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  811-5565

DWS Mutual Funds, 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:  10/31

Date of reporting period: 7/31/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

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

 

 

**DWS Gold & Precious Metals Fund**

 

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

**Common Stocks and Warrants 90.2%**

 
**Australia 10.6%**

 
Andean Resources Ltd.*  

 

2,833,453 

 

4,558,659 

 
Kingsgate Consolidated Ltd.*  

 

1,222,342 

 

7,105,023 

 
Mineral Deposits Ltd.*  

 

6,307,000 

 

3,692,401 

 
Newcrest Mining Ltd.  

 

821,092 

 

20,601,603 

 
Regis Resources Ltd.*  

 

5,400,200 

 

2,596,962 

 
Sino Gold Mining Ltd.*  

 

3,149,229 

 

13,933,103 

 
St. Barbara Ltd.*  

 

2,016,000 

 

328,786 

 
Sylvania Resources Ltd.*  

 

3,823,200 

 

3,853,026 

 
(Cost $49,476,558)

 

**56,669,563**

 
**Bermuda 0.8%**

 
Aquarius Platinum Ltd. (a) (Cost $8,421,739)

 

984,996 

 

**4,278,006**

 
 

 

**Canada 47.7%**

 
Agnico-Eagle Mines Ltd.  

 

354,753 

 

20,770,788 

 
Alamos Gold, Inc.* (b)  

 

188,782 

 

1,698,118 

 
Anatolia Minerals Development Ltd.*  

 

1,510,259 

 

3,785,286 

 
Barrick Gold Corp.  

 

1,537,064 

 

53,677,742 

 
Bear Creek Mining Corp.*  

 

1,060,470 

 

1,673,520 

 
Eldorado Gold Corp.*  

 

1,554,225 

 

15,625,209 

 
Exeter Resource Corp.* (c) 

 

387,300 

 

1,186,438 

 
Franco-Nevada Corp.  

 

213,145 

 

5,322,442 

 
Gammon Gold, Inc.*  

 

443,870 

 

3,106,781 

 
Goldcorp, Inc.  

 

1,340,080 

 

50,641,341 

 
Great Basin Gold Ltd.*  

 

686,335 

 

1,000,275 

 
Guyana Goldfields, Inc.* (d)  

 

637,848 

 

2,267,772 

 
IAMGOLD Corp.  

 

1,596,069 

 

16,920,035 

 
Kinross Gold Corp.  

 

2,289,753 

 

45,168,022 

 
Kinross Gold Corp. (Warrants) Expiration Date 9/3/2013*  

 

134,683 

 

575,114 

 
Red Back Mining, Inc.* (a) 

 

799,152 

 

7,425,863 

 
Romarco Minerals, Inc.* (e) 

 

2,808,800 

 

2,398,790 

 
Sandstorm Resources, Inc.*  

 

4,095,800 

 

1,786,982 

 
Sandstorm Resources, Inc. (Warrants) Expiration Date 4/23/2014*  

 

2,047,900 

 

437,240 

 
Silver Wheaton Corp.*  

 

798,097 

 

7,326,530 

 
Yamana Gold, Inc.  

 

1,349,125 

 

12,804,162 

 
(Cost $214,522,460)

 

**255,598,450**

 
**China 1.7%**

 
Zijin Mining Group Co., Ltd. "H"  (Cost $6,442,876)

 

10,000,000 

 

**9,367,681**

 
**Papua New Guinea 3.5%**

 
Lihir Gold Ltd.*  (Cost $18,665,059)

 

8,208,947 

 

**19,017,576**

 
**Peru 1.0%**

 
Compania de Minas Buenaventura SA (ADR)  (Cost $3,968,891)

 

202,634 

 

**5,278,616**

 
**South Africa 12.4%**

 
AngloGold Ashanti Ltd.  

 

779,358 

 

29,728,088 

 
AngloGold Ashanti Ltd. (ADR)  

 

81,655 

 

3,200,876 

 
Gold Fields Ltd.  

 

727,300 

 

8,664,805 

 
Harmony Gold Mining Co., Ltd.*  

 

432,700 

 

3,914,374 

 
Impala Platinum Holdings Ltd. (ADR)  

 

863,450 

 

20,964,566 

 
(Cost $67,429,308)

 

**66,472,709**

 
**United Kingdom 3.5%**

 
Randgold Resources Ltd. (ADR)  (Cost $11,287,155)

 

297,901 

 

**18,505,610**

 
**United States 9.0%**

 
Newmont Mining Corp.  (Cost $51,016,005)

 

1,167,200 

 

**48,263,720**

 
**Total Common Stocks and Warrants** (Cost $431,230,051)

 

**483,451,931**

 
 

**Exchange-Traded Fund 0.8%**

 
SPDR Gold Trust*  (Cost $4,090,793)

 

45,000 

 

**4,200,750**

 
 

**Troy****Ounces**

 

**Value ($)**

 
 

**Commodities 0.9%**

 
Gold Bullion*  (Cost $4,255,879)

 

5,171 

 

**4,933,304**

 
 

 

 

**Shares**

 

**Value ($)**

 
 

**Cash Equivalents 8.3%**

 
Cash Management QP Trust, 0.27% (f)(Cost $44,548,020)

 

 

44,548,020

 

**44,548,020**

 
 

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

 

**Value ($)**

 
**Total Consolidated Investment Portfolio** (Cost $484,124,743) †

100.2

 

**537,134,005**

 
**Other Assets and Liabilities, Net**

(0.2)

 

**(1,095,222)**

 
**Net Assets**

100.0

 

**536,038,783**

 
*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 $493,105,627. At July 31, 2009, net unrealized appreciation for all securities based on tax cost was $44,028,378.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $86,608,131 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $42,579,753.*

 
*(a)*

*Security is listed in country of domicile.  Significant business activities of company are in Africa.*

 
*(b)*

*Security is listed in country of domicile.  Significant business activities of company are in Mexico.*

 
*(c)*

*Security is listed in country of domicile.  Significant business activities of company are in Latin America.*

 
*(d)*

*Security is listed in country of domicile.  Significant business activities of company are in Guyana.*

 
*(e)*

*Security is listed in country of domicile. Significant business activities of company are in Mexico and the United States.*

 
*(f)*

*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*

 
*SPDR: Standard & Poor's Depositary Receipt*

 
 

 

 
*At July 31, 2009, the DWS Gold & Precious Metals Fund had the following Quality Distribution:*

 

***Quality Distribution (As a % of Common Stocks)*****

* *

 
***Group breakdown of the Fund's common stocks*****

* *

 
***Group I:*****

* *

 
*Premier producing companies***

*60%***

 
* *

* *

 
***Group II:*****

* *

 
*Major established producers***

*28%***

 
* *

* *

 
***Group III:*****

* *

 
*Junior producers with medium cost production***

*6%***

 
* *

* *

 
***Group IV:*****

* *

 
*Companies with some production on stream or in start-up***

*3%***

 
* *

* *

 
***Group V:*****

* *

 
*Primarily exploration companies with or without mineral resources***

*3%***

 
 **

*100%***

 
 

***Investment in Subsidiary***

 

*The Fund may seek exposure to the commodities markets by investing a portion of its assets in a wholly owned subsidiary organized under the laws of the Cayman Islands (the "Subsidiary"). Among other investments, the Subsidiary may invest in gold coin and bullion and other precious metals and commodity-linked derivative instruments, such as swaps, futures, and exchange traded funds. The Subsidiary may also invest in debt securities, some of which are intended to serve as margin or collateral for the Subsidiary’s derivative positions. As of July 31, 2009, the Fund held $4,545,000 in the Subsidiary, representing 0.8% of the Fund's net assets. The Fund’s Investment Portfolio has been consolidated and includes the accounts of the Fund and the Subsidiary.*

 

***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(g)

 

 

 

 

Australia

$        1,129,543                   

$          55,540,020                   

$                  —                   

$       56,669,563     

Bermuda

—

4,278,006

—

4,278,006

Canada

255,598,450

—

—

255,598,450

China

—

9,367,681

—

9,367,681

Papua New Guinea

—

19,017,576

—

19,017,576

Peru

5,278,616

—

—

5,278,616

South Africa

24,165,442

42,307,267

—

66,472,709

United Kingdom

18,505,610

—

—

18,505,610

United States

48,263,720

—

—

48,263,720

Exchange-Traded Fund

4,200,750

—

—

4,200,750

Commodities

4,933,304

—

—

4,933,304

Short-Term Investments(g)

—

44,548,020

—

44,548,020

**Total**

**$    362,075,435**

**$        175,058,570**

**$                  —**

**$     537,134,005**

 

 

 

 

 
*(g)*

*See Consolidated Investment Portfolio for additional detailed categorizations.*

 

**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 Gold & Precious Metals Fund, a series of DWS Mutual Funds, Inc.

 

 

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 Gold & Precious Metals Fund, a series of DWS Mutual Funds, Inc.

 

 

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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