UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANY**

**_______________________________**

Investment Company Act file number  811-04760

DWS Advisor Funds

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

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

Date of fiscal year end:  10/31

Date of reporting period: 1/31/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of January 31, 2009  (Unaudited)** |
|----------------------|-----------------------------------------|

 

 

**DWS Core Fixed Income Fund**

 

 

|   | **Principal****Amount ($)** |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **Value ($)** |
|--------|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|        |
|   | **Corporate Bonds 28.0%**   |  
**Consumer Discretionary 3.5%**

 
British Sky Broadcasting Group PLC, 144A, 9.5%, 11/15/2018  

 

 

6,000,000 

 

6,057,564 

Comcast Cable Communications Holdings, Inc., 9.455%, 11/15/2022  

 

 

843,000 

 

952,612 

Comcast Cable Holdings LLC:

 
 

7.875%, 8/1/2013  

 

 

1,940,000 

 

1,982,785 

 

10.125%, 4/15/2022  

 

 

1,980,000 

 

2,315,117 

Comcast Corp., 6.5%, 1/15/2017  

 

 

885,000 

 

896,223 

Historic TW, Inc., 9.125%, 1/15/2013  

 

 

4,080,000 

 

4,345,147 

Omnicom Group, Inc., Zero Coupon, 7/31/2032  

 

 

1,979,000 

 

1,897,366 

TCI Communications, Inc., 8.75%, 8/1/2015  

 

 

4,430,000 

 

4,765,705 

Time Warner Cable, Inc.:

 
 

 

 

 

6.75%, 7/1/2018  

 

 

4,075,000 

 

3,979,592 

 

8.75%, 2/14/2019  

 

 

6,500,000 

 

7,238,153 

Time Warner, Inc.:

 
 

5.5%, 11/15/2011  

 

 

1,581,000 

 

1,542,994 

 

7.625%, 4/15/2031  

 

 

3,200,000 

 

3,082,781 

Viacom, Inc.:

 
 

5.75%, 4/30/2011  

 

 

3,095,000 

 

2,960,185 

 

6.25%, 4/30/2016  

 

 

3,311,000 

 

2,826,736 

 

6.875%, 4/30/2036  

 

 

2,777,000 

 

2,043,692 

 

**46,886,652**

**Consumer Staples 1.8%**

 
Bottling Group LLC, 6.95%, 3/15/2014  

 

 

3,930,000 

 

4,498,250 

CVS Caremark Corp.:

 
 

6.25%, 6/1/2027  

 

 

2,663,000 

 

2,502,594 

 

6.302%, 6/1/2037  

 

 

7,442,000 

 

4,055,890 

Delhaize America, Inc., 9.0%, 4/15/2031  

 

 

2,125,000 

 

2,433,733 

Kroger Co.:

 
 

6.8%, 4/1/2011  

 

 

260,000 

 

274,766 

 

7.0%, 5/1/2018  

 

 

10,000 

 

10,562 

 

7.5%, 1/15/2014  

 

 

3,600,000 

 

4,013,352 

Miller Brewing Co., 144A, 5.5%, 8/15/2013  

 

 

5,930,000 

 

5,609,282 

 

**23,398,429**

**Energy 2.9%**

 
ConocoPhillips, 5.75%, 2/1/2019  

 

 

9,030,000 

 

9,045,351 

DCP Midstream LLC, 144A, 9.7%, 12/1/2013  

 

 

7,235,000 

 

7,481,439 

Enterprise Products Operating LLC, 5.65%, 4/1/2013  

 

 

7,430,000 

 

7,095,813 

EOG Resources, Inc., 6.875%, 10/1/2018  

 

 

4,190,000 

 

4,473,089 

Hess Corp., 8.125%, 2/15/2019  

 

 

5,920,000 

 

6,048,310 

TransCanada PipeLines Ltd.:

 
 

6.2%, 10/15/2037  

 

 

2,550,000 

 

2,115,263 

 

6.35%, 5/15/2067  

 

 

4,900,000 

 

2,788,497 

 

**39,047,762**

**Financials 9.9%**

 
AES El Salvador Trust, 144A, 6.75%, 2/1/2016  

 

 

3,210,000 

 

2,025,574 

Bank of America NA, 5.3%, 3/15/2017  

 

 

2,260,000 

 

1,983,918 

Bank of New York Mellon Corp., Series G, 4.95%, 11/1/2012  

 

 

2,410,000 

 

2,454,050 

Barrick North America Finance LLC, 7.5%, 9/15/2038  

 

 

5,810,000 

 

5,165,317 

Citigroup, Inc., 6.5%, 8/19/2013  

 

 

3,270,000 

 

3,124,514 

Corp. Andina de Fomento:

 
 

5.75%, 1/12/2017  

 

 

2,300,000 

 

1,858,094 

 

6.875%, 3/15/2012  

 

 

1,300,000 

 

1,249,498 

Discover Financial Services, 2.629% **, 6/11/2010  

 

 

3,845,000 

 

3,288,802 

Erac USA Finance Co.:

 
 

144A, 5.8%, 10/15/2012  

 

 

3,435,000 

 

2,565,055 

 

144A, 7.0%, 10/15/2037  

 

 

4,641,000 

 

2,741,365 

Farmers Insurance Exchange, 144A, 8.625%, 5/1/2024  

 

 

3,510,000 

 

2,522,626 

FPL Group Capital, Inc.:

 
 

6.65%, 6/15/2067  

 

 

5,955,000 

 

4,228,050 

 

Series D, 7.3%, 9/1/2067  

 

 

1,125,000 

 

832,500 

 

7.875%, 12/15/2015

 

 

2,635,000

 

3,037,444

Glen Meadow Pass-Through Trust, 144A, 6.505%, 2/12/2067  

 

 

2,425,000 

 

1,058,879 

HBOS PLC, 144A, 6.75%, 5/21/2018  

 

 

2,985,000 

 

2,636,919 

International Lease Finance Corp.:

 
 

6.375%, 3/25/2013  

 

 

2,395,000 

 

1,757,046 

 

Series R, 6.625%, 11/15/2013  

 

 

630,000 

 

466,896 

 

 

 

JPMorgan Chase & Co., 5.125%, 9/15/2014  

 

 

4,080,000 

 

3,930,962 

Merrill Lynch & Co., Inc.:

 
 

Series C, 5.45%, 7/15/2014  

 

 

445,000 

 

411,495 

 

6.22%, 9/15/2026  

 

 

1,000,000 

 

825,919 

Metropolitan Life Global Funding I, 144A, 5.125%, 4/10/2013  

 

 

4,670,000 

 

4,469,624 

Morgan Stanley, Series F, 6.0%, 4/28/2015  

 

 

9,110,000 

 

8,256,211 

National Australia Bank Ltd., 144A, 5.35%, 6/12/2013  

 

 

3,375,000 

 

3,198,680 

National City Corp., 4.0%, 2/1/2011  

 

 

4,015,000 

 

3,688,781 

National Rural Utilities Cooperative Finance Corp., Series C, 8.0%, 3/1/2032  

 

 

4,100,000 

 

4,087,614 

NLV Financial Corp., 144A, 6.5%, 3/15/2035  

 

 

985,000 

 

628,209 

PartnerRe Finance II, 6.44%, 12/1/2066  

 

 

4,649,000 

 

1,807,592 

PPL Capital Funding, Inc., Series A, 6.7%, 3/30/2067  

 

 

6,825,000 

 

3,753,750 

Reed Elsevier Capital, Inc., 8.625%, 1/15/2019  

 

 

5,665,000 

 

5,681,400 

Rio Tinto Finance (USA) Ltd.:

 
 

5.875%, 7/15/2013

 

 

5,000,000

 

4,398,615

 

6.5%, 7/15/2018  

 

 

3,320,000 

 

2,787,107 

 

7.125%, 7/15/2028  

 

 

630,000 

 

503,124 

Shell International Finance BV, 6.375%, 12/15/2038  

 

 

5,565,000 

 

5,814,590 

StanCorp Financial Group, Inc., 6.9%, 5/29/2067  

 

 

3,840,000 

 

1,864,355 

Standard Chartered Bank, 144A, 6.4%, 9/26/2017  

 

 

2,400,000 

 

1,975,690 

Symetra Financial Corp., 144A, 8.3%, 10/15/2037  

 

 

2,130,000 

 

1,075,650 

Telecom Italia Capital SA, 5.25%, 11/15/2013  

 

 

3,671,000 

 

3,301,253 

The Goldman Sachs Group, Inc., 7.5%, 2/15/2019  

 

 

6,430,000 

 

6,353,329 

UDR, Inc., Series E, (REIT), 3.9%, 3/15/2010  

 

 

1,370,000 

 

1,207,065 

US Bancorp.:

 
 

Zero Coupon, 9/20/2036  

 

 

315,000 

 

267,347 

 

0.704% **, 12/11/2035  

 

 

2,415,000 

 

2,179,537 

Verizon Wireless Capital LLC:

 
 

144A, 5.55%, 2/1/2014

 

 

6,640,000

 

6,597,305

 

144A, 7.375%, 11/15/2013  

 

 

5,210,000 

 

5,635,136 

 

144A, 8.5%, 11/15/2018  

 

 

3,625,000 

 

4,158,999 

Xstrata Finance Canada Ltd., 144A, 5.8%, 11/15/2016  

 

 

724,000 

 

508,207 

 

**132,364,093**

**Health Care 1.3%**

 
Medco Health Solutions, Inc.:

 
 

6.125%, 3/15/2013  

 

 

6,225,000 

 

5,976,959 

 

7.125%, 3/15/2018  

 

 

7,460,000 

 

7,210,165 

Quest Diagnostics, Inc., 6.95%, 7/1/2037  

 

 

5,130,000 

 

4,267,785 

 

**17,454,909**

**Industrials 0.9%**

 
America West Airlines LLC, Series 99-1, 7.93%, 1/2/2019  

 

 

1,549,809 

 

1,146,859 

Burlington Northern Santa Fe Corp., 7.0%, 2/1/2014  

 

 

3,730,000 

 

3,952,927 

United Technologies Corp., 5.4%, 5/1/2035  

 

 

6,715,000 

 

6,193,473 

 

**11,293,259**

**Information Technology 0.5%**

 
Tyco Electronics Group SA, 6.0%, 10/1/2012  

 

 

2,715,000 

 

2,513,639 

Xerox Corp., 6.35%, 5/15/2018  

 

 

4,435,000 

 

3,669,963 

 

**6,183,602**

**Materials 0.6%**

 
Sappi Papier Holding AG, 144A, 6.75%, 6/15/2012  

 

 

2,438,000 

 

1,551,355 

Xstrata Canada Corp.:

 
 

6.0%, 10/15/2015  

 

 

2,075,000 

 

1,524,492 

 

 

 

 

7.25%, 7/15/2012  

 

 

6,450,000 

 

5,037,734 

 

**8,113,581**

**Telecommunication Services 2.1%**

 
AT&T, Inc.:

 
 

5.8%, 2/15/2019  

 

 

7,000,000 

 

7,000,350 

 

6.55%, 2/15/2039  

 

 

5,570,000 

 

5,549,502 

 

6.7%, 11/15/2013  

 

 

5,695,000 

 

6,148,778 

British Telecommunications PLC, 8.625%, 12/15/2010  

 

 

4,095,000 

 

4,299,517 

Qwest Corp., 7.625%, 6/15/2015  

 

 

5,334,000 

 

4,827,270 

 

**27,825,417**

**Utilities 4.5%**

 
Arizona Public Service Co., 6.875%, 8/1/2036  

 

 

4,195,000 

 

3,085,863 

Baltimore Gas & Electric Co., 6.35%, 10/1/2036  

 

 

2,286,000 

 

1,730,923 

Commonwealth Edison Co., 6.95%, 7/15/2018  

 

 

169,000 

 

153,798 

Consolidated Natural Gas Co., 6.0%, 10/15/2010  

 

 

1,865,000 

 

1,899,262 

Delmarva Power & Light Co., 6.4%, 12/1/2013  

 

 

2,950,000 

 

3,091,157 

Dominion Resources, Inc.:

 
 

Series 06-B, 6.3%, 9/30/2066  

 

 

2,830,000 

 

1,499,900 

 

7.5%, 6/30/2066  

 

 

5,575,000 

 

3,233,500 

Electricite de France, 144A, 6.95%, 1/26/2039  

 

 

6,270,000 

 

6,464,753 

Energy East Corp.:

 
 

6.75%, 6/15/2012  

 

 

5,070,000 

 

5,030,221 

 

6.75%, 9/15/2033  

 

 

970,000 

 

726,528 

 

6.75%, 7/15/2036  

 

 

2,615,000 

 

1,941,237 

Entergy Texas, Inc., 7.125%, 2/1/2019  

 

 

2,425,000 

 

2,363,560 

Integrys Energy Group, Inc., 6.11%, 12/1/2066  

 

 

4,520,000 

 

2,260,000 

Jersey Central Power & Light Co., 7.35%, 2/1/2019  

 

 

3,825,000 

 

3,935,531 

Oncor Electric Delivery Co., 6.375%, 5/1/2012  

 

 

3,700,000 

 

3,684,941 

Pacific Gas & Electric Co., 6.25%, 12/1/2013  

 

 

6,035,000 

 

6,457,794 

PPL Energy Supply LLC, 6.2%, 5/15/2016  

 

 

1,670,000 

 

1,444,421 

Puget Sound Energy, Inc., 6.75%, 1/15/2016  

 

 

6,575,000 

 

6,450,489 

Texas Competitive Electric Holdings Co., LLC, 7.46%, 1/1/2015  

 

 

1,218,039 

 

970,436 

Wisconsin Energy Corp., Series A, 6.25%, 5/15/2067  

 

 

8,015,000 

 

4,488,400 

 

**60,912,714**

**Total Corporate Bonds** (Cost $414,194,990)

 

**373,480,418**

 

**Asset-Backed 2.2%**

 
**Automobile Receivables 1.4%**

 
AmeriCredit Prime Automobile Receivables Trust, "A3", Series 2007-2M, 5.22%, 6/8/2012  

 

 

15,650,000 

 

13,956,589 

Household Automotive Trust, "A4", Series 2006-1, 5.52%, 3/18/2013  

 

 

4,450,000 

 

4,137,247 

 

**18,093,836**

**Home Equity Loans 0.8%**

 
Chase Funding Mortgage Loan Asset-Backed Certificates, "2A2", Series 2003-4, 0.989% **, 5/25/2033  

 

 

3,183,580 

 

2,457,440 

Countrywide Asset-Backed Certificates:

 
 

"A6", Series 2006-15, 5.826%, 10/25/2046  

 

 

2,505,000 

 

1,241,070 

 

"1AF6", Series 2006-11, 6.15%, 9/25/2046  

 

 

6,555,000 

 

2,931,397 

First Franklin Mortgage Loan Asset-Backed Certificates, "A3", Series 2006-FF15, 0.439% **, 11/25/2036  

 

 

2,333,214 

 

2,120,796 

Renaissance Home Equity Loan Trust, "AF3", Series 2005-2, 4.499%, 8/25/2035  

 

 

2,835,172 

 

2,552,054 

Securitized Asset-Backed NIM Trust, "NIM", Series 2005-FR4, 144A, 6.0%, 1/25/2036 * 

 

 

487,805 

 

49 

 

**11,302,806**

 

 

 

**Manufactured Housing Receivables 0.0%**

 
Green Tree Financial Corp., "A4", Series 1996-2, 7.2%, 4/15/2026  

 

 

460,156 

 

**423,012**

**Total Asset-Backed** (Cost $38,437,336)

 

**29,819,654**

 

**Mortgage-Backed Securities Pass-Throughs 24.2%**

 
Federal Home Loan Mortgage Corp.:

 
 

3.5%, 8/1/2035  

 

 

6,295,976 

 

5,806,760 

 

5.0%, 4/1/2035  

 

 

4,042,654 

 

4,113,242 

 

5.157% **, 9/1/2037  

 

 

7,740,656 

 

7,898,276 

 

5.296% **, 6/1/2035  

 

 

9,358,805 

 

9,642,134 

 

5.5%, with various maturities from 10/1/2023 until 1/1/2034 

 

 

5,630,825 

 

5,773,321 

 

5.518% **, 2/1/2038  

 

 

7,999,049 

 

8,088,322 

 

6.5%, with various maturities from 1/1/2035 until 8/1/2038 

 

 

18,458,560 

 

19,310,099 

Federal National Mortgage Association:

 
 

4.5%, with various maturities from 8/1/2033 until 11/1/2034 (a) 

 

 

39,262,376 

 

39,520,229 

 

5.0%, with various maturities from 8/1/2020 until 7/1/2037 

 

 

76,130,032 

 

77,689,233 

 

5.5%, with various maturities from 2/1/2024 until 4/1/2036 

 

 

82,000,360 

 

84,176,968 

 

6.0%, with various maturities from 10/1/2022 until 4/1/2024 

 

 

9,010,936 

 

9,333,706 

 

6.5%, with various maturities from 5/1/2023 until 4/1/2037 (a)

 

 

45,270,258 

 

47,208,517 

Government National Mortgage Association, 5.5%, 1/15/2039  

 

 

4,742,000 

 

4,865,737 

**Total Mortgage-Backed Securities Pass-Throughs** (Cost $314,433,854)

 

**323,426,544**

 

**Commercial and Non-Agency Mortgage-Backed Securities 21.7%**

 
American Home Mortgage Investment Trust, "5A3", Series 2005-2, 5.077%, 9/25/2035  

 

 

1,295,811 

 

1,076,662 

Banc of America Commercial Mortgage, Inc.:

 
 

"A4", Series 2007-1, 5.451%, 1/15/2049  

 

 

5,570,000 

 

3,839,057 

 

"A4", Series 2007-3, 5.658% **, 6/10/2049  

 

 

11,620,000 

 

7,100,929 

 

"A4", Series 2007-2, 5.688% **, 4/10/2049  

 

 

5,225,000 

 

3,612,049 

 

"ASB", Series 2007-4, 5.706%, 2/10/2051  

 

 

5,900,000 

 

4,300,744 

 

"AM", Series 2007-4, 5.812% **, 2/10/2051  

 

 

2,290,000 

 

1,029,386 

Bear Stearns Adjustable Rate Mortgage Trust:

 
 

"A1", Series 2006-1, 4.625% **, 2/25/2036  

 

 

8,859,255 

 

6,079,777 

 

"22A1", Series 2007-4, 5.993% **, 6/25/2047  

 

 

11,028,807 

 

7,127,672 

Bear Stearns Commercial Mortgage Securities, Inc.:

 
 

"AAB", Series 2007-PW15, 5.315%, 2/11/2044  

 

 

7,175,000 

 

5,187,119 

 

"AAB", Series 2007-PW16, 5.712% **, 6/11/2040  

 

 

7,775,000 

 

5,688,503 

Chase Mortgage Finance Corp., "A1", Series 2003-S2, 5.0%, 3/25/2018  

 

 

7,611 

 

7,483 

Citigroup Mortgage Loan Trust, Inc.:

 
 

"1A2", Series 2006-AR2, 5.537% **, 3/25/2036  

 

 

7,449,850 

 

4,298,754 

 

"1A4A", Series 2006-AR7, 5.775% **, 11/25/2036  

 

 

7,696,538 

 

5,398,750 

 

"2A1A", Series 2007-AR8, 5.912% **, 7/25/2037  

 

 

7,278,481 

 

4,533,158 

 

"1CB2", Series 2004-NCM2, 6.75%, 8/25/2034  

 

 

2,552,456 

 

2,170,386 

Citigroup/Deutsche Bank Commercial Mortgage Trust:

 
 

"A2B", Series 2007-CD4, 5.205%, 12/11/2049  

 

 

10,830,000 

 

8,389,858 

 

"A4", Series 2007-CD4, 5.322%, 12/11/2049  

 

 

3,504,000 

 

2,219,362 

Countrywide Alternative Loan Trust:

 
 

"A2", Series 2003-21T1, 5.25%, 12/25/2033  

 

 

2,866,299 

 

2,483,103 

 

"A4", Series 2004-14T2, 5.5%, 8/25/2034  

 

 

2,390,118 

 

2,202,133 

 

"A6", Series 2004-14T2, 5.5%, 8/25/2034  

 

 

2,814,135 

 

2,585,544 

 

"7A1", Series 2004-J2, 6.0%, 12/25/2033  

 

 

953 

 

792 

 

"1A1", Series 2004-J1, 6.0%, 2/25/2034  

 

 

464,832 

 

386,101 

Countrywide Home Loans, "A1", Series 2005-29, 5.75%, 12/25/2035  

 

 

6,156,728 

 

4,498,259 

Credit Suisse Mortgage Capital Certificates:

 
 

"4A15", Series 2007-3, 5.5%, 4/25/2037  

 

 

5,973,757 

 

4,845,458 

 

"AAB", Series 2007-C4, 5.81% **, 9/15/2039  

 

 

7,245,000 

 

5,116,418 

CS First Boston Mortgage Securities Corp., "1A11", Series 2004-4, 5.5%, 8/25/2034  

 

 

2,770,054 

 

2,467,514 

First Horizon Mortgage Pass-Through Trust:

 
 

 

 

 

"2A1", Series 2005-AR2, 5.122% **, 6/25/2035  

 

 

4,629,187 

 

3,489,450 

 

"1A2", Series 2006-AR4, 5.478% **, 1/25/2037  

 

 

5,549,849 

 

3,515,218 

GMAC Mortgage Corp. Loan Trust, "4A1", Series 2005-AR6, 5.467% **, 11/19/2035  

 

 

5,370,943 

 

3,783,420 

Greenwich Capital Commercial Funding Corp.:

 
 

"A2", Series 2007-GG9, 5.381%, 3/10/2039  

 

 

14,825,000 

 

11,443,710 

 

"AM", Series 2007-GG9, 5.475%, 3/10/2039  

 

 

761,000 

 

357,852 

GS Mortgage Securities Corp.:

 
 

"1A1", Series 2008-2R, 144A, 7.5%, 9/25/2036  

 

 

8,713,691 

 

6,012,447 

 

"2A1", Series 2008-2R, 144A, 7.5%, 10/25/2036  

 

 

2,179,541 

 

1,503,884 

GS Mortgage Securities Corp. II:

 
 

"AAB", Series 2007-GG10, 5.799% **, 8/10/2045  

 

 

3,139,000 

 

2,194,658 

 

"AM", Series 2007-GG10, 5.799% **, 8/10/2045  

 

 

18,443,000 

 

6,829,908 

GSR Mortgage Loan Trust, "2A4", Series 2006-AR1, 5.18% **, 1/25/2036  

 

 

9,450,000 

 

3,861,375 

Indymac Index Mortgage Loan Trust, "3A1", Series 2006-AR33, 5.766% **, 1/25/2037  

 

 

5,033,248 

 

3,614,995 

JPMorgan Chase Commercial Mortgage Securities Corp.:

 
 

"ASB", Series 2007-CB19, 5.73% **, 2/12/2049  

 

 

6,879,000 

 

5,091,087 

 

"A2", Series 2007-LD11, 5.804% **, 6/15/2049  

 

 

9,553,000 

 

7,136,030 

 

"A4", Series 2007-LD11, 5.819% **, 6/15/2049  

 

 

6,300,000 

 

3,897,703 

 

"ASB", Series 2007-LD11, 5.819% **, 6/15/2049  

 

 

13,981,000 

 

9,971,080 

 

"A4", Series 2007-LD12, 5.882% **, 2/15/2051  

 

 

1,513,000 

 

971,959 

 

"AM", Series 2007-LD12, 6.062% **, 2/15/2051  

 

 

6,021,000 

 

2,503,928 

JPMorgan Mortgage Trust, "2A1" Series 2006-A5, 5.819% **, 8/25/2036  

 

 

5,451,484 

 

3,658,320 

Lehman Mortgage Trust, "3A3", Series 2006-1, 5.5%, 2/25/2036  

 

 

5,640,983 

 

4,596,267 

MASTR Adjustable Rate Mortgages Trust, "B1", Series 2004-13, 4.365% **, 12/21/2034  

 

 

6,205,492 

 

2,153,084 

MASTR Alternative Loans Trust:

 
 

"5A1", Series 2005-2, 6.5%, 12/25/2034  

 

 

609,847 

 

360,763 

 

"6A1", Series 2004-5, 7.0%, 6/25/2034  

 

 

807,000 

 

686,203 

MASTR Asset Securitization Trust, "2A7", Series 2003-9, 5.5%, 10/25/2033  

 

 

4,564,293 

 

3,986,627 

Merrill Lynch Mortgage Investors Trust, "A2", Series 2005-A5, 4.566%, 6/25/2035  

 

 

3,578,000 

 

2,037,439 

Merrill Lynch/Countrywide Commercial Mortgage Trust, "ASB", Series 2007-7, 5.745%, 6/12/2050  

 

 

3,900,000 

 

2,837,849 

Morgan Stanley Capital I:

 
 

"AM", Series 2007-HQ12, 5.632% **, 4/12/2049  

 

 

4,250,000 

 

1,792,218 

 

"AAB", Series 2007-IQ14, 5.654%, 4/15/2049  

 

 

7,655,000 

 

5,556,144 

NYC Mortgage Loan Trust, "A3", Series 1996, 144A, 6.75%, 9/25/2019  

 

 

1,650,095 

 

1,155,066 

Residential Asset Securitization Trust, "A1", Series 2004-A1, 5.25%, 4/25/2034  

 

 

2,711,925 

 

1,852,054 

Sequoia Mortgage Trust, "2A1", Series 2007-1, 5.814% **, 2/20/2047  

 

 

5,680,830 

 

3,790,090 

Structured Adjustable Rate Mortgage Loan Trust:

 
 

"1A4", Series 2005-22, 5.25% **, 12/25/2035  

 

 

8,055,000 

 

3,242,287 

 

"6A3", Series 2005-21, 5.4% **, 11/25/2035  

 

 

5,644,000 

 

2,465,002 

 

"7A4", Series 2006-1, 5.62% **, 2/25/2036  

 

 

6,132,000 

 

2,531,696 

Structured Asset Securities Corp., "4A1", Series 2005-6, 5.0%, 5/25/2035  

 

 

37,295 

 

31,200 

Wachovia Bank Commercial Mortgage Trust:

 
 

"A3", Series 2007-C30, 5.246%, 12/15/2043  

 

 

5,390,000 

 

4,008,093 

 

"A2", Series 2007-C31, 5.421%, 4/15/2047  

 

 

10,737,000 

 

7,865,517 

Washington Mutual Mortgage Pass-Through Certificates Trust:

 
 

"1A3", Series 2005-AR14, 5.045% **, 12/25/2035  

 

 

6,100,000 

 

3,547,609 

 

“1A3”, Series 2005-AR16, 5.102% **, 12/25/2035

 

 

6,220,000

 

3,596,579

 

"4A1", Series 2007-HY3, 5.339% **, 3/25/2037  

 

 

9,967,047 

 

6,132,090 

 

"1A1", Series 2006-AR16, 5.594% **, 12/25/2036  

 

 

7,314,950 

 

4,210,255 

 

"1A1", Series 2007-HY2, 5.601% **, 12/25/2036  

 

 

3,201,538 

 

1,761,677 

 

"1A3", Series 2006-AR8, 5.85% **, 8/25/2046  

 

 

7,705,000 

 

3,930,468 

Wells Fargo Mortgage-Backed Securities Trust:

 
 

"4A2", Series 2005-AR16, 4.993% **, 10/25/2035  

 

 

8,150,000 

 

4,651,551 

 

"2A5", Series 2006-AR2, 5.086% **, 3/25/2036  

 

 

16,065,683 

 

11,531,698 

 

 

 

 

"3A2", Series 2006-AR8, 5.237% **, 4/25/2036  

 

 

10,170,000 

 

4,949,563 

 

"A1", Series 2006-3, 5.5%, 3/25/2036  

 

 

6,082,490 

 

4,870,754 

 

"A6", Series 2006-AR11, 5.51% **, 8/25/2036  

 

 

10,255,000 

 

4,907,105 

 

"2A5", Series 2006-AR1, 5.548% **, 3/25/2036  

 

 

8,400,000 

 

4,067,786 

 

"1A3", Series 2006-6, 5.75%, 5/25/2036  

 

 

4,953,870 

 

4,019,163 

**Total Commercial and Non-Agency Mortgage-Backed Securities** (Cost $434,717,252)

 

**289,605,892**

 

**Collateralized Mortgage Obligations 8.5%**

 
Fannie Mae Whole Loan, "1A1", Series 2004-W15, 6.0%, 8/25/2044  

 

 

1,959,629 

 

1,994,494 

Federal Home Loan Mortgage Corp.:

 
 

"LN", Series 3145, 4.5%, 10/15/2034  

 

 

6,077,620 

 

6,116,430 

 

"TA", Series 2750, 5.0%, 2/15/2032  

 

 

7,525,000 

 

7,624,698 

 

"EG", Series 2836, 5.0%, 12/15/2032  

 

 

4,295,000 

 

4,336,551 

 

"NE", Series 2802, 5.0%, 2/15/2033  

 

 

90,000 

 

90,982 

 

"OE", Series 2840, 5.0%, 2/15/2033  

 

 

5,050,000 

 

5,057,167 

 

"PD", Series 2893, 5.0%, 2/15/2033  

 

 

9,696,000 

 

9,767,233 

 

"TE", Series 2827, 5.0%, 4/15/2033  

 

 

65,000 

 

65,607 

 

"XD", Series 2941, 5.0%, 5/15/2033  

 

 

10,975,000 

 

11,021,887 

 

"PE", Series 2864, 5.0%, 6/15/2033  

 

 

40,000 

 

40,465 

 

"UE", Series 2911, 5.0%, 6/15/2033  

 

 

10,815,000 

 

10,868,586 

 

"BG", Series 2869, 5.0%, 7/15/2033  

 

 

1,230,000 

 

1,242,636 

 

"PD", Series 2939, 5.0%, 7/15/2033  

 

 

3,414,000 

 

3,423,673 

 

"KD", Series 2915, 5.0%, 9/15/2033  

 

 

5,936,000 

 

5,965,301 

 

"KE", Series 2934, 5.0%, 11/15/2033  

 

 

53,000 

 

53,152 

 

"ND", Series 3036, 5.0%, 5/15/2034  

 

 

8,222,000 

 

8,219,264 

 

"NB", Series 2864, 5.5%, 7/15/2033  

 

 

4,007,000 

 

4,045,645 

 

"QB", Series 3242, 5.5%, 1/15/2034  

 

 

4,570,000 

 

4,680,136 

 

"PE", Series 2165, 6.0%, 6/15/2029  

 

 

4,629,999 

 

4,785,045 

Federal National Mortgage Association:

 
 

"BG", Series 2005-12, 5.0%, 10/25/2033  

 

 

2,457,000 

 

2,461,978 

 

"EC", Series 2005-15, 5.0%, 10/25/2033  

 

 

80,000 

 

80,162 

 

"HE", Series 2005-22, 5.0%, 10/25/2033  

 

 

25,000 

 

25,028 

 

"PE", Series 2005-14, 5.0%, 12/25/2033  

 

 

90,000 

 

90,181 

 

"WD", Series 2005-86, 5.0%, 3/25/2034  

 

 

12,660,000 

 

12,654,440 

 

"J", Series 1998-36, 6.0%, 7/18/2028  

 

 

3,526,449 

 

3,628,702 

 

"PH", Series 1999-19, 6.0%, 5/25/2029  

 

 

4,554,602 

 

4,705,743 

 

"Z", Series 2001-14, 6.0%, 5/25/2031  

 

 

13,973 

 

14,288 

**Total Collateralized Mortgage Obligations** (Cost $109,662,812)

 

**113,059,474**

 

**Municipal Bonds and Notes 3.3%**

 
Alameda, CA, Corridor Transportation Authority Revenue, Series C, 6.6%, 10/1/2029 (b) 

 

4,675,000

 

4,207,406

Arizona, Salt River Project, Agricultural Improvement & Power District, Electric Systems Revenue, Series A, 5.0%, 1/1/2038 

 

3,870,000

 

3,794,419

Indianapolis, IN, Local Public Improvement Bond Bank, Series A, 5.0%, 2/1/2038 

 

3,020,000

 

2,943,292

Los Angeles, CA, Community Redevelopment Agency, Community Redevelopment Financing Authority Revenue, Series L, 6.02%, 9/1/2021 (b) 

 

6,480,000

 

5,745,557

Pomona, CA, Pension Obligation, Series AR, 5.732%, 7/1/2025 (b) 

 

2,245,000

 

1,875,451

Pueblo of Santa Ana, NM, Certificates of Participation, "A", 5.875%, 4/1/2024 

 

7,440,000

 

6,149,309

Rancho Cordova, CA, Certificates of Partnership, City Hall Acquisition, Series B, 5.65%, 2/1/2024 (b) 

 

4,340,000

 

3,648,247

Riverside, CA, Public Financing Authority, Tax Allocation Revenue, University Corridor, Series D, 5.89%, 8/1/2032 (b) 

 

925,000

 

684,084

Texas, Eagle Mountain & Saginaw Independent School District, School Building Improvements, 5.0%, 8/15/2038 

 

2,610,000

 

2,578,184

Texas, Pharr-San Juan-Alamo Independent School District, School Building Improvements, 5.0%, 2/1/2038 

 

2,445,000

 

2,408,178

West Virginia, State General Obligation, Jobs Inventory Trust Board:

 
 

 

 

 

Series A, Zero Coupon, 1/22/2012 

 

1,300,000 

 

1,079,130 

 

Series A, Zero Coupon, 6/12/2013 

 

1,500,000 

 

1,124,895 

 

Series C, Zero Coupon, 7/31/2013 

 

3,500,000 

 

2,600,430 

Wilkes Barre, PA, General Obligation, Series C, 5.48%, 11/15/2024 (b) 

 

6,315,000

 

5,180,573

**Total Municipal Bonds and Notes** (Cost $47,481,557)

 

**44,019,155**

 

**Government & Agency Obligations 10.5%**

 
**US Treasury Obligations**

 
US Treasury Bonds:

 
 

4.375%, 2/15/2038  

 

 

3,445,000 

 

3,904,694 

 

4.5%, 5/15/2038 (c)

 

 

16,284,000 

 

18,909,795 

 

5.5%, 8/15/2028 (c)

 

 

8,939,000 

 

10,877,645 

US Treasury Notes:

 
 

0.875%, 12/31/2010 (c)

 

 

13,940,000 

 

13,932,375 

 

1.5%, 12/31/2013  

 

 

4,416,000 

 

4,351,487 

 

3.75%, 11/15/2018 (c)

 

 

31,344,000 

 

33,753,727 

 

4.875%, 4/30/2011 (c)

 

 

18,661,000 

 

20,293,837 

 

4.875%, 5/31/2011 (d)

 

 

1,500,000 

 

1,631,250 

 

5.125%, 5/15/2016 (c)

 

 

28,330,000 

 

33,276,673 

**Total Government & Agency Obligations** (Cost $143,579,170)

 

**140,931,483**

 

**Preferred Securities 1.8%**

 
**Financials**

 
American General Institutional Capital, Series B, 144A, 8.125%, 3/15/2046  

 

 

7,382,000 

 

3,068,468 

Bank of America Corp., Series M, 8.125%, 5/15/2018 (c) (e) 

 

 

11,555,000 

 

5,995,774 

Citigroup, Inc., Series E, 8.4%, 4/30/2018 (e) 

 

 

2,007,000 

 

733,017 

Citigroup Capital XXI, 8.3%, 12/21/2057  

 

 

3,420,000 

 

1,773,373 

Dresdner Funding Trust I, 144A, 8.151%, 6/30/2031  

 

 

2,455,000 

 

558,775 

Oil Insurance Ltd., 144A, 7.558%, 6/30/2011 (e) 

 

 

12,040,000 

 

4,839,117 

PNC Preferred Funding Trust I, 144A, 8.7%, 3/15/2013 (e) 

 

 

6,400,000 

 

4,286,912 

Royal Bank of Scotland Group PLC, Series U, 7.64%, 9/29/2017 (e) 

 

 

2,500,000 

 

387,425 

ZFS Finance USA Trust V, 144A, 6.5%, 5/9/2037  

 

 

4,895,000 

 

2,202,750 

**Total Preferred Securities** (Cost $46,375,671)

 

**23,845,611**

 

**Shares**

 

**Value ($)**

 

**Preferred Stock 0.0%**

 
**Financials**

 
XL Capital Ltd., Series C, 144A, 6.102% (Cost $1,525,606)

 

 

62,200

 

**635,473**

 

**Securities Lending Collateral 7.8%**

 
Daily Assets Fund Institutional, 1.25% (f) (g)(Cost $104,139,375)

 

 

104,139,375

 

**104,139,375**

 

**Cash Equivalents 2.5%**

 
Cash Management QP Trust, 1.12% (f)(Cost $33,014,293)

 

 

33,014,293

 

**33,014,293**

 

 

 

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $1,687,561,916) †

110.5

 

**1,475,977,372**

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

(10.5)

 

**(139,838,952)**

**Net Assets**

100.0

 

**1,336,138,420**

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

***

*Non-income producing security.  Issuer has defaulted on the payment of principal or interest or has filed for bankruptcy.  The following table represents bonds that are in default:*

**Security**

 

**Coupon**

 

**Maturity****Date**

 

**Principal Amount ($)**

**Acquisition****Cost ($)**

 

**Value ($)**

 
Securitized Asset-Backed NIM Trust, "NIM", Series 2005-FR4, 144A

 

6.0%

 

1/25/2036

 

487,805

 

USD

 

483,841

 

**49**

 
****

*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 January 31, 2009.*

*†*

*The cost for federal income tax purposes was $1,688,041,831.  At January 31, 2009, net unrealized depreciation for all securities based on tax cost was $212,064,459.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $22,554,433 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $234,618,892.*

*(a)*

*When-issued or delayed delivery securities included.*

*(b)*

*Bond is insured by one of these companies:*

**Insurance Coverage**

**As a % of Total****Investment Portfolio**

 
Ambac Financial Group, Inc.

0.6

 
MBIA Corp.

0.8

 
*(c)*

*All or a portion of these securities were on loan amounting to $88,973,334.  In addition, included in other assets and liabilities, net is a pending sale, amounting to $11,053,950, that is also on loan.  The value of all securities loaned at January 31, 2009 amounted to $100,027,284 which is 7.5% of net assets.*

*(d)*

*At January 31, 2009, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.*

*(e)*

*Date shown is call date; not a maturity date for the perpetual preferred securities.*

*(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.*

*REIT: Real Estate Investment Trust*

*At January 31, 2009, open futures contracts purchased were as follows:*

**Futures**

 

**Expiration****Date**

 

**Contracts**

 

**Aggregated****Face****Value ($)**

 

**Value ($)**

 

**Unrealized****Appreciation ($)**

 

5-Year US Treasury Note 

 

3/31/2009 

 

755 

 

86,809,381 

 

89,219,766 

 

**2,410,385**

 
*At January 31, 2009, open futures contracts sold were as follows:*

**Futures**

 

 

**Expiration****Date**

 

**Contracts**

 

**Aggregated****Face****Value ($)**

 

**Value ($)**

 

**Unrealized****Depreciation ($)**

 

10-Year US Treasury Note 

 

3/20/2009 

 

560 

 

66,642,835

 

68,696,250

 

**(2,053,415)**

 
*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 presentation purposes in this investment portfolio.*

 

 

***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 January 31, 2009 in valuing the Fund's investments. Please see below for information on the Fund’s policy regarding valuation inputs, and their aggregate levels used in the table below:*

 

**Valuation Inputs**

**Investments in  Securities**

**Other Financial Instruments***††*

Level 1 

$               104,139,375   

$                  356,970   

Level 2 

1,364,670,484   

-   

Level 3 

7,167,513  

-   

**Total**

**$            1,475,977,372**

**$                  356,970**

 

*†† Other financial instruments are derivative instruments not reflected in the Investment Portfolio, such as futures 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 the value at January 31, 2009:*

 

 

**Investments in  Securities**

**Balance as of November 1, 2008**

$                  9,802,248 

Total realized gain (loss)

13,985

Change in unrealized appreciation (depreciation)

(2,280,096)  

Amortization Premium/Discount

-

Net purchases (sales)

(368,624)  

Net transfers in (out) of Level 3 

-   

**Balance as of January 31, 2009**

**$                  7,167,513**

 

 

**ITEM 2.**

**CONTROLS AND PROCEDURES**

 

 

 

(a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

 

 

 

(b)          There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

 

**ITEM 3.**

**EXHIBITS**

 

 

 

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

 

**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant: 

DWS Core Fixed Income Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

March 23, 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 Core Fixed Income Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

March 23, 2009

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        March 23, 2009

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