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  811-2743 DWS Strategic Income 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:7/31/09  ITEM 1.  SCHEDULE OF INVESTMENTS  Investment Portfolio
        as of July 31, 2009  (Unaudited)
  DWS Strategic Income Fund  PrincipalAmount ($) (a)
        
        Value ($)Corporate Bonds 60.4%Consumer Discretionary 6.4%AMC Entertainment, Inc.:8.0%, 3/1/2014
        
        
        225,000
        
        207,563144A, 8.75%, 6/1/2019
        
        
        535,000
        
        526,975American Achievement Corp., 144A, 8.25%, 4/1/2012
        
        
        115,000
        
        112,700American Achievement Group Holding Corp., 16.75%, 10/1/2012 (PIK)
        
        
        215,687
        
        86,275Ameristar Casinos, Inc., 144A, 9.25%, 6/1/2014
        
        
        580,000
        
        597,400Asbury Automotive Group, Inc.:7.625%, 3/15/2017
        
        
        270,000
        
        210,6008.0%, 3/15/2014
        
        
        115,000
        
        100,050Ashtead Holdings PLC, 144A, 8.625%, 8/1/2015
        
        
        295,000
        
        253,700CanWest MediaWorks LP, 144A, 9.25%, 8/1/2015 **
        
        
        190,000
        
        24,700Carrols Corp., 9.0%, 1/15/2013
        
        
        120,000
        
        116,100
      CSC Holdings, Inc.:6.75%, 4/15/2012
        
        
        210,000
        
        208,950Series B, 7.625%, 4/1/2011
        
        
        1,895,000
        
        1,918,687144A, 8.5%, 6/15/2015
        
        
        710,000
        
        731,300DirecTV Holdings LLC, 7.625%, 5/15/2016
        
        
        435,000
        
        440,437DISH DBS Corp.:6.375%, 10/1/2011
        
        
        1,350,000
        
        1,339,8756.625%, 10/1/2014
        
        
        335,000
        
        321,6007.125%, 2/1/2016 (b)
        
        
        620,000
        
        601,400Dollarama Group Holdings LP, 7.468% ***, 8/15/2012 (c)
        
        
        196,000
        
        175,420Fontainebleau Las Vegas Holdings LLC, 144A, 11.0%, 6/15/2015 **
        
        
        270,000
        
        8,100Ford Motor Co., 7.45%, 7/16/2031 (b)
        
        
        330,000
        
        247,500Goodyear Tire & Rubber Co., 10.5%, 5/15/2016 (b)
        
        
        120,000
        
        128,700Great Canadian Gaming Corp., 144A, 7.25%, 2/15/2015
        
        
        235,000
        
        216,200Group 1 Automotive, Inc., 8.25%, 8/15/2013
        
        
        115,000
        
        103,500Hertz Corp., 8.875%, 1/1/2014
        
        
        1,435,000
        
        1,381,187Idearc, Inc., 8.0%, 11/15/2016 **
        
        
        540,000
        
        23,625Indianapolis Downs LLC, 144A, 11.0%, 11/1/2012
        
        
        155,000
        
        116,250Isle of Capri Casinos, Inc., 7.0%, 3/1/2014
        
        
        148,000
        
        130,240Kabel Deutschland GmbH, 10.625%, 7/1/2014
        
        
        275,000
        
        288,062Lamar Media Corp., Series C, 6.625%, 8/15/2015 (b)
        
        
        155,000
        
        133,300Levi Strauss & Co., 8.625%, 4/1/2013
        EUR
        
        450,000
        
        612,522Macy's Retail Holdings, Inc.:5.35%, 3/15/2012
        
        
        480,000
        
        470,7598.875%, 7/15/2015 (b)
        
        
        45,000
        
        46,603Mediacom Broadband LLC, 8.5%, 10/15/2015 (b)
        
        
        370,000
        
        351,500MGM MIRAGE:144A, 10.375%, 5/15/2014
        
        
        195,000
        
        209,138144A, 11.125%, 11/15/2017
        
        
        245,000
        
        269,500Michaels Stores, Inc., 10.0%, 11/1/2014
        
        
        165,000
        
        155,100Neiman Marcus Group, Inc., 10.375%, 10/15/2015
        
        
        415,000
        
        298,800Norcraft Holdings LP, 9.75%, 9/1/2012
        
        
        565,000
        
        536,750Nordstrom, Inc., 6.75%, 6/1/2014
        
        
        1,630,000
        
        1,753,606Peermont Global Proprietary Ltd., 144A, 7.75%, 4/30/2014
        EUR
        
        425,000
        
        475,515Penske Automotive Group, Inc., 7.75%, 12/15/2016
        
        
        490,000
        
        416,500Pinnacle Entertainment, Inc.:7.5%, 6/15/2015
        
        
        410,000
        
        363,875144A, 8.625%, 8/1/2017 (d)
        
        
        300,000
        
        300,0008.75%, 10/1/2013
        
        
        155,000
        
        159,650Quebecor Media, Inc., 7.75%, 3/15/2016
        
        
        230,000
        
        218,500Quebecor World, Inc., 144A, 9.75%, 1/15/2015 **
        
        
        180,000
        
        16,200Reader's Digest Association, Inc., 9.0%, 2/15/2017 **
        
        
        180,000
        
        10,800Sabre Holdings Corp., 8.35%, 3/15/2016
        
        
        200,000
        
        140,000Seminole Hard Rock Entertainment, Inc., 144A, 3.129% ***, 3/15/2014
        
        
        275,000
        
        206,250Shaw Communications, Inc., 8.25%, 4/11/2010
        
        
        310,000
        
        318,525Shingle Springs Tribal Gaming Authority, 144A, 9.375%, 6/15/2015
        
        
        190,000
        
        121,600Simmons Co., Step-up Coupon, 0% to 12/15/2009, 10.0% to 12/15/2014
        
        
        725,000
        
        184,875Sonic Automotive, Inc., Series B, 8.625%, 8/15/2013
        
        
        225,000
        
        177,750Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 10/15/2014 (b)
        
        
        200,000
        
        199,000Time Warner Cable, Inc.:6.75%, 6/15/2039
        
        
        820,000
        
        887,0458.25%, 4/1/2019
        
        
        1,140,000
        
        1,384,636Travelport LLC:5.293% ***, 9/1/2014
        
        
        170,000
        
        112,200
     9.875%, 9/1/2014
        
        
        35,000
        
        28,525Trump Entertainment Resorts, Inc., 8.5%, 6/1/2015 **
        
        
        55,000
        
        7,150United Components, Inc., 9.375%, 6/15/2013
        
        
        40,000
        
        27,400Unity Media GmbH:144A, 8.75%, 2/15/2015
        EUR
        
        870,000
        
        1,277,211144A, 10.375%, 2/15/2015
        
        
        175,000
        
        182,875UPC Holding BV:144A, 7.75%, 1/15/2014
        EUR
        
        385,000
        
        524,047144A, 8.0%, 11/1/2016
        EUR
        
        200,000
        
        253,703Vertis, Inc., 13.5%, 4/1/2014 (PIK)
        
        
        71,309
        
        357Videotron Ltd.:6.875%, 1/15/2014
        
        
        45,000
        
        44,100144A, 9.125%, 4/15/2018
        
        
        225,000
        
        233,438WMG Acquisition Corp., 144A, 9.5%, 6/15/2016
        
        
        210,000
        
        222,600Young Broadcasting, Inc., 8.75%, 1/15/2014 **
        
        
        1,165,000
        
        1,16523,950,166Consumer Staples 1.8%Alliance One International, Inc., 144A, 10.0%, 7/15/2016 (b)
        
        
        370,000
        
        364,450Altria Group, Inc., 10.2%, 2/6/2039
        
        
        800,000
        
        1,041,039Anheuser-Busch InBev Worldwide, Inc., 144A, 7.75%, 1/15/2019
        
        
        750,000
        
        875,998Duane Reade, Inc., 144A, 11.75%, 8/1/2015 (d)
        
        
        35,000
        
        34,096General Nutrition Centers, Inc., 6.404% ***, 3/15/2014 (PIK)
        
        
        145,000
        
        127,963Great Atlantic & Pacific Tea Co., Inc., 144A, 11.375%, 8/1/2015
        
        
        290,000
        
        291,812Ingles Markets, Inc., 144A, 8.875%, 5/15/2017
        
        
        320,000
        
        324,000North Atlantic Trading Co., 144A, 10.0%, 3/1/2012
        
        
        873,750
        
        393,187Reynolds American, Inc., 6.75%, 6/15/2017
        
        
        800,000
        
        804,461Rite Aid Corp., 7.5%, 3/1/2017
        
        
        355,000
        
        303,525Smithfield Foods, Inc., 144A, 10.0%, 7/15/2014
        
        
        270,000
        
        281,475SUPERVALU, Inc., 8.0%, 5/1/2016 (b)
        
        
        430,000
        
        426,775Tyson Foods, Inc.:7.85%, 4/1/2016
        
        
        325,000
        
        328,250144A, 10.5%, 3/1/2014
        
        
        195,000
        
        216,450Viskase Companies, Inc., 11.5%, 6/15/2011
        
        
        1,330,000
        
        1,064,0006,877,481Energy 8.7%Anadarko Petroleum Corp., 8.7%, 3/15/2019
        
        
        1,640,000
        
        1,946,452Arch Coal, Inc., 144A, 8.75%, 8/1/2016
        
        
        245,000
        
        247,450Atlas Energy Operating Co., LLC:144A, 10.75%, 2/1/2018
        
        
        515,000
        
        517,57512.125%, 8/1/2017
        
        
        360,000
        
        378,900Belden & Blake Corp., 8.75%, 7/15/2012
        
        
        1,150,000
        
        1,012,000Berry Petroleum Co., 10.25%, 6/1/2014
        
        
        235,000
        
        245,575Bill Barrett Corp., 9.875%, 7/15/2016
        
        
        190,000
        
        198,075Bristow Group, Inc., 7.5%, 9/15/2017
        
        
        260,000
        
        243,100Chaparral Energy, Inc., 8.5%, 12/1/2015
        
        
        375,000
        
        232,500Chesapeake Energy Corp.:6.25%, 1/15/2018
        
        
        270,000
        
        240,3006.875%, 1/15/2016
        
        
        975,000
        
        916,5007.25%, 12/15/2018
        
        
        865,000
        
        813,1007.5%, 6/15/2014
        
        
        110,000
        
        108,6259.5%, 2/15/2015
        
        
        975,000
        
        1,034,719Colorado Interstate Gas Co., 6.8%, 11/15/2015
        
        
        115,000
        
        123,091DCP Midstream LLC, 144A, 9.75%, 3/15/2019
        
        
        1,880,000
        
        2,200,888El Paso Corp.:7.25%, 6/1/2018
        
        
        280,000
        
        271,977
     7.75%, 6/15/2010
        
        
        205,000
        
        205,3458.25%, 2/15/2016
        
        
        170,000
        
        173,4009.625%, 5/15/2012
        
        
        180,000
        
        186,760Energy Transfer Partners LP, 8.5%, 4/15/2014
        
        
        1,630,000
        
        1,883,556Enterprise Products Operating LLP, Series L, 6.3%, 9/15/2017
        
        
        2,450,000
        
        2,634,725EXCO Resources, Inc., 7.25%, 1/15/2011
        
        
        355,000
        
        347,900Frontier Oil Corp.:6.625%, 10/1/2011
        
        
        180,000
        
        180,9008.5%, 9/15/2016
        
        
        330,000
        
        337,425GulfSouth Pipeline Co., LP, 144A, 5.75%, 8/15/2012
        
        
        55,000
        
        55,283Holly Corp., 144A, 9.875%, 6/15/2017
        
        
        335,000
        
        331,650Husky Energy, Inc., 7.25%, 12/15/2019
        
        
        940,000
        
        1,077,258KCS Energy, Inc., 7.125%, 4/1/2012
        
        
        945,000
        
        928,462Linn Energy LLC, 144A, 11.75%, 5/15/2017
        
        
        340,000
        
        343,400Mariner Energy, Inc.:7.5%, 4/15/2013
        
        
        215,000
        
        204,2508.0%, 5/15/2017
        
        
        265,000
        
        230,550Newfield Exploration Co., 7.125%, 5/15/2018
        
        
        660,000
        
        641,850Nexen, Inc.:6.2%, 7/30/2019
        
        
        440,000
        
        454,5097.5%, 7/30/2039
        
        
        1,190,000
        
        1,277,066OPTI Canada, Inc.:7.875%, 12/15/2014
        
        
        450,000
        
        294,7508.25%, 12/15/2014
        
        
        630,000
        
        415,800Pemex Project Funding Master Trust, 5.75%, 3/1/2018
        
        
        1,570,000
        
        1,546,450Petrohawk Energy Corp.:7.875%, 6/1/2015
        
        
        115,000
        
        111,5509.125%, 7/15/2013
        
        
        250,000
        
        259,375Plains Exploration & Production Co.:7.0%, 3/15/2017 (b)
        
        
        220,000
        
        208,4507.625%, 6/1/2018 (b)
        
        
        435,000
        
        420,862Quicksilver Resources, Inc.:7.125%, 4/1/2016 (b)
        
        
        640,000
        
        537,60011.75%, 1/1/2016 (b)
        
        
        255,000
        
        279,544Ras Laffan Liquefied Natural Gas Co., Ltd. III, 144A, 6.75%, 9/30/2019
        
        
        500,000
        
        519,635Regency Energy Partners LP:8.375%, 12/15/2013
        
        
        293,000
        
        294,465144A, 9.375%, 6/1/2016
        
        
        800,000
        
        816,000Southwestern Energy Co., 144A, 7.5%, 2/1/2018
        
        
        320,000
        
        320,800Stallion Oilfield Services, 144A, 9.75%, 2/1/2015
        
        
        140,000
        
        50,400Stone Energy Corp.:6.75%, 12/15/2014
        
        
        430,000
        
        279,5008.25%, 12/15/2011
        
        
        685,000
        
        582,250Talisman Energy, Inc., 7.75%, 6/1/2019
        
        
        850,000
        
        994,184TEPPCO Partners LP, 7.625%, 2/15/2012
        
        
        205,000
        
        224,816Tesoro Corp., 6.5%, 6/1/2017
        
        
        540,000
        
        472,500TransCanada PipeLines Ltd., 7.125%, 1/15/2019
        
        
        125,000
        
        148,416Whiting Petroleum Corp.:7.25%, 5/1/2012
        
        
        450,000
        
        452,2507.25%, 5/1/2013
        
        
        70,000
        
        70,000Williams Companies, Inc., 8.125%, 3/15/2012
        
        
        695,000
        
        745,77032,270,483Financials 19.0%Algoma Acquisition Corp., 144A, 9.875%, 6/15/2015
        
        
        540,000
        
        367,200American Express Co., 8.125%, 5/20/2019
        
        
        820,000
        
        906,009American International Group, Inc., 18.2% ***, 6/27/2022
        
        
        1,640,000
        
        975,800
     Anglo American Capital PLC, 144A, 9.375%, 4/8/2019
        
        
        1,480,000
        
        1,687,200ANZ National International Ltd., 144A, 0.651 ***, 8/5/2011 (d)
        
        
        1,670,000
        
        1,671,369Ashton Woods USA LLC, 144A, Step-up Coupon, 0% to 6/30/2012, 11.0% to 6/30/2015
        
        
        280,800
        
        102,436Bank of America Corp.:6.5%, 8/1/2016
        
        
        1,410,000
        
        1,434,3897.625%, 6/1/2019
        
        
        820,000
        
        889,393Buffalo Thunder Development Authority, 144A, 9.375%, 12/15/2014 **
        
        
        115,000
        
        16,963Calpine Construction Finance Co., LP, 144A, 8.0%, 6/1/2016
        
        
        605,000
        
        608,025Capital One Bank USA NA, 8.8%, 7/15/2019
        
        
        1,640,000
        
        1,778,910Cirsa Capital Luxembourg SA, 144A, 7.875%, 7/15/2012
        EUR
        
        75,000
        
        90,863Citigroup Funding, Inc., 5.0% ***, 4/7/2013
        
        
        1,470,000
        
        1,300,950Citigroup, Inc.:6.5%, 8/19/2013
        
        
        90,000
        
        91,7098.5%, 5/22/2019
        
        
        833,000
        
        886,905Codere Finance Luxembourg SA, 144A, 8.25%, 6/15/2015
        EUR
        
        50,000
        
        52,380Conproca SA de CV, REG S, 12.0%, 6/16/2010
        
        
        422,145
        
        444,308Depfa ACS Bank, 144A, 9.5% ***, 10/6/2023
        
        
        4,000,000
        
        3,360,000Ford Motor Credit Co., LLC:7.25%, 10/25/2011
        
        
        1,640,000
        
        1,539,9177.375%, 2/1/2011
        
        
        190,000
        
        183,1957.5%, 8/1/2012 (d)
        
        
        2,500,000
        
        2,307,3977.875%, 6/15/2010
        
        
        335,000
        
        330,0689.875%, 8/10/2011
        
        
        1,155,000
        
        1,144,433Fresenius US Finance II, Inc., 144A, 9.0%, 7/15/2015
        
        
        210,000
        
        226,800GMAC, Inc.:144A, 6.875%, 9/15/2011
        
        
        1,185,000
        
        1,093,162144A, 7.25%, 3/2/2011
        
        
        2,880,000
        
        2,714,4007.75%, 1/19/2010
        
        
        130,000
        
        128,498144A, 7.75%, 1/19/2010
        
        
        1,685,000
        
        1,659,725Harrahs Operating Escrow LLC, 144A, 11.25%, 6/1/2017
        
        
        890,000
        
        901,125Hellas Telecommunications Finance, 144A, 8.996% ***, 7/15/2015 (PIK)
        EUR
        
        200,000
        
        34,207Hexion US Finance Corp., 9.75%, 11/15/2014
        
        
        125,000
        
        83,750HSBC Finance Corp., 1.206% ***, 5/10/2010
        
        
        960,000
        
        938,975Inmarsat Finance II PLC, 10.375%, 11/15/2012
        
        
        750,000
        
        783,750Intergas Finance BV, REG S, 6.875%, 11/4/2011
        
        
        1,145,000
        
        1,053,400iPayment, Inc., 9.75%, 5/15/2014
        
        
        165,000
        
        96,525Kreditanstalt fuer Wiederaufbau, 2.05%, 2/16/2026
        JPY
        
        1,000,000,000
        
        10,223,514MetLife, Inc.:6.75%, 6/1/2016
        
        
        610,000
        
        656,4037.717%, 2/15/2019
        
        
        820,000
        
        927,392New ASAT (Finance) Ltd., 9.25%, 2/1/2011 **
        
        
        340,000
        
        425Nielsen Finance LLC, 11.5%, 5/1/2016 (b)
        
        
        80,000
        
        83,800NiSource Finance Corp., 7.875%, 11/15/2010
        
        
        360,000
        
        376,562Orascom Telecom Finance SCA, 144A, 7.875%, 2/8/2014
        
        
        700,000
        
        593,250Pacific Life Global Funding, 144A, 1.44% ***, 2/6/2016
        
        
        1,739,000
        
        1,522,721Pinnacle Foods Finance LLC, 9.25%, 4/1/2015
        
        
        10,000
        
        9,500PNC Bank NA, 6.875%, 4/1/2018
        
        
        820,000
        
        885,028Principal Financial Group, Inc., 8.875%, 5/15/2019
        
        
        1,640,000
        
        1,841,504Qwest Capital Funding, Inc., 7.0%, 8/3/2009
        
        
        595,000
        
        595,000Rainbow National Services LLC, 144A, 10.375%, 9/1/2014
        
        
        39,000
        
        40,755Rio Tinto Finance (USA) Ltd.:8.95%, 5/1/2014
        
        
        1,630,000
        
        1,894,0709.0%, 5/1/2019
        
        
        1,050,000
        
        1,235,305Sprint Capital Corp.:7.625%, 1/30/2011
        
        
        620,000
        
        624,650
     8.375%, 3/15/2012
        
        
        285,000
        
        288,562Telecom Italia Capital SA, 5.25%, 10/1/2015
        
        
        820,000
        
        834,994Telefonica Emisiones SAU, 5.877%, 7/15/2019
        
        
        760,000
        
        833,490The Goldman Sachs Group, Inc., 7.5%, 2/15/2019
        
        
        820,000
        
        960,346Toll Brothers Finance Corp., 8.91%, 10/15/2017
        
        
        1,640,000
        
        1,736,217Toyota Motor Credit Corp., 5.25%, 2/3/2012
        EUR
        
        4,000,000
        
        6,039,170Toys R Us Property Co. I, LLC, 144A, 10.75%, 7/15/2017
        
        
        245,000
        
        251,125Tropicana Entertainment LLC, 9.625%, 12/15/2014 **
        
        
        660,000
        
        3,300UCI Holdco, Inc., 8.629% ***, 12/15/2013 (PIK)
        
        
        302,415
        
        75,604Universal City Development Partners Ltd., 11.75%, 4/1/2010
        
        
        955,000
        
        950,225Virgin Media Finance PLC:8.75%, 4/15/2014
        
        
        2,070,000
        
        2,090,7008.75%, 4/15/2014
        EUR
        
        30,000
        
        42,545Series 1, 9.5%, 8/15/2016
        
        
        1,365,000
        
        1,399,125Wind Acquisition Finance SA:144A, 9.75%, 12/1/2015
        EUR
        
        900,000
        
        1,282,769144A, 10.75%, 12/1/2015
        
        
        75,000
        
        79,500144A, 11.75%, 7/15/2017 (b)
        
        
        500,000
        
        535,00070,796,687Health Care 3.9%Boston Scientific Corp., 6.0%, 6/15/2011
        
        
        295,000
        
        299,425CareFusion Corp., 144A, 6.375%, 8/1/2019
        
        
        2,193,000
        
        2,312,981Community Health Systems, Inc., 8.875%, 7/15/2015
        
        
        1,795,000
        
        1,848,850Express Scripts, Inc., 7.25%, 6/15/2019
        
        
        383,000
        
        441,335HCA, Inc.:144A, 7.875%, 2/15/2020 (d)
        
        
        2,020,000
        
        1,984,650144A, 8.5%, 4/15/2019
        
        
        200,000
        
        205,0009.125%, 11/15/2014
        
        
        305,000
        
        314,1509.25%, 11/15/2016
        
        
        1,050,000
        
        1,094,6259.625%, 11/15/2016 (PIK)
        
        
        415,000
        
        432,638144A, 9.875%, 2/15/2017
        
        
        745,000
        
        784,112HEALTHSOUTH Corp., 10.75%, 6/15/2016
        
        
        180,000
        
        188,550IASIS Healthcare LLC, 8.75%, 6/15/2014
        
        
        590,000
        
        587,050McKesson Corp., 7.5%, 2/15/2019
        
        
        425,000
        
        497,706Merck & Co., Inc., 4.0%, 6/30/2015
        
        
        660,000
        
        688,542The Cooper Companies, Inc., 7.125%, 2/15/2015
        
        
        385,000
        
        361,900Valeant Pharmaceuticals International, 144A, 8.375%, 6/15/2016
        
        
        185,000
        
        187,775Vanguard Health Holding Co. I, LLC, Step-up Coupon, 0% to 10/1/2009, 11.25% to 10/1/2015
        
        
        405,000
        
        408,038Vanguard Health Holding Co. II, LLC, 9.0%, 10/1/2014
        
        
        885,000
        
        885,000WellPoint, Inc., 7.0%, 2/15/2019
        
        
        925,000
        
        987,90414,510,231Industrials 3.8%Actuant Corp., 6.875%, 6/15/2017
        
        
        150,000
        
        137,063ARAMARK Corp., 8.5%, 2/1/2015 (b)
        
        
        365,000
        
        367,737BE Aerospace, Inc., 8.5%, 7/1/2018 (b)
        
        
        435,000
        
        432,825Belden, Inc.:7.0%, 3/15/2017
        
        
        195,000
        
        171,600144A, 9.25%, 6/15/2019
        
        
        235,000
        
        233,825Bombardier, Inc., 144A, 6.75%, 5/1/2012
        
        
        300,000
        
        289,500Browning-Ferris Industries, Inc., 7.4%, 9/15/2035
        
        
        80,000
        
        78,470Cenveo Corp., 144A, 10.5%, 8/15/2016
        
        
        215,000
        
        178,450Congoleum Corp., 8.625%, 8/1/2008 **
        
        
        480,000
        
        144,000Corrections Corp. of America, 7.75%, 6/1/2017
        
        
        285,000
        
        285,712Esco Corp.:
     144A, 4.504% ***, 12/15/2013
        
        
        285,000
        
        239,400144A, 8.625%, 12/15/2013
        
        
        115,000
        
        105,800Great Lakes Dredge & Dock Co., 7.75%, 12/15/2013
        
        
        175,000
        
        152,250Hutchison Whampoa International 09 Ltd., 144A, 7.625%, 4/9/2019
        
        
        926,000
        
        1,059,238Ingersoll-Rand Global Holding Co., Ltd., 9.5%, 4/15/2014
        
        
        1,040,000
        
        1,207,082K. Hovnanian Enterprises, Inc., 8.875%, 4/1/2012
        
        
        220,000
        
        143,000Kansas City Southern de Mexico SA de CV:7.375%, 6/1/2014
        
        
        530,000
        
        466,4007.625%, 12/1/2013
        
        
        520,000
        
        468,0009.375%, 5/1/2012
        
        
        650,000
        
        640,250Kansas City Southern Railway Co., 8.0%, 6/1/2015
        
        
        395,000
        
        383,150Meccanica Holdings USA, 144A, 6.25%, 7/15/2019
        
        
        1,670,000
        
        1,777,932Mobile Mini, Inc., 9.75%, 8/1/2014
        
        
        255,000
        
        247,987Navios Maritime Holdings, Inc., 9.5%, 12/15/2014
        
        
        290,000
        
        246,500Owens Corning, Inc., 9.0%, 6/15/2019 (b)
        
        
        1,880,000
        
        1,947,817R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017 **
        
        
        695,000
        
        41,700RailAmerica, Inc., 144A, 9.25%, 7/1/2017
        
        
        230,000
        
        236,900RBS Global & Rexnord Corp., 9.5%, 8/1/2014
        
        
        170,000
        
        147,900Titan International, Inc., 8.0%, 1/15/2012
        
        
        730,000
        
        671,600TransDigm, Inc., 7.75%, 7/15/2014
        
        
        115,000
        
        112,988United Rentals North America, Inc.:6.5%, 2/15/2012
        
        
        455,000
        
        439,0757.0%, 2/15/2014
        
        
        570,000
        
        470,250144A, 10.875%, 6/15/2016
        
        
        250,000
        
        250,000US Concrete, Inc., 8.375%, 4/1/2014
        
        
        210,000
        
        134,925USG Corp., 144A, 9.75%, 8/1/2014
        
        
        220,000
        
        224,400Vought Aircraft Industries, Inc., 8.0%, 7/15/2011
        
        
        140,000
        
        132,30014,266,026Information Technology 1.5%Advanced Micro Devices, Inc., 5.75%, 8/15/2012
        
        
        365,000
        
        268,731Alcatel-Lucent USA, Inc., 6.45%, 3/15/2029
        
        
        310,000
        
        201,500Jabil Circuit, Inc., 7.75%, 7/15/2016 (d)
        
        
        145,000
        
        139,407L-3 Communications Corp.:5.875%, 1/15/2015
        
        
        2,225,000
        
        2,108,188Series B, 6.375%, 10/15/2015
        
        
        270,000
        
        259,2007.625%, 6/15/2012
        
        
        755,000
        
        763,494MasTec, Inc., 7.625%, 2/1/2017
        
        
        270,000
        
        240,300Seagate Technology International, 144A, 10.0%, 5/1/2014
        
        
        120,000
        
        131,400SunGard Data Systems, Inc., 10.25%, 8/15/2015
        
        
        705,000
        
        722,625Unisys Corp., 144A, 12.75%, 10/15/2014
        
        
        395,000
        
        393,025Vangent, Inc., 9.625%, 2/15/2015
        
        
        155,000
        
        137,9505,365,820Materials 5.1%Appleton Papers, Inc., Series B, 8.125%, 6/15/2011
        
        
        110,000
        
        77,825ARCO Chemical Co., 9.8%, 2/1/2020 **
        
        
        1,740,000
        
        461,100Ashland, Inc., 144A, 9.125%, 6/1/2017
        
        
        275,000
        
        290,125Barrick Gold Corp., 6.95%, 4/1/2019
        
        
        1,400,000
        
        1,625,476Bemis Co., Inc., 6.8%, 8/1/2019
        
        
        330,000
        
        360,995Cascades, Inc., 7.25%, 2/15/2013
        
        
        120,000
        
        109,500Clondalkin Acquisition BV, 144A, 2.629% ***, 12/15/2013
        
        
        215,000
        
        166,625Compass Minerals International, Inc., 144A, 8.0%, 6/1/2019
        
        
        235,000
        
        231,475CPG International I, Inc., 10.5%, 7/1/2013
        
        
        520,000
        
        369,200Crown Americas LLC, 144A, 7.625%, 5/15/2017
        
        
        230,000
        
        234,025Domtar Corp., 10.75%, 6/1/2017 (b)
        
        
        230,000
        
        233,450
     Dow Chemical Co.:8.55%, 5/15/2019
        
        
        200,000
        
        219,4199.4%, 5/15/2039
        
        
        1,640,000
        
        1,970,203Exopack Holding Corp., 11.25%, 2/1/2014
        
        
        580,000
        
        516,200Freeport-McMoRan Copper & Gold, Inc.:8.25%, 4/1/2015
        
        
        580,000
        
        613,3508.375%, 4/1/2017
        
        
        1,140,000
        
        1,208,400GEO Specialty Chemicals, Inc.:144A, 7.5% ***, 3/31/2015 (PIK)
        
        
        465,083
        
        302,30410.0%, 3/31/2015
        
        
        460,160
        
        299,104Georgia-Pacific LLC:144A, 7.0%, 1/15/2015
        
        
        330,000
        
        320,100144A, 7.125%, 1/15/2017
        
        
        180,000
        
        175,500144A, 8.25%, 5/1/2016
        
        
        300,000
        
        310,5009.5%, 12/1/2011
        
        
        185,000
        
        194,250Graphic Packaging International, Inc., 144A, 9.5%, 6/15/2017
        
        
        325,000
        
        323,375Greif, Inc., 144A, 7.75%, 8/1/2019
        
        
        995,000
        
        987,537Hexcel Corp., 6.75%, 2/1/2015
        
        
        1,030,000
        
        970,775Huntsman International LLC:144A, 6.875%, 11/15/2013
        EUR
        
        535,000
        
        606,2157.375%, 1/1/2015
        
        
        130,000
        
        106,600Innophos, Inc., 8.875%, 8/15/2014
        
        
        100,000
        
        95,000Koppers Holdings, Inc., Step-up Coupon, 0% to 11/15/2009, 9.875% to 11/15/2014
        
        
        745,000
        
        689,125Millar Western Forest Products Ltd., 7.75%, 11/15/2013
        
        
        110,000
        
        53,900NewMarket Corp., 7.125%, 12/15/2016
        
        
        455,000
        
        423,150NewPage Corp., 10.0%, 5/1/2012
        
        
        405,000
        
        180,225Owens-Brockway Glass Container, Inc., 144A, 7.375%, 5/15/2016
        
        
        418,000
        
        413,820Plastipak Holdings, Inc., 144A, 10.625%, 8/15/2019
        
        
        85,000
        
        86,700Pliant Corp., 11.85%, 6/15/2009 **
        
        
        5
        
        4Radnor Holdings Corp., 11.0%, 3/15/2010 **
        
        
        100,000
        
        130Silgan Holdings, Inc., 144A, 7.25%, 8/15/2016
        
        
        440,000
        
        440,000Solo Cup Co., 144A, 10.5%, 11/1/2013
        
        
        265,000
        
        278,912Teck Resources Ltd.:144A, 9.75%, 5/15/2014
        
        
        200,000
        
        222,500144A, 10.25%, 5/15/2016
        
        
        195,000
        
        220,838144A, 10.75%, 5/15/2019
        
        
        780,000
        
        907,725Terra Capital, Inc., Series B, 7.0%, 2/1/2017
        
        
        855,000
        
        799,425The Mosaic Co., 144A, 7.375%, 12/1/2014
        
        
        625,000
        
        666,247Wolverine Tube, Inc., 15.0%, 3/31/2012 (PIK)
        
        
        325,000
        
        277,06319,038,392Telecommunication Services 4.6%BCM Ireland Preferred Equity Ltd., 144A, 8.281% ***, 2/15/2017 (PIK)
        EUR
        
        242,745
        
        85,272CC Holdings GS V, LLC, 144A, 7.75%, 5/1/2017
        
        
        700,000
        
        714,000Centennial Communications Corp.:10.0%, 1/1/2013
        
        
        155,000
        
        159,65010.125%, 6/15/2013
        
        
        325,000
        
        332,312Cincinnati Bell, Inc.:7.25%, 7/15/2013
        
        
        1,125,000
        
        1,092,6568.375%, 1/15/2014
        
        
        450,000
        
        445,500Cricket Communications, Inc.:9.375%, 11/1/2014
        
        
        1,730,000
        
        1,755,95010.0%, 7/15/2015
        
        
        430,000
        
        443,975Crown Castle International Corp., 9.0%, 1/15/2015
        
        
        565,000
        
        596,781France Telecom SA, 5.375%, 7/8/2019
        
        
        580,000
        
        617,806Frontier Communications Corp., 6.25%, 1/15/2013
        
        
        205,000
        
        197,313Grupo Iusacell Celular SA de CV, 10.0%, 3/31/2012 **
        
        
        112,247
        
        63,981
     Hellas Telecommunications Luxembourg V, 144A, 4.496% ***, 10/15/2012
        EUR
        
        400,000
        
        401,934Hughes Network Systems LLC, 144A, 9.5%, 4/15/2014
        
        
        715,000
        
        715,000Intelsat Corp.:9.25%, 8/15/2014
        
        
        160,000
        
        162,0009.25%, 6/15/2016
        
        
        1,915,000
        
        1,934,150Intelsat Jackson Holdings Ltd., 11.25%, 6/15/2016
        
        
        15,000
        
        15,975Intelsat Subsidiary Holding Co., Ltd.:8.875%, 1/15/2015
        
        
        975,000
        
        984,750Series B, 144A, 8.875%, 1/15/2015
        
        
        395,000
        
        398,950iPCS, Inc., 3.153% ***, 5/1/2013 (b)
        
        
        110,000
        
        91,850MetroPCS Wireless, Inc.:9.25%, 11/1/2014
        
        
        2,065,000
        
        2,137,275144A, 9.25%, 11/1/2014
        
        
        225,000
        
        232,875Millicom International Cellular SA, 10.0%, 12/1/2013
        
        
        1,010,000
        
        1,050,400Qwest Corp.:7.875%, 9/1/2011
        
        
        585,000
        
        596,7008.875%, 3/15/2012
        
        
        130,000
        
        134,875SBA Telecommunications, Inc.:144A, 8.0%, 8/15/2016
        
        
        190,000
        
        191,900144A, 8.25%, 8/15/2019
        
        
        115,000
        
        116,725Stratos Global Corp., 9.875%, 2/15/2013
        
        
        150,000
        
        151,500Telesat Canada, 144A, 11.0%, 11/1/2015
        
        
        820,000
        
        848,700Windstream Corp.:7.0%, 3/15/2019
        
        
        255,000
        
        237,1508.625%, 8/1/2016
        
        
        40,000
        
        40,60016,948,505Utilities 5.6%AES Corp.:8.0%, 6/1/2020
        
        
        930,000
        
        888,150144A, 8.75%, 5/15/2013
        
        
        2,222,000
        
        2,266,440Allegheny Energy Supply Co., LLC, 144A, 8.25%, 4/15/2012
        
        
        3,685,000
        
        3,940,054CenterPoint Energy Houston Electric LLC, Series U, 7.0%, 3/1/2014
        
        
        85,000
        
        93,106CMS Energy Corp., 8.5%, 4/15/2011
        
        
        880,000
        
        906,549Dominion Resources, Inc., Series C, 5.15%, 7/15/2015
        
        
        1,640,000
        
        1,711,611Electricite de France, 144A, 6.5%, 1/26/2019
        
        
        775,000
        
        885,707Energy Future Holdings Corp.:10.875%, 11/1/2017
        
        
        280,000
        
        242,90011.25%, 11/1/2017 (PIK)
        
        
        220,000
        
        162,800IPALCO Enterprises, Inc., 144A, 7.25%, 4/1/2016
        
        
        205,000
        
        201,413Knight, Inc., 6.5%, 9/1/2012
        
        
        720,000
        
        727,200Mirant Americas Generation LLC, 8.3%, 5/1/2011
        
        
        980,000
        
        995,925Mirant North America LLC, 7.375%, 12/31/2013
        
        
        150,000
        
        148,125NRG Energy, Inc.:7.25%, 2/1/2014
        
        
        495,000
        
        486,3377.375%, 1/15/2017
        
        
        1,795,000
        
        1,732,1757.375%, 2/1/2016
        
        
        2,120,000
        
        2,051,100NV Energy, Inc.:6.75%, 8/15/2017
        
        
        470,000
        
        435,1208.625%, 3/15/2014
        
        
        100,000
        
        101,517Sempra Energy, 6.5%, 6/1/2016
        
        
        820,000
        
        900,163Texas Competitive Electric Holdings Co., LLC, Series A, 10.25%, 11/1/2015
        
        
        590,000
        
        463,150The Toledo Edison Co., 7.25%, 5/1/2020
        
        
        1,040,000
        
        1,199,62320,539,165Total Corporate Bonds(Cost $224,368,314)
        
        224,562,956
     Mortgage-Backed Securities Pass-Throughs 2.2%Government National Mortgage Association:4.5%, 11/1/2038 (d)
        
        
        4,000,000
        
        4,028,7505.5%, 5/1/2036 (d)
        
        
        4,000,000
        
        4,159,375Total Mortgage-Backed Securities Pass-Throughs(Cost $8,087,500)
        
        8,188,125Asset-Backed 1.8%Credit Card Receivables 1.6%Bank One Issuance Trust, B2, Series 2004-B2, 4.37%, 4/15/2012
        
        
        2,450,000
        
        2,451,767Washington Mutual Master Note Trust, C1, Series 2007-C1, 144A, 0.688% ***, 5/15/2014
        
        
        3,800,000
        
        3,595,8606,047,627Miscellaneous 0.2%Duane Street CLO, A, Series 2005-1A, 144A, 1.224% ***, 11/8/2017
        
        
        990,846
        
        827,357Total Asset-Backed(Cost $6,861,747)
        
        6,874,984Commercial Mortgage-Backed Securities 2.3%Credit Suisse Mortgage Capital Certificates, A2, Series 2007-C1, 5.268%, 2/15/2040
        
        
        3,719,000
        
        3,646,179Greenwich Capital Commercial Funding Corp., A2, Series 2007-GG9, 5.381%, 3/10/2039
        
        
        1,000,000
        
        999,946JPMorgan Chase Commercial Mortgage Securities Corp., F, Series 2004-LN2, 144A, 5.457% ***, 7/15/2041
        
        
        2,000,000
        
        570,980Wachovia Bank Commercial Mortgage Trust, A2, Series 2007-C32, 5.736% ***, 6/15/2049
        
        
        3,600,000
        
        3,490,613Total Commercial Mortgage-Backed Securities(Cost $9,708,595)
        
        8,707,718Collateralized Mortgage Obligations 3.2%Banc of America Mortgage Securities, 2A2, Series 2004-A, 5.455% ***, 2/25/2034
        
        
        1,265,107
        
        1,090,429Bear Stearns Adjustable Rate Mortgage Trust, 2A1, Series 2005-11, 4.766% ***, 12/25/2035
        
        
        3,520,736
        
        3,025,856Citicorp Mortgage Securities, Inc., 1A7, Series 2006-4, 6.0%, 8/25/2036
        
        
        1,692,510
        
        1,594,846Merrill Lynch Mortgage Investors Trust:2A1A, Series 2005-A9, 5.152% ***, 12/25/2035
        
        
        1,599,077
        
        1,381,4822A, Series 2003-A6, 5.364% ***, 10/25/2033
        
        
        1,826,140
        
        1,656,916Provident Funding Mortgage Loan Trust, 2A1, Series 2005-1, 4.382% ***, 5/25/2035
        
        
        838,548
        
        763,649Residential Funding Mortgage Securities I, 3A1, Series 2005-SA2, 5.133% ***, 6/25/2035
        
        
        1,627,317
        
        1,512,581Wells Fargo Mortgage-Backed Securities Trust, 3A1, Series 2004-EE, 4.474% ***, 12/25/2034
        
        
        744,564
        
        701,911Total Collateralized Mortgage Obligations(Cost $11,469,397)
        
        11,727,670Government & Agency Obligations 27.8%Other Government Related 1.6%Citibank NA, FDIC Guaranteed, 1.016% ***, 5/7/2012
        
        
        3,250,000
        
        3,255,431JPMorgan Chase & Co.:Series 3, FDIC Guaranteed, 0.854% ***, 12/26/2012
        
        
        1,158,000
        
        1,169,883FDIC Guaranteed, 0.859% ***, 6/15/2012
        
        
        1,342,000
        
        1,354,0665,779,380Sovereign Bonds 18.6%Federal Republic of Nigeria, Promissory Note, Series RC, 5.092%, 1/5/2010
        
        
        32,000
        
        4,160Federative Republic of Brazil:7.875%, 3/7/2015 (b)
        
        
        1,045,000
        
        1,202,7958.875%, 10/14/2019
        
        
        950,000
        
        1,168,50012.5%, 1/5/2016
        BRL
        
        1,155,000
        
        652,156Government of Canada, 4.5%, 6/1/2015
        CAD
        
        2,700,000
        
        2,727,144
     Government of Ukraine, REG S, 7.65%, 6/11/2013
        
        
        785,000
        
        648,803Kingdom of Spain, 3.15%, 1/31/2016
        EUR
        
        4,600,000
        
        6,570,867Province of Quebec, Series PO, 1.6%, 5/9/2013
        JPY
        
        1,349,000,000
        
        13,823,568Republic of Argentina, 5.83%, 12/31/2033
        ARS
        
        442
        
        86Republic of Bulgaria, 144A, 8.25%, 1/15/2015
        
        
        825,000
        
        882,750Republic of Colombia, 8.25%, 12/22/2014
        
        
        85,000
        
        99,450Republic of El Salvador, 144A, 7.65%, 6/15/2035 (b)
        
        
        745,000
        
        655,600Republic of Ghana, 144A, 8.5%, 10/4/2017
        
        
        125,000
        
        118,438Republic of Greece:3.6%, 7/20/2016
        EUR
        
        2,750,000
        
        3,905,6984.5%, 9/20/2037
        EUR
        
        4,750,000
        
        6,046,576Republic of Indonesia, 144A, 6.875%, 3/9/2017
        
        
        2,035,000
        
        2,075,700Republic of Panama, 9.375%, 1/16/2023
        
        
        2,075,000
        
        2,609,312Republic of Peru:7.125%, 3/30/2019
        
        
        140,000
        
        151,7607.35%, 7/21/2025
        
        
        1,795,000
        
        1,941,292Republic of Poland, 6.375%, 7/15/2019
        
        
        1,740,000
        
        1,802,292Republic of South Africa, 6.875%, 5/27/2019
        
        
        1,215,000
        
        1,327,387Republic of Turkey:7.0%, 9/26/2016
        
        
        875,000
        
        914,3757.25%, 3/15/2015
        
        
        360,000
        
        384,516Republic of Uruguay:7.625%, 3/21/2036
        
        
        605,000
        
        612,5639.25%, 5/17/2017
        
        
        735,000
        
        847,087Republic of Venezuela, 9.25%, 9/15/2027
        
        
        1,540,000
        
        1,078,000Russian Federation, REG S, 7.5%, 3/31/2030
        
        
        4,175,645
        
        4,221,577Socialist Republic of Vietnam, 144A, 6.875%, 1/15/2016
        
        
        385,000
        
        390,775United Kingdom Treasury Bond, 4.75%, 9/7/2015
        GBP
        
        6,750,000
        
        12,317,06169,180,288US Government Sponsored Agencies 3.2%Federal Home Loan Bank:1.625%, 7/27/2011
        
        
        4,000,000
        
        4,030,7121.75%, 8/22/2012
        
        
        2,500,000
        
        2,484,6377.2% ***, 3/18/2024
        
        
        850,000
        
        761,8137.45% ***, 10/16/2023
        
        
        2,400,000
        
        2,378,400Federal National Mortgage Association:1.288% ***, 2/27/2023
        
        
        750,000
        
        742,5001.75%, 3/23/2011 (e)
        
        
        1,640,000
        
        1,657,72012,055,782US Treasury Obligations 4.4%US Treasury Bills:0.15% ****, 9/17/2009 (f)
        
        
        4,121,000
        
        4,120,1760.16% ****, 8/27/2009 (f)
        
        
        340,000
        
        339,9700.16% ****, 9/17/2009 (f)
        
        
        99,000
        
        98,979US Treasury Bond, 3.5%, 2/15/2039
        
        
        2,140,000
        
        1,849,431US Treasury Notes:0.875%, 12/31/2010 (g)
        
        
        7,000,000
        
        7,008,4773.125%, 5/15/2019
        
        
        3,061,000
        
        2,966,29316,383,326Total Government & Agency Obligations(Cost $102,056,862)
        
        103,398,776Loan Participations and Assignments 2.9%Senior Loans*** 2.0%Buffets, Inc.:Letter of Credit Term Loan B, LIBOR plus 7.25%, 7.848%, 5/1/2013
        
        
        40,425
        
        19,101
     Incremental Term Loan, LIBOR (3% floor) plus 15.0%, 15.285%, 4/30/2012
        
        
        111,971
        
        108,332Second Lien Term Loan, LIBOR plus 1.0%, plus 16.25% (PIK), 19.121%, 5/1/2013
        
        
        189,900
        
        87,354Charter Communications Operating LLC:Term Loan, Prime plus 3.0%, 6.25%, 3/6/2014
        
        
        1,682,440
        
        1,546,482Term Loan, Prime plus 6.0%, 9.25%, 3/6/2014
        
        
        932,130
        
        933,296Essar Steel Algoma, Inc., Term Loan B, LIBOR plus 2.5%, 2.79%, 6/20/2013
        
        
        165,795
        
        138,024Ford Motor Co., Term Loan, LIBOR plus 3.0%, 3.51%,12/16/2013
        
        
        1,160,000
        
        988,830Golden Nugget, Inc., Second Lien Term Loan, LIBOR plus 3.25%, 3.54%, 12/31/2014
        
        
        230,000
        
        100,050Hawker Beechcraft Acquisition Co., LLC:Letter of Credit, LIBOR plus 2.1%, 2.598%, 3/26/2014
        
        
        7,214
        
        5,038Term Loan, LIBOR plus 2.0%, 2.598%, 3/26/2014
        
        
        917,231
        
        640,484Hexion Specialty Chemicals, Inc.:Term Loan C1, LIBOR plus 2.25%, 2.875%, 5/6/2013
        
        
        572,206
        
        429,870Term Loan C2, LIBOR plus 2.25%, 2.875%, 5/6/2013
        
        
        156,274
        
        117,401IASIS Healthcare LLC, Term Loan, LIBOR plus 5.25%, 5.738%, 6/13/2014 (PIK)
        
        
        291,385
        
        233,837Nuveen Investments, Inc., Term Loan, LIBOR plus 3.0%, 3.488%, 11/13/2014
        
        
        265,000
        
        216,306Sabre, Inc., Term Loan B, LIBOR plus 2.25%, 2.741%, 9/30/2014
        
        
        179,784
        
        143,357Sbarro, Inc., Term Loan, LIBOR plus 4.5%, 4.785%, 1/31/2014
        
        
        198,000
        
        162,690Texas Competitive Electric Holdings Co., LLC:Term Loan B2, LIBOR plus 3.5%, 3.802%, 10/10/2014
        
        
        97,307
        
        75,586Term Loan B3, LIBOR plus 3.5%, 3.802%, 10/10/2014
        
        
        1,797,975
        
        1,390,985Tribune Co., Term Loan B, Prime plus 2.0%, 5.25%, 6/4/2014 **
        
        
        365,375
        
        151,9167,488,939Sovereign Loans 0.9%Export-Import Bank of Ukraine, 6.8%, 10/4/2012
        
        
        690,000
        
        520,950Gazprom:144A, 6.51%, 3/7/2022
        
        
        785,000
        
        629,963144A, 8.125%, 7/31/2014
        
        
        1,920,000
        
        1,939,2008.125%, 2/4/2015
        EUR
        
        200,000
        
        300,1683,390,281Total Loan Participations and Assignments(Cost $12,003,861)
        
        10,879,220Preferred Securities 0.5%Financials 0.5%Capital One Capital V, 10.25%, 8/15/2039 (d)
        
        
        1,670,000
        
        1,699,225Xerox Capital Trust I, 8.0%, 2/1/2027 (b)
        
        
        120,000
        
        100,6881,799,913Materials 0.0%Hercules, Inc., 6.5%, 6/30/2029
        
        
        315,000
        
        171,675Total Preferred Securities(Cost $1,977,820)
        
        1,971,588Shares
        
        Value ($)Common Stocks 0.0%Consumer Discretionary 0.0%Buffets Restaurants Holdings, Inc.*
        
        8,766
        
        10,957Vertis Holdings, Inc.*
        
        3,350
        
        010,957Materials 0.0%GEO Specialty Chemicals, Inc.*
        
        10,608
        
        9,017
     GEO Specialty Chemicals, Inc. 144A*
        
        966
        
        8219,838Total Common Stocks(Cost $131,040)
        
        20,795Convertible Preferred Stocks 0.0%Consumer DiscretionaryION Media Networks, Inc. 144A, 12.0%*  (Cost $13,911)
        
        1
        
        0Warrants 0.0%Financials 0.0%New ASAT (Finance) Ltd., Expiration Date 2/1/2011*
        
        52,000
        
        3,751Materials 0.0%Ashland, Inc., Expiration Date 3/31/2029*
        
        315
        
        0Total Warrants(Cost $70,221)
        
        3,751Open End Investment Company 2.5%DWS Floating Rate Plus Fund Institutional (h) (Cost $9,239,065)
        
        1,114,287
        
        9,426,868ContractAmount ($)
        
        Value ($)Call Options Purchased 0.1%Call OptionsOption on an interest rate swap for the obligation to receive a fixed rate of 1.72% versus the one-year EUR LIBOR expiring on March 14, 2012, Expiration Date 3/10/2011 (Cost $243,176)
        EUR
        
        163,300,000
        
        253,895Shares
        
        Value ($)Securities Lending Collateral 1.7%Daily Assets Fund Institutional, 0.39% (i) (j)(Cost $6,151,050)
        
        
        6,151,050
        
        6,151,050Cash Equivalents 1.4%Cash Management QP Trust, 0.27% (i)(Cost $5,060,258)
        
        
        5,060,258
        
        5,060,258% ofNet Assets
        
        Value ($)Total Investment Portfolio(Cost $397,442,817) 
        106.8
        
        397,227,654Other Assets and Liabilities, Net
        (6.8)
        
        (25,187,282)Net Assets
        100.0
        
        372,040,372For 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.**
        Non-income producing security.  Issuer has defaulted on the payment of principal or interest or has filed for bankruptcy.  The following table represents bonds that are in default:Security
        
        Coupon
        
        MaturityDate
        
        Principal Amount
        AcquisitionCost ($)
        
        Value ($)ARCO Chemical Co.
        
        9.8%
        
        2/1/2020
        
        1,740,000
        
        USD
        
        1,951,838
        
        461,100Buffalo Thunder Development Authority
        
        9.375%
        
        12/15/2014
        
        115,000
        
        USD
        
        115,147
        
        16,963CanWest MediaWorks LP
        
        9.25%
        
        8/1/2015
        
        190,000
        
        USD
        
        190,000
        
        24,700Congoleum Corp.
        
        8.625%
        
        8/1/2008
        
        480,000
        
        USD
        
        451,750
        
        144,000Fontainebleau Las Vegas Holdings LLC
        
        11.0%
        
        6/15/2015
        
        270,000
        
        USD
        
        272,475
        
        8,100
     Grupo Iusacell Celular SA de CV
        
        10.0%
        
        3/31/2012
        
        112,247
        
        USD
        
        106,814
        
        63,981Idearc, Inc.
        
        8.0%
        
        11/15/2016
        
        540,000
        
        USD
        
        548,994
        
        23,625New ASAT (Finance) Ltd.
        
        9.25%
        
        2/1/2011
        
        340,000
        
        USD
        
        293,669
        
        425Pliant Corp.
        
        11.85%
        
        6/15/2009
        
        5
        
        USD
        
        6
        
        4Quebecor World, Inc.
        
        9.75%
        
        1/15/2015
        
        180,000
        
        USD
        
        180,000
        
        16,200Reader's Digest Association, Inc.
        
        9.0%
        
        2/15/2017
        
        180,000
        
        USD
        
        175,981
        
        10,800R.H. Donnelley Corp.
        
        8.875%
        
        10/15/2017
        
        695,000
        
        USD
        
        695,106
        
        41,700Radnor Holdings Corp.
        
        11.0%
        
        3/15/2010
        
        100,000
        
        USD
        
        88,363
        
        130Tribune Co.
        
        5.25%
        
        6/4/2014
        
        365,375
        
        USD
        
        365,147
        
        151,916Tropicana Entertainment LLC
        
        9.625%
        
        12/15/2014
        
        660,000
        
        USD
        
        520,338
        
        3,300Trump Entertainment Resorts, Inc.
        
        8.5%
        
        6/1/2015
        
        55,000
        
        USD
        
        56,100
        
        7,150Young Broadcasting, Inc.
        
        8.75%
        
        1/15/2014
        
        1,165,000
        
        USD
        
        1,079,224
        
        1,1657,090,952
        
        975,259***
        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 July 31, 2009.****
        Annualized yield at time of purchase; not a coupon rate.
        The cost for federal income tax purposes was $399,546,823.  At July 31, 2009, net unrealized depreciation for all securities based on tax cost was $2,319,169.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $15,586,069 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $17,905,238.(a)
        Principal amount stated in US dollars unless otherwise noted.(b)
        All or a portion of these securities were on loan.  The value of all securities loaned at July 31, 2009 amounted to $5,920,131 which is 1.6% of net assets.(c)
        Security has deferred its 6/15/2008, 12/15/2008 and 6/15/2009 interest payments until 12/31/2009.(d)
        When-issued or delayed delivery security included.(e)
        At July 31, 2009 this security has been pledged, in whole or in part, as collateral for open swaps contracts.(f)
        At July 31, 2009, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.(g)
        At July 31, 2009, this security has been pledged, in whole or in part, as collateral for open forward foreign currency exchange contracts.(h)
        Affiliated fund managed by Deutsche Investment Management Americas Inc.(i)
        Affiliated fund managed by Deutsche Investment Management Americas Inc.  The rate shown is the annualized seven-day yield at period end.(j)
        Represents collateral held in connection with securities lending.  Income earned by the Fund is net of borrower rebates.144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.FDIC: Federal Deposit Insurance Corp.LIBOR: Represents the London InterBank Offered Rate.PIK: Denotes that all or a portion of the income is paid in kind.Prime: Interest rate charged by banks to their most credit worthy customers.REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, US persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.At July 31, 2009, open futures contracts purchased were as follows:
     Futures
        
        ExpirationDate
        
        Contracts
        
        AggregatedFaceValue ($)
        
        Value ($)
        
        UnrealizedAppreciation ($)10 Year Australian Treasury Bond
        
        9/15/2009
        
        73
        
        6,292,238
        
        6,304,582
        
        12,34410 Year US Treasury Note
        
        9/21/2009
        
        180
        
        21,005,457
        
        21,110,625
        
        105,168AEX Index
        
        8/21/2009
        
        8
        
        571,749
        
        644,007
        
        72,258ASX SPI 200 Index
        
        9/17/2009
        
        28
        
        2,355,370
        
        2,462,966
        
        107,596CAC 40 10 Euro Index
        
        8/21/2009
        
        13
        
        570,912
        
        634,151
        
        63,239Federal Republic of Germany Euro-Bund
        
        9/8/2009
        
        15
        
        2,593,476
        
        2,609,153
        
        15,677Federal Republic of Germany Euro-Schatz
        
        9/8/2009
        
        334
        
        51,327,428
        
        51,489,566
        
        162,138FTSE 100 Index
        
        9/18/2009
        
        6
        
        434,434
        
        458,639
        
        24,205FTSE MIB Index
        
        9/18/2009
        
        15
        
        2,082,168
        
        2,202,622
        
        120,454Hang Seng Index
        
        8/28/2009
        
        22
        
        2,866,397
        
        2,890,214
        
        23,817S&P 500 E-Mini Index
        
        9/18/2009
        
        143
        
        6,671,883
        
        7,038,460
        
        366,577S&P TSE 60 Index
        
        9/17/2009
        
        14
        
        1,616,740
        
        1,696,505
        
        79,765Total unrealized appreciation
        1,153,238At July 31, 2009, open futures contracts sold were as follows:Futures
        
        
        ExpirationDate
        
        Contracts
        
        AggregatedFaceValue ($)
        
        Value ($)
        
        UnrealizedAppreciation/(Depreciation) ($)10 Year Canadian Government Bond
        
        9/21/2009
        
        14
        
        1,562,443
        
        1,565,375
        
        (2,932)10 Year Japanese Government Bond
        
        9/10/2009
        
        18
        
        25,876,001
        
        26,273,818
        
        (397,817)2 Year US Treasury Note
        
        9/30/2009
        
        93
        
        20,159,005
        
        20,141,765
        
        17,240DAX Index
        
        9/18/2009
        
        26
        
        4,603,503
        
        4,949,067
        
        (345,564)DJ Euro Stoxx 50 Index
        
        9/18/2009
        
        20
        
        690,340
        
        751,418
        
        (61,078)IBEX 35 Index
        
        8/21/2009
        
        13
        
        1,778,692
        
        2,006,401
        
        (227,709)NASDAQ E-Mini 100 Index
        
        9/18/2009
        
        91
        
        2,694,716
        
        2,915,640
        
        (220,924)Russell E-Mini 2000 Index
        
        9/18/2009
        
        87
        
        4,517,542
        
        4,836,330
        
        (318,788)TOPIX Index
        
        9/11/2009
        
        4
        
        389,749
        
        403,910
        
        (14,161)United Kingdom Long Gilt Bond
        
        9/28/2009
        
        12
        
        2,351,787
        
        2,353,731
        
        (1,944)Total net unrealized depreciation
        (1,573,677)At July 31, 2009, open credit default swap contracts purchased were as follows:
     Effective/ExpirationDates
        NotionalAmount ($)
        FixedCashFlowsPaid
        Underlying DebtObligation/Quality Rating (k)
        Value ($)
        Upfront PremiumsPaid/(Received) ($)
        UnrealizedAppreciation ($)6/22/20099/20/2014
        2,200,0001
        1.0%
        Toll Brothers Finance Corp., 5.15%, 5/15/2015, BBB-
        5,152
        5,152
        0(k)
        The quality ratings represent the lower of Moody's Investors Service, Inc. ("Moody's") or Standard & Poor's Corporation ("S&P") credit ratings.At July 31, 2009, open interest rate swaps were as follows:Effective/ExpirationDates
        
        NotionalAmount ($)
        
        Cash FlowsPaid bythe Fund
        
        Cash FlowsReceived bythe Fund
        
        UnrealizedDepreciation ($)4/20/20094/20/2024
        
        2,500,0002
        
        Fixed  7.5%
        Floating  LIBOR
        (2,409)5/15/20095/15/2024
        
        2,500,0002
        
        Fixed  7.5%
        Floating  LIBOR
        (2,100)Total unrealized depreciation
        (4,509)At July 31, 2009, open total return swap contracts were as follows:Effective/ExpirationDates
        NotionalAmount ($)
        FixedCashFlowsPaid
        ReferenceEntity
        Value ($)
        Upfront PremiumsPaid/(Received) ($)
        UnrealizedDepreciation ($)6/1/20096/1/2012
        15,300,0003
        0.425%
        Global Interest Rate Strategy Index
        (232,820)
        14,200
        (247,020)Counterparties:1
        JPMorgan Chase Securities, Inc.2
        Morgan Stanley3
        Citigroup, Inc.
  As of July 31, 2009, the Fund had the following open forward foreign currency exchange contracts:Contracts to Deliver
        
        In Exchange For
        
        SettlementDate
        
        UnrealizedAppreciation ($)USD
        532,483
        
        CAD
        621,000
        
        8/19/2009
        
        43,137USD
        9,339,946
        
        AUD
        11,951,000
        
        8/19/2009
        
        612,208USD
        1,925,819
        
        NZD
        3,082,000
        
        8/19/2009
        
        105,342USD
        15,738,501
        
        CHF
        17,177,000
        
        8/19/2009
        
        361,342Total unrealized appreciation
        
        
        
        
        
        1,122,029Contracts to Deliver
        
        In Exchange For
        
        SettlementDate
        
        UnrealizedDepreciation ($)USD
        5,993,755
        
        JPY
        564,375,000
        
        8/19/2009
        
        (23,587)EUR
        6,100,000
        
        USD
        8,470,997
        
        8/19/2009
        
        (238,183)GBP
        3,074,000
        
        USD
        4,937,121
        
        8/19/2009
        
        (199,819)NOK
        2,524,000
        
        USD
        384,885
        
        8/19/2009
        
        (27,520)SEK
        16,297,000
        
        USD
        2,045,768
        
        8/19/2009
        
        (211,206)EUR
        2,393,600
        
        USD
        3,338,186
        
        8/25/2009
        
        (73,609)EUR
        961,200
        
        USD
        1,340,518
        
        8/25/2009
        
        (29,560)EUR
        103,600
        
        USD
        147,249
        
        8/25/2009
        
        (421)EUR
        7,900
        
        USD
        11,241
        
        8/25/2009
        
        (19)EUR
        28,700
        
        USD
        40,838
        
        8/25/2009
        
        (70)EUR
        352,200
        
        USD
        498,870
        
        8/25/2009
        
        (3,150)EUR
        68,300
        
        USD
        96,033
        
        8/25/2009
        
        (1,321)GBP
        7,500,000
        
        USD
        12,415,613
        
        9/16/2009
        
        (116,742)JPY
        2,300,000,000
        
        USD
        24,226,975
        
        9/16/2009
        
        (109,645)
     CAD
        6,250,000
        
        USD
        5,757,800
        
        9/16/2009
        
        (36,064)EUR
        6,750,000
        
        USD
        9,621,484
        
        9/16/2009
        
        (16,020)Total unrealized depreciation
        
        
        
        
        
        (1,086,936)Currency AbbreviationsARS
        Argentine Peso
        GBP
        British PoundAUD
        Australian Dollar
        JPY
        Japanese YenBRL
        Brazilian Real
        NOK
        Norwegian KroneCAD
        Canadian Dollar
        NZD
        New Zealand DollarCHF
        Swiss Franc
        SEK
        Swedish KronaEUR
        Euro
        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 July 31, 2009 in valuing the Fund's investments:  Level 1
        Level 2
        Level 3
        TotalAssetsFixed Income(l)Corporate Bonds
        $                    
        $      218,078,362
        $      6,484,594
        $       224,562,956Mortgage-Backed Securities Pass-Throughs
        
        8,188,125
        
        8,188,125Asset-Backed
        
        6,047,627
        827,357
        6,874,984Commercial Mortgage-Backed Securities
        
        8,707,718
        
        8,707,718Collateralized Mortgage Obligations
        
        11,727,670
        
        11,727,670Government & Agency Obligations
        
        95,043,122
        3,796,529
        98,839,651Loan Participations and Assignments
        
        10,263,669
        615,551
        10,879,220Preferred Securities
        
        1,971,588
        
        1,971,588Common StocksConsumer Discretionary
        
        10,957
        
        10,957Materials
        
        
        9,838
        9,838Convertible Preferred Stocks(l)
        
        0
        
        0Warrants(l)
        
        
        3,751
        3,751Open End Investment Company
        9,426,868
        
        
        9,426,868Short-Term Investments(l)
        6,151,050
        9,619,383
        
        15,770,433Derivatives(m)
        
        1,375,924
        
        1,375,924Total
        $      15,577,918
        $       371,034,145
        $    11,737,620
        $        398,349,683LiabilitiesDerivatives(m)
        $         (420,439)
        $         (1,338,465)
        $                  
        $         (1,758,904)Total
        $         (420,439)
        $         (1,338,465)
        $                  
        $         (1,758,904)(l)
        See Investment Portfolio for additional detailed categorizations.(m)
        Derivatives include unrealized appreciation (depreciation) on open futures contracts, credit default swap contracts, interest rate swap contracts, total return swap contracts and forward foreign currency exchange contracts and value of options purchased.
    The following is a reconciliation of the Fund's Level 3 investments for which significant unobservable inputs were used in determining value:  Corporate Bonds
        Asset-Backed
        Government & Agency Obligations
        Loan Participations and Assignments
        Other Investments
        Common Stocks
        Warrants
        TotalBalance as of
October 31, 2008
        $   3,494,417
        $                   
        $      2,400,000
        $                   
        $      207,900
        $      9,838
        $         5,850
        $   6,118,005Total realized gain (loss)
        (17,100)
        
        
        215
        
        
        
        (16,885)Change in unrealized appreciation (depreciation)
        (182,667)
        
        94,242
        (74,667)
        63,727
        
        (72,320)
        (171,685)Amortization premium/discount
        5,309
        
        5,729
        5,650
        397
        
        
        17,085Net purchases (sales)
        2,848,906
        827,357
        848,127
        457,032
        (272,024)
        
        70,221
        4,779,619Net transfers in (out) of Level 3
        335,729
        
        448,431
        227,321
        
        
        
        1,011,481Balance as of
July 31, 2009
        $   6,484,594
        $          827,357
        $       3,796,529
        $          615,551
        $               
        $      9,838
        $         3,751
        $ 11,737,620Net change in unrealized appreciation (depreciation) from investments still held at July 31, 2009
        $   (282,531)
        $                   
        $            94,242
        $         (74,667)
        $               
        $           
        $     (72,320)
        $   (335,276)
     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 July 31, 2009. Please see below for information on the Funds policy regarding the objectives and strategies for using futures, options, forward foreign currency exchange contracts and swaps.   Primary Underlying Risk Disclosure
        Futures
        Forward Currency Contracts
        Swaps
        OptionsInterest Rate Contracts
        $        (90,126)
        $                 
        $      (251,529)
        $           10,719Foreign Exchange Contracts
        $                 
        $          35,093
        $                 
        $                Credit Contracts
        $                 
        $                 
        $                  0
        $                Equity Contracts
        $      (330,313)
        $                 
        $                 
        $                
  Futures.  The Fund is subject to interest rate and equity risk.  The Fund may use futures contracts in circumstances where the portfolio management team believes they offer economical means of gaining exposure to a particular asset class or to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the bond market.  The Fund may also invest in future contracts as part of its global tactical asset allocation overlay strategy to enhance returns.   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 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 futures contracts 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. Fund is subject to foreign exchange rate risk in its securities denominated in foreign currencies. Fund may enter into forward currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign currency denominated portfolio holdings and to facilitate transactions in foreign currency denominated securities.   Changes in exchange rates between foreign currencies and the US dollar may affect the US dollar value of foreign securities or the income or gains received on these securities. To reduce the effect of currency fluctuations, the Fund may enter into forward foreign currency exchange contracts. The Fund may also invest in forward currency contracts as part of its global tactical asset allocation overlay strategy. 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.  Swaps. The value of the Fund's underlying bond investments are subject to interest rate risk.  As interest rates increase, the value of the Fund's fixed rate bonds may fall.  The longer the duration of the funds securities, the more sensitive the Fund will be to interest rate changes.  To help mitigate this interest rate risk, the Fund invests in interest rate swap contracts to reduce the duration of the investment portfolio.  The Fund may buy/sell credit default swap contracts to obtain short/long exposure to certain bonds. Under certain circumstances, this may be a more efficient way for the fund to create exposure to an issuer than trading for the actual underlying bonds themselves.   The Fund may enter into total return swap transactions to hedge against market and interest rate risk or to enhance returns.  The maximum counterparty credit risk to the Fund is measured by the current value of the
contract, in addition to any related collateral posted to the counterparty by the Fund. This risk may be partially reduced by a master netting arrangement between the Fund and the counterparty.  Options.  The Fund is subject to interest rate 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 themarket 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.  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.
        EXHIBITSCertification 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 Income FundBy:
        /s/Michael G. Clark
Michael G. Clark
PresidentDate:
        September 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 Income FundBy:
        /s/Michael G. Clark
Michael G. Clark
PresidentDate:
        September 23, 2009By:
        /s/Paul Schubert
Paul Schubert
Chief Financial Officer and TreasurerDate:
        September 23, 2009