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  811-2719

DWS Strategic Government Securities Fund

(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:  10/31

Date of reporting period: 1/31/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

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

 

 

**DWS Strategic Government Securities Fund**

 

|   | **Principal****Amount ($)**                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **Value ($)** |
|--------|----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|        |
|   | **Mortgage-Backed Securities Pass-Throughs 83.7%** |  
Federal Home Loan Mortgage Corp.:

 
 

4.5%, with various maturities from 9/1/2018 until 4/1/2019 (a) 

 

 

20,018,619 

 

20,225,237 

 

5.0%, with various maturities from 1/1/2019 until 12/1/2019 

 

 

762,567 

 

784,392 

 

6.5%, with various maturities from 9/1/2032 until 7/1/2035 

 

 

2,500,638 

 

2,605,871 

 

7.0%, 6/1/2032  

 

 

1,466 

 

1,540 

 

8.0%, with various maturities from 2/1/2017 until 7/1/2030 

 

 

21,209 

 

22,131 

 

8.5%, with various maturities from 12/1/2016 until 7/1/2030 

 

 

8,195 

 

8,709 

 

10.25%, 3/1/2016  

 

 

3,799 

 

3,874 

Federal National Mortgage Association:

 
 

5.0%, with various maturities from 12/1/2016 until 5/1/2021 

 

 

6,730,179 

 

6,934,081 

 

5.5%, 5/1/2025  

 

 

2,045,534 

 

2,096,033 

 

6.0%, 8/1/2035  

 

 

1,631,188 

 

1,668,909 

 

6.5%, with various maturities from 7/1/2035 until 1/1/2038 

 

 

10,011,081 

 

10,438,364 

 

 

 

 

8.0%, with various maturities from 9/1/2011 until 12/1/2024 

 

 

155,641 

 

164,221 

 

8.5%, with various maturities from 7/1/2030 until 9/1/2030 

 

 

12,725 

 

13,646 

 

9.0%, with various maturities from 12/1/2016 until 4/1/2030 

 

 

31,781 

 

34,366 

Government National Mortgage Association:

 
 

4.5%, 9/1/2034 (a)

 

 

75,000,000 

 

75,539,063 

 

5.0%, with various maturities from 5/20/2023 until 12/15/2038 (a) (b) 

 

 

254,000,526 

 

258,884,220 

 

5.5%, with various maturities from 12/15/2028 until 1/15/2039 (a) (b) 

 

 

458,736,352 

 

470,548,554 

 

6.0%, with various maturities from 11/15/2023 until 1/15/2039 (a) (b) 

 

 

573,296,359 

 

592,588,401 

 

6.5%, with various maturities from 5/15/2009 until 11/15/2038 (a) 

 

 

118,109,240 

 

123,002,732 

 

7.0%, with various maturities from 4/15/2009 until 11/15/2038 (b) (c) 

 

 

62,929,311 

 

65,977,592 

 

7.5%, with various maturities from 5/15/2009 until 1/15/2037 

 

 

25,980,772 

 

27,494,854 

 

8.0%, 9/15/2014  

 

 

286 

 

292 

 

9.0%, with various maturities from 9/15/2017 until 7/15/2030 

 

 

1,968,592 

 

2,158,504 

 

9.5%, with various maturities from 6/15/2009 until 5/15/2025 

 

 

2,657,233 

 

2,942,886 

 

10.0%, with various maturities from 11/15/2009 until 8/15/2022 

 

 

1,650,544 

 

1,861,705 

 

10.5%, with various maturities from 9/15/2015 until 12/15/2021 

 

 

932,525 

 

1,064,830 

 

11.0%, 4/20/2019  

 

 

2,756 

 

3,172 

**Total Mortgage-Backed Securities Pass-Throughs** (Cost $1,646,418,066)

 

**1,667,068,179**

 

**Collateralized Mortgage Obligations 11.3%**

 
FannieMae Grantor Trust, "A2", Series 2001-T10, 7.5%, 12/25/2041  

 

 

4,665,085 

 

4,817,064 

FannieMae Whole Loan, "3A", Series 2004-W8, 7.5%, 6/25/2044  

 

 

2,544,444 

 

2,592,252 

Federal Home Loan Mortgage Corp.:

 
 

"FT", Series 3346, 0.683% *, 10/15/2033  

 

 

18,574,135 

 

17,896,826 

 

"JF", Series 2704, 0.883% *, 5/15/2023  

 

 

12,219,226 

 

12,011,294 

 

"GZ", Series 2906, 5.0%, 9/15/2034  

 

 

17,163,754 

 

15,337,275 

 

"SL", Series 2882, Interest Only, 6.867% **, 10/15/2034  

 

 

2,765,628 

 

288,459 

Federal Home Loan Mortgage Corp./Government National Mortgage Association, "SC", Series 23, Interest Only, 9.113% **, 11/25/2023  

 

 

2,441,464 

 

337,475 

Federal National Mortgage Association:

 
 

"1", Series 17, Principal Only, Zero Coupon, 5/1/2017  

 

 

1,810 

 

1,712 

 

"F", Series 2004-29, 0.789% *, 5/25/2034  

 

 

872,572 

 

439,409 

 

"21", Series 334, Interest Only, 5.0%, 3/1/2018  

 

 

8,417,575 

 

604,743 

 

''23" Series 339, Interest Only, 5.0%, 8/1/2033

 

 

17,902,441 

 

1,284,480 

 

"ZA", Series 2008-24, 5.0%, 4/25/2038  

 

 

13,030,708 

 

11,072,846 

 

"AN", Series 2007-108, 8.879% *, 11/25/2037  

 

 

18,064,143 

 

19,024,014 

Government National Mortgage Association:

 
 

"PO", Series 1999-40, Principal Only, Zero Coupon, 11/16/2029  

 

 

1,573,033 

 

1,273,053 

 

"OD", Series 2006-36, Principal Only, Zero Coupon, 7/16/2036  

 

 

1,223,617 

 

1,060,930 

 

"PO", Series 2006-60, Principal Only, Zero Coupon, 11/20/2036  

 

 

988,760 

 

945,791 

 

"FH", Series 2007-33, 0.659% *, 6/20/2037  

 

 

1,861,346 

 

1,859,286 

 

"FG", Series 2002-76, 0.729% *, 10/16/2029  

 

 

1,863,126 

 

1,816,274 

 

"ZC", Series 2003-86, 4.5%, 10/20/2033  

 

 

1,582,414 

 

1,403,903 

 

"A1", Series 2008-36, Interest Only, 5.0%, 10/16/2022  

 

 

8,783,777 

 

863,810 

 

"GD", Series 2004-26, 5.0%, 11/16/2032  

 

 

20,000,000 

 

20,188,104 

 

"LG", Series 2003-70, 5.0%, 8/20/2033  

 

 

1,000,000 

 

946,787 

 

"KE", Series 2004-19, 5.0%, 3/16/2034  

 

 

4,500,000 

 

4,247,691 

 

"PH", Series 2004-80, 5.0%, 7/20/2034  

 

 

8,002,000 

 

7,837,627 

 

"LE", Series 2004-87, 5.0%, 10/20/2034  

 

 

6,741,000 

 

6,288,426 

 

"ZB", Series 2005-15, 5.0%, 2/16/2035  

 

 

10,942,465 

 

9,975,658 

 

"Z", Series 2005-25, 5.0%, 3/16/2035  

 

 

2,421,569 

 

2,238,411 

 

"ZA", Series 2006-47, 5.0%, 8/16/2036  

 

 

6,010,392 

 

5,177,851 

 

"CK", Series 2007-31, 5.0%, 5/16/2037  

 

 

7,412,000 

 

7,230,466 

 

"AI", Series 2008-77, Interest Only, 5.5%, 10/20/2020  

 

 

1,944,069 

 

73,828 

 

"AI", Series 2008-40, Interest Only, 5.5%, 5/16/2023  

 

 

4,800,031 

 

492,492 

 

"TZ", Series 2003-85, 5.5%, 10/20/2033  

 

 

20,008,166 

 

18,480,745 

 

 

 

 

"PI", Series 2004-28, Interest Only, 5.5%, 11/20/2033  

 

 

5,077,513 

 

377,384 

 

"PC", Series 2007-2, 5.5%, 6/20/2035  

 

 

10,000,000 

 

10,155,397 

 

"PD", Series 2005-91, 5.5%, 12/20/2035  

 

 

5,000,000 

 

4,670,216 

 

"ZA", Series 2007-30, 5.5%, 5/16/2037  

 

 

5,478,850 

 

4,961,771 

 

"SB", Series 2008-36, Interest Only, 5.911% **, 4/20/2038  

 

 

18,353,792 

 

1,171,947 

 

"SF", Series 2002-63, Interest Only, 5.951% **, 9/16/2032  

 

 

5,752,583 

 

382,955 

 

"SP", Series 2005-61, Interest Only, 5.951% **, 8/16/2035  

 

 

12,365,601 

 

957,533 

 

"BZ", Series 2004-46, 6.0%, 6/20/2034  

 

 

2,631,258 

 

2,670,765 

 

"NS", Series 2007-72, Interest Only, 6.171% **, 11/20/2037  

 

 

5,500,074 

 

318,727 

 

"SJ", Series 2004-22, Interest Only, 6.241% **, 4/20/2034  

 

 

17,866,304 

 

904,332 

 

"ZB", Series 1998-21, 6.5%, 9/20/2028  

 

 

2,797,222 

 

2,911,894 

 

"PB", Series 2001-53, 6.5%, 11/20/2031  

 

 

4,000,000 

 

4,343,457 

 

"IO", Series 2006-61, Interest Only, 6.5%, 11/20/2036  

 

 

9,740,998 

 

1,112,534 

 

"GS", Series 2006-16, Interest Only, 6.631% **, 4/20/2036  

 

 

11,618,254 

 

874,573 

 

"KS", Series 2004-96, Interest Only, 6.641% **, 7/20/2034  

 

 

10,350,532 

 

833,224 

 

"SY", Series 2004-47, Interest Only, 6.731% **, 1/16/2034  

 

 

13,132,094 

 

1,129,774 

 

"LS", Series 2003-74, Interest Only, 6.791% **, 12/20/2030  

 

 

2,614,221 

 

122,309 

 

"QS", Series 2003-34, Interest Only, 6.791% **, 3/20/2033  

 

 

9,686,530 

 

909,372 

 

"SN", Series 2005-68, Interest Only, 6.871% **, 1/17/2034  

 

 

23,535,023 

 

1,485,175 

 

"S", Series 2008-47, Interest Only, 7.371% **, 6/16/2038  

 

 

22,942,705 

 

2,167,962 

 

"SM", Series 2003-60, Interest Only, 7.421% **, 1/16/2033  

 

 

26,557,997 

 

2,257,217 

 

"SA", Series 1999-30, Interest Only, 7.671% **, 4/16/2029  

 

 

7,713,613 

 

507,523 

 

"SJ", Series 1999-43, Interest Only, 7.671% **, 11/16/2029  

 

 

4,348,215 

 

465,848 

 

"QA", Series 2002-13, Interest Only, 7.721% **, 2/16/2032  

 

 

507,966 

 

68,931 

 

"S", Series 1999-15, Interest Only, 7.871% **, 5/16/2029  

 

 

4,219,250 

 

491,511 

**Total Collateralized Mortgage Obligations** (Cost $220,762,420)

 

**224,361,313**

 

**Government & Agency Obligations 3.6%**

 
**US Government Sponsored Agencies 1.4%**

 
Federal Home Loan Bank, 7.45% *, 10/16/2023 (c) 

 

 

10,000,000 

 

10,000,000 

Federal National Mortgage Association, 8.45% *, 2/27/2023 (c) 

 

 

18,000,000 

 

18,000,000 

 

**28,000,000**

**US Treasury Obligations 2.2%**

 
US Treasury Bills:

 
 

0.04% ***, 5/21/2009 (d)

 

 

448,000 

 

447,665 

 

0.13% ***, 6/11/2009 (d)

 

 

12,289,000 

 

12,277,645

 

0.24% ***, 7/9/2009 (d)

 

 

986,000 

 

984,667 

US Treasury Inflation-Indexed Note, 0.625%, 4/15/2013 (b) 

 

 

32,180,480 

 

31,104,429 

 

**44,814,406**

**Total Government & Agency Obligations** (Cost $71,746,089)

 

**72,814,406**

 

 

 

 

 

**Shares**

 

**Value ($)**

 

**Securities Lending Collateral 16.4%**

 
Daily Assets Fund Institutional, 1.25% (e) (f)(Cost $326,233,435)

 

 

326,233,435

 

**326,233,435**

 

**Cash Equivalents 11.5%**

 
Cash Management QP Trust, 1.12% (e)(Cost $228,328,186)

 

 

228,328,186

 

**228,328,186**

 

 

 

 

 

 

 

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $2,493,488,196) †

126.5

 

**2,518,805,519**

**Other Assets and Liabilities, Net**

(26.5)

 

**(527,793,176)**

**Net Assets**

100.0

 

**1,991,012,343**

*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.*

***

*Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate.  These securities are shown at their current rate as of January 31, 2009.*

****

*These securities are shown at their current rate as of January 31, 2009.*

*****

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

*†*

*The cost for federal income tax purposes was $2,493,744,597.  At January 31, 2009, net unrealized appreciation for all securities based on tax cost was $25,060,922.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $30,096,962 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $5,036,040.*

*(a)*

*When-issued or delayed delivery security included.*

*(b)*

*All or a portion of these securities were on loan.  The value of all securities loaned at January 31, 2009 amounted to $318,765,938 which is 16.0% of net assets.*

*(c)*

*At January 31, 2009 this security has been pledged, in whole or in part, as collateral for open written options.*

*(d)*

*At January 31, 2009, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.*

*(e)*

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

*(f)*

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

*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 January 31, 2009, open futures contracts purchased were as follows:*

**Futures**

 

**Expiration****Date**

 

**Contracts**

 

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

 

**Value ($)**

 

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

 

10 Year Australian Treasury Bond 

 

3/16/2009 

 

20 

 

1,429,528 

 

1,467,818 

 

38,290

 
10 Year Interest Rate Swap 

 

3/16/2009 

 

345 

 

43,255,341 

 

43,054,924 

 

(200,417)

 
2 Year US Treasury Note 

 

3/31/2009 

 

948 

 

203,834,943 

 

206,308,500 

 

2,473,557

 
Federal Republic of Germany Euro-Bund

 

3/6/2009 

 

832 

 

132,741,265 

 

130,359,869 

 

(2,381,396)

 
Federal Republic of Germany Euro-Schatz

 

3/6/2009 

 

786 

 

107,947,173 

 

108,489,307 

 

542,134

 
**Total net unrealized appreciation**

**472,168**

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

 

 

 

**Futures**

 

 

**Expiration****Date**

 

**Contracts**

 

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

 

**Value ($)**

 

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

 

10 Year Canadian Government Bond 

 

3/20/2009 

 

209 

 

21,388,778 

 

21,137,761 

 

251,017

 
10 Year Japanese Government Bond 

 

3/11/2009 

 

57 

 

88,525,696 

 

88,137,920 

 

387,776

 
10 Year US Treasury Note 

 

6/19/2009 

 

115 

 

14,087,178 

 

13,880,860 

 

206,318

 
10 Year US Treasury Note 

 

3/20/2009 

 

2,566 

 

320,620,800 

 

314,776,044 

 

5,844,756

 
United Kingdom Long Gilt Bond 

 

3/27/2009 

 

42 

 

7,467,033 

 

7,146,931 

 

320,102

 
**Total unrealized appreciation**

**7,009,969**

 
*At January 31, 2009, open total return swaps were as follows:*

**Effective/****Expiration****Dates**

**Notional****Amount ($)**

**Fixed****Cash****Flows****Paid**

**Reference****Entity**

**Value ($)**

**Upfront Premiums****Paid/****(Received) ($)**

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

 

12/1/2008

1/12/2010

177,252,4001

0.35%

Citi Global Interest Rate Strategy Index

4,581,553

104,000

**4,477,553**

 
*Counterparty:*

*1*

*Citigroup Global Markets, Inc.*

 

 

 

 

 

 

 

 

 

*At January 31, 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 3.12% versus the one-year LIBOR expiring on September 18, 2010 

62,000,000 

 

9/18/2009 

 

34,689 

 
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 

 

663,425 

 
 

 

 

 

 

 

 
**Total Call Options (Premiums received $733,150)**

 

**698,114**

 
**Put Options**

 
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 

 

1,504,083 

 
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 

 

72,503 

 
 

 

 

 

 

 

 
**Total Put Options (Premiums received $733,150)**

 

**1,576,586**

 
 

 

 

 
**Written Options**

 

**Coupon****Rate (%)**

 

**Contract****Amount**

 

**Expiration****Date**

 

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

 

**Value ($)***

 
 
 
**Call Options**

 
 
30 Year GNSF 

 

4.5

 

25,000,000 

 

2/12/2009 

 

101.4

 

250,000 

 
 
30 Year GNSF 

 

4.5

 

25,000,000 

 

2/12/2009 

 

101.7

 

207,031 

 
 
30 Year GNSF 

 

5.0

 

25,000,000 

 

3/11/2009 

 

103.0

 

117,187 

 
 
30 Year GNSF 

 

5.0

 

25,000,000 

 

3/11/2009 

 

102.1

 

242,187 

 
 
30 Year GNSF 

 

5.0

 

25,000,000 

 

2/12/2009 

 

100.3

 

171,875 

 
 
30 Year GNSF 

 

5.0

 

25,000,000 

 

2/12/2009 

 

102.0

 

281,250 

 
 
30 Year GNSF 

 

5.5

 

25,000,000 

 

2/12/2009 

 

102.0

 

117,188 

 
 
30 Year GNSF 

 

5.5

 

25,000,000 

 

2/12/2009 

 

103.5

 

7,813 

 
 
30 Year GNSF 

 

6.0

 

25,000,000 

 

2/12/2009 

 

102.0

 

265,625 

 
 
**Total Call Options (Premiums received $1,814,453)**

 

**1,660,156**

 
 
 
**Put Options**

 
 
30 Year GNSF 

 

5.0

 

25,000,000 

 

3/11/2009 

 

102.3

 

93,750 

 
 
30 Year GNSF 

 

5.0

 

25,000,000 

 

4/13/2009 

 

101.0

 

148,437 

 
 
30 Year GNSF 

 

5.5

 

25,000,000 

 

3/11/2009 

 

101.0

 

23,437 

 
 
30 Year GNSF 

 

5.5

 

25,000,000 

 

3/11/2009 

 

103.0

 

257,813 

 
 
30 Year GNSF 

 

5.5

 

25,000,000 

 

4/13/2009 

 

102.5

 

257,813 

 
 
30 Year GNSF 

 

6.0

 

25,000,000 

 

4/13/2009 

 

103.0

 

179,687 

 
 
**Total Put Options (Premiums received $722,656)**

 

**960,937**

 
 
 
**Total Written Options (Total Premiums received $4,003,409)**

 

**4,895,793**

 
 
 
***

*Unrealized depreciation at January 31, 2009 was ($892,384).*

 
*GNSF: Government National Single Family*

 
*LIBOR: Represents the London InterBank Offered Rate.*

 
 

 
 

 
 

 
*As of January 31, 2009, the Fund had the following open forward foreign currency exchange contracts:*

 
**Contracts to Deliver**

 

**In Exchange For**

 

**Settlement****Date**

 

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

 
 
 
 
USD

3,342,020

 

CAD

4,168,000

 

2/18/2009

 

28,131

 
 
CHF

13,562,000

 

USD

12,084,113

 

2/18/2009

 

405,678

 
 
**Total unrealized appreciation**

 

 

 

 

 

**433,809**

 
 
 
 
**Contracts to Deliver**

 

**In Exchange For**

 

**Settlement****Date**

 

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

 
 
 
 
USD

8,688,998

 

GBP

5,926,000

 

2/18/2009

 

(147,784)

 
 
USD

38,280,514

 

JPY

3,417,914,000

 

2/18/2009

 

(228,872)

 
 
USD

9,599,760

 

NZD

17,910,000

 

2/18/2009

 

(511,347)

 
 
USD

22,107,360

 

EUR

16,748,000

 

2/18/2009

 

(669,923)

 
 
USD

26,045,508

 

SEK

217,941,000

 

2/18/2009

 

(3,624)

 
 
USD

12,354,241

 

AUD

18,617,000

 

2/18/2009

 

(497,916)

 
 
NOK

334,919,000

 

USD

46,663,713

 

2/18/2009

 

(1,692,996)

 
 
**Total unrealized depreciation**

 

 

 

 

 

**(3,752,462)**

 
 
 
***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,”*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 January 31, 2009 in valuing the Fund's investments. Please see below for information on the Fund’s policy regarding valuation inputs, and their aggregate levels used in the table below:*

 

 

**Valuation Inputs**

**Investments in  Securities**

**Options Written, at Value**

**Other Financial Instruments***††*

Level 1 

$                 326,233,435   

$               (2,274,700)

$                    7,482,137   

Level 2 

2,182,572,084   

-                                          

1,158,900 

Level 3 

10,000,000   

(2,621,093)                         

-   

**Total**

**$              2,518,805,519**

**$              (4,895,793)**

**$                 8,641,037**

 

*†† Other financial instruments are derivative instruments not reflected in the Investment Portfolio, such as futures contracts, forward foreign currency exchange contracts, credit default and total return swap contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.*

 

 

 

 

 

 

 

*The following is a reconciliation of the Fund's Level 3 investments for which significant unobservable inputs were used in determining the value at January 31, 2009:*

 

 

**Investments in  Securities**

**Written Options**

**Balance as of  November 1, 2008**

$                  10,000,000

$                 (3,492,187)

Total realized gain (loss)

-

2,457,031

Change in unrealized appreciation (depreciation)

-

865,235   

Amortization Premium/Discount

-

-

Net purchases (sales)

-

(2,451,172)   

Net transfers in (out) of Level 3 

-

-

**Balance as of January 31, 2009**

**$                 10,000,000**

**$                (2,621,093)**

 

 

**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 Strategic Government Securities Fund

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

March 23, 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:

March 23, 2009

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        March 23, 2009

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