76.4%                                                                                 
|Federal Home Loan Mortgage Corp.:                                                                                               |                      |            
|4.5%, 4/1/2019                                                                                                                  | 17,621               | 18,239     
|5.0%, with various maturities from 1/1/2019 until 12/1/2019                                                                     | 714,165              | 744,321    
|6.5%, with various maturities from 9/1/2032 until 7/1/2035                                                                      | 2,428,752            | 2,578,732  
|7.0%, with various maturities from 6/1/2032 until 10/1/2038                                                                     | 10,247,325           | 11,010,421 
|8.0%, with various maturities from 2/1/2017 until 7/1/2030                                                                      | 19,973               | 20,882     
|8.5%, with various maturities from 12/1/2016 until 7/1/2030                                                                     | 7,758                | 8,272      
|10.25%, 3/1/2016                                                                                                                | 278                  | 282        
|Federal National Mortgage Association:                                                                                          |                      |            
|5.0%, with various maturities from 12/1/2016 until 5/1/2021                                                                     | 6,375,106            | 6,653,674  
|5.5%, with various maturities from 5/1/2025 until 6/1/2035
(a)                                                                  | 26,948,961           | 27,923,682 
|6.0%, with various maturities from 12/1/2020 until 8/1/2035                                                                     | 10,049,576           | 10,558,623 
|6.5%, with various maturities from 7/1/2035 until 1/1/2038                                                                      | 9,881,150            | 10,483,130 
|7.0%, 10/1/2037                                                                                                                 | 2,407,378            | 2,588,872  
|8.0%, with various maturities from 9/1/2011 until 12/1/2024                                                                     | 152,021              | 161,719    
|8.5%, with various maturities from 7/1/2030 until 9/1/2030                                                                      | 12,650               | 13,657     
|9.0%, with various maturities from 12/1/2016 until 4/1/2030                                                                     | 31,306               | 34,059     
|Government National Mortgage Association:                                                                                       |                      |            
|2.86%, 4/1/2039                                                                                                                 | 22,000,000           | 22,440,000 
|4.5%, 3/1/2038 (a)                                                                                                              | 25,000,000           | 25,500,000 
|5.0%, with various maturities from 2/15/2033 until 3/15/2039
(b)                                                                | 228,554,127          | 237,573,569
|5.5%, with various maturities from 12/15/2028
until 4/15/2039 (a) (b)                                                           | 403,420,067          | 421,403,385
|6.0%, with various maturities from 11/15/2023
until 2/20/2039 (a) (b)                                                           | 526,812,336          | 555,341,636
|6.5%, with various maturities from 6/15/2023 until 2/15/2039
(a)                                                                | 107,180,539          | 113,596,283
|7.0%, with various maturities from 9/15/2009
until 11/15/2038 (b) (c)                                                           | 53,154,210           | 56,855,213 
|7.5%, with various maturities from 6/15/2009 until 1/15/2037                                                                    | 24,999,090           | 26,837,343 
|8.0%, 9/15/2014                                                                                                                 | 255                  | 261        
|9.0%, with various maturities from 9/15/2017 until 7/15/2030                                                                    | 1,880,917            | 2,066,812  
|9.5%, with various maturities from 6/15/2009 until 5/15/2025                                                                    | 2,560,685            | 2,843,093  
|10.0%, with various maturities from 11/15/2009
until 8/15/2022                                                                  | 1,577,564            | 1,783,081  
|10.5%, with various maturities from 9/15/2015
until 12/15/2021                                                                  | 910,157              | 1,041,313  
|11.0%, 4/20/2019                                                                                                                | 2,704                | 3,118      
|Total Mortgage-Backed Securities Pass-Throughs (Cost $1,493,551,883)                                                            | 1,540,083,672       
|                                                                                                                               
|Collateralized Mortgage Obligations 11.4%                                                                                      
|FannieMae Grantor Trust, "A2", Series 2001-T10,
7.5%, 12/25/2041                                                                | 4,535,058            | 4,786,259  
|FannieMae Whole Loan, "3A", Series 2004-W8,
7.5%, 6/25/2044                                                                     | 2,472,986            | 2,514,022  
|Federal Home Loan Mortgage Corp.:                                                                                               |                      |            
|"JF", Series 2704, 1.001%*, 5/15/2023                                                                                           | 11,396,545           | 11,279,765 
|"FP", Series 2341, 1.351%*, 7/15/2031                                                                                           | 2,466,871            | 2,455,364  
|"FO", Series 2418, 1.351%*, 2/15/2032                                                                                           | 3,063,172            | 3,042,570  
|"GF", Series 2412, 1.401%*, 2/15/2032                                                                                           | 2,317,234            | 2,310,028  
|"FA", Series 2419, 1.451%*, 2/15/2032                                                                                           | 2,754,785            | 2,745,975  
|"F", Series 2439, 1.451%*, 3/15/2032                                                                                            | 4,302,909            | 4,289,902  
|"FA", Series 2436, 1.451%*, 3/15/2032                                                                                           | 3,872,618            | 3,860,912  
|"FD", Series 3519, 1.901%*, 2/15/2038                                                                                           | 16,298,345           | 16,385,231 
|"BI", Series 3499, Interest Only, 4.0%, 9/15/2021                                                                               | 2,760,883            | 205,336    
|"GZ", Series 2906, 5.0%, 9/15/2034                                                                                              | 17,379,196           | 16,460,591 
|"SL", Series 2882, Interest Only, 6.749%**, 10/15/2034                                                                          | 2,656,828            | 265,092    
|Federal Home Loan Mortgage Corp./Government National
Mortgage Association, "SC", Series 23, Interest Only,
9.113%**, 11/25/2023 | 2,329,058            | 377,928    
|Federal National Mortgage Association:                                                                                          |                      |            
|"1", Series 17, Principal Only, Zero Coupon, 5/1/2017                                                                           | 1,631                | 1,434      
|"F", Series 2004-29, 0.838%*, 5/25/2034                                                                                         | 737,667              | 737,251    
|"OF", Series 2001-60, 1.388%*, 10/25/2031                                                                                       | 1,392,798            | 1,388,071  
|"OF", Series 2001-70, 1.388%*, 10/25/2031                                                                                       | 696,399              | 692,490    
|"FB", Series 2002-30, 1.438%*, 8/25/2031                                                                                        | 3,659,672            | 3,644,909  
|"PF", Series 2001-69, 1.438%*, 12/25/2031                                                                                       | 2,306,087            | 2,300,779  
|"FB", Series 2002-84, 1.438%*, 12/25/2032                                                                                       | 5,541,154            | 5,525,000  
|"25", Series 351, Interest Only, 4.5%, 5/1/2019                                                                                 | 6,485,457            | 690,879    
|"21", Series 334, Interest Only, 5.0%, 3/1/2018                                                                                 | 7,886,474            | 764,746    
|"20", Series 334, Interest Only, 5.0%, 3/1/2018                                                                                 | 5,973,456            | 579,468    
|"23", Series 339, Interest Only, 5.0%, 7/1/2018                                                                                 | 5,549,965            | 538,461    
|"ZA", Series 2008-24, 5.0%, 4/25/2038                                                                                           | 13,194,272           | 11,641,826 
|"AN", Series 2007-108, 8.861%*, 11/25/2037                                                                                      | 17,089,543           | 17,990,564 
|Government National Mortgage Association:                                                                                       |                      |            
|"PO", Series 1999-40, Principal Only,
Zero Coupon, 11/16/2029                                                                   | 1,524,471            | 1,301,141  
|"PO", Series 2006-60, Principal Only,
Zero Coupon, 11/20/2036                                                                   | 623,235              | 585,445    
|"FG", Series 2002-76, 0.851%*, 10/16/2029                                                                                       | 1,777,879            | 1,756,687  
|"FN", Series 2007-51, 0.867%*, 8/20/2037                                                                                        | 2,400,000            | 2,270,398  
|"ZC", Series 2003-86, 4.5%, 10/20/2033                                                                                          | 1,600,283            | 1,465,489  
|"A1", Series 2008-36, Interest Only, 5.0%, 10/16/2022                                                                           | 8,229,992            | 587,973    
|"KE", Series 2004-19, 5.0%, 3/16/2034                                                                                           | 4,500,000            | 4,347,298  
|"PH", Series 2004-80, 5.0%, 7/20/2034                                                                                           | 8,002,000            | 7,931,202  
|"LE", Series 2004-87, 5.0%, 10/20/2034                                                                                          | 6,741,000            | 6,445,701  
|"ZB", Series 2005-15, 5.0%, 2/16/2035                                                                                           | 11,079,816           | 10,502,070 
|"Z", Series 2005-25, 5.0%, 3/16/2035                                                                                            | 2,451,965            | 2,346,317  
|"ZA", Series 2006-47, 5.0%, 8/16/2036                                                                                           | 6,085,835            | 5,519,440  
|"CK", Series 2007-31, 5.0%, 5/16/2037                                                                                           | 7,412,000            | 7,381,165  
|"AI", Series 2008-77, Interest Only, 5.5%, 10/20/2020                                                                           | 1,803,389            | 29,942     
|"AI", Series 2008-40, Interest Only, 5.5%, 5/16/2023                                                                            | 4,517,346            | 416,334    
|"AI", Series 2008-51, Interest Only, 5.5%, 5/16/2023                                                                            | 12,775,742           | 1,277,706  
|"TZ", Series 2003-85, 5.5%, 10/20/2033                                                                                          | 20,284,541           | 19,679,991 
|"PI", Series 2004-28, Interest Only, 5.5%, 11/20/2033                                                                           | 4,601,432            | 340,304    
|"PC", Series 2007-2, 5.5%, 6/20/2035                                                                                            | 10,000,000           | 10,537,465 
|"PD", Series 2005-91, 5.5%, 12/20/2035                                                                                          | 5,000,000            | 4,863,309  
|"ZA", Series 2007-30, 5.5%, 5/16/2037                                                                                           | 5,554,530            | 5,305,425  
|"SF", Series 2002-63, Interest Only, 5.828%**, 9/16/2032                                                                        | 5,590,032            | 319,068    
|"SP", Series 2005-61, Interest Only, 5.828%**, 8/16/2035                                                                        | 11,606,792           | 761,036    
|"BZ", Series 2004-46, 6.0%, 6/20/2034                                                                                           | 2,670,924            | 2,797,628  
|"PS", Series 2008-40, Interest Only, 6.048%**, 5/16/2038                                                                        | 3,543,548            | 285,641    
|"SJ", Series 2004-22, Interest Only, 6.153%**, 4/20/2034                                                                        | 15,180,152           | 712,219    
|"ZB", Series 1998-21, 6.5%, 9/20/2028                                                                                           | 2,678,637            | 2,851,131  
|"IO", Series 2006-61, Interest Only, 6.5%, 11/20/2036                                                                           | 8,361,874            | 1,095,236  
|"KS", Series 2004-96, Interest Only, 6.553%**, 7/20/2034                                                                        | 9,853,633            | 679,467    
|"SY", Series 2004-47, Interest Only, 6.608%**, 1/16/2034                                                                        | 12,250,113           | 890,462    
|"LS", Series 2003-74, Interest Only, 6.703%**, 12/20/2030                                                                       | 2,407,857            | 124,883    
|"QS", Series 2003-34, Interest Only, 6.703%**, 3/20/2033                                                                        | 9,264,918            | 816,607    
|"SN", Series 2005-68, Interest Only, 6.752%**, 1/17/2034                                                                        | 21,559,974           | 1,175,083  
|"SM", Series 2003-60, Interest Only, 7.298%**, 1/16/2033                                                                        | 24,975,304           | 2,931,821  
|"SJ", Series 1999-43, Interest Only, 7.548%**, 11/16/2029                                                                       | 4,077,200            | 393,701    
|"SA", Series 1999-30, Interest Only, 7.549%**, 4/16/2029                                                                        | 7,331,595            | 494,482    
|"QA", Series 2002-13, Interest Only, 7.598%**, 2/16/2032                                                                        | 481,275              | 50,907     
|"S", Series 1999-15, Interest Only, 7.748%**, 5/16/2029                                                                         | 4,011,749            | 453,202    
|Total Collateralized Mortgage Obligations (Cost $221,752,604)                                                                   | 229,198,229         
|                                                                                                                               
|Government & Agency Obligations 10.8%                                                                                          
|Other Government Related 3.4%                                                                                                  
|Citibank NA:                                                                                                                    |                      |            
|FDIC Guaranteed, 1.016%*, 5/7/2012 (a)                                                                                          | 14,300,000           | 14,300,000 
|FDIC Guaranteed, 1.875%, 5/7/2012 (a)                                                                                           | 22,000,000           | 21,942,580 
|JPMorgan Chase & Co.:                                                                                                           |                      |            
|Series 3, FDIC Guaranteed, 1.416%*, 12/26/2012                                                                                  | 5,097,000            | 5,079,951  
|FDIC Guaranteed, 1.55%*, 6/15/2012                                                                                              | 5,853,000            | 5,869,189  
|FDIC Guaranteed, 2.125%, 12/26/2012                                                                                             | 22,000,000           | 21,977,428 
|                                                                                                                                | 69,169,148          
|US Government Sponsored Agencies 4.9%                                                                                          
|Federal Home Loan Bank:                                                                                                         |                      |            
|1.375%, 5/16/2011                                                                                                               | 22,000,000           | 22,014,410 
|7.2%*, 3/18/2024                                                                                                                | 4,710,000            | 4,551,038  
|7.45%*, 10/16/2023 (c)                                                                                                          | 10,000,000           | 10,000,000 
|Federal National Mortgage Association:                                                                                          |                      |            
|1.288%*, 2/27/2023 (c)                                                                                                          | 18,000,000           | 17,280,000 
|1.75%, 3/23/2011 (c)                                                                                                            | 10,000,000           | 10,097,060 
|1.875%, 4/20/2012                                                                                                               | 12,570,000           | 12,612,436 
|5.0%, 5/20/2024                                                                                                                 | 22,000,000           | 21,929,402 
|                                                                                                                                | 98,484,346          
|US Treasury Obligations 2.5%                                                                                                   
|US Treasury Bills:                                                                                                              |                      |            
|0.04%***, 5/21/2009 (d)                                                                                                         | 181,000              | 180,996    
|0.04%***, 5/21/2009 (d)                                                                                                         | 267,000              | 266,994    
|0.13%***, 6/11/2009 (d)                                                                                                         | 6,104,000            | 6,103,585  
|0.13%***, 6/11/2009 (d)                                                                                                         | 6,052,000            | 6,051,588  
|0.24%***, 7/9/2009 (d)                                                                                                          | 986,000              | 985,817    
|0.29%***, 6/18/2009 (d)                                                                                                         | 2,611,000            | 2,610,801  
|US Treasury Note, 4.875%, 4/30/2011 (b)                                                                                         | 32,000,000           | 34,500,000 
|                                                                                                                                | 50,699,781          
|Total Government & Agency Obligations (Cost $219,234,774)                                                                       | 218,353,275         

|                                                                   | Shares      | Value ($)  
|------------------------------------------------------------------ | ----------- | -----------
|                                                                   |            
|Securities Lending Collateral 15.7%                               
|Daily Assets Fund Institutional, 0.66% (e) (f)
(Cost $316,545,664) | 316,545,664 | 316,545,664
|                                                                  
|Cash Equivalents 3.0%                                             
|Cash Management QP Trust, 0.46% (e) (Cost $60,795,600)             | 60,795,600  | 60,795,600 

|                                                 | % of Net
Assets | Value ($)    
|------------------------------------------------ | --------------- | -------------
|                                                 |                
|Total Investment Portfolio(Cost $2,311,880,525)+ | 117.3           | 2,364,976,440
|Other Assets and Liabilities, Net                | (17.3)          | (348,978,852)
|Net Assets                                       | 100.0           | 2,015,997,588

Interest Only: Interest Only (IO) bonds represent the "interest only" portion of payments on a
pool of underlying mortgages or mortgage-backed securities. IO securities are subject to
prepayment risk of the pool of underlying mortgages.

Principal Only: Principal Only (PO) bonds represent the "principal only" portion of payments on
a pool of underlying mortgages or mortgage-backed securities.

Included in the portfolio are investments in mortgage or asset-backed securities which are
interests in separate pools of mortgages or assets. Effective maturities of these investments
may be shorter than stated maturities due to prepayments. Some separate investments in the
Federal Home Loan Mortgage Corp., Federal National Mortgage Association, and Government
National Mortgage Association issues which have similar coupon rates have been aggregated
for presentation purposes in this investment portfolio.

At April 30, 2009, open futures contracts purchased were as follows:

|                                        | Expiration
Date | Contracts | Aggregate
Face
Value ($) | Value ($)  | Unrealized
Appreciation/
(Depreciation) ($)
|--------------------------------------- | --------------- | --------- | ------------------------ | ---------- | -------------------------------------------
|10 Year Australian
Treasury Bond        | 6/15/2009       | 719       | 59,226,216               | 58,197,663 | (1,028,553)                                
|10 Year Interest
Rate Swap              | 6/15/2009       | 153       | 19,171,866               | 18,840,516 | (331,350)                                  
|10 Year US Treasury
Note                | 6/19/2009       | 295       | 36,183,607               | 35,676,563 | (507,044)                                  
|2 Year US Treasury
Note                 | 6/30/2009       | 411       | 89,189,511               | 89,411,768 | 222,257                                    
|3 Year Australian
Treasury Bond         | 6/15/2009       | 203       | 15,871,270               | 15,827,390 | (43,880)                                   
|Federal Republic of
Germany
Euro-Schatz | 6/8/2009        | 514       | 73,735,851               | 73,485,309 | (250,542)                                  
|United Kingdom
Long Gilt Bond           | 6/26/2009       | 431       | 77,078,812               | 76,894,492 | (184,320)                                  
|Total net unrealized depreciation       | (2,123,432)    

At April 30, 2009, open futures contracts sold were as follows:

|                                      | Expiration
Date | Contracts | Aggregate
Face
Value ($) | Value ($)   | Unrealized
Appreciation ($)
|------------------------------------- | --------------- | --------- | ------------------------ | ----------- | ---------------------------
|10 Year Canadian
Government Bond      | 6/19/2009       | 194       | 20,306,433               | 20,138,087  | 168,346                    
|10 Year Japanese
Government Bond      | 6/11/2009       | 88        | 123,773,429              | 122,238,085 | 1,535,344                  
|10 Year US Treasury
Note              | 6/19/2009       | 1,552     | 190,070,217              | 187,695,000 | 2,375,217                  
|Federal Republic of
Germany Euro-Bund | 6/8/2009        | 275       | 44,864,700               | 44,582,834  | 281,866                    
|Total unrealized appreciation         | 4,360,773      

At April 30, 2009, open interest rate swaps were as follows:

|Effective/
Expiration
Date                                | Notional
Amount ($) | Cash Flows Paid
by the Fund | Cash Flows
Received by the
Fund | Unrealized
Appreciation ($)
|--------------------------------------------------------- | ------------------- | --------------------------- | ------------------------------- | ---------------------------
|4/20/2009
4/20/2024                                       | 11,000,0001         | Fixed  7.5%                | Floating  LIBOR                | 15,808                     
|5/15/2009
5/15/2024                                       | 11,000,0001         | Fixed  7.5%                | Floating  LIBOR                |                           
|Total unrealized appreciation on open interest rate swaps | 15,808             

At April 30, 2009, open total return swap contracts were as follows:

|Effective/
Expiration
Date                     | Notional
Amount ($) | Fixed
Cash
Flows
Paid | Reference Entity                    | Value ($) | Upfront
Premiums
Paid/
(Received)
($) | Unrealized
Depreciation
($)
|---------------------------------------------- | ------------------- | --------------------- | ----------------------------------- | --------- | ------------------------------------- | ---------------------------
|12/1/2008
12/1/2010                            | 52,000,0002         | 0.35%                 | Global Interest
Rate Strategy
Index | (856,238) | 104,000                               | (990,406)                  
|Counterparties:1Morgan Stanley2Citigroup, Inc.

At April 30, 2009, open written option contracts were as follows:

|Written Options                                                                                                                                        | Contract
Amount | Expiration
Date | Value ($)*
|------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------- | --------------- | ----------
|Call Options
Option on an interest rate swap for the obligation to
receive a fixed rate of 2.7% versus the one-year
LIBOR expiring on October 13, 2010 | 62,000,000      | 10/13/2009      | 843,448   
|Option on an interest rate swap for the obligation to
receive a fixed rate of 3.12% versus the one-year
LIBOR expiring on September 18, 2010           | 62,000,000      | 9/18/2009       | 4,917     
|Total Call Options (Premiums received $733,150)                                                                                                        | 848,365        
|Put Options
Option on an interest rate swap for the obligation to
pay a fixed rate of 2.7% versus the one-year LIBOR
expiring on October 13, 2010      | 62,000,000      | 10/13/2009      | 13,857    
|Option on an interest rate swap for the obligation to
pay a fixed rate of 3.12% versus the one-year
LIBOR expiring on September 18, 2010               | 62,000,000      | 9/18/2009       | 1,740,824 
|Total Put Options (Premiums received $733,150)                                                                                                         | 1,754,681      

|Written Options                                            | Coupon
Rate (%) | Contract
Amount | Expiration
Date | Strike
Price ($) | Value ($)*
|---------------------------------------------------------- | --------------- | --------------- | --------------- | ---------------- | ----------
|Call Options
30-Year GNSF                                  | 5.0             | 25,000,000      | 5/12/2009       | 101.8            | 421,875   
|30-Year GNSF                                               | 5.5             | 50,000,000      | 5/12/2009       | 102.6            | 625,000   
|30-Year GNSF                                               | 6.0             | 25,000,000      | 5/12/2009       | 103.5            | 250,000   
|30-Year GNSF                                               | 5.0             | 25,000,000      | 5/12/2009       | 102.3            | 296,875   
|30-Year GNSF                                               | 5.5             | 25,000,000      | 5/12/2009       | 103.0            | 218,750   
|30-Year GNSF                                               | 6.0             | 25,000,000      | 5/12/2009       | 104.1            | 109,375   
|30-Year GNSF                                               | 5.0             | 25,000,000      | 5/12/2009       | 103.1            | 129,357   
|30-Year GNSF                                               | 5.5             | 25,000,000      | 6/11/2009       | 103.6            | 76,975    
|30-Year GNSF                                               | 6.0             | 25,000,000      | 6/11/2009       | 104.2            | 51,308    
|Total Call Options (Premiums received $964,844)            | 2,179,515      
|Put Options
30-Year GNSF                                   | 4.5             | 25,000,000      | 6/11/2009       | 100.5            | 31,250    
|30-Year GNSF                                               | 4.5             | 25,000,000      | 12/15/2009      | 101.3            | 7,812     
|30-Year GNSF                                               | 5.0             | 25,000,000      | 6/11/2009       | 100.5            | 31,250    
|Total Put Options (Premiums received $261,719)             | 70,312         
|Total Written Options (Total premiums received $2,692,863) | 4,852,873      

GNSF: Government National Single Family

LIBOR: Represents the London InterBank Offered Rate

As of April 30, 2009, the Fund had the following open forward foreign currency exchange
contracts:

|Contracts to Deliver          |            | In Exchange For |     | Settlement
Date |  | Unrealized
Appreciation ($)
|----------------------------- | ---------- | --------------- | --- | --------------- |  | ---------------------------
|EUR                           | 52,461,000 |                 | USD | 69,500,333      |  | 5/20/2009                  
|USD                           | 57,151,468 |                 | CHF | 65,425,000      |  | 5/20/2009                  
|USD                           | 29,907,135 |                 | AUD | 42,134,000      |  | 5/20/2009                  
|USD                           | 38,527,675 |                 | CAD | 47,500,000      |  | 5/20/2009                  
|USD                           | 9,556,132  |                 | NOK | 64,071,000      |  | 5/20/2009                  
|USD                           | 20,696,676 |                 | JPY | 2,074,790,000   |  | 5/20/2009                  
|Total unrealized appreciation | 2,897,234 

|Contracts to Deliver          |            | In Exchange For |     | Settlement
Date |  | Unrealized
Depreciation ($)
|----------------------------- | ---------- | --------------- | --- | --------------- |  | ---------------------------
|GBP                           | 18,874,000 |                 | USD | 27,763,843      |  | 5/20/2009                  
|SEK                           | 35,051,000 |                 | USD | 4,269,878       |  | 5/20/2009                  
|USD                           | 5,916,609  |                 | NZD | 10,258,000      |  | 5/20/2009                  
|Total unrealized depreciation | (368,058) 

|Currency Abbreviations                                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|AUD     Australian DollarCAD     Canadian DollarCHF     Swiss FrancEUR     EuroGBP     British PoundJPY     Japanese YenNOK     Norwegian KroneNZD     New Zealand DollarSEK     Swedish KronaUSD     United States Dollar

Fair Value Measurements

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements," establishes a three-tier hierarchy for measuring fair value and
requires additional disclosure about the classification of fair value measurements.

Various inputs are used in determining the value of the Fund's investments. These inputs are
summarized in three broad levels. Level 1 includes quoted prices in active markets for identical
securities. Level 2 includes other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes
significant unobservable inputs (including the Fund's own assumptions in determining the fair
value of investments). The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of April 30, 2009 in valuing the Fund's
investments. For information on the Fund's policy regarding the valuation of investments,
please refer to the Security Valuation section of Note A in the accompanying Notes to the
Financial Statements.

|Valuation Inputs | Investments in
Securities | Options Written,
At Value | Other Financial
Instruments++
|---------------- | ------------------------- | ------------------------- | -----------------------------
|Level 1          | $       316,545,664       | $                        | $       2,237,341            
|Level 2          | 2,015,990,776             | (2,603,046)               | 1,554,578                    
|Level 3          | 32,440,000                | (2,249,827)               |                             
|Total            | $    2,364,976,440        | $    (4,852,873)          | $    3,791,919               

The following is a reconciliation of the Fund's Level 3 investments for which significant
unobservable inputs were used in determining value at April 30, 2009:

|                                                                                                      | Investments in
Securities | Written
Options    
|----------------------------------------------------------------------------------------------------- | ------------------------- | -------------------
|Balance as of October 31, 2008                                                                        | $       10,000,000        | $       (3,492,187)
|Total realized gain (loss)                                                                            |                          | 2,457,031          
|Change in unrealized appreciation (depreciation)                                                      |                          | (74,046)           
|Amortization premium/discount                                                                         |                          |                   
|Net purchases (sales)                                                                                 | 22,440,000                | (1,140,625)        
|Net transfers in (out) of Level 3                                                                     |                          |                   
|Balance as of April 30, 2009                                                                          | $    32,440,000           | $    (2,249,827)   
|Net change in unrealized appreciation (depreciation)
from investments still held as of April 30, 2009 | $                        | $    (1,023,265)   

The accompanying notes are an integral part of the financial statements.

Financial Statements

|Statement of Assets and Liabilitiesas of April 30, 2009 (Unaudited)                                                
|-------------------------------------------------------------------------------------------------------------------
|Assets                                                                                                             
|Investments:Investments in securities, at value (cost $1,934,539,261)  including
$310,116,211 of securities loaned
|Investment in Daily Assets Fund Institutional (cost $316,545,664)*                                                 
|Investment in Cash Management QP Trust (cost $60,795,600)                                                          
|Total investments, at value (cost $2,311,880,525)                                                                  
|Foreign currency, at value (cost $2,870,845)                                                                       
|Receivable for investments sold                                                                                    
|Receivable for when-issued and delayed delivery securities sold                                                    
|Unrealized appreciation on forward foreign currency exchange contracts                                             
|Unrealized appreciation on swap contracts                                                                          
|Interest receivable                                                                                                
|Receivable for Fund shares sold                                                                                    
|Other assets                                                                                                       
|Total assets                                                                                                       
|Liabilities                                                                                                        
|Cash overdraft                                                                                                     
|Payable for investments purchased                                                                                  
|Payable for when-issued and delayed delivery securities purchased                                                  
|Payable upon return of securities loaned                                                                           
|Payable for Fund shares redeemed                                                                                   
|Payable for variation margin on open futures contracts                                                             
|Options written, at value (premiums received $2,692,863)                                                           
|Unrealized depreciation on forward foreign currency exchange contracts                                             
|Unrealized depreciation on swap contracts                                                                          
|Accrued management fee                                                                                             
|Other accrued expenses and payables                                                                                
|Total liabilities                                                                                                  
|Net assets, at value                                                                                               

The accompanying notes are an integral part of the financial statements.

|Statement of Assets and Liabilitiesas of April 30, 2009 (Unaudited) (continued)                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Net Assets Consist of                                                                                                                                                                                                                           
|Undistributed net investment income                                                                                                                                                                                                             
|Net unrealized appreciation (depreciation) on:Investments                                                                                                                                                                                       
|Futures                                                                                                                                                                                                                                         
|Written options                                                                                                                                                                                                                                 
|Foreign currency                                                                                                                                                                                                                                
|Swap contracts                                                                                                                                                                                                                                  
|Accumulated net realized gain (loss)                                                                                                                                                                                                            
|Paid-in capital                                                                                                                                                                                                                                 
|Net assets, at value                                                                                                                                                                                                                            
|Net Asset Value                                                                                                                                                                                                                                 
|Class A
Net Asset Value and redemption price(a) per share
($1,852,159,112 ÷ 216,682,020 outstanding shares of beneficial interest,
no par value, unlimited number of shares authorized)                                                         
|Maximum offering price per share (100 ÷ 95.50 of $8.55)                                                                                                                                                                                         
|Class B
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($18,342,139 ÷ 2,146,718 outstanding
shares of beneficial interest, no par value, unlimited number of shares
authorized)      
|Class C
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($61,357,995 ÷ 7,166,384 outstanding
shares of beneficial interest, no par value, unlimited number of shares
authorized)      
|Class S
Net Asset Value, offering and redemption price(a)per share
($83,652,117 ÷ 9,784,195 outstanding shares of beneficial interest,
no par value, unlimited number of shares authorized)                                                     
|Institutional Class
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($486,225 ÷ 56,931 outstanding shares of
beneficial interest, no par value, unlimited number of shares authorized)

The accompanying notes are an integral part of the financial statements.

|Statement of Operationsfor the six months ended April 30, 2009 (Unaudited)                               
|---------------------------------------------------------------------------------------------------------
|Investment Income                                                                                        
|Income:Interest                                                                                          
|Interest  Cash Management QP Trust                                                                      
|Securities lending income, including income from Daily Assets Fund
Institutional, net of borrower rebates
|Total Income                                                                                             
|Expenses:Management fee                                                                                  
|Administration fee                                                                                       
|Distribution and service fees                                                                            
|Services to shareholders                                                                                 
|Custodian fee                                                                                            
|Professional fees                                                                                        
|Trustees' fees and expenses                                                                              
|Reports to shareholders                                                                                  
|Registration fees                                                                                        
|Other                                                                                                    
|Total expenses before expense reductions                                                                 
|Expense reductions                                                                                       
|Total expenses after expense reductions                                                                  
|Net investment income                                                                                    
|Realized and Unrealized Gain (Loss)                                                                      
|Net realized gain (loss) from:Investments                                                                
|Futures                                                                                                  
|Written options                                                                                          
|Foreign currency                                                                                         
|Swaps                                                                                                    
|                                                                                                         
|Change in net unrealized appreciation (depreciation) on:Investments                                      
|Futures                                                                                                  
|Written options                                                                                          
|Foreign currency                                                                                         
|Swaps                                                                                                    
|                                                                                                         
|Net gain (loss)                                                                                          
|Net increase (decrease) in net assets resulting from operations                                          

The accompanying notes are an integral part of the financial statements.

|Statement of Changes in Net Assets                                                                                     
|-----------------------------------------------------------------------------------------------------------------------
|Increase (Decrease) in Net Assets                                                                                      
|Operations:Net investment income                                                                                       
|Net realized gain (loss)                                                                                               
|Change in net unrealized appreciation (depreciation)                                                                   
|Net increase (decrease) in net assets resulting from
operations                                                        
|Distributions to shareholders from:Net investment income:Class A                                                       
|Class B                                                                                                                
|Class C                                                                                                                
|Class S                                                                                                                
|Institutional Class                                                                                                    
|Tax return of capital:Class A                                                                                          
|Class B                                                                                                                
|Class C                                                                                                                
|Class S                                                                                                                
|Institutional Class                                                                                                    
|Total distributions                                                                                                    
|Fund share transactions:Proceeds from shares sold                                                                      
|Reinvestment of distributions                                                                                          
|Cost of shares redeemed                                                                                                
|Redemption fees                                                                                                        
|Net increase (decrease) in net assets from Fund share
and paid-in capital transactions                                 
|Increase (decrease) in net assets                                                                                      
|Net assets at beginning of period                                                                                      
|Net assets at end of period (including undistributed net
investment income of $9,668,761 and $14,302,506,
respectively)

The accompanying notes are an integral part of the financial statements.

Financial Highlights

|Class A
Years Ended October 31,                                                                                                                                                                                                                                                                               | 2009a     | 2008      | 2007      | 2006      | 2005      | 2004     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                      
|Net asset value, beginning
of period                                                                                                                                                                                                                                                                          | $    8.08 | $    8.36 | $    8.39 | $    8.41 | $    8.66 | $    8.62
|Income from investment
operations:
Net investment incomeb                                                                                                                                                                                                                                                     | .17       | .39       | .39       | .36       | .32       | .28      
|Net realized and unrealized
gain (loss)                                                                                                                                                                                                                                                                       | .49       | (.25)     | (.00)***  | .02       | (.21)     | .09      
|Total from investment
operations                                                                                                                                                                                                                                                                              | .66       | .14       | .39       | .38       | .11       | .37      
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                | (.19)     | (.39)     | (.42)     | (.40)     | (.36)     | (.33)    
|Tax return of capital                                                                                                                                                                                                                                                                                         |          | (.03)     |          |          |          |         
|Total distributions                                                                                                                                                                                                                                                                                           | (.19)     | (.42)     | (.42)     | (.40)     | (.36)     | (.33)    
|Redemption fees                                                                                                                                                                                                                                                                                               | .00***    | .00***    | .00***    | .00***    | .00***    |         
|Net asset value, end of period                                                                                                                                                                                                                                                                                | $    8.55 | $    8.08 | $    8.36 | $    8.39 | $    8.41 | $    8.66
|Total Return (%)c                                                                                                                                                                                                                                                                                             | 8.28**    | 1.60d     | 4.78d     | 4.59      | 1.25      | 4.28     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                           
|Net assets, end of period
($ millions)                                                                                                                                                                                                                                                                        | 1,852     | 1,794     | 1,982     | 2,196     | 2,532     | 2,877    
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                                                                                                               | .83*      | .83       | .82       | .85       | .81       | .83      
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                                                                                                                | .83*      | .83       | .82       | .85       | .81       | .83      
|Ratio of net investment income (%)                                                                                                                                                                                                                                                                            | 4.16*     | 4.63      | 4.63      | 4.33      | 3.76      | 3.22     
|Portfolio turnover rate (%)                                                                                                                                                                                                                                                                                   | 102**     | 186       | 336       | 305       | 312       | 295      
|aFor the six months ended April 30, 2009 (Unaudited).bBased on average shares outstanding during the period.cTotal return does not reflect the effect of any sales charges.dTotal return would have been lower had certain expenses not been reduced.*Annualized**Not annualized***Amount is less than $.005.

|Class B
Years Ended October 31,                                                                                                                                                                                                                                                                               | 2009a     | 2008      | 2007      | 2006      | 2005      | 2004     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                      
|Net asset value, beginning
of period                                                                                                                                                                                                                                                                          | $    8.07 | $    8.35 | $    8.38 | $    8.39 | $    8.64 | $    8.60
|Income from investment
operations:
Net investment incomeb                                                                                                                                                                                                                                                     | .14       | .31       | .31       | .28       | .24       | .19      
|Net realized and unrealized
gain (loss)                                                                                                                                                                                                                                                                       | .48       | (.25)     | (.00)***  | .03       | (.22)     | .10      
|Total from investment
operations                                                                                                                                                                                                                                                                              | .62       | .06       | .31       | .31       | .02       | .29      
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                | (.15)     | (.31)     | (.34)     | (.32)     | (.27)     | (.25)    
|Tax return of capital                                                                                                                                                                                                                                                                                         |          | (.03)     |          |          |          |         
|Total distributions                                                                                                                                                                                                                                                                                           | (.15)     | (.34)     | (.34)     | (.32)     | (.27)     | (.25)    
|Redemption fees                                                                                                                                                                                                                                                                                               | .00***    | .00***    | .00***    | .00***    | .00***    |         
|Net asset value, end of period                                                                                                                                                                                                                                                                                | $    8.54 | $    8.07 | $    8.35 | $    8.38 | $    8.39 | $    8.64
|Total Return (%)c                                                                                                                                                                                                                                                                                             | 7.66d**   | .79d      | 3.80d     | 3.76d     | .25       | 3.31d    
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                           
|Net assets, end of period
($ millions)                                                                                                                                                                                                                                                                        | 18        | 23        | 36        | 57        | 82        | 126      
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                                                                                                               | 1.79*     | 1.76      | 1.72      | 1.83      | 1.72      | 1.88     
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                                                                                                                | 1.71*     | 1.74      | 1.71      | 1.75      | 1.72      | 1.81     
|Ratio of net investment income (%)                                                                                                                                                                                                                                                                            | 3.28*     | 3.72      | 3.74      | 3.43      | 2.85      | 2.24     
|Portfolio turnover rate (%)                                                                                                                                                                                                                                                                                   | 102**     | 186       | 336       | 305       | 312       | 295      
|aFor the six months ended April 30, 2009 (Unaudited).bBased on average shares outstanding during the period.cTotal return does not reflect the effect of any sales charges.dTotal return would have been lower had certain expenses not been reduced.*Annualized**Not annualized***Amount is less than $.005.

|Class C
Years Ended October 31,                                                                                                                                                                                                                                                                               | 2009a     | 2008      | 2007      | 2006      | 2005      | 2004     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                      
|Net asset value, beginning
of period                                                                                                                                                                                                                                                                          | $    8.09 | $    8.37 | $    8.41 | $    8.42 | $    8.67 | $    8.63
|Income from investment
operations:
Net investment incomeb                                                                                                                                                                                                                                                     | .14       | .32       | .32       | .29       | .25       | .20      
|Net realized and unrealized
gain (loss)                                                                                                                                                                                                                                                                       | .49       | (.25)     | (.00)***  | .03       | (.22)     | .10      
|Total from investment
operations                                                                                                                                                                                                                                                                              | .63       | .07       | .32       | .32       | .03       | .30      
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                | (.16)     | (.32)     | (.36)     | (.33)     | (.28)     | (.26)    
|Tax return of capital                                                                                                                                                                                                                                                                                         |          | (.03)     |          |          |          |         
|Total distributions                                                                                                                                                                                                                                                                                           | (.16)     | (.35)     | (.36)     | (.33)     | (.28)     | (.26)    
|Redemption fees                                                                                                                                                                                                                                                                                               | .00***    | .00***    | .00***    | .00***    | .00***    |         
|Net asset value, end of period                                                                                                                                                                                                                                                                                | $    8.56 | $    8.09 | $    8.37 | $    8.41 | $    8.42 | $    8.67
|Total Return (%)c                                                                                                                                                                                                                                                                                             | 7.84**    | .78d      | 3.85d     | 3.88      | .34       | 3.50     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                           
|Net assets, end of period
($ millions)                                                                                                                                                                                                                                                                        | 61        | 51        | 39        | 41        | 54        | 65       
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                                                                                                               | 1.61*     | 1.63      | 1.64      | 1.61      | 1.63      | 1.75     
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                                                                                                                | 1.61*     | 1.62      | 1.63      | 1.61      | 1.63      | 1.75     
|Ratio of net investment income (%)                                                                                                                                                                                                                                                                            | 3.38*     | 3.84      | 3.82      | 3.57      | 2.94      | 2.30     
|Portfolio turnover rate (%)                                                                                                                                                                                                                                                                                   | 102**     | 186       | 336       | 305       | 312       | 295      
|aFor the six months ended April 30, 2009 (Unaudited).bBased on average shares outstanding during the period.cTotal return does not reflect the effect of any sales charges.dTotal return would have been lower had certain expenses not been reduced.*Annualized**Not annualized***Amount is less than $.005.

|Class S
Years Ended October 31,                                                                                                                                                                                                                                                                                                                   | 2009a     | 2008      | 2007      | 2006      | 2005b    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                                                                                                                          
|Net asset value, beginning of period                                                                                                                                                                                                                                                                                                              | $    8.08 | $    8.36 | $    8.39 | $    8.41 | $    8.53
|Income from investment operations:
Net investment incomec                                                                                                                                                                                                                                                                                         | .18       | .41       | .40       | .37       | .09      
|Net realized and unrealized gain (loss)                                                                                                                                                                                                                                                                                                           | .49       | (.26)     | (.00)***  | .02       | (.12)    
|Total from investment operations                                                                                                                                                                                                                                                                                                                  | .67       | .15       | .40       | .39       | (.03)    
|Less distributions from:
Net investment income                                                                                                                                                                                                                                                                                                    | (.20)     | (.40)     | (.43)     | (.41)     | (.09)    
|Tax return of capital                                                                                                                                                                                                                                                                                                                             |          | (.03)     |          |          |         
|Total distributions                                                                                                                                                                                                                                                                                                                               | (.20)     | (.43)     | (.43)     | (.41)     | (.09)    
|Redemption fees***                                                                                                                                                                                                                                                                                                                                | .00       | .00       | .00       | .00       | .00      
|Net asset value, end of period                                                                                                                                                                                                                                                                                                                    | $    8.55 | $    8.08 | $    8.36 | $    8.39 | $    8.41
|Total Return (%)                                                                                                                                                                                                                                                                                                                                  | 8.37**    | 1.78d     | 4.83d     | 4.92d     | (.33)**  
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                                                                                                                               
|Net assets, end of period ($ millions)                                                                                                                                                                                                                                                                                                            | 84        | 79        | 80        | 91        | 124      
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                                                                                                                                                   | .66*      | .65       | .66       | .73       | .59*     
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                                                                                                                                                    | .66*      | .64       | .65       | .69       | .59*     
|Ratio of net investment income (%)                                                                                                                                                                                                                                                                                                                | 4.33*     | 4.82      | 4.79      | 4.49      | 4.09*    
|Portfolio turnover rate (%)                                                                                                                                                                                                                                                                                                                       | 102**     | 186       | 336       | 305       | 312      
|aFor the six months ended April 30, 2009 (Unaudited).bFor the period August 1, 2005 (commencement of operations for Class S shares) to
October 31, 2005.cBased on average shares outstanding during the period.dTotal return would have been lower had certain expenses not been reduced.*Annualized**Not annualized***Amount is less than $.005.

|Institutional Class
Years Ended October 31,                                                                                                                                                                                                    | 2009a     | 2008      | 2007      | 2006      | 2005      | 2004     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | --------- | --------- | ---------
|Selected Per Share Data                                                                                                                                                                                                                       
|Net asset value, beginning
of period                                                                                                                                                                                                           | $    8.07 | $    8.35 | $    8.39 | $    8.39 | $    8.64 | $    8.61
|Income from investment
operations:
Net investment incomeb                                                                                                                                                                                      | .18       | .41       | .40       | .39       | .33       | .29      
|Net realized and unrealized
gain (loss)                                                                                                                                                                                                        | .49       | (.26)     | (.00)***  | .02       | (.21)     | .09      
|Total from investment
operations                                                                                                                                                                                                               | .67       | .15       | .40       | .41       | .12       | .38      
|Less distributions from:
Net investment income                                                                                                                                                                                                 | (.20)     | (.40)     | (.44)     | (.41)     | (.37)     | (.35)    
|Tax return of capital                                                                                                                                                                                                                          |          | (.03)     |          |          |          |         
|Total distributions                                                                                                                                                                                                                            | (.20)     | (.43)     | (.44)     | (.41)     | (.37)     | (.35)    
|Redemption fees                                                                                                                                                                                                                                | .00***    | .00***    | .00***    | .00***    | .00***    |         
|Net asset value, end of period                                                                                                                                                                                                                 | $    8.54 | $    8.07 | $    8.35 | $    8.39 | $    8.39 | $    8.64
|Total Return (%)                                                                                                                                                                                                                               | 8.37**    | 1.75c     | 4.94c     | 5.00      | 1.37c     | 4.48c    
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                                            
|Net assets, end of period
($ millions)                                                                                                                                                                                                         | .49       | .37       | .19       | .11       | .23       | .17      
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                                                | .59*      | .65       | .81       | .50       | 1.52      | 1.59     
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                                                 | .59*      | .65       | .67       | .50       | .70       | .71      
|Ratio of net investment income (%)                                                                                                                                                                                                             | 4.40*     | 4.81      | 4.78      | 4.68      | 3.87      | 3.34     
|Portfolio turnover rate (%)                                                                                                                                                                                                                    | 102**     | 186       | 336       | 305       | 312       | 295      
|aFor the six months ended April 30, 2009 (Unaudited).bBased on average shares outstanding during the period.cTotal return would have been lower had certain expenses not been reduced.*Annualized**Not annualized***Amount is less than $.005.

Notes to Financial Statements(Unaudited)

A. Significant Accounting Policies

DWS Strategic Government Securities Fund (the ``Fund''), is registered
under the Investment Company Act of 1940, as amended (the ``1940 Act''),
as an open-end, diversified management investment company organized as
a Massachusetts business trust.

The Fund offers multiple classes of shares which provide investors with
different purchase options. Class A shares are offered to investors subject to
an initial sales charge. Class B shares are offered to investors without an
initial sales charge but are subject to higher ongoing expenses than Class A
shares and a contingent deferred sales charge payable upon certain
redemptions. Class B shares automatically convert to Class A shares six
years after issuance. Class C shares are offered to investors without an
initial sales charge but are subject to higher ongoing expenses than Class A
shares and a contingent deferred sales charge payable upon certain
redemptions within one year of purchase. Class C shares do not
automatically convert into another class. Institutional Class shares are
offered to a limited group of investors, are not subject to initial or contingent
deferred sales charges and have lower ongoing expenses than other
classes. Class S shares are not subject to initial or contingent deferred sales
charges and are generally not available to new investors except under
certain circumstances.

Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on
the basis of relative net assets by the holders of all classes of shares,
except that each class bears certain expenses unique to that class such as
services to shareholders, distribution and service fees and certain other
class-specific expenses. Differences in class-level expenses may result in
payment of different per share dividends by class. All shares of the Fund
have equal rights with respect to voting subject to class-specific
arrangements.

The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America which require
the use of management estimates. Actual results could differ from those
estimates. The policies described below are followed consistently by the
Fund in the preparation of its financial statements.

Security Valuation. Investments are stated at value determined as of the
close of regular trading on the New York Stock Exchange on each day the
exchange is open for trading. Debt securities are valued by independent
pricing services approved by the Trustees of the Fund. If the pricing services
are unable to provide valuations, the securities are valued at the most recent
bid quotation or evaluated price, as applicable, obtained from one or more
broker-dealers. Such services may use various pricing techniques which take
into account appropriate factors such as yield, quality, coupon rate, maturity,
type of issue, trading characteristics and other data, as well as broker
quotes.

Money market instruments purchased with an original or remaining maturity
of sixty days or less, maturing at par, are valued at amortized cost.
Investments in open-end investment companies and Cash Management QP
Trust are valued at their net asset value each business day.

Securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to
reflect fair value are valued in a manner that is intended to reflect their fair
value as determined in accordance with procedures approved by the
Trustees. In accordance with the Fund's valuation procedures, factors used
in determining value may include, but are not limited to, the type of the
security, the size of the holding, the initial cost of the security, the existence
of any contractual restrictions on the security's disposition, the price and
extent of public trading in similar securities of the issuer or of comparable
companies, quotations or evaluated prices from broker-dealers and/or pricing
services, information obtained from the issuer, analysts, and/or the
appropriate stock exchange (for exchange-traded securities), an analysis of
the company's financial statements, an evaluation of the forces that
influence the issuer and the market(s) in which the security is purchased
and sold and with respect to debt securities, the maturity, coupon,
creditworthiness, currency denomination, and the movement of the market
in which the security is normally traded. The value determined under these
procedures may differ from published values for the same securities.

The Fund adopted Financial Accounting Standards Board ("FASB")
Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"), effective at the beginning of the Fund's fiscal
year. Disclosure about the classification of fair value measurements is
included at the end of the Fund's Investment Portfolio.

New Accounting Pronouncements. In March 2008, the FASB issued
Statement of Financial Accounting Standards No. 161 ("FAS 161"),
"Disclosures about Derivative Instruments and Hedging Activities". FAS 161
requires enhanced disclosure about an entity's derivative and hedging
activities including qualitative disclosures about the objectives and
strategies for using derivatives, quantitative disclosures about fair value
amounts of gains and losses on derivative instruments, and disclosures
about credit-risk-related contingent features in derivative agreements. FAS
161 is effective for fiscal years and interim periods beginning after
November 15, 2008. Management is currently reviewing the enhanced
disclosure requirements for the adoption of FAS 161.

In addition, in April 2009, FASB issued FASB Staff Position No. 157-4,
"Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly" ("FSP 157-4"). FSP 157-4 provides additional
guidance for estimating fair value in accordance with FAS 157, when the
volume and level of activity for the asset or liability have significantly
decreased as well as guidance on identifying circumstances that indicate a
transaction is not orderly. FSP 157-4 is effective for fiscal years and interim
periods ending after June 15, 2009. Management is currently reviewing the
enhanced disclosure requirements for the adoption of FSP 157-4.

Securities Lending. The Fund may lend securities to financial institutions.
The Fund retains beneficial ownership of the securities it has loaned and
continues to receive interest and dividends paid by the issuer of securities
and to participate in any changes in their market value. The Fund requires
the borrowers of the securities to maintain collateral with the Fund
consisting of liquid, unencumbered assets having a value at least equal to
the value of the securities loaned. When the collateral falls below specified
amounts, the lending agents will use their best efforts to obtain additional
collateral on the next business day to meet required amounts under the
security lending agreement. The Fund may invest the cash collateral into a
joint trading account in an affiliated money market fund pursuant to
Exemptive Orders issued by the SEC. The Fund receives compensation for
lending its securities either in the form of fees or by earning interest on
invested cash collateral net of borrower rebates and fees paid to a lending
agent. Either the Fund or the borrower may terminate the loan. There may
be risks of delay and costs in recovery of securities or even loss of rights in
the collateral should the borrower of the securities fail financially. The Fund
is also subject to all investment risks associated with the reinvestment of
any cash collateral received, including, but not limited to, interest rate, credit
and liquidity risk associated with such investments.

Options. An option contract is a contract in which the writer (seller) of the
option grants the buyer of the option, upon payment of a premium, the right
to purchase from (call option), or sell to (put option), the writer a designated
instrument at a specified price within a specified period of time. Certain
options, including options on indices, will require cash settlement by the
Fund if the option is exercised. The Fund may enter into options on interest
rate swaps. The Fund may enter into option contracts in order to hedge
against potential adverse price movements in the value of portfolio assets;
as a temporary substitute for selling selected investments; to lock in the
purchase price of a security or currency which it expects to purchase in the
near future; as a temporary substitute for purchasing selected investments;
and to enhance potential gain.

The liability representing the Fund's obligation under an exchange traded
written option or investment in a purchased option is valued at the last sale
price or, in the absence of a sale, the mean between the closing bid and
asked prices or at the most recent asked price (bid for purchased options) if
no bid and asked prices are available. Over-the-counter written or purchased
options are valued by an independent pricing service or if an independent
pricing service is unable to provide, using quotations supplied by the
counterparty. Gain or loss is recognized when the option contract expires or
is closed.

If the Fund writes a covered call option, the Fund foregoes, in exchange for
the premium, the opportunity to profit during the option period from an
increase in the market value of the underlying security above the exercise
price. If the Fund writes a put option it accepts the risk of a decline in the
market value of the underlying security below the exercise price.
Over-the-counter options have the risk of the potential inability of
counterparties to meet the terms of their contracts. The Fund's maximum
exposure to purchased options is limited to the premium initially paid. In
addition, certain risks may arise upon entering into option contracts
including the risk that an illiquid secondary market will limit the Fund's ability
to close out an option contract prior to the expiration date and that a change
in the value of the option contract may not correlate exactly with changes in
the value of the securities or currencies hedged.

Total Return Swap Contracts. Total return swaps involve commitments to
pay interest in exchange for a market-linked return based on a notional
amount. The Fund may enter into total return swap transactions to hedge
against market and interest rate risk or to enhance returns. To the extent the
total return of the reference security or index underlying the total return
swap exceeds or falls short of the offsetting interest rate obligation, the
Fund will receive a payment or make a payment to the counterparty,
respectively. Certain risks may arise when entering into swap transactions
including counterparty default, liquidity or unfavorable changes in the value
of underlying reference security or index. Payments received or made at the
end of each measurement period are recorded as realized gain or loss on
the Statement of Operations. The value of the swap is adjusted daily based
upon a price supplied by a board approved pricing vendor and the change in
value is recorded as unrealized appreciation or depreciation.

Interest Rate Swap Contracts. The Fund may enter into interest rate swap
transactions to reduce the interest rate risk inherent in the Fund's

underlying investments and to manage the duration of the Fund. The use of
interest rate swaps is a highly specialized activity that involves investment
techniques and risks different from those associated with ordinary portfolio
security transactions. In an interest rate swap, the Fund would agree to pay
to the other party to the interest rate swap (which is known as the
"counterparty") a fixed rate payment in exchange for the counterparty
agreeing to pay to the Fund a variable rate payment, or the Fund would
agree to receive from the counterparty a fixed rate payment in exchange for
the counterparty agreeing to receive from the Fund a variable rate payment,
the accruals for which would begin at a specified date in the future (the
"effective date"). The payment obligations would be based on the notional
amount of the swap. Certain risks may arise when entering into swap
transactions including counterparty default, liquidity or unfavorable changes
in interest rates. In connection with these agreements, securities and or
cash may be identified as collateral in accordance with the terms of the
swap agreements to provide assets of value and recourse in the event of
default. Payments received or made are recorded as realized gain or loss in
the Statement of Operations. The value of the swap is adjusted daily based
upon a price supplied by a board approved pricing vendor and the change in
value is recorded as unrealized appreciation or depreciation.

Futures Contracts. A futures contract is an agreement between a buyer or
seller and an established futures exchange or its clearinghouse in which the
buyer or seller agrees to take or make a delivery of a specific amount of a
financial instrument at a specified price on a specific date (settlement date).
The Fund may utilize futures as part of the Fund's global tactical asset
allocation overlay strategy and as an efficient means of managing allocations
between asset classes or to keep cash on hand to meet shareholder
redemptions or other needs while maintaining exposure to the market.

Upon entering into a futures contract, the Fund is required to deposit with a
financial intermediary an amount (``initial margin'') equal to a certain
percentage of the face value indicated in the futures contract. Subsequent
payments (``variation margin'') are made or received by the Fund dependent
upon the daily fluctuations in the value of the underlying security and are
recorded for financial reporting purposes as unrealized gains or losses by
the Fund. When entering into a closing transaction, the Fund will realize a
gain or loss equal to the difference between the value of the futures
contract to sell and the futures contract to buy. Futures contracts are valued
at the most recent settlement price.

Certain risks may arise upon entering into futures contracts, including the
risk that an illiquid secondary market will limit the Fund's ability to close

out a futures contract prior to the settlement date and that a change in the
value of a futures contract may not correlate exactly with the changes in the
value of the securities or currencies hedged. When utilizing futures
contracts to hedge, the Fund gives up the opportunity to profit from
favorable price movements in the hedged positions during the term of the
contract. Risk of loss may exceed amounts recognized on the Statement of
Assets and Liabilities.

Forward Foreign Currency Exchange Contracts.A forward foreign currency
exchange contract ("forward currency contract") is a commitment to
purchase or sell a foreign currency at the settlement date at a negotiated
rate. The Fund may enter into forward currency contracts as part of the
Fund's global tactical asset allocation strategy.

Forward currency contracts are valued at the prevailing forward exchange
rate of the underlying currencies and unrealized gain (loss) is recorded daily.
Sales and purchases of forward currency contracts having the same
settlement date and broker are offset and any gain (loss) is realized on the
date of offset; otherwise, gain (loss) is realized on settlement date. Realized
and unrealized gains and losses which represent the difference between the
value of a forward currency contract to buy and a forward currency contract
to sell are included in net realized and unrealized gain (loss) from foreign
currency related transactions. Certain risks may arise upon entering into
forward currency contracts from the potential inability of counterparties to
meet the terms of their contracts. Additionally, when utilizing forward
currency contracts to hedge, the Fund gives up the opportunity to profit
from favorable exchange rate movements during the term of the contract.

When-Issued/Delayed Delivery Securities. The Fund may purchase
securities with delivery or payment to occur at a later date beyond the
normal settlement period. At the time the Fund enters into a commitment to
purchase a security, the transaction is recorded and the value of the security
is reflected in the net asset value. The price of such security and the date
when the security will be delivered and paid for are fixed at the time the
transaction is negotiated. The value of the security may vary with market
fluctuations. No interest accrues to the Fund until payment takes place. At
the time the Fund enters into this type of transaction it is required to
segregate cash or other liquid assets at least equal to the amount of the
commitment.

Certain risks may arise upon entering into when-issued or delayed delivery
securities from the potential inability of counterparties to meet the terms of
their contracts or if the issuer does not issue the securities due to political,
economic, or other factors. Additionally, losses may arise due to changes in
the value of the underlying securities.

Federal Income Taxes. The Fund's policy is to comply with the requirements
of the Internal Revenue Code, as amended, which are applicable to
regulated investment companies, and to distribute all of its taxable income
to its shareholders.

At October 31, 2008, the Fund had a net tax basis capital loss carryforward
of approximately $99,404,000, which may be applied against any realized
net taxable capital gains of each succeeding year until fully utilized
October 31, 2011 ($31,950,000), October 31, 2012 ($8,994,000), October
31, 2013 ($21,430,000), October 31, 2014 ($32,163,000) and October 31,
2015 ($4,867,000), the respective expiration dates, whichever occurs first.

The Fund has reviewed the tax positions for the open tax years as of
October 31, 2008 and has determined that no provision for income tax is
required in the Fund's financial statements. The Fund's federal tax returns
for the prior three fiscal years remain subject to examination by the Internal
Revenue Service.

Distribution of Income and Gains. Net investment income of the Fund, is
declared and distributed to shareholders monthly. Net realized gains from
investment transactions, in excess of available capital loss carryforwards,
would be taxable to the Fund if not distributed, and, therefore, will be
distributed to shareholders at least annually.

The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from accounting principles generally accepted
in the United States of America. These differences primarily relate to
investments in futures, forward currency contracts, recognition of certain
currency gain (loss) as ordinary income, mortgage backed securities,
premium amortization on debt securities and certain securities sold
at a loss. As a result, net investment income (loss) and net realized gain
(loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. Accordingly, the Fund
may periodically make reclassifications among certain of its capital accounts
without impacting the net asset value of the Fund.

The tax character of current year distributions will be determined at the end
of the current fiscal year.

Redemption Fees. During the period, the Fund imposed a redemption fee of
2% of the total redemption amount on the Fund shares redeemed or
exchanged within 15 days of buying them, either by purchase or exchange.
This fee was assessed and retained by the Fund for the benefit of the
remaining shareholders. The redemption fee was accounted for as an
addition to paid-in capital. Effective June 1, 2009, the Fund no longer
imposes the 2% redemption fee.

Contingencies. In the normal course of business, the Fund may enter into
contracts with service providers that contain general indemnification
clauses. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the
Fund that have not yet been made. However, based on experience, the Fund
expects the risk of loss to be remote.

Other. Investment transactions are accounted for on a trade date plus one
basis for daily net asset value calculations. However, for financial reporting
purposes, investment security transactions are reported on trade date.
Interest income is recorded on the accrual basis. Realized gains and losses
from investment transactions are recorded on an identified cost basis. All
premiums and discounts are amortized/accreted for financial reporting
purposes.

B. Purchases and Sales of Securities

During the six months ended April 30, 2009, purchases and sales of
investment securities (excluding short-term investments and US Treasury
obligations) aggregated $1,934,902,897 and $2,078,195,329, respectively.
Purchases and sales of US Treasury obligations aggregated $85,173,493 and
$98,874,923, respectively.

For the six months ended April 30, 2009, transactions for written options on
interest rate swaps and securities were as follows:

|                                 | Number of
Contracts | Premium          
|-------------------------------- | ------------------- | -----------------
|Outstanding, beginning of period | 598,000,000         | $       4,673,331
|Options written                  | 1,050,000,000       | 5,991,212        
|Options closed                   | (125,000,000)       | (632,813)        
|Options exercised                | (150,000,000)       | (1,067,383)      
|Options expired                  | (800,000,000)       | (6,271,484)      
|Outstanding, end of period       | 573,000,000         | $    2,692,863   

C. Related Parties

Management Agreement. Under the Investment Management Agreement
with Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the
Advisor directs the investments of the Fund in accordance with its
investment objectives, policies and restrictions. The Advisor determines the
securities, instruments and other contracts relating to investments to be
purchased, sold or entered into by the Fund.

Under the Investment Management Agreement, the Fund pays a monthly
management fee, computed and accrued daily and payable monthly at the
following annual rates:

|First $250 million of the Fund's average daily net assets | .35%
|--------------------------------------------------------- | ----
|Next $750 million of such net assets                      | .33%
|Next $1.5 billion of such net assets                      | .31%
|Next $2.5 billion of such net assets                      | .30%
|Next $2.5 billion of such net assets                      | .28%
|Next $2.5 billion of such net assets                      | .26%
|Next $2.5 billion of such net assets                      | .24%
|Over $12.5 billion of such net assets                     | .22%

Accordingly, for the six months ended April 30, 2009, the management fee
pursuant to the Investment Management Agreement was equivalent to an
annualized effective rate of 0.32% of the Fund's average daily net assets.

For the period from November 1, 2008 through September 30, 2009, the
Advisor has contractually agreed to waive all or a portion of its management
fee and reimburse or pay certain operating expenses of the Fund (excluding
certain expenses such as extraordinary expenses, taxes, brokerage and
interest) to the extent necessary to maintain the operating expenses of
Class B shares at 1.71%.

Administration Fee. Pursuant to an Administrative Services Agreement,
DIMA provides most administrative services to the Fund. For all services
provided under the Administrative Services Agreement, the Fund pays the
Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's average
daily net assets, computed and accrued daily and payable monthly. For the
six months ended April 30, 2009, the Administration Fee was $992,274, of
which $165,935 is unpaid.

Service Provider Fees. DWS Investments Service Company ("DISC"), an
affiliate of the Advisor, is the transfer agent, dividend-paying agent and
shareholder service agent of the Fund. Pursuant to a sub-transfer agency
agreement between DISC and DST Systems, Inc. ("DST"), DISC has
delegated certain transfer agent, dividend-paying agent and shareholder
service agent functions to DST. DISC compensates DST out of the
shareholders servicing fee it receives from the Fund. For the six months
ended April 30, 2009, the amounts charged to the Fund by DISC were as
follows:

|Services to Shareholders | Total
Aggregated | Waived     | Unpaid at
April 30, 2009
|------------------------ | ---------------- | ---------- | ------------------------
|Class A                  | $       978,761  | $         | $       310,879         
|Class B                  | 30,079           | 8,542      | 6,928                   
|Class C                  | 33,274           |           | 10,360                  
|Class S                  | 61,948           |           | 19,108                  
|Institutional Class      | 185              |           | 61                      
|                         | $    1,104,247   | $    8,542 | $    347,336            

Distribution and Service Fees. Under the Fund's Class B and Class C 12b-1
plans, DWS Investments Distributors, Inc., ("DIDI"), an affiliate of the
Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net
assets of each of Class B and Class C shares. In accordance with the Fund's
Underwriting and Distribution Services Agreement, DIDI enters into related
selling group agreements with various firms at various rates for sales of
Class B and C shares. For the six months ended April 30, 2009, the
Distribution Fee was as follows:

|Distribution Fee | Total
Aggregated | Unpaid at
April 30, 2009
|---------------- | ---------------- | ------------------------
|Class B          | $       77,577   | $       12,627          
|Class C          | 211,886          | 37,617                  
|                 | $    289,463     | $    50,244             

In addition, DIDI provides information and administrative services for a fee
("Service Fee") to Class A, B and C shareholders at an annual rate of up to
0.25% of average daily net assets for each such class. DIDI in turn has
various agreements with financial services firms that provide these services
and pays these fees based upon the assets of shareholder accounts the
firms service. For the six months ended April 30, 2009, the Service Fee was
as follows:

|Service Fee | Total
Aggregated  | Unpaid at
April 30, 2009 | Annualized
Effective Rate
|----------- | ----------------- | ------------------------ | -------------------------
|Class A     | $       2,050,508 | $       671,433          | .22%                     
|Class B     | 25,231            | 7,954                    | .24%                     
|Class C     | 70,555            | 25,454                   | .25%                     
|            | $    2,146,294    | $    704,841             |                          

Underwriting and Contingent Deferred Sales Charge. DIDI is the principal
underwriter for the Fund. Underwriting commissions paid in connection
with the distribution of Class A shares for the six months ended April 30,
2009 aggregated $50,007.

In addition, DIDI receives any contingent deferred sales charge ("CDSC")
from Class B share redemptions occurring within six years of purchase and
Class C share redemptions occurring within one year of purchase. There is
no such charge upon redemption of any share appreciation or reinvested
dividends. The CDSC is based on declining rates ranging from 4% to 1% for
Class B and 1% for Class C, of the value of the shares redeemed. For the
six months ended April 30, 2009, the CDSC for Class B and C shares
aggregated $19,944 and $3,382, respectively. A deferred sales charge of up
to 0.85% is assessed on certain redemptions of Class A shares. For the six
months ended April 30, 2009, DIDI received $627 for Class A shares.

Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA
is compensated for providing typesetting and certain regulatory filing
services to the Fund. For the six months ended April 30, 2009, the amount
charged to the Fund by DIMA included in the Statement of Operations
under "reports to shareholders" aggregated $15,935, of which $2,284 is
unpaid.

Trustees' Fees and Expenses. The Fund paid each Trustee not affiliated with
the Advisor retainer fees plus specified amounts for various committee
services and for the Board Chairperson.

Cash Management QP Trust. Pursuant to an Exemptive Order issued by the
SEC, the Fund may invest in the Cash Management QP Trust (the
"QP Trust") and other affiliated funds managed by the Advisor. The QP Trust
seeks to provide as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. The QP Trust does
not pay the Advisor a management fee for the affiliated funds' investments
in the QP Trust.

D. Fee Reductions

The Fund has entered into an arrangement with its custodian whereby
credits realized as a result of uninvested cash balances are used to reduce a
portion of the Fund's custodian expenses. During the six months ended
April 30, 2009, the Fund's custodian fee was reduced by $9 for custody
credit earned.

E. Line of Credit

The Fund and other affiliated funds (the "Participants") share in a
$450 million revolving credit facility provided by a syndication of banks. The
Fund may borrow for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual
commitment fee which is allocated based on net assets, among each of the
Participants. Interest is calculated at a rate per annum equal to the sum of
the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal
Funds Rate the amount of such excess. The Fund may borrow up to a
maximum of 33 percent of its net assets under the agreement.

F. Share Transactions

The following table summarizes share and dollar activity of the Fund:

|                                           | Six Months Ended April 30, 2009 | Year Ended October 31, 2008
|------------------------------------------ | ------------------------------- | ---------------------------
|                                           | Shares                          | Dollars                    
|Shares sold                               
|Class A                                    | 7,564,878                       | $       63,518,970         
|Class B                                    | 346,661                         | 2,909,544                  
|Class C                                    | 1,865,642                       | 15,677,513                 
|Class S                                    | 656,830                         | 5,509,750                  
|Institutional Class                        | 9,590                           | 81,170                     
|                                           |                                 | $    87,696,947            
|Shares issued in reinvestment of dividends
|Class A                                    | 3,758,756                       | $       31,501,069         
|Class B                                    | 38,347                          | 320,807                    
|Class C                                    | 78,217                          | 656,840                    
|Class S                                    | 152,915                         | 1,282,425                  
|Institutional Class                        | 1,170                           | 9,801                      
|                                           |                                 | $    33,770,942            
|Shares redeemed                           
|Class A                                    | (16,668,940)                    | $       (139,838,888)      
|Class B                                    | (1,057,765)                     | (8,891,630)                
|Class C                                    | (1,082,943)                     | (9,112,968)                
|Class S                                    | (762,516)                       | (6,411,380)                
|Institutional Class                        |                                |                           
|                                           |                                 | $    (164,254,866)         
|Redemption fees                            |                                 | $    19,300                
|Net increase (decrease)                   
|Class A                                    | (5,345,306)                     | $       (44,803,665)       
|Class B                                    | (672,757)                       | (5,660,105)                
|Class C                                    | 860,916                         | 7,222,325                  
|Class S                                    | 47,229                          | 382,797                    
|Institutional Class                        | 10,760                          | 90,971                     
|                                           |                                 | $    (42,767,677)          

Summary of Management Fee Evaluation by
Independent Fee Consultant

October 24, 2008

Pursuant to an Order entered into by Deutsche Investment Management
Americas and affiliates (collectively, "DeAM") with the Attorney General of
New York, I, Thomas H. Mack, have been appointed the Independent Fee
Consultant for the DWS Funds (formerly the DWS Scudder Funds). My
duties include preparing an annual written evaluation of the management
fees DeAM charges the Funds, considering among other factors the
management fees charged by other mutual fund companies for like
services, management fees DeAM charges other clients for like services,
DeAM's costs of supplying services under the management agreements
and related profit margins, possible economies of scale if a Fund grows
larger, and the nature and quality of DeAM's services, including fund
performance. This report summarizes my evaluation for 2008, including my
qualifications, the evaluation process for each of the DWS Funds,
consideration of certain complex-level factors, and my conclusions. I served
in substantially the same capacity in 2007.

Qualifications

For more than 35 years I have served in various professional capacities
within the investment management business. I have held investment
analysis and advisory positions, including securities analyst, portfolio
strategist and director of investment policy with a large investment firm. I
have also performed business management functions, including business
development, financial management and marketing research and analysis.

Since 1991, I have been an independent consultant within the asset
management industry. I have provided services to over 125 client
organizations, including investment managers, mutual fund boards, product
distributors and related organizations. Over the past ten years I have
completed a number of assignments for mutual fund boards, specifically
including assisting boards with management contract renewal.

I hold a Master of Business Administration degree, with highest honors,
from Harvard University and Master of Science and Bachelor of Science
(highest honors) degrees from the University of California at Berkeley. I am
an independent director and audit committee financial expert for two
closed-end mutual funds, serve on the board of directors of a private market
research company, and have served in various leadership and financial
oversight capacities with non-profit organizations.

Evaluation of Fees for each DWS Fund

My work focused primarily on evaluating, fund-by-fund, the fees charged to
each of the 129 Fund portfolios in the DWS Fund family. For each Fund, I
considered each of the key factors mentioned above, as well as any other
relevant information. In doing so I worked closely with the Funds'
Independent Directors in their annual contract renewal process, as well as in
their approval of contracts for several new funds (documented separately).

In evaluating each Fund's fees, I reviewed comprehensive materials provided
by or on behalf of DeAM, including expense information prepared by Lipper
Analytical, comparative performance information, profitability data, manager
histories, and other materials. I also accessed certain additional information
from the Lipper, Strategic Insight, and Morningstar databases and drew on
my industry knowledge and experience.

To facilitate evaluating this considerable body of information, I prepared for
each Fund a document summarizing the key data elements in each area as
well as additional analytics discussed below. This made it possible to
consider each key data element in the context of the others.

In the course of contract renewal, DeAM agreed to implement a number of
fee and expense adjustments requested by the Independent Directors
which will favorably impact future fees and expenses, and my evaluation
includes the effects of these changes.

Fees and Expenses Compared with Other Funds

The competitive fee and expense evaluation for each fund focused on two
primary comparisons:

The Fund's contractual management fee (the advisory fee plus the
administration fee where applicable) compared with those of a group
of typically 12-15 funds in the same Lipper investment category
(e.g. Large Capitalization Growth) having similar distribution arrangements
and being of similar size.

The Fund's total expenses compared with a broader universe of funds
from the same Lipper investment category and having similar distribution
arrangements.

These two comparisons provide a view of not only the level of the fee
compared with funds of similar scale but also the total expense the Fund
bears for all the services it receives, in comparison with the investment
choices available in the Fund's investment category and distribution channel.
The principal figure-of-merit used in these comparisons was the subject
Fund's percentile ranking against peers.

DeAM's Fees for Similar Services to Others

DeAM provided management fee schedules for all of its US domiciled fund
and non-fund investment management accounts in any of the investment
categories where there is a DWS Fund. These similar products included the
other DWS Funds, non-fund pooled accounts, institutional accounts and
sub-advisory accounts. Using this information, I calculated for each Fund the
fee that would be charged to each similar product, at the subject Fund's
asset level.

Evaluating information regarding non-fund products is difficult because there
are varying levels of services required for different types of accounts, with
mutual funds generally requiring considerably more regulatory and
administrative types of service as well as having more frequent cash flows
than other types of accounts. Also, while mutual fund fees for similar fund
products can be expected to be similar, there will be some differences due
to different pricing conditions in different distribution channels (e.g. retail
funds versus those used in variable insurance products), differences in
underlying investment processes and other factors.

Costs and Profit Margins

DeAM provided a detailed profitability analysis for each Fund. After making
some adjustments so that the presentation would be more comparable to
the available industry figures, I reviewed profit margins from investment
management alone, from investment management plus other fund services
(excluding distribution) provided to the Funds by DeAM (principally
shareholder services), and DeAM profits from all sources, including
distribution. A later section comments on overall profitability.

Economies of Scale

Economies of scale  an expected decline in management cost per dollar
of fund assets as fund assets grow  are very rarely quantified and
documented because of inherent difficulties in collecting and analyzing
relevant data. However, in virtually every investment category that I
reviewed, larger funds tend to have lower fees and lower total expenses
than smaller funds. To see how each DWS Fund compares with this industry
observation, I reviewed:

The trend in Fund assets over the last five years and the accompanying
trend in total expenses. This shows if the Fund has grown and, if so,
whether total expense (management fees as well as other expenses)
have declined as a percent of assets.

Whether the Fund has break-points in its management fee schedule, the
extent of the fee reduction built into the schedule and the asset levels
where the breaks take effect, and in the case of a sub-advised Fund how
the Fund's break-points compare with those of the sub-advisory fee
schedule.

How the Fund's contractual fee schedule compares with trends in the
industry data. To accomplish this, I constructed a chart showing how
actual latest-fiscal-year contractual fees of the Fund and of other similar
funds relate to average fund assets, with the subject Fund's contractual
fee schedule superimposed.

Quality of Service  Performance

The quality-of-service evaluation focused on investment performance, which
is the principal result of the investment management service. Each Fund's
performance was reviewed over the past 1, 3, 5 and 10 years, as applicable,
and compared with that of other funds in the same investment category and
with a suitable market index.

In addition, I calculated and reviewed risk-adjusted returns relative to an
index of similar mutual funds' returns and a suitable market index. The
risk-adjusted returns analysis provides a way of determining the extent to
which the Fund's return comparisons are mainly the product of investment
value-added (or lack thereof) or alternatively taking considerably more or less
risk than is typical in its investment category.

I also received and considered the history of portfolio manager changes for
each Fund, as this provided an important context for evaluating the
performance results.

Complex-Level Considerations

While this evaluation was conducted mainly at the individual fund level,
there are some issues relating to the reasonableness of fees that can
alternatively be considered across the whole fund complex:

I reviewed DeAM's profitability analysis for all DWS Funds, with a view
toward determining if the allocation procedures used were reasonable
and how profit levels compared with public data for other investment
managers.

I considered whether DeAM and affiliates receive any significant ancillary
or "fall-out" benefits that should be considered in interpreting the direct
profitability results. These would be situations where serving as the
investment manager of the Funds is beneficial to another part of the
Deutsche Bank organization.

I considered how aggregated DWS Fund expenses had varied over the
years, by asset class and in the context of trends in asset levels.

I reviewed the structure of the DeAM organization, trends in staffing
levels, and information on compensation of investment management and
other professionals compared with industry data.

Findings

Based on the process and analysis discussed above, which included
reviewing a wide range of information from management and external data
sources and considering among other factors the fees DeAM charges other
clients, the fees charged by other fund managers, DeAM's costs and profits
associated with managing the Funds, economies of scale, possible fall-out
benefits, and the nature and quality of services provided, in my opinion the
management fees charged the DWS Funds are reasonable.

sgs_sigmack1Thomas H. Mack

Summary of Administrative Fee Evaluation
by Independent Fee Consultant

September 29, 2008

Pursuant to an Order entered into by Deutsche Asset Management (DeAM)
with the Attorney General of New York, I, Thomas H. Mack, have been
appointed the Independent Fee Consultant for the DWS Funds and have as
part of my duties evaluated the reasonableness of the proposed
management fees to be charged by DeAM to the DWS Funds, taking onto
account a proposal to pass through to the funds certain fund
accounting-related charges in connection with new regulatory requirements.
My evaluation considered the following:

•    While the proposal would alter the services to be provided under the
Administration Agreement, which I consider to be part of fund
management under the Order, it is my opinion that the change in
services is slight and that the scope of prospective services under the
combination of the Advisory and Administration Agreements continues
to be comparable with those typically provided to competitive funds
under their management agreements.

•    While the proposal would increase fund expenses, according to a pro
forma analysis performed by management, the prospective effect is less
than .01% for all but seven of the DeAM Funds' 438 active share
classes, and in all cases the effect is less than .03% and overall
expenses would remain reasonable in my opinion.

Based on the foregoing considerations, in my opinion the fees and expenses
for all of the DWS Funds will remain reasonable if the Directors adopt this
proposal.

sgs_sigmack0Thomas H. Mack

Account Management Resources

|                      
|----------------------
|For More
Information  
|Web Site              
|Written
Correspondence
|Proxy Voting          
|Principal
Underwriter 

|              | Class A    | Class B    | Class C    | Class S    | Institutional
Class
|------------- | ---------- | ---------- | ---------- | ---------- | -------------------
|Nasdaq Symbol | KUSAX      | KUSBX      | KUSCX      | KUSMX      | KUSIX              
|CUSIP Number  | 23338C 108 | 23338C 207 | 23338C 306 | 23338C 405 | 23338C 504         
|Fund Number   | 018        | 218        | 318        | 2098       | 1418               

Privacy Statement

Dear Valued Client:

We want to make sure you know our policy regarding the way in which our
clients' private information is handled at DWS Investments. The following
information is issued by DWS Investments Distributors, Inc., Deutsche
Investment Management Americas Inc., DeAM Investor Services, Inc.,
DWS Trust Company and the DWS Funds.

We consider privacy fundamental to our client relationships and adhere
to the policies and practices described below to protect current and
former clients' information.We never sell customer lists or individual
client information. Internal policies are in place to protect confidentiality,
while allowing client needs to be served. Only individuals who need to do
so in carrying out their job responsibilities may access client information. We
maintain physical, electronic and procedural safeguards that comply with
federal and state standards to protect confidentiality. These safeguards
extend to all forms of interaction with us, including the Internet.

In the normal course of business, clients give us nonpublic personal
information on applications and other forms, on our Web sites, and through
transactions with us or our affiliates. Examples of the nonpublic personal
information collected are name, address, Social Security number, and
transaction and balance information. To be able to serve our clients, certain
of this client information is shared with affiliated and nonaffiliated third party
service providers such as transfer agents, custodians and broker-dealers to
assist us in processing transactions and servicing your account.

In addition, we may disclose the information we collect to companies that
perform marketing services on our behalf or to other financial institutions
with which we have joint marketing agreements. These organizations may
only use client information for the purpose designated by the companies
listed above, and additional requirements beyond federal law may be
imposed by certain states. To the extent that these state laws apply, we will
comply with them before we share information about you.

We may also disclose nonpublic personal information about you to other
parties as required or permitted by law. For example, we are required to or
may provide information to government entities or regulatory bodies in
response to requests for information or subpoenas, to private litigants in
certain circumstances, to law enforcement authorities, or any time we
believe it necessary to protect the firm.

At any time, if you have questions about our policy, please write to us at:

DWS Investments 
Attention: Correspondence  Chicago
P.O. Box 219415
Kansas City, MO  64121-9415     September 2008

Notes

Notes

Notes

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ITEM 2.
        CODE OF ETHICSNot applicable.ITEM 3.
        AUDIT COMMITTEE FINANCIAL EXPERTNot applicable.ITEM 4.
        PRINCIPAL ACCOUNTANT FEES AND SERVICESNot applicable.
  ITEM 5.
        AUDIT COMMITTEE OF LISTED REGISTRANTSNot ApplicableITEM 6.
        SCHEDULE OF INVESTMENTSNot ApplicableITEM 7.
        DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.ITEM 8.
        PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.
  ITEM 9.
        PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERSNot Applicable.
  ITEM 10.
        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSThe primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Chairman of the Board, P.O. Box 100176, Cape Coral, FL 33910.ITEM 11.
        CONTROLS AND PROCEDURES(a)        The Chief Executive and Financial Officers concluded that the Registrants Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.(b)        There have been no changes in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal controls over financial reporting.
   ITEM 12.
        EXHIBITS(a)(1)   Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.(b)       Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.


Form N-CSRS Item F  SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  Registrant:
        DWS Strategic Government Securities Fund
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        July 1, 2009
   Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.  Registrant:
        DWS Strategic Government Securities Fund
  By:
        /s/Michael G. Clark
 Michael G. Clark
 President  Date:
        July 1, 2009
   By:
        /s/Paul Schubert
 Paul Schubert
 Chief Financial Officer and Treasurer  Date:                                        July 1, 2009