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  811-08599

DWS Equity Trust

(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:  03/31

Date of reporting period: 6/30/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of June 30, 2009  (Unaudited)** |
|----------------------|--------------------------------------|

 

**DWS Alternative Asset Allocation Plus Fund**

 

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

**Equity Funds 67.0%**

 
DWS Commodity Securities Fund "Institutional" 

 

11,272,647 

 

36,636,103 

 
DWS Disciplined Market Neutral Fund "Institutional"  

 

7,871,131 

 

74,382,191 

 
DWS Emerging Markets Equity Fund "Institutional"  

 

2,798,749 

 

36,663,616 

 
DWS Gold & Precious Metals Fund "Institutional" 

 

1,137,237 

 

18,173,043 

 
DWS RREEF Global Infrastructure Fund "Institutional"  

 

2,582,550 

 

18,439,410 

 
DWS RREEF Global Real Estate Securities Fund "Institutional"  

 

12,777,635 

 

73,471,399 

 
**Total Equity Funds** (Cost $326,983,818)

 

**257,765,762**

 
 

**Fixed Income - Bond Funds 29.2%**

 
DWS Emerging Markets Fixed Income Fund "Institutional"  

 

4,033,876 

 

37,273,011 

 
DWS Floating Rate Plus Fund "Institutional"  

 

2,284,528 

 

18,664,595 

 
DWS Inflation Protected Plus Fund "Institutional"  

 

6,017,920 

 

56,087,016 

 
**Total Fixed Income - Bond Funds** (Cost $122,063,135)

 

**112,024,622**

 
 

 

 

 

**Fixed Income - Money Market Fund 2.6%**

 
Cash Management QP Trust  (Cost $9,943,136)

 

9,943,136 

 

**9,943,136**

 
 

**Principal****Amount ($)**

 

**Value ($)**

 
 

**Government & Agency Obligation 0.9%**

 
**US Treasury Obligation**

 
US Treasury Bill, 0.15% *, 9/17/2009 (a) (Cost $3,544,784)

 

 

3,546,000 

 

**3,544,603**

 
 

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

 

**Value ($)**

 
**Total Investment Portfolio** (Cost $462,534,873) †

99.7

 

**383,278,123**

 
**Other Assets and Liabilities, Net**

0.3

 

**1,287,635**

 
**Net Assets**

100.0

 

**384,565,758**

 
*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.*

 
***

*Annualized yield at time of purchase; not a coupon rate.*

 
*†*

*The cost for federal income tax purposes was $496,248,345.  At June 30, 2009, net unrealized depreciation for all securities based on tax cost was $112,970,222.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $3,321,788 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $116,292,010.*

 
*(a)*

*At June 30, 2009, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.*

 
 

 

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

 
**Futures**

 

**Expiration****Date**

 

**Contracts**

 

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

 

**Value ($)**

 

**Unrealized****Appreciation/****(Depreciation) ($)**

 
 

 
10 Year Australian Treasury Bond 

 

9/15/2009 

 

54 

 

4,482,879 

 

4,516,966 

 

34,087

 
10 Year US Treasury Note 

 

9/21/2009 

 

147 

 

17,139,646 

 

17,091,048 

 

(48,598)

 
3 Year Australian Treasury Bond 

 

9/15/2009 

 

78 

 

6,524,807 

 

6,502,520 

 

(22,287)

 
AEX Index 

 

7/17/2009 

 

11 

 

806,288 

 

785,301 

 

(20,987)

 
ASX SPI 200 Index 

 

9/17/2009 

 

24 

 

1,944,798 

 

1,886,055 

 

(58,743)

 
Federal Republic of Germany Euro-Schatz 

 

9/8/2009 

 

212 

 

32,029,944 

 

32,089,895 

 

59,951

 
FTSE 100 Index 

 

9/18/2009 

 

60 

 

4,278,670 

 

4,163,671 

 

(114,999)

 
FTSE MIB Index 

 

9/18/2009 

 

4 

 

557,633 

 

535,552 

 

(22,081)

 
Hang Seng Index 

 

7/30/2009 

 

23 

 

2,598,932 

 

2,733,273 

 

134,341

 
IBEX 35 Index 

 

7/17/2009 

 

3 

 

399,350 

 

408,946 

 

9,596

 
S&P 500 E-Mini Index 

 

9/18/2009 

 

95 

 

4,468,088 

 

4,348,625 

 

(119,463)

 
United Kingdom Long Gilt Bond 

 

9/28/2009 

 

45 

 

8,702,911 

 

8,741,932 

 

39,021

 
**Total net unrealized depreciation**

**(130,162)**

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

 
 

 

 

**Futures**

 

 

**Expiration****Date**

 

**Contracts**

 

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

 

**Value ($)**

 

**Unrealized****Appreciation/****(Depreciation) ($)**

 
 

 
10 Year Canadian Government Bond 

 

9/21/2009 

 

8 

 

826,643 

 

834,011 

 

(7,368)

 
10 Year Japanese Government Bond 

 

9/10/2009 

 

14 

 

19,768,724 

 

20,069,549 

 

(300,825)

 
2 Year US Treasury Note 

 

9/30/2009 

 

81 

 

17,557,992 

 

17,513,720 

 

44,272

 
CAC 40 Index 

 

7/17/2009 

 

8 

 

360,532 

 

351,947 

 

8,585

 
DAX Index 

 

9/18/2009 

 

28 

 

4,879,530 

 

4,732,722 

 

146,808

 
DJ Euro Stoxx 50 Index 

 

9/18/2009 

 

13 

 

441,883 

 

437,324 

 

4,559

 
Federal Republic of Germany Euro-Bund 

 

9/8/2009 

 

59 

 

9,832,752 

 

10,021,561 

 

(188,809)

 
NASDAQ E-Mini 100 Index 

 

9/18/2009 

 

61 

 

1,812,005 

 

1,801,025 

 

10,980

 
Russell E-Mini 2000 Index 

 

9/18/2009 

 

61 

 

3,186,030 

 

3,093,920 

 

92,110

 
S&P TSE 60 Index 

 

9/17/2009 

 

6 

 

664,021 

 

646,967 

 

17,054

 
TOPIX Index 

 

9/11/2009 

 

29 

 

2,775,824 

 

2,783,049 

 

(7,225)

 
**Total net unrealized depreciation**

**(179,859)**

 
 

 

 

 

 

 

*At June 30, 2009, the Fund had the following open forward foreign currency exchange contracts:*

 
**Contracts to Deliver**

 

**In Exchange For**

 

**Settlement****Date**

 

**Unrealized****Appreciation ($)**

 
 
USD

1,102,543

 

NZD

1,739,000

 

7/15/2009

 

17,139

 
USD

5,934,104

 

JPY

581,109,000

 

7/15/2009

 

93,053

 
SEK

20,830,000

 

USD

2,729,262

 

7/15/2009

 

35,299

 
NOK

3,738,000

 

USD

591,966

 

7/15/2009

 

11,656

 
EUR

5,116,000

 

USD

7,202,100

 

7/15/2009

 

29,450

 
**Total unrealized appreciation**

 

 

 

 

 

**186,597**

 
 
**Contracts to Deliver**

 

**In Exchange For**

 

**Settlement****Date**

 

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

 
 
USD

3,985,437

 

CAD

4,395,000

 

7/15/2009

 

(204,860)

 
USD

12,677,039

 

CHF

13,623,000

 

7/15/2009

 

(140,589)

 
USD

6,930,308

 

AUD

8,582,000

 

7/15/2009

 

(25,069)

 
GBP

1,911,000

 

USD

3,137,594

 

7/15/2009

 

(5,769)

 
**Total unrealized depreciation**

 

 

 

 

 

**(376,287)**

 
 
 

***Currency Abbreviations*****

 **

 **

*AUD***

*Australian Dollar***

*JPY***

*Japanese Yen***

*CAD***

*Canadian Dollar***

*NOK***

*Norwegian Krone***

*CHF***

*Swiss Franc***

*NZD***

*New Zealand Dollar***

*EUR***

*Euro***

*SEK***

*Swedish Krona***

*GBP***

*British Pound***

*USD***

*United States Dollar*

 

***Fair Value Measurements***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements," as amended, 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 June 30, 2009 in valuing the Fund’s investments.*

 

 

**Level 1**

**Level 2**

**Level 3**

**Total**

**Assets**

 

 

 

Equity Funds

$    257,765,762

$                      —

$                  —

$    257,765,762

Fixed Income – Bond Funds

112,024,622

—

—

112,024,622

Fixed Income – Money Market Fund

—

9,943,136

—

9,943,136

Short-Term Investments (b)

—

3,544,603

—

3,544,603

Derivatives (c)

—

186,597

—

186,597

**Total**

**$   369,790,384**

**$      13,674,336**

**$                 —**

**$  383,464,720**

 

 

 

 

 

**Liabilities**

 

 

 

Derivatives (c)

$       (310,021)

$         (376,287)

$                  — 

$         (686,308)

**Total**

**$       (310,021)**

**$**         (**376,287)**

**$                  —**

$         **(686,308)**

 
*(b)*

*See Investment Portfolio for additional detailed categorizations.*

 
 
*(c)*

*Derivatives include unrealized appreciation (depreciation) on futures contracts and forward foreign currency exchange contracts.*

 
 

*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 June 30, 2009. Please see below for information on the Fund’s policy regarding the objectives and strategies for using futures and forward foreign currency exchange contracts.*

 

 

 

**Primary Underlying Risk Disclosure**

 

 

**Futures**

**Forward Currency Contracts**

Interest Rate Contracts

$        (390,556)

$                      -

Foreign Exchange Contracts

$                      -

$        (189,690)

Equity Contracts

$            80,535

$                      -

 

*Futures.  The Fund seeks to enhance returns by employing a global tactical asset allocation overlay strategy.  The Fund may enter into futures contracts on equity and fixed-income securities, including on financial indices, and security indices and on currency as part of its global tactical asset allocation overlay strategy.  As part of this strategy, the Fund may use futures contracts to take advantage of short-term and medium-term inefficiencies and relative mispricings within the global equity, bond and currency markets.  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 futurescontracts are exchange traded, counterparty risk is minimized as the exchange's clearinghouse acts as the counterparty, and guarantees the futures against default.*

 

*Forward Foreign Currency Exchange Contracts.  The Fund seeks to enhance returns by employing a global tactical asset allocation overlay strategy.  As part of this strategy, the Fund may use forward currency exchange contracts to gain exposure to changes in the value of foreign currencies, and to take advantage of short-term and medium-term mispricings within the currency markets.  Certain risks may arise upon entering into forward currency contracts from the potential inability of counterparties to meet the terms of their contracts.  The maximum counterparty credit risk to the Fund is measured by the current value of the forward currency contract, to the extent that this amount is beneficial to the fund.*

 

 

 

**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 Alternative Asset Allocation Plus Fund, a series of DWS Equity Trust

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

August 17, 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 Alternative Asset Allocation Plus Fund, a series of DWS Equity Trust

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

August 17, 2009

 

 

 

 

 

 

By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

 

 

Date:

August 17, 2009

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