UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANY**

**_______________________________**

Investment Company Act file number  811-642

DWS International Fund, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code:  (212) 454-7190

Date of fiscal year end:  08/31

Date of reporting period: 5/31/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of May 31, 2009  (Unaudited)** |
|----------------------|-------------------------------------|

 

 

**DWS International Value Opportunities Fund**

 

 

|   | **Shares** |   | **Value ($)** |  
 

**Common Stocks 95.8%**

 
**Canada 2.3%**

 
Silver Wheaton Corp.*  

 

15,000 

 

157,800****

 
Yamana Gold, Inc.

 

15,000

 

176,414

 
(Cost $324,888)

 

**334,214**

 
**China 4.0%**

 
China Life Insurance Co., Ltd. "H"  

 

70,000 

 

255,634 

 
China Petroleum & Chemical Corp. "H"  

 

300,000 

 

245,014 

 
Sinopec Shanghai Petrochemical Co., Ltd. "H"*  

 

200,000 

 

74,852 

 
(Cost $568,071)

 

**575,500**

 
 

 

**Denmark 1.3%**

 
A P Moller-Maersk AS "B"  (Cost $214,043)

 

30 

 

**186,518**

 
**Finland 0.7%**

 
Nokia Oyj  (Cost $182,172)

 

7,000 

 

**107,214**

 
**France 8.3%**

 
Carrefour SA  

 

8,000 

 

358,377 

 
Etam  

 

4,000 

 

79,224 

 
PagesJaunes Groupe (a)  

 

22,000 

 

267,492 

 
Sanofi-Aventis  

 

3,000 

 

191,117 

 
Total SA (a)  

 

5,000 

 

289,418 

 
(Cost $1,060,461)

 

**1,185,628**

 
**Germany 23.7%**

 
Allianz SE (Registered) (a)  

 

3,000 

 

295,741 

 
Aurubis AG  

 

5,000 

 

155,175 

 
Bayer AG (a)  

 

4,000 

 

227,767 

 
Custodia Holding AG  

 

60 

 

36,439 

 
Daldrup & Soehne AG*  

 

5,000 

 

161,312 

 
Deutsche Boerse AG (a)  

 

3,000 

 

261,931 

 
Deutsche Telekom AG (Registered)  

 

25,000 

 

287,520 

 
E.ON AG  

 

7,000 

 

247,501 

 
Fresenius SE  

 

5,000 

 

241,262 

 
INTERSEROH SE  

 

2,500 

 

122,129 

 
Merck KGaA  

 

2,000 

 

192,579 

 
Muenchener Rueckversicherungs-Gesellschaft AG (Registered)  

 

2,000 

 

280,618 

 
SAP AG (a)  

 

6,000 

 

258,302 

 
Siemens AG (Registered)  

 

1,500 

 

109,558 

 
Vossloh AG  

 

3,000 

 

334,224 

 
VTG AG*  

 

15,000 

 

186,094 

 
(Cost $4,016,719)

 

**3,398,152**

 
**Greece 1.5%**

 
OPAP SA  (Cost $194,069)

 

7,000 

 

**216,277**

 
**Hong Kong 2.6%**

 
China Mobile Ltd.  

 

27,000 

 

264,019 

 
China Resources Enterprise Ltd.  

 

50,000 

 

110,349 

 
(Cost $342,155)

 

**374,368**

 
**Italy 3.2%**

 
Eni SpA  

 

9,000 

 

217,870 

 
Impregilo SpA (a)  

 

75,000 

 

240,669 

 
(Cost $535,694)

 

**458,539**

 
**Japan 6.5%**

 
Canon, Inc.  

 

7,000 

 

232,401 

 
FANUC Ltd.  

 

2,500 

 

202,029 

 
Komatsu Ltd.  

 

15,000 

 

219,095 

 
Toyota Motor Corp.  

 

7,000 

 

280,419 

 
(Cost $797,409)

 

**933,944**

 
**Luxembourg 1.9%**

 
ArcelorMittal  (Cost $224,155)

 

8,000 

 

**266,562**

 
**Netherlands 5.8%**

 
Crucell NV (ADR)*  

 

11,000 

 

242,550 

 
Royal Dutch Shell PLC "A"  

 

13,000 

 

349,184 

 
 

 

TNT NV  

 

12,300 

 

241,966 

 
(Cost $744,179)

 

**833,700**

 
**Norway 1.5%**

 
StatoilHydro ASA  (Cost $216,642)

 

10,000 

 

**210,670**

 
**Portugal 4.3%**

 
EDP - Energias de Portugal SA  

 

60,000 

 

241,221 

 
Galp Energia, SGPS, SA "B"  

 

24,000 

 

378,064 

 
(Cost $492,828)

 

**619,285**

 
**Russia 1.6%**

 
Gazprom (ADR)  (Cost $438,683)

 

10,000 

 

**230,700**

 
**South Africa 2.6%**

 
Aquarius Platinum Ltd.  

 

48,888 

 

242,931****

 
Gold Fields Ltd. (ADR)

 

10,000

 

135,800

 
(Cost $237,830)

 

**378,731**

 
**Spain 1.8%**

 
Endesa SA  (Cost $231,180)

 

10,000 

 

**260,665**

 
**Sweden 0.3%**

 
Scania AB "A"  (Cost $31,651)

 

4,000 

 

**40,729**

 
**Switzerland 6.6%**

 
Nestle SA (Registered)  

 

8,000 

 

290,708 

 
Novartis AG (Registered)  

 

5,000 

 

199,906 

 
Roche Holding AG (Genusschein)  

 

1,700 

 

231,984 

 
UBS AG (Registered)*  

 

15,000 

 

226,778 

 
(Cost $905,092)

 

**949,376**

 
**United Kingdom 12.0%**

 
Anglo American PLC  

 

10,000 

 

292,707 

 
Babcock International Group PLC  

 

35,000 

 

262,298 

 
BG Group PLC  

 

18,000 

 

329,871 

 
BHP Billiton PLC  

 

12,000 

 

287,479 

 
Centrica PLC  

 

55,000 

 

219,067 

 
Next PLC  

 

7,000 

 

166,525 

 
Vodafone Group PLC  

 

90,000 

 

169,371 

 
(Cost $1,674,644)

 

**1,727,318**

 
**United States 3.3%**

 
CME Group, Inc.  

 

800 

 

257,312 

 
IntercontinentalExchange, Inc.*  

 

2,000 

 

215,580 

 
(Cost $431,453)

 

**472,892**

 
**Total Common Stocks** (Cost $13,864,018)

 

**13,760,982**

 
 

**Preferred Stocks 3.1%**

 
**Germany**

 
Eurokai KGaA  

 

3,500 

 

160,281 

 
Volkswagen AG  

 

4,000 

 

286,172 

 
**Total Preferred Stocks** (Cost $470,805)

 

**446,453**

 
 

 

 

**Contracts**

 

**Value ($)**

 
 

**Call Options Purchased 0.1%**

 
**Germany**

 
Bayer AG, Expiration Date 8/21/09, Strike Price $56.6  (Cost $7,937)

 

30 

 

**11,918**

 
 

**Shares**

 

**Value ($)**

 
 

**Securities Lending Collateral 11.9%**

 
Daily Assets Fund Institutional, 0.53% (b) (c)(Cost $1,712,496)

 

 

1,712,496

 

**1,712,496**

 
 

**Cash Equivalents 0.5%**

 
Cash Management QP Trust, 0.39% (b)(Cost $73,635)

 

 

73,635

 

**73,635**

 
 

**% of****Net Assets**

 

**Value ($)**

 
**Total Investment Portfolio** (Cost $16,128,891) †

111.4

 

**16,005,484**

 
**Other Assets and Liabilities, Net**

(11.4)

 

**(1,640,483)**

 
**Net Assets**

100.0

 

**14,365,001**

 
*For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.*

 
***

*Non-income producing security.*

 
*†*

*The cost for federal income tax purposes was $16,189,108.  At May 31, 2009, net unrealized depreciation for all securities based on tax cost was $183,624.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $1,476,521 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $1,660,145.*

 
*(a)*

*All or a portion of these securities were on loan.  The value of all securities loaned at May 31, 2009 amounted to $1,682,194 which is 11.7% of net assets.*

 
*(b)*

*Affiliated fund managed by Deutsche Investment Management Americas Inc.  The rate shown is the annualized seven-day yield at period end.*

 
*(c)*

*Represents collateral held in connection with securities lending.  Income earned by the Fund is net of borrower rebates.*

 
*ADR: American Depositary Receipt*

 
*At May 31, 2009, open futures contracts sold were as follows:*

 
**Futures**

 

 

**Expiration****Date**

 

**Contracts**

 

**Aggregated****Face****Value ($)**

 

**Value ($)**

 

**Unrealized****Depreciation ($)**

 
 

 
DAX Index 

 

6/19/2009 

 

10 

 

1,651,888 

 

1,744,505

 

**(92,617)**

 
 

 
 

 
 

 
*At May 31, 2009, open written options contracts were as follows:*

 
**Written Options**

 

 

 

**Contract****Amount**

 

**Expiration****Date**

 

**Strike****Price ($)**

 

**Value ($)***

 
**Put Options**

 
Bayer AG  (Premiums received $5,155) 

 

30 

 

8/21/2009 

 

48.1

 

**3,011**

 
***

*Unrealized appreciation at May 31, 2009 was $2,144.*

 
 

 

*At May 31, 2009, the DWS International Value Opportunities Fund had the following sector diversification:*

 

 

**Sector**

**Market Value ($)**

 

**As a % of Common & Preferred Stocks and Options Purchased**

Energy 

 

2,412,103

 

16.9

%

Industrials

 

2,305,590

 

16.2

%

Financials 

 

1,830,033

 

12.9

%

Materials 

 

1,789,720

 

12.6

%

Health Care 

 

1,539,083

 

10.8

%

Consumer Discretionary 

 

1,406,458

 

9.9

%

Utilities 

 

968,454

 

6.8

%

Telecommunication Services 

 

720,910

 

5.1

%

Consumer Staples 

 

649,085

 

4.6

%

Information Technology 

 

597,917

 

4.2

%

**Total**

 

**14,219,353**

 

**100.0**

**%**

 

***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 May 31, 2009 in valuing the Fund's investments:*

 

**Valuation Inputs**

**Investments in  Securities**

**Options Written,       at Value**

**Other Financial Instruments***††*

Level 1 

$                   3,140,569   

$                    (3,011)   

$                   (92,617)   

Level 2 

12,864,915   

-   

-   

Level 3 

-   

-   

-   

**Total**

**$                 16,005,484**

**$                    (3,011)**

**$                   (92,617)**

 

*†† Other financial instruments are derivative instruments not reflected in the Investment Portfolio, such as futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.*

 

 

 

 

 

 

 

 

 

 

***Derivative Instruments and Hedging Activities***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities,” requires enhanced disclosure about an entity’s derivative and hedging activities.*

 

*The following is a summary of the unrealized appreciation (depreciation) of the Fund's derivative instruments categorized by risk exposure as of May 31, 2009. Please see below for information on the Fund’s policy regarding the objectives and strategies for using futures and option contracts.*

 

 

 

 

**Primary Underlying Risk Disclosure**

**Futures**

**Options**

Interest Rate Contracts

$                     -

$                     -

Foreign Exchange Contracts

$                     -

$                     -

Credit Contracts

$                     -

$                     -

Equity Contracts

$          (92,617)

$              2,144

Other Contracts

$                     -

$                     -

 

*Futures.  The Fund is subject to equity risk.  The Fund invests in futures to hedge against anticipated equity market changes.  Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary an 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.   Since all futures contracts are exchange traded, counterparty risk is minimized as the exchange's clearinghouse acts as the counterparty, and guarantees the futures against default.*

 

*Options.  The Fund is subject to equity risk.  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. 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 potentialinability of counterparties to meet the terms of their contracts.  For exchange traded contracts the counterparty risk is minimized as the exchange's clearinghouse acts as the counterparty, and guarantees the futures against default.  The Fund's maximum exposure to purchased options is limited to the premium initially paid.*

**ITEM 2.**

**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 registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

 

**ITEM 3.**

**EXHIBITS**

 

 

 

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.

 

**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 International Value Opportunities Fund, a series of DWS International Fund, Inc.

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

July 20, 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 International Value Opportunities Fund, a series of DWS International Fund, Inc.

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

July 20, 2009

 

 

 

 

 

 

By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

 

 

Date:

July 20, 2009

 

 

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