UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549



FORM N-CSR



Investment Company Act file number
        811-04760




DWS Advisor Funds

(Exact Name of Registrant as Specified in Charter)



345 Park Avenue

New York, NY 10154-0004

(Address of principal executive offices)             (Zip code)



Registrants Telephone Number, including Area Code:(212) 454-7190



Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and Address of Agent for Service)



Date of fiscal year end:
        3/31




Date of reporting period:
        3/31/09






ITEM 1.REPORT TO STOCKHOLDERS



MARCH 31, 2009
Annual Report
to ShareholdersDWS Lifecycle Long Range Fundllr_cover2f0 Contents 4Performance Summary
10Information About Your Fund's Expenses
12Portfolio Management Review
20Portfolio Summary
22Investment Portfolio
61Financial Statements
65Financial Highlights
67Notes to Financial Statements
77Report of Independent Registered Public Accounting Firm
78Tax Information
79Summary of Management Fee Evaluation by Independent
Fee Consultant
84Summary of Administrative Fee Evaluation by Independent
Fee Consultant
85Board Members and Officers
89Account Management Resources This report must be preceded or accompanied by a prospectus. To obtain a
prospectus for any of our funds, refer to the Account Management Resources
information provided in the back of this booklet. We advise you to consider the
fund's objectives, risks, charges and expenses carefully before investing. The
prospectus contains this and other important information about the fund. Please
read the prospectus carefully before you invest. Investments in mutual funds involve risk. Some funds have more risk than others.
Although asset allocation among different asset classes generally limits risk and exposure
to any one class, the risk remains that the investment advisor may favor an asset class
that performs poorly relative to the other asset classes. The fund is subject to stock
market risk, meaning stocks of companies the fund holds may decline in value for
extended periods of time due to the activities and financial prospects of individual
companies, or due to general market and economic conditions. Bond investments are
subject to interest-rate risk such that when interest rates rise, the prices of the bonds,
and thus the value of the fund, can decline and the investor can lose principal value.
Investing in foreign securities presents certain risks, such as currency fluctuation, political
and economic changes and market risks. Additionally, derivatives may be more volatile
and less liquid than traditional securities, and the fund could suffer losses on its
derivatives positions. Please read this fund's prospectus for specific details regarding its
investments and risk profile. DWS Investments is part of Deutsche Bank's Asset Management division and, within the US,
represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust
Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust
Company. NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY Performance SummaryMarch 31, 2009 Institutional Class All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment return
and principal value fluctuate with changing market conditions so that, when
redeemed, shares may be worth more or less than their original cost. Current
performance may be lower or higher than the performance quoted. Please visit
www.dws-investments.com for the Fund's most recent month-end performance. The total annual fund operating expense ratio, gross of any fee waivers or expense
reimbursements, as stated in the fee table of the prospectus dated August 1, 2008
is 0.89% for Institutional Class shares. Please see the Information About Your Fund's
Expenses, the Financial Highlights and Notes to the Financial Statements (Note C,
Related Parties) sections of this report for gross and net expense related disclosure
for the period ended March 31, 2009. Returns and rankings during all periods shown reflect a fee waiver and/or expense
reimbursement. Without this waiver/reimbursement, returns and rankings would have
been lower. Performance figures do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. Returns and rankings may differ by
share class. Average Annual Total Returnsas of 3/31/09DWS Lifecycle Long Range Fund
1-Year
3-Year
5-Year
10-YearInstitutional Class
-32.84%
-9.65%
-3.22%
-.42%Russell 1000® Index+
-38.27%
-13.24%
-4.54%
-2.57%MSCI EAFE Index+
-46.51%
-14.47%
-2.18%
-.84%Barclays Capital US Aggregate Bond Index+
3.13%
5.78%
4.13%
5.70%Blended Index through 3/31/09+
-24.99%
-6.41%
-1.64%
.45%Blended Index effective 4/1/09+
-26.30%
-6.51%
-.53%
1.78% Sources: Lipper Inc. and Deutsche Investment Management Americas Inc. Net Asset Value and Distribution InformationInstitutional
ClassNet Asset Value:
3/31/09
$     6.513/31/08
$     10.22Distribution Information:
Twelve Months as of 3/31/09:Income Dividends
$     .23Capital Gain Distributions
$     .13Return of Capital
$     .09 Growth of an Assumed $1,000,000 Investment[]DWS Lifecycle Long Range Fund  Institutional Class
[]Russell 1000 Index+
[]MSCI EAFE Index+
[]Barclays Capital US Aggregate Bond Index+
[]Blended Index through 3/31/09+
[] Blended Index effective 4/1/09+llr_g10k70Yearly periods ended March 31 Comparative Resultsas of 3/31/09DWS Lifecycle Long Range Fund
1-Year
3-Year
5-Year
10-YearInstitutional
Class
Growth of $1,000,000
$671,600
$737,600
$849,100
$958,900Average annual total return
-32.84%
-9.65%
-3.22%
-.42%Russell 1000
Index+
Growth of $1,000,000
$617,300
$653,100
$792,800
$770,800Average annual total return
-38.27%
-13.24%
-4.54%
-2.57%MSCI EAFE Index+
Growth of $1,000,000
$534,900
$625,600
$895,500
$919,100Average annual total return
-46.51%
-14.47%
-2.18%
-.84%Barclays Capital
US Aggregate
Bond Index+
Growth of $1,000,000
$1,031,300
$1,183,500
$1,224,100
$1,740,400Average annual total return
3.13%
5.78%
4.13%
5.70%Blended Index
through 3/31/09+
Growth of $1,000,000
$750,100
$819,700
$920,500
$1,045,500Average annual total return
-24.99%
-6.41%
-1.64%
.45%Blended Index
effective 4/1/09+
Growth of $1,000,000
$737,000
$817,100
$973,700
$1,193,000Average annual total return
-26.30%
-6.51%
-.53%
1.78% The growth of $1,000,000 is cumulative. The minimum initial investment for the Institutional Class is $1,000,000. +The Russell 1000 Index is an unmanaged index that measures the performance of the
1,000 largest companies in the Russell 3000 Index, which represents approximately 92%
of the total market capitalization of the Russell 3000 Index.  The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE)
Index is an unmanaged capitalization weighted index that tracks international stock
performance in the 21 developed markets of Europe, Australasia and the Far East. The
index is calculated using closing local market prices and translates into US dollars using the
London close foreign exchange rates.  The Barclays Capital US Aggregate Bond Index (name changed from Lehman Brothers US
Aggregate Index, effective November 3, 2008) is an unmanaged, market value weighted
measure of treasury issues, corporate bond issues and mortgage securities.  The Blended Index through 3/31/09 is calculated using the performance of six unmanaged
indices representative of stocks (Russell 1000 Index effective January 1, 2007, S&P 500
Index until December 31, 2006, Russell 2000 Index, and MSCI EAFE Index), bonds
(Citigroup Broad Investment Grade Bond Index until December 31, 2007, Barclays Capital
US Aggregate Bond Index and Credit Suisse High Yield Index as of January 1, 2008) and
cash (Merrill Lynch 3-month US Treasury Bill Index) weighted by their corresponding
proportion of the Fund's neutral position (stocks: 60%; bonds: 35%; cash: 5%). These
results are summed to produce the aggregate benchmark. Effective April 1, 2009, the Fund
changed its blended index because the Advisor believes that the new blended index better
reflects the Fund's investment strategy.  The Blended Index, effective April 1, 2009 consists of the Barclays Capital US Aggregate
Bond Index (27%), Russell 1000 Growth Index (20%), Russell 1000 Value Index (20%),
MSCI EAFE Index (8%), MSCI EAFE Small Cap Index (3%), Russell 2000 Index (6%),
Barclays Capital Global TIPS (5%), MSCI Emerging Markets Free Index (3%), Credit Suisse
High Yield Index (3%) and Merrill Lynch 3-month US Treasury Bill Index (5%).  Equity index returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees or expenses. It is not possible to invest directly into an index.  Fixed income index returns, unlike Fund returns, do not reflect any fees or expenses. It is
not possible to invest directly into an index.  Institutional Class Lipper Rankings  Mixed-Asset Target Allocation
Moderate Funds Categoryas of 3/31/09Period
Rank

Number of
Funds Tracked
Percentile
Ranking (%)1-Year
485
of
522
933-Year
312
of
391
805-Year
232
of
289
8010-Year
101
of
153
66 Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings
are based on total return with distributions reinvested. Rankings are for Institutional
Class shares; other share classes may vary. Class S Class S shares are generally not available to new investors except under certain
circumstances. (Please see the Fund's Statement of Additional Information.) All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment return
and principal value fluctuate with changing market conditions so that, when
redeemed, shares may be worth more or less than their original cost. Current
performance may be lower or higher than the performance quoted. Please visit
www.dws-investments.com for the Fund's most recent month-end performance. The total annual fund operating expense ratio, gross of any fee waivers or expense
reimbursements, as stated in the fee table of the prospectus dated August 1, 2008
is 1.05% for Class S shares. Please see the Information About Your Fund's Expenses,
the Financial Highlights and Notes to the Financial Statements (Note C, Related
Parties) sections of this report for gross and net expense related disclosure for the
period ended March 31, 2009. Returns and rankings during all periods shown reflect a fee waiver and/or expense
reimbursement. Without this waiver/reimbursement, returns and rankings would have
been lower. Performance figures do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. Returns and rankings may differ by
share class. On July 25, 2003, Class S shares of the Fund were issued in conjunction with the
combination of the Fund and Scudder Lifecycle Long Range Fund, each a feeder fund that
had invested all of its investable assets in the same master portfolio. Returns shown for
Class S shares for the period prior to July 25, 2003 are derived from the historical
performance of the Institutional Class shares of the DWS Lifecycle Long Range Fund
during such period and have been adjusted to reflect the higher total annual operating
expenses of the Class S shares. Any difference in expenses will affect performance. Average Annual Total Returnsas of 3/31/09DWS Lifecycle Long Range Fund
1-Year
3-Year
5-Year
10-YearClass S
-33.05%
-9.88%
-3.54%
-.80%Russell 1000 Index+
-38.27%
-13.24%
-4.54%
-2.57%MSCI EAFE Index+
-46.51%
-14.47%
-2.18%
-.84%Barclays Capital US Aggregate Bond Index+
3.13%
5.78%
4.13%
5.70%Blended Index through 3/31/09+
-24.99%
-6.41%
-1.64%
.45%Blended Index effective 4/1/09+
-26.30%
-6.51%
-.53%
1.78% Sources: Lipper Inc. and Deutsche Investment Management Americas Inc. Net Asset Value and Distribution InformationClass SNet Asset Value:
3/31/09
$     6.233/31/08
$     9.79Distribution Information:
Twelve Months as of 3/31/09:Income Dividends
$     .20Capital Gain Distributions
$     .13Return of Capital
$     .09 Growth of an Assumed $10,000 Investment[]DWS Lifecycle Long Range Fund  Class S
[]Russell 1000 Index+
[]MSCI EAFE Index+
[]Barclays Capital US Aggregate Bond Index+
[]Blended Index through 3/31/09+
[] Blended Index effective 4/1/09+llr_g10k60Yearly periods ended March 31 Comparative Resultsas of 3/31/09DWS Lifecycle Long Range Fund
1-Year
3-Year
5-Year
10-YearClass S
Growth of $10,000
$6,695
$7,320
$8,353
$9,231Average annual total return
-33.05%
-9.88%
-3.54%
-.80%Russell 1000 Index+
Growth of $10,000
$6,173
$6,531
$7,928
$7,708Average annual total return
-38.27%
-13.24%
-4.54%
-2.57%MSCI EAFE Index+
Growth of $10,000
$5,349
$6,256
$8,955
$9,191Average annual total return
-46.51%
-14.47%
-2.18%
-.84%Barclays Capital
US Aggregate Bond
Index+
Growth of $10,000
$10,313
$11,835
$12,241
$17,404Average annual total return
3.13%
5.78%
4.13%
5.70%Blended Index
through 3/31/09+
Growth of $10,000
$7,501
$8,197
$9,205
$10,455Average annual total return
-24.99%
-6.41%
-1.64%
.45%Blended Index effective
4/1/09+
Growth of $10,000
$7,370
$8,171
$9,737
$11,930Average annual total return
-26.30%
-6.51%
-.53%
1.78% The growth of $10,000 is cumulative. +The Russell 1000 Index is an unmanaged index that measures the performance of the
1,000 largest companies in the Russell 3000 Index, which represents approximately 92%
of the total market capitalization of the Russell 3000 Index.  The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE)
Index is an unmanaged capitalization weighted index that tracks international stock
performance in the 21 developed markets of Europe, Australasia and the Far East. The
index is calculated using closing local market prices and translates into US dollars using the
London close foreign exchange rates.  The Barclays Capital US Aggregate Bond Index (name changed from Lehman Brothers US
Aggregate Index, effective November 3, 2008) is an unmanaged, market value weighted
measure of treasury issues, corporate bond issues and mortgage securities.  The Blended Index through 3/31/09 is calculated using the performance of six unmanaged
indices representative of stocks (Russell 1000 Index effective January 1, 2007, S&P 500
Index until December 31, 2006, Russell 2000 Index, and MSCI EAFE Index), bonds
(Citigroup Broad Investment Grade Bond Index until December 31, 2007, Barclays Capital
US Aggregate Bond Index and Credit Suisse High Yield Index as of January 1, 2008) and
cash (Merrill Lynch 3-month US Treasury Bill Index) weighted by their corresponding
proportion of the Fund's neutral position (stocks: 60%; bonds: 35%; cash: 5%). These
results are summed to produce the aggregate benchmark. Effective April 1, 2009, the Fund
changed its blended index because the Advisor believes that it better reflects the Fund's
investment strategy.  The Blended Index, effective April 1, 2009 consists of the Barclays Capital US Aggregate
Bond Index (27%), Russell 1000 Growth Index (20%), Russell 1000 Value Index (20%),
MSCI EAFE Index (8%), MSCI EAFE Small Cap Index (3%), Russell 2000 Index (6%),
Barclays Capital Global TIPS (5%), MSCI Emerging Markets Free Index (3%), Credit Suisse
High Yield Index (3%) and Merrill Lynch 3-month US Treasury Bill Index (5%).  Equity index returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees or expenses. It is not possible to invest directly into an index.  Fixed income index returns, unlike Fund returns, do not reflect any fees or expenses. It is
not possible to invest directly into an index.  Class S Lipper Rankings  Mixed-Asset Target Allocation Moderate Funds
Categoryas of 3/31/09Period
Rank

Number of
Funds Tracked
Percentile
Ranking (%)1-Year
488
of
522
943-Year
319
of
391
825-Year
241
of
289
84 Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings
are based on total return with distributions reinvested. Rankings are for Class S shares;
other share classes may vary. Information About Your Fund's Expenses As an investor of the Fund, you incur two types of costs: ongoing expenses
and transaction costs. Ongoing expenses include management fees and
other Fund expenses. Examples of transaction costs include account
maintenance fees, which are not shown in this section. The following tables
are intended to help you understand your ongoing expenses (in dollars) of
investing in the Fund and to help you compare these expenses with the
ongoing expenses of investing in other mutual funds. In the most recent
six-month period, the Fund limited these expenses; had it not done so,
expenses would have been higher. The example in the table is based on an
investment of $1,000 invested at the beginning of the six-month period and
held for the entire period(October 1, 2008 to March 31, 2009). The tables illustrate your Fund's expenses in two ways: •   Actual Fund Return. This helps you estimate the actual dollar amount of
ongoing expenses (but not transaction costs) paid on a $1,000
investment in the Fund using the Fund's actual return during the period.
To estimate the expenses you paid over the period, simply divide your
account value by $1,000 (for example, an $8,600 account value divided
by $1,000 = 8.6), then multiply the result by the number in the
"Expenses Paid per $1,000" line under the share class you hold. •   Hypothetical 5% Fund Return. This helps you to compare your Fund's
ongoing expenses (but not transaction costs) with those of other mutual
funds using the Fund's actual expense ratio and a hypothetical rate of
return of 5% per year before expenses. Examples using a 5%
hypothetical fund return may be found in the shareholder reports of other
mutual funds. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you
paid for the period. Please note that the expenses shown in these tables are meant to highlight
your ongoing expenses only and do not reflect any transaction costs. The
"Expenses Paid per $1,000" line of the tables is useful in comparing
ongoing expenses only and will not help you determine the relative total
expense of owning different funds. An account maintenance fee of $6.25
per quarter for Class S shares may apply for certain accounts whose
balances do not meet the applicable minimum initial investment. This fee is
not included in these tables. If it was, the estimate of expenses paid for
Class S shares during the period would be higher, and account value during
the period would be lower, by this amount. Expenses and Value of a $1,000 Investmentfor the six months ended March 31, 2009Actual Fund Return
Class S
Institutional
ClassBeginning Account Value 10/1/08
$      1,000.00
$      1,000.00Ending Account Value 3/31/09
$      757.80
$      758.20Expenses Paid per $1,000*
$      3.90
$      2.59Hypothetical 5% Fund Return
Class S
Institutional
ClassBeginning Account Value 10/1/08
$      1,000.00
$      1,000.00Ending Account Value 3/31/09
$      1,020.49
$      1,021.99Expenses Paid per $1,000*
$      4.48
$      2.97 * Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied
by the average account value over the period, multiplied by the number of days in the most
recent six-month period, then divided by 365.  Annualized Expense Ratios
Class S
Institutional
ClassDWS Lifecycle Long Range Fund
.89%
.59% For more information, please refer to the Fund's prospectus. Portfolio Management Review DWS Lifecycle Long Range Fund: A Team Approach to Investing Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), which is part of Deutsche Asset Management, is the investment
advisor for DWS Lifecycle Long Range Fund. DIMA and its predecessors
have more than 80 years of experience managing mutual funds and DIMA
provides a full range of investment advisory services to institutional and
retail clients. Deutsche Asset Management is a global asset management organization
that offers a wide range of investing expertise and resources. This
well-resourced global investment platform brings together a wide variety of
experience and investment insight across industries, regions, asset classes
and investing styles. DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG.
Deutsche Bank AG is a major global banking institution that is engaged in a
wide range of financial services, including investment management, mutual
funds, retail, private and commercial banking, investment banking and
insurance. Aberdeen Asset Management Inc. ("AAMI"), a US registered investment
advisor, is a subadvisor for the fund. With respect to the core bond and
active fixed income portions of the fund only, AAMI makes the investment
decisions, buys and sells securities, and conducts the research that leads to
these purchase and sale decisions. AAMI is also responsible for selecting
brokers and dealers and for negotiating brokerage commissions and dealer
charges. AAMI provides a full range of international investment advisory
services to institutional and retail clients. AAMI is a direct, wholly owned
subsidiary of Aberdeen Asset Management PLC, the parent company of an
asset management group formed in 1983. Portfolio Management Team The following portfolio managers are responsible for the day-to-day
management of the fund's investments, except for the passive equity, core
bond and active fixed-income portions of the fund. Thomas Picciochi Director of Deutsche Asset Management and Portfolio Manager of the fund. •        Joined Deutsche Asset Management in 1999, formerly serving as portfolio manager for
Absolute Return Strategies, after 13 years of experience in various research and analysis
positions at State Street Global Advisors, FPL Energy, Barnett Bank, Trade Finance
Corporation and Reserve Financial Management. •        Senior portfolio manager for Quantitative Strategies Portfolio Management: New York. •        BA and MBA from University of Miami. •        Joined the fund in 2005. Robert Wang Managing Director of Deutsche Asset Management and Portfolio Manager of the fund. •        Joined Deutsche Asset Management in 1995 as a portfolio manager for asset allocation
after 13 years of experience in trading fixed income, foreign exchange and derivative
products at JPMorgan. •        Global Head of Quantitative Strategies Portfolio Management: New York. •        Joined the fund in 2000. •        BS, The Wharton School, University of Pennsylvania. Inna Okounkova Director of Deutsche Asset Management and Portfolio Manager of the fund. •        Global Asset Allocation portfolio manager: New York. •        Joined Deutsche Asset Management in 1999 as a quantitative analyst, becoming an
associate portfolio manager in 2001. •        Joined the fund in 2007. •        BS, MS, Moscow State University; MBA, University of Chicago. James B. Francis, CFA Director of Deutsche Asset Management and Portfolio Manager of the fund. •        Head of Active Quantitative Equity Portfolio Management: New York. •        Joined Deutsche Asset Management in 2008 after 20 years of experience as senior
quantitative global equity portfolio manager at State Street Global Advisors, and most
recently, Northern Trust Global Investments. •        Joined the fund in 2008. •        BS in Applied Mathematics from University of Massachusetts, Amherst. The following AAMI portfolio manager is responsible for the day-to-day
management of the fixed-income (not including high-yield) portion of
the fund. J. Christopher Gagnier Head of Core Plus Fixed Income product and senior portfolio manager for corporate and
commercial mortgages: Philadelphia. •        Joined Aberdeen Asset Management Inc. and the fund in 2005. •        Formerly, Managing Director of Deutsche Asset Management; joined Deutsche Asset
Management in 1997 after 17 years of experience in fixed income investments at
PaineWebber and Continental Bank. •        BS from Wharton School of Business; MBA from University of Chicago. In the following interview, the portfolio management team
discusses DWS Lifecycle Long Range Fund's performance, strategy and
the market environment during the fund's fiscal year ended March 31,
2009. The views expressed in the following discussion reflect those of the portfolio management
team only through the end of the period of the report as stated on the cover. The management
team's views are subject to change at any time based on market and other conditions and
should not be construed as a recommendation. Past performance is no guarantee of future
results. Current and future portfolio holdings are subject to risk. Q: How would you describe the market environment over the
last year? A:In the semiannual report for this fund, published six months ago,
we described the preceding period as a time of economic
uncertainty and turmoil in capital markets. In the ensuing months,
there was pronounced deterioration in the economy and financial
markets, not only in the US but throughout the world. In
December 2008, the National Bureau of Economic Research (NBER)
officially declared that the US economy had fallen into a recession
that began in December 2007. With the economy and financial
markets closely interrelated, the limited availability of credit and a
lack of investor confidence hit asset prices, and the resulting loss of
wealth contributed further to an economic slowdown. There was a
pronounced decline in the equity market and in essentially all asset
classes that carry risk in the final months of 2008. Although the
economy and markets remained weak into early 2009, the condition
of credit markets has improved. Bonds that carry credit risk began
to recover in the first quarter of 2009, and the equity market moved
up in March. In this very difficult environment, essentially all US equity indices
posted negative returns for the 12 months ended March 31, 2009.
The Russell 3000® Index, which is generally regarded as a good
indicator of the broad stock market, posted a negative return of
-38.20% for the period.1 The difference between performance of
large-cap and small-cap stocks was not great: the Russell 1000®
Index, which measures performance of large-cap stocks, returned
-38.27%, while the small-cap Russell 2000® Index returned
-37.50%.2 Growth stocks performed better than value stocks: the
Russell 3000® Growth Index returned -34.42%, while the Russell
3000® Value Index returned -42.14%.3 Most international markets
were even weaker than the US market: return of the Morgan
Stanley Capital International (MSCI) Europe, Australasia and Far East
(EAFE) Index, which measures performance of a broad range of
international markets, was -46.51%.4 Emerging markets generally
performed in line with developed markets: return of the MSCI
Emerging Markets Index was -46.90%.5 1 The Russell 3000 Index is an unmanaged index that measures the performance of the
3,000 largest US companies based on total market capitalization, which represents
approximately 98% of the investable US equity market.  2 The Russell 1000 Index is an unmanaged index that measures the performance of the
1,000 largest companies in the Russell 3000 Index, which represents approximately 92%
of the total market capitalization of the Russell 3000 Index. The Russell 2000 Index is an
unmanaged index that measures the performance of the 2,000 smallest companies in the
Russell 3000 Index, which represents approximately 8% of the total market capitalization
of the Russell 3000 Index.  3 The Russell 3000 Growth Index is an unmanaged index that measures the performance of
those Russell 3000 companies with higher price-to-book ratios and higher forecasted
growth values, while the Russell 3000 Value Index is an unmanaged index that measures
the performance of those Russell 3000 companies with lower price-to-book ratios and
lower forecasted growth values.  4 The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE)
Index is an unmanaged, capitalization-weighted index that tracks international stock
performance in the 21 developed markets of Europe, Australasia and the Far East.  5 The MSCI Emerging Markets Index is a float-adjusted,-capitalization-weighted index
created by Morgan Stanley Capital International to measure market performance in global
emerging markets.  MSCI indices are calculated using closing market prices and translate to US dollars using
the London close foreign exchange rates.  Index returns assume reinvestment of dividends and, unlike fund returns, do not include
fees or expenses. It is not possible to invest directly into an index.  The major theme in the bond market over the past year was
discomfort with credit risk. Accordingly, bonds with the highest
credit ratings, especially US Treasury bonds, which are assumed to
carry no credit risk, and investment-grade bonds, generated positive
returns, while returns of high-yield bonds were sharply negative.
The Barclays Capital US Treasury Index, which measures
performance of US Treasury notes with a variety of maturities,
returned 7.48% for the 12-month period ended March 31, 2009.6
The Barclays Capital US Aggregate Bond Index, which measures
performance of the US bond market as a whole, returned 3.13% for
the period. Bonds with below-investment-grade credit ratings
performed poorly: the return of the Barclays Capital US Corporate
High Yield Index, which measures performance of high-yield bonds,
was -19.31%.7 6The Barclays Capital US Treasury Index (name changed from Lehman Brothers
US Treasury Index, effective November 3, 2008) is an unmanaged index of public
obligations of the US Treasury.  7 The Barclays Capital US Aggregate Bond Index (name changed from Lehman Brothers US
Aggregate Index, effective November 3, 2008) is an unmanaged, market-value- weighted
measure of Treasury issues, corporate bond issues and mortgage securities.   The Barclays Capital US Corporate High Yield Index (name changed from Lehman Brothers
US Corporate High Yield Index, effective November 3, 2008) is an unmanaged,
market-value-weighted measure of high-yield bonds.  Index returns, unlike fund returns, do not reflect any fees or expenses. It is not possible to
invest directly into an index.  Q: How is DWS Lifecycle Long Range Fund managed? A:The fund seeks high total return with reduced risk over the long
term. The fund's assets are allocated among various equity and
fixed-income asset categories. We generally allocate the largest
portion of its assets to equity securities, with smaller allocations to
fixed-income securities. We review the fund's allocation among the
various asset categories periodically and may adjust the allocation
based on current or expected market conditions or to manage risk
as is consistent with the fund's investment objective. We use one or more strategies within each asset category for
selecting equity and fixed-income securities for the fund's portfolio.
Each strategy is managed by a team of portfolio managers that
specializes in its respective category, using a variety of quantitative
and qualitative techniques. In addition to the fund's main investment strategy, we seek to
enhance returns by employing a global tactical asset allocation
overlay strategy. This strategy, which DWS Investments calls iGAP
(integrated Global Alpha Platform), attempts to take advantage of
short- and medium-term mispricings within global bond, equity and
currency markets.8 The iGAP strategy is implemented through the
use of derivatives, which are contracts or other instruments whose
value is based on, for example, indices, currencies or securities. The
iGAP strategy primarily uses exchange-traded futures contracts on
global bonds and equity indices and over-the-counter forward
currency contracts, and is expected to have a low correlation to the
fund's other securities holdings.9 This strategy makes it possible to
take long and short positions in different asset classes without
having to make dramatic shifts in the stock, bond and cash
allocations of the underlying strategies.10 8 The iGAP strategy may use instruments including but not limited to futures, options and
currency forwards. Derivatives may be more volatile and less liquid than traditional
securities, and the strategy could suffer losses on its derivatives positions.  9 Correlation is a measure of how closely two variables move together over time. A 1.0
equals perfect correlation. A -1.0 equals total negative correlation.  10 Futures and options are used as a low-cost method for gaining exposure to a particular
securities market without investing directly in those securities. Forward currency
transactions are the purchase or sale of a foreign currency at an exchange rate established
now, but with payment and delivery at a specified future time. Forward currency
transactions are used as hedges and, where possible, to add to investment returns.  A long position is the buying of a security such as a stock, commodity or currency with the
expectation that the asset will rise in value. A short position is the sale of a borrowed
security, commodity or currency with the expectation that the asset will fall in value.  Q: How is the fund positioned with regard to allocation of assets
among asset classes? A:We review strategic asset allocation at least annually or more
frequently if market conditions warrant. The target allocation in
place for most of the last year was 43% in large-cap equities, 7% in
small-cap equities, 10% in international equities, 32% in
investment-grade bonds, 3% in high-yield bonds and 5% in cash
equivalents. On February 27, 2009, we began the first stage of transitioning the
fund to its new strategic asset allocation. One change was the
establishment of a new 3% allocation to emerging markets. This
change contributed to performance, as emerging markets were
quite strong during the month of March. As a part of the transition to the fund's new strategic asset
allocation, we plan to establish a 3% allocation to global small-cap
equities and a 5% allocation to global inflation-protected Treasury
securities. These changes will be balanced by a reduction in the
exposure to several equity categories as well as investment-grade
bonds. Q: How did the fund perform during the period? A:We find that an effective way to evaluate performance is to
compare returns to those of a peer group of funds that allocate
assets among several asset classes, the Lipper Mixed-Asset Target
Allocation Moderate Funds category.11 For the 12 months ended
March 31, 2009, the DWS Lifecycle Long Range Fund had a return
of -32.84% (Institutional Class). The fund underperformed its Lipper
peer group of Mixed-Asset Target Allocation Moderate Funds, which
had an average return of -25.56%. (Past performance is no
guarantee of future results. Please see pages 3 through 8 for the
performance of other share classes and more complete
performance information.) 11 The Lipper Mixed-Asset Target Allocation Moderate Funds category is a group of mutual
funds that, by portfolio practice, maintain a mix of 0% to 60% equity securities, with the
remainder invested in bonds, cash and cash equivalents. Category returns assume
reinvestment of dividends. It is not possible to invest directly into a Lipper category.  Q: What decisions had the greatest effect on the fund's
performance over the period? A:Over this 12-month period, the underlying strategies as a group
detracted from performance. In particular the core fixed-income
strategy, the quantitative equity strategy and the fundamental
international equity strategy detracted from performance. Within the quantative equity strategy, major detractors at the
industry level were health care equipment & supplies,
transportation, and energy. Equity holdings in this portion of the
portfolio that detracted from performance included General
Dynamics Corp., Mariner Energy, Inc. and W&T Offshore, Inc. The fundamental international equity sleeve also detracted from
performance during the last 12 months, mainly because of stock
selection in the consumer discretionary and industrials sectors and
a position in the Russian market. Within the core fixed-income strategy, exposure to mortgage-
backed securities was the main cause of underperformance,
followed by exposure to corporate bonds. The quantitative international equity strategy added value over this
period. An underweight in the United Kingdom financials sector, a
group that was down significantly for the year, was the largest
positive contributor to performance.12 Positions in the defensive
Asian utilities sector also contributed to performance. 12"Overweight" means the fund holds a higher weighting in a given sector or security than
the benchmark. "Underweight" means the fund holds a lower weighting.  The iGAP strategy detracted from performance over this 12-month
period, mainly because of its positioning in equity and currency
markets. The severe downturn in global equity markets made the
predominantly long equity position disadvantageous. In currencies,
the bias toward the Norwegian krone and Singapore dollar detracted
from value. Investor fear and aversion to risk led to an unwinding of
the carry trade, a strategy where high-yielding currencies are funded
with low-yielding currencies. This, along with the fall in energy
prices, negatively impacted the Norwegian economy, depressing
the Norwegian krone. A long position in the Singapore dollar also
detracted as investors rushed towards liquidity and the perceived
safety of the US dollar. The predominantly net long-bond positions
added value, as bonds rallied and central banks cut interest rates in
response to the financial crisis. However, these gains were not
enough to offset the losses in the currency and equity positions. In the last two months of the fiscal year, however, the iGAP strategy
contributed to performance. This performance was driven
predominantly by fixed-income positioning, with currency
positioning of secondary importance. A long position in UK
government bonds was a major contributor, especially following the
surprise purchase of these bonds by the Bank of England in March.
A short-dollar position added to performance, with long positions in
Australian, Swedish and New Zealand currencies especially positive,
as these currencies appreciated significantly relative to the dollar. Portfolio Summary Asset Allocation(As a % of Investment Portfolio excluding
Securities Lending Collateral)
3/31/09
3/31/08Common Stocks
57%
58%Corporate Bonds
9%
8%Government & Agency Obligations
9%
5%Collateralized Mortgage Obligations
6%
9%Mortgage-Backed Securities Pass-Throughs
6%
6%Cash Equivalents
5%
7%Exchange Traded Funds
4%
Commercial Mortgage-Backed Securities
2%
5%Municipal Bonds & Notes
1%
1%Asset Backed
1%
Preferred Securities

1%100%
100% Sector Diversification(As a % of Equities and Corporate
Bonds)
3/31/09
3/31/08Information Technology
14%
13%Financials
14%
18%Health Care
13%
10%Energy
12%
13%Industrials
11%
11%Consumer Discretionary
10%
10%Consumer Staples
10%
8%Utilities
6%
6%Telecommunication Services
5%
6%Materials
5%
5%100%
100% Geographical Diversification(As a % of Equity Securities)
3/31/09
3/31/08United States
84%
78%Europe (excluding United Kingdom)
9%
9%Japan
2%
2%Pacific Basin
2%
3%United Kingdom
1%
2%Other
2%
6%100%
100% Asset allocation, sector and geographical diversifications are subject to change. Ten Largest Equity Holdings at March 31, 2009(10.7% of Net Assets)1.      ExxonMobil Corp.
Explorer and producer of oil and gas
1.8%2.      Microsoft Corp.
Developer of computer software
1.4%3.      Chevron Corp.
Operator of petroleum exploration, delivery and refining facilities
1.2%4.      International Business Machines Corp.
Manufacturer of computers and provider of information processing services
1.1%5.      Verizon Communications, Inc.
Provider of advanced communication and information technology services
1.0%6.      Abbott Laboratories
Developer of health care products
0.9%7.      JPMorgan Chase & Co.
Provider of global financial services
0.9%8.      Apple, Inc.
Manufacturer of personal computers and personal computing and
communication solutions
0.8%9.      Eli Lilly & Co.
Producer of pharmaceuticals
0.8%10.     QUALCOMM, Inc.
Developer and manufacturer of communication systems
0.8% Portfolio holdings are subject to change. For more complete details about the Fund's investment portfolio, see page 22. A quarterly Fact
Sheet is available upon request. A complete list of the Fund's portfolio holdings is posted as of
the month end on www.dws-investments.com on or about the 15th day of the following
month. More frequent posting of portfolio holdings information may be made from time to time
on www.dws-investments.com. Please see the Account Management Resources section for
contact information. Following the Fund's fiscal first and third quarter-end, a complete portfolio
holdings listing is filed with the SEC on Form N-Q. This form will be available
on the SEC's Web site at www.sec.gov, and it also may be reviewed and
copied at the SEC's Public Reference Room in Washington, D.C. Information
on the operation of the SEC's Public Reference Room may be obtained by
calling (800) SEC-0330. Investment Portfolioas of March 31, 2009 Shares
Value ($)Common Stocks 56.6%Consumer Discretionary 5.1%Auto Components 0.2%Aisin Seiki Co., Ltd.
100
1,600Bridgestone Corp.
400
5,776Compagnie Generale des Etablissements Michelin "B"
157
5,813Denso Corp.
300
6,061Magna International, Inc. "A"
500
13,301Nokian Renkaat Oyj
135
1,588Stoneridge, Inc.*
9,200
19,412Toyota Industries Corp.
200
4,312WABCO Holdings, Inc.
52,282
643,592701,455Automobiles 0.1%Bayerische Motoren Werke (BMW) AG
657
19,064Daimler AG (Registered)
823
20,920Fiat SpA
9,037
63,209Honda Motor Co., Ltd.
1,100
26,319Isuzu Motors Ltd.
1,000
1,232Mitsubishi Motors Corp.*
3,000
3,839Nissan Motor Co., Ltd.
1,400
5,058PSA Peugeot Citroen
169
3,188Renault SA
194
4,007Suzuki Motor Corp.
200
3,347Toyota Motor Corp.
14,800
474,677Volkswagen AG
98
30,172655,032Distributors 0.0%Li & Fung Ltd.
18,000
42,466Diversified Consumer Services 0.1%Lincoln Educational Services Corp.*
11,000
201,520Steiner Leisure Ltd.*
8,100
197,721399,241Hotels Restaurants & Leisure 1.0%Accor SA
229
7,959Buffalo Wild Wings, Inc.*
3,000
109,740California Pizza Kitchen, Inc.*
5,800
75,864Carnival PLC
221
5,007CEC Entertainment, Inc.*
8,700
225,156Compass Group PLC
2,937
13,421Crown Ltd.
8,941
39,285InterContinental Hotel Group PLC
373
2,836Lottomatica SpA
479
7,886McDonald's Corp.
46,722
2,549,620Shangri-La Asia Ltd.
12,000
13,770Sodexo
129
5,874TABCORP Holdings Ltd.
9,702
43,912Tatts Group Ltd.
19,933
38,406TUI AG
232
1,241Whitbread PLC
338
3,814Yum! Brands, Inc.
27,600
758,4483,902,239Household Durables 0.4%D.R. Horton, Inc.
33,900
328,830Electrolux AB "B"
1,200
9,398Garmin Ltd.
35,600
755,076Husqvarna AB "B"
1,300
5,255NVR, Inc.*
700
299,425Panasonic Corp.
1,000
10,989Persimmon PLC
383
1,904Ryland Group, Inc.
5,200
86,632Sekisui House Ltd.
1,000
7,652Sharp Corp.
1,000
7,993Sony Corp.
600
12,3021,525,456Internet & Catalog Retail 0.4%Amazon.com, Inc.*
14,200
1,042,848Home Retail Group PLC
1,046
3,348Liberty Media Corp.  Interactive "A"*
114,900
333,210Netflix, Inc.*
2,200
94,4241,473,830Media 1.4%British Sky Broadcasting Group PLC
1,807
11,217Comcast Corp. "A"
168,400
2,296,976DISH Network Corp. "A"*
88,700
985,457Fairfax Media Ltd.
24,491
17,158Gestevision Telecinco SA
500
3,461ITV PLC
4,753
1,288Lagardere SCA
166
4,652Marvel Entertainment, Inc.*
8,600
228,330Mediacom Communications Corp. "A"*
35,800
144,274Mediaset SpA
6,937
30,990Modern Times Group MTG AB "B"
250
4,270National CineMedia, Inc.
5,100
67,218Pearson PLC
966
9,699Publicis Groupe
212
5,428Reed Elsevier NV
4,876
52,143Reed Elsevier PLC
2,143
15,378Seat Pagine Gialle SpA*
137
129SES "A" (FDR)
261
4,980Shaw Communications, Inc. "B"
2,000
30,489Singapore Press Holdings Ltd.
106,000
177,403Thomson Reuters Corp.
2,400
61,675Thomson Reuters PLC
202
4,526Time Warner Cable, Inc.
15,537
385,318Time Warner, Inc.
61,900
1,194,670United Business Media Ltd.
550
3,362Vivendi
1,187
31,364Wolters Kluwer NV
2,435
39,532WPP PLC
1,283
7,214Yellow Pages Income Fund (Units)
600
2,8375,821,438Multiline Retail 0.2%Canadian Tire Corp., Ltd. "A"
200
6,948Macy's, Inc.
99,600
886,440Marks & Spencer Group PLC
1,707
7,202Next PLC
252
4,752PPR
86
5,503910,845Specialty Retail 1.1%Aeropostale, Inc.*
9,600
254,976Barnes & Noble, Inc.
47,900
1,024,102Cato Corp. "A"
12,100
221,188Children's Place Retail Stores, Inc.*
8,700
190,443Esprit Holdings Ltd.
8,800
45,428Foot Locker, Inc.
34,400
360,512Hennes & Mauritz AB "B"
8,150
305,914Hot Topic, Inc.*
11,500
128,685Industria de Diseno Textil SA
2,606
101,362Kingfisher PLC
2,909
6,234Rent-A-Center, Inc.*
11,700
226,629Signet Jewelers Ltd.
18,900
216,405The Buckle, Inc.
7,550
241,072The Gap, Inc.
64,000
831,360TJX Companies, Inc.
13,900
356,396Yamada Denki Co., Ltd.
70
2,7234,513,429Textiles, Apparel & Luxury Goods 0.2%Adidas AG
193
6,437Billabong International Ltd.
200
1,185Burberry Group PLC
630
2,525Carter's, Inc.*
12,000
225,720Christian Dior SA
168
9,235Compagnie Financiere Richemont SA "A"
4,018
62,575FGX International Holdings Ltd.*
2,000
23,240Fuqi International, Inc.*
5,000
23,500Gildan Activewear, Inc.*
600
4,883Hermes International
82
9,526Luxottica Group SpA
740
11,488LVMH Moet Hennessy Louis Vuitton SA
250
15,672Steven Madden Ltd.*
8,400
157,752Swatch Group AG (Bearer)
226
27,237Swatch Group AG (Registered)
506
12,336The Warnaco Group, Inc.*
4,800
115,200708,511Consumer Staples 5.8%Beverages 0.2%Anheuser-Busch InBev NV
2,032
56,110Asahi Breweries Ltd.
700
8,415Carlsberg AS "B"
10,568
436,639Coca-Cola Amatil Ltd.
1,082
6,527Diageo PLC
2,872
32,429Foster's Group Ltd.
6,329
22,291Heineken NV
556
15,834Kirin Holdings Co., Ltd.
1,000
10,669Pernod Ricard SA
372
20,792SABMiller PLC
1,041
15,522625,228Food & Staples Retailing 1.6%Aeon Co., Ltd.
1,700
11,118Carrefour SA
1,176
45,831Casino Guichard-Perrachon SA
123
7,989Colruyt SA
122
27,997Delhaize Group
424
27,499George Weston Ltd.
300
13,920J Sainsbury PLC
1,965
8,812Kesko Oyj "B"
199
4,125Koninklijke Ahold NV
3,447
37,737Lawson, Inc.
100
4,124Loblaw Companies Ltd.
700
17,406Metro AG
1,069
35,333Metro, Inc. "A"
600
18,036Pantry, Inc.*
7,700
135,597Safeway, Inc.
43,800
884,322Seven & I Holdings Co., Ltd.
9,500
209,748Shoppers Drug Mart Corp.
1,400
48,125SUPERVALU, Inc.
36,600
522,648Sysco Corp.
68,333
1,557,992Tesco PLC
8,774
41,992Village Super Market, Inc. "A"
1,000
31,170Wal-Mart Stores, Inc.
52,214
2,720,349Wesfarmers Ltd.
1,881
24,590Wesfarmers Ltd. (PPS)
246
3,243William Morrison Supermarkets PLC
2,064
7,556Woolworths Ltd.
3,147
54,9376,502,196Food Products 1.6%Ajinomoto Co., Inc.
1,000
7,055Archer-Daniels-Midland Co.
98,400
2,733,552Aryzta AG*
119
2,783Bunge Ltd.
38,600
2,186,690Cadbury PLC
1,536
11,601Danisco AS
850
25,476Darling International, Inc.*
42,800
158,788Diamond Foods, Inc.
6,800
189,924Golden Agri-Resources Ltd.
11,440
2,093Groupe DANONE
675
32,949J & J Snack Foods Corp.
5,700
197,163Kerry Group PLC "A"
4,686
95,340Lance, Inc.
300
6,246Nestle SA (Registered)
17,779
601,810Nissin Foods Holdings Co., Ltd.
200
5,873Parmalat SpA
4,471
9,218Saputo, Inc.
1,300
21,591Tate & Lyle PLC
684
2,553Unilever NV (CVA)
3,555
70,280Unilever PLC
1,440
27,293Wilmar International Ltd.
2,000
4,1736,392,451Household Products 0.9%Central Garden & Pet Co. "A"*
22,800
171,456Colgate-Palmolive Co.
34,000
2,005,320Henkel AG & Co. KGaA
797
20,157Kao Corp.
1,000
19,607Kimberly-Clark Corp.
16,600
765,426Procter & Gamble Co.
14,841
698,863Reckitt Benckiser Group PLC
433
16,296Unicharm Corp.
100
6,0933,703,218Personal Products 0.2%Beiersdorf AG
812
36,514China Sky One Medical, Inc.*
12,500
143,750Herbalife Ltd.
48,700
729,526L'Oreal SA
411
28,341Nu Skin Enterprises, Inc. "A"
1,500
15,735Shiseido Co., Ltd.
1,000
14,650968,516Tobacco 1.3%Altria Group, Inc.
56,864
910,961British American Tobacco PLC
2,332
53,998Imperial Tobacco Group PLC
14,583
327,512Japan Tobacco, Inc.
90
240,356Lorillard, Inc.
42,300
2,611,602Philip Morris International, Inc.
23,800
846,804Swedish Match AB
10,105
146,0845,137,317Energy 6.2%Energy Equipment & Services 1.0%Aker Solutions ASA
1,050
6,792AMEC PLC
23,138
175,955Cameron International Corp.*
24,500
537,285CARBO Ceramics, Inc.
900
25,596Compagnie Generale de Geophysique-Veritas*
126
1,459Diamond Offshore Drilling, Inc.
35,600
2,237,816Fugro NV (CVA)
1,590
50,490Matrix Service Co.*
21,700
178,374Oil States International, Inc.*
18,300
245,586Petroleum Geo-Services ASA*
950
3,994Prosafe SE*
500
1,801Saipem SpA
17,798
317,536SBM Offshore NV
3,735
49,668Seadrill Ltd.
700
6,877Technip SA
115
4,053Tenaris SA
591
5,981Tidewater, Inc.
5,700
211,641WorleyParsons Ltd.
411
5,1704,066,074Oil, Gas & Consumable Fuels 5.2%Alpha Natural Resources, Inc.*
19,100
339,025BG Group PLC
34,220
518,679Bill Barrett Corp.*
4,600
102,304BP PLC
5,924
39,646Cameco Corp.
200
3,418Canadian Natural Resources Ltd.
200
7,759Canadian Oil Sands Trust (Units)
200
3,847Chevron Corp.
69,573
4,678,089Clayton Williams Energy, Inc.*
4,800
140,352Comstock Resources, Inc.*
600
17,880ConocoPhillips
60,600
2,373,096Enbridge, Inc.
200
5,766EnCana Corp.
300
12,278Eni SpA
3,640
70,083EXCO Resources, Inc.*
24,500
245,000ExxonMobil Corp.
104,466
7,114,135Frontline Ltd.
140
2,512Gazprom (ADR)
22,750
334,213Husky Energy, Inc.
200
4,243Imperial Oil Ltd.
400
14,531INPEX Corp.
4
27,538James River Coal Co.*
7,600
93,784Mariner Energy, Inc.*
81,245
629,649McMoRan Exploration Co.*
31,800
149,460Murphy Oil Corp.
34,200
1,531,134Nexen, Inc.
300
5,087Nippon Mining Holdings, Inc.
5,000
20,174Nippon Oil Corp.
8,000
39,987Occidental Petroleum Corp.
6,902
384,096OMV AG
3,491
116,059Origin Energy Ltd.
2,856
29,542Petro-Canada
300
8,059Petroleo Brasileiro SA (ADR)
9,500
289,465Repsol YPF SA
9,944
171,773Royal Dutch Shell PLC "A"
1,131
25,431Royal Dutch Shell PLC "B"
862
18,894Santos Ltd.
1,760
20,496Showa Shell Sekiyu KK
700
6,441StatoilHydro ASA
23,600
412,504Suncor Energy, Inc.
400
8,928Talisman Energy, Inc.
400
4,235Teekay Tankers Ltd. "A"
10,300
97,953TonenGeneral Sekiyu KK
1,000
9,720Total SA
7,667
380,252Tullow Oil PLC
330
3,793W&T Offshore, Inc.
44,500
273,675Woodside Petroleum Ltd.
1,595
41,990World Fuel Services Corp.
7,100
224,57321,051,548Financials 6.3%Capital Markets 0.4%Bank of New York Mellon Corp.
17,500
494,375Credit Suisse Group AG (Registered)
11,783
357,390Daiwa Securities Group, Inc.
1,000
4,426IGM Financial, Inc.
200
4,824Julius Baer Holding AG (Registered)
167
4,097Knight Capital Group, Inc. "A"*
13,500
198,990LaBranche & Co., Inc.*
32,700
122,298Macquarie Group Ltd.
253
4,782Man Group PLC
587
1,843Mediobanca SpA
1,048
8,907Nomura Holdings, Inc.
1,300
6,547Northern Trust Corp.
4,500
269,190Prospect Capital Corp.
14,080
119,962Reinet Investments SCA*
303
2,801UBS AG (Registered)*
4,249
40,3651,640,797Commercial Banks 1.7%Allied Irish Banks PLC
5,838
4,614Anglo Irish Bank Corp. PLC
18,150
5,233Australia & New Zealand Banking Group Ltd.
1,305
14,338Banca Carige SpA
1,264
4,146Banca Monte dei Paschi di Siena SpA
5,930
8,220Banca Popolare di Milano Scarl
2,506
12,478Banco Bilbao Vizcaya Argentaria SA
3,763
30,583Banco Comercial Portugues SA (Registered)*
114,730
94,077Banco de Sabadell SA
831
4,169Banco Espirito Santo SA (Registered)
10,996
42,824Banco Latinoamericano de Exportaciones SA "E"
19,600
183,652Banco Popolare Societa Cooperativa
2,075
9,543Banco Popular Espanol SA
820
5,185Banco Santander SA
48,975
336,736Bank of East Asia Ltd.
2,640
5,105Bank of Montreal
400
10,466Bank of Nova Scotia
800
19,715Barclays PLC
4,991
10,647BNP Paribas
6,957
286,744BOC Hong Kong (Holdings) Ltd.
6,500
6,670Canadian Imperial Bank of Commerce
300
10,917Chuo Mitsui Trust Holdings, Inc.
2,000
6,225Commerzbank AG
2,327
12,469Commonwealth Bank of Australia
903
21,873Credit Agricole SA
1,279
14,076CVB Financial Corp.
28,900
191,607Danske Bank AS*
5,602
47,232DBS Group Holdings Ltd.
5,000
28,036Deutsche Postbank AG
401
6,383Dexia SA
4,326
14,965DnB NOR ASA
78,300
354,425Erste Group Bank AG
7,561
129,318Governor and Co. of the Bank of Ireland
12,500
8,552Hang Seng Bank Ltd.
1,900
19,377HSBC Holdings PLC
56,352
319,009Industrial & Commercial Bank of China Ltd. "H"
687,000
355,587Intesa Sanpaolo
14,436
39,700Intesa Sanpaolo (RSP)
4,104
7,747Jyske Bank AS (Registered)*
500
11,426KBC Groep NV
1,226
19,802Lloyds Banking Group PLC
4,617
4,733Marshall & Ilsley Corp.
247,900
1,395,677Mitsubishi UFJ Financial Group, Inc.
7,400
36,354Mizuho Financial Group, Inc.
7,992
15,558Mizuho Trust & Banking Co., Ltd.
6,000
5,609National Australia Bank Ltd.
1,170
16,402National Bank of Canada
200
6,386Natixis
5,482
9,330NBT Bancorp., Inc.
11,100
240,204Nordea Bank AB
6,810
34,004Oversea-Chinese Banking Corp., Ltd.
10,000
31,852Park National Corp.
4,000
223,000Prosperity Bancshares, Inc.
8,900
243,415Raiffeisen International Bank-Holding AG
2,184
61,650Resona Holdings, Inc.
400
5,374Royal Bank of Canada
1,000
29,172Royal Bank of Scotland Group PLC
12,082
4,298S&T Bancorp., Inc.
3,700
78,477Santander BanCorp.
15,400
121,352Shinsei Bank Ltd.*
2,000
2,045Signature Bank*
9,000
254,070Skandinaviska Enskilda Banken AB*
2,175
6,721Skandinaviska Enskilda Banken AB "A"
2,289
7,181Societe Generale
780
30,629Southside Bancshares, Inc.
5,100
96,390Standard Chartered PLC
289
3,585Suffolk Bancorp.
500
12,995Sumitomo Mitsui Financial Group, Inc.
600
21,165Sumitomo Trust & Banking Co., Ltd.
1,000
3,877SunTrust Banks, Inc.
51,100
599,914Svenska Handelsbanken AB "A"
1,300
18,381Swedbank AB "A"
2,281
7,602Sydbank AS*
550
7,022The Bank of Yokohama Ltd.
1,000
4,296The Shizuoka Bank Ltd.
1,000
9,082Tompkins Financial Corp.
1,600
68,800Toronto-Dominion Bank
500
17,235UMB Financial Corp.
700
29,743UniCredit SpA
32,048
53,065Unione di Banche Italiane ScpA
562
6,189United Overseas Bank Ltd.
4,000
25,588WesBanco, Inc.
3,200
73,056Westpac Banking Corp.
1,773
23,601Zions Bancorp.
30,200
296,8666,955,816Consumer Finance 0.2%AmeriCredit Corp.*
60,000
351,600EZCORP, Inc. "A"*
3,600
41,652Nelnet, Inc. "A"*
34,100
301,444ORIX Corp.
70
2,307697,003Diversified Financial Services 1.9%ASX Ltd.
175
3,579Bank of America Corp.
245,300
1,672,946Citigroup, Inc.
265,000
670,450CME Group, Inc.
5,800
1,429,062Compagnie Nationale a Portefeuille
455
21,130Criteria Caixacorp SA
1,188
3,837Deutsche Boerse AG
263
15,889Eurazeo
265
7,093Fortis
21,901
40,287Groupe Bruxelles Lambert SA
616
41,813Hong Kong Exchanges & Clearing Ltd.
1,400
13,201ING Groep NV (CVA)
9,917
55,391Investor AB "B"
1,942
24,585JPMorgan Chase & Co.
132,100
3,511,218Singapore Exchange Ltd.
3,000
10,0717,520,552Insurance 1.4%Aegon NV
7,064
27,788Alleanza Assicurazioni SpA
1,192
6,719Allianz SE (Registered)
4,260
358,876Allstate Corp.
35,800
685,570American Equity Investment Life Holding Co.
50,900
211,744American Physicians Capital, Inc.
4,000
163,680AMP Ltd.
1,450
4,752AmTrust Financial Services, Inc.
13,000
124,150Aon Corp.
6,000
244,920Arch Capital Group Ltd.*
4,800
258,528Argo Group International Holdings Ltd.*
800
24,104Assicurazioni Generali SpA
2,056
35,302Aviva PLC
909
2,810AXA SA
22,759
276,345Baloise Holding AG (Registered)
110
7,023China Life Insurance Co., Ltd. "H"
155,100
510,281CNA Financial Corp.
20,400
186,864CNA Surety Corp.*
1,900
35,036CNP Assurances
61
3,861First American Corp.
25,700
681,307Great-West Lifeco, Inc.
200
2,809Hannover Rueckversicherung AG (Registered)
106
3,381Hartford Financial Services Group, Inc.
23,900
187,615Infinity Property & Casualty Corp.
5,600
190,008Insurance Australia Group Ltd.
1,711
4,168Irish Life & Permanent PLC
2,340
3,438Legal & General Group PLC
3,476
2,162Maiden Holdings Ltd.
19,100
85,377Manulife Financial Corp.
1,200
13,515Mapfre SA
874
1,917Mitsui Sumitomo Insurance Group Holdings, Inc.
300
7,041Muenchener Rueckversicherungs-Gesellschaft AG (Registered)
3,292
402,093NIPPONKOA Insurance Co., Ltd.
1,000
5,766Old Mutual PLC
2,119
1,581Power Corp. of Canada
300
4,676Power Financial Corp.
200
3,265Prudential PLC
874
4,211QBE Insurance Group Ltd.
612
8,229Sampo Oyj "A"
7,195
106,414SCOR SE
312
6,427Sompo Japan Insurance, Inc.
1,000
5,236Sun Life Financial, Inc.
400
7,246Suncorp-Metway Ltd.
731
3,061Swiss Life Holding AG (Registered)*
29
2,015Swiss Re (Registered)
287
4,683T&D Holdings, Inc.
150
3,593Tokio Marine Holdings, Inc.
500
12,344Topdanmark AS*
150
14,812Tower Group, Inc.
1,500
36,945Trygvesta AS
356
18,070Validus Holdings Ltd.
2,700
63,936Vienna Insurance Group
1,473
42,365White Mountains Insurance Group Ltd.
1,900
326,629Zurich Financial Services AG (Registered)
147
23,1985,457,886Real Estate Investment Trusts 0.7%AMB Property Corp. (REIT)
3,100
44,640American Campus Communities, Inc. (REIT)
500
8,680AvalonBay Communities, Inc. (REIT)
2,461
115,815BioMed Realty Trust, Inc. (REIT)
6,400
43,328CapitaMall Trust (REIT)
4,000
3,478Colonial Properties Trust (REIT)
7,900
30,099Corio NV (REIT)
101
4,171Corporate Office Properties Trust (REIT)
3,700
91,871Cousins Properties, Inc. (REIT)
3,000
19,320EastGroup Properties, Inc. (REIT)
2,700
75,789Entertainment Properties Trust (REIT)
3,900
61,464Equity Lifestyle Properties, Inc. (REIT)
2,500
95,250Equity One, Inc. (REIT)
5,600
68,264Equity Residential (REIT)
11,800
216,530First Industrial Realty Trust, Inc. (REIT)
10,100
24,745Glimcher Realty Trust (REIT)
5,900
8,260HCP, Inc. (REIT)
8,500
151,725Healthcare Realty Trust, Inc. (REIT)
4,800
71,952Home Properties, Inc. (REIT)
2,800
85,820Host Hotels & Resorts, Inc. (REIT)
24,800
97,216Land Securities Group PLC (REIT)
252
1,578LaSalle Hotel Properties (REIT)
7,000
40,880Lexington Realty Trust (REIT)
5,900
14,042Link (REIT)
3,500
6,920Maguire Properties, Inc. (REIT)*
10,000
7,200National Retail Properties, Inc. (REIT)
6,300
99,792Pennsylvania Real Estate Investment Trust (REIT)
7,800
27,690Potlatch Corp. (REIT)
1,300
30,147ProLogis (REIT)
7,500
48,750Public Storage (REIT)
6,480
358,020Realty Income Corp. (REIT)
6,500
122,330Redwood Trust, Inc. (REIT)
5,800
89,030Simon Property Group, Inc. (REIT)
10,129
350,868Sovran Self Storage, Inc. (REIT)
2,400
48,192Stockland (REIT)
1,308
2,830Strategic Hotels & Resorts, Inc. (REIT)
4,500
3,105Sunstone Hotel Investors, Inc. (REIT)
6,109
16,067Tanger Factory Outlet Centers, Inc. (REIT)
1,700
52,462The Macerich Co. (REIT)
1,900
11,894Unibail-Rodamco (REIT)
85
12,094Vornado Realty Trust (REIT)
2,440
81,105Washington Real Estate Investment Trust (REIT)
3,600
62,280Wereldhave NV (REIT)
67
4,697Westfield Group (REIT)
1,301
9,0782,819,468Real Estate Management & Development 0.0%Atrium European Real Estate Ltd.*
2,411
7,311Brookfield Asset Management, Inc. "A"
400
5,574CapitaLand Ltd.
5,000
7,686Cheung Kong (Holdings) Ltd.
2,000
17,231City Developments Ltd.
1,000
3,357Daiwa House Industry Co., Ltd.
1,000
8,146Hang Lung Properties Ltd.
3,000
7,086Henderson Land Development Co., Ltd.
2,000
7,641Hopewell Holdings Ltd.
2,000
5,214Immoeast AG*
3,604
5,106Kerry Properties Ltd.
1,000
2,414Lend Lease Corp., Ltd.
408
1,855Mitsubishi Estate Co., Ltd.
1,000
11,415New World Development Co., Ltd.
3,000
2,993Sino Land Co., Ltd.
2,000
2,003Sun Hung Kai Properties Ltd.
3,000
26,931Swire Pacific Ltd. "A"
1,000
6,679Wharf Holdings Ltd.
2,000
5,080133,722Thrifts & Mortgage Finance 0.0%Doral Financial Corp.*
27,400
49,320OceanFirst Financial Corp.
1,600
16,352Ocwen Financial Corp.*
10,600
121,158186,830Health Care 8.6%Biotechnology 1.5%Actelion Ltd. (Registered)*
117
5,342Alexion Pharmaceuticals, Inc.*
8,200
308,812Alnylam Pharmaceuticals, Inc.*
2,600
49,504Amgen, Inc.*
31,000
1,535,120CSL Ltd.
3,695
83,606Cubist Pharmaceuticals, Inc.*
13,200
215,952CV Therapeutics, Inc.*
12,600
250,488Enzon Pharmaceuticals, Inc.*
28,500
172,995Gilead Sciences, Inc.*
42,700
1,977,864Grifols SA
482
6,953Intercell AG*
14,879
460,053Isis Pharmaceuticals, Inc.*
17,600
264,176Myriad Genetics, Inc.*
7,800
354,666PDL BioPharma, Inc.
30,700
217,3565,902,887Health Care Equipment & Supplies 0.5%Baxter International, Inc.
4,972
254,666Becton, Dickinson & Co.
15,200
1,022,048C.R. Bard, Inc.
6,000
478,320Cochlear Ltd.
455
15,880Essilor International SA
752
29,078Getinge AB "B"
400
3,874Olympus Corp.
1,000
16,354Smith & Nephew PLC
1,160
7,171Sonova Holding AG (Registered)
88
5,322STERIS Corp.
10,200
237,456Synthes, Inc.
57
6,342Terumo Corp.
600
22,2982,098,809Health Care Providers & Services 2.0%Aetna, Inc.
56,827
1,382,601Alliance Imaging, Inc.*
4,700
31,960Celesio AG
378
6,967Centene Corp.*
12,600
227,052CorVel Corp.*
4,200
84,924Coventry Health Care, Inc.*
24,000
310,560Emergency Medical Services Corp. "A"*
6,100
191,479Express Scripts, Inc.*
34,455
1,590,787Fresenius Medical Care AG & Co. KGaA
11,205
435,685Genoptix, Inc.*
4,700
128,216Gentiva Health Services, Inc.*
12,000
182,400Healthspring, Inc.*
30,100
251,937LHC Group, Inc.*
7,900
176,012Magellan Health Services, Inc.*
6,600
240,504McKesson Corp.
54,600
1,913,184Mediceo Paltac Holdings Co., Ltd.
600
6,403RehabCare Group, Inc.*
6,900
120,336Sonic Healthcare Ltd.
2,742
21,173Suzuken Co., Ltd.
300
7,826Universal Health Services, Inc. "B"
18,600
713,1248,023,130Health Care Technology 0.0%Computer Programs & Systems, Inc.
5,100
169,677Life Sciences Tools & Services 0.3%Lonza Group AG (Registered)
2,170
214,532Pharmaceutical Product Development, Inc.
38,300
908,476QIAGEN NV*
129
2,067Waters Corp.*
5,000
184,7501,309,825Pharmaceuticals 4.3%Abbott Laboratories
74,800
3,567,960Astellas Pharma, Inc.
7,900
243,308AstraZeneca PLC
2,194
77,823Auxilium Pharmaceuticals, Inc.*
3,700
102,564Bayer AG
9,344
447,637Caraco Pharmaceutical Laboratories Ltd.*
8,100
28,512Chugai Pharmaceutical Co., Ltd.
900
15,293Daiichi Sankyo Co., Ltd.
2,200
37,182Eisai Co., Ltd.
900
26,524Elan Corp. PLC*
33,424
230,457Eli Lilly & Co.
98,701
3,297,600GlaxoSmithKline PLC
7,668
119,395Hisamitsu Pharmaceutical Co., Inc.
200
6,177Johnson & Johnson
49,034
2,579,188Merck & Co., Inc.
52,746
1,410,956Merck KGaA*
303
26,743Mitsubishi Tanabe Pharma Corp.
1,000
9,855Novartis AG (Registered)
9,135
344,790Novo Nordisk AS "B"
7,374
353,691Ono Pharmaceutical Co., Ltd.
400
17,527Pfizer, Inc.
218,144
2,971,121Roche Holding AG (Genusschein)
2,245
308,226Sanofi-Aventis
3,218
180,587Shionogi & Co., Ltd.
1,000
17,193Shire PLC
873
10,649Takeda Pharmaceutical Co., Ltd.
2,500
86,697UCB SA
4,573
134,883Watson Pharmaceuticals, Inc.*
17,400
541,31417,193,852Industrials 7.1%Aerospace & Defense 2.7%Axsys Technologies, Inc.*
1,000
42,040BAE Systems PLC
39,347
188,793Bombardier, Inc. "B"
4,900
11,426CAE, Inc.
1,000
6,052Cobham PLC
1,695
4,177Cubic Corp.
7,700
195,041DynCorp International, Inc. "A"*
14,000
186,620European Aeronautic Defence & Space Co.
334
3,886Finmeccanica SpA
314
3,907General Dynamics Corp.
49,400
2,054,546Goodrich Corp.
21,000
795,690Honeywell International, Inc.
26,000
724,360L-3 Communications Holdings, Inc.
8,100
549,180Lockheed Martin Corp.
34,700
2,395,341Meggitt PLC
1,213
2,232Northrop Grumman Corp.
61,200
2,670,768Rolls-Royce Group PLC*
2,741
11,558Singapore Technologies Engineering Ltd.
13,000
21,043TransDigm Group, Inc.*
5,500
180,620Triumph Group, Inc.
5,400
206,280United Technologies Corp.
21,100
906,878Zodiac SA
128
3,24511,163,683Air Freight & Logistics 0.4%Deutsche Post AG (Registered)
1,201
12,931FedEx Corp.
5,700
253,593TNT NV
1,385
23,693Toll Holdings Ltd.
4,018
17,460United Parcel Service, Inc. "B"
26,700
1,314,1741,621,851Airlines 0.1%Air France-KLM
155
1,381Alaska Air Group, Inc.*
12,100
212,597Allegiant Travel Co.*
1,900
86,374Deutsche Lufthansa AG (Registered)
303
3,295Iberia Lineas Aereas de Espana SA
1,322
2,766Qantas Airways Ltd.
4,271
5,196Singapore Airlines Ltd.
4,000
26,320337,929Building Products 0.2%AAON, Inc.
11,200
202,944Apogee Enterprises, Inc.
19,600
215,208Armstrong World Industries, Inc.*
20,600
226,806Asahi Glass Co., Ltd.
1,000
5,348Assa Abloy AB "B"
600
5,614Compagnie de Saint-Gobain
9,297
260,179Daikin Industries Ltd.
200
5,544Geberit AG (Registered)
86
7,717Wienerberger AG
121
955930,315Commercial Services & Supplies 0.7%Babcock International Group PLC
15,029
92,599Brambles Ltd.
7,607
25,461Comfort Systems USA, Inc.
19,200
199,104Courier Corp.
2,100
31,857G4S PLC
3,999
11,068Knoll, Inc.
5,400
33,102Loomis AB "B"*
120
925PRG-Schultz International, Inc.*
13,600
38,624R.R. Donnelley & Sons Co.
57,600
422,208Rentokil Initial PLC
3,402
2,171Ritchie Bros. Auctioneers, Inc.
400
7,541Secom Co., Ltd.
100
3,702Securitas AB "B"
1,265
9,220Serco Group PLC
749
3,930Standard Register Co.
7,700
35,266Tetra Tech, Inc.*
4,000
81,520The Brink's Co.
74,347
1,967,222Toppan Printing Co., Ltd.
1,000
6,8632,972,383Construction & Engineering 0.5%ACS, Actividades de Construccion y Servicios SA
1,606
66,542Balfour Beatty PLC
659
3,096Bouygues SA
261
9,312FLSmidth & Co. AS
440
11,243Fluor Corp.
21,100
729,005Fomento de Construcciones y Contratas SA
299
9,141Granite Construction, Inc.
5,900
221,132Grupo Ferrovial SA
444
9,483Hochtief AG
49
1,860Jacobs Engineering Group, Inc.*
4,900
189,434Koninklijke Boskalis Westminster NV
256
5,137Leighton Holdings Ltd.
851
11,456MasTec, Inc.*
12,500
151,125Michael Baker Corp.*
5,400
140,400Perini Corp.*
16,000
196,800Shaw Group, Inc.*
6,100
167,201Skanska AB "B"
1,404
12,101SNC-Lavalin Group, Inc.
500
12,710Vinci SA
385
14,260YIT Oyj
1,109
7,4261,968,864Electrical Equipment 0.3%ABB Ltd. (Registered)*
30,333
423,220Alstom SA
4,046
209,468Energy Conversion Devices, Inc.*
2,500
33,175Gamesa Corp. Tecnologica SA
1,774
22,759GrafTech International Ltd.*
33,900
208,824GT Solar International, Inc.*
41,800
277,552Q-Cells SE*
292
5,717Schneider Electric SA
127
8,432Solarworld AG
89
1,827Sumitomo Electric Industries Ltd.
600
5,081Vestas Wind Systems AS*
1,142
50,4331,246,488Industrial Conglomerates 0.2%CSR Ltd.
13,539
11,338Fraser & Neave Ltd.
7,000
11,656Hutchison Whampoa Ltd.
16,000
78,782Keppel Corp., Ltd.
11,000
36,641Koninklijke (Royal) Philips Electronics NV
24,782
365,791Orkla ASA
900
6,223SembCorp Industries Ltd.
10,000
15,631Siemens AG (Registered)
1,179
67,518Smiths Group PLC
609
5,833Tredegar Corp.
4,500
73,485Wendel
136
3,586676,484Machinery 1.0%AGCO Corp.*
33,400
654,640Alfa Laval AB
700
5,307Atlas Copco AB "A"
1,336
10,033Atlas Copco AB "B"
800
5,434Blount International, Inc.*
32,900
151,998Chart Industries, Inc.*
18,200
143,416CIRCOR International, Inc.
3,600
81,072Columbus McKinnon Corp.*
6,100
53,192FANUC Ltd.
100
6,854Flowserve Corp.
13,000
729,560Force Protection, Inc.*
36,300
174,240GEA Group AG
327
3,486Hitachi Construction Machinery Co., Ltd.
400
5,274Invensys PLC*
1,137
2,716Joy Global, Inc.
44,100
939,330KCI Konecranes Oyj
115
1,920Komatsu Ltd.
600
6,655Kone Oyj "B"
2,173
45,025Kubota Corp.
1,000
5,494MAN AG
200
8,725Metso Oyj
1,962
23,145Mitsubishi Heavy Industries Ltd.
2,000
6,054Sandvik AB
1,600
9,165Scania AB "B"
1,072
8,746Schindler Holding AG
121
5,712SembCorp Marine Ltd.
10,000
11,916SKF AB "B"
800
6,920SMC Corp.
100
9,595Sulzer AG (Registered)
60
3,088Timken Co.
54,300
758,028Vallourec SA
49
4,543Volvo AB "A"
300
1,594Volvo AB "B"
2,999
15,896Wartsila Corp.
1,349
28,469Zardoya Otis SA
769
14,0753,941,317Marine 0.0%A P Moller-Maersk AS "A"
3
13,018A P Moller-Maersk AS "B"
7
30,748American Commercial Lines, Inc.*
13,300
42,161Kuehne & Nagel International AG (Registered)
117
6,835Mitsui OSK Lines Ltd.
1,000
4,962Nippon Yusen Kabushiki Kaisha
1,000
3,887Pacific Basin Shipping Ltd.
9,000
4,143105,754Professional Services 0.4%Adecco SA (Registered)
270
8,447Capita Group PLC
504
4,899COMSYS IT Partners, Inc.*
7,600
16,796Experian PLC
1,147
7,185Manpower, Inc.
46,300
1,459,839Randstad Holding NV
471
7,995SGS SA (Registered)
10
10,4961,515,657Road & Rail 0.4%Canadian National Railway Co.
1,800
64,531Canadian Pacific Railway Ltd.
500
14,879Central Japan Railway Co.
1
5,623ComfortDelGro Corp., Ltd.
11,000
9,843DSV AS
1,584
11,668East Japan Railway Co.
4,019
209,101FirstGroup PLC
629
2,410Kintetsu Corp.
1,000
4,154Marten Transport Ltd.*
10,800
201,744MTR Corp., Ltd.
12,000
28,958Ryder System, Inc.
33,761
955,774Tokyu Corp.
1,000
4,193West Japan Railway Co.
2
6,3191,519,197Trading Companies & Distributors 0.1%Bunzl PLC
1,151
9,023Finning International, Inc.
200
1,999Itochu Corp.
1,000
4,932Marubeni Corp.
1,000
3,104Mitsubishi Corp.
21,400
284,735Mitsui & Co., Ltd.
28,000
285,056Noble Group Ltd.
12,000
9,402Sumitomo Corp.
800
6,955Wolseley PLC*
828
2,740607,946Transportation Infrastructure 0.1%Abertis Infraestructuras SA
2,270
35,488Atlantia SpA
277
4,189Brisa
18,756
129,339Cintra Concesiones de Infraestructuras de Transporte SA
2,241
10,031Hopewell Highway Infrastructure Ltd.
200
112Macquarie Infrastructure Group (Units)
17,000
17,435Transurban Group (Units)
6,506
21,185217,779Information Technology 9.0%Communications Equipment 1.8%ADC Telecommunications, Inc.*
187,900
824,881Alcatel-Lucent*
11,644
21,893BigBand Networks, Inc.*
18,100
118,555Black Box Corp.
2,400
56,664Cisco Systems, Inc.*
127,100
2,131,467DG Fastchannel, Inc.*
500
9,385Nokia Oyj
41,984
491,516QUALCOMM, Inc.
81,000
3,151,710Research In Motion Ltd.*
2,100
90,759Riverbed Technology, Inc.*
2,500
32,700Starent Networks Corp.*
10,600
167,586Symmetricom, Inc.*
13,700
47,950Tekelec*
16,100
213,003Telefonaktiebolaget LM Ericsson "B"
12,445
101,1317,459,200Computers & Peripherals 2.6%Apple, Inc.*
32,652
3,432,378Data Domain, Inc.*
5,500
69,135Dell, Inc.*
48,700
461,676EMC Corp.*
48,900
557,460Fujitsu Ltd.
2,000
7,524International Business Machines Corp.
46,727
4,527,379Logitech International SA (Registered)*
22,883
236,504NCR Corp.*
58,300
463,485Synaptics, Inc.*
8,550
228,798Toshiba Corp.
3,000
7,834Western Digital Corp.*
27,528
532,391Wincor Nixdorf AG
127
5,76410,530,328Electronic Equipment, Instruments & Components 0.6%Arrow Electronics, Inc.*
36,300
691,878Avnet, Inc.*
29,300
513,043Benchmark Electronics, Inc.*
2,900
32,480Cogent, Inc.*
4,500
53,550Daktronics, Inc.
3,900
25,545Electrocomponents PLC
2,551
4,577Fujifilm Holdings Corp.
300
6,566Hitachi Ltd.
3,000
8,239Hoya Corp.
300
5,938IBIDEN Co., Ltd.
100
2,448Jabil Circuit, Inc.
122,038
678,531Kyocera Corp.
100
6,689Multi-Fineline Electronix, Inc.*
10,900
183,556Murata Manufacturing Co., Ltd.
200
7,732Nidec Corp.
100
4,536Omron Corp.
200
2,374RadiSys Corp.*
13,100
79,386TDK Corp.
100
3,7762,310,844Internet Software & Services 0.8%Earthlink, Inc.*
2,100
13,797Google, Inc. "A"*
4,365
1,519,282S1 Corp.*
32,100
165,315SAVVIS, Inc.*
21,300
131,847Sohu.com, Inc.*
11,400
470,934United Internet AG (Registered)
308
2,572VeriSign, Inc.*
42,200
796,314Yahoo! Japan Corp.
13
3,4363,103,497IT Services 0.9%Accenture Ltd. "A"
15,000
412,350Acxiom Corp.
24,700
182,780Atos Origin SA
266
6,820Automatic Data Processing, Inc.
25,300
889,548Broadridge Financial Solutions, Inc.
29,000
539,690Cap Gemini SA
744
23,966CGI Group, Inc. "A"*
900
7,267CIBER, Inc.*
48,600
132,678Computershare Ltd.
1,487
9,091CSG Systems International, Inc.*
13,300
189,924iGATE Corp.
24,800
80,352Indra Sistemas SA
11,041
212,848Logica PLC
34,093
31,156ManTech International Corp. "A"*
4,500
188,550NTT Data Corp.
1
2,742SAIC, Inc.*
30,400
567,568Syntel, Inc.
3,600
74,088TNS, Inc.*
16,700
136,6063,688,024Office Electronics 0.1%Canon, Inc.
12,100
352,953Konica Minolta Holdings, Inc.
500
4,336Neopost SA
135
10,461Ricoh Co., Ltd.
1,000
12,035379,785Semiconductors & Semiconductor Equipment 0.3%ARM Holdings PLC
2,245
3,298ASML Holding NV
6,327
111,997IXYS Corp.
3,200
25,792ROHM Co., Ltd.
100
5,010Semtech Corp.*
11,000
146,850Skyworks Solutions, Inc.*
29,500
237,770STMicroelectronics NV
3,784
19,002Texas Instruments, Inc.
18,400
303,784Tokyo Electron Ltd.
200
7,534Ultratech, Inc.*
16,800
209,832Volterra Semiconductor Corp.*
20,900
176,3961,247,265Software 1.9%ACI Worldwide, Inc.*
7,100
133,125Advent Software, Inc.*
3,700
123,247Commvault Systems, Inc.*
2,800
30,716Dassault Systemes SA
407
15,826i2 Technologies, Inc.*
4,600
36,340Microsoft Corp.
318,640
5,853,417Misys PLC
1,521
2,751Nintendo Co., Ltd.
700
205,334Renaissance Learning, Inc.
2,600
23,322SAP AG
2,926
103,910Symantec Corp.*
24,260
362,444The Sage Group PLC
29,867
72,377Tyler Technologies, Inc.*
13,900
203,357VMware, Inc. "A"*
16,100
380,282Wind River Systems, Inc.*
8,900
56,9607,603,408Materials 2.9%Chemicals 1.5%Agrium, Inc.
100
3,624Air Liquide SA
373
30,303Akzo Nobel NV
1,717
65,061Asahi Kasei Corp.
2,000
7,225Ashland, Inc.
94,200
973,086BASF SE
9,416
285,838Calgon Carbon Corp.*
2,400
34,008CF Industries Holdings, Inc.
10,400
739,752Cytec Industries, Inc.
20,400
306,408Dow Chemical Co.
82,900
698,847Givaudan SA (Registered)
20
10,360Incitec Pivot Ltd.
740
1,095Innophos Holdings, Inc.
20,600
232,368JSR Corp.
300
3,537K+S AG
195
9,068Koninklijke DSM NV
1,135
29,827Kuraray Co., Ltd.
500
4,295Linde AG
3,624
246,257Mitsubishi Chemical Holdings Corp.
1,500
5,170Mitsubishi Gas Chemical Co., Inc.
1,000
4,318Mitsui Chemicals, Inc.
1,000
2,455Nitto Denko Corp.
200
4,107Novozymes AS "B"
1,832
132,437Orica Ltd.
303
3,122Potash Corp. of Saskatchewan, Inc.
2,501
202,255Shin-Etsu Chemical Co., Ltd.
700
34,357Showa Denko KK
2,000
2,492Solvay SA
1,735
121,475Sumitomo Chemical Co., Ltd.
2,000
6,871Syngenta AG (Registered)
264
53,074Teijin Ltd.
2,000
4,362Terra Industries, Inc.
37,351
1,049,190The Mosaic Co.
17,800
747,244Toray Industries, Inc.
2,000
8,107Ube Industries Ltd.
2,000
3,624Umicore
4,208
77,564Yara International ASA
6,460
142,2786,285,461Construction Materials 0.2%CRH PLC
27,831
598,616Fletcher Building Ltd.
2,851
9,783Holcim Ltd. (Registered)
596
21,192Imerys SA
70
2,558Lafarge SA
186
8,350640,499Containers & Packaging 0.1%Bway Holding Co.*
4,700
37,083Rock-Tenn Co. "A"
8,100
219,105Silgan Holdings, Inc.
4,300
225,922Toyo Seikan Kaisha Ltd.
500
7,382489,492Metals & Mining 0.7%Acerinox SA
7,867
91,289Agnico-Eagle Mines Ltd.
100
5,748Allegheny Technologies, Inc.
21,300
467,109Anglo American PLC
1,291
21,888ArcelorMittal
16,821
340,445Barrick Gold Corp.
700
22,658BHP Billiton Ltd.
24,324
542,153BHP Billiton PLC
2,435
48,211BlueScope Steel Ltd.
707
1,268Cliffs Natural Resources, Inc.
31,700
575,672Eramet
7
1,535First Quantum Minerals Ltd.
100
2,816Fortescue Metals Group Ltd.*
1,040
1,855Goldcorp, Inc.
500
16,831JFE Holdings, Inc.
800
17,677Kinross Gold Corp.
500
9,085Kobe Steel Ltd.
4,000
5,181Lonmin PLC
148
3,014Mitsubishi Materials Corp.
2,000
5,393Newcrest Mining Ltd.
392
8,890Nippon Steel Corp.
7,000
18,939Nisshin Steel Co., Ltd.
2,000
3,397Norsk Hydro ASA
23,900
90,902Outokumpu Oyj
2,744
29,678OZ Minerals Ltd.
1,529
590Rautaruukki Oyj
1,998
31,937Rio Tinto Ltd.
278
10,908Rio Tinto PLC
1,068
35,761Salzgitter AG
47
2,635Sherritt International Corp.
2,600
6,119SSAB Svenskt Stal AB "A"*
2,890
24,542Sumitomo Metal Industries Ltd.
8,000
16,265Sumitomo Metal Mining Co., Ltd.
1,000
9,680Teck Cominco Ltd. "B"
324
1,812ThyssenKrupp AG
563
9,862Vedanta Resources PLC
306
2,958voestalpine AG
162
2,123Xstrata PLC
31,718
211,627Yamana Gold, Inc.
400
3,7342,702,187Paper & Forest Products 0.4%Clearwater Paper Corp.*
771
6,191International Paper Co.
197,900
1,393,216Oji Paper Co., Ltd.
2,000
8,169Stora Enso Oyj "R"*
12,918
45,739Svenska Cellulosa AB "B"
10,245
77,779UPM-Kymmene Oyj
11,597
66,8961,597,990Telecommunication Services 3.0%Diversified Telecommunication Services 2.4%AT&T, Inc.
91,941
2,316,913Atlantic Tele-Network, Inc.
5,900
113,162BCE, Inc.
2,200
43,833Belgacom SA
732
22,927BT Group PLC
13,010
14,557Cable & Wireless PLC
4,236
8,466Deutsche Telekom AG (Registered)
42,147
524,323Elisa Oyj
666
9,695France Telecom SA
7,056
160,460Koninklijke (Royal) KPN NV
9,557
127,809Nippon Telegraph & Telephone Corp.
6,919
262,793NTELOS Holdings Corp.
1,900
34,466Portugal Telecom SGPS SA (Registered)
16,163
125,270Singapore Telecommunications Ltd.
145,000
241,365Swisscom AG (Registered)
412
115,593Tele2 AB "B"
2,100
17,721Telecom Corp. of New Zealand Ltd.
208,369
271,680Telecom Italia SpA
60,758
77,988Telecom Italia SpA (RSP)
37,874
38,619Telefonica SA
32,240
643,898Telekom Austria AG
8,824
133,349Telenor ASA
37,900
217,370TeliaSonera AB
16,839
81,171Telstra Corp., Ltd.
47,039
105,019Telus Corp.
300
8,252Telus Corp. (Non-Voting Shares)
600
15,709Verizon Communications, Inc.
139,366
4,208,8539,941,261Wireless Telecommunication Services 0.6%China Mobile Ltd.
48,000
418,783iPCS, Inc.*
3,700
35,927KDDI Corp.
13
61,344Millicom International Cellular SA (SDR)
550
20,641Mobistar SA
78
4,931NTT DoCoMo, Inc.
69
94,144Rogers Communications, Inc. "B"
1,900
43,778Softbank Corp.
3,300
42,147United States Cellular Corp.*
28,100
936,854USA Mobility, Inc.
16,900
155,649Vodafone Group PLC
315,532
551,2352,365,433Utilities 2.6%Electric Utilities 1.4%Acciona SA
140
14,377American Electric Power Co., Inc.
26,600
671,916Cheung Kong Infrastructure Holdings Ltd.
2,000
7,988Chubu Electric Power Co., Inc.
1,800
39,605Chugoku Electric Power Co., Inc.
1,000
21,708Cleco Corp.
10,300
223,407CLP Holdings Ltd.
16,000
108,287Duke Energy Corp.
64,900
929,368E.ON AG
14,282
397,544Edison International
55,564
1,600,799EDP  Energias de Portugal SA
34,129
118,548Electricite de France
563
22,110Empire District Electric Co.
14,300
206,492Enel SpA
26,639
127,768FirstEnergy Corp.
4,300
165,980Fortis, Inc.
2,400
42,145Fortum Oyj
20,708
394,170Hokkaido Electric Power Co., Inc.
900
18,062Hokuriku Electric Power Co.
700
16,809HongKong Electric Holdings Ltd.
11,000
65,715Iberdrola SA
11,710
82,227Kansai Electric Power Co., Inc.
2,100
45,637Kyushu Electric Power Co., Inc.
1,100
24,623Oesterreichische Elektrizitaetswirtschafts AG (Verbund) "A"
104
3,953Red Electrica Corporacion SA
340
13,272Scottish & Southern Energy PLC
2,778
44,120Shikoku Electric Power Co., Inc.
700
18,699Terna  Rete Elettrica Nationale SpA
9,810
30,560Tohoku Electric Power Co., Inc.
1,400
30,749Tokyo Electric Power Co., Inc.
3,300
82,377Union Fenosa SA
872
20,8555,589,870Gas Utilities 0.2%Chesapeake Utilities Corp.
1,800
54,864Enagas
468
6,638Gas Natural SDG SA
529
7,234Hong Kong & China Gas Co., Ltd.
31,900
50,468Osaka Gas Co., Ltd.
7,000
21,835Snam Rete Gas SpA
5,100
27,376South Jersey Industries, Inc.
2,000
70,000Tokyo Gas Co., Ltd.
7,000
24,447UGI Corp.
25,200
594,972WGL Holdings, Inc.
6,000
196,8001,054,634Independent Power Producers & Energy Traders 0.2%AES Corp.*
32,000
185,920Electric Power Development Co., Ltd.
500
14,852Iberdrola Renovables*
2,330
9,666International Power PLC
5,837
17,494Mirant Corp.*
53,900
614,460TransAlta Corp.
3,100
45,364887,756Multi-Utilities 0.7%A2A SpA
6,205
9,417AGL Energy Ltd.
28,611
298,128Avista Corp.
6,500
89,570Canadian Utilities Ltd. "A"
700
20,404Centrica PLC
13,500
44,145Consolidated Edison, Inc.
21,500
851,615Dominion Resources, Inc.
12,700
393,573DTE Energy Co.
10,100
279,770GDF Suez
3,080
105,897National Grid PLC
7,320
56,278PG&E Corp.
4,200
160,524RWE AG
903
63,486Sempra Energy
6,800
314,432Suez Environnement SA*
371
5,458United Utilities Group PLC
1,989
13,780Veolia Environnement
1,072
22,3392,728,816Water Utilities 0.1%American Water Works Co., Inc.
8,100
155,844California Water Service Group
3,300
138,138Severn Trent PLC
708
10,040304,022Total Common Stocks (Cost $274,392,686)
228,946,163Preferred Stocks 0.0%Consumer Discretionary 0.0%Porsche Automobil Holding SE
80
3,767Volkswagen AG
92
5,3059,072Consumer Staples 0.0%Henkel AG & Co. KGaA
1,331
36,185Health Care 0.0%Fresenius SE
309
14,200Total Preferred Stocks (Cost $131,259)
59,457Rights 0.0%Consumer Discretionary 0.0%Seat Pagine Gialle SpA, Expiration Date 4/17/2009*
137
855Financials 0.0%Banco Espirito Santo SA, Expiration Date 4/7/2009*
10,996
17,531Fortis, Expiration Date 7/4/2014*
9,978
0HSBC Holdings PLC, Expiration Date 4/3/2009*
23,479
47,501Royal Bank of Scotland Group PLC, Expiration Date 4/6/2009*
5,178
065,032Materials 0.0%CRH PLC, Expiration Date 4/6/2009*
3,657
79,683Total Rights (Cost $196,726)
145,570Exchange Traded Funds 3.6%iShares MSCI Japan Index Fund
87,131
689,206Vanguard Emerging Markets ETF
583,048
13,759,933Total Exchange Traded Funds (Cost $12,830,228)
14,449,139 Principal
Amount ($)(a)
Value ($)Corporate Bonds 9.4%Consumer Discretionary 1.7%AMC Entertainment, Inc., 8.0%, 3/1/2014
70,000
57,400American Achievement Corp., 144A, 8.25%, 4/1/2012
20,000
14,500American Achievement Group Holding Corp.,
16.75%, 10/1/2012 (PIK)
30,425
4,564Asbury Automotive Group, Inc.:7.625%, 3/15/2017
45,000
21,1508.0%, 3/15/2014
20,000
9,700Ashtead Holdings PLC, 144A, 8.625%, 8/1/2015
135,000
76,950CanWest MediaWorks LP, 144A, 9.25%, 8/1/2015**
35,000
2,450Carrols Corp., 9.0%, 1/15/2013
25,000
21,500Comcast Cable Communications Holdings, Inc.,
9.455%, 11/15/2022
95,000
104,359Cox Communications, Inc., 144A, 8.375%, 3/1/2039
560,000
525,420CSC Holdings, Inc.:6.75%, 4/15/2012
30,000
28,875Series B, 7.625%, 4/1/2011
40,000
39,700DIRECTV Holdings LLC, 7.625%, 5/15/2016
100,000
98,000DISH DBS Corp.:6.375%, 10/1/2011
70,000
67,5506.625%, 10/1/2014
65,000
58,1757.125%, 2/1/2016
50,000
44,750Fontainebleau Las Vegas Holdings LLC, 144A,
11.0%, 6/15/2015
40,000
1,200Great Canadian Gaming Corp., 144A, 7.25%, 2/15/2015
40,000
28,800Group 1 Automotive, Inc., 8.25%, 8/15/2013
20,000
15,400Hertz Corp., 8.875%, 1/1/2014
80,000
48,500Idearc, Inc., 8.0%, 11/15/2016**
85,000
2,231Indianapolis Downs LLC, 144A, 11.0%, 11/1/2012
25,000
13,375Isle of Capri Casinos, Inc., 7.0%, 3/1/2014
25,000
14,750Kabel Deutschland GmbH, 10.625%, 7/1/2014
75,000
75,750Lamar Media Corp., Series C, 6.625%, 8/15/2015
25,000
18,000MTR Gaming Group, Inc., Series B, 9.75%, 4/1/2010
60,000
45,000News America, Inc., 144A, 7.85%, 3/1/2039
615,000
526,845Norcraft Holdings LP, 9.75%, 9/1/2012
125,000
98,750Penske Automotive Group, Inc., 7.75%, 12/15/2016
75,000
37,500Pinnacle Entertainment, Inc., 8.75%, 10/1/2013
25,000
22,000Quebecor Media, Inc., 7.75%, 3/15/2016
25,000
19,000Reader's Digest Association, Inc., 9.0%, 2/15/2017
25,000
1,438Sabre Holdings Corp., 8.35%, 3/15/2016
40,000
15,200Seminole Hard Rock Entertainment, Inc., 144A,
3.82%***, 3/15/2014
50,000
26,000Shingle Springs Tribal Gaming Authority, 144A,
9.375%, 6/15/2015
35,000
14,525Simmons Co., Step-up Coupon, 0% to 12/15/2009,
10.0% to 12/15/2014
125,000
1,250Sonic Automotive, Inc., Series B, 8.625%, 8/15/2013
45,000
13,275TCI Communications, Inc., 8.75%, 8/1/2015
1,085,000
1,170,560Time Warner Cable, Inc.:5.4%, 7/2/2012
631,000
609,5126.75%, 7/1/2018 (b)
490,000
459,965Time Warner, Inc.:5.5%, 11/15/2011
425,000
419,3097.7%, 5/1/2032
235,000
211,3209.125%, 1/15/2013
535,000
562,034Travelport LLC, 5.886%***, 9/1/2014
35,000
11,200Trump Entertainment Resorts, Inc., 8.5%, 6/1/2015**
10,000
800United Components, Inc., 9.375%, 6/15/2013
5,000
1,950Unity Media GmbH, 144A, 8.75%, 2/15/2015      EUR
110,000
128,609UPC Holding BV:144A, 7.75%, 1/15/2014        EUR
50,000
55,469144A, 8.0%, 11/1/2016 EUR
50,000
50,819Viacom, Inc.:5.75%, 4/30/2011
678,000
660,4806.75%, 10/5/2037
360,000
254,771Videotron Ltd., 144A, 9.125%, 4/15/2018
15,000
15,2446,825,874Consumer Staples 0.5%Alliance One International, Inc., 8.5%, 5/15/2012
20,000
17,000Altria Group, Inc.:8.5%, 11/10/2013
30,000
32,5379.7%, 11/10/2018
15,000
16,328CVS Caremark Corp., 6.302%, 6/1/2037
1,336,000
801,600Delhaize America, Inc., 9.0%, 4/15/2031
85,000
90,342Miller Brewing Co., 144A, 5.5%, 8/15/2013
835,000
804,234PepsiAmericas, Inc., 4.375%, 2/15/2014
350,000
349,9612,112,002Energy 1.5%Atlas Energy Resources LLC, 144A, 10.75%, 2/1/2018
80,000
58,400Belden & Blake Corp., 8.75%, 7/15/2012
205,000
142,475Bristow Group, Inc., 7.5%, 9/15/2017
35,000
26,250Chaparral Energy, Inc., 8.5%, 12/1/2015
45,000
15,525Chesapeake Energy Corp.:6.25%, 1/15/2018
50,000
39,0006.875%, 1/15/2016
145,000
121,8007.25%, 12/15/2018
70,000
57,4877.5%, 6/15/2014
15,000
13,538Colorado Interstate Gas Co., 6.8%, 11/15/2015
20,000
18,748Delta Petroleum Corp., 7.0%, 4/1/2015
65,000
20,800Devon Energy Corp., 6.3%, 1/15/2019
15,000
14,635Dynegy Holdings, Inc., 6.875%, 4/1/2011
15,000
13,350El Paso Corp.:7.25%, 6/1/2018
90,000
76,5007.75%, 6/15/2010
15,000
14,7789.625%, 5/15/2012
34,000
32,634EXCO Resources, Inc., 7.25%, 1/15/2011
60,000
46,500Forest Oil Corp., 144A, 7.25%, 6/15/2019
20,000
15,800Frontier Oil Corp.:6.625%, 10/1/2011
25,000
24,3758.5%, 9/15/2016
50,000
49,250KCS Energy, Inc., 7.125%, 4/1/2012
155,000
140,275Marathon Oil Corp., 7.5%, 2/15/2019
470,000
473,520Mariner Energy, Inc.:7.5%, 4/15/2013
35,000
25,9008.0%, 5/15/2017
25,000
16,500Newfield Exploration Co., 7.125%, 5/15/2018
60,000
53,100OPTI Canada, Inc.:7.875%, 12/15/2014
60,000
26,2508.25%, 12/15/2014
110,000
49,225Petrohawk Energy Corp.:144A, 7.875%, 6/1/2015
20,000
17,6009.125%, 7/15/2013
20,000
19,200Plains Exploration & Production Co.:7.0%, 3/15/2017
40,000
31,8007.625%, 6/1/2018
70,000
56,700Quicksilver Resources, Inc., 7.125%, 4/1/2016
110,000
52,250Rockies Express Pipeline LLC, 144A, 7.5%, 7/15/2038
375,000
353,049Southwestern Energy Co., 144A, 7.5%, 2/1/2018
10,000
9,650SPI Electricity Property Ltd., 144A, 7.25%, 12/1/2016
2,875,000
2,885,295Stone Energy Corp.:6.75%, 12/15/2014
60,000
23,7008.25%, 12/15/2011
110,000
57,750Tennessee Gas Pipeline Co., 7.625%, 4/1/2037
15,000
12,944TEPPCO Partners LP, 7.625%, 2/15/2012
35,000
34,635Tesoro Corp., 6.5%, 6/1/2017
40,000
30,200TransCanada PipeLines Ltd.:7.125%, 1/15/2019
20,000
20,8687.625%, 1/15/2039
15,000
14,832Transocean, Inc., Series B, 1.5%, 12/15/2037
410,000
351,575Weatherford International Ltd., 9.875%, 3/1/2039
420,000
413,002Whiting Petroleum Corp.:7.25%, 5/1/2012
45,000
37,0137.25%, 5/1/2013
5,000
3,925Williams Companies, Inc., 8.125%, 3/15/2012
135,000
137,0256,149,628Financials 2.7%Algoma Acquisition Corp., 144A, 9.875%, 6/15/2015
85,000
32,725ANZ National International Ltd., 144A, 6.2%, 7/19/2013
400,000
385,707Ashton Woods USA LLC, 144A, Step-up Coupon, 0% to
2/24/2012, 11.0% to 6/30/2015
52,000
18,970Buffalo Thunder Development Authority, 144A,
9.375%, 12/15/2014
20,000
1,200Citigroup, Inc.:4.125%, 2/22/2010
385,000
371,6056.5%, 8/19/2013
520,000
477,836Erac USA Finance Co.:144A, 5.8%, 10/15/2012
420,000
327,510144A, 8.0%, 1/15/2011
1,180,000
1,068,794Farmers Exchange Capital, 144A, 7.2%, 7/15/2048
760,000
380,337Ford Motor Credit Co., LLC:7.25%, 10/25/2011
300,000
213,5877.875%, 6/15/2010
10,000
8,264FPL Group Capital, Inc., 6.65%, 6/15/2067
1,037,000
746,640GMAC LLC, 144A, 6.875%, 9/15/2011
186,000
132,175Hawker Beechcraft Acquisition Co., LLC, 8.875%,
4/1/2015 (PIK)
70,000
7,875HBOS PLC, 144A, 6.75%, 5/21/2018
185,000
142,709Hexion US Finance Corp., 9.75%, 11/15/2014
10,000
2,200Inmarsat Finance PLC, 10.375%, 11/15/2012
135,000
138,375iPayment, Inc., 9.75%, 5/15/2014
40,000
20,800Local TV Finance LLC, 144A, 9.25%, 6/15/2015 (PIK)
40,000
4,000Merrill Lynch & Co., Inc.:Series C, 5.45%, 7/15/2014
169,000
128,0446.22%, 9/15/2026
100,000
49,363MetLife, Inc., 7.717%, 2/15/2019 (b)
760,000
681,462Metropolitan Life Global Funding I, 144A, 5.125%, 4/10/2013
695,000
634,737Morgan Stanley:5.05%, 1/21/2011
700,000
688,238Series F, 6.0%, 4/28/2015
975,000
920,515National City Corp., 4.0%, 2/1/2011
785,000
715,331NiSource Finance Corp., 7.875%, 11/15/2010
65,000
63,872Orascom Telecom Finance SCA, 144A, 7.875%, 2/8/2014
100,000
64,000PPL Capital Funding, Inc., Series A, 6.7%, 3/30/2067
1,135,000
646,950Qwest Capital Funding, Inc., 7.0%, 8/3/2009
30,000
29,925Rainbow National Services LLC, 144A, 10.375%, 9/1/2014
5,000
5,100Shell International Finance BV, 6.375%, 12/15/2038
510,000
537,042Sprint Capital Corp.:7.625%, 1/30/2011
30,000
27,7508.375%, 3/15/2012
15,000
13,500StanCorp Financial Group, Inc., 6.9%, 6/1/2067
720,000
352,776Symetra Financial Corp., 144A, 8.3%, 10/15/2037
340,000
110,500Tropicana Entertainment LLC, 9.625%, 12/15/2014**
105,000
263UCI Holdco, Inc., 9.32%***, 12/15/2013 (PIK)
55,309
4,425UDR, Inc., Series E, (REIT), 3.9%, 3/15/2010
305,000
286,795Universal City Development Partners Ltd., 
11.75%, 4/1/2010
185,000
158,638Williams Companies, Inc., Credit Linked Certificate Trust, 144A,
6.75%, 4/15/2009
10,000
9,975Wind Acquisition Finance SA:144A, 9.75%, 12/1/2015        EUR
50,000
58,126144A, 10.75%, 12/1/2015
75,000
74,250Xstrata Finance Canada Ltd., 144A, 5.8%, 11/15/2016
711,000
456,87711,199,763Health Care 0.2%Boston Scientific Corp., 6.0%, 6/15/2011
50,000
48,500Community Health Systems, Inc., 8.875%, 7/15/2015
180,000
170,100HCA, Inc.:9.125%, 11/15/2014
60,000
56,4009.25%, 11/15/2016
190,000
172,9009.625%, 11/15/2016 (PIK)
65,000
51,838HEALTHSOUTH Corp., 10.75%, 6/15/2016
25,000
24,500IASIS Healthcare LLC, 8.75%, 6/15/2014
70,000
65,800Psychiatric Solutions, Inc., 7.75%, 7/15/2015
15,000
13,538Surgical Care Affiliates, Inc., 144A, 
8.875%, 7/15/2015 (PIK)
45,000
26,100The Cooper Companies, Inc., 7.125%, 2/15/2015
75,000
67,687Vanguard Health Holding Co. I, LLC, Step-up Coupon,
0% to 10/1/2009, 11.25% to 10/1/2015
15,000
12,450Vanguard Health Holding Co. II, LLC, 9.0%, 10/1/2014
125,000
110,312820,125Industrials 0.2%Actuant Corp., 6.875%, 6/15/2017
25,000
21,188Allied Waste North America, Inc., 6.5%, 11/15/2010
25,000
24,875ARAMARK Corp., 8.5%, 2/1/2015
15,000
13,800BE Aerospace, Inc., 8.5%, 7/1/2018
70,000
58,362Belden, Inc., 7.0%, 3/15/2017
30,000
24,600Browning-Ferris Industries, Inc., 7.4%, 9/15/2035
90,000
78,958Cenveo Corp., 144A, 10.5%, 8/15/2016
35,000
19,644Esco Corp.:144A, 5.195%***, 12/15/2013
35,000
22,050144A, 8.625%, 12/15/2013
40,000
30,400Great Lakes Dredge & Dock Co., 7.75%, 12/15/2013
30,000
24,000K. Hovnanian Enterprises, Inc., 8.875%, 4/1/2012
30,000
10,500Kansas City Southern de Mexico SA de CV:7.375%, 6/1/2014
60,000
47,4007.625%, 12/1/2013
110,000
89,1009.375%, 5/1/2012
95,000
86,450Kansas City Southern Railway Co., 8.0%, 6/1/2015
65,000
53,787Mobile Mini, Inc., 9.75%, 8/1/2014
40,000
29,700Moog, Inc., 144A, 7.25%, 6/15/2018
15,000
13,838Navios Maritime Holdings, Inc., 9.5%, 12/15/2014
60,000
34,200R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017
110,000
6,050RBS Global & Rexnord Corp., 9.5%, 8/1/2014
35,000
28,350Titan International, Inc., 8.0%, 1/15/2012
130,000
101,400TransDigm, Inc., 7.75%, 7/15/2014
20,000
18,650United Rentals North America, Inc.:6.5%, 2/15/2012
80,000
64,0007.0%, 2/15/2014
105,000
53,025Vought Aircraft Industries, Inc., 8.0%, 7/15/2011
25,000
9,750964,077Information Technology 0.3%Alcatel-Lucent USA, Inc., 6.45%, 3/15/2029
110,000
41,800Alion Science & Technology Corp., 10.25%, 2/1/2015
25,000
3,750Cisco Systems, Inc., 5.9%, 2/15/2039
670,000
615,607L-3 Communications Corp.:5.875%, 1/15/2015
125,000
115,937Series B, 6.375%, 10/15/2015
60,000
56,5507.625%, 6/15/2012
120,000
120,450MasTec, Inc., 7.625%, 2/1/2017
50,000
40,688SunGard Data Systems, Inc., 10.25%, 8/15/2015
95,000
66,5001,061,282Materials 0.4%Appleton Papers, Inc., Series B, 8.125%, 6/15/2011
20,000
12,050ARCO Chemical Co., 9.8%, 2/1/2020**
285,000
28,500Cascades, Inc., 7.25%, 2/15/2013
35,000
19,513Chemtura Corp., 6.875%, 6/1/2016**
30,000
13,500Clondalkin Acquisition BV, 144A, 3.32%***, 12/15/2013
75,000
47,062CPG International I, Inc., 10.5%, 7/1/2013
60,000
28,200Exopack Holding Corp., 11.25%, 2/1/2014
130,000
59,150Freeport-McMoRan Copper & Gold, Inc.:6.875%, 2/1/2014
10,000
9,8008.25%, 4/1/2015
90,000
86,1758.375%, 4/1/2017
175,000
163,625Georgia-Pacific LLC:144A, 7.125%, 1/15/2017
35,000
32,3759.5%, 12/1/2011
30,000
29,962Hexcel Corp., 6.75%, 2/1/2015
155,000
130,975Innophos, Inc., 8.875%, 8/15/2014
15,000
12,300Koppers Holdings, Inc., Step-up Coupon, 0% to 11/15/2009,
9.875% to 11/15/2014
100,000
81,500Metals USA Holdings Corp., 7.435%***, 7/1/2012 (PIK)
20,544
4,828Millar Western Forest Products Ltd., 
7.75%, 11/15/2013
15,000
5,025NewMarket Corp., 7.125%, 12/15/2016
80,000
63,400NewPage Corp., 10.0%, 5/1/2012
85,000
29,537OI European Group BV, 144A, 6.875%, 3/31/2017 EUR
50,000
57,130Rhodia SA, 144A, 5.362%***, 10/15/2013        EUR
50,000
34,544Sappi Papier Holding AG, 144A, 6.75%, 6/15/2012
499,000
280,271Terra Capital, Inc., Series B, 7.0%, 2/1/2017
80,000
73,600The Mosaic Co., 144A, 7.375%, 12/1/2014
110,000
107,800Witco Corp., 6.875%, 2/1/2026**
15,000
3,900Wolverine Tube, Inc., 10.5%, 4/1/2009
65,000
55,900Xstrata Canada Corp., 6.0%, 10/15/2015
160,000
112,5811,583,203Telecommunication Services 0.4%BCM Ireland Preferred Equity Ltd., 144A,
8.959%***, 2/15/2017 (PIK) EUR
56,161
2,894Centennial Communications Corp.:10.0%, 1/1/2013
25,000
26,56310.125%, 6/15/2013
65,000
67,275Cincinnati Bell, Inc.:7.25%, 7/15/2013
95,000
90,7258.375%, 1/15/2014
40,000
37,600Cricket Communications, Inc.:9.375%, 11/1/2014
85,000
80,963144A, 10.0%, 7/15/2015
70,000
67,375Frontier Communications Corp.:6.25%, 1/15/2013
40,000
36,2509.25%, 5/15/2011
20,000
20,300Hellas Telecommunications Luxembourg V, 144A, 6.112%***,
10/15/2012      EUR
200,000
128,874Intelsat Corp., 144A, 9.25%, 6/15/2016
165,000
152,625iPCS, Inc., 3.295%***, 5/1/2013
15,000
11,250MetroPCS Wireless, Inc., 9.25%, 11/1/2014
105,000
101,850Millicom International Cellular SA, 10.0%, 12/1/2013
155,000
151,512Qwest Corp.:7.25%, 9/15/2025
15,000
9,9007.875%, 9/1/2011
90,000
88,6508.875%, 3/15/2012
20,000
19,750Sprint Nextel Corp., 6.0%, 12/1/2016
45,000
32,175Stratos Global Corp., 9.875%, 2/15/2013
30,000
27,900Telesat Canada, 144A, 11.0%, 11/1/2015
110,000
91,300Virgin Media Finance PLC:8.75%, 4/15/2014
90,000
85,0508.75%, 4/15/2014      EUR
20,000
23,516Windstream Corp.:7.0%, 3/15/2019
40,000
35,2008.625%, 8/1/2016
10,000
9,8251,399,322Utilities 1.5%AES Corp.:144A, 8.0%, 6/1/2020
70,000
56,700144A, 8.75%, 5/15/2013
230,000
226,5509.5%, 6/1/2009
50,000
49,937Allegheny Energy Supply Co., LLC, 144A, 8.25%, 4/15/2012
300,000
303,426CenterPoint Energy Houston Electric LLC, Series U,
7.0%, 3/1/2014
15,000
15,643CMS Energy Corp., 8.5%, 4/15/2011
175,000
175,930Dominion Resources, Inc., 7.5%, 6/30/2066
900,000
558,000Edison Mission Energy, 7.0%, 5/15/2017
40,000
29,200Electricite de France, 144A, 6.95%, 1/26/2039
305,000
302,305Energy East Corp., 6.75%, 6/15/2012
970,000
952,773Energy Future Holdings Corp., 10.875%, 11/1/2017
45,000
29,025FirstEnergy Corp., Series B, 6.45%, 11/15/2011
490,000
490,444Integrys Energy Group, Inc., 6.11%, 12/1/2066
795,000
421,350IPALCO Enterprises, Inc., 144A, 7.25%, 4/1/2016
35,000
30,975Jersey Central Power & Light Co., 6.15%, 6/1/2037
580,000
473,129Knight, Inc., 6.5%, 9/1/2012
60,000
55,950Mirant Americas Generation LLC, 8.3%, 5/1/2011
90,000
87,300Mirant North America LLC, 7.375%, 12/31/2013
25,000
22,625NRG Energy, Inc.:7.25%, 2/1/2014
80,000
75,2007.375%, 1/15/2017
60,000
55,8007.375%, 2/1/2016
70,000
65,100NV Energy, Inc.:6.75%, 8/15/2017
85,000
67,4598.625%, 3/15/2014
15,000
14,138Oncor Electric Delivery Co., 7.0%, 9/1/2022
30,000
27,976PacifiCorp, 5.5%, 1/15/2019
20,000
20,475Pepco Holdings, Inc., 6.45%, 8/15/2012
640,000
640,356Regency Energy Partners LP, 8.375%, 12/15/2013
50,000
42,500Reliant Energy, Inc., 7.875%, 6/15/2017
55,000
43,450Texas Competitive Electric Holdings Co., LLC, Series A,
10.25%, 11/1/2015
185,000
92,500Union Electric Co., 6.4%, 6/15/2017
555,000
533,2145,959,430Total Corporate Bonds (Cost $45,393,528)
38,074,706Asset-Backed 0.5%Home Equity LoansBayview Financial Acquisition Trust, "1A1", Series 2006-A,
5.614%, 2/28/2041
138,042
132,323Countrywide Asset-Backed Certificates:"AF3", Series 2005-1, 4.575%, 7/25/2035
184,574
172,898"A6", Series 2006-S6, 5.657%, 3/25/2034
1,319,411
500,064"A6", Series 2006-15, 5.826%, 10/25/2046
450,000
202,742"A1B", Series 2007-S1, 5.888%, 11/25/2036
405,175
257,373"1AF6", Series 2006-11, 6.15%, 9/25/2046
1,295,000
603,260Total Asset-Backed (Cost $3,784,885)
1,868,660Commercial Mortgage-Backed Securities 1.8%Banc of America Commercial Mortgage, Inc.:"AM", Series 2007-2, 5.699%***, 4/10/2049
640,000
284,322"AM", Series 2007-4, 5.812%***, 2/10/2051
375,000
151,149"ASB", Series 2008-1, 6.173%, 2/10/2051
550,000
439,270Bear Stearns Commercial Mortgage Securities, Inc., "A4",
Series 2007-PW17, 5.694%, 6/11/2050
1,180,000
872,295Citigroup/Deutsche Bank Commercial Mortgage Trust, "A2B",
Series 2007-CD4, 5.205%, 12/11/2049
425,000
340,763CW Capital Cobalt Ltd., "AAB", Series 2007-C2,
5.416%, 4/15/2047
125,000
97,344GS Mortgage Securities Corp. II:"A2", Series 2007-GG10, 5.778%, 8/10/2045
2,130,000
1,796,411"AM", Series 2007-GG10, 5.799%***, 8/10/2045
360,000
133,200JPMorgan Chase Commercial Mortgage Securities Corp.:"ASB", Series 2007-CB20, 5.688%, 2/12/2051
350,000
275,039"ASB", Series 2007-CB19, 5.73%***, 2/12/2049
1,280,000
1,018,151"A2", Series 2007-LD11, 5.804%***, 6/15/2049
150,000
119,725"A4", Series 2007-LD12, 5.882%, 2/15/2051
273,000
193,013"AM", Series 2007-LD12, 6.062%***, 2/15/2051
825,000
333,546JPMorgan Mortgage Trust, "1A1", Series 2008-R2, 144A,
5.74%***, 7/27/2037
641,415
320,708Merrill Lynch/Countrywide Commercial Mortgage Trust:"ASB", Series 2007-9, 5.644%, 9/12/2049
450,000
349,663"ASB", Series 2007-7, 5.745%, 6/12/2050
700,000
549,224Total Commercial Mortgage-Backed Securities (Cost $8,772,057)
7,273,823Collateralized Mortgage Obligations 6.1%Banc of America Mortgage Securities, "3A1", Series 2003-H,
4.526%***, 9/25/2033
852,240
729,751Bear Stearns Adjustable Rate Mortgage Trust:"3A1", Series 2007-5, 5.977%***, 8/25/2047
1,125,248
601,737"22A1", Series 2007-4, 5.993%***, 6/25/2047
882,747
455,815Chase Mortgage Finance Corp., "3A1", Series 2005-A1,
5.285%***, 12/25/2035
975,285
628,623Citigroup Mortgage Loan Trust, Inc., "1CB2",
Series 2004-NCM2, 6.75%, 8/25/2034
1,016,972
878,409Countrywide Alternative Loan Trust:"A2", Series 2003-21T1, 5.25%, 12/25/2033
635,567
523,884"A6", Series 2004-14T2, 5.5%, 8/25/2034
561,556
495,644"1A1", Series 2004-J1, 6.0%, 2/25/2034
115,598
106,856Credit Suisse Mortgage Capital Certificates, Inc., "3A1", Series
2006-9, 6.0%, 11/25/2036
453,672
224,284Federal Home Loan Mortgage Corp.:"LN", Series 3145, 4.5%, 10/15/2034
1,121,608
1,155,701"BG", Series 2869, 5.0%, 7/15/2033
315,000
331,781"NE", Series 2802, 5.0%, 2/15/2033
880,000
924,197"PD", Series 2904, 5.5%, 3/15/2033
325,000
339,683"XD", Series 2966, 5.5%, 9/15/2033
1,305,000
1,368,436Federal National Mortgage Association:"YD", Series 2005-94, 4.5%, 8/25/2033
1,445,000
1,463,147"EA", Series 2008-54, 5.0%, 7/25/2019
1,572,820
1,657,747GMAC Mortgage Corp. Loan Trust, "4A1", Series 2005-AR6,
5.467%***, 11/19/2035
999,181
601,798JPMorgan Mortgage Trust:"3A3", Series 2004-A3, 4.957%***, 7/25/2034
1,380,000
655,212"2A4", Series 2006-A2, 5.754%***, 4/25/2036
2,000,000
976,454"2A1" Series 2006-A5, 5.82%***, 8/25/2036
917,010
505,023Lehman Mortgage Trust, "3A3", Series 2006-1,
5.5%, 2/25/2036
1,086,036
758,378MASTR Adjustable Rate Mortgages Trust:"3A6",Series 2004-13, 3.788%***, 11/21/2034
1,185,000
798,516"B1", Series 2004-13, 4.345%***, 12/21/2034
1,352,976
487,476Merrill Lynch Mortgage Investors Trust, "A2", Series 2005-A5,
4.566%, 6/25/2035
175,000
97,143New York Mortgage Trust, "2A3", Series 2006-1, 5.653%***,
5/25/2036
1,400,000
689,907Residential Accredit Loans, Inc., "A3", Series 2004-QS11,
5.5%, 8/25/2034
395,121
323,135Structured Adjustable Rate Mortgage Loan Trust, "6A3",
Series 2005-21, 5.4%***, 11/25/2035
1,190,000
454,181Structured Asset Securities Corp., "4A1", Series 2005-6, 5.0%,
5/25/2035
296,954
202,393Washington Mutual Mortgage Pass-Through Certificates Trust:"1A3", Series 2005-AR16, 5.099%***, 12/25/2035
1,305,000
631,276"1A3A", Series 2005-AR18, 5.244%***, 1/25/2036
1,625,000
851,891"1A1", Series 2006-AR18, 5.307%***, 1/25/2037
1,113,606
538,461"1A3", Series 2006-AR8, 5.844%***, 8/25/2046
1,395,000
629,347Wells Fargo Mortgage Backed Securities Trust:"2A5", Series 2006-AR2, 5.077%***, 3/25/2036
3,237,548
1,853,087"3A2", Series 2006-AR8, 5.237%***, 4/25/2036
2,070,000
938,789"A6", Series 2006-AR11, 5.51%***, 8/25/2036
1,995,000
947,873Total Collateralized Mortgage Obligations (Cost $37,806,362)
24,826,035Mortgage-Backed Securities Pass-Throughs 6.0%Federal Home Loan Mortgage Corp.:4.5%, 11/1/2018
972,470
1,008,7865.5%, 10/1/2023
737,290
768,2215.518%***, 2/1/2038
24,504
25,1976.0%, 3/1/2038
399,737
418,5536.5%,with various maturities from 1/1/2035 until 8/1/2038
1,367,243
1,456,939Federal National Mortgage Association:4.5%,with various maturities from 7/1/2020 until 10/1/2033
2,953,883
3,042,4935.0%, 9/1/2033
1,222,346
1,265,7975.5%,with various maturities from 1/1/2020 until 9/1/2036
8,925,145
9,313,9146.0%,with various maturities from 1/1/2024 until 2/1/2037
1,843,706
1,935,8386.5%,with various maturities from 5/1/2023 until 11/1/2037
3,164,302
3,357,5277.0%, 4/1/2038
1,089,354
1,162,1629.0%, 11/1/2030
53,056
58,459Government National Mortgage Association, 5.5%, 1/15/2039
532,150
555,162Total Mortgage-Backed Securities Pass-Throughs (Cost $23,286,756)
24,369,048Preferred Security 0.1%FinancialsStoneheath Re, 6.868%, 10/15/2011 (c) (Cost $1,464,849)
1,460,000
350,400Municipal Bonds and Notes 1.1%Arizona, Salt River Project, Agricultural Improvement & Power
District, Electric Systems Revenue, Series A, 5.0%, 1/1/2038
480,000
476,342Central Puget Sound, WA, Regional Transportation Authority,
Sales & Use Tax Revenue, Series A, 5.0%, 11/1/2036
295,000
291,938Florida, State Board of Education, Capital Outlay 2006, Series
E, 5.0%, 6/1/2035
500,000
492,785Hammond, IN, Redevelopment Authority Lease Rent Revenue,
Hammond Marina Project, 5.57%, 2/1/2014 (d)
610,000
585,631Palm Beach County, FL, Public Improvement Revenue, 5.0%,
5/1/2038
390,000
377,220Suffolk, VA, Multi-Family Housing Revenue, Redevelopment &
Housing Authority, Windsor at Potomac, Series T, 6.6%,
7/1/2015
1,475,000
1,484,292Whittier, CA, Redevelopment Agency, Tax Allocation, Housing
Projects, Series B, 6.09%, 11/1/2038 (d)
1,400,000
767,396Total Municipal Bonds and Notes (Cost $5,138,368)
4,475,604Government & Agency Obligations 9.2%US Treasury ObligationsUS Treasury Bills:0.04%****, 5/21/2009 (e)
98,000
97,9790.13%****, 6/11/2009 (e)
3,358,000
3,356,7950.23%****, 6/18/2009 (e)
39,000
38,9870.29%****, 6/18/2009 (e)
1,804,000
1,803,374US Treasury Bond, 4.5%, 5/15/2038 (b)
3,048,000
3,558,540US Treasury Notes:0.875%, 2/28/2011 (b)
12,573,000
12,597,0141.375%, 3/15/2012 (b)
7,146,000
7,195,6861.875%, 2/28/2014 (b)
455,000
459,9782.375%, 3/31/2016
3,545,000
3,567,9862.75%, 2/15/2019 (b)
4,169,000
4,191,8044.875%, 5/31/2011 (b) (e)
500,000
543,594Total Government & Agency Obligations (Cost $37,193,693)
37,411,737 Shares
Value ($)Securities Lending Collateral 7.0%Daily Assets Fund Institutional, 0.78% (f) (g) (Cost $28,246,581)
28,246,581
28,246,581Cash Equivalents 4.8%Cash Management QP Trust, 0.53% (f) (Cost $19,384,491)
19,384,491
19,384,491 % of Net
Assets
Value ($)Total Investment Portfolio(Cost $498,022,469)+
106.2
429,881,414Other Assets and Liabilities, Net
(6.2)
(25,204,235)Net Assets
100.0
404,677,179 * Non-income producing security.  ** Non-income producing security. Issuer has defaulted on the payment of principal or interest
or has filed for bankruptcy. The following table represents bonds that are in default:  Securities
Coupon
Maturity
Date
Principal Amount
Acquisition
Cost ($)
Value ($)ARCO Chemical Co.
9.8%
2/1/2020
285,000
USD
253,650
28,500CanWest MediaWorks
LP
9.25%
8/1/2015
35,000
USD
32,944
2,450Chemtura Corp.
6.875%
6/1/2016
30,000
USD
27,169
13,500Idearc, Inc.
8.0%
11/15/2016
85,000
USD
64,213
2,231Tropicana
Entertainment LLC
9.625%
12/15/2014
105,000
USD
54,144
263Trump Entertainment
Resorts, Inc.
8.5%
6/1/2015
10,000
USD
7,225
800Witco Corp.
6.875%
2/1/2026
15,000
USD
11,850
3,900451,195
51,644 *** 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 March 31, 2009.  **** Annualized yield at time of purchase; not a coupon rate  +  The cost for federal income tax purposes was $503,742,192. At March 31, 2009, net
unrealized depreciation for all securities based on tax cost was $73,860,778. This consisted
of aggregate gross unrealized appreciation for all securities in which there was an excess
of value over tax cost of $12,767,908 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value of $86,628,686.  (a) Principal amount stated in US dollars unless otherwise noted.  (b) All or a portion of these securities were on loan (see Notes to Financial Statements). The
value of all securities loaned at March 31, 2009 amounted to $27,643,971, which is 6.8%
of net assets.  (c)  Date shown is call date; not a maturity date for the perpetual preferred securities.  (d)  Bond is insured by one of these companies:  Insurance Coverage
As a % of Total
Investment PortfolioFinancial Guaranty Insurance Company
0.2National Public Finance Guarantee Corp.
0.1 (e) At March 31, 2009, this security has been pledged, in whole or in part, to cover initial
margin requirements for open futures contracts.  (f) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate
shown is the annualized seven-day yield at period end.  (g)  Represents collateral held in connection with securities lending. Income earned by the
Fund is net of borrower rebates.  144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally to qualified
institutional buyers. ADR: American Depositary Receipt CVA: Certificaten Van Aandelen FDR: Fiduciary Depositary Receipt MSCI: Morgan Stanley Capital International PIK: Denotes that all or a portion of income is paid in kind. PPS: Price Protected Shares REIT: Real Estate Investment Trust RSP: Risparmio (Convertible Savings Shares) SDR: Swedish Depositary Receipt Included in the portfolio are investments in mortgage or asset-backed securities which are
interests in separate pools of mortgages or assets. Effective maturities of these investments
may be shorter than stated maturities due to prepayments. Some separate investments in the
Federal Home Loan Mortgage Corp. and Federal National Mortgage Association issues which
have similar coupon rates have been aggregated for presenation purposes in this investment
portfolio. At March 31, 2009, open futures contracts purchased were as follows: Futures
Expiration
Date
Contracts
Aggregate
Face
Value ($)
Value ($)
Unrealized
Appreciation ($)5 Year US Treasury
Note
6/30/2009
167
19,518,584
19,833,859
315,275ASX SPI 200 Index
6/18/2009
3
175,078
185,971
10,893DJ Euro Stoxx 50
Index
6/19/2009
25
645,451
661,975
16,524Federal Republic of
Germany Euro-Bund
6/8/2009
4
655,326
661,271
5,945FTSE 100 Index
6/19/2009
112
6,065,353
6,243,319
177,966Nikkei 225 Index
6/11/2009
4
140,917
167,300
26,383Russell E Mini 2000
Index
6/19/2009
42
1,644,609
1,769,460
124,851S&P TSE 60 Index
6/18/2009
1
79,634
83,439
3,805United Kingdom
Long Gilt Bond
6/26/2009
76
13,217,446
13,435,877
218,431Total unrealized appreciation
900,073 At March 31, 2009, open futures contracts sold were as follows: Futures
Expiration
Date
Contracts
Aggregated
Face
Value ($)
Value ($)
Unrealized
Depreciation ($)10 Year US Treasury
Note
6/16/2009
78
9,441,926
9,678,094
(236,168)S&P E-Mini 500
Index
6/19/2009
126
4,753,054
5,007,240
(254,186)Total unrealized depreciation
(490,354) As of March 31, 2009, the Fund had the following open forward foreign currency exchange
contracts: Contracts to Deliver

In Exchange For

Settlement
Date
Unrealized
Appreciation ($)USD
2,617,410

AUD
4,058,000

4/15/2009
200,947USD
77,360

CHF
92,000

4/15/2009
3,488USD
1,568,135

NZD
3,059,000

4/15/2009
175,095USD
1,732,172

SEK
15,196,000

4/15/2009
116,419EUR
2,800

USD
3,809

4/20/2009
96JPY
180,600,000

USD
1,835,086

5/29/2009
12,176JPY
75,116,600

USD
768,236

6/26/2009
9,595Total unrealized appreciation
517,816Contracts to Deliver

In Exchange For

Settlement
Date
Unrealized
Depreciation ($)USD
12,972,840

JPY
1,260,759,000

4/15/2009
(233,255)EUR
409,000

USD
536,723

4/20/2009
(5,614)Total unrealized depreciation
(238,869) Currency AbbreviationsAUD     Australian DollarCHF     Swiss FrancEUR     EuroJPY     Japanese YenNZD     New Zealand DollarSEK     Swedish KronaUSD     United States Dollar Fair Value Measurements Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements," 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 March 31, 2009 in valuing the Fund's
investments. For information on the Fund's policy regarding the valuation of investments,
please refer to the Security Valuation section of Note A in the accompanying Notes to the
Financial Statements. Valuation Inputs
Investments in
Securities
Other Financial
Instruments++Level 1
$       237,727,085
$       409,719Level 2
191,460,768
278,947Level 3
693,561
Total
$    429,881,414
$    688,666 + + Other financial instruments are derivative instruments not reflected in the Investment
Portfolio, such as futures contracts and forward foreign currency exchange contracts,
which are valued at the unrealized appreciation (depreciation) on the instrument.  The following is a reconciliation of the Fund's Level 3 investments for which significant
unobservable inputs were used in determining value at March 31, 2009: Investments in
SecuritiesBalance as of March 31, 2008
$       1,164,496Total realized gains (loss)
5,761Change in unrealized appreciation (depreciation)
(1,100,542)Amortization premium/discount
417Net purchases (sales)
623,429Net transfers in (out) of Level 3
Balance as of March 31, 2009
$    693,561Net change in unrealized appreciation (depreciation) from investments
still held as of March 31, 2009
$    (1,100,542) The accompanying notes are an integral part of the financial statements. Financial Statements Statement of Assets and Liabilitiesas of March 31, 2009AssetsInvestments:Investments in securities, at value (cost $450,391,397)  including
$27,643,971 of securities loaned
$       382,250,342Investment in Daily Assets Fund Institutional (cost $28,246,581)*
28,246,581Investment in Cash Management QP Trust (cost $19,384,491)
19,384,491Total investments, at value (cost $498,022,469)
429,881,414Cash
105,472Foreign currency, at value (cost $709,058)
713,735Receivable for investments sold
756,268Dividends receivable
421,471Interest receivable
1,490,816Receivable for Fund shares sold
1,400Receivable for daily variation margin on open futures contracts
153,098Foreign taxes recoverable
64,672Unrealized appreciation on forward foreign currency exchange contracts
517,816Due from Advisor
22,702Other assets
40,824Total assets
434,169,688LiabilitiesPayable for investments purchased
60,434Payable for Fund shares redeemed
194,818Payable upon return of securities loaned
28,246,581Unrealized depreciation on forward foreign currency exchange contracts
238,869Accrued management fee
296,771Other accrued expenses and payables
455,036Total liabilities
29,492,509Net assets, at value
$    404,677,179 * Represents collateral on securities loaned.  The accompanying notes are an integral part of the financial statements. Statement of Assets and Liabilitiesas of March 31, 2009 (continued)Net Assets consist ofAccumulated distributions in excess of net investment income
(529,474)Net unrealized appreciation (depreciation) on:Investments
(68,141,055)Futures
409,719Foreign currency
279,443Accumulated net realized gain (loss)
(223,197,398)Paid-in capital
695,855,944Net assets, at value
$    404,677,179Net Asset ValueClass S
Net Asset Value offering and redemption price per share
($2,816,777 ÷ 451,781 outstanding shares of beneficial interest,
$.001 par value, unlimited number of shares authorized)
$    6.23Institutional Class
Net Asset Value offering and redemption price per share
($401,860,402 ÷ 61,711,745 outstanding shares of beneficial interest,
$.001 par value, unlimited number of shares authorized)
$    6.51 The accompanying notes are an integral part of the financial statements. Statement of Operationsfor the year ended March 31, 2009Investment IncomeIncome:Dividends (net of foreign taxes withheld of $191,823)
$       7,402,709Interest (net of foreign taxes withheld of $16,022)
12,370,950Interest  Cash Management QP Trust
626,097Securities lending income, including income from Daily Assets Fund
Institutional, net of borrower rebates
211,567Total Income
20,611,323Expenses:Management fee
3,171,932Administration fee
540,771Services to shareholders
832,721Professional fees
104,928Trustees' fees and expenses
23,896Custodian fee
362,330Reports to shareholders
73,258Registration fees
37,017Interest expense
90,890Other
70,570Total expenses before expense reductions
5,308,313Expense reductions
(2,233,422)Total expenses after expense reductions
3,074,891Net investment income
17,536,432Realized and Unrealized Gain (Loss)Net realized gain (loss) from:Investments
(171,343,323)Futures
(2,863,131)Foreign currency
(12,803,668)Payments by affiliates (see Note H)
22,702(186,987,420)Change in net unrealized appreciation (depreciation) on:Investments
(34,274,846)Futures
(382,104)Foreign currency
2,172,740(32,484,210)Net gain (loss)
(219,471,630)Net increase (decrease) in net assets resulting from operations
$    (201,935,198) The accompanying notes are an integral part of the financial statements. Statement of Changes in Net AssetsIncrease (Decrease) in Net Assets
Years Ended March 31,2009
2008Operations:Net investment income
$       17,536,432
$       22,190,391Net realized gain (loss)
(186,987,420)
25,684,604Change in net unrealized appreciation (depreciation)
(32,484,210)
(50,387,549)Net increase (decrease) in net assets resulting from
operations
(201,935,198)
(2,512,554)Distributions to shareholders from:Net investment incomeClass S
(96,361)
(186,707)Institutional Class
(14,118,247)
(31,654,117)Net realized gainsClass S
(62,382)
(697,044)Institutional Class
(8,205,004)
(105,625,464)Return of capital:Class S
(40,733)
Institutional Class
(5,967,926)
Total distributions
(28,490,653)
(138,163,332)Fund share transactions:Proceeds from shares sold
48,621,820
99,016,462Reinvestment of distributions
28,489,415
138,155,019Cost of shares redeemed
(185,258,477)
(118,987,404)Redemption fees*

89,752Net increase (decrease) in net assets from Fund share
transactions
(108,147,242)
118,273,829Increase (decrease) in net assets
(338,573,093)
(22,402,057)Net assets at beginning of period
743,250,272
765,652,329Net assets at end of period (including accumulated
distributions in excess of net investment income and
undistributed net investment income of $529,474 and
$5,530,126, respectively)
$    404,677,179
$    743,250,272 *    Effective April 1, 2008, the Fund no longer imposes the 2% redemption fee on Fund shares
acquired on or after that date.  The accompanying notes are an integral part of the financial statements. Financial Highlights Class S+
Years Ended March 31,
2009
2008
2007
2006
2005Selected Per Share DataNet asset value, beginning of period
$    9.79
$    11.85
$    11.30
$    10.62
$    10.43Income (loss) from investment operations:
Net investment incomea
.26
.29
.33
.22
.21Net realized and unrealized gain (loss)
(3.40)
(.30)
.80
.70
.30Total from investment operations
(3.14)
(.01)
1.13
.92
.51Less distributions from:
Net investment income
(.20)
(.42)
(.25)
(.24)
(.32)Net realized gains
(.13)
(1.63)
(.33)

Return of capital
(.09)



Total distributions
(.42)
(2.05)
(.58)
(.24)
(.32)Redemption fees

.00*
.00*
.00*
.00*Net asset value, end of period
$    6.23
$    9.79
$    11.85
$    11.30
$    10.62Total Return (%)b
(33.05)
(.75)
10.16
8.77
4.92Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
3
5
5
31
56Ratio of expenses before expense
reductions (%)
1.08
1.05
.93
1.41
1.33cRatio of expenses after expense
reductions (%)
.82
.87
.71
1.00
1.00cRatio of net investment income (%)
2.99
2.50
2.67
1.92
1.90Portfolio turnover rate (%)
242
264
175
108
122d+On October 23, 2006, Investment Class was renamed Class S.aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced.cThe ratio includes expenses allocated from the Asset Management Portfolio, the Fund's
master portfolio through August 20, 2004.dThis ratio includes the purchase and sales of portfolio securities of the DWS Lifecycle
Long Range Fund as a stand-alone fund in addition to the Asset Management Portfolio.*Amount is less than $.005. The accompanying notes are an integral part of the financial statements. Institutional Class
Years Ended March 31,
2009
2008
2007
2006
2005Selected Per Share DataNet asset value, beginning of period
$    10.22
$    12.29
$    11.74
$    11.04
$    10.84Income (loss) from investment operations:
Net investment incomea
.28
.32
.34
.27
.25Net realized and unrealized gain (loss)
(3.54)
(.29)
.85
.74
.33Total from investment operations
(3.26)
.03
1.19
1.01
.58Less distributions from:
Net investment income
(.23)
(.47)
(.31)
(.31)
(.38)Net realized gains
(.13)
(1.63)
(.33)

Return of capital
(.09)



Total distributions
(.45)
(2.10)
(.64)
(.31)
(.38)Redemption fees

.00*
.00*
.00*
.00*Net asset value, end of period
$    6.51
$    10.22
$    12.29
$    11.74
$    11.04Total Return (%)b
(32.84)
(.40)
10.28
9.19
5.42Ratios to Average Net Assets and Supplemental DataNet assets, end of period ($ millions)
402
738
761
726
719Ratio of expenses before expense
reductions (%)
.98
.89
.89
.91
.83cRatio of expenses after expense
reductions (%)
.57
.55
.55
.55
.55cRatio of net investment income (%)
3.24
2.82
2.83
2.37
2.35Portfolio turnover rate (%)
242
264
175
108
122daBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced.cThe ratio includes expenses allocated from the Asset Management Portfolio, the Fund's
master portfolio through August 20, 2004.dThis ratio includes the purchase and sales of portfolio securities of the DWS Lifecycle
Long Range Fund as a stand-alone fund in addition to the Asset Management Portfolio.*Amount is less than $.005. The accompanying notes are an integral part of the financial statements. Notes to Financial Statements A. Significant Accounting Policies DWS Lifecycle Long Range Fund (the "Fund") is a diversified series of DWS
Advisor Funds (the "Trust") which is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company organized as a Massachusetts business
trust. The Fund offers two classes of shares: Institutional Class and Class S.
Institutional Class shares are offered to a limited group of investors and are
not subject to initial or contingent deferred sales charges. Institutional Class
shares have lower ongoing expenses than Class S shares. Class S shares
are not subject to initial or contingent deferred sales charges and are
generally not available to new investors except under certain circumstances. Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on
the basis of relative net assets by the holders of both classes of shares
except that each class bears certain expenses unique to that class such as
services to shareholders and certain other class specific expenses.
Differences in class-level expenses may result in payment of different per
share dividends by class. All shares of the Fund have equal rights with
respect to voting subject to class-specific arrangements. The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America, which require
the use of management estimates. Actual results could differ from those
estimates. The policies described below are followed consistently by the
Fund in the preparation of its financial statements. Security Valuation. Investments are stated at value determined as of the
close of regular trading on the New York Stock Exchange on each day the
exchange is open for trading. Equity securities and exchange traded funds
are valued at the most recent sale price or official closing price reported on
the exchange (US or foreign) or over-the-counter market on which the
security is traded most extensively. Securities for which no sales are
reported are valued at the calculated mean between the most recent bid
and asked quotations on the relevant market or, if a mean cannot be
determined, at the most recent bid quotation. Debt securities are valued by independent pricing services approved by the
Trustees of the Fund. If the pricing services are unable to provide valuations,
the securities are valued at the most recent bid quotation or evaluated price,
obtained from one or more broker-dealers. Such services may use various
pricing techniques which take into account appropriate factors such as yield,
quality, coupon rate, maturity, type of issue, trading characteristics and other
data, as well as broker quotes. Money market instruments purchased with an original or remaining maturity
of sixty days or less, maturing at par, are valued at amortized cost.
Investments in open-end investment companies and Cash Management QP
Trust are valued at their net asset value each business day. Securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to
reflect fair value are valued in a manner that is intended to reflect their fair
value as determined in accordance with procedures approved by the
Trustees. The Fund may use a fair valuation model to value international
equity securities in order to adjust for events which may occur between the
close of the foreign exchanges and the close of the New York Stock
Exchange. In accordance with the Fund's valuation procedures, factors used
in determining value may include, but are not limited to, the type of the
security, the size of the holding, the initial cost 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 issuer 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. The value determined under these
procedures may differ from published values for the same securities. The Fund adopted Financial Accounting Standards Board ("FASB")
Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"), effective at the beginning of the Fund's fiscal
year. Disclosure about the classification of fair value measurements is
included at the end of the Fund's Investment Portfolio. New Accounting Pronouncements. In March 2008, the FASB issued
Statement of Financial Accounting Standards No. 161 ("FAS 161"),
"Disclosures about Derivative Instruments and Hedging Activities." FAS 161
requires enhanced disclosure about an entity's derivative and hedging
activities including qualitative disclosures about the objectives and
strategies for using derivatives, quantitative disclosures about fair value
amounts of gains and losses on derivative instruments, and disclosures
about credit-risk-related contingent features in derivative agreements. FAS
161 is effective for fiscal years and interim periods beginning after
November 15, 2008. Management is currently reviewing the enhanced
disclosure requirements for the adoption of FAS 161. In addition, in April 2009, FASB issued FASB Staff Position No. 157-4,
"Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly" ("FSP 157-4"). FSP 157-4 provides additional
guidance for estimating fair value in accordance with FAS 157, when the
volume and level of activity for the asset or liability have significantly
decreased as well as guidance on identifying circumstances that indicate a
transaction is not orderly. FSP 157-4 is effective for fiscal years and interim
periods ending after June 15, 2009. Management is currently reviewing the
enhanced disclosure requirements for the adoption of FSP 157-4. Foreign Currency Translations. The books and records of the Fund are
maintained in US dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into US dollars at
the prevailing exchange rates at period end. Purchases and sales of
investment securities, income and expenses are translated into US dollars at
the prevailing exchange rates on the respective dates of the transactions. Net realized and unrealized gains and losses on foreign currency
transactions represent net gains and losses between trade and settlement
dates on securities transactions, the disposition of forward foreign currency
exchange contracts and foreign currencies, and the difference between the
amount of net investment income accrued and the US dollar amount
actually received. That portion of both realized and unrealized gains and
losses on investments that results from fluctuations in foreign currency
exchange rates is not separately disclosed but is included with net realized
and unrealized gain/appreciation and loss/depreciation on investments. Forward Foreign Currency Exchange Contracts. A forward foreign currency
exchange contract ("forward currency contract") is a commitment to
purchase or sell a foreign currency at the settlement date at a negotiated
rate. The Fund may enter into forward currency contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
currency denominated portfolio holdings, to facilitate transactions in foreign
currency denominated securities and to enhance the total returns.The Fund
may also enter into forward currency contracts as part of its global tactical
asset allocation overlay strategy. Forward currency contracts are valued at the prevailing forward exchange
rate of the underlying currencies and unrealized gain (loss) is recorded daily.
Sales and purchases of forward currency contracts having the same
settlement date and broker are offset and any gain (loss) is realized on the
date of offset; otherwise, gain (loss) is realized on settlement date. Realized
and unrealized gains and losses which represent the difference between the
value of a forward currency contract to buy and a forward currency contract
to sell are included in net realized and unrealized gain (loss) from foreign
currency. Certain risks may arise upon entering into forward currency contracts from
the potential inability of counterparties to meet the terms of their contracts.
Additionally, when utilizing forward currency contracts to hedge, the Fund
gives up the opportunity to profit from favorable exchange rate movements
during the term of the contract. Securities Lending. The Fund may lend securities to financial institutions.
The Fund retains beneficial ownership of the securities it has loaned and
continues to receive interest and dividends paid by the issuer of securities
and to participate in any changes in their market value. The Fund requires
the borrowers of the securities to maintain collateral with the Fund
consisting of liquid, unencumbered assets having a value at least equal to
the value of the securities loaned. When the collateral falls below specified
amounts, the lending agents will use their best efforts to obtain additional
collateral on the next business day to meet required amounts under the
security lending agreement. The Fund may invest the cash collateral into a
joint trading account in an affiliated money market fund pursuant to
Exemptive Orders issued by the SEC. The Fund receives compensation for
lending its securities either in the form of fees or by earning interest on
invested cash collateral net of borrower rebates and fees paid to a lending
agent. Either the Fund or the borrower may terminate the loan. There may
be risks of delay and costs in recovery of securities or even loss of rights in
the collateral should the borrower of the securities fail financially. The Fund
is also subject to all investment risks associated with the reinvestment of
any cash collateral received, including, but not limited to, interest rate, credit
and liquidity risk associated with such investments. Futures Contracts. A futures contract is an agreement between a buyer or
seller and an established futures exchange or its clearinghouse in which the
buyer or seller agrees to take or make a delivery of a specific amount of a
financial instrument at a specified price on a specific date (settlement date).
The Fund may utilize futures contracts as an efficient means of managing
allocations between assets or to keep cash on hand to meet shareholder
redemptions or other needs while maintaining exposure to the market. The
Fund may also utilize futures as part of its global tactical asset allocation
overlay strategy. Upon entering into a futures contract, the Fund is required to deposit with a
financial intermediary an amount ("initial margin") equal to a certain
percentage of the face value indicated in the futures contract. Subsequent
payments ("variation margin") are made or received by the Fund dependent
upon the daily fluctuations in the value of the underlying security and are
recorded for financial reporting purposes as unrealized gains or losses by
the Fund. When entering into a closing transaction, the Fund will realize a
gain or loss equal to the difference between the value of the futures
contract to sell and the futures contract to buy. Futures contracts are valued
at the most recent settlement price. Certain risks may arise upon entering into futures contracts, including the
risk that an illiquid secondary market will limit the Fund's ability to close out
a futures contract prior to the settlement date and that a change in the value
of a futures contract may not correlate exactly with the changes in the value
of the securities or currencies hedged. When utilizing futures contracts to
hedge, the Fund gives up the opportunity to profit from favorable price
movements in the hedged positions during the term of the contract. Risk of
loss may exceed amounts recognized on the Statement of Assets and
Liabilities. When-Issued/Delayed Delivery Securities. The Fund may purchase
securities with delivery or payment to occur at a later date beyond the
normal settlement period. At the time the Fund enters into a commitment to
purchase a security, the transaction is recorded and the value of the security
is reflected in the net asset value. The price of such security and the date
when the security will be delivered and paid for are fixed at the time the
transaction is negotiated. The value of the security may vary with market
fluctuations. No interest accrues to the Fund until payment takes place. At
the time the Fund enters into this type of transaction it is required to
segregate cash or other liquid assets at least equal to the amount of the
commitment. Certain risks may arise upon entering into when-issued or delayed delivery
securities from the potential inability of counterparties to meet the terms of
their contracts or if the issuer does not issue the securities due to political,
economic, or other factors. Additionally, losses may arise due to changes in
the value of the underlying securities. Taxes. The Fund's policy is to comply with the requirements of the Internal
Revenue Code, as amended, which are applicable to regulated investment
companies, and to distribute all of its taxable income to its shareholders. Additionally, based on the Fund's understanding of the tax rules and rates
related to income, gains and transactions for the foreign jurisdictions in
which it invests, the Fund will provide for foreign taxes, and where
appropriate, deferred foreign taxes. At March 31, 2009, the Fund had a net tax basis capital loss carryforward of
approximately $108,377,000, which may be applied against any realized net
taxable capital gains of each succeeding year until fully utilized or until
March 31, 2010 ($4,331,000), March 31, 2011 ($6,531,000), March 31, 2012
($1,658,000), March 31, 2013 ($255,000) and March 31, 2017 ($95,602,000),
the respective expiration dates, whichever occurs first, subject to certain
limitations under Sections 382-383 of the Internal Revenue Code. In addition, from November 1, 2008 through March 31, 2009, the Fund
incurred approximately $108,949,000 of net realized capital losses and
currency losses of approximately $246,000. As permitted by tax regulations,
the Fund intends to elect to defer these losses and treat them as arising in
the fiscal year ending March 31, 2010. The Fund has reviewed the tax positions for the open tax years as of March
31, 2009 and has determined that no provision for income tax is required in
the Fund's financial statements. The Fund's federal tax returns for the prior
three fiscal years remain subject to examination by the Internal Revenue
Service. Distribution of Income and Gains. Net investment income of the Fund is
declared and distributed to shareholders quarterly. Net realized gains from
investment transactions, in excess of available capital loss carryforwards,
would be taxable to the Fund if not distributed, and, therefore, will be
distributed to shareholders at least annually. The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from accounting principles generally accepted
in the United States of America. These differences primarily relate to
investments in foreign denominated investments, investments in passive
foreign investment companies, forward foreign currency exchange
contracts, recognition of certain foreign currency gains (losses) as ordinary
income (loss), futures contracts and certain securities sold at a loss. As a
result net investment income (loss) and net realized gain (loss) on
investment transactions for a reporting period may differ significantly from
distributions during such period. Accordingly, the Fund may periodically
make reclassifications among certain of its capital accounts without
impacting the net asset value of the Fund. At March 31, 2009, each Fund's components of distributable earnings
(accumulated losses) on a tax-basis were as follows: Capital loss carryforward
$       (108,377,000)Net unrealized appreciation (depreciation) on investments
$       (73,860,778) In addition, the tax character of distributions paid to shareholders by the
Fundissummarized as follows: Years Ended March 31,2009
2008Distributions from ordinary income*
$       14,401,959
$       70,993,246Distributions from long-term capital gains*
$       8,080,035
$       67,170,086Return of capital
$       6,008,659
$        * For tax purposes, short-term capital gains distributions and gains from forward foreign
currency exchange contracts are considered ordinary income distributions.  Real Estate Investment Trusts.The Fund periodically recharacterizes
distributions received from a Real Estate Investment Trust ("REIT")
investment based on information provided by the REIT into the following
categories: ordinary income, long-term and short-term capital gains, and
return of capital. If information is not available timely from a REIT, the
recharacterization will be estimated and a recharacterization will be made in
the following year when such information becomes available. Distributions
received from REITs in excess of income are recorded as either a reduction
of cost of investments or realized gains. The Fund distinguishes between
dividends on a tax basis and a financial reporting basis and only distributions
in excess of tax basis earnings and profits are reported in the financial
statements as a return of capital for tax reporting purposes. Expenses. Expenses of the Trust arising in connection with a specific fund
are allocated to that fund. Other Trust expenses which cannot be directly
attributed to a fund are apportioned among the funds in the Trust. Contingencies. In the normal course of business, the Fund may enter into
contracts with service providers that contain general indemnification
clauses. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the
Fund that have not yet been made. However, based on experience, the Fund
expects the risk of loss to be remote. Other. Investment transactions are accounted for on a trade date plus one
basis for daily net asset value calculations. However, for financial reporting
purposes, investment security transactions are reported on trade date.
Interest income is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date net of foreign withholding taxes. Certain
dividends from foreign securities may be recorded subsequent to the
ex-dividend date as soon as the Fund is informed of such dividends. Realized
gains and losses from investment transactions are recorded on an identified
cost basis. All premiums and discounts are amortized/accreted for financial
reporting purposes, with the exception of securities in default of principal. B. Purchases and Sales of Securities During the year ended March 31, 2009, purchases and sales of investment
securities (excluding short-term investments and US Treasury obligations)
aggregated $910,128,756 and $1,015,149,639, respectively. Purchases and
sales of US Treasury obligations aggregated $301,206,157 and
$293,685,807, respectively. C. Related Parties Management Agreement. Under the Investment Management Agreement
with Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG,
the Advisor directs the investments of the Fund in accordance with its
investment objectives, policies and restrictions. The Advisor determines the
securities, instruments and other contracts relating to investments to be
purchased, sold or entered into by the Fund or delegates such responsibility
to the Fund's subadvisor. Pursuant to a written contract, Aberdeen Asset Management Inc. ("AAMI"),
a direct, wholly owned subsidiary of Aberdeen Asset Management PLC,
serves as subadvisor to the Fund with respect to the fixed income portion of
the Fund's portfolio. AAMI is paid for its services by the Advisor from its fee
as investment advisor to the Fund. Under the Investment Management Agreement with the Advisor, the Fund
pays a monthly management fee based on the Fund's average daily net
assets, computed and accrued daily and payable monthly, at the following
annual rates: First $250 million of the Fund's average daily net assets
.600%Next $750 million of such net assets
.575%Over $1 billion of such net assets
.550% Effective October 1, 2008 through September 30, 2009, the Advisor has
contractually agreed to waive all or a portion of its management fee and
reimburse or pay certain operating expenses of the Fund (excluding certain
expenses such as extraordinary expenses, taxes, brokerage and interest) to
the extent necessary to maintain the total operating expenses of Class S at
1.00%. In addition, the Advisor has voluntarily agreed to waive a portion of its
management fee and reimburse or pay certain operating expenses of the
Fund (excluding certain expenses such as extraordinary expenses, taxes,
brokerage and interest) to the extent necessary to maintain the total
operating expenses of Institutional Class at 0.55%. This voluntary waiver or
reimbursement may be terminated at any time at the option of the Advisor. Accordingly, for the year ended March 31, 2009, the Advisor waived a
portion of its management fee pursuant to the Investment Management
Agreement aggregating $1,404,379 ($10,137 and $1,394,242 for Class S and
Institutional Class, respectively) and the amount charged aggregated
$1,767,553, which was equivalent to an annual effective rate of 0.33% of the
Fund's average daily net assets. In addition, for the year ended March 31, 2009, the Advisor reimbursed
$820,961 of sub-recordkeeping expenses for Institutional Class shares. Administration Fee. Pursuant to an Administrative Services Agreement,
DIMA provides most administrative services to the Fund. For all services
provided under the Administrative Services Agreement, the Fund pays the
Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's average
daily net assets, computed and accrued daily and payable monthly. For the
year ended March 31, 2009, the Advisor received an Administration Fee of
$540,771, of which $32,874 is unpaid. Service Provider Fees. DWS Investments Service Company ("DISC"), an
affiliate of the Advisor, is the transfer agent, dividend-paying agent and
shareholder service agent for the Fund. Pursuant to a sub-transfer agency
agreement between DISC and DST Systems, Inc. ("DST"), DISC has
delegated certain transfer agent, dividend-paying agent and shareholder
service agent functions to DST. DISC compensates DST out of the
shareholder servicing fee it receives from the Fund. For the year ended
March 31, 2009, the amounts charged to the Fund by DISC were as follows: Services to Shareholders
Total
Aggregated
Waived
Unpaid at
March 31, 2009Class S
$       1,966
$       
$       494Institutional Class
312
312
$    2,278
$    312
$    494 Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA
is compensated for providing typesetting and certain regulatory filing
services to the Fund. For the year ended March 31, 2009, the amount
charged to the Fund by DIMA included in the Statement of Operations
under "reports to shareholders" aggregated $46,347, of which $13,442 is
unpaid. Trustees' Fees and Expenses. The Fund paid each Trustee not affiliated with
the Advisor retainer fees plus specified amounts for various committee
services and for the Board Chairperson. In connection with the board consolidation on April 1, 2008, of the two DWS
Funds Boards of Trustees, certain Independent Board Members retired prior
to their normal retirement date, and received a one-time retirement benefit.
DIMA has agreed to reimburse the Funds for the cost of this benefit. During
the period ended March 31, 2009, the Fund paid its allocated portion of the
retirement benefit of $3,899 to the non-continuing Independent Board
Members, and the Fund was reimbursed by DIMA for this payment. Cash Management QP Trust. Pursuant to an Exemptive Order issued by the
SEC, the Fund may invest in the Cash Management QP Trust (the
"QP Trust") and other affiliated funds managed by the Advisor. The QP Trust
seeks to provide as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. The QP Trust does
not pay the Advisor a management fee for the affiliated funds' investments
in the QP Trust. D. Concentration of Ownership From time to time the Fund may have a concentration of several
shareholders holding a significant percentage of shares outstanding.
Investment activities of these shareholders could have a material impact on
the Fund. At March 31, 2009, one or more shareholders individually held greater than
10% of the outstanding shares of the Fund. These shareholders held 70%
and 23%, respectively, of the total shares outstanding of the Fund. E. Fee Reductions The Fund has entered into an arrangement with its custodian and transfer
agent whereby credits realized as a result of uninvested cash balances are
used to reduce a portion of the Fund's custodian expenses. During the year
ended March 31, 2009, the Fund's custodian fee was reduced by $2,820 and
$1,051, respectively, for custody and transfer agent credits earned. F. Line of Credit The Fund and other affiliated funds (the "Participants") share in a
$490 million revolving credit facility provided by a syndication of banks. The
Fund may borrow for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual
commitment fee which is allocated based on net assets, among each of the
Participants. Interest is calculated at the Federal Funds Rate plus
0.35 percent. The Fund may borrow up to a maximum of 33 percent of its
net assets under the agreement. G. Share Transactions The following table summarizes share and dollar activity in the Fund: Year Ended March 31, 2009
Year Ended March 31, 2008Shares
Dollars
Shares
DollarsShares soldClass S
46,789
$       384,077
53,768
$       583,399Institutional Class
6,611,924
48,237,743
8,558,886
98,433,063$    48,621,820

$    99,016,462Shares issued to shareholders in reinvestment of distributionsClass S
24,253
$       199,476
82,668
$       883,751Institutional Class
3,297,625
28,289,939
12,318,040
137,271,268$    28,489,415

$    138,155,019Shares redeemedClass S
(104,736)
$       (805,893)
(84,282)
$       (1,031,482)Institutional Class
(20,460,940)
(184,452,584)
(10,507,314)
(117,955,922)$    (185,258,477)

$    (118,987,404)Redemption fees
$    

$    89,752Net increase (decrease)Class S
(33,694)
$       (222,340)
52,154
$       525,420Institutional Class
(10,551,391)
(107,924,902)
10,369,612
117,748,409$    (108,147,242)

$    118,273,829 H. Payments by Affiliates The Advisor has agreed to fully reimburse the Fund for a loss incurred on a
trade executed incorrectly. The amount of the loss was less than 0.01% of
the Fund's average daily net assets, thus having no impact on the Fund's
total return. Report of Independent Registered
Public Accounting Firm To the Trustees of DWS Advisor Funds and Shareholders of DWS Lifecycle
Long Range Fund: In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of DWS Lifecycle Long Range Fund
(the "Fund") at March 31, 2009, and the results of its operations, the
changes in its net assets and the financial highlights for each of the periods
indicated therein, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements based on our audits. We conducted
our audits of these financial statements in accordance with the standards of
the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
March 31, 2009 by correspondence with the custodian and brokers, provide
a reasonable basis for our opinion. Boston, Massachusetts
May 27, 2009
PricewaterhouseCoopers LLP Tax Information(Unaudited) The Fund paid distributions of $0.13 per share from net long-term capital
gains during its year ended March 31, 2009, of which 100% represents 15%
rate gains. For corporate shareholders, 30% of the income dividends paid during the
Fund's fiscal year ended March 31, 2009, qualified for the dividends received
deduction. For federal income tax purposes, the Fund designates $8,460,000, or the
maximum amount allowable under tax law, as qualified dividend income. Please consult a tax advisor if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have specific
questions about your account, please call (800) 621-1048. Summary of Management Fee Evaluation by
Independent Fee Consultant October 24, 2008 Pursuant to an Order entered into by Deutsche Investment Management
Americas and affiliates (collectively, "DeAM") with the Attorney General of
New York, I, Thomas H. Mack, have been appointed the Independent Fee
Consultant for the DWS Funds (formerly the DWS Scudder Funds). My
duties include preparing an annual written evaluation of the management
fees DeAM charges the Funds, considering among other factors the
management fees charged by other mutual fund companies for like
services, management fees DeAM charges other clients for like services,
DeAM's costs of supplying services under the management agreements
and related profit margins, possible economies of scale if a Fund grows
larger, and the nature and quality of DeAM's services, including fund
performance. This report summarizes my evaluation for 2008, including my
qualifications, the evaluation process for each of the DWS Funds,
consideration of certain complex-level factors, and my conclusions. I served
in substantially the same capacity in 2007. Qualifications For more than 35 years I have served in various professional capacities
within the investment management business. I have held investment
analysis and advisory positions, including securities analyst, portfolio
strategist and director of investment policy with a large investment firm. I
have also performed business management functions, including business
development, financial management and marketing research and analysis. Since 1991, I have been an independent consultant within the asset
management industry. I have provided services to over 125 client
organizations, including investment managers, mutual fund boards, product
distributors and related organizations. Over the past ten years I have
completed a number of assignments for mutual fund boards, specifically
including assisting boards with management contract renewal. I hold a Master of Business Administration degree, with highest honors,
from Harvard University and Master of Science and Bachelor of Science
(highest honors) degrees from the University of California at Berkeley. I am
an independent director and audit committee financial expert for two
closed-end mutual funds, serve on the board of directors of a private market
research company, and have served in various leadership and financial
oversight capacities with non-profit organizations. Evaluation of Fees for each DWS Fund My work focused primarily on evaluating, fund-by-fund, the fees charged to
each of the 129 Fund portfolios in the DWS Fund family. For each Fund, I
considered each of the key factors mentioned above, as well as any other
relevant information. In doing so I worked closely with the Funds'
Independent Directors in their annual contract renewal process, as well as in
their approval of contracts for several new funds (documented separately). In evaluating each Fund's fees, I reviewed comprehensive materials provided
by or on behalf of DeAM, including expense information prepared by Lipper
Analytical, comparative performance information, profitability data, manager
histories, and other materials. I also accessed certain additional information
from the Lipper, Strategic Insight, and Morningstar databases and drew on
my industry knowledge and experience. To facilitate evaluating this considerable body of information, I prepared for
each Fund a document summarizing the key data elements in each area as
well as additional analytics discussed below. This made it possible to
consider each key data element in the context of the others. In the course of contract renewal, DeAM agreed to implement a number of
fee and expense adjustments requested by the Independent Directors
which will favorably impact future fees and expenses, and my evaluation
includes the effects of these changes. Fees and Expenses Compared with Other Funds The competitive fee and expense evaluation for each fund focused on two
primary comparisons: The Fund's contractual management fee (the advisory fee plus the
administration fee where applicable) compared with those of a group
of typically 12-15 funds in the same Lipper investment category
(e.g. Large Capitalization Growth) having similar distribution arrangements
and being of similar size. The Fund's total expenses compared with a broader universe of funds
from the same Lipper investment category and having similar distribution
arrangements. These two comparisons provide a view of not only the level of the fee
compared with funds of similar scale but also the total expense the Fund
bears for all the services it receives, in comparison with the investment
choices available in the Fund's investment category and distribution channel.
The principal figure-of-merit used in these comparisons was the subject
Fund's percentile ranking against peers. DeAM's Fees for Similar Services to Others DeAM provided management fee schedules for all of its US domiciled fund
and non-fund investment management accounts in any of the investment
categories where there is a DWS Fund. These similar products included the
other DWS Funds, non-fund pooled accounts, institutional accounts and
sub-advisory accounts. Using this information, I calculated for each Fund the
fee that would be charged to each similar product, at the subject Fund's
asset level. Evaluating information regarding non-fund products is difficult because there
are varying levels of services required for different types of accounts, with
mutual funds generally requiring considerably more regulatory and
administrative types of service as well as having more frequent cash flows
than other types of accounts. Also, while mutual fund fees for similar fund
products can be expected to be similar, there will be some differences due
to different pricing conditions in different distribution channels (e.g. retail
funds versus those used in variable insurance products), differences in
underlying investment processes and other factors. Costs and Profit Margins DeAM provided a detailed profitability analysis for each Fund. After making
some adjustments so that the presentation would be more comparable to
the available industry figures, I reviewed profit margins from investment
management alone, from investment management plus other fund services
(excluding distribution) provided to the Funds by DeAM (principally
shareholder services), and DeAM profits from all sources, including
distribution. A later section comments on overall profitability. Economies of Scale Economies of scale  an expected decline in management cost per dollar
of fund assets as fund assets grow  are very rarely quantified and
documented because of inherent difficulties in collecting and analyzing
relevant data. However, in virtually every investment category that I
reviewed, larger funds tend to have lower fees and lower total expenses
than smaller funds. To see how each DWS Fund compares with this industry
observation, I reviewed: The trend in Fund assets over the last five years and the accompanying
trend in total expenses. This shows if the Fund has grown and, if so,
whether total expense (management fees as well as other expenses)
have declined as a percent of assets. Whether the Fund has break-points in its management fee schedule, the
extent of the fee reduction built into the schedule and the asset levels
where the breaks take effect, and in the case of a sub-advised Fund how
the Fund's break-points compare with those of the sub-advisory fee
schedule. How the Fund's contractual fee schedule compares with trends in the
industry data. To accomplish this, I constructed a chart showing how
actual latest-fiscal-year contractual fees of the Fund and of other similar
funds relate to average fund assets, with the subject Fund's contractual
fee schedule superimposed. Quality of Service  Performance The quality-of-service evaluation focused on investment performance, which
is the principal result of the investment management service. Each Fund's
performance was reviewed over the past 1, 3, 5 and 10 years, as applicable,
and compared with that of other funds in the same investment category and
with a suitable market index. In addition, I calculated and reviewed risk-adjusted returns relative to an
index of similar mutual funds' returns and a suitable market index. The
risk-adjusted returns analysis provides a way of determining the extent to
which the Fund's return comparisons are mainly the product of investment
value-added (or lack thereof) or alternatively taking considerably more or less
risk than is typical in its investment category. I also received and considered the history of portfolio manager changes for
each Fund, as this provided an important context for evaluating the
performance results. Complex-Level Considerations While this evaluation was conducted mainly at the individual fund level,
there are some issues relating to the reasonableness of fees that can
alternatively be considered across the whole fund complex: I reviewed DeAM's profitability analysis for all DWS Funds, with a view
toward determining if the allocation procedures used were reasonable
and how profit levels compared with public data for other investment
managers. I considered whether DeAM and affiliates receive any significant ancillary
or "fall-out" benefits that should be considered in interpreting the direct
profitability results. These would be situations where serving as the
investment manager of the Funds is beneficial to another part of the
Deutsche Bank organization. I considered how aggregated DWS Fund expenses had varied over the
years, by asset class and in the context of trends in asset levels. I reviewed the structure of the DeAM organization, trends in staffing
levels, and information on compensation of investment management and
other professionals compared with industry data. Findings Based on the process and analysis discussed above, which included
reviewing a wide range of information from management and external data
sources and considering among other factors the fees DeAM charges other
clients, the fees charged by other fund managers, DeAM's costs and profits
associated with managing the Funds, economies of scale, possible fall-out
benefits, and the nature and quality of services provided, in my opinion the
management fees charged the DWS Funds are reasonable. llr_sigmack1Thomas H. Mack Summary of Administrative Fee Evaluation
by Independent Fee Consultant September 29, 2008 Pursuant to an Order entered into by Deutsche Asset Management (DeAM)
with the Attorney General of New York, I, Thomas H. Mack, have been
appointed the Independent Fee Consultant for the DWS Funds and have as
part of my duties evaluated the reasonableness of the proposed
management fees to be charged by DeAM to the DWS Funds, taking onto
account a proposal to pass through to the funds certain fund
accounting-related charges in connection with new regulatory requirements.
My evaluation considered the following: •   While the proposal would alter the services to be provided under the
Administration Agreement, which I consider to be part of fund
management under the Order, it is my opinion that the change in
services is slight and that the scope of prospective services under the
combination of the Advisory and Administration Agreements continues
to be comparable with those typically provided to competitive funds
under their management agreements. •   While the proposal would increase fund expenses, according to a pro
forma analysis performed by management, the prospective effect is less
than .01% for all but seven of the DeAM Funds' 438 active share
classes, and in all cases the effect is less than .03% and overall
expenses would remain reasonable in my opinion. Based on the foregoing considerations, in my opinion the fees and expenses
for all of the DWS Funds will remain reasonable if the Directors adopt this
proposal. llr_sigmack0Thomas H. Mack Board Members and Officers The following table presents certain information regarding the Board
Members and Officers of the Trust as of March 31, 2009. Each Board
Member's year of birth is set forth in parentheses after his or her name.
Unless otherwise noted, (i) each Board Member has engaged in the
principal occupation(s) noted in the table for at least the most recent five
years, although not necessarily in the same capacity; and (ii) the address of
each Independent Board Member is c/o Dawn-Marie Driscoll, PO Box
100176, Cape Coral, FL 33904. Except as otherwise noted below, the term
of office for each Board Member is until the election and qualification of a
successor, or until such Board Member sooner dies, resigns, is removed or
as otherwise provided in the governing documents of the fund. Because the
fund does not hold an annual meeting of shareholders, each Board Member
will hold office for an indeterminate period. The Board Members may also
serve in similar capacities with other funds in the fund complex. The Length
of Time Served represents the year in which the Board Member joined the
board of one or more DWS funds now overseen by the Board. Independent Board MembersName, Year of
Birth, Position
with the Fund
and Length of
Time Served1
Business Experience and Directorships During the
Past Five Years
Number of
Funds in
DWS Fund
Complex
OverseenPaul K. Freeman
(1950)Chairperson since
20092Board Member
since 1993
Consultant, World Bank/Inter-American Development Bank;
Governing Council of the Independent Directors Council
(governance, executive committees); formerly, Project Leader,
International Institute for Applied Systems Analysis
(1998-2001); Chief Executive Officer, The Eric Group, Inc.
(environmental insurance) (1986-1998)
133John W.
Ballantine (1946)Board Member
since 1999
Retired; formerly, Executive Vice President and Chief Risk
Management Officer, First Chicago NBD Corporation/The First
National Bank of Chicago (1996-1998); Executive Vice
President and Head of International Banking (1995-1996).
Directorships: Healthways, Inc. (provider of disease and care
management services); Portland General Electric (utility
company); Stockwell Capital Investments PLC (private equity).
Former Directorships: First Oak Brook Bancshares, Inc. and
Oak Brook Bank
133Henry P. Becton,
Jr. (1943)Board Member
since 1990
Vice Chair, WGBH Educational Foundation. Directorships:
Association of Public Television Stations; Becton Dickinson
and Company3 (medical technology company); Belo
Corporation3 (media company); Boston Museum of Science;
Public Radio International; PRX, The Public Radio Exchange;
The PBS Foundation. Former Directorships: American Public
Television; Concord Academy; New England Aquarium; Mass.
Corporation for Educational Telecommunications; Committee
for Economic Development; Public Broadcasting Service
133Dawn-Marie
Driscoll (1946)Board Member
since 1987
President, Driscoll Associates (consulting firm); Executive
Fellow, Center for Business Ethics, Bentley University;
formerly, Partner, Palmer & Dodge (1988-1990); Vice
President of Corporate Affairs and General Counsel, Filene's
(1978-1988). Directorships: Trustee of 20 open-end mutual
funds managed by Sun Capital Advisers, Inc. (since 2007);
Director of ICI Mutual Insurance Company (since 2007);
Advisory Board, Center for Business Ethics, Bentley
University; Trustee, Southwest Florida Community Foundation
(charitable organization). Former Directorships: Investment
Company Institute (audit, executive, nominating committees)
and Independent Directors Council (governance, executive
committees)
133Keith R. Fox
(1954)Board Member
since 1996
Managing General Partner, Exeter Capital Partners (a series of
private equity funds). Directorships: Progressive Holding
Corporation (kitchen goods importer and distributor); Natural
History, Inc. (magazine publisher); Box Top Media Inc.
(advertising); The Kennel Shop (retailer)
133Kenneth C.
Froewiss (1945)Board Member
since 2001
Clinical Professor of Finance, NYU Stern School of Business
(1997-present); Member, Finance Committee, Association for
Asian Studies (2002-present); Director, Mitsui Sumitomo
Insurance Group (US) (2004-present); prior thereto, Managing
Director, J.P. Morgan (investment banking firm) (until 1996)
133Richard J. Herring
(1946)Board Member
since 1990
Jacob Safra Professor of International Banking and Professor,
Finance Department, The Wharton School, University of
Pennsylvania (since July 1972); Co-Director, Wharton Financial
Institutions Center (since July 2000); Director, Japan Equity
Fund, Inc. (since September 2007), Thai Capital Fund, Inc.
(since September 2007), Singapore Fund, Inc. (since
September 2007). Formerly, Vice Dean and Director, Wharton
Undergraduate Division (July 1995-June 2000); Director,
Lauder Institute of International Management Studies (July
2000-June 2006)
133William
McClayton (1944)Board Member
since 2004
Managing Director, Diamond Management & Technology
Consultants, Inc. (global management consulting firm)
(2001-present); Directorship: Board of Managers, YMCA of
Metropolitan Chicago; formerly: Senior Partner, Arthur
Andersen LLP (accounting) (1966-2001); Trustee, Ravinia
Festival
133Rebecca W.
Rimel (1951)Board Member
since 1995
President and Chief Executive Officer, The Pew Charitable
Trusts (charitable organization) (1994 to present); Trustee,
Thomas Jefferson Foundation (charitable organization) (1994 to
present); Trustee, Executive Committee, Philadelphia Chamber
of Commerce (2001-2007); Trustee, Pro Publica
(2007-present) (charitable organization). Formerly, Executive
Vice President, The Glenmede Trust Company (investment
trust and wealth management) (1983-2004); Board Member,
Investor Education (charitable organization) (2004-2005);
Director, Viasys Health Care3 (January 2007-June 2007)
133William N. Searcy,
Jr. (1946)Board Member
since 1993
Private investor since October 2003; Trustee of 20 open-end
mutual funds managed by Sun Capital Advisers, Inc. (since
October 1998). Formerly, Pension & Savings Trust Officer,
Sprint Corporation3 (telecommunications) (November
1989-September 2003)
133Jean Gleason
Stromberg (1943)Board Member
since 1997
Retired. Formerly, Consultant (1997-2001); Director, US
Government Accountability Office (1996-1997); Partner,
Fulbright & Jaworski, L.L.P. (law firm) (1978-1996).
Directorships: The William and Flora Hewlett Foundation;
Business Leadership Council, Wellesley College. Former
Directorships: Service Source, Inc., Mutual Fund Directors
Forum (2002-2004), American Bar Retirement Association
(funding vehicle for retirement plans) (1987-1990 and
1994-1996)
133Robert H.
Wadsworth(1940)Board Member
since 1999
President, Robert H. Wadsworth & Associates, Inc. (consulting
firm) (1983 to present); Director, The Phoenix Boys Choir
Association
136 Interested Board MemberName, Year of
Birth, Position
with the Fund
and Length of
Time Served1
Business Experience and Directorships During the
Past Five Years
Number of
Funds in
Fund
Complex
OverseenAxel Schwarzer4(1958)Board Member
since 2006
Managing Director5, Deutsche Asset Management; Head of
Deutsche Asset Management Americas; CEO of DWS Investments;
formerly, board member of DWS Investments, Germany
(1999-2005); formerly, Head of Sales and Product Management for
the Retail and Private Banking Division of Deutsche Bank in
Germany (1997-1999); formerly, various strategic and operational
positions for Deutsche Bank Germany Retail and Private Banking
Division in the field of investment funds, tax driven instruments and
asset management for corporates (1989-1996)
133 Officers6Name, Year of Birth,
Position with the Fund and
Length of Time Served7
Principal Occupation(s) During Past 5 Years and Other
Directorships HeldMichael G. Clark8 (1965)President, 2006-present
Managing Director5, Deutsche Asset Management
(2006-present); President of DWS family of funds; Director, ICI
Mutual Insurance Company (since October 2007); formerly,
Director of Fund Board Relations (2004-2006) and Director of
Product Development (2000-2004), Merrill Lynch Investment
Managers; Senior Vice President Operations, Merrill Lynch
Asset Management (1999-2000)John Millette9 (1962)Vice President and Secretary,
1999-present
Director5, Deutsche Asset ManagementPaul H. Schubert8 (1963)Chief Financial Officer,
2004-presentTreasurer, 2005-present
Managing Director5, Deutsche Asset Management (since July
2004); formerly, Executive Director, Head of Mutual Fund
Services and Treasurer for UBS Family of Funds (1998-2004);
Vice President and Director of Mutual Fund Finance at UBS
Global Asset Management (1994-1998)Caroline Pearson9 (1962)Assistant Secretary,
1997-present
Managing Director5, Deutsche Asset ManagementRita Rubin10 (1970)Assistant Secretary,
2009-present
Vice President and Counsel, Deutsche Asset Management
(since October 2007); formerly, Vice President, Morgan
Stanley Investment Management (2004-2007); Attorney,
Shearman & Sterling LLP (2004); Vice President and Associate
General Counsel, UBS Global Asset Management (2001-2004)Paul Antosca9 (1957)Assistant Treasurer,
2007-present
Director5, Deutsche Asset Management (since 2006); Vice
President, The Manufacturers Life Insurance Company (U.S.A.)
(1990-2006)Jack Clark9 (1967)Assistant Treasurer,
2007-present
Director5, Deutsche Asset Management (since 2007);
formerly, Vice President, State Street Corporation (2002-2007)Diane Kenneally9(1966)Assistant Treasurer,
2007-present
Director5, Deutsche Asset ManagementJason Vazquez10 (1972)Anti-Money Laundering
Compliance Officer,
2007-present
Vice President, Deutsche Asset Management (since 2006);
formerly, AML Operations Manager for Bear Stearns
(2004-2006), Supervising Compliance Principal and Operations
Manager for AXA Financial (1999-2004)Robert Kloby10 (1962)Chief Compliance Officer,
2006-present
Managing Director5, Deutsche Asset Management
(2004-present); formerly, Chief Compliance Officer/Chief Risk
Officer, Robeco USA (2000-2004); Vice President, The
Prudential Insurance Company of America (1988-2000);
E.F. Hutton and Company (1984-1988)J. Christopher Jackson10
(1951)Chief Legal Officer,
2006-present
Director5, Deutsche Asset Management (2006-present);
formerly, Director, Senior Vice President, General Counsel and
Assistant Secretary, Hansberger Global Investors, Inc.
(1996-2006); Director, National Society of Compliance
Professionals (2002-2005) (2006-2009) 1 The length of time served represents the year in which the Board Member joined the board
of one or more DWS funds currently overseen by the Board.  2 Mr. Freeman assumed the Chairperson role as of January 1, 2009. Prior to that Ms. Driscoll
served as Chairperson of certain DWS funds since 2004.  3 A publicly held company with securities registered pursuant to Section 12 of the Securities
Exchange Act of 1934.  4 The mailing address of Axel Schwarzer is c/o Deutsche Investment Management Americas
Inc., 345 Park Avenue, New York, New York 10154. Mr. Schwarzer is an interested Board
Member by virtue of his positions with Deutsche Asset Management. As an interested
person, Mr. Schwarzer receives no compensation from the fund.  5 Executive title, not a board directorship.  6 As a result of their respective positions held with the Advisor, these individuals are
considered "interested persons" of the Advisor within the meaning of the 1940 Act.
Interested persons receive no compensation from the fund.  7 The length of time served represents the year in which the officer was first elected in such
capacity for one or more DWS funds.  8 Address: 345 Park Avenue, New York, New York 10154.  9 Address: One Beacon Street, Boston, MA 02108.  10 Address: 280 Park Avenue, New York, New York 10017.  The fund's Statement of Additional Information ("SAI") includes additional information about
the Board Members. The SAI is available, without charge, upon request. If you would like to
request a copy of the SAI, you may do so by calling the following toll-free number:
(800) 621-1048. Account Management Resources For More
Information
The automated telephone system allows you to access personalized
account information and obtain information on other DWS funds using
either your voice or your telephone keypad. Certain account types
within Class S also has the ability to purchase, exchange or redeem
shares using this system.For more information, contact your financial advisor. You may
also access our automated telephone system or speak with a
DWS Investments representative by calling the appropriate
number below:For shareholders of Institutional Class:
(800) 621-1048For shareholders of Class S:
(800) 728-3337Web Site
www.dws-investments.com
View your account transactions and balances, trade shares, monitor
your asset allocation, and change your address, 24 hours a day.Obtain prospectuses and applications,blank forms, interactive
worksheets, news about DWS funds, subscription to fund updates by
e-mail, retirement planning information, and more.Written
Correspondence
DWS Investments
PO Box 219151
Kansas City, MO 64121-9151Proxy Voting
The fund's policies and procedures for voting proxies for portfolio
securities and information about how the fund voted proxies related to
its portfolio securities during the 12-month period endedJune 30are
available on our Web site  www.dws-investments.com (click on
"proxy voting"at the bottom of the page)  or on the SEC's Web site
 www.sec.gov. To obtain a written copy of the fund's policies and
procedures without charge, upon request, call us toll free at (800)
621-1048.Principal
Underwriter
If you have questions, comments or complaints, contact:DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808(800) 621-1148 Class S
Institutional ClassNasdaq Symbol
BTILX
BTAMXCUSIP Number
23339E  517
23339E  525Fund Number
812
567 Notes Notes Notes llr_backcover0







ITEM 2.
        CODE OF ETHICSAs of the end of the period, March 31, 2009, DWS Lifecycle Long Range Fund has a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer.

There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.

A copy of the code of ethics is filed as an exhibit to this Form N-CSR.ITEM 3.
        AUDIT COMMITTEE FINANCIAL EXPERTThe Funds audit committee is comprised solely of trustees who are independent (as such term has been defined by the Securities and Exchange Commission (SEC) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the Regulations)). The Funds Board of Trustees has determined that there are several audit committee financial experts (as such term has been defined by the Regulations) serving on the Funds audit committee including Mr. William McClayton, the chair of the Funds audit committee.  The SEC has stated that an audit committee financial expert is not an expert for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an audit committee
financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.ITEM 4.
        PRINCIPAL ACCOUNTANT FEES AND SERVICES


DWS LIFECYCLE LONG RANGE FUND

FORM N-CSR DISCLOSURE RE: AUDIT FEES

The following table shows the amount of fees that PricewaterhouseCoopers, LLP (PWC), the Funds independent registered public accounting firm, billed to the Fund during the Funds last two fiscal years.  The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.

Services that the Funds Independent Registered Public Accounting Firm Billed to the Fund

Fiscal YearEndedMarch 31,
        Audit Fees Billed to Fund
        Audit-RelatedFees Billed to Fund
        Tax Fees Billed to Fund
        AllOther Fees Billed to Fund2009
        $77,525
        $0
        $0
        $02008
        $68,025
        $0
        $0
        $0




Services that the Funds Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers

The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (DeIM or the Adviser), and any entity controlling, controlled by or under common control with DeIM (Control Affiliate) that provides ongoing services to the Fund (Affiliated Fund Service Provider), for engagements directly related to the Funds operations and financial reporting, during the Funds last two fiscal years.





Fiscal YearMarch 31,
        Audit-RelatedFees Billedto Adviser and Affiliated Fund Service Providers
        Tax Fees Billed to Adviser and Affiliated Fund Service Providers
        AllOther Fees Billed to Adviser and Affiliated Fund Service Providers2009
        $0
        $19,000
        $02008
        $21,500
        $25,000
        $0




The Audit-Related Fees were billed for services in connection with the agreed-upon procedures related to fund mergers and the above Tax Fees were billed in connection with tax consultation and agreed-upon procedures.

Non-Audit Services

The following table shows the amount of fees that PWC billed during the Funds last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Funds operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Funds last fiscal year to the Adviser and any Affiliated Fund Service Provider.  The Committee considered this information in evaluating PWCs independence.



Fiscal YearEndedMarch 31,
        TotalNon-Audit Fees Billed to Fund
(A)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund)
(B)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements)
(C)
        Total of (A), (B)and (C)2009
        $0
        $19,000
        $0
        $19,0002008
        $0
        $25,000
        $600,000
        $625,000






All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.



Audit Committee Pre-Approval Policies and Procedures.  Generally, each Funds Audit Committee must pre approve (i) all services to be performed for a Fund by a Funds Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Funds Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Funds Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000.  All such delegated pre approvals shall be presented to each Funds Audit Committee no later than the next Audit Committee meeting.



There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.



According to the registrants principal Independent Registered Public Accounting Firm, all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.



***



PwC advised the Fund's Audit Committee that PwC has identified two matters that it determined to be inconsistent with the SEC's auditor independence rules.  In the first instance, an employee of PwC had power of attorney over an account which included DWS funds.  The employee did not perform any audit services for the DWS Funds, but did work on a non audit project for Deutsche Bank AG.  In the second instance, an employee of PwC served as a nominee shareholder (effectively equivalent to a Trustee) of various companies/trusts since 2001. Some of these companies held shares of Aberdeen, a sub advisor to certain DWS Funds, and of certain funds sponsored by subsidiaries of Deutsche Bank AG.  The trustee relationship has ceased.  PwC informed the Audit Committee that these matters could have constituted an investment in an affiliate of an audit client in violation of the Rule 2-01(c)(1) of Regulation S-X.  PwC
advised the Audit Committee that PwC believes its independence had not been impacted as it related to the audits of the Fund.  In reaching this conclusion, PwC noted that during the time of its audit, the engagement team was not aware of the investment and that PwC does not believe these situations affected PwC's ability to act objectively and impartially and to issue a report on financial statements as the funds' independent auditor.



ITEM 5.
        AUDIT COMMITTEE OF LISTED REGISTRANTSNot ApplicableITEM 6.
        SCHEDULE OF INVESTMENTSNot ApplicableITEM 7.
        DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.




ITEM 8.
        PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.




ITEM 9.
        PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERSNot Applicable.




ITEM 10.
        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS








The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Chairman of the Board, P.O. Box 100176, Cape Coral, FL 33910.ITEM 11.
        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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal controls over financial reporting.ITEM 12.
        EXHIBITS(a)(1)     Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.(a)(2)     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.(b)         Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.











Form N-CSR Item F



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 Lifecycle Long Range Fund, a series of DWS Advisor Funds




By:
        /s/Michael G. Clark


Michael G. Clark


President



Date:
        May 29, 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 Lifecycle Long Range Fund, a series of DWS Advisor Funds




By:
        /s/Michael G. Clark


Michael G. Clark


President



Date:
        May 29, 2009






By:
        /s/Paul Schubert


Paul Schubert


Chief Financial Officer and Treasurer



Date:                                        May 29, 2009