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 811-5896

DWS Target 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:04/30

Date of reporting period:07/31/08

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of July 31, 2008 (Unaudited)** |
|----------------------|-------------------------------------|

 

 

**DWS LifeCompass Income Fund**

 

 

|                | **Principal****Amount ($)**       |   | **Value ($)** |
|---------------------|-----------------------------------|--------|---------------|
|                     |
|                | **US Treasury Obligations 85.0%** |   |
| US Treasury Bills:  |                              |
|                | 1.35% *, 10/16/2008 (a)           |   | 817,000       |   | 814,228 |
|                | 1.785% *, 8/14/2008               |   | 1,502,000     |   | 1,501,248 |
| US Treasury STRIPS: |                              |
|                | 2.342% **, 5/15/2009              |   | 1,392,000     |   | 1,371,603 |
|                | 2.463% **, 11/15/2011             |   | 1,390,000     |   | 1,278,027 |
|                | 2.467% **, 11/15/2009             |   | 1,391,000     |   | 1,351,803 |
|                | 2.5% **, 11/15/2008               |   | 1,393,000     |   | 1,385,873 |
|                | 2.558% **, 5/15/2010              |   | 1,392,000     |   | 1,333,607 |
|                | 2.562% **, 5/15/2011              |   | 1,390,000     |   | 1,291,247 |
|                | 2.574% **, 11/15/2010             |   | 1,391,000     |   | 1,314,402 |
|                     |                                   |        |               |  |  |  |  |  |

 

 

----

 

 

|                                                                                                                                                                                                          | 2.781% **, 5/15/2012                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 1,390,000      |          | 1,243,091   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|----------------|---------------|-------------|
|                                                                                                                                                                                                          | 3.068% **, 11/15/2012                                                                                                                                                                                                                                                                                                                                                                                                                    |                   | 1,390,000      |          | 1,212,036   |
|                                                                                                                                                                                                          | 3.215% **, 5/15/2013                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 1,390,000      |          | 1,186,106   |
|                                                                                                                                                                                                          | 3.29% **, 11/15/2013                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 1,389,000      |          | 1,160,944   |
|                                                                                                                                                                                                          | 3.472% **, 5/15/2014                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 1,389,000      |          | 1,135,595   |
|                                                                                                                                                                                                          | 3.55% **, 11/15/2014                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 1,389,000      |          | 1,109,819   |
|                                                                                                                                                                                                          | 3.717% **, 5/15/2015                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 1,390,000      |          | 1,080,846   |
|                                                                                                                                                                                                          | 3.834% **, 11/15/2015                                                                                                                                                                                                                                                                                                                                                                                                                    |                   | 1,389,000      |          | 1,050,429   |
|                                                                                                                                                                                                          | 3.924% **, 5/15/2016                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 1,388,000      |          | 1,017,239   |
|                                                                                                                                                                                                          | 4.006% **, 11/15/2016                                                                                                                                                                                                                                                                                                                                                                                                                    |                   | 1,388,000      |          | 986,672     |
|                                                                                                                                                                                                          | 4.101% **, 5/15/2017                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 1,387,000      |          | 955,947     |
|                                                                                                                                                                                                          | 4.136% **, 11/15/2017                                                                                                                                                                                                                                                                                                                                                                                                                    |                   | 6,940,000      |          | 4,661,723   |
|                                                                                                                                                                                                               |
| **Total US Treasury Obligations**(Cost $28,591,302)                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                     | **28,442,485**         |
|                                                                                                                                                                                                          | **Shares**                                                                                                                                                                                                                                                                                                                                                                                                                               |                   | **Value ($)**  |
|                                                                                                                                                                                                               |
|                                                                                                                                                                                                          | **Exchange Traded Funds 12.4%**                                                                                                                                                                                                                                                                                                                                                                                                          |                   |
| iShares MSCI EAFE Index Fund                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                     | 13,660                 |           | 906,887       |
| Midcap SPDR Trust, Series 1                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2,500                  |           | 365,225       |
| SPDR Trust, Series 1                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                     | 22,770                 |           | 2,887,919     |
|                                                                                                                                                                                                               |
| **Total Exchange Traded Funds**(Cost $4,494,765)                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                     | **4,160,031**          |
|                                                                                                                                                                                                          | **Cash Equivalents 2.5%**                                                                                                                                                                                                                                                                                                                                                                                                                |                   |
| Cash Management QP Trust, 2.42% (b)(Cost $827,218)                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | 827,218        |          | **827,218** |
|                                                                                                                                                                                                          | **% of****Net Assets**                                                                                                                                                                                                                                                                                                                                                                                                                   |                   | **Value ($)**  |
|                                                                                                                                                                                                               |
| **Total Investment Portfolio**(Cost $33,913,285) †                                                                                                                                                     | 99.9                                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | **33,429,734** |
| **Other Assets and Liabilities, Net**                                                                                                                                                                         | 0.1                                                                                                                                                                                                                                                                                                                                                                                                                                      |                   | **44,061**     |
|                                                                                                                                                                                                               |
| **Net Assets**                                                                                                                                                                                                | 100.0                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   | **33,473,795** |
| *For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.* |
| ***                                                                                                                                                                                                           | *Annualized yield at time of purchase; not a coupon rate.*                                                                                                                                                                                                                                                                                                                                                                               |
| ****                                                                                                                                                                                                          | *Bond equivalent yield to maturity; not a coupon rate.*                                                                                                                                                                                                                                                                                                                                                                                  |
| *†*                                                                                                                                                                                                    | *The cost for federal income tax purposes was $33,913,285. At July 31, 2008, net unrealized depreciation for all securities based on tax cost was $483,551. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $18,340 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $501,891.* |
| *(a)*                                                                                                                                                                                                         | *At July 31, 2008, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.*                                                                                                                                                                                                                                                                                                |
| *(b)*                                                                                                                                                                                                         | *Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.*                                                                                                                                                                                                                                                                                                |
| *MSCI: Morgan Stanley Capital International*                                                                                                                                                                  |
| *SPDR: Standard & Poor’s Depository Receipt*                                                                                                                                                        |
| *STRIPS: Separate Trading of Registered Interest and Principal Securities*                                                                                                                                    |
| *At July 31, 2008, open futures contracts purchased were as follows:*                                                                                                                                         |
| **Futures**                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                     | **Expiration****Date** |           | **Contracts** |        | **Aggregated****Face****Value ($)** |   | **Value ($)** |   | **Unrealized****Depreciation ($)** |
|                                                                                                                                                                                                               |
|                                                                                                                                                                                                          |
| E-Mini MSCI EAFE Index                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                     | 9/18/2008              |           | 4             |        | 411,049 |   | 377,860 |   | (33,189) |   |
| Russell E-Mini 2000 Index                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                     | 9/19/2008              |           | 9             |        | 664,641 |   | 643,950 |   | (20,691) |   |
|                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                          |                        |                |               |             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

 

----

 

 

| S&P Mid 400 E-Mini Index      |          | 9/19/2008 |   | 2  |   | 174,625   |   | 160,780   |   | (13,845) |
|-----------------------------------|---------------|-----------|--------|----|--------|-----------|--------|-----------|--------|----------|
| S&P Mini 500 Index            |          | 9/19/2008 |   | 20 |   | 1,359,997 |   | 1,267,100 |   | (92,897) |
| **Total unrealized depreciation** | **(160,622)** |

 

 

***Fair Value Measurements***

 

*The following is a summary of the inputs used as of July 31, 2008 in valuing the Fund’s assets carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. Please see below for information on the Fund’s policy regarding valuation inputs, and their aggregate levels used in the table            below.*

 

| **Valuation Inputs**        | **Investments in Securities at**

**Value** | **Net Unrealized Depreciation on Other Financial Instruments***††* |
|-----------------------------|---------------------------------------------|----------------------------------------------------------------------------------|
| Level 1 - Quoted Prices     | $ 4,987,249                                 | $ (160,622)                                                                      |
| Level 2 - Other Significant | 28,442,485                                  | -                                                                                |
| Observable Inputs           |
| Level 3 - Significant       | -                                           | -                                                                                |
| Unobservable Inputs         |
| **Total**                   | **$ 33,429,734**                            | **$ (160,622)**                                                                  |

 

*†† Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as future contracts, which are valued at the unrealized appreciation/depreciation on the instrument.*

 

*The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157") 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            inherent in 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 for similar 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 the market(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 LifeCompass Income Fund, a series of DWS Target Fund |
|-------------|----------------------------------------------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | September 16, 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 LifeCompass Income Fund, a series of DWS Target Fund |
|-------------|----------------------------------------------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | September 16, 2008 |
|-------|--------------------|

 

 

| By: | /s/Paul Schubert |
|-----|------------------|

|   | Paul Schubert |
|--------|---------------|

Chief Financial Officer and Treasurer

 

Date:                                        September 16, 2008