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  811-0547

DWS Technology 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 Technology Fund**

 

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

**Common Stocks 96.3%**

 
**Consumer Discretionary 0.8%**

 
**Internet & Catalog Retail**

 
Amazon.com, Inc.*  

 

31,100 

 

2,667,136 

 
Priceline.com, Inc.* (a) 

 

17,000 

 

2,203,540 

 
 

**4,870,676**

 
**Health Care 0.1%**

 
**Health Care Technology**

 
Medidata Solutions, Inc.* (a) 

 

31,800 

 

**586,710**

 
**Information Technology 95.4%**

 
**Communications Equipment 18.2%**

 
Brocade Communications Systems, Inc.*  

 

581,800 

 

4,572,948 

 
 

 

Cisco Systems, Inc.*  

 

1,392,789 

 

30,655,286 

 
Comverse Technology, Inc.*  

 

383,600 

 

3,034,276 

 
F5 Networks, Inc.*  

 

80,300 

 

2,980,736 

 
Harris Stratex Networks, Inc. "A"*  

 

20,171 

 

139,987 

 
Juniper Networks, Inc.* (a) 

 

272,500 

 

7,120,425 

 
Motorola, Inc.  

 

1,199,400 

 

8,587,704 

 
Polycom, Inc.* (a) 

 

212,100 

 

5,037,375 

 
QUALCOMM, Inc.  

 

726,654 

 

33,578,681 

 
Research In Motion Ltd.*  

 

155,300 

 

11,802,800 

 
Sonus Networks, Inc.* (a) 

 

1,000,100 

 

1,900,190 

 
 

**109,410,408**

 
**Computers & Peripherals 23.0%**

 
Apple, Inc.*  

 

274,300 

 

44,817,877 

 
EMC Corp.* (a) 

 

517,200 

 

7,789,032 

 
Hewlett-Packard Co.  

 

848,700 

 

36,748,710 

 
International Business Machines Corp.  

 

322,400 

 

38,020,632 

 
Lexmark International, Inc. "A"* (a) 

 

242,900 

 

3,517,192 

 
SanDisk Corp.* (a) 

 

154,300 

 

2,749,626 

 
Synaptics, Inc.* (a) 

 

192,050 

 

4,603,438 

 
 

**138,246,507**

 
**Electronic Equipment, Instruments & Components 1.4%**

 
Corning, Inc.  

 

502,400 

 

**8,540,800**

 
**Internet Software & Services 11.2%**

 
Akamai Technologies, Inc.*  

 

59,500 

 

978,180 

 
Digital River, Inc.*  

 

109,900 

 

3,884,965 

 
eBay, Inc.*  

 

367,200 

 

7,803,000 

 
Equinix, Inc.* (a) 

 

46,200 

 

3,775,926 

 
Google, Inc. "A"*  

 

92,500 

 

40,982,125 

 
LogMeIn, Inc.*  

 

154,800 

 

3,020,148 

 
Yahoo!, Inc.*  

 

489,700 

 

7,012,504 

 
 

**67,456,848**

 
**IT Services 5.5%**

 
Amdocs Ltd.*  

 

129,200 

 

3,090,464 

 
Cognizant Technology Solutions Corp. "A"*  

 

235,200 

 

6,959,568 

 
CyberSource Corp.* (a) 

 

143,100 

 

2,481,354 

 
Fiserv, Inc.*  

 

93,200 

 

4,418,612 

 
Global Payments, Inc.  

 

193,200 

 

8,172,360 

 
MasterCard, Inc. "A" (a) 

 

16,100 

 

3,123,883 

 
Visa, Inc. "A"  

 

71,800 

 

4,700,028 

 
 

**32,946,269**

 
**Semiconductors & Semiconductor Equipment 18.3%**

 
Applied Materials, Inc.  

 

203,100 

 

2,802,780 

 
ASML Holding NV (NY Registered Shares) (a) 

 

122,300 

 

3,181,023 

 
Atheros Communications* (a) 

 

130,600 

 

3,265,000 

 
Broadcom Corp. "A"*  

 

265,000 

 

7,480,950 

 
Cymer, Inc.* (a) 

 

80,100 

 

2,740,221 

 
FormFactor, Inc.* (a) 

 

89,900 

 

2,072,195 

 
Intel Corp.  

 

1,641,300 

 

31,595,025 

 
Intersil Corp. "A"  

 

165,900 

 

2,383,983 

 
KLA-Tencor Corp. (a) 

 

110,200 

 

3,513,176 

 
Lam Research Corp.* (a) 

 

76,800 

 

2,308,608 

 
Marvell Technology Group Ltd.*  

 

454,000 

 

6,056,360 

 
MediaTek, Inc.  

 

205,665 

 

2,955,713 

 
MEMC Electronic Materials, Inc.*  

 

61,700 

 

1,087,154 

 
 

 

Microchip Technology, Inc. (a) 

 

71,600 

 

1,928,188 

 
Microsemi Corp.*  

 

124,500 

 

1,699,425 

 
MKS Instruments, Inc.*  

 

85,600 

 

1,658,072 

 
Monolithic Power Systems* (a) 

 

120,000 

 

2,662,800 

 
National Semiconductor Corp. (a) 

 

125,000 

 

1,882,500 

 
Netlogic Microsystems, Inc.*  

 

125,600 

 

4,991,344 

 
NVIDIA Corp.*  

 

221,600 

 

2,865,288 

 
ON Semiconductor Corp.*  

 

304,800 

 

2,225,040 

 
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)  

 

487,590 

 

5,105,066 

 
Texas Instruments, Inc.  

 

459,400 

 

11,048,570 

 
Xilinx, Inc.  

 

115,300 

 

2,500,857 

 
 

**110,009,338**

 
**Software 17.8%**

 
Activision Blizzard, Inc.*  

 

382,100 

 

4,375,045 

 
Adobe Systems, Inc.*  

 

151,015 

 

4,895,907 

 
ANSYS, Inc.* (a) 

 

43,300 

 

1,353,558 

 
ArcSight, Inc.* (a) 

 

160,500 

 

3,044,685 

 
Ariba, Inc.* (a) 

 

498,100 

 

5,235,031 

 
BMC Software, Inc.*  

 

131,100 

 

4,461,333 

 
Check Point Software Technologies Ltd.*  

 

94,800 

 

2,530,212 

 
Citrix Systems, Inc.* (a) 

 

40,500 

 

1,441,800 

 
Electronic Arts, Inc.*  

 

104,700 

 

2,247,909 

 
Informatica Corp.*  

 

186,700 

 

3,433,413 

 
McAfee, Inc.*  

 

124,200 

 

5,536,836 

 
Microsoft Corp.  

 

1,281,900 

 

30,150,288 

 
Nintendo Co., Ltd.  

 

8,800 

 

2,379,836 

 
Oracle Corp.  

 

1,063,900 

 

23,544,107 

 
Salesforce.com, Inc.* (a) 

 

47,600 

 

2,062,984 

 
Symantec Corp.*  

 

371,400 

 

5,545,002 

 
VanceInfo Technologies, Inc. (ADR)*  

 

315,100 

 

4,773,765 

 
 

**107,011,711**

 
**Total Common Stocks** (Cost $446,116,140)

 

**579,079,267**

 
 

**Other Investments 1.2%**

 
Adams Capital Management III LP (1.2% limited partnership interest)* (b) 

 

— 

 

3,578,500 

 
Adams Capital Management LP (3.6% limited partnership interest)* (b) 

 

—

 

265,600 

 
Alloy Ventures 2000 LP (3.0% limited partnership interest)* (b) 

 

—

 

1,951,500 

 
Asset Management Association 1996 LP (2.5% limited partnership interest)* (b) 

 

—

 

83,000 

 
Asset Management Association 1998 LP (3.5% limited partnership interest)* (b) 

 

—

 

422,700 

 
Crosspoint Venture Partners 1993 LP (2.9% limited partnership interest)* (b) 

 

—

 

61,800 

 
GeoCapital III LP (5.0% limited partnership interest)* (b) 

 

—

 

21,800 

 
GeoCapital IV LP (2.9% limited partnership interest)* (b) 

 

—

 

493,500 

 
Med Venture Associates II LP (6.1% limited partnership interest)* (b) 

 

—

 

45,981 

 
Med Venture Associates III LP (2.7% limited partnership interest)* (b) 

 

—

 

214,738 

 
Sevin Rosen Fund V (2.8% limited partnership interest)* (b) 

 

—

 

131,100 

 
**Total Other Investments** (Cost $21,925,075)

 

**7,270,219**

 
 

**Securities Lending Collateral 10.0%**

 
Daily Assets Fund Institutional, 0.39% (c) (d)(Cost $59,802,719)

 

 

59,802,719

 

**59,802,719**

 
 

**Cash Equivalents 1.7%**

 
Cash Management QP Trust, 0.27% (c)(Cost $10,356,953)

 

 

10,356,953

 

**10,356,953**

 
 

 

 

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

 

**Value ($)**

 
**Total Investment Portfolio** (Cost $538,200,887) †

109.2

 

**656,509,158**

 
**Other Assets and Liabilities, Net**

(9.2)

 

**(55,364,037)**

 
**Net Assets**

100.0

 

**601,145,121**

 
*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 $548,954,610.  At July 31, 2009, net unrealized appreciation for all securities based on tax cost was $107,554,548.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $154,959,617 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $47,405,069.*

 
*(a)*

*All or a portion of these securities were on loan.  The value of all securities loaned at July 31, 2009 amounted to $56,296,431 which is 9.4% of net assets.*

 
*(b)*

*The Fund may purchase securities that are subject to legal or contractual restrictions on resale ("restricted securities").  Restricted securities are securities which have not been registered with the Securities and Exchange Commission under the Securities Act of 1933.  The Fund may be unable to sell a restricted security and it may be more difficult to determine a market value for a restricted security.  Moreover, if adverse market conditions were to develop during the period between the Fund's decision to sell a restricted security and the point at which the Fund is permitted or able to sell such security, the Fund might obtain a price less favorable than the price that prevailed when it decided to sell.  This investment practice, therefore, could have the effect of increasing the level of illiquidity of the Fund.  The future value of these securities is uncertain and there may be changes in the estimated value of thesesecurities.*

 
**Schedule of****Restricted Securities**

 

**Acquisition Date**

 

**Acquisition Cost ($)**

 

**Value ($)**

 

**Value as %****of Net Assets**

 
Adams Capital Management III LP**

 

October 1997 to 

April 2008

 

4,491,717

 

3,578,500

 

0.60

 
Adams Capital Management LP**

 

August 2000 to November 2000

 

1,863,749

 

265,600

 

0.04

 
Alloy Ventures 2000 LP**

 

April 2000 to 

August 2007

 

4,719,304

 

1,951,500

 

0.33

 
Asset Management Association 1996 LP**

 

June 1996 to 

July 2000

 

1,121,055

 

83,000

 

0.01

 
Asset Management Association 1998 LP**

 

December 1998 to November 2001

 

2,816,280

 

422,700

 

0.07

 
Crosspoint Venture Partners 1993 LP**

 

April 1993 to November 1998

 

132,184

 

61,800

 

0.01

 
GeoCapital III LP**

 

December 1993 to December 1996

 

341,738

 

21,800

 

0.00

 
GeoCapital IV LP**

 

April 1996 to 

March 2000

 

1,660,603

 

493,500

 

0.08

 
Med Venture Associates II LP**

 

May 1996 to 

January 2002

 

939,974

 

45,981

 

0.01

 
Med Venture Associates III LP**

 

September 1998 to May 2006

 

1,182,929

 

214,738

 

0.04

 
Sevin Rosen Fund V**

 

April 1996 to 

June 2001

 

2,264,216

 

131,100

 

0.02

 
**Total Restricted Securities**

 

 

 

**21,533,749**

 

**7,270,219**

 

**1.21**

 
****

*These securities represent venture capital funds.*

 
*(c)*

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

 
*(d)*

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

 
*ADR: American Depositary Receipt*

 
 

***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**

**Total**

 
**Assets**

 

 

 

 

 
Common Stock and/or Other Equity Investments

 

 

 

 

 
Consumer Discretionary

$            4,870,676            

$                        —    

$                  —   

$         4,870,676                   

 
Health Care

586,710

—

—

586,710

 
Information Technology

568,286,332

5,335,549

—

573,621,881

 
Other Investments

—

—

7,270,219

7,270,219

 
Short-Term Investments(e)

59,802,719

10,356,953

—

70,159,672

 
**Total**

**$        633,546,437**

**$         15,692,502**

**$      7,270,219**

**$     656,509,158**

 
 
*(e)*

*See Investment Portfolio for additional detailed categorizations.*

 

*The following is a reconciliation of the Fund’s Level 3 investments for which significant unobservable inputs were used in determining value:*

 

 

**Other Investments**

**Balance as of  October 31, 2008**

$     9,479,230

**Realized gains (loss)**

(6,995,970)

**Change in unrealized appreciation (depreciation)**

5,712,608

**Amortization premium/discount**

—

**Net purchases  (sales)**

(925,649)

**Net transfers in (out) of Level 3**

—

**Balance as of  July 31, 2009**

**$     7,270,219**

**Net change in unrealized appreciation (depreciation) from investments still held at    July 31, 2009**

**$  (1,353,522)**

 

**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 Technology Fund

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

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 Technology Fund

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

September 23, 2009

 

 

 

 

 

 

By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

 

 

Date:

September 23, 2009

 

 

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