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:  811-05482
 
DWS High Income Trust
(Exact name of registrant as specified in charter)

345 Park Avenue
New York, NY 10154
(Address of principal executive offices)  (Zip code)
 

Paul Schubert
60 Wall Street
New York, NY 10005
(Name and address of agent for service)
 
Registrant's telephone number, including area code:   (212) 250-3220
 
Date of fiscal year end:   11/30
 
Date of reporting period:   8/31/2013

ITEM 1.
SCHEDULE OF INVESTMENTS


Investment Portfolio    as of   August 31, 2013  (Unaudited)
 
DWS High Income Trust
 
 
Principal
Amount ($) (a)
 
Value ($)
 
 
 
 
Corporate Bonds 108.6%
 
Consumer Discretionary 20.9%
 
AMC Entertainment, Inc., 8.75%, 6/1/2019
   
705,000
 
757,875
 
AMC Networks, Inc., 7.75%, 7/15/2021
   
90,000
 
99,450
 
AmeriGas Finance LLC:
           
 
6.75%, 5/20/2020
   
545,000
 
577,700
 
 
7.0%, 5/20/2022
   
415,000
 
437,825
 
APX Group, Inc., 144A, 6.375%, 12/1/2019
   
220,000
 
207,350
 
Asbury Automotive Group, Inc.:
           
 
7.625%, 3/15/2017
   
475,000
 
488,067
 
 
8.375%, 11/15/2020
   
235,000
 
259,675
 
 
144A, 8.375%, 11/15/2020
   
60,000
 
66,300
 
Ashtead Capital, Inc., 144A, 6.5%, 7/15/2022
   
350,000
 
370,125
 
Ashton Woods U.S.A. LLC, 144A, 6.875%, 2/15/2021
   
350,000
 
346,500
 
Avis Budget Car Rental LLC:
           
 
5.5%, 4/1/2023
   
215,000
 
200,219
 
 
8.25%, 1/15/2019
   
270,000
 
293,625
 
BC Mountain LLC, 144A, 7.0%, 2/1/2021
   
210,000
 
215,250
 
Block Communications, Inc., 144A, 7.25%, 2/1/2020
   
445,000
 
466,137
 
Boyd Gaming Corp., 9.0%, 7/1/2020
   
165,000
 
177,375
 
Cablevision Systems Corp., 8.0%, 4/15/2020
   
70,000
 
77,525
 
Caesar's Entertainment Operating Co., Inc.:
           
 
8.5%, 2/15/2020
   
435,000
 
415,425
 
 
9.0%, 2/15/2020
   
265,000
 
254,400
 
Carlson Wagonlit BV, 144A, 6.875%, 6/15/2019
   
245,000
 
248,675
 
CCO Holdings LLC:
           
 
6.5%, 4/30/2021
   
175,000
 
177,188
 
 
6.625%, 1/31/2022
   
510,000
 
517,650
 
 
7.0%, 1/15/2019
   
125,000
 
132,188
 
 
7.375%, 6/1/2020
   
65,000
 
69,550
 
 
8.125%, 4/30/2020
   
75,000
 
81,375
 
CDR DB Sub, Inc., 144A, 7.75%, 10/15/2020
   
125,000
 
125,938
 
Cequel Communications Holdings I LLC:
           
 
144A, 5.125%, 12/15/2021
   
795,000
 
731,400
 
 
144A, 6.375%, 9/15/2020
   
1,205,000
 
1,201,987
 
Chester Downs & Marina LLC, 144A, 9.25%, 2/1/2020
   
85,000
 
84,788
 
Clear Channel Communications, Inc., 11.25%, 3/1/2021
   
150,000
 
153,750
 
Clear Channel Worldwide Holdings, Inc.:
           
 
Series A, 6.5%, 11/15/2022
   
270,000
 
267,975
 
 
Series B, 6.5%, 11/15/2022
   
390,000
 
390,000
 
 
Series A, 7.625%, 3/15/2020
   
65,000
 
64,513
 
 
Series B, 7.625%, 3/15/2020
   
655,000
 
656,637
 
Cogeco Cable, Inc., 144A, 4.875%, 5/1/2020
   
25,000
 
24,000
 
Crown Media Holdings, Inc., 10.5%, 7/15/2019
   
155,000
 
172,825
 
Cumulus Media Holdings, Inc., 7.75%, 5/1/2019
   
200,000
 
203,000
 
Delphi Corp., 5.0%, 2/15/2023
   
305,000
 
309,956
 
DISH DBS Corp.:
           
 
4.25%, 4/1/2018
   
230,000
 
226,550
 
 
4.625%, 7/15/2017
   
190,000
 
192,375
 
 
5.0%, 3/15/2023
   
415,000
 
382,837
 
 
6.75%, 6/1/2021
   
80,000
 
83,400
 
 
7.125%, 2/1/2016
   
550,000
 
599,500
 
Fontainebleau Las Vegas Holdings LLC, 144A, 11.0%, 6/15/2015 *
   
455,000
 
0
 
Griffey Intermediate, Inc., 144A, 7.0%, 10/15/2020
   
220,000
 
194,700
 
Harron Communications LP, 144A, 9.125%, 4/1/2020
   
465,000
 
504,525
 
Hertz Corp.:
           
 
144A, 4.25%, 4/1/2018
   
2,605,000
 
2,552,900
 
 
6.75%, 4/15/2019
   
340,000
 
362,525
 
 
7.5%, 10/15/2018
   
930,000
 
1,004,400
 
Hot Topic, Inc., 144A, 9.25%, 6/15/2021
   
175,000
 
177,625
 
Jo-Ann Stores Holdings, Inc., 144A, 9.75%, 10/15/2019 (PIK)
   
410,000
 
422,300
 
L Brands, Inc., 7.0%, 5/1/2020
   
185,000
 
203,037
 
Libbey Glass, Inc., 6.875%, 5/15/2020
   
130,000
 
138,938
 
Live Nation Entertainment, Inc., 144A, 7.0%, 9/1/2020
   
410,000
 
426,400
 
LKQ Corp., 144A, 4.75%, 5/15/2023
   
340,000
 
312,800
 
MDC Partners, Inc., 144A, 6.75%, 4/1/2020
   
165,000
 
167,063
 
Mediacom Broadband LLC, 6.375%, 4/1/2023
   
465,000
 
462,675
 
Mediacom LLC:
           
 
7.25%, 2/15/2022
   
125,000
 
130,938
 
 
9.125%, 8/15/2019
   
295,000
 
323,762
 
MGM Resorts International:
           
 
6.625%, 12/15/2021
   
635,000
 
644,525
 
 
6.75%, 10/1/2020
   
95,000
 
96,900
 
 
7.5%, 6/1/2016
   
105,000
 
115,500
 
 
7.625%, 1/15/2017
   
290,000
 
319,725
 
 
8.625%, 2/1/2019
   
975,000
 
1,094,437
 
 
10.0%, 11/1/2016
   
120,000
 
141,000
 
Midcontinent Communications & Midcontinent Finance Corp., 144A, 6.25%, 8/1/2021
   
230,000
 
230,575
 
National CineMedia LLC:
           
 
6.0%, 4/15/2022
   
245,000
 
249,900
 
 
7.875%, 7/15/2021
   
260,000
 
280,800
 
Norcraft Companies LP, 10.5%, 12/15/2015
   
1,030,000
 
1,073,775
 
Palace Entertainment Holdings LLC, 144A, 8.875%, 4/15/2017
   
215,000
 
221,987
 
Petco Animal Supplies, Inc., 144A, 9.25%, 12/1/2018
   
165,000
 
177,788
 
Petco Holdings, Inc., 144A, 8.5%, 10/15/2017 (PIK)
   
60,000
 
61,200
 
PNK Finance Corp., 144A, 6.375%, 8/1/2021
   
290,000
 
289,275
 
Quebecor Media, Inc., 5.75%, 1/15/2023
   
220,000
 
205,150
 
Regal Entertainment Group, 9.125%, 8/15/2018
   
108,000
 
117,990
 
Rent-A-Center, Inc., 144A, 4.75%, 5/1/2021
   
170,000
 
157,250
 
Schaeffler Finance BV, 144A, 7.75%, 2/15/2017
   
475,000
 
529,625
 
Seminole Hard Rock Entertainment, Inc., 144A, 5.875%, 5/15/2021
   
140,000
 
135,100
 
Seminole Indian Tribe of Florida:
           
 
144A, 7.75%, 10/1/2017
   
225,000
 
239,062
 
 
144A, 7.804%, 10/1/2020
   
375,000
 
397,500
 
Serta Simmons Holdings LLC, 144A, 8.125%, 10/1/2020
   
125,000
 
131,563
 
SIWF Merger Sub, Inc., 144A, 6.25%, 6/1/2021
   
340,000
 
335,750
 
Starz LLC, 5.0%, 9/15/2019
   
175,000
 
171,500
 
Taylor Morrison Communities, Inc., 144A, 5.25%, 4/15/2021
   
270,000
 
255,150
 
UCI International, Inc., 8.625%, 2/15/2019
   
125,000
 
128,125
 
Unitymedia Hessen GmbH & Co., KG:
           
 
144A, 5.5%, 1/15/2023
   
1,020,000
 
928,200
 
 
144A, 7.5%, 3/15/2019
   
515,000
 
556,200
 
Unitymedia KabelBW GmbH, 144A, 9.625%, 12/1/2019
EUR
 
530,000
 
775,775
 
Univision Communications, Inc.:
           
 
144A, 6.875%, 5/15/2019
   
1,560,000
 
1,645,800
 
 
144A, 7.875%, 11/1/2020
   
140,000
 
151,725
 
 
144A, 8.5%, 5/15/2021
   
75,000
 
81,188
 
UPC Holding BV, 144A, 8.375%, 8/15/2020
EUR
 
530,000
 
762,004
 
Viking Cruises Ltd., 144A, 8.5%, 10/15/2022
   
220,000
 
240,350
 
Visant Corp., 10.0%, 10/1/2017
   
235,000
 
219,137
 
Visteon Corp., 6.75%, 4/15/2019
   
184,000
 
195,040
 
 
 
33,550,039
 
Consumer Staples 4.6%
 
B&G Foods, Inc., 4.625%, 6/1/2021
   
285,000
 
264,694
 
Chiquita Brands International, Inc., 144A, 7.875%, 2/1/2021
   
95,000
 
100,225
 
Constellation Brands, Inc.:
           
 
3.75%, 5/1/2021
   
285,000
 
263,625
 
 
6.0%, 5/1/2022
   
110,000
 
116,325
 
 
7.25%, 9/1/2016
   
930,000
 
1,052,062
 
Del Monte Corp., 7.625%, 2/15/2019
   
435,000
 
452,400
 
FAGE Dairy Industry SA, 144A, 9.875%, 2/1/2020
   
395,000
 
426,600
 
JBS U.S.A. LLC, 144A, 8.25%, 2/1/2020
   
180,000
 
187,650
 
NBTY, Inc., 9.0%, 10/1/2018
   
140,000
 
153,650
 
Pilgrim's Pride Corp., 7.875%, 12/15/2018
   
160,000
 
172,800
 
Reynolds Group Issuer, Inc.:
           
 
5.75%, 10/15/2020
   
435,000
 
431,194
 
 
6.875%, 2/15/2021
   
580,000
 
611,900
 
 
7.125%, 4/15/2019
   
1,545,000
 
1,643,494
 
 
8.25%, 2/15/2021
   
120,000
 
118,500
 
 
9.875%, 8/15/2019
   
100,000
 
106,250
 
Smithfield Foods, Inc.:
           
 
6.625%, 8/15/2022
   
215,000
 
220,375
 
 
7.75%, 7/1/2017
   
385,000
 
433,125
 
Sun Products Corp., 144A, 7.75%, 3/15/2021
   
385,000
 
377,300
 
U.S. Foods, Inc., 8.5%, 6/30/2019
   
215,000
 
226,287
 
 
 
7,358,456
 
Energy 15.4%
 
Access Midstream Partners LP:
           
 
4.875%, 5/15/2023
   
390,000
 
362,700
 
 
5.875%, 4/15/2021
   
145,000
 
148,988
 
 
6.125%, 7/15/2022
   
380,000
 
390,450
 
Antero Resources Finance Corp.:
           
 
7.25%, 8/1/2019
   
305,000
 
320,250
 
 
9.375%, 12/1/2017
   
195,000
 
206,700
 
Arch Coal, Inc., 7.0%, 6/15/2019
   
120,000
 
96,000
 
Berry Petroleum Co.:
           
 
6.375%, 9/15/2022
   
220,000
 
218,625
 
 
6.75%, 11/1/2020
   
335,000
 
340,025
 
BreitBurn Energy Partners LP:
           
 
7.875%, 4/15/2022
   
215,000
 
212,850
 
 
8.625%, 10/15/2020
   
115,000
 
121,900
 
Chaparral Energy, Inc., 7.625%, 11/15/2022
   
195,000
 
195,488
 
Chesapeake Energy Corp.:
           
 
3.25%, 3/15/2016
   
535,000
 
536,337
 
 
7.25%, 12/15/2018
   
1,490,000
 
1,687,425
 
 
9.5%, 2/15/2015
   
495,000
 
546,356
 
Chesapeake Oilfield Operating LLC, 6.625%, 11/15/2019
   
235,000
 
236,175
 
CITGO Petroleum Corp., 144A, 11.5%, 7/1/2017
   
295,000
 
327,450
 
Crosstex Energy LP:
           
 
7.125%, 6/1/2022
   
115,000
 
117,875
 
 
8.875%, 2/15/2018
   
345,000
 
366,562
 
Denbury Resources, Inc., 4.625%, 7/15/2023
   
630,000
 
562,275
 
Dresser-Rand Group, Inc., 6.5%, 5/1/2021
   
425,000
 
451,562
 
El Paso LLC, 7.25%, 6/1/2018
   
455,000
 
513,458
 
Endeavor Energy Resources LP, 144A, 7.0%, 8/15/2021
   
350,000
 
343,875
 
EP Energy LLC:
           
 
6.875%, 5/1/2019
   
395,000
 
419,687
 
 
7.75%, 9/1/2022
   
95,000
 
101,650
 
 
9.375%, 5/1/2020
   
90,000
 
99,000
 
EPE Holdings LLC, 144A, 8.125%, 12/15/2017 (PIK)
   
490,161
 
499,964
 
EV Energy Partners LP, 8.0%, 4/15/2019
   
985,000
 
985,000
 
Global Geophysical Services, Inc., 10.5%, 5/1/2017
   
265,000
 
229,225
 
Halcon Resources Corp.:
           
 
8.875%, 5/15/2021
   
425,000
 
426,062
 
 
9.75%, 7/15/2020
   
175,000
 
180,688
 
Holly Energy Partners LP, 6.5%, 3/1/2020
   
125,000
 
128,750
 
Kinder Morgan Finance Co., LLC, 144A, 6.0%, 1/15/2018
   
450,000
 
487,960
 
Kodiak Oil & Gas Corp., 144A, 5.5%, 1/15/2021
   
260,000
 
257,400
 
Linn Energy LLC:
           
 
144A, 6.25%, 11/1/2019
   
635,000
 
584,200
 
 
6.5%, 5/15/2019
   
1,390,000
 
1,306,600
 
MEG Energy Corp.:
           
 
144A, 6.375%, 1/30/2023
   
995,000
 
992,512
 
 
144A, 6.5%, 3/15/2021
   
240,000
 
244,200
 
Memorial Production Partners LP, 7.625%, 5/1/2021
   
95,000
 
91,675
 
Midstates Petroleum Co., Inc.:
           
 
144A, 9.25%, 6/1/2021
   
845,000
 
802,750
 
 
144A, 10.75%, 10/1/2020
   
125,000
 
126,875
 
Murphy Oil U.S.A., Inc., 144A, 6.0%, 8/15/2023
   
350,000
 
347,375
 
Murray Energy Corp., 144A, 8.625%, 6/15/2021
   
55,000
 
54,725
 
Newfield Exploration Co., 5.75%, 1/30/2022
   
225,000
 
223,875
 
Northern Oil & Gas, Inc., 8.0%, 6/1/2020
   
665,000
 
674,975
 
Oasis Petroleum, Inc.:
           
 
6.5%, 11/1/2021
   
180,000
 
189,000
 
 
6.875%, 1/15/2023
   
135,000
 
142,088
 
 
7.25%, 2/1/2019
   
415,000
 
439,900
 
Offshore Group Investment Ltd.:
           
 
7.125%, 4/1/2023
   
430,000
 
413,875
 
 
7.5%, 11/1/2019
   
310,000
 
322,400
 
Pacific Drilling SA, 144A, 5.375%, 6/1/2020
   
285,000
 
275,025
 
Regency Energy Partners LP, 144A, 4.5%, 11/1/2023
   
115,000
 
102,638
 
Sabine Pass Liquefaction LLC:
           
 
144A, 5.625%, 2/1/2021
   
740,000
 
706,700
 
 
144A, 5.625%, 4/15/2023
   
165,000
 
153,038
 
SandRidge Energy, Inc., 7.5%, 3/15/2021
   
545,000
 
542,275
 
SESI LLC:
           
 
6.375%, 5/1/2019
   
245,000
 
257,863
 
 
7.125%, 12/15/2021
   
795,000
 
860,587
 
Swift Energy Co., 7.875%, 3/1/2022
   
300,000
 
291,000
 
Talos Production LLC, 144A, 9.75%, 2/15/2018
   
410,000
 
405,900
 
Tesoro Corp.:
           
 
4.25%, 10/1/2017
   
235,000
 
237,938
 
 
5.375%, 10/1/2022
   
165,000
 
157,575
 
Venoco, Inc., 8.875%, 2/15/2019
   
305,000
 
304,237
 
Welltec A/S, 144A, 8.0%, 2/1/2019
   
200,000
 
213,000
 
WPX Energy, Inc., 5.25%, 1/15/2017
   
1,015,000
 
1,075,900
 
 
 
24,659,413
 
Financials 9.5%
 
AerCap Aviation Solutions BV, 6.375%, 5/30/2017
   
790,000
 
837,400
 
Ally Financial, Inc.:
           
 
5.5%, 2/15/2017
   
1,540,000
 
1,623,359
 
 
6.25%, 12/1/2017
   
550,000
 
589,756
 
 
8.0%, 3/15/2020
   
705,000
 
811,631
 
Banco Bradesco SA, 144A, 5.75%, 3/1/2022
   
920,000
 
868,480
 
CIT Group, Inc.:
           
 
4.25%, 8/15/2017
   
560,000
 
567,000
 
 
5.0%, 5/15/2017
   
230,000
 
238,625
 
 
5.25%, 3/15/2018
   
645,000
 
665,962
 
DuPont Fabros Technology LP, (REIT), 8.5%, 12/15/2017
   
420,000
 
443,100
 
E*TRADE Financial Corp.:
           
 
6.0%, 11/15/2017
   
1,490,000
 
1,542,150
 
 
6.375%, 11/15/2019
   
759,000
 
796,950
 
 
6.75%, 6/1/2016
   
385,000
 
407,137
 
Hellas Telecommunications Finance, 144A, 8.218% **, 7/15/2015 (PIK) *
EUR
 
294,810
 
0
 
International Lease Finance Corp.:
           
 
2.224%, 6/15/2016
   
755,000
 
743,675
 
 
3.875%, 4/15/2018
   
805,000
 
768,775
 
 
4.625%, 4/15/2021
   
385,000
 
350,350
 
 
5.75%, 5/15/2016
   
1,215,000
 
1,280,719
 
 
6.25%, 5/15/2019
   
345,000
 
355,350
 
 
8.625%, 1/15/2022
   
350,000
 
394,625
 
 
8.75%, 3/15/2017
   
685,000
 
776,619
 
MPT Operating Partnership LP:
           
 
(REIT), 6.375%, 2/15/2022
   
335,000
 
340,863
 
 
(REIT), 6.875%, 5/1/2021
   
305,000
 
321,013
 
Neuberger Berman Group LLC:
           
 
144A, 5.625%, 3/15/2020
   
190,000
 
197,125
 
 
144A, 5.875%, 3/15/2022
   
310,000
 
317,750
 
 
 
15,238,414
 
Health Care 10.6%
 
Aviv Healthcare Properties LP, 7.75%, 2/15/2019
   
565,000
 
604,550
 
Biomet, Inc.:
           
 
6.5%, 8/1/2020
   
380,000
 
389,500
 
 
6.5%, 10/1/2020
   
110,000
 
109,725
 
Community Health Systems, Inc.:
           
 
5.125%, 8/15/2018
   
3,440,000
 
3,517,400
 
 
7.125%, 7/15/2020
   
1,830,000
 
1,848,300
 
Fresenius Medical Care U.S. Finance II, Inc., 144A, 5.625%, 7/31/2019
   
250,000
 
257,500
 
Fresenius Medical Care U.S. Finance, Inc.:
           
 
144A, 5.75%, 2/15/2021
   
190,000
 
193,800
 
 
144A, 6.5%, 9/15/2018
   
125,000
 
136,250
 
HCA, Inc.:
           
 
5.875%, 3/15/2022
   
315,000
 
325,237
 
 
6.5%, 2/15/2020
   
3,645,000
 
3,913,819
 
 
7.5%, 2/15/2022
   
460,000
 
500,250
 
 
7.875%, 2/15/2020
   
855,000
 
922,331
 
 
8.5%, 4/15/2019
   
335,000
 
361,800
 
Hologic, Inc., 6.25%, 8/1/2020
   
230,000
 
239,775
 
IMS Health, Inc., 144A, 6.0%, 11/1/2020
   
275,000
 
282,219
 
Par Pharmaceutical Companies, Inc., 144A, 7.375%, 10/15/2020
   
395,000
 
408,825
 
Physio-Control International, Inc., 144A, 9.875%, 1/15/2019
   
171,000
 
188,955
 
Tenet Healthcare Corp.:
           
 
144A, 4.375%, 10/1/2021
   
460,000
 
417,450
 
 
144A, 4.5%, 4/1/2021
   
50,000
 
46,000
 
 
6.25%, 11/1/2018
   
1,200,000
 
1,267,500
 
VPII Escrow Corp., 144A, 6.75%, 8/15/2018
   
555,000
 
587,606
 
Warner Chilcott Co., LLC, 7.75%, 9/15/2018
   
430,000
 
469,775
 
 
 
16,988,567
 
Industrials 10.1%
 
Abengoa Finance SAU, 144A, 8.875%, 11/1/2017
   
145,000
 
136,300
 
Accuride Corp., 9.5%, 8/1/2018
   
175,000
 
180,250
 
Aguila 3 SA, 144A, 7.875%, 1/31/2018
   
520,000
 
544,700
 
Air Lease Corp.:
           
 
4.75%, 3/1/2020
   
310,000
 
309,225
 
 
5.625%, 4/1/2017
   
530,000
 
568,425
 
Alphabet Holding Co., Inc., 7.75%, 11/1/2017 (PIK)
   
110,000
 
113,575
 
AWAS Aviation Capital Ltd., 144A, 7.0%, 10/17/2016
   
463,600
 
479,826
 
BE Aerospace, Inc., 6.875%, 10/1/2020
   
190,000
 
205,200
 
Belden, Inc., 144A, 5.5%, 9/1/2022
   
380,000
 
368,600
 
Bombardier, Inc.:
           
 
144A, 5.75%, 3/15/2022
   
265,000
 
258,375
 
 
144A, 7.75%, 3/15/2020
   
1,365,000
 
1,523,681
 
Case New Holland, Inc., 7.875%, 12/1/2017
   
645,000
 
741,750
 
Casella Waste Systems, Inc., 7.75%, 2/15/2019
   
645,000
 
643,387
 
Clean Harbors, Inc., 5.125%, 6/1/2021
   
265,000
 
257,713
 
CNH Capital LLC, 3.625%, 4/15/2018
   
435,000
 
426,300
 
DigitalGlobe, Inc., 144A, 5.25%, 2/1/2021
   
155,000
 
145,313
 
Ducommun, Inc., 9.75%, 7/15/2018
   
415,000
 
458,575
 
DynCorp International, Inc., 10.375%, 7/1/2017
   
505,000
 
517,625
 
Florida East Coast Railway Corp., 8.125%, 2/1/2017
   
115,000
 
121,325
 
FTI Consulting, Inc.:
           
 
6.0%, 11/15/2022
   
220,000
 
217,250
 
 
6.75%, 10/1/2020
   
850,000
 
897,812
 
Garda World Security Corp., 144A, 9.75%, 3/15/2017
   
225,000
 
239,625
 
GenCorp, Inc., 144A, 7.125%, 3/15/2021
   
770,000
 
806,575
 
Huntington Ingalls Industries, Inc.:
           
 
6.875%, 3/15/2018
   
305,000
 
328,637
 
 
7.125%, 3/15/2021
   
60,000
 
64,800
 
Iron Mountain, Inc., 5.75%, 8/15/2024
   
265,000
 
239,163
 
Kenan Advantage Group, Inc., 144A, 8.375%, 12/15/2018
   
415,000
 
433,675
 
Meritor, Inc.:
           
 
6.75%, 6/15/2021
   
225,000
 
219,656
 
 
10.625%, 3/15/2018
   
185,000
 
200,725
 
Navios Maritime Holdings, Inc.:
           
 
8.125%, 2/15/2019
   
220,000
 
212,300
 
 
8.875%, 11/1/2017
   
130,000
 
135,363
 
Navios South American Logistics, Inc., 9.25%, 4/15/2019
   
185,000
 
199,800
 
Nortek, Inc., 8.5%, 4/15/2021
   
235,000
 
254,388
 
Ply Gem Industries, Inc., 9.375%, 4/15/2017
   
54,000
 
56,835
 
Spirit AeroSystems, Inc.:
           
 
6.75%, 12/15/2020
   
205,000
 
215,250
 
 
7.5%, 10/1/2017
   
210,000
 
218,663
 
Titan International, Inc.:
           
 
7.875%, 10/1/2017
   
535,000
 
567,100
 
 
144A, 7.875%, 10/1/2017
   
145,000
 
153,700
 
TransDigm, Inc.:
           
 
144A, 7.5%, 7/15/2021
   
405,000
 
428,287
 
 
7.75%, 12/15/2018
   
380,000
 
406,600
 
U.S. Airways Group, Inc., 6.125%, 6/1/2018
   
285,000
 
258,637
 
United Rentals North America, Inc.:
           
 
5.75%, 7/15/2018
   
425,000
 
453,687
 
 
6.125%, 6/15/2023
   
30,000
 
29,550
 
 
7.375%, 5/15/2020
   
350,000
 
377,125
 
 
7.625%, 4/15/2022
   
350,000
 
376,250
 
Watco Companies LLC, 144A, 6.375%, 4/1/2023
   
165,000
 
162,938
 
 
 
16,154,536
 
Information Technology 4.7%
 
ACI Worldwide, Inc., 144A, 6.375%, 8/15/2020
   
125,000
 
126,250
 
Alliance Data Systems Corp., 144A, 5.25%, 12/1/2017
   
270,000
 
278,775
 
BMC Software Finance, Inc., 144A, 8.125%, 7/15/2021
   
405,000
 
410,063
 
CDW LLC, 8.5%, 4/1/2019
   
470,000
 
516,412
 
CyrusOne LP, 6.375%, 11/15/2022
   
110,000
 
110,550
 
eAccess Ltd., 144A, 8.25%, 4/1/2018
   
180,000
 
196,650
 
EarthLink, Inc., 144A, 7.375%, 6/1/2020
   
285,000
 
278,588
 
Equinix, Inc.:
           
 
4.875%, 4/1/2020
   
290,000
 
279,125
 
 
5.375%, 4/1/2023
   
765,000
 
728,662
 
 
7.0%, 7/15/2021
   
250,000
 
268,125
 
First Data Corp.:
           
 
144A, 6.75%, 11/1/2020
   
765,000
 
782,212
 
 
144A, 7.375%, 6/15/2019
   
280,000
 
290,500
 
 
144A, 8.875%, 8/15/2020
   
500,000
 
540,000
 
 
144A, 10.625%, 6/15/2021
   
62,000
 
61,613
 
Freescale Semiconductor, Inc., 144A, 9.25%, 4/15/2018
   
710,000
 
766,800
 
Healthcare Technology Intermediate, Inc., 144A, 7.375%, 9/1/2018 (PIK)
   
85,000
 
86,275
 
Hughes Satellite Systems Corp.:
           
 
6.5%, 6/15/2019
   
540,000
 
568,350
 
 
7.625%, 6/15/2021
   
245,000
 
262,763
 
IAC/InterActiveCorp., 4.75%, 12/15/2022
   
210,000
 
193,725
 
Jabil Circuit, Inc., 5.625%, 12/15/2020
   
315,000
 
326,025
 
NXP BV, 144A, 3.75%, 6/1/2018
   
420,000
 
405,825
 
 
 
7,477,288
 
Materials 8.1%
 
APERAM, 144A, 7.375%, 4/1/2016
   
230,000
 
225,400
 
Ashland, Inc., 144A, 3.875%, 4/15/2018
   
165,000
 
162,525
 
Axiall Corp., 144A, 4.875%, 5/15/2023
   
65,000
 
60,288
 
Berry Plastics Corp.:
           
 
9.5%, 5/15/2018
   
190,000
 
206,388
 
 
9.75%, 1/15/2021
   
230,000
 
266,225
 
Bluescope Steel Ltd., 144A, 7.125%, 5/1/2018
   
165,000
 
166,650
 
BOE Intermediate Holding Corp., 144A, 9.0%, 11/1/2017 (PIK)
   
340,000
 
346,800
 
BOE Merger Corp., 144A, 9.5%, 11/1/2017 (PIK)
   
220,000
 
233,200
 
Clearwater Paper Corp., 7.125%, 11/1/2018
   
395,000
 
424,625
 
Compass Minerals International, Inc., 8.0%, 6/1/2019
   
380,000
 
406,600
 
Crown Americas LLC, 6.25%, 2/1/2021
   
55,000
 
57,750
 
Eagle Spinco, Inc., 144A, 4.625%, 2/15/2021
   
130,000
 
122,200
 
Essar Steel Algoma, Inc.:
           
 
144A, 9.375%, 3/15/2015
   
600,000
 
562,500
 
 
144A, 9.875%, 6/15/2015
   
105,000
 
81,375
 
Exopack Holding Corp., 10.0%, 6/1/2018
   
245,000
 
259,087
 
Fibria Overseas Finance Ltd., 144A, 6.75%, 3/3/2021
   
150,000
 
157,125
 
FMG Resources (August 2006) Pty Ltd.:
           
 
144A, 6.0%, 4/1/2017
   
380,000
 
386,650
 
 
144A, 6.875%, 4/1/2022
   
80,000
 
79,200
 
 
144A, 7.0%, 11/1/2015
   
390,000
 
401,700
 
 
144A, 8.25%, 11/1/2019
   
305,000
 
325,587
 
FQM Akubra, Inc.:
           
 
144A, 7.5%, 6/1/2021
   
600,000
 
603,000
 
 
144A, 8.75%, 6/1/2020
   
360,000
 
376,200
 
Greif, Inc., 7.75%, 8/1/2019
   
110,000
 
124,850
 
Hexion U.S. Finance Corp.:
           
 
6.625%, 4/15/2020
   
110,000
 
108,625
 
 
8.875%, 2/1/2018
   
385,000
 
393,662
 
Huntsman International LLC:
           
 
4.875%, 11/15/2020
   
245,000
 
233,363
 
 
8.625%, 3/15/2020
   
350,000
 
386,750
 
 
8.625%, 3/15/2021
   
140,000
 
156,100
 
IAMGOLD Corp., 144A, 6.75%, 10/1/2020
   
320,000
 
276,800
 
Kaiser Aluminum Corp., 8.25%, 6/1/2020
   
300,000
 
334,500
 
KGHM International Ltd., 144A, 7.75%, 6/15/2019
   
660,000
 
674,850
 
Novelis, Inc., 8.75%, 12/15/2020
   
1,330,000
 
1,446,375
 
OI European Group BV, 144A, 6.75%, 9/15/2020
EUR
 
195,000
 
289,937
 
Packaging Dynamics Corp., 144A, 8.75%, 2/1/2016
   
270,000
 
279,450
 
Perstorp Holding AB, 144A, 8.75%, 5/15/2017
   
200,000
 
204,500
 
Polymer Group, Inc., 7.75%, 2/1/2019
   
310,000
 
327,050
 
PolyOne Corp., 144A, 5.25%, 3/15/2023
   
625,000
 
598,437
 
Rain CII Carbon LLC:
           
 
144A, 8.0%, 12/1/2018
   
275,000
 
277,750
 
 
144A, 8.25%, 1/15/2021
   
200,000
 
200,000
 
Sealed Air Corp., 144A, 5.25%, 4/1/2023
   
55,000
 
52,388
 
Tronox Finance LLC, 144A, 6.375%, 8/15/2020
   
275,000
 
262,625
 
Viskase Companies, Inc., 144A, 9.875%, 1/15/2018
   
455,000
 
482,300
 
 
 
13,021,387
 
Telecommunication Services 20.7%
 
Altice Financing SA, 144A, 7.875%, 12/15/2019
   
245,000
 
258,598
 
Altice Finco SA, 144A, 9.875%, 12/15/2020
   
245,000
 
263,375
 
CenturyLink, Inc., Series V, 5.625%, 4/1/2020
   
110,000
 
107,800
 
Cincinnati Bell, Inc.:
           
 
8.25%, 10/15/2017
   
1,270,000
 
1,330,960
 
 
8.375%, 10/15/2020
   
1,050,000
 
1,110,375
 
 
8.75%, 3/15/2018
   
1,645,000
 
1,706,687
 
CPI International, Inc., 8.0%, 2/15/2018
   
135,000
 
138,375
 
Cricket Communications, Inc., 7.75%, 10/15/2020
   
1,315,000
 
1,494,169
 
Crown Castle International Corp., 7.125%, 11/1/2019
   
280,000
 
301,000
 
Digicel Group Ltd.:
           
 
144A, 8.25%, 9/30/2020
   
520,000
 
551,200
 
 
144A, 10.5%, 4/15/2018
   
260,000
 
280,150
 
Digicel Ltd.:
           
 
144A, 7.0%, 2/15/2020
   
200,000
 
202,000
 
 
144A, 8.25%, 9/1/2017
   
1,625,000
 
1,690,000
 
ERC Ireland Preferred Equity Ltd., 144A, 7.69% **, 2/15/2017 *
EUR
 
529,971
 
0
 
Frontier Communications Corp.:
           
 
7.125%, 1/15/2023
   
1,475,000
 
1,434,437
 
 
7.625%, 4/15/2024
   
115,000
 
112,413
 
 
8.25%, 4/15/2017
   
357,000
 
401,625
 
 
8.5%, 4/15/2020
   
540,000
 
589,950
 
 
8.75%, 4/15/2022
   
70,000
 
75,775
 
Intelsat Jackson Holdings SA:
           
 
144A, 5.5%, 8/1/2023
   
865,000
 
802,287
 
 
7.25%, 10/15/2020
   
1,235,000
 
1,318,362
 
 
7.5%, 4/1/2021
   
1,350,000
 
1,458,000
 
 
8.5%, 11/1/2019
   
620,000
 
674,250
 
Intelsat Luxembourg SA:
           
 
144A, 7.75%, 6/1/2021
   
705,000
 
726,150
 
 
144A, 8.125%, 6/1/2023
   
105,000
 
109,725
 
Level 3 Communications, Inc., 8.875%, 6/1/2019
   
30,000
 
32,025
 
Level 3 Financing, Inc.:
           
 
7.0%, 6/1/2020
   
415,000
 
418,112
 
 
8.125%, 7/1/2019
   
215,000
 
227,363
 
 
8.625%, 7/15/2020
   
180,000
 
192,600
 
MetroPCS Wireless, Inc.:
           
 
6.625%, 11/15/2020
   
260,000
 
269,750
 
 
144A, 6.625%, 4/1/2023
   
285,000
 
282,863
 
 
7.875%, 9/1/2018
   
435,000
 
470,887
 
Millicom International Cellular SA, 144A, 4.75%, 5/22/2020
   
835,000
 
790,119
 
NII Capital Corp., 7.625%, 4/1/2021
   
170,000
 
130,050
 
Pacnet Ltd., 144A, 9.25%, 11/9/2015
   
441,000
 
441,000
 
SBA Communications Corp., 5.625%, 10/1/2019
   
215,000
 
211,775
 
SBA Telecommunications, Inc., 8.25%, 8/15/2019
   
97,000
 
105,245
 
Sprint Communications, Inc.:
           
 
6.0%, 12/1/2016
   
2,230,000
 
2,363,800
 
 
9.125%, 3/1/2017
   
180,000
 
206,550
 
Telesat Canada, 144A, 6.0%, 5/15/2017
   
2,560,000
 
2,656,000
 
tw telecom holdings, Inc.:
           
 
5.375%, 10/1/2022
   
300,000
 
285,750
 
 
144A, 5.375%, 10/1/2022
   
60,000
 
57,150
 
 
144A, 6.375%, 9/1/2023
   
290,000
 
288,550
 
UPCB Finance III Ltd., 144A, 6.625%, 7/1/2020
   
1,575,000
 
1,645,875
 
UPCB Finance V Ltd., 144A, 7.25%, 11/15/2021
   
235,000
 
253,800
 
UPCB Finance VI Ltd., 144A, 6.875%, 1/15/2022
   
300,000
 
313,500
 
Wind Acquisition Finance SA:
           
 
144A, 6.5%, 4/30/2020
   
225,000
 
225,000
 
 
144A, 7.25%, 2/15/2018
   
280,000
 
285,600
 
Windstream Corp.:
           
 
6.375%, 8/1/2023
   
265,000
 
239,494
 
 
7.5%, 6/1/2022
   
180,000
 
179,100
 
 
7.5%, 4/1/2023
   
440,000
 
430,100
 
 
7.75%, 10/15/2020
   
70,000
 
71,575
 
 
7.75%, 10/1/2021
   
355,000
 
362,988
 
 
144A, 7.75%, 10/1/2021
   
435,000
 
444,787
 
 
7.875%, 11/1/2017
   
1,710,000
 
1,898,100
 
 
8.125%, 9/1/2018
   
300,000
 
321,750
 
 
 
33,238,921
 
Utilities 4.0%
 
AES Corp.:
           
 
4.875%, 5/15/2023
   
115,000
 
105,513
 
 
7.75%, 10/15/2015
   
638,000
 
709,775
 
 
8.0%, 10/15/2017
   
440,000
 
506,000
 
 
8.0%, 6/1/2020
   
480,000
 
544,800
 
Calpine Corp.:
           
 
144A, 7.5%, 2/15/2021
   
441,000
 
467,460
 
 
144A, 7.875%, 7/31/2020
   
486,000
 
524,880
 
DPL, Inc., 6.5%, 10/15/2016
   
1,380,000
 
1,455,900
 
Energy Future Holdings Corp., Series Q, 6.5%, 11/15/2024
   
300,000
 
151,500
 
Energy Future Intermediate Holding Co., LLC:
           
 
10.0%, 12/1/2020
   
70,000
 
73,763
 
 
11.0%, 10/1/2021
   
595,000
 
638,137
 
IPALCO Enterprises, Inc.:
           
 
5.0%, 5/1/2018
   
715,000
 
734,662
 
 
144A, 7.25%, 4/1/2016
   
315,000
 
344,138
 
NRG Energy, Inc., 7.625%, 1/15/2018
   
210,000
 
232,575
 
 
 
6,489,103
 
 
Total Corporate Bonds (Cost $171,711,769)
 
174,176,124
 
 
 
Loan Participations and Assignments 23.2%
 
Senior Loans ** 22.7%
 
Consumer Discretionary 6.6%
 
Air Distribution Technologies, Inc., First Lien Term Loan, 5.0%, 11/9/2018
   
412,925
 
418,087
 
Buffets, Inc., Letter of Credit, First Lien, LIBOR plus 9.25%, 4/22/2015 *
   
59,491
 
29,745
 
Burger King Corp., Term Loan B, 3.75%, 9/27/2019
   
466,475
 
470,118
 
Caesars Entertainment Operating Co., Term Loan B6, 5.434%, 1/26/2018
   
95,807
 
86,386
 
Cumulus Media Holdings, Inc., Second Lien Term Loan, 7.5%, 9/16/2019
   
375,000
 
380,156
 
Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.75%, 4/30/2019
   
2,390,000
 
2,408,977
 
Petco Animal Supplies, Inc., Term Loan, 4.0%, 11/24/2017
   
408,607
 
411,216
 
Pilot Travel Centers LLC:
           
 
Term Loan B, 3.75%, 3/30/2018
   
662,083
 
660,706
 
 
Term Loan B2, 4.25%, 8/7/2019
   
1,721,988
 
1,719,835
 
Quebecor Media, Inc., Term Loan B1, 3.25%, 8/1/2019
   
915,000
 
915,572
 
Tomkins LLC, Term Loan B2, 3.75%, 9/29/2016
   
2,713,073
 
2,726,639
 
Univision Communications, Inc., Term Loan, 4.5%, 3/2/2020
   
434,613
 
434,400
 
 
 
10,661,837
 
Consumer Staples 2.6%
 
Albertson's LLC:
           
 
Term Loan B1, 4.25%, 3/21/2016
   
522,156
 
524,931
 
 
Term Loan B2, 4.75%, 3/21/2019
   
340,682
 
341,391
 
Del Monte Foods Co., Term Loan, 4.0%, 3/8/2018
   
1,022,776
 
1,024,688
 
HJ Heinz Co., Term Loan B2, 3.5%, 6/5/2020
   
1,890,000
 
1,904,411
 
Pinnacle Foods Finance LLC, Term Loan G, 3.25%, 4/29/2020
   
339,150
 
336,678
 
 
 
4,132,099
 
Energy 2.0%
 
Chesapeake Energy Corp., Term Loan, 5.75%, 12/1/2017
   
865,000
 
884,238
 
Ruby Western Pipeline Holdings LLC, Term Loan B, 3.5%, 3/27/2020
   
214,086
 
213,819
 
Samson Investment Co., Second Lien Term Loan, 6.0%, 9/25/2018
   
1,295,000
 
1,304,719
 
Tallgrass Operations LLC, Term Loan, 5.25%, 11/13/2018
   
715,350
 
725,336
 
 
 
3,128,112
 
Financials 0.0%
 
Alliance Mortgage Cycle Loan, Term Loan A, 9.5%, 6/15/2010 *
   
466,667
 
0
 
Health Care 2.1%
 
Par Pharmaceutical Companies, Inc., Term Loan B, 4.25%, 9/30/2019
   
769,197
 
767,636
 
Valeant Pharmaceuticals International, Inc.:
           
 
Term Loan B, 4.375%, 2/13/2019
   
1,017,437
 
1,023,537
 
 
Term Loan B, 4.375%, 12/11/2019
   
862,827
 
867,248
 
Warner Chilcott Corp.:
           
 
Term Loan B1, 4.25%, 3/15/2018
   
302,755
 
303,890
 
 
Incremental Term Loan B1, 4.25%, 3/15/2018
   
131,797
 
132,291
 
WC Luxco SARL, Term Loan B3, 4.25%, 3/15/2018
   
238,576
 
239,471
 
 
 
3,334,073
 
Industrials 2.0%
 
Buffalo Gulf Coast Terminals LLC, Term Loan, 5.25%, 10/31/2017
   
496,250
 
501,212
 
Transdigm, Inc., Term Loan C, 3.75%, 2/28/2020
   
1,550,411
 
1,552,675
 
WP CPP Holdings LLC, First Lien Term Loan, 4.75%, 12/27/2019
   
1,144,250
 
1,144,250
 
 
 
3,198,137
 
Information Technology 1.2%
 
First Data Corp., Term Loan, 4.184%, 3/24/2017
   
1,945,000
 
1,932,173
 
Materials 1.4%
 
Axalta Coating Systems U.S. Holdings, Inc., Term Loan, 4.75%, 2/3/2020
   
1,230,000
 
1,240,916
 
Berry Plastics Holding Corp., Term Loan D, 3.5%, 2/7/2020
   
1,000,000
 
994,110
 
 
 
2,235,026
 
Telecommunication Services 4.2%
 
Crown Castle International Corp., Term Loan, 3.25%, 1/31/2019
   
2,948,164
 
2,927,586
 
DigitalGlobe, Inc., Term Loan B, 3.75%, 1/31/2020
   
39,900
 
40,261
 
Kabel Deutschland GmbH, Term Loan F1, 3.25%, 2/1/2019
   
3,040,000
 
3,042,675
 
Syniverse Holdings, Inc., Term Loan B, 4.0%, 4/23/2019
   
695,000
 
699,563
 
 
 
6,710,085
 
Utilities 0.6%
 
NRG Energy, Inc., Term Loan B, 2.75%, 7/2/2018
   
972,563
 
967,928
 
 
Sovereign Loan 0.5%
 
Financials
 
VTB Bank OJSC, 144A, 6.315%, 2/22/2018
   
750,000
 
789,375
 
 
Total Loan Participations and Assignments (Cost $37,408,303)
 
37,088,845
 
 
 
Convertible Bonds 1.1%
 
Consumer Discretionary 0.3%
 
Group 1 Automotive, Inc., 3.0%, 3/15/2020
   
195,000
 
413,888
 
Materials 0.8%
 
GEO Specialty Chemicals, Inc., 144A, 7.5%, 3/31/2015 (PIK)
   
776,436
 
1,296,570
 
 
Total Convertible Bonds (Cost $966,599)
 
1,710,458
 
 
 
Preferred Security 0.4%
 
Materials
       
 
Hercules, Inc., 6.5%, 6/30/2029 (Cost $409,269)
   
810,000
 
720,900
 
 
           
 
 
Units
 
Value ($)
   
 
 
 
Other Investments 0.0%
 
Consumer Discretionary 0.0%
 
Dawn Holdings, Inc. * (b)  (Cost $43,975)
 
12
 
35,185
 
           
 
 
               Shares
Value ($)
 
 
 
Common Stocks 0.1%
 
Consumer Discretionary 0.0%
 
Buffets Restaurants Holdings, Inc.*
  533  
3,464
 
Trump Entertainment Resorts, Inc.*
  51  
0
 
Vertis Holdings, Inc.*
  520  
0
 
 
 
3,464
 
Industrials 0.0%
 
Congoleum Corp.*
 
14,300
 
0
 
Materials 0.1%
 
GEO Specialty Chemicals, Inc.*
 
14,091
 
9,034
 
GEO Specialty Chemicals, Inc. 144A*
 
1,283
 
823
 
Wolverine Tube, Inc.*
 
5,489
 
177,020
 
 
 
186,877
 
 
Total Common Stocks (Cost $302,355)
 
190,341
 
 
 
Preferred Stock 0.3%
 
Financials
         
Ally Financial, Inc. 144A, 7.0%  (Cost $427,075)
 
455
 
425,766
 
 
 
Warrants 0.0%
 
Consumer Discretionary 0.0%
 
Reader's Digest Association, Inc., Expiration Date 2/19/2014*
 
972
 
0
 
Materials 0.0%
 
GEO Specialty Chemicals, Inc., Expiration Date 3/31/2015*
 
71,669
 
45,409
 
Hercules Trust II, Expiration Date 3/31/2029*
 
775
 
12,792
 
 
 
58,201
 
 
Total Warrants (Cost $124,997)
 
58,201
 
 
 
Cash Equivalents 8.0%
 
Central Cash Management Fund, 0.05% (c)
(Cost $12,845,331)
   
12,845,331
 
12,845,331
 
         
 
 
 
% of
Net Assets
 
Value ($)
 
 
Total Investment Portfolio (Cost $224,239,673) †
141.7
 
227,251,151
 
Other Assets and Liabilities, Net
(0.4)
 
(686,342)
 
Notes Payable
(41.3)
 
(66,250,000)
 
 
Net Assets
100.0
 
160,314,809
 
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 following table represents bonds and senior loans that are in default:
       
 
Security
 
Coupon
 
Maturity
Date
Principal Amount
 
Cost ($)
   
Value ($)
 
Alliance Mortgage Cycle Loan*
    9.5 %
6/15/2010
  466,667  
USD
    467,631       0  
Buffets, Inc.*
 
LIBOR plus 9.25
%
4/22/2015
  59,491  
USD
    58,019       29,745  
ERC Ireland Preferred Equity Ltd.*
    7.69 %
2/15/2017
  529,971  
EUR
    721,442       0  
Fontainebleau Las Vegas Holdings LLC*
    11.0 %
6/15/2015
  455,000  
USD
    456,800       0  
Hellas Telecommunications Finance*
    8.218 %
7/15/2015
  294,810  
EUR
    84,504       0  
                        1,788,396       29,745  
 
*
Non-income producing security.
 
**
Floating rate securities’ yields vary with a designated market index or market rate, such as the coupon-equivalent of the U.S. Treasury Bill rate. These securities are shown at their current rate as of August 31, 2013.
 
The cost for federal income tax purposes was $224,594,838.  At August 31, 2013, net unrealized appreciation for all securities based on tax cost was $2,656,313.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $7,230,215 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $4,573,902.
 
(a)
Principal amount stated in U.S. dollars unless otherwise noted.
 
(b)
The Fund may purchase securities that are subject to legal or contractual restrictions on resale (“restricted securities”).  Restricted securities are securities which have not been registered with the Securities and Exchange Commission under the Securities Act of 1933.  The Fund may be unable to sell a restricted security and it may be more difficult to determine a market value for a restricted security.  Moreover, if adverse market conditions were to develop during the period between the Fund’s decision to sell a restricted security and the point at which the Fund is permitted or able to sell such security, the Fund might obtain a price less favorable than the price that prevailed when it decided to sell.  This investment practice, therefore, could have the effect of increasing the level of illiquidity of the Fund.  The future value of these securities is uncertain and there may be changes in the estimated value of these securities.
 
 

 
Schedule of
Restricted Securities
 
Acquisition Date
 
Cost ($)
 
Value ($)
 
Value as %
of Net Assets
Dawn Holdings, Inc. *
 
August 2013
 
43,975
 
35,185
 
0.02

(c)
Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
 
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: London Interbank Offered Rate
 
PIK: Denotes that all or a portion of the income is paid in-kind in the form of additional principal.
 
REIT: Real Estate Investment Trust
 
   
 
At August 31, 2013, the Fund had unfunded loan commitments of $330,000, which could be extended at the option of the borrower, pursuant to the following loan agreement:
 
 
 

 
Borrower
Unfunded Loan Commitment ($)
 
Value ($)
 
Unrealized Appreciation ($)
Tallgrass Operations LLC, Term Delay Draw, 11/13/2017
330,000
 
331,650
 
1,650
 
 
 
At August 31, 2013, open credit default swap contracts sold were as follows:
 
Effective/
Expiration
Date
Notional
Amount ($) (d)
Fixed
Cash
Flows
Received
Underlying Debt
Obligation/
Quality Rating (e)
Value ($)
Upfront Payments
Paid/
(Received) ($)
Unrealized
Appreciation ($)
6/21/2010
9/20/2013
    865,000 1     5.0 %
Ford Motor Co.,
6.5%, 8/1/2018, BBB-
    11,240       (4,305 )     15,545  
6/21/2010
9/20/2013
    405,000 2     5.0 %
Ford Motor Co.,
6.5%, 8/1/2018, BBB-
    5,262       4,964       298  
6/21/2010
9/20/2015
    1,220,000 3     5.0 %
Ford Motor Co.,
6.5%, 8/1/2018, BBB-
    121,232       (27,925 )     149,157  
12/20/2011
3/20/2017
    440,000 4     5.0 %
CIT Group, Inc.,
5.5%, 2/15/2019, BB-
    54,251       13,171       41,080  
12/20/2012
12/20/2017
    3,500,000 3     5.0 %
Markit Dow Jones CDX North America High Yield Index
    217,135       71,549       145,586  
9/20/2012
12/20/2017
    525,000 5     5.0 %
General Motors Corp.,
3.3%, 12/20/2017, BB+
    75,271       33,580       41,691  
6/20/2013
9/20/2018
    750,000 3     5.0 %
Sprint Communications, Inc.,
6.0%, 12/1/2016, BB-
    47,308       45,022       2,286  
6/20/2013
9/20/2018
    710,000 1     5.0 %
HCA, Inc.,
8.0%, 10/1/2018, B-
    60,393       57,347       3,046  
Total unrealized appreciation
      398,689  
 
 
(d)
The maximum potential amount of future undiscounted payments that the Fund could be required to make under a credit default swap contract would be the notional amount of the contract.  These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of buy protection credit default swap contracts entered into by the Fund for the same referenced debt obligation, if any.
 
(e)
The quality ratings represent the higher of Moody's Investors Service, Inc. ("Moody's") or Standard & Poor's Corporation ("S&P") credit ratings and are unaudited.
 
 
Counterparties:
 
1
The Goldman Sachs & Co.
 
2
Citigroup, Inc.
 
3
Bank of America
 
4
Credit Suisse
 
5
UBS AG
 
As of August 31, 2013, the Fund had the following open forward foreign currency exchange contracts:
 
 
Contracts to Deliver
 
In Exchange For
 
Settlement
Date
 
Unrealized
Appreciation ($)
 
Counterparty
 
EUR
    1,395,100  
USD
    1,849,837  
9/17/2013
    5,900  
Citigroup, Inc.
 
Currency Abbreviations
       
 
EUR
Euro
           
USD
United States Dollar
           
 
 
 
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 August 31, 2013 in valuing the Fund's investments.

Assets
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Fixed Income Investments (f)
                       
Corporate Bonds
  $     $ 174,176,124     $ 0     $ 174,176,124  
Loan Participations and Assignments
          37,088,845       0       37,088,845  
Convertible Bonds
          413,888       1,296,570       1,710,458  
Preferred Security
          720,900             720,900  
Other Investments
                35,185       35,185  
Common Stocks (f)
          3,464       186,877       190,341  
Preferred Stock
          425,766             425,766  
Warrants (f)
                58,201       58,201  
Short-Term Investments
    12,845,331                   12,845,331  
Unfunded Loan Commitment
          1,650             1,650  
Derivatives (g)
                               
Credit Default Swap Contracts
          398,689             398,689  
Forward Foreign Currency Exchange Contracts
          5,900             5,900  
Total
  $ 12,845,331     $ 213,235,226     $ 1,576,833     $ 227,657,390  

During the period ended August 31, 2013, the amount of transfers between Level 2 and Level 3 was $491. Investments were transferred from Level 2 to Level 3 because of the lack of observable market data due to a decrease in market activity.
Transfers between price levels are recognized at the beginning of the reporting period.
 
(f)
See Investment Portfolio for additional detailed categorizations.
(g)
Derivatives include unrealized appreciation (depreciation) on credit default swap contracts and forward foreign currency exchange contracts.
 
 
Derivatives
 
The following table presents, by major type of derivative contract, the unrealized appreciation (depreciation) of the Fund's derivative instruments as of August 31, 2013 categorized by the primary underlying risk exposure. 

 
 
Primary Underlying Risk Disclosure
 
Swaps
   
Forward Currency Contracts
 
Credit Contracts
  $ 398,689     $  
Foreign Exchange Contracts
  $     $ 5,900  


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 High Income Trust
   
By:
/s/Robert Kendall
Robert Kendall
President
   
Date:
October 23, 2013


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.


By:
/s/Robert Kendall
Robert Kendall
President
   
Date:
October 23, 2013
   
   
   
By:
/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
   
Date:
October 23, 2013

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