-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HvW0yHwCcoxieerzGC1ebkAOwZbjw6igw+yhi0qZa5ZUJDkpwHxnFQTpSvb31fUQ G+cMlnan0EBHFY7d+tzWhQ== 0000088053-08-000439.txt : 20080428 0000088053-08-000439.hdr.sgml : 20080428 20080428170417 ACCESSION NUMBER: 0000088053-08-000439 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080229 FILED AS OF DATE: 20080428 DATE AS OF CHANGE: 20080428 EFFECTIVENESS DATE: 20080428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DWS MULTI-MARKET INCOME TRUST CENTRAL INDEX KEY: 0000842905 IRS NUMBER: 366894335 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05689 FILM NUMBER: 08781951 BUSINESS ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154-0004 BUSINESS PHONE: 212-454-6778 MAIL ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154-0004 FORMER COMPANY: FORMER CONFORMED NAME: SCUDDER MULTI MARKET INCOME TRUST DATE OF NAME CHANGE: 20010123 FORMER COMPANY: FORMER CONFORMED NAME: KEMPER MULTI MARKET INCOME TRUST DATE OF NAME CHANGE: 19920703 N-Q 1 nq022908mmi.htm N-Q FILING - DWS MULTI-MARKET INCOME TRUST

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 811-5689

DWS Multi-Market Income Trust

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY 10154-0004

(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: 11/30

Date of reporting period: 02/29/08

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

Investment Portfolio

as of February 29, 2008 (Unaudited)

 

 

 

DWS Multi-Market Income Trust

 

 

Principal
Amount ($)(a)

 

Value ($)

 

Corporate Bonds 50.7%

 

Consumer Discretionary 10.5%

 

AAC Group Holding Corp., 14.75%, 10/1/2012 (PIK)

 

 

196,115

 

165,717

Affinia Group, Inc., 9.0%, 11/30/2014

 

 

420,000

 

371,700

AMC Entertainment, Inc., 8.0%, 3/1/2014

 

 

625,000

 

526,562

American Achievement Corp., 8.25%, 4/1/2012

 

 

110,000

 

99,550

American Media Operations, Inc., Series B, 144A, 10.25%, 5/1/2009

 

 

5,998

 

4,109

Asbury Automotive Group, Inc.:

 

 

7.625%, 3/15/2017

 

 

255,000

 

201,450

 

8.0%, 3/15/2014

 

 

165,000

 

142,725

Ashtead Holdings PLC, 144A, 8.625%, 8/1/2015 (b)

 

 

300,000

 

244,500

Burlington Coat Factory Warehouse Corp., 11.125%, 4/15/2014

 

 

250,000

 

202,500

Cablevision Systems Corp., Series B, 9.644% **, 4/1/2009

 

 

115,000

 

115,000

 

 


 

 

CanWest MediaWorks LP, 144A, 9.25%, 8/1/2015

 

 

205,000

 

192,700

Carrols Corp., 9.0%, 1/15/2013 (b)

 

 

120,000

 

109,200

Charter Communications Holdings LLC:

 

 

10.25%, 9/15/2010

 

 

1,180,000

 

1,079,700

 

Series B, 10.25%, 9/15/2010

 

 

420,000

 

381,150

 

11.0%, 10/1/2015

 

 

491,000

 

341,245

Cirsa Capital Luxembourg, 144A, 7.875%, 7/15/2012

EUR

 

150,000

 

165,099

Cooper-Standard Automotive, Inc., 8.375%, 12/15/2014

 

 

165,000

 

123,750

CSC Holdings, Inc.:

 

 

7.25%, 7/15/2008

 

 

190,000

 

190,475

 

Series B, 8.125%, 7/15/2009

 

 

985,000

 

1,002,237

 

Series B, 8.125%, 8/15/2009

 

 

440,000

 

447,700

Denny's Corp. Holdings, Inc., 10.0%, 10/1/2012 (b)

 

 

80,000

 

75,600

Dollarama Group LP, 10.579% **, 8/15/2012

 

 

201,000

 

196,478

EchoStar DBS Corp.:

 

 

6.625%, 10/1/2014

 

 

355,000

 

341,687

 

7.125%, 2/1/2016

 

 

275,000

 

270,188

Fontainebleau Las Vegas Holdings LLC, 144A, 10.25%, 6/15/2015

 

 

315,000

 

226,800

Foot Locker, Inc., 8.5%, 1/15/2022

 

 

70,000

 

63,000

French Lick Resorts & Casinos LLC, 144A, 10.75%, 4/15/2014

 

 

950,000

 

574,750

General Motors Corp.:

 

 

7.2%, 1/15/2011

 

 

795,000

 

719,475

 

7.4%, 9/1/2025

 

 

150,000

 

111,750

Goodyear Tire & Rubber Co., 11.25%, 3/1/2011

 

 

1,815,000

 

1,914,825

Great Canadian Gaming Corp., 144A, 7.25%, 2/15/2015

 

 

220,000

 

207,900

Group 1 Automotive, Inc., 8.25%, 8/15/2013 (b)

 

 

125,000

 

118,750

Hanesbrands, Inc., Series B, 8.204% **, 12/15/2014

 

 

370,000

 

325,600

Hertz Corp.:

 

 

8.875%, 1/1/2014

 

 

595,000

 

566,737

 

10.5%, 1/1/2016 (b)

 

 

135,000

 

128,250

Idearc, Inc., 8.0%, 11/15/2016

 

 

1,390,000

 

820,100

Indianapolis Downs LLC, 144A, 11.0%, 11/1/2012

 

 

160,000

 

144,000

ION Media Networks, Inc., 144A, 10.508% **, 1/15/2013

 

 

195,000

 

150,394

Isle of Capri Casinos, Inc., 7.0%, 3/1/2014

 

 

370,000

 

252,525

Jarden Corp., 7.5%, 5/1/2017

 

 

210,000

 

184,013

Kabel Deutschland GmbH, 10.625%, 7/1/2014

 

 

320,000

 

304,000

Lamar Media Corp., Series C, 6.625%, 8/15/2015 (b)

 

 

160,000

 

147,200

 

 

 

 

 

 

Liberty Media LLC:

 

 

5.7%, 5/15/2013

 

 

35,000

 

31,296

 

8.25%, 2/1/2030 (b)

 

 

320,000

 

266,631

 

8.5%, 7/15/2029 (b)

 

 

420,000

 

359,519

Mediacom Broadband LLC, 8.5%, 10/15/2015

 

 

25,000

 

19,750

MediMedia USA, Inc., 144A, 11.375%, 11/15/2014

 

 

110,000

 

113,300

MGM MIRAGE:

 

 

6.0%, 10/1/2009

 

 

185,000

 

184,075

 

6.75%, 9/1/2012

 

 

115,000

 

108,100

 

8.375%, 2/1/2011 (b)

 

 

245,000

 

246,225

MTR Gaming Group, Inc., Series B, 9.75%, 4/1/2010

 

 

345,000

 

334,650

Norcraft Holdings/Capital, Step-up Coupon, 0% to 9/1/2008, 9.75% to 9/1/2012

 

 

680,000

 

591,600

Penske Automotive Group, Inc., 7.75%, 12/15/2016

 

 

620,000

 

530,100

Pinnacle Entertainment, Inc., 8.75%, 10/1/2013

 

 

260,000

 

252,200

Quebecor Media, Inc., 144A, 7.75%, 3/15/2016

 

 

160,000

 

146,800

Quebecor World, Inc., 144A, 9.75%, 1/15/2015 * (b)

 

 

205,000

 

100,450

Quiksilver, Inc., 6.875%, 4/15/2015

 

 

320,000

 

252,800

Reader's Digest Association, Inc., 144A, 9.0%, 2/15/2017

 

 

185,000

 

133,200

 

 


 

 

Sabre Holdings Corp., 8.35%, 3/15/2016

 

 

225,000

 

173,813

Seminole Hard Rock Entertainment, Inc., 144A, 7.491% **, 3/15/2014

 

 

290,000

 

226,200

Shingle Springs Tribal Gaming Authority, 144A, 9.375%, 6/15/2015

 

 

210,000

 

186,900

Simmons Co.:

 

 

Step-up Coupon, 0% to 12/15/2009, 10.0% to 12/15/2014

 

 

820,000

 

547,350

 

7.875%, 1/15/2014

 

 

175,000

 

140,875

Sinclair Television Group, Inc., 8.0%, 3/15/2012 (b)

 

 

111,000

 

113,220

Sirius Satellite Radio, Inc., 9.625%, 8/1/2013

 

 

375,000

 

309,375

Sonic Automotive, Inc., Series B, 8.625%, 8/15/2013

 

 

250,000

 

232,813

Station Casinos, Inc., 6.5%, 2/1/2014

 

 

500,000

 

333,750

Travelport LLC:

 

 

9.749% **, 9/1/2014

 

 

185,000

 

148,000

 

9.875%, 9/1/2014

 

 

220,000

 

193,600

Trump Entertainment Resorts, Inc., 8.5%, 6/1/2015

 

 

460,000

 

319,700

United Components, Inc., 9.375%, 6/15/2013

 

 

45,000

 

40,950

Unity Media GmbH, 144A, 10.375%, 2/15/2015

 

 

165,000

 

141,900

Univision Communications, Inc., 144A, 9.75%, 3/15/2015 (PIK)

 

 

555,000

 

382,950

UPC Holding BV:

 

 

144A, 7.75%, 1/15/2014

EUR

 

235,000

 

310,386

 

144A, 8.0%, 11/1/2016

EUR

 

120,000

 

154,851

Vitro SAB de CV:

 

 

8.625%, 2/1/2012

 

 

165,000

 

155,513

 

9.125%, 2/1/2017

 

 

570,000

 

500,745

 

11.75%, 11/1/2013

 

 

100,000

 

103,750

XM Satellite Radio, Inc., 9.75%, 5/1/2014

 

 

490,000

 

447,125

Young Broadcasting, Inc., 8.75%, 1/15/2014

 

 

1,245,000

 

803,025

 

23,588,578

Consumer Staples 1.7%

 

Alliance One International, Inc., 8.5%, 5/15/2012

 

 

125,000

 

116,875

Delhaize America, Inc.:

 

 

8.05%, 4/15/2027

 

 

65,000

 

67,176

 

9.0%, 4/15/2031

 

 

550,000

 

666,967

General Nutrition Centers, Inc., 10.009% **, 3/15/2014 (PIK) (b)

 

 

240,000

 

191,400

Harry & David Holdings, Inc., 10.124% **, 3/1/2012

 

 

195,000

 

165,750

North Atlantic Trading Co., 144A, 10.0%, 3/1/2012

 

 

975,000

 

867,750

Pierre Foods, Inc., 9.875%, 7/15/2012

 

 

140,000

 

77,000

Pilgrim's Pride Corp., 7.625%, 5/1/2015

 

 

105,000

 

100,275

Rite Aid Corp., 7.5%, 3/1/2017

 

 

355,000

 

310,625

Smithfield Foods, Inc., 7.75%, 7/1/2017 (b)

 

 

210,000

 

199,500

Viskase Companies, Inc., 11.5%, 6/15/2011

 

 

1,015,000

 

1,015,000

 

3,778,318

Energy 6.3%

 

Belden & Blake Corp., 8.75%, 7/15/2012

 

 

1,170,000

 

1,170,000

Chaparral Energy, Inc., 8.5%, 12/1/2015

 

 

385,000

 

327,250

Chesapeake Energy Corp.:

 

 

6.25%, 1/15/2018

 

 

160,000

 

152,800

 

6.875%, 1/15/2016

 

 

850,000

 

837,250

 

7.75%, 1/15/2015 (b)

 

 

90,000

 

92,475

Cimarex Energy Co., 7.125%, 5/1/2017

 

 

180,000

 

176,400

Delta Petroleum Corp., 7.0%, 4/1/2015

 

 

550,000

 

481,250

Dynegy Holdings, Inc.:

 

 

6.875%, 4/1/2011 (b)

 

 

75,000

 

72,844

 

8.375%, 5/1/2016

 

 

455,000

 

444,762

Energy Partners Ltd., 9.75%, 4/15/2014

 

 

200,000

 

167,500

EXCO Resources, Inc., 7.25%, 1/15/2011

 

 

358,000

 

344,575

 

 


 

 

Frontier Oil Corp., 6.625%, 10/1/2011

 

 

150,000

 

148,500

GAZ Capital (Gazprom), 144A, 6.51%, 3/7/2022

 

 

1,285,000

 

1,171,020

Mariner Energy, Inc.:

 

 

7.5%, 4/15/2013

 

 

215,000

 

206,938

 

8.0%, 5/15/2017

 

 

270,000

 

259,200

OPTI Canada, Inc.:

 

 

144A, 7.875%, 12/15/2014

 

 

330,000

 

320,925

 

144A, 8.25%, 12/15/2014

 

 

260,000

 

256,750

Petrobras International Finance Co., 5.875%, 3/1/2018

 

 

470,000

 

464,242

Petrohawk Energy Corp., 9.125%, 7/15/2013

 

 

250,000

 

255,000

Petronas Capital Ltd., Series REG S, 7.875%, 5/22/2022

 

 

620,000

 

757,398

Plains Exploration & Production Co., 7.0%, 3/15/2017 (b)

 

 

225,000

 

216,000

Quicksilver Resources, Inc., 7.125%, 4/1/2016

 

 

600,000

 

574,500

Sabine Pass LNG LP:

 

 

7.25%, 11/30/2013

 

 

100,000

 

98,000

 

7.5%, 11/30/2016

 

 

685,000

 

671,300

Southwestern Energy Co., 144A, 7.5%, 2/1/2018

 

 

320,000

 

329,600

Stone Energy Corp.:

 

 

6.75%, 12/15/2014

 

 

740,000

 

675,250

 

8.25%, 12/15/2011

 

 

265,000

 

263,675

Tennessee Gas Pipeline Co., 7.625%, 4/1/2037

 

 

180,000

 

191,290

Tesoro Corp., 6.5%, 6/1/2017

 

 

120,000

 

111,600

Whiting Petroleum Corp.:

 

 

7.0%, 2/1/2014

 

 

260,000

 

258,700

 

7.25%, 5/1/2012

 

 

455,000

 

452,725

 

7.25%, 5/1/2013

 

 

110,000

 

109,175

Williams Companies, Inc.:

 

 

8.125%, 3/15/2012

 

 

755,000

 

822,950

 

8.75%, 3/15/2032

 

 

1,020,000

 

1,201,050

Williams Partners LP, 7.25%, 2/1/2017

 

 

175,000

 

176,313

 

14,259,207

Financials 6.8%

 

Algoma Acquisition Corp., 144A, 9.875%, 6/15/2015

 

 

640,000

 

515,200

Ashton Woods USA LLC, 9.5%, 10/1/2015

 

 

625,000

 

318,750

Buffalo Thunder Development Authority, 144A, 9.375%, 12/15/2014

 

 

125,000

 

95,000

CEVA Group PLC, 144A, 8.5%, 12/1/2014

EUR

 

170,000

 

167,756

Conproca SA de CV, Series REG S, 12.0%, 6/16/2010

 

 

1,030,000

 

1,153,600

E*TRADE Financial Corp.:

 

 

7.375%, 9/15/2013

 

 

395,000

 

302,175

 

7.875%, 12/1/2015

 

 

615,000

 

467,400

Ford Motor Credit Co., LLC:

 

 

7.25%, 10/25/2011

 

 

1,635,000

 

1,398,407

 

7.375%, 10/28/2009

 

 

2,760,000

 

2,617,206

 

7.875%, 6/15/2010

 

 

805,000

 

741,869

GMAC LLC, 6.875%, 9/15/2011

 

 

3,000,000

 

2,447,781

Hawker Beechcraft Acquisition Co., LLC:

 

 

8.5%, 4/1/2015 (b)

 

 

445,000

 

455,012

 

8.875%, 4/1/2015 (PIK) (b)

 

 

350,000

 

357,000

 

9.75%, 4/1/2017

 

 

410,000

 

406,925

Hexion US Finance Corp., 9.75%, 11/15/2014

 

 

130,000

 

134,550

Inmarsat Finance II PLC, Step-up Coupon, 0% to 11/15/2008, 10.375% to 11/15/2012

 

 

260,000

 

251,550

iPayment, Inc., 9.75%, 5/15/2014

 

 

225,000

 

201,375

Local TV Finance LLC, 144A, 9.25%, 6/15/2015 (PIK)

 

 

200,000

 

163,000

New ASAT (Finance) Ltd., 9.25%, 2/1/2011

 

 

345,000

 

274,275

Petroplus Finance Ltd.:

 

 

144A, 6.75%, 5/1/2014

 

 

190,000

 

172,425

 

 


 

 

 

144A, 7.0%, 5/1/2017

 

 

175,000

 

157,063

Pinnacle Foods Finance LLC, 9.25%, 4/1/2015 (b)

 

 

185,000

 

159,563

Residential Capital LLC:

 

 

5.646% **, 6/9/2008

 

 

85,000

 

75,650

 

6.393% **, 11/21/2008

 

 

620,000

 

492,900

 

8.125%, 11/21/2008

 

 

220,000

 

169,950

Tropicana Entertainment LLC, 9.625%, 12/15/2014

 

 

350,000

 

168,000

UCI Holdco, Inc., 12.491%**, 12/15/2013 (PIK)

 

 

249,867

 

221,132

Universal City Development Partners, 11.75%, 4/1/2010

 

 

840,000

 

866,250

Yankee Acquisition Corp., Series B, 8.5%, 2/15/2015

 

 

315,000

 

263,025

 

15,214,789

Health Care 2.6%

 

Advanced Medical Optics, Inc., 7.5%, 5/1/2017

 

 

350,000

 

299,250

Bausch & Lomb, Inc., 144A, 9.875%, 11/1/2015

 

 

290,000

 

294,350

Boston Scientific Corp., 6.0%, 6/15/2011

 

 

200,000

 

194,000

Community Health Systems, Inc., 8.875%, 7/15/2015

 

 

1,550,000

 

1,520,937

HCA, Inc.:

 

 

9.125%, 11/15/2014

 

 

325,000

 

331,500

 

9.25%, 11/15/2016

 

 

725,000

 

743,125

 

9.625%, 11/15/2016 (PIK)

 

 

340,000

 

351,050

HEALTHSOUTH Corp., 10.75%, 6/15/2016

 

 

170,000

 

178,075

IASIS Healthcare LLC, 8.75%, 6/15/2014

 

 

180,000

 

177,750

Psychiatric Solutions, Inc., 7.75%, 7/15/2015

 

 

205,000

 

202,950

Sun Healthcare Group, Inc., 9.125%, 4/15/2015

 

 

175,000

 

168,438

Surgical Care Affiliates, Inc., 144A, 8.875%, 7/15/2015 (PIK)

 

 

245,000

 

198,450

The Cooper Companies, Inc., 7.125%, 2/15/2015

 

 

360,000

 

342,000

Universal Hospital Services, Inc., 8.5%, 6/1/2015 (PIK)

 

 

145,000

 

144,638

Vanguard Health Holding Co. I, LLC, Step-up Coupon, 0% to 10/1/2009, 11.25% to 10/1/2015

 

 

275,000

 

201,437

Vanguard Health Holding Co. II, LLC, 9.0%, 10/1/2014

 

 

635,000

 

606,425

 

5,954,375

Industrials 5.9%

 

Actuant Corp., 144A, 6.875%, 6/15/2017

 

 

170,000

 

164,050

Allied Security Escrow Corp., 11.375%, 7/15/2011

 

 

290,000

 

254,475

American Color Graphics, Inc., 10.0%, 6/15/2010

 

 

370,000

 

177,600

American Color Graphics, Inc., Promissory Note due 3/15/2008 (c)

 

 

22,200

 

10,656

American Railcar Industries, Inc., 7.5%, 3/1/2014

 

 

230,000

 

210,450

ARAMARK Corp., 6.739% **, 2/1/2015

 

 

290,000

 

253,750

Baldor Electric Co., 8.625%, 2/15/2017 (b)

 

 

205,000

 

200,900

Belden, Inc., 7.0%, 3/15/2017

 

 

185,000

 

179,913

Bombardier, Inc., 144A, 6.75%, 5/1/2012

 

 

100,000

 

99,000

Bristow Group, Inc., 144A, 7.5%, 9/15/2017

 

 

260,000

 

260,650

Browning-Ferris Industries, Inc., 7.4%, 9/15/2035

 

 

555,000

 

510,600

Building Materials Corp. of America, 7.75%, 8/1/2014

 

 

290,000

 

214,600

Cenveo Corp., 7.875%, 12/1/2013

 

 

305,000

 

260,012

Congoleum Corp., 8.625%, 8/1/2008 *

 

 

395,000

 

296,250

DRS Technologies, Inc.:

 

 

6.625%, 2/1/2016

 

 

95,000

 

92,863

 

6.875%, 11/1/2013

 

 

580,000

 

568,400

 

7.625%, 2/1/2018

 

 

705,000

 

705,000

Education Management LLC, 8.75%, 6/1/2014

 

 

200,000

 

176,000

Esco Corp.:

 

 

144A, 8.625%, 12/15/2013

 

 

530,000

 

506,150

 

144A, 8.866% **, 12/15/2013

 

 

275,000

 

243,375

General Cable Corp.:

 

 

 


 

 

 

7.104% **, 4/1/2015

 

 

290,000

 

249,400

 

7.125%, 4/1/2017 (b)

 

 

190,000

 

182,400

Great Lakes Dredge & Dock Co., 7.75%, 12/15/2013

 

 

175,000

 

161,875

Harland Clarke Holdings Corp., 9.5%, 5/15/2015

 

 

200,000

 

148,000

K. Hovnanian Enterprises, Inc.:

 

 

6.25%, 1/15/2016

 

 

305,000

 

207,400

 

8.875%, 4/1/2012

 

 

790,000

 

438,450

Kansas City Southern de Mexico SA de CV:

 

 

144A, 7.375%, 6/1/2014

 

 

560,000

 

520,100

 

7.625%, 12/1/2013

 

 

460,000

 

433,550

 

9.375%, 5/1/2012

 

 

540,000

 

561,600

Kansas City Southern Railway Co.:

 

 

7.5%, 6/15/2009

 

 

160,000

 

161,600

 

9.5%, 10/1/2008

 

 

1,465,000

 

1,497,962

Mobile Services Group, Inc., 9.75%, 8/1/2014

 

 

320,000

 

299,200

Navios Maritime Holdings, Inc., 9.5%, 12/15/2014 (b)

 

 

275,000

 

264,687

Panolam Industries International, Inc., 10.75%, 10/1/2013

 

 

105,000

 

81,900

R.H. Donnelley Corp., 144A, 8.875%, 10/15/2017

 

 

1,175,000

 

687,375

Rainbow National Services LLC, 144A, 10.375%, 9/1/2014

 

 

45,000

 

47,925

RBS Global & Rexnord Corp., 9.5%, 8/1/2014

 

 

185,000

 

166,500

Titan International, Inc., 8.0%, 1/15/2012

 

 

745,000

 

718,925

TransDigm, Inc., 7.75%, 7/15/2014

 

 

125,000

 

124,375

U.S. Concrete, Inc., 8.375%, 4/1/2014 (b)

 

 

235,000

 

193,875

United Rentals North America, Inc.:

 

 

6.5%, 2/15/2012

 

 

225,000

 

203,625

 

7.0%, 2/15/2014

 

 

580,000

 

464,000

Xerox Capital Trust I, 8.0%, 2/1/2027

 

 

120,000

 

121,970

 

13,321,388

Information Technology 1.5%

 

Alion Science & Technology Corp., 10.25%, 2/1/2015

 

 

165,000

 

108,488

Freescale Semiconductor, Inc., 8.875%, 12/15/2014

 

 

360,000

 

293,400

L-3 Communications Corp.:

 

 

5.875%, 1/15/2015

 

 

690,000

 

671,025

 

Series B, 6.375%, 10/15/2015

 

 

315,000

 

312,637

Lucent Technologies, Inc., 6.45%, 3/15/2029 (b)

 

 

790,000

 

592,500

MasTec, Inc., 7.625%, 2/1/2017

 

 

250,000

 

221,250

Sanmina-SCI Corp., 144A, 7.741% **, 6/15/2010

 

 

105,000

 

103,425

Seagate Technology HDD Holdings, 6.8%, 10/1/2016

 

 

390,000

 

376,350

SunGard Data Systems, Inc., 10.25%, 8/15/2015

 

 

535,000

 

532,325

Vangent, Inc., 9.625%, 2/15/2015

 

 

160,000

 

120,200

 

3,331,600

Materials 5.4%

 

Appleton Papers, Inc., Series B, 8.125%, 6/15/2011 (b)

 

 

105,000

 

101,850

ARCO Chemical Co., 9.8%, 2/1/2020

 

 

1,685,000

 

1,423,825

Associated Materials, Inc., Step-up Coupon, 0% to 3/1/2009, 11.25% to 3/1/2014

 

 

410,000

 

260,350

Cascades, Inc., 7.25%, 2/15/2013

 

 

614,000

 

555,670

Chemtura Corp., 6.875%, 6/1/2016

 

 

355,000

 

321,275

Clondalkin Acquisition BV, 144A, 6.991% **, 12/15/2013

 

 

290,000

 

237,800

CPG International I, Inc.:

 

 

10.5%, 7/1/2013

 

 

505,000

 

444,400

 

11.468% **, 7/1/2012

 

 

120,000

 

99,600

Exopack Holding Corp., 11.25%, 2/1/2014

 

 

685,000

 

633,625

Freeport-McMoRan Copper & Gold, Inc., 8.375%, 4/1/2017

 

 

325,000

 

344,500

GEO Specialty Chemicals, Inc., 144A, 12.703% **, 12/31/2009 (d)

 

 

1,004,000

 

751,745

Georgia-Pacific Corp., 144A, 7.125%, 1/15/2017

 

 

145,000

 

134,850

 

 


 

 

Gibraltar Industries, Inc., Series B, 8.0%, 12/1/2015

 

 

205,000

 

170,150

Hexcel Corp., 6.75%, 2/1/2015

 

 

855,000

 

822,937

Huntsman LLC, 11.625%, 10/15/2010

 

 

855,000

 

906,300

Innophos, Inc., 8.875%, 8/15/2014

 

 

100,000

 

97,500

Jefferson Smurfit Corp., 8.25%, 10/1/2012 (b)

 

 

300,000

 

279,750

Koppers Holdings, Inc., Step-up Coupon, 0% to 11/15/2009, 9.875% to 11/15/2014

 

 

565,000

 

480,250

Metals USA Holding Corp., 10.729% **, 7/1/2012 (PIK)

 

 

290,000

 

214,600

Millar Western Forest Products Ltd., 7.75%, 11/15/2013

 

 

110,000

 

79,750

Momentive Performance Materials, Inc., 9.75%, 12/1/2014 (b)

 

 

255,000

 

228,225

Mueller Water Products, Inc., 7.375%, 6/1/2017

 

 

125,000

 

108,750

NewMarket Corp., 7.125%, 12/15/2016

 

 

495,000

 

485,100

NewPage Corp., 144A, 10.0%, 5/1/2012 (b)

 

 

410,000

 

411,025

OI European Group BV, 144A, 6.875%, 3/31/2017

EUR

 

210,000

 

294,901

Radnor Holdings Corp., 11.0%, 3/15/2010 *

 

 

90,000

 

675

Rhodia SA, 144A, 7.326% **, 10/15/2013

EUR

 

200,000

 

273,267

Smurfit-Stone Container Enterprises, Inc.:

 

 

8.0%, 3/15/2017 (b)

 

 

360,000

 

318,600

 

8.375%, 7/1/2012

 

 

200,000

 

188,000

Steel Dynamics, Inc.:

 

 

6.75%, 4/1/2015

 

 

280,000

 

273,700

 

144A, 7.375%, 11/1/2012

 

 

80,000

 

81,000

Terra Capital, Inc., Series B, 7.0%, 2/1/2017

 

 

445,000

 

437,213

The Mosaic Co., 144A, 7.625%, 12/1/2014

 

 

370,000

 

393,125

Witco Corp., 6.875%, 2/1/2026

 

 

170,000

 

115,600

Wolverine Tube, Inc., 10.5%, 4/1/2009

 

 

305,000

 

269,925

 

12,239,833

Telecommunication Services 4.7%

 

BCM Ireland Preferred Equity Ltd., 144A, 11.355% **, 2/15/2017 (PIK)

EUR

 

195,850

 

239,430

Centennial Communications Corp.:

 

 

10.0%, 1/1/2013

 

 

650,000

 

627,250

 

10.125%, 6/15/2013

 

 

650,000

 

656,500

Cincinnati Bell, Inc.:

 

 

7.25%, 7/15/2013 (b)

 

 

435,000

 

435,000

 

8.375%, 1/15/2014 (b)

 

 

240,000

 

230,400

Cricket Communications, Inc., 144A, 9.375%, 11/1/2014

 

 

480,000

 

427,200

Embratel, Series B, 11.0%, 12/15/2008 (b)

 

 

78,000

 

82,193

Grupo Iusacell Celular SA de CV, 10.0%, 3/31/2012

 

 

94,743

 

90,480

Intelsat Corp., 9.0%, 6/15/2016

 

 

120,000

 

120,000

Intelsat Jackson Holding Ltd.:

 

 

9.25%, 6/15/2016

 

 

125,000

 

125,000

 

11.25%, 6/15/2016

 

 

385,000

 

383,556

Intelsat Ltd., 5.25%, 11/1/2008

 

 

1,300,000

 

1,309,750

Intelsat Subsidiary Holding Co., Ltd., 8.25%, 1/15/2013

 

 

420,000

 

420,000

iPCS, Inc., 5.364% **, 5/1/2013

 

 

115,000

 

92,000

MetroPCS Wireless, Inc., 9.25%, 11/1/2014

 

 

575,000

 

506,000

Millicom International Cellular SA, 10.0%, 12/1/2013

 

 

1,535,000

 

1,638,612

Nortel Networks Ltd., 8.508% **, 7/15/2011

 

 

330,000

 

285,450

Orascom Telecom Finance, 144A, 7.875%, 2/8/2014

 

 

135,000

 

126,050

Qwest Corp., 7.25%, 9/15/2025

 

 

75,000

 

67,500

Rural Cellular Corp., 9.875%, 2/1/2010

 

 

305,000

 

313,387

Stratos Global Corp., 9.875%, 2/15/2013

 

 

140,000

 

142,100

SunCom Wireless Holdings, Inc., 8.5%, 6/1/2013

 

 

750,000

 

780,000

US Unwired, Inc., Series B, 10.0%, 6/15/2012

 

 

385,000

 

358,050

Virgin Media Finance PLC:

 

 

8.75%, 4/15/2014

EUR

 

340,000

 

425,841

 

 


 

 

 

8.75%, 4/15/2014

 

 

485,000

 

414,675

West Corp., 9.5%, 10/15/2014

 

 

245,000

 

214,375

 

10,510,799

Utilities 5.3%

 

AES Corp.:

 

 

8.0%, 10/15/2017

 

 

400,000

 

408,000

 

144A, 8.75%, 5/15/2013

 

 

1,304,000

 

1,362,680

Allegheny Energy Supply Co., LLC, 144A, 8.25%, 4/15/2012

 

 

1,345,000

 

1,432,425

CMS Energy Corp., 8.5%, 4/15/2011 (b)

 

 

1,165,000

 

1,253,526

Edison Mission Energy, 7.0%, 5/15/2017

 

 

370,000

 

363,525

Energy Future Holdings Corp., 144A, 10.875%, 11/1/2017

 

 

605,000

 

596,288

Intergas Finance BV, Series REG S, 6.875%, 11/4/2011

 

 

1,815,000

 

1,760,550

Mirant Americas Generation LLC, 8.3%, 5/1/2011

 

 

495,000

 

498,094

Mirant North America LLC, 7.375%, 12/31/2013

 

 

135,000

 

135,506

NRG Energy, Inc.:

 

 

7.25%, 2/1/2014

 

 

670,000

 

654,088

 

7.375%, 2/1/2016

 

 

1,415,000

 

1,363,706

Regency Energy Partners LP, 8.375%, 12/15/2013

 

 

300,000

 

300,000

Reliant Energy, Inc., 7.875%, 6/15/2017 (b)

 

 

415,000

 

408,256

Sierra Pacific Resources:

 

 

6.75%, 8/15/2017

 

 

485,000

 

490,706

 

8.625%, 3/15/2014

 

 

98,000

 

104,211

Texas Competitive Electric Holdings Co., LLC, 144A, 10.25%, 11/1/2015

 

 

885,000

 

862,875

 

11,994,436

Total Corporate Bonds (Cost $124,555,017)

 

114,193,323

 

Government & Agency Obligations 41.6%

 

Sovereign Bonds 41.1%

 

Dominican Republic:

 

 

144A, 8.625%, 4/20/2027

 

 

460,000

 

503,010

 

Series REG S, 9.5%, 9/27/2011

 

 

1,146,152

 

1,209,191

Federative Republic of Brazil:

 

 

6.0%, 1/17/2017 (b)

 

 

8,535,000

 

8,748,375

 

7.125%, 1/20/2037 (b)

 

 

2,095,000

 

2,260,505

 

7.875%, 3/7/2015

 

 

1,980,000

 

2,267,100

 

8.75%, 2/4/2025

 

 

1,685,000

 

2,089,400

 

8.875%, 10/14/2019

 

 

2,415,000

 

3,006,675

 

11.0%, 8/17/2040 (b)

 

 

4,565,000

 

6,137,642

 

12.5%, 1/5/2016

BRL

 

2,070,000

 

1,288,998

Government of Ukraine:

 

 

144A, 6.75%, 11/14/2017

 

 

1,390,000

 

1,373,793

 

Series REG S, 7.65%, 6/11/2013

 

 

1,685,000

 

1,805,309

Republic of Argentina:

 

 

3.092% **, 8/3/2012 (PIK)

 

 

3,981,250

 

3,484,839

 

5.83%, 12/31/2033 (PIK)

ARS

 

738

 

234

Republic of Colombia:

 

 

8.25%, 12/22/2014

 

 

690,000

 

793,845

 

10.0%, 1/23/2012 (b)

 

 

2,375,000

 

2,802,500

 

10.75%, 1/15/2013

 

 

780,000

 

964,080

Republic of El Salvador, 144A, 7.65%, 6/15/2035

 

 

3,780,000

 

4,044,600

Republic of Ghana, 144A, 8.5%, 10/4/2017

 

 

175,000

 

183,050

Republic of Indonesia, 144A, 6.875%, 3/9/2017 (b)

 

 

2,615,000

 

2,722,869

Republic of Panama:

 

 

7.125%, 1/29/2026

 

 

2,005,000

 

2,115,275

 

9.375%, 1/16/2023

 

 

2,610,000

 

3,366,900

 

 


 

 

Republic of Peru, 7.35%, 7/21/2025 (b)

 

 

7,395,000

 

8,282,400

Republic of Philippines:

 

 

7.75%, 1/14/2031 (b)

 

 

610,000

 

674,813

 

8.0%, 1/15/2016 (b)

 

 

3,860,000

 

4,361,800

 

8.375%, 2/15/2011 (b)

 

 

780,000

 

851,214

 

9.375%, 1/18/2017

 

 

1,535,000

 

1,876,537

Republic of Turkey:

 

 

7.0%, 9/26/2016 (b)

 

 

3,170,000

 

3,300,921

 

7.25%, 3/15/2015

 

 

665,000

 

705,731

 

11.75%, 6/15/2010

 

 

4,495,000

 

5,211,053

Republic of Uruguay:

 

 

7.625%, 3/21/2036 (b)

 

 

615,000

 

631,913

 

8.0%, 11/18/2022

 

 

1,395,000

 

1,506,600

 

9.25%, 5/17/2017

 

 

1,825,000

 

2,171,750

Republic of Venezuela, 10.75%, 9/19/2013

 

 

6,035,000

 

6,427,275

Socialist Republic of Vietnam, 144A, 6.875%, 1/15/2016

 

 

3,770,000

 

3,967,925

United Mexican States:

 

 

5.625%, 1/15/2017 (b)

 

 

685,000

 

713,428

 

Series A, 6.75%, 9/27/2034

 

 

662,000

 

727,538

 

92,579,088

US Treasury Obligation 0.5%

 

US Treasury Note, 12.0%, 8/15/2013 (b) (e)

 

 

1,000,000

 

1,045,234

Total Government & Agency Obligations (Cost $91,791,019)

 

93,624,322

 

Loan Participations and Assignments 5.3%

 

Senior Loans** 3.2%

 

Advanced Medical Optics, Inc., Term Loan B, LIBOR plus 1.75%, 4.459%, 4/2/2014

 

 

129,025

 

114,510

Aleris International, Inc., Term Loan B, LIBOR plus 2.375%, 5.084%, 12/14/2013

 

 

159,196

 

131,138

Algoma Steel, Inc., Term Loan, LIBOR plus 2.5%, 5.209%, 6/30/2013

 

 

71,039

 

62,336

Bausch & Lomb, Inc.:

 

 

Term Delay Draw, LIBOR plus 3.25%, 5.959%, 4/11/2015

 

 

42,500

 

41,057

 

Term Loan B, LIBOR plus 3.25%, 5.959%, 4/11/2015

 

 

320,000

 

309,034

Buffets, Inc.:

 

 

Letter of Credit, 4.73%, 5/1/2013

 

 

72,229

 

41,929

 

Term Loan B, 7.906%, 1/13/2011

 

 

541,279

 

314,213

Energy Future Holdings Corp.:

 

 

Term Loan B1, LIBOR plus 3.5%, 6.209%, 10/10/2014

 

 

1,860,338

 

1,698,274

 

Term Loan B3, LIBOR plus 3.5%, 6.209%, 10/10/2014

 

 

1,201,988

 

1,102,824

General Nutrition Centers, Inc., Term Loan B, LIBOR plus 2.25%, 4.959%, 9/16/2013

 

 

124,686

 

104,892

Golden Nugget, 6.37%, 6/16/2014

 

 

230,000

 

179,400

Hawker Beechcraft, Inc.:

 

 

Letter of Credit, LIBOR plus 2.0%, 4.709%, 3/26/2014

 

 

10,973

 

10,232

 

Term Loan B, LIBOR plus 2.0%, 4.709%, 3/26/2014

 

 

128,703

 

120,112

HCA, Inc., Term Loan A1, 6.83%, 11/18/2012

 

 

656,009

 

604,572

Hexion Specialty Chemicals:

 

 

Term Loan C1, LIBOR plus 2.25%, 4.959%, 5/5/2013

 

 

344,781

 

319,267

 

Term Loan C2, LIBOR plus 2.25%, 4.959%, 5/5/2013

 

 

96,739

 

89,403

Local TV On Satellite LLC, Term Loan B, LIBOR plus 2.25%, 4.959%, 5/7/2013

 

 

124,375

 

107,584

Longview Power LLC:

 

 

Demand Draw, 5.385%, 4/1/2014

 

 

48,147

 

43,754

 

Letter of Credit, 7.125%, 4/1/2014

 

 

15,333

 

13,934

 

Term Loan B, 7.25%, 4/1/2014

 

 

46,000

 

41,802

NewPage Corp., Term Loan B, LIBOR plus 3.0%, 5.709%, 11/5/2014

 

 

50,000

 

48,672

Sabre, Inc., Term Loan B, LIBOR plus 2.25%, 4.959%, 9/30/2014

 

 

199,221

 

165,602

Symbion, Inc.:

 

 

Term Loan A, 6.494%, 8/23/2013

 

 

96,550

 

81,102

 

 


 

 

 

Term Loan B, 6.494%, 8/23/2014

 

 

96,550

 

83,033

Telesat Canada, Inc.:

 

 

Term Loan B, LIBOR plus 3.0%, 5.709%, 10/31/2014

 

 

429,693

 

396,851

 

8.09%, 9/1/2014

 

 

142,913

 

131,990

 

9.0%, 10/31/2008

 

 

605,000

 

499,125

Tribune Co., Term Loan B, 7.91%, 5/24/2014

 

 

407,950

 

299,009

 

7,155,651

Sovereign Loans 2.1%

 

Credit Suisse (City of Kiev, Ukraine), 144A, 8.25%, 11/26/2012

 

 

3,485,000

 

3,527,168

CSFB International (Exim Ukraine), 6.8%, 10/4/2012

 

 

1,215,000

 

1,183,167

 

4,710,335

Total Loan Participations and Assignments (Cost $12,750,296)

 

11,865,986

 

Units

 

Value ($)

 

Other Investments 0.2%

 

Hercules, Inc., (Bond Unit), 6.5%, 6/30/2029 (Cost $339,666)

 

400,000

 

340,000

 

Shares

 

Value ($)

 

Common Stocks 0.0%

 

GEO Specialty Chemicals, Inc.*

 

7,125

 

6,056

GEO Specialty Chemicals, Inc. 144A*

 

649

 

552

Total Common Stocks (Cost $87,834)

 

6,608

 

Warrants 0.0%

 

Financials

 

 

 

 

New Asat Finance LLC Expiration Date 2/1/2011*

 

52,000

 

23,730

Industrials

 

 

 

 

DeCrane Aircraft Holdings, Inc., 144A, Expiration Date 9/30/2008*

 

350

 

0

Materials

 

 

 

 

Dayton Superior Corp., 144A, Expiration Date 6/15/2009*

 

25

 

0

Total Warrants (Cost $0)

 

23,730

 

Convertible Preferred Stock 0.0%

 

Consumer Discretionary

 

ION Media Networks, Inc.:

 

 

 

 

Series AI, 144A, 12.0% *

 

15,000

 

682

144A, 12.0% *

 

75,000

 

3,412

Total Convertible Preferred Stocks (Cost $12,580)

 

4,094

 

Securities Lending Collateral 14.2%

 

Daily Assets Fund Institutional, 3.69% (f) (g)
(Cost $31,947,515)

 

 

31,947,515

 

31,947,515

 

Cash Equivalents 1.6%

 

Cash Management QP Trust, 3.89% (f)
(Cost $3,636,243)

 

 

3,636,243

 

3,636,243

 

 


 

 

 

% of
Net Assets

 

Value ($)

Total Investment Portfolio (Cost $265,120,170)

113.6

 

255,641,821

Other Assets and Liabilities, Net (b)

(10.7)

 

(24,079,355)

Notes Payable

(2.9)

 

(6,500,000)

Net Assets

100.0

 

225,062,466

 

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.

The cost for federal income tax purposes was $267,307,400. At February 29, 2008, net unrealized depreciation for all securities based on tax cost was $11,665,579. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $3,786,349 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $15,451,928.

*

Non-income producing security. In the case of a bond, generally denotes that the issuer has defaulted on the payment of principal or the interest or has filed for bankruptcy. The following table represents bonds that are in default::

 

Security

Coupon

Maturity

Date

Principal

Amount ($)

Acquisition

Cost ($)

Value ($)

 

 

Congoleum Corp.

8.625%

8/1/2008

395,000

USD

392,755

296,250

 

 

Quebecor World, Inc.

9.75%

1/15/2015

205,000

USD

206,950

100,450

 

 

Radnor Holdings Corp.

11.0%

3/15/2010

90,000

USD

79,463

675

 

 

 

 

 

 

 

679,168

397,375

 

 

 

**

Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities are shown at their current rate as of February 29, 2008.

(a)

Principal amount stated in US dollars unless otherwise noted.

(b)

All or a portion of these securities were on loan amounting to $30,801,182. In addition, included in other assets and liabilities, net is a pending sale, amounting to $16,358, that is also on loan. The value of all securities loaned at February 29, 2008 amounted to $30,817,540 which is 13.7% of net assets.

(c)

Security issued in lieu of interest payment due 12/15/2007, which has been deferred until 3/15/2008. This security is deemed to be non-income producing.

(d)

Security has a deferred interest payment of $31,626 from April 1, 2006.

(e)

All or a portion of this security is held as collateral for open credit default swaps.

(f)

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

(g)

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

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

LIBOR: Represents the London InterBank Offered Rate.

PIK: Denotes that all or a portion of the income is paid in kind.

 

At February 29, 2008, the Fund had unfunded loan commitments of $79,575 which could be extended at the option of the borrower, pursuant to the following loan agreement:

 

 

 

 

Unrealized

 

 

Unfunded Loan

 

Appreciation/

 

Borrower

Commitment ($)

Value ($)

(Depreciation) ($)

 

Bausch & Lomb, Inc., Term Delay Draw, 4/11/2015

42,394

41,057

(1,337)

 

Longview Power LLC, Demand Draw, 4/1/2014

5,230

5,016

(214)

 

Telesat Canada, Inc., Term Loan B, 10/31/2014

31,951

29,953

(1,998)

 

 

79,575

76,026

(3,549)

 

 

 

 

 


 

 

 

 

 

As of February 29, 2008, open credit default swap contracts sold were as follows:

Effective/
Expiration
Dates

 

Notional
Amount ($)

 

Cash Flows Received
by the Fund

 

Underlying Debt Obligation

 

Net Unrealized
Appreciation/
(Depreciation) ($)

 

 

 

10/4/2007
12/20/2008

 

200,0001

 

Fixed — 3.1%

 

Ford Motor Co., 6.5%, 8/1/2018

 

(5,903)

 

10/5/2007
12/20/2008

 

125,0002

 

Fixed — 3.15%

 

Ford Motor Co., 6.5%, 8/1/2018

 

(3,641)

 

10/23/2007
12/20/2008

 

435,0003

 

Fixed — 3.4%

 

Ford Motor Co., 6.5%, 8/1/2018

 

(11,818)

 

10/13/2007
12/20/2009

 

230,0004

 

Fixed — 3.85%

 

Ford Motor Co., 6.5%, 8/1/2018

 

(20,140)

 

12/13/2007
12/20/2009

 

220,0004

 

Fixed — 5.05%

 

Ford Motor Co., 6.5%, 8/1/2018

 

(12,735)

 

10/23/2007
12/20/2008

 

440,0001

 

Fixed — 3.0%

 

General Motors Corp., 7.125%, 7/15/2013

 

(11,546)

 

10/3/2007
12/20/2008

 

200,0002

 

Fixed — 3.2%

 

General Motors Corp., 7.125%, 7/15/2013

 

(4,937)

 

11/5/2007
12/20/2012

 

6,000,0002

 

Fixed — 0.77%

 

Government of Russia, 7.5%, 3/31/2010

 

(141,950)

 

2/19/2008
3/20/2009

 

665,0004

 

Fixed — 3.8%

 

HCA, Inc., 7.7%, 3/20/2009

 

3,125

 

11/21/2007
12/20/2008

 

220,0004

 

Fixed — 4.02%

 

Tenet Healthcare Corp., 7.375%, 2/1/2013

 

(1,151)

 

2/26/2008
3/20/2009

 

515,0004

 

Fixed — 5.0%

 

Tenet Healthcare Corp., 7.375%, 2/1/2013

 

591

 

Total net unrealized depreciation

 

(210,105)

 

 

Counterparties:

1

Goldman Sachs & Co.

2

JPMorgan Chase

3

Morgan Stanley Co., Inc.

4

Merrill Lynch, Pierce, Fenner, & Smith, Inc.

 

 

As of February 29, 2008, the Fund had the following open forward foreign currency exchange contracts:

 

 

 

 

 

 

Settlement

Unrealized

 

Contracts to Deliver

In Exchange For

Date

Appreciation ($)

 

EUR

1,235,000

USD

1,873,544

4/7/2008

832

 

 

 

 

 

 

 

 

 

 

 

 

Settlement

Unrealized

 

 

Contracts to Deliver

In Exchange For

Date

(Depreciation) ($)

 

 

EUR

1,302,400

USD

1,933,738

3/4/2008

(43,260)

 

 

Currency Abbreviations

 

 

 

ARS

Argentine Peso

EUR

Euro

 

BRL

Brazilian Real

USD

United States Dollar

 

 


 

 

The following is a summary of the inputs used as of February 29, 2008 in valuing the Fund’s assets carried at fair value:

 

Valuation Inputs

Investments in

Securities at

Value

Net Unrealized Depreciation on

Other Financial Instruments*

Level 1 - Quoted Prices

$ 35,583,759

$ -

Level 2 - Other Significant

220,027,724

(256,082)

Observable Inputs

Level 3 - Significant

30,338

-

Unobservable Inputs

Total

$ 255,641,821

$ (256,082)

 

* Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as forward foreign currency exchange contracts, unfunded loan commitments and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

 

The following is a reconciliation of the Fund’s assets in which significant unobservable inputs (Level 3) were used in determining fair value at February 29, 2008:

 

 

Investments in

Securities at Market Value

Balance as of December 1, 2007

$ 6,608

Total realized gains or losses

-

Change in unrealized appreciation (depreciation)

23,730

Net purchases (sales)

-

Net transfers in (out) of Level 3

-

Balance as of February 29, 2008

$ 30,338

 

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 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 Multi-Market Income Trust

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 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 Multi-Market Income Trust

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 16, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        April 16, 2008

 

 

EX-99.CERT 2 certifications.htm CERTIFICATIONS

CERTIFICATIONS

I, Michael G. Clark, certify that:

 

1.

I have reviewed this report on Form N-Q of DWS Multi-Market Income Trust;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.

The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Registrant:

DWS Multi-Market Income Trust

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 16, 2008

 


 

CERTIFICATIONS

I, Paul Schubert, certify that:

 

1.

I have reviewed this report on Form N-Q of DWS Multi-Market Income Trust;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.

The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Registrant:

DWS Multi-Market Income Trust

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:

April 16, 2008

 

 

 

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