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  811-04760

DWS Advisor Funds

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code:  (212) 454-7190

Date of fiscal year end:  09/30

Date of reporting period: 6/30/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of June 30, 2009  (Unaudited)** |
|----------------------|--------------------------------------|

 

**DWS Small Cap Growth Fund**

 

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

**Common Stocks 99.7%**

 
**Consumer Discretionary 13.2%**

 
**Diversified Consumer Services 1.5%**

 
Capella Education Co.* (a) 

 

18,000 

 

**1,079,100**

 
**Hotels Restaurants & Leisure 2.7%**

 
Buffalo Wild Wings, Inc.* (a) 

 

30,690 

 

998,039 

 
Burger King Holdings, Inc.  

 

22,300 

 

385,121 

 
Red Robin Gourmet Burgers, Inc.*  

 

27,700 

 

519,375 

 
 

**1,902,535**

 
**Specialty Retail 7.2%**

 
Advance Auto Parts, Inc.  

 

26,000 

 

1,078,740 

 
Children's Place Retail Stores, Inc.*  

 

36,700 

 

969,981 

 
DSW, Inc. "A"* (a) 

 

58,900 

 

580,165 

 
Guess?, Inc.  

 

44,800 

 

1,154,944 

 
 

 

 

hhgregg, Inc.*  

 

37,900 

 

574,564 

 
Urban Outfitters, Inc.*  

 

38,300 

 

799,321 

 
 

**5,157,715**

 
**Textiles, Apparel & Luxury Goods 1.8%**

 
True Religion Apparel, Inc.*  

 

56,000 

 

**1,248,800**

 
**Consumer Staples 4.3%**

 
**Food & Staples Retailing 0.8%**

 
Casey's General Stores, Inc.  

 

21,700 

 

**557,473**

 
**Food Products 2.1%**

 
Darling International, Inc.*  

 

77,200 

 

509,520 

 
Green Mountain Coffee Roasters, Inc.* (a) 

 

17,400 

 

1,028,688 

 
 

**1,538,208**

 
**Personal Products 1.4%**

 
Chattem, Inc.* (a) 

 

14,300 

 

**973,830**

 
**Energy 9.0%**

 
**Energy Equipment & Services 2.2%**

 
Dril-Quip, Inc.*  

 

26,400 

 

1,005,840 

 
T-3 Energy Services, Inc.*  

 

43,300 

 

515,703 

 
 

**1,521,543**

 
**Oil, Gas & Consumable Fuels 6.8%**

 
Arena Resources, Inc.*  

 

29,800 

 

949,130 

 
BPZ Resources, Inc.* (a) 

 

203,500 

 

995,115 

 
Carrizo Oil & Gas, Inc.* (a) 

 

65,540 

 

1,124,011 

 
EXCO Resources, Inc.*  

 

74,610 

 

963,961 

 
Goodrich Petroleum Corp.* (a) 

 

33,700 

 

828,683 

 
 

**4,860,900**

 
**Financials 8.6%**

 
**Capital Markets 3.2%**

 
Duff & Phelps Corp. "A"  

 

42,400 

 

753,872 

 
Riskmetrics Group, Inc.* (a) 

 

36,800 

 

649,888 

 
Waddell & Reed Financial, Inc. "A"  

 

32,700 

 

862,299 

 
 

**2,266,059**

 
**Commercial Banks 0.7%**

 
PrivateBancorp., Inc.  

 

23,200 

 

**515,968**

 
**Consumer Finance 0.7%**

 
Dollar Financial Corp.*  

 

38,900 

 

**536,431**

 
**Diversified Financial Services 2.1%**

 
Portfolio Recovery Associates, Inc.* (a) 

 

38,890 

 

**1,506,210**

 
**Insurance 1.9%**

 
eHealth, Inc.* (a) 

 

74,700 

 

**1,319,202**

 
**Health Care 23.3%**

 
**Biotechnology 4.2%**

 
Alexion Pharmaceuticals, Inc.*  

 

28,500 

 

1,171,920 

 
BioMarin Pharmaceutical, Inc.*  

 

29,500 

 

460,495 

 
Myriad Genetics, Inc.*  

 

27,800 

 

991,070 

 
Myriad Pharmaceuticals, Inc.*  

 

6,450 

 

29,993 

 
United Therapeutics Corp.*  

 

4,300 

 

358,319 

 
 

**3,011,797**

 
**Health Care Equipment & Supplies 5.4%**

 
Hologic, Inc.*  

 

52,300 

 

744,229 

 
 

 

 

Masimo Corp.*  

 

33,000 

 

795,630 

 
NuVasive, Inc.* (a) 

 

21,900 

 

976,740 

 
Thoratec Corp.*  

 

50,700 

 

1,357,746 

 
 

**3,874,345**

 
**Health Care Providers & Services 6.8%**

 
AMERIGROUP Corp.*  

 

19,200 

 

515,520 

 
Centene Corp.*  

 

32,100 

 

641,358 

 
Genoptix, Inc.*  

 

34,100 

 

1,090,859 

 
Gentiva Health Services, Inc.*  

 

40,600 

 

668,276 

 
MEDNAX, Inc.*  

 

15,000 

 

631,950 

 
Psychiatric Solutions, Inc.*  

 

55,300 

 

1,257,522 

 
 

**4,805,485**

 
**Health Care Technology 0.8%**

 
Cerner Corp.*  

 

8,800 

 

**548,152**

 
**Life Sciences Tools & Services 2.6%**

 
Covance, Inc.*  

 

10,400 

 

511,680 

 
ICON PLC (ADR)  

 

35,600 

 

768,248 

 
Illumina, Inc.*  

 

15,100 

 

587,994 

 
 

**1,867,922**

 
**Pharmaceuticals 3.5%**

 
Flamel Technologies SA (ADR)* (a) 

 

36,319 

 

254,233 

 
MiddleBrook Pharmaceuticals, Inc.* (a) 

 

242,000 

 

326,700 

 
Mylan, Inc.*  

 

75,700 

 

987,885 

 
Par Pharmaceutical Companies, Inc.*  

 

59,900 

 

907,485 

 
 

**2,476,303**

 
**Industrials 15.0%**

 
**Aerospace & Defense 2.2%**

 
BE Aerospace, Inc.*  

 

55,140 

 

791,810 

 
Curtiss-Wright Corp.  

 

25,600 

 

761,088 

 
 

**1,552,898**

 
**Commercial Services & Supplies 0.6%**

 
Team, Inc.* (a) 

 

29,000 

 

**454,430**

 
**Construction & Engineering 0.7%**

 
MYR Group, Inc.*  

 

22,600 

 

**456,972**

 
**Electrical Equipment 5.4%**

 
A-Power Energy Generation Systems Ltd.* (a) 

 

63,100 

 

503,538 

 
AZZ, Inc.*  

 

23,200 

 

798,312 

 
Baldor Electric Co. (a) 

 

44,800 

 

1,065,792 

 
General Cable Corp.*  

 

19,500 

 

732,810 

 
Polypore International, Inc.*  

 

67,300 

 

748,376 

 
 

**3,848,828**

 
**Machinery 3.5%**

 
Astec Industries, Inc.*  

 

21,800 

 

647,242 

 
Badger Meter, Inc.  

 

19,100 

 

783,100 

 
RBC Bearings, Inc.*  

 

32,100 

 

656,445 

 
Terex Corp.*  

 

35,300 

 

426,071 

 
 

**2,512,858**

 
**Professional Services 0.9%**

 
FTI Consulting, Inc.*  

 

12,500 

 

**634,000**

 
**Road & Rail 1.7%**

 
Genesee & Wyoming, Inc. "A"*  

 

21,300 

 

564,663 

 
 

 

 

Knight Transportation, Inc.  

 

38,800 

 

642,140 

 
 

**1,206,803**

 
**Information Technology 24.2%**

 
**Electronic Equipment, Instruments & Components 2.1%**

 
Itron, Inc.* (a) 

 

27,770 

 

**1,529,294**

 
**Internet Software & Services 3.3%**

 
LogMeIn, Inc.*  

 

3,300 

 

52,800 

 
LoopNet, Inc.*  

 

120,300 

 

932,325 

 
MercadoLibre, Inc.*  

 

26,300 

 

706,944 

 
Omniture, Inc.*  

 

51,900 

 

651,864 

 
 

**2,343,933**

 
**IT Services 4.7%**

 
CyberSource Corp.*  

 

100,000 

 

1,530,000 

 
Forrester Research, Inc.*  

 

51,000 

 

1,252,050 

 
ManTech International Corp. "A"*  

 

12,700 

 

546,608 

 
 

**3,328,658**

 
**Semiconductors & Semiconductor Equipment 5.7%**

 
Atheros Communications*  

 

54,100 

 

1,040,884 

 
Cavium Networks, Inc.* (a) 

 

55,950 

 

940,519 

 
Microsemi Corp.*  

 

49,400 

 

681,720 

 
Netlogic Microsystems, Inc.* (a) 

 

37,300 

 

1,359,958 

 
 

**4,023,081**

 
**Software 8.4%**

 
ArcSight, Inc.*  

 

21,800 

 

387,386 

 
Blackboard, Inc.* (a) 

 

35,400 

 

1,021,644 

 
Concur Technologies, Inc.*  

 

34,800 

 

1,081,584 

 
FalconStor Software, Inc.*  

 

236,140 

 

1,121,665 

 
Rosetta Stone, Inc.*  

 

17,900 

 

491,176 

 
Taleo Corp. "A"*  

 

57,700 

 

1,054,179 

 
VanceInfo Technologies, Inc. (ADR)* (a) 

 

55,500 

 

819,735 

 
 

**5,977,369**

 
**Materials 2.1%**

 
**Chemicals 0.9%**

 
Airgas, Inc.  

 

16,100 

 

**652,533**

 
**Containers & Packaging 1.2%**

 
Silgan Holdings, Inc.  

 

17,200 

 

**843,316**

 
**Total Common Stocks** (Cost $71,562,102)

 

**70,932,951**

 
 

**Warrants 0.0%**

 
**Information Technology**

 
Lantronix, Inc., Expiration Date 2/9/2011*  (Cost $0)

 

865 

 

**26**

 
 

**Securities Lending Collateral 17.5%**

 
Daily Assets Fund Institutional, 0.48% (b) (c)(Cost $12,447,290)

 

 

12,447,290

 

**12,447,290**

 
 

**Cash Equivalents 0.9%**

 
Cash Management QP Trust, 0.27% (b)(Cost $616,773)

 

 

616,773

 

**616,773**

 
 

 

 

 

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

 

**Value ($)**

 
**Total Investment Portfolio** (Cost $84,626,165) †

118.1

 

**83,997,040**

 
**Other Assets and Liabilities, Net**

(18.1)

 

**(12,876,579)**

 
**Net Assets**

100.0

 

**71,120,461**

 
*For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.*

 
***

*Non-income producing security.*

 
*†*

*The cost for federal income tax purposes was $88,224,051.  At June 30, 2009, net unrealized depreciation for all securities based on tax cost was $4,227,011.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $8,684,637 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $12,911,648.*

 
*(a)*

*All or a portion of these securities were on loan. The value of all securities loaned at June 30, 2009 amounted to $12,015,008 which is 16.9% of net assets.*

 
*(b)*

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

 
*(c)*

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

 
*ADR: American Depositary Receipt*

 
 

***Fair Value Measurements***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements,” as amended, establishes a three-tier hierarchy for measuring fair value and requires additional disclosure about the classification of fair value measurements.*

 

*Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.*

 

*The following is a summary of the inputs used as of June 30, 2009 in valuing the Fund's investments:*

 

**Level 1**

**Level 2**

**Level 3**

**Total**

 
**Assets**

 

 

 

 

 
Common Stock and/or Other Equity Investments(d)

 

 

 

 

 
Consumer Discretionary

$            9,388,150

$                        —    

$              —   

$        9,388,150

 
Consumer Staples

3,069,511

—

—

3,069,511

 
Energy

6,382,443

—

—

6,382,443

 
Financials

6,143,870

—

—

6,143,870

 
Health Care

16,584,004

—

—

16,584,004

 
Industrials

10,666,789

—

—

10,666,789

 
Information Technology

17,202,335

—

26

17,202,361

 
Materials

1,495,849

—

—

1,495,849

 
Short-Term Investments(d)

12,447,290

616,773                                 

—

13,064,063

 
**Total**

**$          83,380,241**

**$        616,773**

**$             26**

**$ 83,997,040**

 
 

 

 

 

 
 
*(d)*

*See Investment Portfolio for additional detailed categorizations.*

 

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

**Level 3 Reconciliation**

**Common Stock and/or Other Equity Investments**

**Balance as of September 30, 2008**

$                    19

Realized gains (loss)

—

Change in unrealized appreciation (depreciation)

7

Amortization premium/discount

—

 

 

 

Net purchase (sales)

— 

Net transfers in (out) of Level 3

—

**Balance as of June 30, 2009**

**$                   26**

**Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2009**

**$                     7**

 

**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 Small Cap Growth Fund, a series of DWS Advisor Funds

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

August 17, 2009

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Registrant:

DWS Small Cap Growth Fund, a series of DWS Advisor Funds

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

August 17, 2009

 

 

 

 

 

 

By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

 

 

Date:

August 17, 2009

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