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  811-06600

DWS Value Builder Fund, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

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

Date of fiscal year end:  03/31

Date of reporting period: 06/30/08

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of June 30, 2008  (Unaudited)** |
|----------------------|--------------------------------------|

 

 

**DWS Value Builder Fund**

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Value ($)** |
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|        |
|   | **Common Stocks 59.2%** |  
**Consumer Discretionary 2.1%**

 
**Hotels Restaurants & Leisure 0.7%**

 
Carnival Corp. (Unit)  

 

14,600 

 

481,216 

Pinnacle Entertainment, Inc.*  

 

31,200 

 

327,288 

 

**808,504**

**Multiline Retail 0.5%**

 
Family Dollar Stores, Inc.  

 

14,100 

 

281,154 

Kohl's Corp.*  

 

7,000 

 

280,280 

 

**561,434**

**Specialty Retail 0.9%**

 
Abercrombie & Fitch Co. "A"  

 

9,300 

 

582,924 

 

 

 

 

Lowe's Companies, Inc.  

 

22,400 

 

464,800 

 

**1,047,724**

**Consumer Staples 6.7%**

 
**Beverages 0.7%**

 
Diageo PLC (ADR)  

 

11,000 

 

**812,570**

**Food & Staples Retailing 1.8%**

 
CVS Caremark Corp.  

 

53,000 

 

**2,097,210**

**Food Products 0.9%**

 
Dean Foods Co.*  

 

18,000 

 

353,160 

Unilever NV (NY Shares)  

 

26,600 

 

755,440 

 

**1,108,600**

**Tobacco 3.3%**

 
Altria Group, Inc.  

 

30,600 

 

629,136 

Lorillard, Inc.*  

 

11,300 

 

781,508 

Philip Morris International, Inc.*  

 

26,400 

 

1,303,896 

UST, Inc.  

 

19,800 

 

1,081,278 

 

**3,795,818**

**Energy 9.2%**

 
**Energy Equipment & Services 0.4%**

 
Schlumberger Ltd.  

 

4,500 

 

**483,435**

**Oil, Gas & Consumable Fuels 8.8%**

 
Anadarko Petroleum Corp.  

 

7,100 

 

531,364 

BP PLC (ADR)  

 

5,500 

 

382,635 

Chevron Corp.  

 

17,100 

 

1,695,123 

ConocoPhillips  

 

10,200 

 

962,778 

Devon Energy Corp.  

 

4,500 

 

540,720 

ExxonMobil Corp.  

 

39,000 

 

3,437,070 

Hess Corp.  

 

10,100 

 

1,274,519 

Marathon Oil Corp.  

 

15,300 

 

793,611 

Occidental Petroleum Corp.  

 

6,100 

 

548,146 

 

**10,165,966**

**Financials 14.6%**

 
**Capital Markets 2.9%**

 
Ameriprise Financial, Inc.  

 

16,900 

 

687,323 

Lazard Ltd. "A"  

 

20,200 

 

689,830 

Morgan Stanley  

 

7,000 

 

252,490 

TD Ameritrade Holding Corp.*  

 

61,500 

 

1,112,535 

The Goldman Sachs Group, Inc.  

 

3,600 

 

629,640 

 

**3,371,818**

**Commercial Banks 2.7%**

 
BB&T Corp.  

 

12,800 

 

291,456 

PNC Financial Services Group, Inc.  

 

17,700 

 

1,010,670 

UnionBanCal Corp.  

 

12,100 

 

489,082 

Wachovia Corp.  

 

6,700 

 

104,051 

Wells Fargo & Co.  

 

52,000 

 

1,235,000 

 

**3,130,259**

**Consumer Finance 0.4%**

 
Discover Financial Services  

 

35,100 

 

**462,267**

**Diversified Financial Services 3.4%**

 
Bank of America Corp.  

 

41,900 

 

1,000,153 

Citigroup, Inc.  

 

72,000 

 

1,206,720 

 

 

 

 

JPMorgan Chase & Co.  

 

51,200 

 

1,756,672 

 

**3,963,545**

**Insurance 4.1%**

 
Allstate Corp.  

 

33,300 

 

1,518,147 

American International Group, Inc.  

 

18,400 

 

486,864 

Lincoln National Corp.  

 

7,500 

 

339,900 

Loews Corp.  

 

46,100 

 

2,162,090 

Phoenix Companies, Inc.  

 

34,100 

 

259,501 

 

**4,766,502**

**Thrifts & Mortgage Finance 1.1%**

 
New York Community Bancorp., Inc.  

 

71,600 

 

**1,277,344**

**Health Care 6.6%**

 
**Health Care Equipment & Supplies 2.3%**

 
Baxter International, Inc.  

 

27,500 

 

1,758,350 

Zimmer Holdings, Inc.*  

 

12,800 

 

871,040 

 

**2,629,390**

**Life Sciences Tools & Services 0.9%**

 
PerkinElmer, Inc.  

 

40,200 

 

**1,119,570**

**Pharmaceuticals 3.4%**

 
Abbott Laboratories  

 

27,600 

 

1,461,972 

Merck & Co., Inc.  

 

23,500 

 

885,715 

Novartis AG (ADR)  

 

8,200 

 

451,328 

Pfizer, Inc.  

 

17,600 

 

307,472 

Wyeth  

 

17,400 

 

834,504 

 

**3,940,991**

**Industrials 4.1%**

 
**Aerospace & Defense 1.0%**

 
Honeywell International, Inc.  

 

22,800 

 

**1,146,384**

**Electrical Equipment 0.4%**

 
Emerson Electric Co.  

 

8,400 

 

**415,380**

**Industrial Conglomerates 2.7%**

 
General Electric Co.  

 

95,700 

 

2,554,233 

Textron, Inc.  

 

12,400 

 

594,332 

 

**3,148,565**

**Information Technology 3.7%**

 
**Communications Equipment 0.7%**

 
Harris Corp.  

 

10,600 

 

535,194 

Nokia Oyj (ADR)  

 

14,400 

 

352,800 

 

**887,994**

**Semiconductors & Semiconductor Equipment 1.4%**

 
Intel Corp.  

 

37,100 

 

796,908 

Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)  

 

74,200 

 

809,522 

 

**1,606,430**

**Software 1.6%**

 
Microsoft Corp.  

 

32,800 

 

902,328 

Symantec Corp.*  

 

47,700 

 

922,995 

 

**1,825,323**

**Materials 2.5%**

 
**Containers & Packaging 0.7%**

 
Packaging Corp. of America  

 

21,600 

 

464,616 

 

 

 

 

Pactiv Corp.*  

 

15,700 

 

333,311 

 

**797,927**

**Metals & Mining 1.8%**

 
Alcoa, Inc.  

 

42,100 

 

1,499,602 

Goldcorp, Inc.  

 

12,100 

 

558,657 

 

**2,058,259**

**Telecommunication Services 5.4%**

 
**Diversified Telecommunication Services**

AT&T, Inc.  

 

94,100 

 

3,170,229 

Citizens Communications Co.  

 

116,800 

 

1,324,512 

FairPoint Communications, Inc.  

 

108 

 

779 

Verizon Communications, Inc.  

 

49,600 

 

1,755,840 

 

**6,251,360**

**Utilities 4.3%**

 
**Electric Utilities 1.8%**

 
FPL Group, Inc.  

 

30,800 

 

**2,019,864**

**Multi-Utilities 2.5%**

 
Sempra Energy  

 

25,100 

 

1,416,895 

Wisconsin Energy Corp.  

 

33,600 

 

1,519,392 

 

**2,936,287**

**Total Common Stocks** (Cost $69,605,694)

 

**68,636,720**

 

**Open End Investment Company 38.6%**

 
DWS Short Duration Plus Fund "S" (a)  (Cost $45,135,175)

 

4,649,071 

 

**44,817,040**

 

**Cash Equivalents 3.4%**

 
Cash Management QP Trust, 2.49%  (b)(Cost $3,898,550)

 

 

3,898,550

 

**3,898,550**

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $118,639,419) †

101.2

 

**117,352,310**

**Other Assets and Liabilities, Net**

(1.2)

 

**(1,419,395)**

**Net Assets**

100.0

 

**115,932,915**

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

***

*Non-income producing security.*

*†*

*The cost for federal income tax purposes was $118,967,439.  At June 30, 2008, net unrealized depreciation for all securities based on tax cost was $1,615,129.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $4,664,103 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $6,279,232.*

*(a)*

*DWS Short Duration Plus Fund, an affiliated fund, is managed by Deutsche Investment Management Americas Inc.*

*(b)*

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

*ADR: American Depositary Receipt*

 

*The following is a summary of the inputs used as of June 30, 2008 in valuing the Fund’s assets carried at fair value:*

 

**Valuation Inputs**

**Investments in  Securities at**

**Value**

Level 1 - Quoted Prices

$              117,352,310   

Level 2 - Other Significant

-   

Observable Inputs

 

 

 

 

Level 3 - Significant

-   

Unobservable Inputs

**Total**

**$              117,352,310**

 

*The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157"), effective December 1, 2007, which governs the application of generally accepted accounting principles that require fair value measurements of the Fund’s assets and liabilities.  Fair value is an estimate of  the price the Fund would receive upon selling a security in a timely transaction to an independent buyer in the principal or most advantageous market of the security. FAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherentin a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.*

 

*Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels as follows:*

 

 

**•**

*Level 1 – quoted prices in active markets for identical securities*

 

**•**

*Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)*

 

**•**

*Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)*

 

*For Level 1 inputs, the Fund uses unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.  The Fund’s Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly.  Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants.  Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates forsimilar liabilities.  For Level 3 valuation techniques, the Fund uses unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under the circumstances.  In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.*

 

*The Fund may record changes to valuations based on the amount that might reasonably be expected to receive for a security upon its current sale consistent with the fair value measurement objective.  Each determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another.  Examples of such factors may include, but are not limited to the type of the security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issue or of comparable companies, quotations or evaluated prices from broker-dealers and/or pricing services, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s financial statements, an evaluation of the forces that influence the issuer and themarket(s) in which the security is purchased and sold, and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination, and the movement of the market in which the security is normally traded.   Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value determined upon sale of those investments.*

 

 

**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 Value Builder Fund, a series of DWS Value Builder Fund, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

August 20, 2008

 

 

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 Value Builder Fund, a series of DWS Value Builder Fund, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

August 20, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        August 20, 2008

 

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