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)

 

One South Street

Baltimore, MD  21202

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154

(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: 12/31/07

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of December 31, 2007  (Unaudited)** |
|----------------------|------------------------------------------|

 

 

**DWS Micro Cap Fund**

 

|   | **Shares**               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Value ($)** |
|--------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|        |
|   | **Common Stocks 100.3%** |  
**Consumer Discretionary 15.8%**

 
**Hotels Restaurants & Leisure 6.3%**

 
Benihana, Inc.*  

 

11,900 

 

150,535 

Benihana, Inc. "A"*  

 

75,600 

 

963,900 

Buffalo Wild Wings, Inc.* (a) 

 

90,800 

 

2,108,376 

McCormick & Schmick's Seafood Restaurants, Inc.*  

 

41,700 

 

497,481 

 

**3,720,292**

**Leisure Equipment & Products 1.9%**

 
Summer Infant, Inc.* (a) 

 

236,100 

 

**1,149,807**

**Media 1.0%**

 
RRSat Global Communications Network Ltd.*  

 

29,600 

 

**582,824**

 

 

 

 

**Specialty Retail 4.7%**

 
Citi Trends, Inc.* (a) 

 

73,600 

 

1,136,384 

NexCen Brands, Inc.*  

 

171,900 

 

831,996 

Zumiez, Inc.* (a) 

 

33,100 

 

806,316 

 

**2,774,696**

**Textiles, Apparel & Luxury Goods 1.9%**

 
Volcom, Inc.*  

 

52,600 

 

**1,158,778**

**Consumer Staples 7.8%**

 
**Food Products 4.9%**

 
Green Mountain Coffee Roasters, Inc.* (a) 

 

53,200 

 

2,165,240 

Zhongpin, Inc.* (a) 

 

57,500 

 

748,650 

 

**2,913,890**

**Personal Products 2.9%**

 
American Oriental Bioengineering, Inc.* (a) 

 

156,300 

 

**1,731,804**

**Energy 7.6%**

 
**Energy Equipment & Services 1.1%**

 
OYO Geospace Corp.*  

 

8,800 

 

**663,168**

**Oil, Gas & Consumable Fuels 6.5%**

 
Arena Resources, Inc.*  

 

37,600 

 

1,568,296 

Carrizo Oil & Gas, Inc.*  

 

30,600 

 

1,675,350 

Kodiak Oil & Gas Corp.*  

 

266,000 

 

585,200 

 

**3,828,846**

**Financials 6.8%**

 
**Diversified Financial Services 3.9%**

 
HAPC, Inc.* (a) 

 

116,000 

 

481,400 

Portfolio Recovery Associates, Inc. (a) 

 

45,700 

 

1,812,919 

 

**2,294,319**

**Insurance 2.9%**

 
eHealth, Inc.*  

 

53,900 

 

**1,730,729**

**Health Care 16.7%**

 
**Health Care Providers & Services 15.0%**

 
Air Methods Corp.*  

 

34,500 

 

1,713,615 

HMS Holdings Corp.*  

 

62,000 

 

2,059,020 

Nighthawk Radiology Holdings, Inc.* (a) 

 

79,000 

 

1,662,950 

Providence Service Corp.* (a) 

 

89,100 

 

2,507,274 

Skilled Healthcare Group, Inc. "A"*  

 

67,400 

 

986,062 

 

**8,928,921**

**Health Care Technology 1.7%**

 
Phase Forward, Inc.*  

 

46,200 

 

**1,004,850**

**Industrials 17.7%**

 
**Commercial Services & Supplies 9.1%**

 
Fuel Tech, Inc.* (a) 

 

108,200 

 

2,450,730 

Hill International, Inc.*  

 

112,500 

 

1,594,125 

Team, Inc.*  

 

36,000 

 

1,316,880 

 

**5,361,735**

**Electrical Equipment 1.4%**

 
AZZ, Inc.*  

 

23,200 

 

657,720 

Orion Energy Systems, Inc.*  

 

9,800 

 

182,868 

 

**840,588**

 

 

 

 

**Machinery 7.2%**

 
Badger Meter, Inc. (a) 

 

46,900 

 

2,108,155 

RBC Bearings, Inc.*  

 

50,000 

 

2,173,000 

 

**4,281,155**

**Information Technology 26.8%**

 
**Internet Software & Services 6.5%**

 
Bankrate, Inc.* (a) 

 

55,100 

 

2,649,759 

LoopNet, Inc.* (a) 

 

87,600 

 

1,230,780 

 

**3,880,539**

**IT Services 11.3%**

 
CyberSource Corp.*  

 

161,900 

 

2,876,963 

Edgewater Technology, Inc.*  

 

80,000 

 

584,000 

Forrester Research, Inc.*  

 

69,100 

 

1,936,182 

Yucheng Technologies Ltd.*  

 

99,800 

 

1,296,402 

 

**6,693,547**

**Semiconductors & Semiconductor Equipment 6.0%**

 
Netlogic Microsystems, Inc.* (a) 

 

23,000 

 

740,600 

PLX Technology, Inc.*  

 

62,900 

 

584,970 

Standard Microsystems Corp.*  

 

57,700 

 

2,254,339 

 

**3,579,909**

**Software 3.0%**

 
Fundtech Ltd.*  

 

42,000 

 

561,120 

Secure Computing Corp.*  

 

126,500 

 

1,214,400 

 

**1,775,520**

**Materials 1.1%**

 
**Metals & Mining**

Haynes International, Inc.*  

 

9,700 

 

**674,150**

**Total Common Stocks** (Cost $48,006,787)

 

**59,570,067**

 

**Securities Lending Collateral 37.4%**

 
Daily Assets Fund Institutional, 5.03%  (b) (c)(Cost $22,197,640)

 

 

22,197,640

 

**22,197,640**

 

**Cash Equivalents 0.1%**

 
Cash Management QP Trust, 4.67%  (b)(Cost $74,027)

 

 

74,027

 

**74,027**

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $70,278,454) 

137.8

 

**81,841,734**

**Other Assets and Liabilities, Net**(a)

(37.8)

 

**(22,461,066)**

**Net Assets**

100.0

 

**59,380,668**

 

*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.*

*(a)*

*All or a portion of these securities were on loan amounting to $21,281,959. In addition, included in other assets and liabilities is a pending sale, amounting to $235,991, that is also on loan.  The value of all securities loaned at December 31, 2007 amounted to $21,517,950 which is 36.2% 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.*

 

 

 

 

**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 half-year (the registrant’s second fiscal half-year in the case of the annual report) 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 Micro Cap Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

February 21, 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 Micro Cap Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

February 21, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        February 21, 2008

 

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